Business model

This business model explains how Sibanye operates and delivers on its strategy in terms of the various capitals.

OVERALL STRATEGIC OBJECTIVE

Superior value creation for all stakeholders

SIBANYE’S BUSINESS ENVIRONMENT

For a discussion on the external business environment within which Sibanye operates, see Material issues.

SIBANYE’S MATERIAL ISSUES

For a discussion on the issues with potential to affect Sibanye’s ability to deliver on its business objectives, see Material issues.

Our business activities

  • [icon] Exploration and new business
  • [icon] Underground mining
  • [icon] Treatment and processing
  • [icon] Surface tailings retreatment
  • [icon] Beneficiation
  • [icon] Sale of commodities produced

Once mining operations have ceased, rehabilitation and closure are undertaken to restore and mitigate the effects of mining on the land.

What we do
inputs

In the course of conducting our business activities, we:

  •  
    Declared Mineral Resources
    – gold
    98.79Moz
    – uranium
    230Mlb
  •  
    Declared Mineral Reserves
    – gold
    31.0Moz
    – uranium
    113.8Mlb
  •  
    Treated
    8.6Mt of underground ore
  •  
    Recycled/retreated
    11.3Mt of surface material
  •  
    Employed
    46,269 people
  •  
    Incurred operating costs of
    R16,380 million
  •  
    Expended sustaining and development capital of
    R2,974 million
  •   
    Procured goods and services worth
    R5.9 billion

What we did
impacts

We consumed:

  •  
    Water withdrawn
    114,735Ml
  •  
    Electricity consumed
    4,231,362MWh
  •  
    Cyanide purchased
    11,924t

We achieved:

  •  
    Safety performance (LTIFR per million hours worked)
    6.74
  •   
    Training and development
     
    – employees
    20,018
    – community members
    3,627
  •  
    Scope 1 and 2 greenhouse gas (GHG) emissions (including fugitive mine methane)
    5,015,626tCO2e

We regret:

  •  
    Fatalities
    7

What we produced
Outputs

  •  
    Gold
    47,775kg (1.54Moz)
  •  
    Uranium produced
    121,835lb
  •  
    Tailings deposited
    18.5Mt
  •  
    Revenue generated
    R22,717 million
  •  
    Profit
    R538 million

What we created
Outcomes

  •  
    Capital investment (growth) in projects
    R371 million

VALUE DISTRIBUTED:

  •  
    Employees: Salaries and wages
    R7,345 million
  • Government: Current tax and royalties
    R1,097 million
  • Communities: Socio-economic development
    R691 million
  •  
    Investors: Dividends paid
    R658 million

OUR SIX-PRONGED OPERATING MODEL AIMS TO:

REDUCE COSTS AND PAY LIMITS
  • Total cash cost R347,613/kg
  • All-in sustaining costs R422,472/kg
  • Pay limits 1,200cm.g/t
INCREASE FLEXIBILITY
  • Gold Mineral Reserves
    31.0Moz ▲ 9%
  • Uranium Mineral Reserves
    113.8Mlb ▲ 11%
INCREASE MARGINS

28%

OPTIMISE ALL CAPITAL, INCLUDING BALANCE SHEET
  • Return on capital employed 15%
  • Net debt:EBITDA ratio 0.21:1
  • Return on equity 5%
OPTIMISE CASH FLOWS

R829 million

= [icon]
PAY ROBUST DIVIDENDS
  • Dividends declared R916 million
  • Dividends per share 100 cents

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