SALIENT POINTS 2018

  • 41%* Improvement in safety in the second half of the year, relative to first half regression

    • Committed approach to safety – zero harm goal – that is holistic and values-driven
    • Established the Global Safe Production Advisory Panel of leading academics
    • Significant improvement in H2 continues in 2019 – 7 million fatality-free shifts achieved by Group

    * Fatal injury frequency rate

  • 84% Combined contribution by our PGM operations to adjusted EBITDA

    • Benefits of strategic commodity and geographic diversification clearly evident
    • 50% contribution from the US PGM operations – up from 24% in 2017 – given their inclusion for the full year
    • Substantial increase in SA PGM operations’ contribution to 34% owing to improved rand PGM basket price and solid performance
  • 10% Growth in revenue
     

    • Solid contribution from PGM operations offsets under-performance at SA gold operations
  • 67% Decline in level 3 and higher environmental incidents

    • Declined to six in 2018 from 18 in 2017
    • A result of improved environmental management

Corporate profile

Sibanye-Stillwater is an independent, global, precious metals mining company producing a unique mix of metals that includes platinum group metals (PGMs) and gold.

Sibanye-Stillwater has its primary listing on the JSE, South Africa, where it is included in the FTSE/JSE Responsible Investment Index. The company is also listed on the NYSE, with its shares quoted as American Depositary Receipts (ADRs).

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    • 6Excludes ounces from recycling operation
Employees in Montana

US PGM operations

  • No. of operating units1:

    2

  • Production of mined PGMs:

    0.592E Moz

  • Contribution to group PGM production:

    34%

  • Contribution to group revenue:

    31%

  • Contribution to adjusted EBITDA2:

    50%

  • Mineral Reserves:

    25.62E Moz

  • Fatalities:

    0

  • LTIFR (per million hours worked)3:

    9.97

  1. 1 Includes Stillwater and East Boulder mines
  2. 2 The Group reports adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) based on the formula included in the facility agreements for compliance with the debt covenant formula. For a reconciliation of profit/loss before royalties and tax to adjusted EBITDA, refer to the relevant notes in the condensed consolidated interim financial statements
  3. 3 Lost-time injury frequency rate
Employees at Mimosa

SA PGM operations

  • No. of operating units1:

    4

  • Production of mined PGMs:

    1.24E Moz

  • Contribution to group PGM production:

    66%

  • Contribution to group revenue:

    30%

  • Contribution to adjusted EBITDA2:

    34%

  • Mineral Reserves:

    20.44E Moz

  • Fatalities:

    3

  • LTIFR (per million hours worked)3:

    4.68

  1. 1 Includes Kroondal (50% attributable pool and share agreement with Anglo American Platinum), Rustenburg operation, Platinum Mile (91.7% stake in this operation which treats chrome tailings to recover PGMs) and Mimosa (50:50 joint venture with Impala Platinum Holdings which manages this operation)
  2. 2 The Group reports adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) based on the formula included in the facility agreements for compliance with the debt covenant formula. For a reconciliation of profit/loss before royalties and tax to adjusted EBITDA, refer to the relevant notes in the condensed consolidated interim financial statements
  3. 3 Lost-time injury frequency rate
Employees at Mimosa

SA gold operations

  • No. of operating units1:

    4

  • Production of mined PGMs:

    1.2Moz

  • Contribution to group revenue:

    39%

  • Contribution to adjusted EBITDA2:

    16%

  • Mineral Reserves:

    12.1Moz

  • Fatalities:

    21 

  • LTIFR (per million hours worked)3:

    6.52

  1. 1Includes Driefontein, Kloof, Beatrix, Cooke surface sources and DRDGOLD
  2. 2The Group reports adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) based on the formula included in the facility agreements for compliance with the debt covenant formula. For a reconciliation of profit/loss before royalties and tax to adjusted EBITDA, refer to the relevant notes in the condensed consolidated interim financial statements
  3. 3 Lost-time injury frequency rate
Sello Moloko
Sello Moloko Chairman

Chairman's perspective

It is again my privilege to report to all our stakeholders on the progress made by the Group during 2018. Despite the significant vicissitudes and challenges that we had to contend with during the past year, I am pleased to report that we have emerged from this difficult period in a robust state with the appropriateness of our carefully considered strategy to diversify, geographically and by commodity, already proven.

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SIBANYE-STILLWATER’S GROWTH TRAJECTORY
  • Gold operations turned around

  • Cooke and Wits Gold acquisitions provided access to surface tailings assets and the Burnstone project

  • Rustenburg and Aquarius acquisitions establish Sibanye-Stillwater as a leading PGM producer

  • Acquisition of Stillwater – creates a globally competitive precious metals major

  • Future mine-to-market PGM business in South Africa

Neal Froneman
Neal Froneman Chief Executive Officer

Chief executive officer's review

Sibanye-Stillwater has undergone many fundamental changes since it was established in February 2013, transforming from a gold only producer with three mines in South Africa into a globally diversified precious metals producer with operations and projects in five jurisdictions. Following the completion of the proposed acquisition of Lonmin, the Group will rank as one of the largest primary producers of platinum and palladium, and associated PGMs, in the world.

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“Sibanye- Stillwater’s transition from a South African gold producer to a diversified global precious metals producer was well-timed”

Precious metals price performance (%)
Precious metals price performance (%)
Charl Keyter
Charl Keyter Chief Financial Officer

Chief financial officer's review

  • Group loss for the year decreased by 43% to R2,521 million
  • Substantial increase in US and SA PGM adjusted EBITDA
  • US$350 million revolving credit facility (RCF) refinanced and upsized to US$600 million on improved terms in April 2018
  • US$500 million streaming transaction completed in July 2018
  • US$395 million bond buy back resulting in US$25 million annual interest saving
  • DRDGOLD transaction completed
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“The Board believes that the proposed acquisition of Lonmin is compelling and value-accretive for Sibanye- Stillwater shareholders and is a logical step in executing its PGM strategy in southern Africa”

HOW WE PERFORMED

  • Our progress in delivering on our strategic objectives and our commitment to create stakeholder value and improve lives through the responsible mining and beneficiation of our mineral resources in 2018

  • Delivering value from operations, projects and technology

    • 1,768,000oz 4E-2E PGMs produced (2017: 1,571,000oz)
    • Gold produced: 1,177,000oz (2017: 1,403,000oz)
    • Six PGM and four gold mining operations in two geographic areas together with associated infrastructure, plant and equipment
    • Optimising processes to ensure cost-efficient operations
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  • Mineral Resources and Mineral Reserves

    • 204.4Moz 2E and 4E PGM Mineral Resources
    • 104.2Moz Gold Mineral Resources
    • 18,795.8Mlb Copper Mineral Resources
    • 46.1Moz 2E and 4E PGM Mineral Reserves
    • 16.6Moz Gold Mineral Reserves
    • 78.7Mlb Uranium Mineral Resources
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  • Superior value for the workforce

    • Skilled, motivated workforce of 52,631 permanent employees and 10,887 contractors
    • 48% HDSAs in management
    • SA operations invested R559 million and US operations, US$2.6 million, in HR training and development
    • Introduction of world-class leadership programmes
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  • ENSURING SAFE PRODUCTION

    • FIFR 0.16 (2017: 0.07)
    • LTIFR 5.89 (2017: 5.78)
    • SIFR 3.70 (2017: 3.57)
    • TRIFR 2.69 (2017: 2.60)
    • Intensified focus on safe production resulted in a marked improvement in safety performance from the first to the second half of 2018
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  • Occupational health and well-being

    • 165 silicosis cases reported (2017: 261)
    • 539 tuberculosis cases reported (2017: 623)
    • 243 noise-induced hearing loss cases reported (2017: 193)
    • 4% HIV prevalence (2017: 6%)
    • Settlement agreement reached in the silicosis and TB class action on 3 May 2018.
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  • Social upliftment and community development

    • SA operations invested R1,374 million in socio-economic development, while US operations spent $387,830 on philanthropic activities
    • SA operations spent R10,879 with local HDSA businesses
    • Bokamoso Ba Rona, a large-scale agriculture and bio-energy project launched in the West Rand district (SA operations)
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  • Minimising our environmental impact

    • Group Scope 1 and 2 carbon emissions declined by 14% from 2017 to 2018
    • A- CDP score for the second consecutive year.
    • Zero Level 4 and above environmental incidents
    • 3% decrease in the consumption of purchased water
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