Strategic Update: Platinum Division Update • Cash offer for Aquarius Platinum ... Average real...
40
PLATINUM DIVISION Update Jean Nel CEO: Platinum Division Justin Froneman SVP Finance: Platinum Division 28 July 2016
Transcript of Strategic Update: Platinum Division Update • Cash offer for Aquarius Platinum ... Average real...
PLATINUM
DIVISIONUpdate
Jean Nel
CEO: Platinum Division
Justin Froneman
SVP Finance: Platinum Division
28 July 2016
Disclaimer
The information in this presentation may include forward-looking statements, which are based on current expectations and
projections about future events. These statements may include, without limitation, any statements preceded by, followed by or
including words such as “target,” “expect,” “may,” “anticipate,” “estimate,” “will,” and other words and terms of similar
meaning or the negative thereof. These forward-looking statements, as well as those included in any other material discussed
at the meeting, are subject to risks, uncertainties and assumptions, including, among other things, the development of
Sibanye’s business, general economic conditions and actions of regulators. In light of these risks, uncertainties and
assumptions, the events in the forward-looking statements may not occur. No representation or warranty is made that any
forward-looking statement will come to pass and no reliance should be placed on any forward-looking statement. No one
undertakes to publicly update or revise any such forward-looking statement.
In accordance with the requirements imposed by the JSE, Sibanye Gold reports its reserves using the terms and definitions of
the SAMREC Code (2007 edition). There are differences between the SAMREC Code and the Security and Exchange
Commission’s Industry Guide 7. Mineral or ore reserves, as defined under the SAMREC Code, are divided into categories of
proved and probable reserves and are expressed in terms of tonnes to be processed at mill feed head grades, allowing for
estimated mining dilution, recovery and other factors.
2
A brief recap of how we got here
• Sibanye indicated interest in the SA platinum sector in Q1 2014
• Entry into the platinum sector was supported by a strong rationale and was a logical next step to Sibanye’s value-creation strategy
– operationally similar to the gold mining industry
– low PGM prices and operational disruptions were creating financial distress in a fragmented platinum sector
– opportunity to unlock stakeholder value through consolidation, by realising cost and operational synergies
• Proposed acquisition of Anglo American Platinum’s Rustenburg assets announced in September 2015
– transaction completion pending regulatory approval
• Cash offer for Aquarius Platinum announced in October 2015
– transaction approved and concluded in April 2016
Becoming a notable PGM industry participant 3
Becoming a top five PGM producer
4
Source: Companies’ disclosures, Broker reports
Notes:1. Platinum, palladium, rhodium and gold (together referred to as 3E+Au or 4E). Sibanye related data includes Rustenburg Operations and Aquarius
2. Reserves and resources are latest reported by the companies and are on an attributable basis; resources include reserves
3. As publicly disclosed in December 2015
4. As publicly disclosed in June 2015 and depleted based on actual production to reach December 2015 figures
0.3
0.4
1.1
1.2
2.2
3.3
3.6
RBPlats
Northam
Sibanye
Lonmin
Implats
Norilsk Nickel
AMPLATS- ex
Rustenburg Mines
10.8
19.2
34.4
36.6
46.3
125.5
155.8
RBPlats
Northam
Sibanye
Lonmin
Implats
Norilsk Nickel
AMPLATS-ex
Rustenburg Mines
47.1
134.9
182.9
194.4
367.0
465.1
858.5
RBPlats
Sibanye
Lonmin
Northam
Implats
Norilsk Nickel
AMPLATS- ex
Rustenburg Mines³
Ma
jor
glo
ba
l P
GM
pro
du
ce
rs
4E Reserves1,2 (Moz) 4E Resources1,2 (Moz) 2015A 4E Production1 (Moz)
(of which 0.7Moz is platinum)(Rustenburg3
+ Aquarius4)
(Rustenburg
+ Aquarius)
(Rustenburg
+ Aquarius)
Well positioned on two of the world’s primary PGM deposits 5
12
2
2
3
4
Sable Project
Western
Bushveld
Joint Venture
Pandora Joint
Venture
7
7
6
6
5
10
8109
Location of Sibanye’s PGM operations
1. Northam
2. Anglo America Platinum
3. Sedibelo Platinum
4. Platinum Group Metals
5. Wesizwe Platinum
6. Royal Bafokeng Platinum
7. Impala Platinum
8. Lonmin
9. Eastern Platinum
10. Glencore Xstrata
Sibanye Platinum (Anglo Platinum's Rustenburg assets)
Sibanye Platinum (formerly Aquarius)
The Sibanye Platinum Division management team
An experienced and competent management team 6
SHEQ:Martin Neveling
Divisional Chief
Executive Officer:
Jean Nel
• Conventional mining
• Mechanised mining
• Financial reporting
• Management accounting
• Platinum marketing
• Employee relations
• Human resources management systems
• Performance management
• Training and development
• Talent management
• Mining technical (MRM, RE, EE)
• Processing and concentrator operations
• Engineering
• Natural environment
SVP: Mining (SA)Shadwick Bessit
SVP Technical Services: Peter Turner
SVP: FinanceJustin Froneman
SVP: Human Capital Bheki Khumalo
Strategically located
• Sibanye’s PGM operations are located on the Western Limb of the Bushveld Complex and Great Dyke in Zimbabwe, two of the world’s largest-known PGM resources
• Good quality infrastructure and large, high-grade resources
• Kroondal and Rustenburg Operations are contiguous, with scope for operational synergies
• As the fifth largest global PGM producer, Sibanye expects that, over the longer term, it would be able to positively influence PGM industry fundamentals:
– play a leadership role in developing the market for PGMs
– influence supply by showing production discipline – not subsidising loss-making production
– favourably positioned for further industry consolidation
Well positioned to positively influence the market 7
Platinum perspectivechallenging in the near term,
solid in the long term
PGM basket prices depressed and volatile
Industry margins under pressure – unable to fund growth 9
0.0
5 000.0
10 000.0
15 000.0
20 000.0
25 000.0
30 000.0
35 000.0
0
500
1 000
1 500
2 000
2 500
3 000
Ju
l-03
De
c-0
3
Ma
y-0
4
Oc
t-0
4
Ma
r-05
Au
g-0
5
Ja
n-0
6
Ju
n-0
6
No
v-0
6
Ap
r-0
7
Se
p-0
7
Fe
b-0
8
Ju
l-08
De
c-0
8
Ma
y-0
9
Oc
t-0
9
Ma
r-10
Au
g-1
0
Ja
n-1
1
Ju
n-1
1
No
v-1
1
Ap
r-1
2
Se
p-1
2
Fe
b-1
3
Ju
l-13
De
c-1
3
Ma
y-1
4
Oc
t-1
4
Ma
r-15
Au
g-1
5
Ja
n-1
6
Ju
n-1
6
Ra
nd
/PG
M o
z
US$/o
zAverage real monthly basket price: July 2003 - Jun 2016
US$/oz (4E) R/oz (4E) (rhs)
Source: INet
PGM market fundamentals remain robust
Despite prevailing prices, PGM market fundamentals
remain robust
• Industry-wide capex and production cuts already announced
• SA supply unlikely to return to pre-crisis levels
• Limited primary supply growth anticipated globally
• Historically significant secondary supply growth being eroded by prevailing US$ prices
• Auto sales volumes continue to rise even in diesel markets
PGM pricing headwinds may persist over the near term owing to:
• Limited trading liquidity and excess above ground
PGM stocks
• Effect of ETF volatility and impact on prices which are difficult to quantify
Deficit drawdowns and working capital cycle underpin a return to sustainable basket prices over the
medium term
Despite near-term headwinds, long-term fundamentals remain robust 10
Source: Johnson Matthey, WPIC, broker consensus estimates, company forecasts
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2 000
-1 500
-1 000
-500
0
500
1 000
1 500
1992A 1997A 2002A 2007A 2012A 2017E
Platinum: Net market balance (koz) vs price
Surplus / (Deficit) Ex-ETF market balance
Pt Price (US $ / oz) (rhs)Pt price (US$/oz) (rhs)
Surplus/(deficit)
0
200
400
600
800
1 000
1 200
-2 500
-2 000
-1 500
-1 000
-500
0
500
1 000
1 500
2 000
2 500
1992A 1997A 2002A 2007A 2012A 2017E
Palladium: Net market balance (koz) vs price
Surplus / Deficit (koz) Ex-ETF market balance
Pall Price (US $ / oz) (rhs)Pd price (US$/oz) (rhs)
Surplus/(deficit) (koz)
Appropriately positioned on the cost curve
• Mechanised shafts are well-positioned on the industry cost curve while conventional shafts remain under pressure to deliver
• A substantial part of the SA PGM industry is free cash negative after capex at prevailing prices
– conventional shafts remain loss making at spot prices and remedial action may be required to ensure sustainability and future configuration viability
• Delivery and good execution of planned synergies are key to Sibanye’s Platinum Division moving into the lower half of the industry cost curve by 2018/9
Moving down the cost curve over time 11
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
18 000
20 000
R/P
GM
oz
PGM (4E) production (koz)
Opex + capex unit cost analysis
(R/PGM oz)
Spot PGM basket price (at 100%)
Sibanye operations
Source: HSBC research, company data
* December 2015 quarter
Aquarius in more detail
Location of Aquarius’ assets
13
Mimosa
Reserves* 1.9Moz (4E)
Resources* 7.41Moz (4E)
Production 2015* 118,000oz (4E) attributable
2015 capex R172 million
2015 cash costs R9,183/oz (4E)
Employees1 1,402
Production 2016F* 118,000oz (4E)
* Attributable
Kroondal
Reserves* 3.7Moz (4E) UG2
Resources* 3.59Moz (4E) UG2
Production 2015* 221,000oz (4E) attributable
2015 capex R275 million
2015 cash cost R9,194/oz (4E)
Employees1 8,747
Production 2016F* 230,000oz (4E)
* Attributable, Kroondal includes PSA extension1Includes contractors, Exchange rate R11.45 applied
Reserves as publically disclosed in June 2015 and depleted
based on actual production to reach December 2015 figures
Resources as at 30 June 2015
Other data for 12 months ended 30 June 2015
Platinum Mile
Mimosa
Kroondal
SOUTH AFRICA
ZIMBABWE
JOHANNESBURG
Key
Bushveld Complex
Great Dyke
Platinum operations
Aquarius acquisition: deal rationale
Positive operational developments have started following the integration of Aquarius Platinum, which is
expected to continue following the conclusion of the Rustenburg acquisition in Q4 2016
• Operational stability – Kroondal and Mimosa continue to deliver an exceptional safety
and operational performance
• Sharing of corporate costs, with Aquarius’ corporate and listing costs having been eliminated
– marginal synergies between Sibanye and Aquarius on a standalone basis – combined with
Rustenburg creates significant synergies
– sharing of resources, knowledge, best practice and overhead costs
• An integrated Sibanye Platinum Division will have the flexibility and financial capacity to deliver growth
projects which Aquarius did not have
• Being part of a more diversified company increases operational stability, facilitates increased capacity to
plan strategically, increases purchasing power and the ability to leverage off of combined internal
resources
• Increased mining flexibility, potentially mining through the PSA boundaries
– northern boundary of Kwezi and K6 shafts
– Bambanani/School of Mines
– Kopaneng/Bathopele
• Extension of the LoM once Rustenburg Operations and Kroondal are combined
into one operating entity
• Potential for increased blending of ore to optimise plant efficiencies, utilisation rates
and recoveries at a reduced cost
• Combined tailings operations with increased throughput volumes and the potential
to also re-treat Kroondal tailings
Focus on sharing resources 14
Safety performance
Safety a priority – trends continue to improve 15
12-month
LTIFR
3-month
LTIFR
Actual Target Actual Target
Kroondal 2.57 3.00 2.55 3.00
Mimosa 1.36 0.00 0.92 0.00
Platinum Mile 0.00 0.00 0.00 0.00
0.04 0.04 0.04 0.03
0.50
0.00 0.00 0.00 0.00 0.00 0.0
0.1
0.2
0.3
0.4
0.5
0.6
Sibanye Pt − FIFR
1.82 2.00
1.61 1.64
1.99
1.18
2.29
1.14
1.58
0.40
0.0
0.5
1.0
1.5
2.0
2.5
Sibanye Pt − SIFR
4.71
3.64
2.39 2.06
3.48
2.37 2.67
2.28 1.97 2.00
0.0
1.0
2.0
3.0
4.0
5.0
Sibanye Pt − LDIFR
Kroondal and Mimosa production trend
Combined all-time record 4E production across Aquarius
Kroondal and Mimosa delivering record operating results 16
0
20 000
40 000
60 000
80 000
100 000
120 000
140 000
160 000
180 000
200 000
Quarterly 4E ounce production
Kroondal Mimosa
Kroondal: record production offsets unit cost inflation
• Despite the operational impact of unprotected strike action and S54 work stoppages, Kroondal continues to deliver record levels of metal production
– 6% CAGR in 4E PGM production since 2011
– despite mining cost inflation, real unit cost increases have been negated
• Throughput gains, as a means to control unit cost inflation, are largely exhausted and Kroondal is marginal at current prices (post purchase of concentrate (PoC) agreement)
– Kroondal’s positive operational evolution will be driven by enhanced mining flexibility, incorporating expected synergies and overhead savings once combined with Rustenburg
Kroondal’s operational evolution is set to continue improving 17
6 000
7 000
8 000
9 000
10 000
11 000
12 000
13 000
14 000
60 000
70 000
80 000
90 000
100 000
110 000
120 000
130 000
R/4
E o
z
PG
M (
4E)
oz
PGM (4E) Ounces PGM basket price (at 100%) Opex + capital
Note: Revenue pre-PoC
Kroondal: pressure remains on production and costs
• Significant business interruptions being experienced and expected to continue:
– regulatory stoppages
• S54 notices have resulted in estimated revenue loss of R135m for 12 months to June 2016
– community-led protests
• 39 community led protests over the last 52-weeks, with at least 30 being non-mine related
– industrial action
• recent unprotected AMCU strike resulted in estimated revenue loss of R56m
• Basket cost inflation above Consumer Price Index (CPI)
– utility tariff escalations substantially in excess of CPI
– wage inflation higher than CPI
• The actions of key stakeholders, who currently benefit from the North West PGM mines, are threatening the sustainability of these mines. Sibanye will not support this
• Kroondal’s position is by no means unique
External issues are a significant impediment to sustainability 18
135
56
8
Revenue losses due to external factors (Rm)
Section 54s
Unprotected labour action
Community disruptions
Mimosa: notable performance despite headwinds
• Mimosa continues to produce metal at record levels, well above annual nameplate capacity
– and consistently so in a very complex environment – a remarkable achievement
• Consistent quarterly production increases resulted in a c.3% reduction in annual real cash costs and a c.14% reduction in real US$ costs over last 3 years
• Progress is being made to expand production by 25% in a capital efficient manner, with a focus on reducing the required spend to well below existing estimates and reduce unit costs so as to deliver a robust IRR
A solid operation with growth potential 19
0
200
400
600
800
1 000
1 200
1 400
0
10 000
20 000
30 000
40 000
50 000
60 000
70 000
$/4
E o
zPG
M (
4E)
oz
PGM (4E) Ounces PGM basket price (at 100%) Opex + capital*
* Excludes base metal revenue
Zimbabwe: challenging but well managed
• Zimbabwe remains a difficult environment in which to operate
• Strategic decisions and plans implemented to address the following Zimbabwe-specific issues:
– 15% revenue levy on un-beneficiated platinum suspended but long-term beneficiation/smelter solution still required
• Zimplats smelter capacity expansion study – due for completion in August 2016
• standalone smelter at Mimosa has been scoped – feasibility study due by August 2016
– US$ monetary supply tightness has necessitated a plan to manage Mimosa’s sale receipts
• 50% of revenue must be retained in Zimbabwe but can be used for disbursement and payment purposes
• no limitation on dividend declarations and payments to shareholders
– Indigenisation legislation clarified by statements on 11 April 2016
• an entity deemed to be indigenised if 75% of the value generated by that Zimbabwean company is retained in Zimbabwe
• Mimosa meets this requirement
• still to be promulgated into law
Strategic decision making and proactive management necessary in Zimbabwe 20
Rustenburg in more detail
Location of Rustenburg assets
22
Rustenburg Operations
Reserves1 25.5Moz (4E)
Resources2 88.3Moz (4E)
Production 2015* 938.6 (6E)
2015 capex3 R400 million
2015 cash costs* R10,210/oz (6E)
Employees* 16,000
Production 2016F 800,000oz (4E)
1 Publicly disclosed as at 31 December 2015
2 As at 1 October 2015 extracted from CPR for SGL on
Rustenburg operations December 2015
3 AAP 2015 Integrated report
* AAP 2015 Annual Results
Rustenburg operations
Large, high grade assets with expansion potential 23
Excluded from transaction
1 Smelting and refining
operations• Will be retained by AAP
• AAP will continue to process
concentrate from the
Rustenburg Operations
2 Kroondal and Marikana
pooling and sharing
agreements (with Sibanye)
3 Western Limb distribution
centreNewly constructed supply
chain and related logistics
centre
+ Approximately four months of
working capital of the
Rustenburg Operations
included in the transaction
Merensky and UG2Merensky
(UG2 in future)UG2
Siphumelele(including Khomanani –
on C&M) Bathopele
Chrome Recovery Plant
(“CRP”)
Western Limb Tailings
Retreatment (WLTR)
Klipfontein tailings
dam
Waterval retrofit concentrator
Waterval UG2 concentrator
Waterval smelter and refineries(excluded from transaction)
Platinum Mile Tailings
WatervalEast & West
tailings dams
Thembelani (including Khuseleka)
Rustenburg
Platinum Mines
Transaction perimeter of
Rustenburg Operations
Rustenburg section operating mines
Rustenburg operations acquisition
• Sibanye will acquire the Rustenburg Operations from Anglo American Platinum for:
1. An upfront consideration of R1.5 billion in cash or shares (at Sibanye’s election on closing)
2. A deferred payment of 35% of distributable free cash flows generated from the Rustenburg Operations annually for a period of 6 years, subject to a minimum nominal payment of R3.0 billion, including inter alia:
• An option to extend the earn out period by a further 2 years if required, following which the balance must be settled in cash or shares
• Anglo American Platinum agrees to provide up to R267 million each year until 31 December 2018, should the Rustenburg Operations generate negative free cash flows
• A PoC agreement in place for all concentrate produced at the Rustenburg Operations
until 31 December 2018
• Thereafter a transition to a toll treatment arrangement to smelt and refine the produced concentrate from the Rustenburg Operations – giving revenue upside
A value-accretive, low-risk transaction 24
Favourable transaction structure
• The phased transaction structure limits the upfront cost and reduces the transaction riskfor Sibanye
• Deal structure provides down-side protection to Sibanye in a 'lower for longer' platinum price scenario, while earn out provides shared upside exposure to higher PGM prices in the medium term
• AAP to provide up to R267 million per year up to the end of 2018 if the Rustenburg Operations generate negative free cash flows
• Toll treatment agreement post 2018 provides leverage to increasing PGM prices and enables Sibanye to transition into a vertically integrated mine to market business, without upfront processing capital and technical risks
Transaction structured to deliver value sustainability 25
Rustenburg empowerment transaction
• Consistent with Sibanye’s vision to create value for all stakeholders, its black economic empowerment is of a broad-based nature
• Sibanye will facilitate the creation of a fully empowered, low-risk, vendor-financed SPV (BEE SPV) that will acquire 26% of Sibanye’s Rustenburg Operations
• Key stakeholders are existing employees and surrounding communities at the Rustenburg operations. They will be the majority shareholders of the BEE SPV
• Sibanye also recognises the role played by local communities not only in the Rustenburg Operations but also the platinum belt region, as well as the need to develop black entrepreneurs
• The Bakgatla-Ba-Kgafela and another empowerment group will comprise the remaining shareholders
An inclusive and value-enhancing transaction 26
Chrome production guidance*
• Chrome is expected to be a significant contributor to Rustenburg, accounting for c.10% of total LoM revenues
– IFM offtake agreement amended and all volumes are shown ex-IFM tonnes
– interstage project expected to increase throughput volumes and recoveries from September 2016 onwards
• c.45ktpm at 12% recovery
• Kroondal’s chrome output remains subject to an offtake agreement with Samancor and Glencore and is not impacted by the Rustenburg acquisition
Chrome is a significant contributor to Rustenburg’s revenue stream 27
0
5
10
15
20
25
30
35
40
45
50
Ktpm Recovery (%)
* Estimates based on current assumptions before optimisation (subject to change)
Integration journey
All Integration activities
expected to be completed
Day One
Post-close integration planning and
execution
All closing conditions met
Launch Integration teams, joint planning and communications
The integration journey continues
Transactions progressing as anticipated 29
Launch Integration teams, joint planning and communications
All Integration activities
expected to be completed
October 2015 TBD (dependent on Rustenburg)
Post-close integration planning sign-off
implementation plan (13 May 2016)
July 2016
Day One
4 April 2016
Deal announced
Integration assessment
OptimisationPre-close: day one
planning and executionPre-
Signing
Stabilisation
(90 days)
September 2015 Q1 2017Q3 / Q4 2016 TBD
Aquarius
Rustenburg
Regulatory
approval
(Mar 17, 2016 )
Pre-close: day one planning and executionPre-
SigningOptimisation
Stabilisation(90 days)
Deal announced
Integration assessment
Combined platinum footprint
Our vision and rationale
The conclusion of the acquisition of the Rustenburg Operations, anticipated by Q4 2016, should yield the following operation enhancements
• Combined, the Rustenburg Operations and Kroondal will increase the number of operating shafts from 5 to 10, creating further efficiency, co-operation and growth opportunities
• Potential to optimise ore tramming, logistics and transport costs, particularly from K6 and Kwezi shafts, as well as existing plant capacity and recoveries
• Potential to reduce central service costs by combining services with Rustenburg Operations over the medium term
• More favourable purchasing power with suppliers once Group contracts are aligned
• Increased operational footprint allows us to positively leverage off and engage with:
– DMR
– Rustenburg Local Municipality
– communities
– organised labour
– SLP requirements
• Sibanye's Platinum Division will toll treat its concentrate from 1 January 2019 as opposed to delivering concentrate under a PoC agreement. At long term consensus prices this is expected to increase profitability, sustainability and value creation
• Existing PoC agreements (Kroondal and Mimosa) remain in place and are not subject to toll treatment
Superior value creation for all stakeholders 30
Operating synergies
• Removal of mine boundaries results in
optimised mine plans and underground infrastructure
• Optimising plant utilisation and surface ore flow
Direct cost savings at operations
• Best practice operational
benchmarking
• Economies of scale benefits
Operating and separate synergies targeted
Driving value creation through realisation of regional and operating synergies 31
Shared services and central cost savings
• Bathopele/Kroondal shared services optimised
• Rustenburg and Kroondal training
• Regional, central and shared services
• Corporate overheads reduced
Turk #
(undeveloped)
School
of MinesRustenburg Operations
Care and maintenance
Aquarius
Combined savings of R800m anticipated annually
Extracting synergies is key to sustainability 32
Category Shortlist of key initiatives Combined value (Rm)
Employee cost • Senior employee and management configured to reflect
the Sibanye operating model
200
Sourcing and stores management • Deploying Sibanye’s procurement power across all
suppliers and operations (Kroondal and Rustenburg)
26
Closure of corporate offices • Rosebank, Centurion and Perth offices 69
Property/Housing • Review of low and high density accommodation contracts
for employees
114
Training • Consolidate training footprint between Kroondal and
Rustenburg
30
Central services synergies • Consolidation of production support functions currently
duplicated across Kroondal and Rustenburg
237
Other • Yet to be specifically quantified – infrastructure
consolidation, mining flexibility benefits and plant
optimisation
124
Total 800
Kroondal: Baseline was 2016 Budget (July 2015 to June 2016)
Rustenburg: Baseline was the PFS – re-based as a standalone company
Conclusion
A secure and prosperous future
• Despite a difficult operating environment, growth in the platinum industry is a logical
extension of our value-creation strategy
– S54s, organised labour and community unrest are being proactively managed
– conventional shafts across the Western Limb remain under pressure
• Current platinum acquisitions will realise significant value
– Sibanye set to become the world’s fifth largest platinum producer, with the potential to consolidate further through acquisitions
– Ability to influence PGM markets post 2019
– Synergy efficiencies of R800m annually within three years will allow Sibanye’s Platinum Division to move into the lower half of the industry cost curve
– S52 process has begun at Kroondal and Rustenburg – Sibanye will be uncompromising
on production discipline and capital allocation
– we believe long-term PGM fundamentals remain robust
• Aquarius is already largely integrated while Rustenburg still requires S11 approval from the DMR
• Anticipated Q4 2016 completion of the Rustenburg acquisition
• Sibanye’s strong regional presence on the western limb creates opportunities for further
necessary consolidation
Gearing up to play a substantial part in the PGM space 34
Platinum Appendices
PGM (4E) production and capex guidance*
Maintaining throughput at sustainable level 36
* Estimates based on current assumptions before optimisation (subject to change)
Rustenburg LoM plan*
Planning for a long-term viable operation 37
Component Unit Total 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025/34 2035/42
RoM tonnes Mt 168.6 7.3 7.6 7.8 7.9 8.2 8.4 9 9.2 8.9 65.4 26.9
Tailings tonnes Mt 93.1 6.4 3.4 3.4 3.4 3.4 3.4 3.4 3.4 3.4 34.2 23.9
Milled tonnes Mt 261.7 13.7 11.1 11.3 11.3 11.6 11.9 12.5 12.6 12.3 99.6 50.8
6E recovered Moz 22.48 0.98 0.96 0.99 1.01 1.07 1.12 1.17 1.15 1.1 8.65 4.03
Shaft head cost ZAR M 136,791 5,542 5,760 6,087 6,478 6,542 6,651 6,852 6,762 6,497 54,422 23,816
Concentrator cost ZAR M 32,659 1,557 1,308 1,352 1,382 1,393 1,402 1,422 1,427 1,417 12,771 6,840
Overhead cost ZAR M 34,927 1,395 1,424 1,451 1,451 1,462 1,470 1,490 1,495 1,485 13,608 7,834
Total operating cost ZAR M 204,377 8,494 8,493 8,890 9,311 9,398 9,523 9,763 9,683 9,399 80,802 38,489
Project capital ZAR M 4,389 525 589 754 587 414 377 316 229 166 390 0
SIB capital ZAR M 12,174 669 639 641 649 652 648 680 662 647 4,762 1,363
Total capital cost ZAR M 16,564 1,194 1,228 1,396 1,236 1,066 1,025 996 892 814 5,152 1,363
Income tax ZAR M 13,468 205 338 318 406 760 914 978 925 867 5,255 2,439
Other ZAR M 1,021 27 33 36 38 51 58 62 59 56 391 205
WC changes ZAR M -1,294 -641 -329 -215 -496 -609 -387 -318 -87 -29 -84 1,250
* Estimates based on current assumptions before optimisation (subject to change)
Competent Persons Report (CPR) estimates as published
Combined LoM models*
38
0
2 000 000
4 000 000
6 000 000
8 000 000
10 000 000
12 000 000
14 000 000
16 000 000
18 000 000Tons delivered
Bambanani FE Simunye Kopaneng K6 Them L1 Mer Khus L1 Mer
Khus L1 UG2 Kwezi Them L1 UG2 Siph L1 Mer Bambanani ACK Bath L1 UG2
Marikana 5 LEV 2 Bambanani MK4 Them L2 UG2 Siph L2 UG2 Khus L2 UG2
* Estimates based on current assumptions before optimisation (subject to change)
Combined LoM models*
39
0
200 000
400 000
600 000
800 000
1 000 000
1 200 000
1 400 000
1 600 000
1 800 0004E ounces delivered
Bambanani FE Simunye Kopaneng K6 Them L1 Mer Khus L1 Mer
Khus L1 UG2 Kwezi Them L1 UG2 Siph L1 Mer Bambanani ACK Bath L1 UG2
Marikana 5 LEV 2 Bambanani MK4 Khus L2 UG2 Them L2 UG2 Siph L2 UG2
* Estimates based on current assumptions before optimisation (subject to change)
Updated reserve position*
40
* Subject to change – as at December 20151 Surface Tailings are combined Merensky and UG22 Main Sulphide Zone (MSZ) Zone – Great Dyke and not Merensky
3 As publicly disclosed in December 20154 As publicly disclosed in June 2015 and depleted based on actual
Operations Attributable Merensky UG2 Total
Tons (Mt) Grade 4E (g/t) 4E (Moz) Tons (Mt) Grade 4E (g/t) 4E (Moz) 4E (Moz)
Bathopele 100% - - - 35.0 2.94 3.3 3.3
Thembelani 100% 5.2 5.45 0.9 91.3 4.03 11.8 12.7
Siphumelele 100% 8.2 5.89 1.6 68.6 3.57 7.9 9.5
Kroondal 50% - - - 15.6 2.90 1.4 1.4
Kroondal PSA Extension 50% - - - 14.3 2.62 1.2 1.2
Marikana 50% - - - 11.9 2.78 1.1 1.1
RPM Surface [tailings]1 100% 94.2 1.08 3.3 - - - 3.3
Proved 12.5 5.76 2.3 194.9 3.48 21.8 24.1
Probable 95.2 1.12 3.5 41.8 3.67 4.9 8.4
Total SA 107.7 1.66 5.8 236.7 3.52 26.7 32.5
Total non-SA – Mimosa2 50% 16.4 3.59 1.9 - - - 1.9
Proved 23.4 4.73 3.5 194.9 3.44 21.8 25.4
Probable 100.7 1.26 4.1 41.8 3.59 4.9 9.0
Total Sibanye 124.1 1.92 7.7 236.7 3.46 26.7 34.4
25.5
3.7 3.3
32.5
1.9
34.4
Rustenburg Kroondal RPM Surface [tailings] Total SA Total non-SA Total Sibanye
ProbableProved
1
2
4
1 2 4
3
3
