Annual production from the gold operations (excluding DRDGOLD) for 2019 including Q1 and Q2
(impacted by the AMCU strike) is forecast at between 24,000kg to 25,000kg (772koz to 804koz).
Whilst the normalisation of production will significantly reduce unit costs in H2 2019, higher than normal
levels of capital expenditure (to compensate for capital underspend in H1 2019) and restructuring costs,
will result in temporarily elevated All-in Sustaining Cost (AISC) of between R590,000/kg and R630,000/kg
(or US$1,350/oz and US$1450/oz) for H2. Indicatively, AISC would have been between approximately
R550,000/kg and R580,000/kg (or US$1,260/oz and US$1,330/oz) if a normalised, pre-strike forecast
production and capital expenditure is assumed during H2.
On an annual basis for 2019, AISC will remain elevated on average, at between R715,000/kg and
R750,000/kg (or US$1,640/oz and US$1,725/oz), due to the higher unit costs from H1 2019 as a result of the
Capital expenditure for 2019 is forecast at about R2,350 million (US$173 million), which includes
approximately R220 million (US$16 million) of project capital. Approximately R1,900 million (US$140 million)
of this capital expenditure has been scheduled for H2 2019. The dollar costs are based on an average
exchange rate of R13.55/US$.
Sibanye-Stillwater CEO, Neal Froneman commented: “We have come through a difficult period, but
have strategically positioned the Group for the platinum wage negotiations and the integration of
Lonmin. Restructuring and consultations proceeded despite the ongoing strike. We are therefore
pleased to have concluded the S189 consultation and successfully reduced the footprint of the
operations in a responsible manner and resulted in over 2,650 potential job losses being avoided.
Although restructuring is a difficult and emotive process, the sustainability of our remaining operations is
our primary focus. To ensure further sustainability of the West Rand gold mines, avoiding premature mine
closure will require an ongoing regional approach to reduce costs through the rationalisation of
infrastructure and services, including a regional mine water management solution.
We are now focused on restoring profitability at our SA gold operations in a steady and safe manner. Our
SA gold operations recently achieved a record five million fatality free shifts, during a particularly difficult
and disruptive period, which is a noteworthy achievement.”
Investor relations contact:
Head of Investor Relations
+27 (0) 83 453 4014
Sponsor: J.P. Morgan Equities South Africa Proprietary Limited
This announcement contains forward-looking statements within the meaning of the “safe harbour”
provisions of the United States Private Securities Litigation Reform Act of 1995. All statements other than
statements of historical fact included in this announcement may be forward-looking statements.
Forward-looking statements may be identified by the use of words such as “will”, “would”, “expect”,
“may”, “could”, “believe”, “anticipate”, “target”, “estimate” and words of similar meaning. These
forward-looking statements, including among others, those relating to our future business prospects,
financial positions, ability to reduce debt leverage, business strategies, plans and objectives of
management for future operations and the anticipated benefits and synergies of transactions, are
necessarily estimates reflecting the best judgement of our senior management. Readers are cautioned
not to place undue reliance on such statements. Forward-looking statements involve a number of
known and unknown risks, uncertainties and other factors, many of which are difficult to predict and