Operationsupdate Sibanye-Stillwater H1-2023
Johannesburg, 2 November 2023: Sibanye Stillwater Limited (Sibanye-Stillwater or the Group) (JSE: SSW and NYSE: SBSW - https://www.commodity-tv.com/ondemand/companies/profil/sibanye-stillwater-ltd/) is pleased to provide an operating update for the quarter ended 30 September 2023, Group financial results are only provided on a six-monthly basis.
SALIENT FEATURES - QUARTER ENDED 30 SEPTEMBER 2023 (Q3 2023) COMPARED TO QUARTER ENDED 30 SEPTEMBER 2022 (Q3 2022)
- Strong financial position and proactive repositioning for changing environment ensures competitiveness
- Industry leading cost management at SA PGM operations. Moving down industry cost curve increases competitiveness
- SA gold operations generated R344m (US$19m) adjusted (Adj) EBITDA, a R1.2bn (US$67m) turnaround; ongoing S189 process at Kloof 4
- US PGM operations resume planned mine production run rate in October 2023 driving improved outlook for production for Q4 2023
- Improved operational performance from the European and Australian regions
- Century zinc operation contributed positive Adj EBITDA of R53m (US$3m), successfully recovering post regional flooding during Q1 2023
- Construction of the Keliber lithium project progressing well: commenced construction at the concentrator and the first open pit
KEY STATISTICS – GROUP
US dollar
SA rand
Quarter ended
Quarter ended
Sep 2022
Jun 2023
Sep 2023
KEY STATISTICS
Sep 2023
Jun 2023
Sep 2022
GROUP
496
343
163
US$m
Adjusted EBITDA1
Rm
3,027
6,392
8,455
17.05
18.66
18.59
R/US$
Average exchange rate using daily closing rate
TABLE OF CONTENTS
Page
Stock data for the Quarter ended 30 September 2023
Number of shares in issue
Overview of quarter on quarter operating results
- at 30 September 2023
2,830,567,264
Salient features - operational tables - quarterly statistics
12
- weighted average
2,830,567,264
All-in cost (reconciliation) - quarters
17
Free Float
99 %
22
Bloomberg/Reuters
SSWSJ/SSWJ.J
Adjusted EBITDA reconciliation - quarters
24
JSE Limited - (SSW)
25
Price range per ordinary share (High/Low)
R25.87 to R33.82
Administration and other corporate information
27
Average daily volume
14,115,662
Disclaimer and forward-looking statements
28
NYSE - (SBSW); one ADR represents four ordinary shares
Price range per ADR (High/Low)
US$5.47 to US$7.73
Average daily volume
4,268,600
KEY STATISTICS BY REGION
US dollar
SA rand
Quarter ended
Quarter ended
Sep 2022
Jun 2023
Sep 2023
KEY STATISTICS
Sep 2023
Jun 2023
Sep 2022
AMERICAS REGION
US PGM underground operations
85,889
104,823
105,546
oz
2E PGM production2,3
kg
3,283
3,260
2,671
1,811
1,360
1,190
US$/2Eoz
Average basket price
R/2Eoz
22,122
25,378
30,878
52
39
21
US$m
Adjusted EBITDA1
Rm
397
722
895
1,815
1,623
1,922
US$/2Eoz
All-in sustaining cost4
R/2Eoz
35,738
30,280
30,947
US PGM recycling
141,560
83,608
72,434
oz
3E PGM recycling2,3
kg
2,253
2,601
4,403
3,378
2,480
2,215
US$/3Eoz
Average basket price
R/3Eoz
41,177
46,277
57,595
22
9
8
US$m
Adjusted EBITDA1
Rm
147
172
371
SOUTHERN AFRICA (SA) REGION
PGM operations
432,143
419,391
451,560
oz
4E PGM production3,5
kg
14,045
13,045
13,441
2,479
1,698
1,317
US$/4Eoz
Average basket price
R/4Eoz
24,479
31,689
42,269
489
259
136
US$m
Adjusted EBITDA1
Rm
2,532
4,842
8,332
1,127
1,041
1,080
US$/4Eoz
All-in sustaining cost4
R/4Eoz
20,080
19,416
19,211
Gold operations
204,672
216,471
197,663
oz
Gold produced
kg
6,148
6,733
6,366
1,723
1,975
1,930
US$/oz
Average gold price
R/kg
1,153,448
1,184,973
944,316
(48)
86
19
US$m
Adjusted EBITDA1
Rm
344
1,601
(811)
2,207
1,800
2,062
US$/oz
All-in sustaining cost4
R/kg
1,232,600
1,080,135
1,210,049
EUROPEAN REGION
Sandouville nickel refinery
1,653
1,884
2,352
tNi
Nickel production6
tNi
2,352
1,884
1,653
22,553
25,815
21,726
US$/tNi
Nickel equivalent average basket price7
R/tNi
403,895
481,713
384,525
(14)
(20)
(16)
US$m
Adjusted EBITDA1
Rm
(296)
(382)
(246)
30,185
36,363
31,514
US$/tNi
Nickel equivalent sustaining cost8
R/tNi
585,853
678,537
514,654
AUSTRALIAN REGION
Century zinc retreatment operation9
—
23
25
ktZn
Zinc metal produced (payable)10
ktZn
25
23
—
—
1,545
1,708
US$/tZn
Average equivalent zinc concentrate price11
R/tZn
31,747
28,832
—
—
(23)
3
US$m
Adjusted EBITDA1
Rm
53
(433)
—
—
2,013
1,753
US$/tZn
All-in sustaining cost4
R/tZn
32,587
37,562
—
1 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. Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Adjusted EBITDA is not a measure of performance under IFRS and should be considered in addition to and not as a substitute for other measures of financial performance and liquidity. For a reconciliation of profit/(loss) before royalties and tax to adjusted EBITDA, see "Adjusted EBITDA reconciliation - Quarters"
2 The US PGM operations’ underground production is converted to metric tonnes and kilograms, and performance is translated to SA rand (rand). In addition to the US PGM operations’ underground production, the operation treats recycling material which is excluded from the 2E PGM production, average basket price and All-in sustaining cost statistics shown. PGM recycling represents palladium, platinum, and rhodium ounces fed to the furnace
3 The Platinum Group Metals (PGM) production in the SA operations is principally platinum, palladium, rhodium and gold, referred to as 4E (3PGM+Au), and in the US operations is principally platinum and palladium, referred to as 2E (2PGM) and US PGM recycling is principally platinum, palladium and rhodium referred to as 3E (3PGM)
4 See “Salient features and cost benchmarks - Quarters” for the definition of All-in sustaining cost (AISC)
5 The SA PGM production excludes the production associated with the purchase of concentrate (PoC) from third parties. For a reconciliation of the production including third party PoC, refer to the "Reconciliation of operating cost excluding third party PoC for US and SA PGM operations, Total SA PGM operations and Marikana - Quarters"
6 The nickel production at the Sandouville nickel refinery operations is principally nickel metal and nickel salts (liquid form), together referred to as nickel equivalent products
7 The nickel equivalent average basket price per tonne is the total nickel revenue adjusted for other income less non-product sales divided by the total nickel equivalent tonnes sold
8 See "Salient features and cost benchmarks - Quarters Sandouville nickel refinery for a reconciliation of cost of sales before amortisation and depreciation to nickel equivalent sustaining cost
9 Century is a leading tailings management and rehabilitation company that currently owns and operates the Century zinc tailings retreatment operation in Queensland, Australia. Century was acquired by the Group on 22 February 2023
10 Zinc metal produced (payable) is the payable quantity of zinc metal produced after applying smelter content deductions
11 Average equivalent zinc concentrate price is the total zinc sales revenue recognised at the price expected to be received excluding the fair value adjustments divided by the payable zinc metal sold
STATEMENT BY NEAL FRONEMAN, CHIEF EXECUTIVE OFFICER OF SIBANYE-STILLWATER
The global macro-economic environment remains challenging, and we continue to assess the positioning of our operations for optimal performance and sustainability through the cycle.
Our financial position remains robust and our capital allocation framework remains the guiding principle for growth and diversification opportunities aligned with our strategy. We have maintained our capital discipline in anticipation of weaker market conditions, as highlighted in February 2022. We remain prudent with capital investment and utilising our balance sheet to fund external growth during this challenging period. We are conscious of the necessity of appropriately managing debt, mindful of our leverage position during periods of decreasing, or volatile, profitability and earnings.
After a difficult start to the third quarter, with three tragic fatalities recorded in the first five weeks, the remainder of Q3 2023 was fatality free. It was pleasing to note that the significant gains in our safety performance indicators since 2021 have been maintained, with the other lagging indicators generally stable year-on-year. We look forward to ongoing improvements in the Group safety performance over the remainder of the year, with an intense focus on ending the year without any high impact incidents.
As stated in our recent H1 2023 operating and financial results, we are mindful of the commercial environment and, where necessary, will consider restructuring in areas where commercially viable operations cannot be sustained. In this regard, we recently announced potential restructuring at our SA gold and SA PGM operations. Potential closure or rightsizing of high cost and underperforming shafts will ensure that operations remain profitable and sustainable at current precious metal prices and beyond, while retaining significant leverage to improvements in the commodity price outlook.
Although we repositioned the US PGM operations in mid-2022 in anticipation of the changing macro environment and worsening medium term outlook for the palladium price, the decline in the palladium price during 2023 has surpassed our expectations, dropping lower and faster than anticipated. While the mine production volume run rate at the US PGM operations improved during October 2023, persistent inflation and the continued impact of skills shortages, have resulted in costs remaining significantly higher than planned. Further repositioning is being considered to address these factors which have kept costs at elevated levels.
As guided, the operational performances of the Sandouville nickel refinery (Sandouville refinery) in France and the Century zinc retreatment operation (Century operation) in Australia for Q3 2023 improved, with both operations recovering from disruptions which impacted H1 2023. This improved operational performance resulted in the Century operation contributing positively to Group adjusted EBITDA for Q3 2023, a significant turnaround from adjusted EBITDA losses from Q2 2023.
Despite the improved operational performance, the Sandouville refinery remained loss making, due to continued inflationary cost pressures, elevated maintenance costs and a further decline in the average nickel price. The current operations are not commercially viable at current nickel prices, and management has made notable progress with optimisation studies aimed at securing a sustainable future for the Sandouville refinery. Positively, during these optimisation studies, the European region and Sandouville teams have identified an innovative alternative to the current process and are currently assessing its commercial and technical feasibility. In parallel, we continue to advance the studies on recycling and production of battery grade nickel products.
Addressing losses from these operations will ensure ongoing delivery of our strategy and position us well for future value creation.
In this regard, we have initiated the construction of the lithium concentrator and the development of the Syväjärvi open pit mine in Päiväneva in Finland. This ensures that the Keliber lithium project remains on track to be the first integrated lithium hydroxide supplier in Europe, delivering battery grade metal into the European battery ecosystem by 2026, at a time when we believe there will be increasing deficits in lithium supply.
More details on the capital and expected production profile will be shared by Sibanye-Stillwater at its virtual battery metals investor day on Tuesday, 14 November 2023 with a live presentation shared via webcast (link: https://themediaframe.com/mediaframe/webcast.html?webcastid=jg7r2VtY) and conference call (register on: https://services.choruscall.za.com/DiamondPassRegistration/register?confirmationNumber=2252855&link SecurityString=5ce1569ad) at 13h00 (CAT) / 11h00 (GMT) / 06h00 (EST) / 04h00 (MT).
While the economic outlook remains challenging and uncertain, we are well positioned for continued delivery of shared value for all stakeholders.
SAFE PRODUCTION
The focus on safety continues, with our immediate objective to eliminate fatal and serious injuries through ongoing implementation of our Fatal elimination strategy: critical controls, critical lifesaving behaviours and critical management routines.
Throughout Q3 2023, the safety focus was on advancing the risk reduction journey, implementation of medium and long-term interventions related to the fatal elimination strategy, and continuing to make good progress in reducing the number of serious injuries at the operations.
The serious injury frequency rate (SIFR) (per million hours worked), including the Australian region which was included from May 2023, improved by 12% from an already significantly improved rate of 2.82 for Q3 2022 (10% improvement compared to Q3 2021 at the time) to 2.47 in Q3 2023. Of note is the SIFR at the SA PGM operations which improved from 2.36 in Q3 2022 to 2.10 in Q3 2023, the lowest rate ever achieved by these operations. The Group total recordable injury frequency rate (TRIFR) regressed marginally by 1% year-on-year to 5.28 following significant improvements of 16% from Q3 2021 to Q3 2022. Regrettably, the fatal injury frequency rate (FIFR), regressed from 0.05 for Q3 2022 to 0.07 for Q3 2023 as a result of three fatalities in Q3 2023, two fatalities at the SA gold operations and one fatality at the SA PGM operations, which occurred one day prior to the SA PGM operations achieving a commendable milestone of 10 million shifts without fatalities.
We mourn the tragic loss of our three colleagues. Mr Armando Matias, a Development Miner at Driefontein's Hlanganani shaft, passed away, on 13 July 2023 due to smoke inhalation during the underground fire. On 17 July 2023, Mr. Molemosa Nkopane a Loader Operator at Rustenburg's Khuseleka shaft was fatally injured in a rail bound equipment derailment-related accident. On 1 August 2023, Mr Taelo Ramochela, Special Team Leader Development at Kloof's Masimthembe Shaft passed away due to injuries sustained while conducting an inspection in a boxhole.
Amidst the tragic loss of lives during the first 32 days of the quarter, it was encouraging that the rest of the quarter was fatality free and again underpins the need to maintain constant vigilance and focus while implementing our Fatal elimination plan.
The board and management of Sibanye-Stillwater extend heartfelt condolences to the families, friends and colleagues of our deceased colleagues. All incidents are being investigated with relevant stakeholders and appropriate support is being provided to the families of the deceased.
Our core focus remains driving the full implementation of the Fatal elimination strategy from leadership down to all employees, ensuring it is understood and internalised by every single employee, resulting in a safety-first culture that complements and is underpinned by the Group's values.
US PGM operations
The US PGM operations concluded the recovery from the shaft incident at the Stillwater West mine (which resulted in an eight week stoppage during H1 2023), achieving the mined production volume run rate planned as per the repositioning plan during October 2023. An improvement in 2E PGM mined production is therefore forecast for Q4 2023 with an associated reduction in unit costs. Inflationary cost pressures and a reliance on contractors due to the persistent skills shortage in Montana and the USA, is likely to keep costs elevated however, we will continue to assess the changing macro economic and commodity price environment to ensure that the appropriate production and cost structures are in place to ensure the sustainability of the operations.
Mined 2E PGM production from the US PGM operations of 105,546 2Eoz for Q3 2023, was 23% higher than for Q3 2022, which was impacted by the regional flooding in Montana in mid-June 2022. The regional flooding restricted access to the Stillwater mine leading to the suspension of production from the Stillwater West and East mines for eight weeks during Q3 2022, followed by a subsequent production build-up during the remainder of 2022.
Mined tonnes milled for Q3 2023 of 316kt was 31% higher than for Q3 2022 with plant head grade of 11.6g/t for Q3 2023 5% lower than for Q3 2022. The mining operations continue to experience grade challenges due to dilution from difficult ground conditions and mining quality factors related to the high staff attrition rates and skills challenges.
AISC of US$1,922/2Eoz (R35,738/2Eoz) for Q3 2023 was 6% higher than for Q3 2022 (US$1,815, R30,947/2Eoz) due to higher than expected contractor costs and persistently high inflationary cost pressures on stores and other operating costs. Ongoing skills shortages and a reliance on contractors for ore reserve development (ORD), contributed to ORD capital increasing by 33% year-on-year to US$56 million (R1,049 million) and sustaining capital increasing by 88% to US$32 million (R602 million) primarily as a result of the requirement to gain additional flexibility for the operations. ORD costs, which now contribute US$535/2Eoz (R9,939/2Eoz) to AISC, has increased due to higher development rates and contractor premiums due to the need to accelerate development and higher development support costs. Included in the high ORD are other infrastructure costs (vertical alimak raises and raisebore drilling) as well as diamond drilling in order to ensure that stoping remains on reef. Many of these activities are done by contractors at significantly higher cost, supported by maintenance crews, also with a significant component of high-cost contractors. Sustaining capital which contributes US$307/2Eoz (R5,704/2Eoz) was significantly higher due to spending on critical life of mine ventilation improvements at both mines, including fans and a heat exchanger at the East Boulder mine, transport and mining fleet replacement, and expenditure associated with the smelter rebuild for Q4 2023.
Of significant benefit, in terms of the US Inflation Reduction Act (IRA), the US PGM operations qualifies for an IRA credit (45X Advanced Manufacturing Production Credit) equal to 10% of qualifying production costs incurred for critical minerals produced and sold after 31 December 2022, for a period of 10 years. For Q3 2023, management recognised an IRA credit of US$10.8 million (R201 million) against operating costs.
Mine production at the Stillwater operation (West and East mines) of 68,796 2Eoz, was 45% higher than for Q3 2022, reflecting the recovery from the flooding impact during H2 2022, but continued to be impacted by the shaft incident in Q1 2023, grade issues and fleet availability. Mined production volume from the Stillwater mine returned to planned run rates during October 2023. Production from East Boulder of 36,751 2Eoz, was 4% lower than for Q3 2022, impacted by ongoing grade issues, critical skills shortages, particularly mechanical, which affected fleet availability and temporary planned power interruption due to the implementation of the new ventilation arrangements which will improve underground conditions.
The key focus areas for the US PGM operations include infrastructure maintenance scheduling (which is being overhauled), improving fleet availability, addressing the mining mix at the East Boulder mine, minimizing dilution, and implementing ongoing labour retention strategies whilst reducing exposure to significantly higher cost contractors.
2E PGM sold for Q3 2023 of 124,882 2Eoz, was 80% higher year-on-year and 18% or 19,336 2Eoz higher than 2E PGM mined production for the quarter, due to the timing of deliveries.
Consistent with the repositioning plan for the US PGM operations to increase the flexibility and the developed state of the underground operations to 18 months, total development increased by 3% to 6.5 kilometres with primary off-reef development 17% higher year-on-year at 1,957 metres and secondary development 2% lower at 4,587 metres. Whilst development rates were impacted by the shaft incident at the Stillwater mine, ORD is improving with development rates achieved in Q3 2023 being the highest since Q1 2022.
Total capital expenditure for Q3 2023 increased by 17% year-on-year to US$100 million (R1,852 million), with 89% of this total spent on ORD and sustaining capital. Project capital was 58% lower at US$11 million(R201 million) in line with the reduced spending on the Stillwater East project. Following on the completion of the Benbow decline on 16 September 2022, remaining project capital spend was on the completion of 56 East holing to the Benbow decline, and the processing plant upgrade (with the first line successfully commissioned).
US PGM recycling operations
The global autocatalyst recycling industry remains depressed mainly as a result of the uncertain global economic outlook, recessionary concerns, and higher interest rates that have inhibited consumer demand for new vehicles. Light duty vehicles (LDV) are remaining in service for extended periods of time with fewer vehicles being scrapped.
Reflecting on these factors, the recycling operations fed an average of 9.5 tonnes per day (tpd) for Q3 2023, 46% lower than for the comparable period in 2022. During Q3 2023, 873 tonnes of material was processed, 46% lower than Q3 2022. At the end of Q3 2023, approximately 24 tonnes of recycle inventory was on hand, an 18 tonne decrease versus the Q3 2022 ending inventory of 42 tonnes. There has been a positive cash inflow over the year as inventory reduced from US$320 million (R5.4 billion) at the beginning of Q1 2023 to US$165 million (R3.1 billion) at the end of Q3 2023.
Recent increases in global auto sales have led to upward revisions in 2023 sales forecasts, offering a promising indicator of an uptick in future recycling volumes. Despite these positive developments, the recycling segment continues to face short term challenges, driving efforts to pursue and achieve volume-driven growth. This includes exploring opportunities beyond the traditional autocatalyst feed sources.
SA PGM operations
The SA PGM operations produced another solid operational performance for Q3 2023, with leading cost management again standing out as a key differentiator in the SA PGM industry. Production of 451,560 4Eoz (excluding third party purchase of concentrate (PoC)) for Q3 2023 was 4% higher than for Q3 2022, due to improved production from the Rustenburg and Marikana operations, which offset lower production from the Kroondal operation as a consequence of the planned closure of the Simunye shaft during 2022. Production (including PoC) was 6% higher year-on-year at 475,555 4Eoz due to third party PoC processing increasing by 44% to 23,995 4Eoz year-on-year.
In contrast to Q3 2022, which was impacted by the beginning of elevated levels of power curtailment imposed by Eskom, no ore stockpiles were reported at the end of Q3 2023 compared with the end of Q3 2022 when underground ore containing approximately 33,000 4Eoz was stockpiled on surface. The Group's strategic response to the load curtailment has been very effective, underpinned by the relative advantage of processing capacity that averts the risk of accumulating "deferred production".
AISC (excluding third-party PoC) for Q3 2023 of R20,080/4Eoz (US$1,080/4Eoz) was just 5% higher than for Q3 2022, below prevailing South African consumer price inflation (CPI) and reflecting ongoing industry-leading cost management. AISC (including PoC) was R20,029/4Eoz (US$1,077/4Eoz) 1% lower year-on-year reflecting the significant decline in PGM prices year-on-year despite the 44% increase in PoC purchases to 23,995 4Eoz . The well contained AISC benefited from a 16% year-on-year increase in by-product credits driven largely by higher chrome prices, and lower royalties which offset ORD and sustaining capital increases of 5% and 4% respectively. A 78% decrease in royalty costs year-on-year was also notable with by-product credits of R2.5bn (US$133 million) for the period exceeding the combined value of royalties, inventory change, ORD and sustaining capital. AISC (including PoC) was also lower with third party PoC cost 28% lower at R565 million (US$30 million) despite an increase in PoC volumes, which were offset by lower PGM prices.
Despite this solid performance, four shafts have become unprofitable following the precipitous decline in the 4E PGM basket price, necessitating restructuring for profitability and sustainability in the longer term (see announcement below of SA PGM Section 189).
Capital expenditure of R1,440 million (US$77 million) for Q3 2023 was 14% higher than for Q3 2022 with ORD 5% higher at R622 million (US$33 million), sustaining Capital 4% higher at R484 million (US$26 million) and project Capital 61% higher at R334 million (US$18 million) as a result of the 30% increase year-on-year in the project Capital (R270 million (US$15 million)) at the K4 project at the Marikana operation and R64 million (US$3 million) spent on the new chrome extraction plant at Platinum Mile during Q3 2023, which is due to be commissioned in Q4 2023.
4E PGM production from the Rustenburg operation for Q3 2023 of 182,022 4Eoz was 1% higher year-on-year with underground production 2% higher and surface production 2% lower. The improvement in underground production was achieved despite difficult ground conditions impacting productivity at the Thembelani shaft and seismic activity during 2022 at the Siphumelele shaft (restricting access to planned production areas). Mining through the Hexriver fault, which has impacted productivity from the Bathopele shaft, has largely been traversed and production is steadily improving. AISC from the Rustenburg operation was again very well contained, increasing by only 1% to R18,701/4Eoz (US$1,006/4Eoz) year-on-year. A 13% increase in by-product credits driven mainly by the chrome price which increased by 28% year-on-year and a 73% decline in royalties offset inflationary cost pressures and a 23% decline in ORD capital. By-product credits from the Rustenburg operation were negatively impacted by port constraints, which restricted chrome sales. The Rustenburg operations continue to move down the cost curve as a result of good cost management and with ground conditions improving, the outlook for sustained production is positive.
4E PGM production for Q3 2023 from the Marikana operation (excluding third party PoC) of 179,014 4Eoz, was 9% higher than for Q3 2022, with underground production and surface production 9% and 12% higher respectively due to lower impact from load curtailment and cable theft than Q3 2022. 4E PGM production (including PoC) of 203,009 4Eoz for Q3 2023 was 13% higher than for Q3 2022 with PoC increasing by 44% year-on-year to 23,995 4Eoz due to higher contractual deliveries from third parties. AISC (excluding third party PoC) for Q3 2023 of R22,607/4Eoz (US$1,216/4Eoz) increased by only 4%, primarily due to higher production, which largely offset an increase in ORD of 19% to R473 million(US$25 million) and a 14% increase in sustaining capital to R276 million (US$15 million). The year-on-year increase in ORD and sustaining capital at Marikana is primarily due to the ramp-up of the K4 shaft. Since K4 commenced stoping and development operations outside the main shaft infrastructure in March 2023, on reef development was expensed in working costs with off reef development capitalised as ORD. While the K4 project remains in build-up phase, unit operating costs, ORD and sustaining capital remain temporarily elevated, but are expected to reduce as production builds up, benefiting costs from the Marikana operation. AISC (including PoC) for Q3 2023 at Marikana declined by 6% compared with Q3 2022 to R22,196/4Eoz (US$1,194/4Eoz). Other factors resulting in lowering the AISC were a 33% increase in by-product credits, royalties which were 89% lower due to lower commodity prices and the cost of PoC from third parties, which was 28% lower than for Q3 2022 at R565 million (US$30 million) due to the lower basket price, despite higher PoC volumes.
4E PGM production from the Kroondal operation of 47,600 4Eoz for Q3 2023 was 1% lower than for the comparable period in 2022 due to the Simunye shaft reaching the end of its life and winding down main production activities (ceasing during Q4 2022) and reduced productivity and increased dilution from the Bambanani shaft which is mining through a shear zone. AISC of R18,550/4Eoz (US$998/4Eoz) was 20% higher than for Q3 2022 primarily due to lower production, higher inflationary costs as highlighted above as well as higher support costs, due to the mining through adverse ground conditions at the shear zone. By-product credits were also 37% lower due to lower chrome production associated with the termination of primary mining at the Simunye shaft and reduced offtake from a contracted party. Chrome production is expected to increase in future.
Attributable 4E PGM production from Mimosa of 29,060 4Eoz was 1% higher than Q3 2022. AISC increased by 10% year-on-year to US$1,359/4Eoz (R25,258/4Eoz) due to inflationary pressures being experienced in Zimbabwe, in particular electricity costs which rose for exporters by 40% in October 2022, the first increase since 2014. Sustaining capital remained elevated at US$14 million (R266 million) primarily associated with the ongoing construction of the new tailings storage facility (TSF) which is due to be commissioned between December 2023 and March 2024.
PGM production from Platinum Mile in Q3 2023 of 13,864 4Eoz was 13% higher year-on-year due to a 14% increase in yield as a result of higher grade coupled with improved recoveries. AISC at Platinum Mile declined by 5% year-on-year to R10,747/4Eoz (US$578/4Eoz), primarily as a result of higher 4E PGM production. Project capital spend of R64 million (US$3 million) in Q3 2023 was incurred on expenditure on the chrome extraction plant which is expected to be commissioned in December 2023 with total capital spend forecast at R130 million (US$7 million). This plant is planned to produce around 240,000 tonnes of chrome per year.
Chrome sales from the SA PGM operations for Q3 2023 of approximately 554kt were 1% lower than Q3 2022. The chrome price received increased by 28% year-on-year to US$290/tonne (Q3 2022: US$227/tonne), underpinning a 25% increase in chrome revenue to R1.0 billion (US$56 million).
Consultations regarding possible restructuring of the SA PGM operations
Subsequent to quarter end on 25 October, Sibanye-Stillwater announced that it would consult with affected employees regarding the possible restructuring of four shafts at the SA PGM operations. Two of the shafts, the Simunye shaft at the Kroondal operation and the 4B shaft at the Marikana operation are mature, with the Simunye shaft ceasing production in 2022 and the 4B shaft at the end of its operating life due to the depletion of available economic ore reserves. The remaining two shafts, the Siphumelele shaft at the Rustenburg operation and the Rowland shaft at the Marikana operation, require restructuring to achieve sustainable production and cost levels. The proposed restructuring and shaft closures could potentially affect 4,095 employees and contractors (3,500 employees and 595 contractors), including support services employees.
The full announcement can be found here: https://thevault.exchange/?get_group_doc=245/1698223380-ssw-section189-notice-SA-PGM-operations-25Oct2023.pdf.
The K4 Project
The K4 project is ahead of schedule. Underground infrastructure and mine development progressed in line with plan for the quarter with surface infrastructure on track. K4 is incorporating several innovations aimed at developing a modern flagship underground mine, such as development end and in stope lighting as well as surface noise zoning. At full production, K4 will be the largest operating shaft in the SA PGM operations with a life-of-mine in excess of fifty years. K4 produced 10,043 4Eoz in Q3 2023 (914 4Eoz in Q3 2022). Production is expected to accelerate as further ore drawpoints (boxholes) are commissioned. Project capital expenditure, primarily on ORD, was R270 million (US$15 million) in Q3 2023, 30% higher year-on-year. Project capital guidance of R920 million (US$51 million) is unchanged for 2023 with R657 million (US$36 million) spent year-to-date.
SA gold operations
The build-up of gold production from the SA gold managed operations during H2 2022 following the industrial action and lockout during H1 2022 impacted Q3 2022 production and unit costs. Normalisation of production from Q4 2022 and exposure to a higher gold price drove a significant turnaround from the managed SA gold operations during H1 2023, underlining what an important contribution SA gold operations can make to the bottom line during periods of production stability. During Q3 2023 however, the managed SA gold operations suffered two significant incidents which impacted production.
- On 12 July 2023, a fire at Driefontein 5 shaft disrupted operations at both Driefontein 1 and 5 shafts. While most of the crews at Driefontein 1 were operational by the beginning of August 2023, the Driefontein 5 shaft crews were only gradually introduced back into the working places when it was safe to enter from 27 September 2023 after the fire had been extinguished and the ventilation had cleared all noxious gasses
- In a second incident, on 30 July 2023, the Kloof 4 shaft, which had been operationally constrained by seismicity and cooling (associated with the chilled water reticulation circuit), was further impacted by an incident in the shaft caused when the ascending counterweight of the shaft conveyance encountered an unknown obstruction in the shaft, resulting in a number of ballast plates falling down the shaft, damaging the shaft infrastructure and preventing production from the 4 shaft area
Production from the SA gold operations (including DRDGOLD) for Q3 2023 of 6,148kg (197,663oz) was 3% lower compared to Q3 2022, with gold production (excluding DRDGOLD) decreasing by 1% to 4,864kg (156,381oz). The decline in production was primarily due to the impact of the incidents mentioned above as well as the closure of Beatrix 4 shaft at the end of 2022.
AISC (including DRDGOLD) of R1,232,600/kg (US$2,062/oz) was 2% higher than for Q3 2022 with AISC (excluding DRDGOLD) 3% lower at R1,301,975/kg (US$2,178/oz). The decrease in AISC (excluding DRDGOLD) was a function of a 6% increase in gold sold year-on-year, which offset inflationary cost pressures on consumables and contractor rates and annual electricity tariff increases which rose 19% higher year-on-year. In addition, ORD capital increased by 43% to R677 million (US$36 million) due to higher development rates compared with Q3 2022 when the operations were resuming after the strike and lockout.
Capital expenditure for Q3 2023 (excluding DRDGOLD) increased by 9% to R1.3 billion (US$71 million) compared to the same period in 2022 (affected by strike and lockout), with ORD increasing by 43% and corporate and project spend decreasing by 13% to R379 million (US$20 million). Project Capital mainly comprised R330 million (US$18 million) at the Burnstone project. Sustaining Capital declined by 14% to R255 million (US$14 million) mainly due to investment in lamp room upgrades at all the operations during Q3 2022 and electrical and winder upgrades which commenced during the industrial action in 2022 when the facilities and equipment were not in use.
Underground production for Q3 2023 from the Driefontein operation decreased by 11% to 1,452kg (46,683oz) compared to the same period in 2022, primarily due to the fire at 5 shaft which also impacted 1 shaft production, and reduced mineable face length at 4 Shaft following seismicity and resultant safety stoppages which are expected to persist to the end of the year. This impacted production by 132kg (4,244oz) for Q3 2023. The impact of the lost production at 5 shaft due to the fire and the impact on 1 shaft was 798kg (25,656oz) during the quarter. Production from 5 Shaft recommenced in late September 2023 on a phased basis and is forecast to build up to full production by December 2023. AISC of R1,455,137/kg (US$2,435/oz) for Q3 2023 was 20% higher as a result of 2% lower gold sold, inflationary impacts as highlighted earlier which resulted in total operating costs increasing by 12%. ORD costs increased by 63% due to higher development to increase mining flexibility and sustaining capital increased by 20% due to a change of scope in the 4 shaft pillar project (additional support work on 32/33 level tunnel and shaft infrastructure and new underground workshops), winder rope purchases and a water management project.
Underground production from the Kloof operation increased by 35% in Q3 2023 to 1,882kg (60,508oz) despite the major disruption at the Kloof 4 shaft due to the shaft incident, which impacted production by 790kg (25,399oz). Increased production from the main and 8 shafts offset lower production from 4 shaft. The underground yield increased by 25% to 5.16 g/t, with the yield for Q3 2022 diluted by the build up in production from mining areas which stood dormant for three months. Production from surface sources of 234kg (7,523oz), was 23% higher year-on-year as a result of higher grade surface areas being processed. AISC of R1,193,820/kg (US$1,997/oz) was 22% lower due to a 44% increase in gold sold year-on-year. Operating costs were effectively managed following the Kloof 4 shaft incident by requesting employees affected by the shaft incident to take annual leave, limiting stores expenditure to shaft repair work and issuing a force majeure notice to non-critical contractors. ORD increased by 41% to R246 million (US$13 million) on the back of a 55% increase in off-reef development while sustaining capital decreased by 28% to R108 million (US$6 million) due to lower spend following the Kloof 4 shaft suspension, which also resulted in reduced project capital investment.
Underground production of 933kg (29,997oz) in Q3 2023 from the Beatrix operation was 29% lower than for Q3 2022 primarily due to the closure of the Beatrix 4 shaft in Q1 2023, which resulted in approximately 193kg (6,205oz) less production relative to Q3 2022. AISC of R1,343,011/kg (US$2,247/oz) was 6% lower than for Q3 2022, due to total operating costs declining by 32% to R1.1billion (US$59 million) primarily as a result of the closure of the high cost Beatrix 4 shaft.
Tonnes milled by DRDGOLD for Q3 2023 decreased 21% year-on-year, however due to a 12% increase in grade, gold production of 1,284kg (41,282oz) was 12% lower than in Q3 2022. The decrease in the tonnes milled is as a result of load curtailment, the reclamation of final remnant and clean-up material at operating sites nearing depletion at Ergo, Driefontein 5 shaft and the Far West Gold Recoveries on the West Rand. The increase in yield is associated with higher grade remnant material that is typically encountered during the final stages of reclamation and clean up, and the reclamation of high grade sand material at Ergo. Lower tonnes milled coupled with inflationary increases in key consumables and higher electricity costs, plus increased security costs and additional machine hire costs to enable the reclamation of final remnant material resulted in operating costs per tonne increasing by 45% to R198/tonne (US$11/tonne). This resulted in higher AISC of R963,694/kg (US$1,612/oz) which increased by 26% year-on-year due to the above increase in working costs and industry wide inflationary effects. DRDGOLD project capital also increased from R53 million (US$3 million) in Q3 2022 to R152 million (US$8 million) in Q3 2023 with spending on the solar power plant.
Consultations regarding possible restructuring of the Kloof 4 shaft
On 14 September 2023, organised labour and other potentially affected stakeholders were notified that the company would be entering into consultation in terms of S189A of the Labour Relations Act (S189) regarding the possible restructuring of its SA gold operations pursuant to operational constraints and ongoing losses over an extended period at the Kloof 4 shaft. The possible restructuring of the Kloof 4 shaft could potentially affect 2,389 employees and 581 contractor employees. The consultation process is proceeding as planned.
The full announcement can be found here: https://thevault.exchange/?get_group_doc=245/1694682564-ssw-Section-189-NoticeKloof-4-Shaft14Sep2023.pdf
The Burnstone project
The development rate at Burnstone improved in Q3 2023 but the project remains behind schedule due to delays caused by the strike in 2022. Development is expected to accelerate as hoisting constraints have been alleviated with commencement of vertical shaft hoisting imminent. The project has been replanned with an increased development profile to enable additional production from areas of higher geological confidence. Steady state mining is now expected a year later than the Board approved plan for the restart of the Burnstone project in February 2021 with design optimisation done on the life-of-mine designs to improve ore handling and increase mining flexibility. Project capital guidance remains unchanged at R1.6 billion (US$90 million) with R1.1 billion (US$63 million) spent year-to-date and R330 million (US$18 million) spent in Q3 2023, 5% higher than Q3 2022.
European region
Sandouville nickel refinery
The Sandouville nickel refinery had an improved operating performance for Q3 2023 with operational stability achieved during Q3 2023 after several disruptions in Q3 2022 which extended into H1 2023. In Q3 2023, the Sandouville nickel refinery produced 2,352 tonnes of nickel equivalent production, comprising 1,925 tonnes of nickel metal, 92% higher than for Q3 2022 and 427 tonnes of nickel salts (650 tonnes in Q3 2022) at a nickel equivalent sustaining cost of US$31,514/tNi (R585,853/tNi), 4% higher than for Q3 2022.
Operational issues at the cathode unit which impacted H1 2023, have been resolved resulting in production stabilising during Q3 2023. Overall, the plant is now stable, both from process and reliability points of view, with nickel recovery improving by 4% to 98.8%. Production, however, was impacted by heavy rainfall in Q3 2023.
The more stable operational performance has led to lower variable costs per tonne of nickel produced, with lower specific consumption of energy and reagents. While input prices have decreased recently, they remain elevated due to global uncertainty and gas prices remain elevated due to the Russia Ukraine war. Sales were impacted by lower nickel prices due to a general oversupply of nickel cathode and a slowdown of the plating industry that led to lower premiums for Q3 2023.
In order to restore profitability, a new innovative alternative to the current process is being explored. The Sandouville team is currently assessing its commercial and technical feasibility. Further details on this alternative will be available during Q1 2024. Sibanye-Stillwater continues with the deployment of its strategy in France, advancing studies on three complementary processes:
- PGM autocatalyst recycling using European feedstocks (study results due in Q1 2024)
- Producing battery grade nickel sulphate
- Battery metals recycling
Further announcements will be made on these developments as the studies progress to the next phases.
Keliber lithium project
The Keliber lithium project progressed significantly during Q3 2023. On 6 October 2023, Sibanye-Stillwater announced Board approval for the construction of the concentrator and the development of the Syväjärvi open pit mine in Päiväneva. Delivery of ore from the Syväjärvi open pit mine will be timed to coincide with the commissioning of the concentrator. Higher capital expenditures will now be incurred to meet the environmental permit requirements. The capital expenditure for the concentrator is now forecasted at €230 million (R4.5 billion), €10 million (R195 million) higher than the previous estimate.
In addition capital expenditure for the Keliber lithium refinery increased by €59 million (R1.2 billion) to €418 million (R8.2 billion) due to changes to the effluent water treatment process at the Keliber lithium refinery. The amended technology was added into the flowsheet to ensure compliance with environmental permits, which will also result in increased recoveries. Despite the higher capital requirements, the adjustment has not had a negative impact on the net present value of the project due to the positive impact of the expected recoveries. The updated aggregated project capital for the Keliber project is estimated at €656 million (R12.8 billion) (2023 real terms) including contingencies (previously €588 million in 2022 real terms).
Further progress in Q3 2023:
- Recruitments according to plan with a headcount of 67 at the end of September with potential to grow the team by over 20 professionals by year end. Overall headcount is planned to grow to 200 by the end of 2024
- Active cooperation and participation with the local community and relevant stakeholders including holding a public event in Kaustinen, sponsoring local sport clubs and cultural events such as Kaustinen folk music festival, cooperation with local schools continued with presentations and negotiations on future training and job opportunities, and public road maintenance and transportation discussed at the Regional Councils' Traffic Day
- In Q3 2023, 28 diamond drill holes totalling 5,407 metres were completed at the Rapasaari, Syväjärvi and Leviäkangas East target areas with two drill rigs. The best assayed intercepts are all associated with the Tuoreetsaaret deposit including 86.35 m @ 1.08 % Li2O
- The update of the Mineral Resources estimate continued in Q3 2023. The Mineral Resource estimates of seven deposits - Syväjärvi, Rapasaari, Länttä, Outovesi, Emmes, Tuoreetsaaret and Leviäkangas - will be updated, and the final results are due in 2024. As a part of regional lithium exploration, seasonal boulder mapping and till sampling continued in Q3 2023
- Debt funding for the balance of the project is advancing with the target facility increased from €300 million to €500 million
- Project capital expenditure for 2023 is lower than initially guided (see update under Operating guidance below) with the delta of the capital expenditure moving to 2024 due to the later than estimated commencement of the concentrator during 2023
Australian region
Century zinc retreatment operation
Sibanye-Stillwater acquired full ownership of New Century Resources Limited during H1 2023, enhancing the Group's exposure to tailings
retreatment and complementing our existing investment in DRDGOLD. The integration of the Australian regional structures and assets into Sibanye-Stillwater is progressing well.
Production from the Century operation recovered strongly from the flood impacted H1 2023. For Q3 2023, the Century operation produced 25kt of zinc metal (payable), an increase from the 23kt produced in Q2 2023. AISC for Q3 2023 of US$1,753/tZn (R32,587/tZn) was 13% lower than for Q2 2023, resulting in a significant financial turnaround, with the Century operation recording a R53 million (US$3 million) adjusted EBITDA profit compared with an R433 million (US$23 million) loss for the previous quarter (Q2 2023). The Century operation invested US$2 million (R34 million) on capital expenditure in Q3 2023.
OPERATING GUIDANCE FOR 2023*
Mined 2E PGM production at the US PGM operations is forecast to be between 420,000 2Eoz and 430,000 2Eoz, with AISC between US$1,750/2Eoz and US$1,825/2Eoz (R31,500/2Eoz to R32,850/2Eoz). Capital expenditure is forecast to be between US$320 million and US$340 million (R5.76 billion to R6.12 billion), including approximately US$35 million (R630 million) project Capital.
3E PGM production from the US PGM recycling operations is forecast to between 350,000 3Eoz and 400,000 3Eoz fed for the year. Capital expenditure is forecast to be about US$1.4 million (R25 million).
Forecast 4E PGM production from the SA PGM operations for 2023 remains unchanged at between 1.7 million 4Eoz and 1.8 million 4Eoz including third party PoC, with AISC between R20,800/4Eoz and R21,800/4Eoz (US$1,156/4Eoz to US$1,211/4Eoz) - excluding the cost of third party PoC. Capital expenditure is forecast at R5.4 billion (US$300 million) for the year, including project Capital of R920 million (US$51 million) for the K4 project.
Gold production from the managed SA gold operations (excluding DRDGOLD) for 2023 is forecast at between 19,500kg (625koz) and 20,500kg (660koz). AISC is still forecast to be between R1,190,000/kg and R1,290,000/kg (US$2,056/oz to US$2,230/oz) due to lower production as a result of the incidents mentioned above. Capital expenditure is forecast at R5.4 billion (US$300 million), including R1.6 billion (US$90 million) of project Capital expenditure for the Burnstone project.
Production from the Sandouville nickel refinery is forecast at between 7.0 kilotonnes to 7.5 kilotonnes of nickel equivalent product (Ni) at a nickel equivalent AISC of between €33,715/tNi and €34,588/tNi (R657,000/tNi to R675,000/tNi) with capital expenditure of €14 million (R273million).
The capital expenditure forecast for the Keliber lithium project for 2023 has been reduced from €231 million (R4.5 billion) to €130 million (R2.3 billion). With the commencement of the construction of the concentrator in Q4 2023, most of the capex budgeted for 2023, will now occur in 2024.
* The guidance has been translated where relevant at an average exchange rate of R18.00/US$ and R19.50/€
NEAL FRONEMAN
CHIEF EXECUTIVE OFFICER
SALIENT FEATURES AND COST BENCHMARKS - QUARTERS
US and SA PGM operations
US and SA PGM operations1
US PGM operations
Total SA PGM operations1
Rustenburg
Marikana1
Kroondal
Plat Mile
Mimosa
Under-
ground2
Total
Under-
ground
Surface
Under-
ground
Surface
Under-
ground
Surface
Attribu-table
Surface
Attribu-table
Production
Tonnes milled/treated
kt
Sep 2023
9,711
316
9,394
4,457
4,937
1,643
1,420
1,709
869
755
2,649
351
Jun 2023
9,469
287
9,182
4,210
4,972
1,572
1,390
1,557
918
727
2,665
354
Sep 2022
9,625
241
9,383
4,303
5,081
1,666
1,418
1,515
927
782
2,736
340
Plant head grade
g/t
Sep 2023
2.33
11.59
2.02
3.32
0.84
3.46
1.01
3.61
0.95
2.34
0.72
3.36
Jun 2023
2.28
12.48
1.96
3.29
0.83
3.38
1.03
3.67
0.95
2.22
0.69
3.47
Sep 2022
2.21
12.23
1.96
3.30
0.82
3.34
1.03
3.70
0.87
2.33
0.69
3.52
Plant recoveries
%
Sep 2023
76.64
90.10
74.01
85.36
34.07
86.43
52.16
86.47
28.32
83.85
22.61
76.62
Jun 2023
75.62
91.31
72.48
85.53
29.04
86.49
41.86
87.03
25.15
81.56
20.67
78.30
Sep 2022
75.59
89.25
73.19
85.09
32.61
86.52
52.47
87.06
25.94
82.17
20.30
74.44
g/t
Sep 2023
1.78
10.44
1.49
2.83
0.29
2.99
0.53
3.12
0.27
1.96
0.16
2.57
Jun 2023
1.72
11.40
1.42
2.81
0.24
2.92
0.43
3.19
0.24
1.81
0.14
2.72
Sep 2022
1.67
10.92
1.43
2.81
0.27
2.89
0.54
3.22
0.23
1.91
0.14
2.62
PGM production3
4Eoz - 2Eoz
Sep 2023
557,106
105,546
451,560
406,135
45,425
157,977
24,045
171,498
7,516
47,600
13,864
29,060
Jun 2023
524,214
104,823
419,391
380,861
38,530
147,723
19,264
159,863
7,049
42,329
12,217
30,946
Sep 2022
518,032
85,889
432,143
388,460
43,683
154,797
24,641
156,873
6,723
48,120
12,319
28,670
PGM sold4
4Eoz - 2Eoz
Sep 2023
549,696
124,882
424,814
141,322
15,060
179,811
47,600
13,864
27,157
Jun 2023
508,429
102,856
405,573
114,826
16,561
187,994
42,329
12,217
31,646
Sep 2022
471,994
69,534
402,460
137,246
16,578
160,115
48,120
12,319
28,082
Price and costs5
Average PGM basket price6
R/4Eoz - R/2Eoz
Sep 2023
23,933
22,122
24,479
24,670
23,050
24,481
24,968
23,044
23,343
Jun 2023
30,313
25,378
31,689
32,269
27,153
31,741
32,564
27,980
27,972
Sep 2022
40,485
30,878
42,269
43,331
34,278
42,033
44,972
33,714
33,412
Average PGM basket price6
US$/4Eoz - US$/2Eoz
Sep 2023
1,287
1,190
1,317
1,327
1,240
1,317
1,343
1,240
1,256
Jun 2023
1,624
1,360
1,698
1,729
1,455
1,701
1,745
1,499
1,499
Sep 2022
2,374
1,811
2,479
2,541
2,010
2,465
2,638
1,977
1,960
Operating cost7,9
R/t
Sep 2023
1,226
7,140
1,019
2,021
363
1,654
1,244
66
1,812
Jun 2023
1,123
6,333
953
2,035
245
1,560
1,186
59
1,730
Sep 2022
1,043
7,504
871
1,764
279
1,459
1,049
58
1,493
Operating cost7
US$/t
Sep 2023
66
384
55
109
20
89
67
4
97
Jun 2023
60
339
51
109
13
84
64
3
93
Sep 2022
61
440
51
103
16
86
62
3
88
Operating cost7
R/4Eoz - R/2Eoz
Sep 2023
21,723
21,384
21,808
21,022
21,460
23,814
19,727
12,623
21,886
Jun 2023
20,747
17,353
21,663
21,649
17,650
23,120
20,364
12,769
19,809
Sep 2022
19,793
21,085
19,518
18,986
16,071
21,767
17,041
12,907
17,719
Operating cost7
US$/4Eoz - US$/2Eoz
Sep 2023
1,169
1,150
1,173
1,131
1,154
1,281
1,061
679
1,177
Jun 2023
1,112
930
1,161
1,160
946
1,239
1,091
684
1,062
Sep 2022
1,161
1,237
1,145
1,114
943
1,277
999
757
1,039
All-in sustaining cost8,9
R/4Eoz - R/2Eoz
Sep 2023
23,210
35,738
20,080
18,701
22,607
18,550
10,747
25,258
Jun 2023
21,724
30,280
19,416
18,121
21,574
18,403
10,886
22,329
Sep 2022
21,271
30,947
19,211
18,435
21,785
15,399
11,283
21,032
All-in sustaining cost8
US$/4Eoz - US$/2Eoz
Sep 2023
1,249
1,922
1,080
1,006
1,216
998
578
1,359
Jun 2023
1,164
1,623
1,041
971
1,156
986
583
1,197
Sep 2022
1,248
1,815
1,127
1,081
1,278
903
662
1,234
All-in cost8,9
R/4Eoz - R/2Eoz
Sep 2023
24,223
37,642
20,871
18,701
24,115
18,550
15,364
25,258
Jun 2023
22,710
32,235
20,139
18,121
22,940
18,805
13,833
22,329
Sep 2022
22,582
36,000
19,726
18,441
23,051
15,399
11,283
21,032
All-in cost8
US$/4Eoz - US$/2Eoz
Sep 2023
1,303
2,025
1,123
1,006
1,297
998
826
1,359
Jun 2023
1,217
1,728
1,079
971
1,229
1,008
741
1,197
Sep 2022
1,324
2,111
1,157
1,082
1,352
903
662
1,234
Capital expenditure5
Ore reserve development
Rm
Sep 2023
1,671
1,049
622
149
473
—
—
—
Jun 2023
1,749
1,050
699
190
509
—
—
—
Sep 2022
1,313
723
590
194
396
—
—
—
Sustaining capital
Rm
Sep 2023
1,086
602
484
154
276
59
(5)
266
Jun 2023
853
418
435
145
229
64
(3)
273
Sep 2022
758
293
465
140
242
80
3
258
Corporate and projects
Rm
Sep 2023
535
201
334
—
270
—
64
—
Jun 2023
482
205
277
—
224
17
36
—
Sep 2022
642
434
208
1
207
—
—
—
Total capital expenditure
Rm
Sep 2023
3,292
1,852
1,440
303
1,019
59
59
266
Jun 2023
3,084
1,673
1,411
335
962
81
33
273
Sep 2022
2,713
1,450
1,263
335
845
80
3
258
Total capital expenditure
US$m
Sep 2023
177
100
77
16
55
3
3
14
Jun 2023
165
90
76
18
52
4
2
15
Sep 2022
159
85
74
20
50
5
—
15
Average exchange rate for the quarters ended 30 September 2023, 30 June 2023 and 30 September 2022 was R18.59/US$, R18.66/US$ and R17.05/US$, respectively
Figures may not add as they are rounded independently
1 The US and SA PGM operations, Total SA PGM operation and Marikana excludes the production and costs associated with the purchase of concentrate (PoC) from third parties. For a reconciliation of the Operating cost, AISC and AIC excluding third party PoC, refer to “Reconciliation of operating cost excluding third party PoC for US and SA PGM operations, Total SA PGM operations and Marikana - Quarters” and “Reconciliation of AISC and AIC excluding third party PoC for US and SA PGM operations, Total SA PGM operations and Marikana – Quarters”
2 The US PGM operations’ underground production is converted to metric tonnes and kilograms, and performance is translated into rand. In addition to the US PGM operations’ underground production, the operation treats recycling material which is excluded from the statistics shown above and is detailed in the PGM recycling table below
3 Production per product – see prill split in the table below
4 PGM sold includes the third party PoC ounces sold
5 The US and SA PGM operations and Total SA PGM operations’ unit cost benchmarks and capital expenditure exclude the financial results of Mimosa, which is equity accounted and excluded from revenue and cost of sales
6 The average PGM basket price is the PGM revenue per 4E/2E ounce, prior to a purchase of concentrate adjustment
7 Operating cost is the average cost of production and operating cost per tonne is calculated by dividing the cost of sales, before amortisation and depreciation and change in inventory in a period by the tonnes milled/treated in the same period, and operating cost per ounce (and kilogram) is calculated by dividing the cost of sales, before amortisation and depreciation and change in inventory in a period, by the PGM produced in the same period. For a reconciliation of unit operating cost, see “Unit operating cost - Quarters"
8 All-in cost is calculated in accordance with the World Gold Council guidance. All-in cost excludes income tax, costs associated with merger and acquisition activities, working capital, impairments, financing costs, one-time severance charges and items needed to normalise earnings. All-in cost is made up of All-in sustaining cost, being the cost to sustain current operations, given as a sub-total in the All-in cost calculation, together with corporate and major capital expenditure associated with growth. All-in sustaining cost per ounce (and kilogram) and All-in cost per ounce (and kilogram) are calculated by dividing the All-in sustaining cost and All-in cost, respectively, in a period by the total 4E/2E PGM produced in the same period. For a reconciliation of cost of sales, before amortisation and depreciation to All-in cost, see “All-in costs - Quarters”
9 Operating cost, all-in sustaining costs and all-in costs, are not measures of performance under IFRS. As a result, such measures should not be considered in isolation or as alternatives to any other measure of financial performance presented in accordance with IFRS. Non-IFRS measures are the responsibility of the Board
Mining - PGM Prill split including third party PoC, excluding recycling operations
US AND SA PGM OPERATIONS
TOTAL SA PGM OPERATIONS
US PGM OPERATIONS
Sep 2023
Jun 2023
Sep 2022
Sep 2023
Jun 2023
Sep 2022
Sep 2023
Jun 2023
Sep 2022
%
%
%
%
%
%
%
%
%
Platinum
306,959
53%
288,639
52%
286,103
54%
282,763
59%
265,168
60%
265,975
59%
24,196
23%
23,471
22%
20,128
23%
Palladium
223,255
38%
213,734
39%
200,137
37%
141,905
30%
132,382
30%
134,376
30%
81,350
77%
81,352
78%
65,761
77%
Rhodium
42,851
7%
39,649
7%
40,296
8%
42,851
9%
39,649
9%
40,296
9%
Gold
8,036
1%
7,825
1%
8,216
2%
8,036
2%
7,825
2%
8,216
2%
PGM production 4E/2E
581,101
100%
549,847
100%
534,752
100%
475,555
100%
445,024
100%
448,863
100%
105,546
100%
104,823
100%
85,889
100%
Ruthenium
67,800
63,158
64,192
67,800
63,158
64,192
Iridium
16,836
16,016
16,034
16,836
16,016
16,034
Total 6E/2E
665,737
629,021
614,978
560,191
524,198
529,089
105,546
104,823
85,889
Figures may not add as they are rounded independently
US PGM Recycling
Unit
Sep 2023
Jun 2023
Sep 2022
Average catalyst fed/day
Tonne
9.5
11.2
17.7
Total processed
Tonne
873
1,014
1,630
Tolled
Tonne
—
—
—
Purchased
Tonne
873
1,014
1,630
PGM fed
3Eoz
72,434
83,608
141,560
PGM sold
3Eoz
77,679
74,041
162,659
PGM tolled returned
3Eoz
2,091
2,520
4,715
SALIENT FEATURES AND COST BENCHMARKS - QUARTERS (continued)
SA gold operations
SA OPERATIONS
Total SA gold
Driefontein
Kloof
Beatrix
Cooke
DRDGOLD
Total
Under-
ground
Surface
Under-
ground
Surface
Under-
ground
Surface
Under-
ground
Surface
Surface
Surface
Production
Tonnes milled/treated
kt
Sep 2023
8,245
966
7,279
251
13
365
481
350
33
1,121
5,632
Jun 2023
7,670
1,120
6,550
357
23
389
331
374
115
1,110
4,972
Sep 2022
10,237
1,117
9,120
290
123
336
620
490
18
1,202
7,157
g/t
Sep 2023
0.75
4.42
0.26
5.77
3.37
5.16
0.49
2.66
0.21
0.28
0.23
Jun 2023
0.88
4.50
0.26
5.71
0.65
4.97
0.36
2.86
0.21
0.28
0.25
Sep 2022
0.62
3.90
0.22
5.65
0.41
4.14
0.31
2.69
—
0.27
0.20
Gold produced
kg
Sep 2023
6,148
4,267
1,881
1,452
43
1,882
234
933
7
313
1,284
Jun 2023
6,733
5,045
1,688
2,040
15
1,935
119
1,070
24
308
1,222
Sep 2022
6,366
4,354
2,012
1,640
50
1,393
190
1,321
—
319
1,453
oz
Sep 2023
197,663
137,187
60,476
46,683
1,382
60,508
7,523
29,997
225
10,063
41,282
Jun 2023
216,471
162,200
54,270
65,588
482
62,212
3,826
34,401
772
9,902
39,288
Sep 2022
204,672
139,984
64,687
52,727
1,608
44,786
6,109
42,471
—
10,256
46,715
Gold sold
kg
Sep 2023
6,178
4,349
1,829
1,495
43
1,931
205
923
7
307
1,267
Jun 2023
6,801
5,107
1,694
2,105
18
1,917
122
1,085
24
308
1,222
Sep 2022
6,070
4,095
1,975
1,524
48
1,314
174
1,257
—
311
1,442
oz
Sep 2023
198,627
139,824
58,804
48,065
1,382
62,083
6,591
29,675
225
9,870
40,735
Jun 2023
218,657
164,194
54,463
67,677
579
61,633
3,922
34,884
772
9,902
39,288
Sep 2022
195,155
131,657
63,498
48,998
1,543
42,246
5,594
40,413
—
9,999
46,361
Price and costs
Gold price received
R/kg
Sep 2023
1,153,448
1,153,446
1,153,090
1,152,688
1,153,094
1,154,696
Jun 2023
1,184,973
1,182,760
1,185,875
1,186,655
1,181,818
1,186,579
Sep 2022
944,316
944,020
944,220
942,721
945,338
945,908
Gold price received
US$/oz
Sep 2023
1,930
1,930
1,929
1,929
1,929
1,932
Jun 2023
1,975
1,971
1,977
1,978
1,970
1,978
Sep 2022
1,723
1,722
1,722
1,720
1,725
1,726
Operating cost1,3
R/t
Sep 2023
784
4,953
230
6,948
783
5,277
397
3,184
429
308
198
Jun 2023
791
4,081
229
4,616
478
4,964
384
2,650
279
298
200
Sep 2022
645
4,573
163
5,623
359
5,388
305
3,393
1,222
214
137
US$/t
Sep 2023
42
266
12
374
42
284
21
171
23
17
11
Jun 2023
42
219
12
247
26
266
21
142
15
16
11
Sep 2022
38
268
10
330
21
316
18
199
72
13
8
R/kg
Sep 2023
1,051,074
1,121,865
890,484
1,203,168
232,558
1,022,848
816,239
1,195,070
2,000,000
1,102,236
868,380
Jun 2023
901,084
905,847
886,848
808,333
733,333
997,933
1,067,227
925,234
1,333,333
1,074,675
815,057
Sep 2022
1,036,601
1,173,404
740,557
995,732
880,000
1,300,790
994,737
1,259,652
—
805,643
673,090
US$/oz
Sep 2023
1,759
1,877
1,490
2,013
389
1,711
1,366
2,000
3,346
1,844
1,453
Jun 2023
1,502
1,510
1,478
1,347
1,222
1,663
1,779
1,542
2,222
1,791
1,359
Sep 2022
1,891
2,141
1,351
1,816
1,605
2,373
1,815
2,298
—
1,470
1,228
All-in sustaining cost2,3
R/kg
Sep 2023
1,232,600
1,455,137
1,193,820
1,343,011
1,169,381
963,694
Jun 2023
1,080,135
1,071,597
1,190,289
1,064,022
1,120,130
910,802
Sep 2022
1,210,049
1,215,013
1,527,554
1,424,025
861,736
765,603
All-in sustaining cost2
US$/oz
Sep 2023
2,062
2,435
1,997
2,247
1,957
1,612
Jun 2023
1,800
1,786
1,984
1,774
1,867
1,518
Sep 2022
2,207
2,216
2,787
2,598
1,572
1,397
All-in cost2,3
R/kg
Sep 2023
1,319,197
1,455,137
1,213,483
1,343,011
1,169,381
1,083,662
Jun 2023
1,197,324
1,071,597
1,207,945
1,064,022
1,120,130
1,129,296
Sep 2022
1,293,245
1,215,013
1,598,118
1,424,025
861,736
802,358
All-in cost2
US$/oz
Sep 2023
2,207
2,435
2,030
2,247
1,957
1,813
Jun 2023
1,996
1,786
2,013
1,774
1,867
1,882
Sep 2022
2,359
2,216
2,915
2,598
1,572
1,464
Capital expenditure
Ore reserve development
Rm
Sep 2023
677
339
246
92
—
—
Jun 2023
745
411
249
85
—
—
Sep 2022
472
208
174
90
—
—
Sustaining capital
Rm
Sep 2023
367
131
108
16
—
112
Jun 2023
362
110
109
27
—
115
Sep 2022
409
109
150
37
—
113
Corporate and projects4
Rm
Sep 2023
531
—
42
—
—
152
Jun 2023
760
—
36
—
—
267
Sep 2022
488
—
105
—
—
53
Total capital expenditure
Rm
Sep 2023
1,576
470
396
108
—
264
Jun 2023
1,867
521
394
112
—
382
Sep 2022
1,369
317
429
127
—
166
Total capital expenditure
US$m
Sep 2023
85
25
21
6
—
14
Jun 2023
100
28
21
6
—
20
Sep 2022
80
19
25
7
—
10
Average exchange rates for the quarters ended 30 September 2023, 30 June 2023 and 30 September 2022 was R18.59/US$, R18.66/US$ and R17.05/US$, respectively
Figures may not add as they are rounded independently
1 Operating cost is the average cost of production and operating cost per tonne is calculated by dividing the cost of sales, before amortisation and depreciation and change in inventory in a period by the tonnes milled/treated in the same period, and operating cost per kilogram (and ounce) is calculated by dividing the cost of sales, before amortisation and depreciation and change in inventory in a period by the gold produced in the same period
2 All-in cost is calculated in accordance with the World Gold Council guidance. All-in cost excludes income tax, costs associated with merger and acquisition activities, working capital, impairments, financing costs, one time severance charges and items needed to normalise earnings. All-in cost is made up of All-in sustaining cost, being the cost to sustain current operations, given as a sub-total in the All-in cost calculation, together with corporate and major capital expenditure associated with growth. All-in sustaining cost per kilogram (and ounce) and All-in cost per kilogram (and ounce) are calculated by dividing the All-in sustaining cost and All-in cost, respectively, in a period by the total gold sold over the same period. For a reconciliation of cost of sales before amortisation and depreciation to All-in cost, see “All-in costs – Quarters”
3 Operating cost, all-in sustaining costs and all-in costs, are not measures of performance under IFRS. As a result, such measures should not be considered in isolation or as alternatives to any other measure of financial performance presented in accordance with IFRS. Non-IFRS measures are the responsibility of the Board
4 Corporate project expenditure for the quarters ended 30 September 2023, 30 June 2023 and 30 September 2022 was R337 million (US$18 million), R457 million (US$24 million) and R330 million (US$19 million), respectively, the majority of which related to the Burnstone project
SALIENT FEATURES AND COST BENCHMARKS - QUARTERS (continued)
European operations
Sandouville nickel refinery
Metals split
Sep 2023
Jun 2023
Sep 2022
Volumes produced (tonnes)
Nickel salts1
427
18%
359
19%
650
39%
Nickel metal
1,925
82%
1,525
81%
1,003
61%
Total Nickel Production tNi
2,352
100%
1,884
100%
1,653
100%
Nickel cakes2
103
97
68
Cobalt chloride (CoCl2)3
46
30
37
Ferric chloride (FeCl3)3
409
348
321
Volumes sales (tonnes)
Nickel salts1
287
15%
364
18%
529
31%
Nickel metal
1,664
85%
1,714
82%
1,177
69%
Total Nickel Sold tNi
1,951
100%
2,078
100%
1,706
100%
Nickel cakes2
—
2
Cobalt chloride (CoCl2)3
41
34
51
Ferric chloride (FeCl3)3
409
348
321
Nickel equivalent basket price
Unit
Sep 2023
Jun 2023
Sep 2022
Nickel equivalent average basket price4
R/tNi
403,895
481,713
384,525
US$/tNi
21,726
25,815
22,553
Nickel equivalent sustaining cost
Rm
Sep 2023
Jun 2023
Sep 2022
Cost of sales, before amortisation and depreciation
1,100
1,407
882
Share-based payments
(7)
11
—
Rehabilitation interest and amortisation
2
1
1
Leases
5
5
15
Sustaining capital expenditure
82
51
23
Less: By-product credit
(39)
(65)
(43)
Nickel equivalent sustaining cost5
1,143
1,410
878
Nickel Products sold
tNi
1,951
2,078
1,706
Nickel equivalent sustaining cost5
R/tNi
585,853
678,537
514,654
US$/tNi
31,514
36,363
30,185
Nickel recovery yield6
%
98.82 %
97.46 %
95.04 %
Average exchange rates for the quarters ended 30 September 2023, 30 June 2023 and 30 September 2022 was R18.59/US$, R18.66/US$ and R17.05/US$, respectively
Figures may not add as they are rounded independently
1 Nickel salts consist of anhydrous nickel, nickel chloride low sodium, nickel chloride standard, nickel carbonate and nickel chloride solution
2 Nickel cakes occur during the processing of nickel matte and are recycled back into the nickel refining process
3 Cobalt chloride and ferric chloride are obtained from nickel matte through a different refining process on an order basis
4 The Nickel equivalent average basket price per tonne is the total nickel revenue adjusted for other income less non-product sales divided by the total nickel equivalent tonnes sold
5 The Nickel equivalent sustaining cost, is the cost to sustain current operations. Nickel equivalent sustaining cost per tonne nickel is calculated by dividing the Nickel equivalent sustaining cost, in a period by the total nickel products sold over the same period. Nickel equivalent sustaining cost and Nickel equivalent sustaining costs per tonne are intended to provide additional information only, do not have any standardised meaning prescribed by IFRS and should not be considered in isolation or as alternatives to cost of sales, profit before tax, profit for the year, cash from operating activities or any other measure of financial performance presented in accordance with IFRS. Nickel equivalent sustaining cost and Nickel equivalent sustaining costs per tonne as presented in this document may not be comparable to other similarly titled measures of performance of other companies. Other companies may calculate these measures differently as a result of differences in the underlying accounting principles, policies applied and accounting frameworks such as in US GAAP. Differences may also arise related to definitional differences of sustaining versus development capital activities based upon each company’s internal policies. Non-IFRS measures such as Nickel equivalent sustaining cost and Nickel equivalent sustaining costs per tonne are the responsibility of the Group's Board of Directors and because of its nature, should not be considered as a representation of financial performance under IFRS
6 Nickel recovery yield is the percentage of total nickel recovered from the matte relative to the nickel contained in the matte received
SALIENT FEATURES AND COST BENCHMARKS - QUARTERS (continued)
Australian operations
Century zinc retreatment operation1
Production
Ore mined and processed
kt
Sep 2023
1,973
Jun 2023
1,949
Processing feed grade
%
Sep 2023
3.16
Jun 2023
3.13
Plant recoveries
%
Sep 2023
48.91
Jun 2023
45.86
Concentrate produced2
kt
Sep 2023
67
Jun 2023
62
Concentrate zinc grade3
%
Sep 2023
45.31
Jun 2023
45.02
Metal produced (zinc in concentrate)4
kt
Sep 2023
30
Jun 2023
28
Zinc metal produced (payable)5
kt
Sep 2023
25
Jun 2023
23
Zinc sold6
kt
Sep 2023
28
Jun 2023
29
Zinc sold (payable)7
kt
Sep 2023
23
Jun 2023
23
Price and costs
Average LME price
US$/tZn
Sep 2023
1,597
Jun 2023
1,601
Average equivalent zinc concentrate price8
R/tZn
Sep 2023
31,747
Jun 2023
28,832
US$/tZn
Sep 2023
1,708
Jun 2023
1,545
All-in sustaining cost9,10
R/tZn
Sep 2023
32,587
Jun 2023
37,562
US$/tZn
Sep 2023
1,753
Jun 2023
2,013
All-in cost9,10
R/tZn
Sep 2023
34,937
Jun 2023
41,692
US$/tZn
Sep 2023
1,879
Jun 2023
2,234
Average exchange rates for the quarters ended 30 September 2023 and 30 June 2023 was R18.59/US$ and R18.66/US$, respectively
Figures may not add as they are rounded independently
1 Century is a leading tailings management and rehabilitation company that currently owns and operates the Century zinc tailings retreatment operation in Queensland, Australia. Century was acquired by the Group on 22 February 2023
2 Concentrate produced is the dry concentrate which has been processed that contains zinc, silver and waste material
3 Concentrate zinc grade is the percentage of zinc contained in the concentrate produced
4 Metal produced (zinc in concentrate) is the zinc metal contained in the concentrate produced
5 Zinc metal produced (payable) is the payable quantity of zinc metal produced after applying smelter content deductions
6 Zinc sold is the zinc metal contained in the concentrate sold
7 Zinc sold (payable) is the payable quantity of zinc metal sold after applying smelter content deductions
5 Average equivalent zinc concentrate price is the total zinc sales revenue recognised at the price expected to be received excluding the fair value adjustments divided by the payable zinc metal sold
6 All-in cost is calculated in accordance with the World Gold Council guidance. All-in cost excludes income tax, costs associated with merger and acquisition activities, working capital, impairments, financing costs, one-time severance charges and items needed to normalise earnings. All-in cost is made up of All-in sustaining cost, being the cost to sustain current operations, given as a sub-total in the All-in cost calculation, together with corporate and major capital expenditure associated with growth. All-in sustaining cost per tonne and All-in cost per tonne are calculated by dividing the All-in sustaining cost and All-in cost, respectively, in a period by the total tonnes of zinc metal produced (payable) in the same period. For a reconciliation of cost of sales, before amortisation and depreciation to All-in cost, see “All-in costs - Quarters”
7 All-in sustaining costs and all-in costs, are not measures of performance under IFRS. As a result, such measures should not be considered in isolation or as alternatives to any other measure of financial performance presented in accordance with IFRS. Non-IFRS measures are the responsibility of the Board
ALL-IN COSTS - QUARTERS
US and SA PGM operations
Figures are in rand millions unless otherwise stated
US and SA PGM operations1
US PGM operations2
Total SA PGM operations1
Rustenburg
Marikana1
Kroondal
Plat Mile
Mimosa
Corporate
Cost of sales, before amortisation and depreciation3
Sep 2023
11,457
2,510
8,947
3,555
4,275
942
175
640
(640)
Jun 2023
11,384
2,032
9,352
3,456
4,875
865
156
678
(678)
Sep 2022
9,416
1,413
8,003
3,218
3,758
868
159
511
(511)
Royalties
Sep 2023
84
—
84
70
12
2
—
29
(29)
Jun 2023
250
—
250
167
82
1
—
43
(43)
Sep 2022
374
—
374
258
112
4
—
26
(26)
Carbon tax
Sep 2023
—
—
—
—
—
—
—
—
—
Jun 2023
—
—
—
—
—
—
—
—
—
Sep 2022
(1)
—
(1)
—
—
(1)
—
—
—
Community costs
Sep 2023
21
—
21
—
21
—
—
—
—
Jun 2023
20
—
20
—
20
—
—
—
—
Sep 2022
22
—
22
—
22
—
—
—
—
Inventory change
Sep 2023
912
(253)
1,165
462
703
—
—
(4)
4
Jun 2023
74
(213)
287
367
(80)
—
—
(65)
65
Sep 2022
1,462
398
1,064
375
689
—
—
(3)
3
Share-based payments4
Sep 2023
78
22
56
20
24
11
—
—
—
Jun 2023
74
47
27
11
16
(3)
—
—
—
Sep 2022
54
12
42
16
19
7
—
—
—
Rehabilitation interest and amortisation5
Sep 2023
46
21
25
(6)
14
17
—
2
(2)
Jun 2023
56
22
34
(2)
18
18
—
1
(1)
Sep 2022
35
13
22
(8)
10
20
—
1
(1)
Leases
Sep 2023
18
1
17
6
10
1
—
—
—
Jun 2023
17
1
16
6
9
1
—
—
—
Sep 2022
16
2
14
3
10
1
—
—
—
Ore reserve development
Sep 2023
1,671
1,049
622
149
473
—
—
—
—
Jun 2023
1,749
1,050
699
190
509
—
—
—
—
Sep 2022
1,313
723
590
194
396
—
—
—
—
Sustaining capital expenditure
Sep 2023
1,086
602
484
154
276
59
(5)
266
(266)
Jun 2023
853
418
435
145
229
64
(3)
273
(273)
Sep 2022
758
293
465
140
242
80
3
258
(258)
Less: By-product credit
Sep 2023
(2,658)
(180)
(2,478)
(1,006)
(1,302)
(149)
(21)
(199)
199
Jun 2023
(3,112)
(183)
(2,929)
(1,314)
(1,428)
(167)
(20)
(239)
239
Sep 2022
(2,327)
(196)
(2,131)
(888)
(981)
(238)
(23)
(190)
189
Total All-in-sustaining costs6
Sep 2023
12,715
3,772
8,943
3,404
4,506
883
149
734
(734)
Jun 2023
11,365
3,174
8,191
3,026
4,250
779
133
691
(691)
Sep 2022
11,122
2,658
8,464
3,308
4,277
741
139
603
(604)
Plus: Corporate cost, growth and capital expenditure
Sep 2023
535
201
334
—
270
—
64
—
—
Jun 2023
486
205
281
—
228
17
36
—
—
Sep 2022
642
434
208
1
207
—
—
—
—
Total All-in-costs6
Sep 2023
13,250
3,973
9,277
3,404
4,776
883
213
734
(734)
Jun 2023
11,851
3,379
8,472
3,026
4,478
796
169
691
(691)
Sep 2022
11,764
3,092
8,672
3,309
4,484
741
139
603
(604)
PGM production
4Eoz - 2Eoz
Sep 2023
581,101
105,546
475,555
182,022
203,009
47,600
13,864
29,060
—
Jun 2023
549,847
104,823
445,024
166,987
192,545
42,329
12,217
30,946
—
Sep 2022
534,752
85,889
448,863
179,438
180,316
48,120
12,319
28,670
—
kg
Sep 2023
18,074
3,283
14,791
5,662
6,314
1,481
431
904
—
Jun 2023
17,102
3,260
13,842
5,194
5,989
1,317
380
963
—
Sep 2022
16,633
2,671
13,961
5,581
5,608
1,497
383
892
—
All-in-sustaining cost
R/4Eoz - R/2Eoz
Sep 2023
23,033
35,738
20,029
18,701
22,196
18,550
10,747
25,258
—
Jun 2023
21,902
30,280
19,781
18,121
22,073
18,403
10,886
22,329
—
Sep 2022
21,977
30,947
20,143
18,435
23,719
15,399
11,283
21,032
—
US$/4Eoz - US$/2Eoz
Sep 2023
1,239
1,922
1,077
1,006
1,194
998
578
1,359
—
Jun 2023
1,174
1,623
1,060
971
1,183
986
583
1,197
—
Sep 2022
1,289
1,815
1,181
1,081
1,391
903
662
1,234
—
All-in-cost
R/4Eoz - R/2Eoz
Sep 2023
24,002
37,642
20,777
18,701
23,526
18,550
15,364
25,258
—
Jun 2023
22,839
32,235
20,460
18,121
23,257
18,805
13,833
22,329
—
Sep 2022
23,245
36,000
20,638
18,441
24,867
15,399
11,283
21,032
—
US$/4Eoz - US$/2Eoz
Sep 2023
1,291
2,025
1,118
1,006
1,266
998
826
1,359
—
Jun 2023
1,224
1,728
1,096
971
1,246
1,008
741
1,197
—
Sep 2022
1,363
2,111
1,210
1,082
1,459
903
662
1,234
—
Average exchange rates for the quarters ended 30 September 2023, 30 June 2023 and 30 September 2022 was R18.59/US$, R18.66/US$ and R17.05/US$, respectively
Figures may not add as they are rounded independently
1 The US and SA PGM operations, Total SA PGM operations and Marikana includes the production and costs associated with the purchase of concentrate (PoC) from third parties. For a reconciliation of the Operating cost, AISC and AIC excluding third party PoC, refer to “Reconciliation of operating cost excluding third party PoC for US and SA PGM operations, Total SA PGM operations and Marikana - Quarters” and “Reconciliation of AISC and AIC excluding third party PoC for US and SA PGM operations, Total SA PGM operations and Marikana – Quarters”
2 The US PGM operations’ underground production is converted to metric tonnes and kilograms, and performance is translated into SA rand. In addition to the US PGM operations’ underground production, the operation processes various recycling material which is excluded from the 2E PGM production, All-in sustaining cost and All-in cost statistics shown
3 Cost of sales, before amortisation and depreciation includes all mining and processing costs, third party refining costs, corporate general and administrative costs, and permitting costs
4 Share-based payments are calculated based on the fair value at initial recognition and do not include the adjustment of the cash-settled share-based payment obligation to the reporting date fair value
5 Rehabilitation includes the interest charge related to the environmental rehabilitation obligation and the amortisation of the related capitalised rehabilitation costs. The interest charge related to the environmental rehabilitation obligation and the amortisation of the capitalised rehabilitation costs reflect the periodic costs of rehabilitation associated with current PGM production
6 All-in cost is calculated in accordance with the World Gold Council guidance. All-in cost excludes income tax, costs associated with merger and acquisition activities, working capital, impairments, financing costs, one-time severance charges and items needed to normalise earnings. All-in cost is made up of All-in sustaining cost, being the cost to sustain current operations, given as a sub-total in the All-in cost calculation, together with corporate and major capital expenditure associated with growth. All-in sustaining cost per ounce (and kilogram) and All-in cost per ounce (and kilogram) are calculated by dividing the All-in sustaining cost and All-in cost, respectively, in a period by the total 4E/2E PGM produced in the same period
Reconciliation of operating cost excluding third party PoC for US and SA PGM operations, Total SA PGM operations and Marikana - Quarters
US and SA PGM
Total SA PGM operations
Marikana
Rm
Sep 2023
Jun 2023
Sep 2022
Sep 2023
Jun 2023
Sep 2022
Sep 2023
Jun 2023
Sep 2022
Cost of sales, before amortisation and depreciation as reported per table above
11,457
11,384
9,416
8,947
9,352
8,003
4,275
4,875
3,758
Inventory change as reported per table above
912
74
1,462
1,165
287
1,064
703
(80)
689
Less: Chrome cost of sales
(333)
(451)
(402)
(333)
(451)
(402)
(150)
(163)
(96)
Total operating cost including third party PoC
12,036
11,007
10,476
9,779
9,188
8,665
4,828
4,632
4,351
Less: Purchase cost of PoC
(565)
(773)
(790)
(565)
(773)
(790)
(565)
(773)
(790)
Total operating cost excluding third party PoC
11,471
10,234
9,686
9,214
8,415
7,875
4,263
3,859
3,561
PGM production as reported per table above
4Eoz- 2Eoz
581,101
549,847
534,752
475,555
445,024
448,863
203,009
192,545
180,316
Less: Mimosa production
(29,060)
(30,946)
(28,670)
(29,060)
(30,946)
(28,670)
—
—
—
PGM production excluding Mimosa
552,041
518,901
506,082
446,495
414,078
420,193
203,009
192,545
180,316
Less: PoC production
(23,995)
(25,633)
(16,720)
(23,995)
(25,633)
(16,720)
(23,995)
(25,633)
(16,720)
PGM production excluding Mimosa and third party PoC
528,046
493,268
489,362
422,500
388,445
403,473
179,014
166,912
163,596
PGM production including Mimosa and excluding third party PoC
557,106
524,214
518,032
451,560
419,391
432,143
179,014
166,912
163,596
Tonnes milled/treated
kt
9,711
9,469
9,625
9,394
9,182
9,383
2,578
2,475
2,441
Less: Mimosa tonnes
(351)
(354)
(340)
(351)
(354)
(340)
—
—
—
PGM tonnes excluding Mimosa and third party PoC
9,359
9,115
9,284
9,043
8,828
9,043
2,578
2,475
2,441
Operating cost including third party PoC
R/4Eoz-R/2Eoz
21,803
21,212
20,700
21,902
22,189
20,621
23,782
24,057
24,130
US$/4Eoz-US$/2Eoz
1,173
1,137
1,214
1,178
1,189
1,209
1,279
1,289
1,415
R/t
1,286
1,208
1,128
1,081
1,041
958
1,873
1,872
1,782
US$/t
69
65
66
58
56
56
101
100
105
Operating cost excluding third party PoC
R/4Eoz-R/2Eoz
21,723
20,747
19,793
21,808
21,663
19,518
23,814
23,120
21,767
US$/4Eoz-US$/2Eoz
1,169
1,112
1,161
1,173
1,161
1,145
1,281
1,239
1,277
R/t
1,226
1,123
1,043
1,019
953
871
1,654
1,560
1,459
US$/t
66
60
61
55
51
51
89
84
86
Reconciliation of AISC and AIC excluding third party PoC for Total US and SA PGM, Total SA PGM and Marikana - Quarters
US and SA PGM
Total SA PGM operations
Marikana
Rm
Sep 2023
Jun 2023
Sep 2022
Sep 2023
Jun 2023
Sep 2022
Sep 2023
Jun 2023
Sep 2022
Total All-in-sustaining cost as reported per table above
12,715
11,365
11,122
8,943
8,191
8,464
4,506
4,250
4,277
Less: Purchase cost of PoC
(565)
(773)
(790)
(565)
(773)
(790)
(565)
(773)
(790)
Add: By-product credit of PoC
106
124
77
106
124
77
106
124
77
Total All-in-sustaining cost excluding third party PoC
12,256
10,716
10,409
8,484
7,542
7,751
4,047
3,601
3,564
Plus: Corporate cost, growth and capital expenditure
535
486
642
334
281
208
270
228
207
Total All-in-cost excluding third party PoC
12,791
11,202
11,051
8,818
7,823
7,959
4,317
3,829
3,771
PGM production excluding Mimosa and third party PoC
4Eoz- 2Eoz
528,046
493,268
489,362
422,500
388,445
403,473
179,014
166,912
163,596
All-in-sustaining cost excluding third party PoC
R/4Eoz-R/2Eoz
23,210
21,724
21,271
20,080
19,416
19,211
22,607
21,574
21,785
US$/4Eoz-US$/2Eoz
1,249
1,164
1,248
1,080
1,041
1,127
1,216
1,156
1,278
All-in-cost excluding third party PoC
R/4Eoz-R/2Eoz
24,223
22,710
22,582
20,871
20,139
19,726
24,115
22,940
23,051
US$/4Eoz-US$/2Eoz
1,303
1,217
1,324
1,123
1,079
1,157
1,297
1,229
1,352
ALL-IN COSTS - QUARTERS (continued)
SA gold operations
Figures are in rand millions unless otherwise stated
SA OPERATIONS
Total SA gold
Driefontein
Kloof
Beatrix
Cooke
DRDGOLD
Corporate
Cost of sales, before amortisation and depreciation1
Sep 2023
6,436
1,747
2,162
1,101
336
1,090
—
Jun 2023
6,128
1,735
2,043
1,038
322
990
—
Sep 2022
6,342
1,562
1,926
1,624
256
974
—
Royalties
Sep 2023
27
9
12
5
1
—
—
Jun 2023
32
13
12
7
1
—
(1)
Sep 2022
21
7
7
6
1
—
—
Carbon tax
Sep 2023
—
—
—
—
—
—
—
Jun 2023
—
—
—
—
—
—
—
Sep 2022
1
—
—
1
—
—
—
Community costs
Sep 2023
4
—
1
—
—
3
—
Jun 2023
6
1
1
1
—
3
—
Sep 2022
24
8
7
6
—
3
—
Share-based payments2
Sep 2023
48
14
17
14
—
6
(3)
Jun 2023
24
7
7
(1)
—
6
5
Sep 2022
28
10
9
5
—
4
—
Rehabilitation interest and amortisation3
Sep 2023
50
—
5
17
22
5
1
Jun 2023
44
—
6
19
22
(4)
1
Sep 2022
32
5
(3)
15
11
4
—
Leases
Sep 2023
11
—
1
5
—
5
—
Jun 2023
11
—
1
5
—
5
—
Sep 2022
19
2
4
7
—
6
—
Ore reserve development
Sep 2023
677
339
246
92
—
—
—
Jun 2023
745
411
249
85
—
—
—
Sep 2022
472
208
174
90
—
—
—
Sustaining capital expenditure
Sep 2023
367
131
108
16
—
112
—
Jun 2023
362
110
109
27
—
115
1
Sep 2022
409
109
150
37
—
113
—
Less: By-product credit
Sep 2023
(5)
(2)
(2)
(1)
—
—
—
Jun 2023
(6)
(2)
(1)
(1)
—
(2)
—
Sep 2022
(3)
(1)
(1)
(1)
—
—
—
Total All-in-sustaining costs4
Sep 2023
7,615
2,238
2,550
1,249
359
1,221
(2)
Jun 2023
7,346
2,275
2,427
1,180
345
1,113
6
Sep 2022
7,345
1,910
2,273
1,790
268
1,104
—
Plus: Corporate cost, growth and capital expenditure
Sep 2023
535
—
42
—
—
152
341
Jun 2023
797
—
36
—
—
267
494
Sep 2022
505
—
105
—
—
53
347
Total All-in-costs4
Sep 2023
8,150
2,238
2,592
1,249
359
1,373
339
Jun 2023
8,143
2,275
2,463
1,180
345
1,380
500
Sep 2022
7,850
1,910
2,378
1,790
268
1,157
347
Gold sold
kg
Sep 2023
6,178
1,538
2,136
930
307
1,267
—
Jun 2023
6,801
2,123
2,039
1,109
308
1,222
—
Sep 2022
6,070
1,572
1,488
1,257
311
1,442
—
oz
Sep 2023
198,627
49,448
68,674
29,900
9,870
40,735
—
Jun 2023
218,657
68,256
65,555
35,655
9,902
39,288
—
Sep 2022
195,155
50,541
47,840
40,413
9,999
46,361
—
All-in-sustaining cost
R/kg
Sep 2023
1,232,600
1,455,137
1,193,820
1,343,011
1,169,381
963,694
—
Jun 2023
1,080,135
1,071,597
1,190,289
1,064,022
1,120,130
910,802
—
Sep 2022
1,210,049
1,215,013
1,527,554
1,424,025
861,736
765,603
—
All-in-sustaining cost
US$/oz
Sep 2023
2,062
2,435
1,997
2,247
1,957
1,612
—
Jun 2023
1,800
1,786
1,984
1,774
1,867
1,518
—
Sep 2022
2,207
2,216
2,787
2,598
1,572
1,397
—
All-in-cost
R/kg
Sep 2023
1,319,197
1,455,137
1,213,483
1,343,011
1,169,381
1,083,662
—
Jun 2023
1,197,324
1,071,597
1,207,945
1,064,022
1,120,130
1,129,296
—
Sep 2022
1,293,245
1,215,013
1,598,118
1,424,025
861,736
802,358
—
All-in-cost
US$/oz
Sep 2023
2,207
2,435
2,030
2,247
1,957
1,813
—
Jun 2023
1,996
1,786
2,013
1,774
1,867
1,882
—
Sep 2022
2,359
2,216
2,915
2,598
1,572
1,464
—
Average exchange rates for the quarters ended 30 September 2023, 30 June 2023 and 30 September 2022 was R18.59/US$, R18.66/US$ and R17.05/US$, respectively
Figures may not add as they are rounded independently
1 Cost of sales, before amortisation and depreciation includes all mining and processing costs, third party refining costs, corporate general and administrative costs, and permitting costs
2 Share-based payments are calculated based on the fair value at initial recognition and do not include the adjustment of the cash-settled share-based payment obligation to the reporting date fair value
3 Rehabilitation includes the interest charge related to the environmental rehabilitation obligation and the amortisation of the related capitalised rehabilitation costs. The interest charge related to the environmental rehabilitation obligation and the amortisation of the capitalised rehabilitation costs reflect the periodic costs of rehabilitation associated with current gold production
4 All-in cost is calculated in accordance with the World Gold Council guidance. All-in cost excludes income tax, costs associated with merger and acquisition activities, working capital, impairments, financing costs, one time severance charges and items needed to normalise earnings. All-in cost is made up of All-in sustaining cost, being the cost to sustain current operations, given as a sub-total in the All-in cost calculation, together with corporate and major capital expenditure associated with growth. All-in sustaining cost per kilogram (and ounce) and All-in cost per kilogram (and ounce) are calculated by dividing the All-in sustaining cost and All-in cost, respectively, in a period by the total gold sold over the same period
ALL-IN-COSTS - QUARTERS (continued)
Australian operations
Figures are in rand millions unless otherwise stated
Century zinc retreatment operation1
Cost of sales, before amortisation and depreciation2
Sep 2023
713
Jun 2023
733
Royalties
Sep 2023
24
Jun 2023
39
Community costs
Sep 2023
22
Jun 2023
8
Inventory change
Sep 2023
45
Jun 2023
36
Share-based payments
Sep 2023
—
Jun 2023
—
Rehabilitation interest and amortisation3
Sep 2023
5
Jun 2023
2
Leases
Sep 2023
30
Jun 2023
31
Sustaining capital expenditure
Sep 2023
30
Jun 2023
35
Less: By-product credit
Sep 2023
(51)
Jun 2023
(20)
Total All-in-sustaining costs4
Sep 2023
818
Jun 2023
864
Plus: Corporate cost, growth and capital expenditure
Sep 2023
59
Jun 2023
95
Total All-in-costs4
Sep 2023
877
Jun 2023
959
Zinc metal produced (payable)
kt
Sep 2023
25
Jun 2023
23
All-in-sustaining cost
R/tZn
Sep 2023
32,587
Jun 2023
37,562
US$/tZn
Sep 2023
1,753
Jun 2023
2,013
All-in-cost
R/tZn
Sep 2023
34,937
Jun 2023
41,692
US$/tZn
Sep 2023
1,879
Jun 2023
2,234
Average exchange rates for the quarters ended 30 September 2023 and 30 June 2023 was R18.59/US$ and R18.66/US$, respectively
Figures may not add as they are rounded independently
1 Century is a leading tailings management and rehabilitation company that currently owns and operates the Century zinc tailings retreatment operation in Queensland, Australia. Century was acquired by the Group on 22 February 2023
2 Cost of sales, before amortisation and depreciation includes all mining and processing costs, corporate general and administrative costs, and permitting costs
3 Rehabilitation includes the interest charge related to the environmental rehabilitation obligation and the amortisation of the related capitalised rehabilitation costs. The interest charge related to the environmental rehabilitation obligation and the amortisation of the capitalised rehabilitation costs reflect the periodic costs of rehabilitation associated with current zinc production
4 All-in cost is calculated in accordance with the World Gold Council guidance. All-in cost excludes income tax, costs associated with merger and acquisition activities, working capital, impairments, financing costs, one-time severance charges and items needed to normalise earnings. All-in cost is made up of All-in sustaining cost, being the cost to sustain current operations, given as a sub-total in the All-in cost calculation, together with corporate and major capital expenditure associated with growth. All-in sustaining cost per tonne and All-in cost per tonne are calculated by dividing the All-in sustaining cost and All-in cost, respectively, in a period by the total tonnes of zinc metal produced (payable) in the same period
UNIT OPERATING COST - QUARTERS
US and SA PGM operations
Figures are in rand millions unless otherwise stated
US and SA PGM operations1
US PGM operations
Total SA PGM operations1,3
Rustenburg3
Marikana3
Kroondal3
Plat Mile
Mimosa
Under-
ground2
Total
Under-
ground
Surface
Under-
ground
Surface
Attribu-table
Surface
Attribu-table
Cost of sales, before amortisation and depreciation
Sep 2023
11,457
2,510
8,947
3,211
344
4,275
942
175
640
Jun 2023
11,384
2,032
9,352
3,141
315
4,875
865
156
678
Sep 2022
9,416
1,413
8,003
2,912
306
3,758
868
159
511
Inventory change
Sep 2023
912
(253)
1,165
290
172
703
—
—
(4)
Jun 2023
74
(213)
287
342
25
(80)
—
—
(65)
Sep 2022
1,462
398
1,064
285
90
689
—
—
(3)
Less: Chrome cost of sales
Sep 2023
(333)
—
(333)
(180)
—
(150)
(3)
—
—
Jun 2023
(451)
—
(451)
(285)
—
(163)
(3)
—
—
Sep 2022
(402)
—
(402)
(258)
—
(96)
(48)
—
—
Less: Purchase cost of PoC
Sep 2023
(565)
—
(565)
—
—
(565)
—
—
—
Jun 2023
(773)
—
(773)
—
—
(773)
—
—
—
Sep 2022
(790)
—
(790)
—
—
(790)
—
—
—
Total operating cost excluding third party PoC
Sep 2023
11,471
2,257
9,214
3,321
516
4,263
939
175
636
Jun 2023
10,234
1,819
8,415
3,198
340
3,859
862
156
613
Sep 2022
9,686
1,811
7,875
2,939
396
3,561
820
159
508
Tonnes milled/treated excluding third party PoC4
kt
Sep 2023
9,359
316
9,043
1,643
1,420
1,709
869
755
2,649
351
Jun 2023
9,115
287
8,828
1,572
1,390
1,557
918
727
2,665
354
Sep 2022
9,284
241
9,043
1,666
1,418
1,515
927
782
2,736
340
PGM production excluding third party PoC4
4Eoz
Sep 2023
528,046
105,546
422,500
157,977
24,045
179,014
47,600
13,864
29,060
Jun 2023
493,268
104,823
388,445
147,723
19,264
166,912
42,329
12,217
30,946
Sep 2022
489,362
85,889
403,473
154,797
24,641
163,596
48,120
12,319
28,670
Operating cost excluding third party PoC5
R/t
Sep 2023
1,226
7,140
1,019
2,021
363
1,654
1,244
66
1,812
Jun 2023
1,123
6,333
953
2,035
245
1,560
1,186
59
1,730
Sep 2022
1,043
7,504
871
1,764
279
1,459
1,049
58
1,493
US$/t
Sep 2023
66
384
55
109
20
89
67
4
97
Jun 2023
60
339
51
109
13
84
64
3
93
Sep 2022
61
440
51
103
16
86
62
3
88
R/4Eoz - R/2Eoz
Sep 2023
21,723
21,384
21,808
21,022
21,460
23,814
19,727
12,623
21,886
Jun 2023
20,747
17,353
21,663
21,649
17,650
23,120
20,364
12,769
19,809
Sep 2022
19,793
21,085
19,518
18,986
16,071
21,767
17,041
12,907
17,719
US$/4Eoz - US$/2Eoz
Sep 2023
1,169
1,150
1,173
1,131
1,154
1,281
1,061
679
1,177
Jun 2023
1,112
930
1,161
1,160
946
1,239
1,091
684
1,062
Sep 2022
1,161
1,237
1,145
1,114
943
1,277
999
757
1,039
Average exchange rates for the quarters ended 30 September 2023, 30 June 2023 and 30 September 2022 was R18.59/US$, R18.66/US$ and R17.05/US$, respectively
Figures may not add as they are rounded independently
1 US and SA PGM operations and Total SA PGM operations exclude the results of Mimosa, which is equity accounted
2 The US PGM operations’ underground production is converted to metric tonnes and kilograms, and performance is translated into rand. In addition to the US PGM operations’
underground production, the operation treats various recycling material which is excluded from the statistics shown above
3 Cost of sales, before amortisation and depreciation for Total SA PGM, Rustenburg, Marikana and Kroondal includes the Chrome cost of sales which is excluded for unit cost calculation purposes as Chrome production is excluded from the 4Eoz production
4 For a reconciliation of the production excluding Mimosa and third party PoC, refer to “Reconciliation of operating cost excluding third party PoC for US and SA PGM operations, Total SA PGM operations and Marikana - Quarters”
5 Operating cost is the average cost of production and operating cost per tonne is calculated by dividing the cost of sales, before amortisation and depreciation and change in inventory in a period by the tonnes milled/treated in the same period, and operating cost per ounce is calculated by dividing the cost of sales, before amortisation and depreciation and change in inventory in a period, by the PGM produced in the same period
UNIT OPERATING COST - QUARTERS (continued)
SA gold operations
Figures are in rand millions unless otherwise stated
Total SA gold operations
Driefontein
Kloof
Beatrix
Cooke
DRDGOLD
Total
Under-
ground
Surface
Under-
ground
Surface
Under-
ground
Surface
Under-
ground
Surface
Surface
Surface
Cost of sales, before amortisation and depreciation
Sep 2023
6,436
4,796
1,640
1,737
10
1,972
190
1,087
14
336
1,090
Jun 2023
6,128
4,648
1,480
1,724
11
1,918
125
1,006
32
322
990
Sep 2022
6,342
4,871
1,471
1,518
44
1,751
175
1,602
22
256
974
Inventory change
Sep 2023
26
(9)
35
10
—
(47)
1
28
—
9
25
Jun 2023
(61)
(78)
17
(75)
—
13
2
(16)
—
9
6
Sep 2022
257
238
19
115
—
61
14
62
—
1
4
Total operating cost
Sep 2023
6,462
4,787
1,675
1,747
10
1,925
191
1,115
14
345
1,115
Jun 2023
6,067
4,570
1,497
1,649
11
1,931
127
990
32
331
996
Sep 2022
6,599
5,109
1,490
1,633
44
1,812
189
1,664
22
257
978
Tonnes milled/treated
kt
Sep 2023
8,245
966
7,279
251
13
365
481
350
33
1,121
5,632
Jun 2023
7,670
1,120
6,550
357
23
389
331
374
115
1,110
4,972
Sep 2022
10,237
1,117
9,120
290
123
336
620
490
18
1,202
7,157
Gold produced
kg
Sep 2023
6,148
4,267
1,881
1,452
43
1,882
234
933
7
313
1,284
Jun 2023
6,733
5,045
1,688
2,040
15
1,935
119
1,070
24
308
1,222
Sep 2022
6,366
4,354
2,012
1,640
50
1,393
190
1,321
—
319
1,453
oz
Sep 2023
197,663
137,187
60,476
46,683
1,382
60,508
7,523
29,997
225
10,063
41,282
Jun 2023
216,471
162,200
54,270
65,588
482
62,212
3,826
34,401
772
9,902
39,288
Sep 2022
204,672
139,984
64,687
52,727
1,608
44,786
6,109
42,471
—
10,256
46,715
Operating cost1
R/t
Sep 2023
784
4,953
230
6,948
783
5,277
397
3,184
429
308
198
Jun 2023
791
4,081
229
4,616
478
4,964
384
2,650
279
298
200
Sep 2022
645
4,573
163
5,623
359
5,388
305
3,393
1,222
214
137
US$/t
Sep 2023
42
266
12
374
42
284
21
171
23
17
11
Jun 2023
42
219
12
247
26
266
21
142
15
16
11
Sep 2022
38
268
10
330
21
316
18
199
72
13
8
R/kg
Sep 2023
1,051,074
1,121,865
890,484
1,203,168
232,558
1,022,848
816,239
1,195,070
2,000,000
1,102,236
868,380
Jun 2023
901,084
905,847
886,848
808,333
733,333
997,933
1,067,227
925,234
1,333,333
1,074,675
815,057
Sep 2022
1,036,601
1,173,404
740,557
995,732
880,000
1,300,790
994,737
1,259,652
—
805,643
673,090
US$/oz
Sep 2023
1,759
1,877
1,490
2,013
389
1,711
1,366
2,000
3,346
1,844
1,453
Jun 2023
1,502
1,510
1,478
1,347
1,222
1,663
1,779
1,542
2,222
1,791
1,359
Sep 2022
1,891
2,141
1,351
1,816
1,605
2,373
1,815
2,298
—
1,470
1,228
Average exchange rates for the quarters ended 30 September 2023, 30 June 2023 and 30 September 2022 was R18.59/US$, R18.66/US$ and R17.05/US$, respectively
Figures may not add as they are rounded independently
1 Operating cost is the average cost of production and operating cost per tonne is calculated by dividing the cost of sales, before amortisation and depreciation and change in inventory in a period by the tonnes milled/treated in the same period, and operating cost per kilogram (and ounce) is calculated by dividing the cost of sales, before amortisation and depreciation and change in inventory in a period by the gold produced in the same period
ADJUSTED EBITDA RECONCILIATION - QUARTERS
Quarter ended Sep 2023
Quarter ended Jun 2023
Quarter ended Sep 2022
Americas region
Southern Africa (SA) region
European (EU) region
Australian (AUS) region
Group
Americas region
SA region
European region
Australian region
Group
Americas region
SA region
European region
Group
Figures in million - SA rand
Total US PGM
US Under- ground PGM
US Recy- cling
SA PGM
SA gold
Total EU1
Sandouville nickel refinery
Total AUS2
Century zinc retreatment operation
Corpo-rate
Total
Total US PGM
US Under- ground PGM
US Recy- cling
SA PGM
SA gold
Total EU1
Sandouville nickel refinery
Total AUS2
Century zinc retreatment operation
Corpo-rate
Total
Total US PGM
US Under- ground PGM
US Recy- cling
SA PGM
SA gold
Total EU1
Sandouville nickel refinery
Corpo-rate
Total
(Loss)/profit before royalties and tax
(653)
(799)
146
1,260
(181)
(362)
(350)
(461)
(404)
(394)
(791)
(105)
(276)
171
5,479
1,209
(352)
(357)
(450)
(475)
(261)
5,520
356
(83)
439
7,374
(802)
(331)
(309)
(142)
6,455
Adjusted for:
Amortisation and depreciation
958
957
1
780
572
51
49
223
223
—
2,584
846
845
1
714
619
49
47
545
545
—
2,773
580
579
1
625
481
55
55
—
1,741
Interest income
(51)
(51)
—
(93)
(162)
(32)
—
(2)
(1)
(1)
(341)
(54)
(54)
—
(127)
(152)
(1)
—
(5)
(4)
(1)
(340)
(101)
(32)
(69)
(83)
(124)
—
—
—
(308)
Finance expense
269
269
—
152
205
23
2
25
25
73
747
270
270
—
171
284
16
2
98
98
95
934
248
248
—
163
177
6
6
78
672
Share-based payments
18
18
—
33
41
(17)
(3)
—
—
4
79
16
16
—
4
15
5
5
—
—
4
44
10
10
—
41
43
—
—
—
94
Loss/(gain) on financial instruments
—
—
—
240
(21)
(4)
(13)
240
240
—
455
(68)
(68)
—
227
(71)
(45)
(9)
(570)
(570)
(13)
(540)
160
160
—
125
4
(23)
(1)
—
266
Loss/(gain) on foreign exchange differences
3
3
—
61
3
24
24
58
—
14
163
(9)
(9)
—
(1,620)
72
(65)
(65)
(25)
(1)
(7)
(1,654)
8
8
—
(135)
(518)
63
18
(39)
(621)
Share of results of equity-accounted investees after tax
—
—
—
129
(88)
—
—
—
—
3
44
—
—
—
18
(89)
—
—
—
—
8
(63)
—
—
—
(55)
(37)
—
—
3
(89)
Loss/(gain) on disposal of property, plant and equipment
1
1
—
(20)
(14)
—
—
—
—
—
(33)
(1)
(1)
—
(24)
(23)
—
—
—
—
—
(48)
1
1
—
(15)
(18)
—
—
—
(32)
Impairments/(reversal of impairments)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1
—
—
6
6
—
7
—
—
—
(7)
—
—
—
—
(7)
Restructuring cost
—
—
—
3
2
—
—
—
—
—
5
—
—
—
15
(235)
—
—
—
—
—
(220)
—
—
—
4
3
—
—
—
7
IFRS 16 lease payments
(1)
(1)
—
(13)
(13)
(6)
(5)
(30)
(30)
—
(63)
(1)
(1)
—
(15)
(21)
(6)
(5)
(32)
(32)
—
(75)
(2)
(2)
—
(14)
(20)
(16)
(15)
—
(52)
Occupational healthcare gain
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
(8)
—
—
—
—
—
(8)
—
—
—
—
—
—
—
—
—
Other non-recurring costs
—
—
—
—
—
—
—
—
—
178
178
—
—
—
—
—
—
—
—
—
62
62
6
6
—
309
—
—
—
14
329
Adjusted EBITDA
544
397
147
2,532
344
(323)
(296)
53
53
(123)
3,027
894
722
172
4,842
1,601
(399)
(382)
(433)
(433)
(113)
6,392
1,266
895
371
8,332
(811)
(246)
(246)
(86)
8,455
1 Total European operations includes Sandouville nickel refinery, Keliber Oy and European corporate and reconciling items
2 Total Australian operations includes Century zinc retreatment operation and Australian corporate and reconciling items
DEVELOPMENT RESULTS
Development values represent the actual results of sampling and no allowance has been made for any adjustments which may be necessary when estimating ore reserves. All figures below exclude shaft sinking metres, which are reported separately where appropriate.
US PGM operations
Sep 2023 quarter
Jun 2023 quarter
Nine months ended Sep 2023
Reef
Stillwater incl Blitz
East Boulder
Stillwater incl Blitz
East Boulder
Stillwater incl Blitz
East Boulder
Total US PGM
Unit
Primary development (off reef)
(m)
1,785
172
1,671
472
4,959
1,095
Secondary development
(m)
3,185
1,402
2,659
1,319
8,286
4,144
SA PGM operations
Sep 2023 quarter
Jun 2023 quarter
Nine months ended Sep 2023
Reef
Bathopele
Thembe- lani
Khuseleka
Siphume-lele
Bathopele
Thembe- lani
Khuseleka
Siphume-lele
Bathopele
Thembe- lani
Khuseleka
Siphume-lele
Rustenburg
Unit
Advanced
(m)
809
1,933
3,057
705
793
1,846
2,762
582
2,208
5,104
8,109
1,808
Advanced on reef
(m)
809
835
1,171
386
793
865
938
363
2,208
2,271
2,914
1,085
Height
(cm)
213
251
285
268
224
295
286
273
221
277
287
270
Average value
(g/t)
2.8
2.3
2.3
3.1
2.8
2.4
2.3
3.0
2.8
2.3
2.3
3.0
(cm.g/t)
594
579
644
825
624
696
664
818
610
650
655
808
SA PGM operations
Sep 2023 quarter
Jun 2023 quarter
Nine months ended Sep 2023
Reef
K3
Rowland
Saffy
E3
4B
K4
K3
Rowland
Saffy
E3
4B
K4
K3
Rowland
Saffy
E3
4B
K4
Marikana
Unit
Primary development
(m)
9,897
4,999
3,782
1,257
594
3,589
8,174
4,353
3,283
1,225
790
3,189
24,731
13,215
9,998
3,122
2,333
9,385
Primary development - on reef
(m)
7,835
2,795
2,036
791
418
1,131
6,032
2,456
1,716
756
469
981
18,670
7,578
5,415
1,925
1,549
2,989
Height
(cm)
217
218
235
248
228
241
216
220
235
221
215
238
216
220
235
233
217
240
Average value
(g/t)
2.8
2.6
2.5
2.6
3.0
2.4
2.9
2.3
2.5
2.7
2.9
2.5
2.8
2.5
2.5
2.6
2.9
2.5
(cm.g/t)
608
563
581
642
674
584
623
515
583
586
625
599
614
544
582
610
637
590
SA PGM operations
Sep 2023 quarter
Jun 2023 quarter
Nine months ended Sep 2023
Reef
Simunye1
Kopaneng
Bamba-nani
Kwezi
K6
Simunye1
Kopaneng
Bamba-nani
Kwezi
K6
Simunye1
Kopaneng
Bamba-nani
Kwezi
K6
Kroondal
Unit
Advanced
(m)
—
1,161
1,138
260
440
—
1,161
1,245
332
537
675
2,863
3,397
865
1,414
Advanced on reef
(m)
—
942
778
234
404
—
1,048
900
299
515
604
2,452
2,425
762
1,342
Height
(cm)
—
240
232
230
227
—
236
247
243
228
230
237
243
235
230
Average value
(g/t)
—
2.1
1.8
2.0
1.8
—
2.2
1.9
2.2
2.0
2.2
2.1
1.9
2.1
2.0
(cm.g/t)
—
500
419
455
401
—
523
462
535
466
516
502
450
484
457
1 Simunye development was done as part of the Kopaneng extraction strategy. Based on planning and measuring this portion of mining below Simunye will be allocated to Kopaneng with effect from April 2023 onwards
SA gold operations
Sep 2023 quarter
Jun 2023 quarter
Nine months ended Sep 2023
Reef
Carbon
leader
Main
VCR
Carbon
leader
Main
VCR
Carbon
leader
Main
VCR
Driefontein
Unit
Advanced
(m)
294
381
1,004
492
504
1,377
1,330
1,430
3,453
Advanced on reef
(m)
88
84
156
56
14
126
211
136
476
Channel width
(cm)
43
100
62
13
199
55
34
90
54
Average value
(g/t)
19.9
5.6
52.9
62.3
7.2
44.5
25.2
6.2
40.7
(cm.g/t)
852
557
3,258
797
1,434
2,468
864
554
2,176
SA gold operations
Sep 2023 quarter
Jun 2023 quarter
Nine months ended Sep 2023
Reef
Kloof
Main
Libanon
VCR
Kloof
Main
Libanon
VCR
Kloof
Main
Libanon
VCR
Kloof
Unit
Advanced
(m)
1,082
644
—
630
1,064
697
46
885
3,147
1,875
91
2,224
Advanced on reef
(m)
351
128
—
72
452
155
46
108
1,178
408
91
322
Channel width
(cm)
177
77
—
85
165
49
93
104
164
69
97
101
Average value
(g/t)
3.2
11.5
—
18.2
4.8
16.3
2.2
11.8
4.5
11.8
2.1
12.5
(cm.g/t)
568
887
—
1,541
795
800
206
1,226
735
816
201
1,263
SA gold operations
Sep 2023 quarter
Jun 2023 quarter
Nine months ended Sep 2023
Reef
Beatrix
Kalkoen-krans
Beatrix
Kalkoen-krans
Beatrix
Kalkoen-krans
Beatrix
Unit
Advanced
(m)
1,928
—
2,061
—
5,906
8
Advanced on reef
(m)
663
—
612
—
1,842
—
Channel width
(cm)
163
—
162
—
166
—
Average value
(g/t)
8.1
—
6.1
—
7.2
—
(cm.g/t)
1,312
—
997
—
1,192
—
SA gold operations
Sep 2023 quarter
Jun 2023 quarter
Nine months ended Sep 2023
Reef
Kimberley
Kimberley
Kimberley
Burnstone
Unit
Advanced
(m)
821
630
2,023
Advanced on reef
(m)
33
—
33
Channel width
(cm)
23
—
23
Average value
(g/t)
15.2
—
15.2
(cm.g/t)
350
—
350
ADMINISTRATION AND CORPORATE INFORMATION
SIBANYE STILLWATER LIMITED
(SIBANYE-STILLWATER)
Incorporated in the Republic of South Africa
Registration number 2014/243852/06
Share code: SSW and SBSW
Issuer code: SSW
ISIN: ZAE000259701
LISTINGS
JSE: SSW
NYSE: SBSW
WEBSITE
REGISTERED AND CORPORATE OFFICE
Constantia Office Park
Bridgeview House, Building 11, Ground floor,
Cnr 14th Avenue Hendrik Potgieter Road
Weltevreden Park 1709
South Africa
Private Bag X5
Westonaria 1780
South Africa
Tel: +27 11 278 9600
Fax: +27 11 278 9863
COMPANY SECRETARY
Lerato Matlosa
Email: lerato.matlosa@sibanyestillwater.com
DIRECTORS
Dr Vincent Maphai* (Chairman)
Neal Froneman (CEO)
Charl Keyter (CFO)
Dr Elaine Dorward-King*
Harry Kenyon-Slaney*
Jeremiah Vilakazi*
Keith Rayner*
Nkosemntu Nika*
Richard Menell*^
Savannah Danson*
Susan van der Merwe*
Timothy Cumming*
Sindiswa Zilwa*
*Independent non-executive
^ Lead independent director
INVESTOR ENQUIRIES
James Wellsted
Executive Vice President: Investor Relations and Corporate Affairs
Mobile: +27 83 453 4014
Email: james.wellsted@sibanyestillwater.com
JSE SPONSOR
JP Morgan Equities South Africa Proprietary Limited
Registration number 1995/011815/07
1 Fricker Road
Illovo
Johannesburg 2196
South Africa
Private Bag X9936
Sandton 2146
South Africa
AUDITORS
Ernst Young Inc. (EY)
102 Rivonia Road
Sandton 2196
South Africa
Private Bag X14
Sandton 2146
South Africa
Tel: +27 11 772 3000
AMERICAN DEPOSITARY RECEIPTS
TRANSFER AGENT
BNY Mellon Shareowner Correspondence (ADR)
Mailing address of agent:
Computershare
PO Box 43078
Providence, RI 02940-3078
Overnight/certified/registered delivery:
Computershare
150 Royall Street, Suite 101
Canton, MA 02021
US toll free: + 1 888 269 2377
Tel: +1 201 680 6825
Email: shrrelations@cpushareownerservices.com
Tatyana Vesselovskaya
Relationship Manager - BNY Mellon
Depositary Receipts
Email: tatyana.vesselovskaya@bnymellon.com
TRANSFER SECRETARIES SOUTH AFRICA
Computershare Investor Services Proprietary Limited
Rosebank Towers
15 Biermann Avenue
Rosebank 2196
PO Box 61051
Marshalltown 2107
South Africa
Tel: +27 11 370 5000
Fax: +27 11 688 5248
In Europe:
Swiss Resource Capital AG
Jochen Staiger
DISCLAIMER
FORWARD LOOKING STATEMENTS
The information in this document may contain forward-looking statements within the meaning of the “safe harbour” provisions of the United States Private Securities Litigation Reform Act of 1995 with respect to Sibanye Stillwater Limited’s (Sibanye-Stillwater or the Group) financial condition, results of operations, business strategies, operating efficiencies, competitive position, growth opportunities for existing services, plans and objectives of management for future operations, markets for stock and other matters. These forward-looking statements, including, among others, those relating to Sibanye-Stillwater’s future business prospects, revenues and income, climate change-related targets and metrics, the potential benefits of past and future acquisitions (including statements regarding growth, cost savings, benefits from and access to international financing and financial re-ratings), gold, PGM, nickel and lithium pricing expectations, levels of output, supply and demand, information relating to Sibanye-Stillwater’s new or ongoing development projects, any proposed, anticipated or planned expansions into the battery metals or adjacent sectors and estimations or expectations of enterprise value, adjusted EBITDA and net asset, are necessarily estimates reflecting the best judgment of the senior management and directors of Sibanye-Stillwater and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. As a consequence, these forward-looking statements should be considered in light of various important factors, including those set forth in this document.
All statements other than statements of historical facts included in this document may be forward-looking statements. Forward-looking statements also often use words such as “will”, “would”, “expect”, “forecast”, “goal”, “vision”, “potential”, “may”, “could”, “believe”, “aim”, “anticipate”, “target”, “estimate” and words of similar meaning. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances and should be considered in light of various important factors, including those set forth in this disclaimer. Readers are cautioned not to place undue reliance on such statements.
The important factors that could cause Sibanye-Stillwater’s actual results, performance or achievements to differ materially from estimates or projections contained in the forward-looking statements include, without limitation, Sibanye-Stillwater’s future financial position, plans, strategies, objectives, capital expenditures, projected costs and anticipated cost savings, financing plans, debt position and ability to reduce debt leverage; economic, business, political and social conditions in South Africa, Zimbabwe, the United States, Europe and elsewhere; plans and objectives of management for future operations; Sibanye-Stillwater’s ability to obtain the benefits of any streaming arrangements or pipeline financing; the ability of Sibanye-Stillwater to comply with loan and other covenants and restrictions and difficulties in obtaining additional financing or refinancing; Sibanye-Stillwater’s ability to service its bond instruments; changes in assumptions underlying Sibanye-Stillwater’s estimation of its Mineral Resources and Mineral Reserves; any failure of a tailings storage facility; the ability to achieve anticipated efficiencies and other cost savings in connection with, and the ability to successfully integrate, past, ongoing and future acquisitions, as well as at existing operations; the ability of Sibanye-Stillwater to complete any ongoing or future acquisitions; the success of Sibanye-Stillwater’s business strategy and exploration and development activities, including any proposed, anticipated or planned expansions into the battery metals or adjacent sectors and estimations or expectations of enterprise value (including the Rhyolite Ridge project); the ability of Sibanye-Stillwater to comply with requirements that it operate in ways that provide progressive benefits to affected communities; changes in the market price of gold, PGMs, battery metals (e.g., nickel, lithium, copper and zinc) and the cost of power, petroleum fuels, and oil, among other commodities and supply requirements; the occurrence of hazards associated with underground and surface mining; any further downgrade of South Africa’s credit rating; the impact of South Africa's greylisting; a challenge regarding the title to any of Sibanye-Stillwater’s properties by claimants to land under restitution and other legislation; Sibanye-Stillwater’s ability to implement its strategy and any changes thereto; the outcome of legal challenges to the Group’s mining or other land use rights; the occurrence of labour disputes, disruptions and industrial actions; the availability, terms and deployment of capital or credit; changes in the imposition of industry standards, regulatory costs and relevant government regulations, particularly environmental, sustainability, tax, health and safety regulations and new legislation affecting water, mining, mineral rights and business ownership, including any interpretation thereof which may be subject to dispute; increasing regulation of environmental and sustainability matters such as greenhouse gas emissions and climate change; being subject to, and the outcome and consequence of, any potential or pending litigation or regulatory proceedings, including in relation to any environmental, health or safety issues; failure to meet ethical standards, including actual or alleged instances of fraud, bribery or corruption; the effect of climate change or other extreme weather events on Sibanye-Stillwater’s business; the concentration of all final refining activity and a large portion of Sibanye-Stillwater’s PGM sales from mine production in the United States with one entity; the identification of a material weakness in disclosure and internal controls over financial reporting; the effect of US tax reform legislation on Sibanye-Stillwater and its subsidiaries; the effect of South African Exchange Control Regulations on Sibanye-Stillwater’s financial flexibility; operating in new geographies and regulatory environments where Sibanye-Stillwater has no previous experience; power disruptions, constraints and cost increases; supply chain disruptions and shortages and increases in the price of production inputs; the regional concentration of Sibanye-Stillwater’s operations; fluctuations in exchange rates, currency devaluations, inflation and other macro-economic monetary policies; the occurrence of temporary stoppages or precautionary suspension of operations at its mines for safety or environmental incidents (including natural disasters) and unplanned maintenance; Sibanye-Stillwater’s ability to hire and retain senior management and employees with sufficient technical and/or production skills across its global operations necessary to meet its labour recruitment and retention goals, as well as its ability to achieve sufficient representation of historically disadvantaged South Africans in its management positions; failure of Sibanye-Stillwater’s information technology, communications and systems; the adequacy of Sibanye-Stillwater’s insurance coverage; social unrest, sickness or natural or man-made disaster at informal settlements in the vicinity of some of Sibanye-Stillwater’s South African-based operations; and the impact of HIV, tuberculosis and the spread of other contagious diseases, including global pandemics.
Further details of potential risks and uncertainties affecting Sibanye-Stillwater are described in Sibanye-Stillwater’s filings with the Johannesburg Stock Exchange and the United States Securities and Exchange Commission, including the 2022 Integrated Report and the Annual Financial Report for the fiscal year ended 31 December 2022 on Form 20-F filed with the United States Securities and Exchange Commission on 24 April 2023 (SEC File no. 333-234096).
These forward-looking statements speak only as of the date of the content. Sibanye-Stillwater expressly disclaims any obligation or undertaking to update or revise any forward-looking statement (except to the extent legally required). These forward-looking statements have not been reviewed or reported on by the Group’s external auditors.
Non-IFRS Measures
The information contained in this document may contain certain non-IFRS measures, including, among others, adjusted EBITDA, AISC, AIC, sustaining capital, Nickel equivalent sustaining cost and average equivalent zinc concentrate price. These measures may not be comparable to similarly-titled measures used by other companies and are not measures of Sibanye-Stillwater’s financial performance under IFRS. These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Sibanye-Stillwater is not providing a reconciliation of the forecast non-IFRS financial information presented in this document because it is unable to provide this reconciliation without unreasonable effort. These forecast non-IFRS financial information presented have not been reviewed or reported on by the Group’s external auditors.
Websites
References in this document to information on websites (and/or social media sites) are included as an aid to their location and such information is not incorporated in, and does not form part of, this document.