Sibanye Stillwater Limited - Operating Update Quarter ended 30 September 2022
Johannesburg, 3 November 2022: Sibanye Stillwater Limited (Sibanye-Stillwater or the Group - https://www.commodity-tv.com/ondemand/companies/profil/sibanye-stillwater-ltd/) (JSE: SSW and NYSE: SBSW) is pleased to provide an operating update for the quarter ended 30 September 2022, Group financial results are only provided on a six-monthly basis.
SALIENT FEATURES - QUARTER ENDED 30 SEPTEMBER 2022 (Q3 2022) COMPARED TO QUARTER ENDED 30 SEPTEMBER 2021 (Q3 2021)
- Production build-up to planned levels at the SA gold and Stillwater operation achieved during October 2022
- SA PGM operations impacted by Eskom load curtailment
- Five-year wage agreements concluded at the SA PGM Marikana and Rustenburg operations
- The K4 project is slightly ahead of budget and schedule and delivered initial 4E PGM production of 914 4Eoz during Q3 2022
- Increase stake in Keliber to 84.96%, securing majority control of the advanced Finnish lithium hydroxide project
US dollar
SA rand
Quarter ended
Quarter ended
Sep 2021
Jun 2022
Sep 2022
KEY STATISTICS
Sep 2022
Jun 2022
Sep 2021
GROUP
1,017
571
496
US$m
Adjusted EBITDA1
Rm
8,455
8,897
14,877
14.63
15.59
17.05
R/US$
Average exchange rate using daily closing rate
AMERICAS REGION
US PGM underground operations2,3
144,325
107,650
85,889
oz
2E PGM production2,3
kg
2,671
3,348
4,489
2,114
1,828
1,811
US$/2Eoz
Average basket price
R/2Eoz
30,878
28,499
30,924
179
122
52
US$m
Adjusted EBITDA1
Rm
895
1,909
2,622
968
1,503
1,815
US$/2Eoz
All-in sustaining cost4
R/2Eoz
30,947
23,437
14,156
US PGM recycling2,3
179,765
170,462
141,560
oz
3E PGM recycling2,3
kg
4,403
5,302
5,591
4,386
2,799
3,378
US$/3Eoz
Average basket price
R/3Eoz
57,595
43,636
64,167
30
21
22
US$m
Adjusted EBITDA1
Rm
371
335
436
SOUTHERN AFRICA (SA) OPERATIONS
PGM operations3
500,073
412,958
432,143
oz
4E PGM production3,5
kg
13,441
12,844
15,554
2,895
2,675
2,479
US$/4Eoz
Average basket price
R/4Eoz
42,269
41,699
42,347
721
578
489
US$m
Adjusted EBITDA1
Rm
8,332
9,012
10,542
1,093
1,183
1,127
US$/4Eoz
All-in sustaining cost4
R/4Eoz
19,211
18,438
15,992
Gold operations
293,761
54,592
204,672
oz
Gold produced
kg
6,366
1,698
9,137
1,781
1,877
1,723
US$/oz
Average gold price
R/kg
944,316
940,634
837,799
97
(156)
(48)
US$m
Adjusted EBITDA1
Rm
(811)
(2,426)
1,421
1,692
5,032
2,207
US$/oz
All-in sustaining cost4
R/kg
1,210,049
2,522,190
796,008
EUROPEAN REGION
Battery Metals - Sandouville refinery
—
2,919
1,653
tNi
Nickel Production6
tNi
1,653
2,919
—
—
30,261
22,553
US$/tNi
Nickel equivalent average basket price7
R/tNi
384,525
471,774
—
—
9
(14)
US$m
Adjusted EBITDA1
Rm
(246)
148
—
—
26,856
30,185
US$/tNi
Nickel equivalent sustaining cost8
R/tNi
514,654
418,683
—
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 Total US and SA PGM, Total SA PGM and Marikana - Quarters"
6 The nickel production at the Sandouville 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 ton is the total nickel revenue adjusted for other income - non-product sales divided by the total nickel equivalent tons sold
8 See "Salient features and cost benchmarks - Quarters Sibanye-Stillwater Sandouville Refinery" for a reconciliation of cost of sales before amortisation and depreciation to nickel equivalent sustaining cost
Stock data for the Quarter ended 30 September 2022
JSE Limited - (SSW)
Number of shares in issue
Price range per ordinary share (High/Low)
R35.74 to R43.67
- at 30 September 2022
2,830,238,200
Average daily volume
11,117,281
- weighted average
2,830,102,345
NYSE - (SBSW); one ADR represents four ordinary shares
Free Float
99 %
Price range per ADR (High/Low)
US$8.16 to US$10.66
Bloomberg/Reuters
SSWSJ/SSWJ.J
Average daily volume
3,251,823
OVERVIEW FOR THE QUARTER ENDED 30 SEPTEMBER 2022 COMPARED TO QUARTER ENDED 30 SEPTEMBER 2021
The Group has successfully navigated a challenging period, with production from the SA gold and the Stillwater operation building up during Q3 2022 from the operational disruptions which occurred in the first half of the year and returning to normalised levels of production during October 2022 at both of these operations. The SA PGM operations continued to deliver consistent operational results despite challenges associated with Eskom load curtailment and the increased incidence of copper cable theft, which disrupted operations during Q3 2022.
Significantly, a five-year wage agreement has been reached with the representative unions at the Rustenburg and Marikana operations. This historic agreement, which was achieved peacefully, timeously and without the disruption experienced during the SA gold operations' wage negotiations earlier this year, is expected to set the scene for five years of relative stability.
Despite deterioration in the global political and economic environment during the course of 2022, precious metals prices have remained well supported and within historically high price ranges. Greater operational stability across the Group, should enable improved cost management for 2023, ensuring more stable earnings and cash flow and consolidating the already robust Group financial position.
SAFE PRODUCTION
The improvement in Group safety indicators following reprioritisation of safety initiatives from mid-2021 and subsequent roll out of the "Fatal Elimination Strategy" in January 2022, has been maintained during Q3 2022. The Group fatal injury frequency rate (FIFR) (per million hours worked), excluding Sandouville (which was incorporated from Q1 2022) improved from 0.07 for Q3 2021 to 0.05 for Q3 2022, with the serious injury frequency rate (SIFR) improving by 10% to 2.83 from 3.13 for Q3 2021. The Group lost day injury frequency rate (LDIFR) also improved, by 9%, from 5.08 to 4.65, with the Group total recordable injury frequency rate (TRIFR) improving 13% year-on-year, from 6.20 to 5.40.
Not only has the sustained focus on and implementation of the "Fatal Elimination Strategy" led to reduced fatalities, but also to improved injury metrics. Group fatalities have reduced by 64%, from eleven for the first nine months of 2021, to four for the same period in 2022. The SA gold and US PGM operations also recorded another fatality free quarter despite the risks associated with resuming operations. This follows Q2 2022, which was fatality free Group wide. Sadly, two fatalities were suffered at the SA PGM operations, which reaffirm the need to maintain a relentless safety focus across the Group.
On 29 August 2022 at the Saffy shaft, Marikana operation, Mr. S. Tyobeka, a general worker, was involved in a winch and rigging related incident. On 30 August 2022 a second fatality occurred at the Rowland shaft, Marikana operation, when Mr. M. Msiya, a fitter, was involved in a mud rush incident. The board and management of Sibanye-Stillwater extend heartfelt condolences to the families, friends and colleagues of Mr Tyobeka and Mr Msiya. Both incidents are being investigated with all relevant stakeholders and appropriate support is being provided to the families of the deceased.
US PGM operations
Mined 2E PGM production from the US PGM operations of 85,889 2Eoz for Q3 2022 was 40% lower than for Q3 2021, primarily as a result of the suspension of production at the Stillwater operation (Stillwater East and Stillwater West mine) for seven weeks following regional flooding in Montana in mid-June 2022. The East Boulder operation was issued a Mine Health and Safety Administration (MSHA) stop order which was in full effect from 18 to 29 September 2022, due to reporting of elevated nitrous oxide exposures. Subsequent investigations highlighted gas testing equipment calibration issues and contaminated fuel as the primary concerns. This order remains in force, with most restrictions eased following comprehensive feedback to MSHA on the investigation findings. Following thorough investigation, the Group is assessing the introduction of battery powered equipment and the establishment of an additional intake airway.
As per the revised plan presented to the market during August 2022, lower planned production across the US PGM operations year-on-year complicates comparisons (see https://www.sibanyestillwater.com/features/us-pgm-operations-review/) for detail.
Tonnes milled for Q3 2022 totalled 241kt, 37% lower than for Q3 2021 with plant head grade of 12.2g/t for Q3 2022 , 5% lower than for Q3 2021. The Stillwater operations grade was affected by feeding and milling low grade reef sand to ensure adequate volumes of backfill for stope support purposes post the flood event. Ongoing attrition amongst more experienced miners and geological and geotechnical complexity affecting productivity at East Boulder is receiving increased management and supervisory input. Following the successful ramp-up the grade normalised at the Stillwater operation in September with the East Boulder operation's grade expected to normalise in November 2022.
The Stillwater operation resumed production in a phased manner from the end of July 2022, with production rates normalising during October 2022. Production of 47,423 2Eoz, was 47% lower than for Q3 2021, with production approximately 34,000 2Eoz lower due to the ramp up after the flooding event.
Production from East Boulder of 38,467 2Eoz, was 29% lower than for Q3 2021, primarily due to the MSHA stop order, compounded by the issues detailed in the US PGM operations' repositioning presented in August 2022.
2E PGM sold for Q3 2022 of 69,534 2Eoz, was 48% lower year-on-year and 19% lower than 2E PGM mined production for the quarter, due to the timing of deliveries in September 2022 which will reflect in sold ounces for Q4 2022.
AISC of US$1,815/2Eoz (R30,947/2Eoz) for Q3 2022 was 88% higher than for Q3 2021 (US$968, R14,156/2Eoz) due to lower production and inflationary cost pressures, with ORD capital increasing by 110% year-on-year to US$42 million (R723 million) and sustaining capital increasing by 76% to US$17 million (R293 million), primarily as a result of the repositioning of the US underground operations, with Stillwater East expenditure which had previously been classified as project capital now reclassified as ORD and sustaining capital. Costs at the Stillwater operation have been impacted by additional once-off flood recovery costs including road, piping and infrastructure repairs. At East Boulder the availability of skills continues to be a challenge and therefore costs relating to contractors have risen. Continued inflationary pressure on stores and premiums on contractor costs also contributed to the higher costs.
Implementation of the repositioned operational plan and accelerated development to restore operational flexibility, will result in elevated costs in the medium term. As production begins to build up again and stope face availability improves, costs are expected to reduce significantly with AISC planned to reduce to below US$1,000 (real 2022 terms) from 2026.
Source: Company information available at https://www.sibanyestillwater.com/features/us-pgm-operations-review/
Notes: Forward costs are represented in 2022 real terms; AISC: all-in sustaining cost; AIC: all-in cost
Total capital expenditure increased by 22% year-on-year for Q3 2022 to US$85 million (R1,450 million), with the increase in ORD and sustaining capital comprising 70% or US$60 million (R1,016 million) of this and project capital 36% lower at US$25 million(R434 million) in line with the reduced spending on the Stillwater East project and change in the classification of development from growth capital to ORD. A major milestone for the quarter was the completion of the 56 East Footwall level which now ties into the Benbow decline, completed on 16 September 2022.
PGM recycling operations
Logistical issues affecting delivery of autocatalyst material highlighted during H1 2022 have continued into Q3 2022 and it is estimated that there has been a significant reduction in receipts year-on year due to logistics issues and lower scrappage of cars, with higher 3E PGM prices in Q3 2021 also incentivising used auto catalyst collection and strong scrap flows. The recycling operations fed an average of 17.7 tonnes per day (tpd) for Q3 2022, 22% lower than for the comparable period in 2021. During Q3 2022, 1,548 tonnes of recycle material was received while 1,630 tonnes was treated. At the end of Q3 2022, approximately 42 tonnes of recycle inventory was on hand, an 82 tonne decrease versus the Q2 2022 ending inventory of 124 tonnes at the end of June 2022.
SA PGM operations
4E PGM production from the SA PGM operations was impacted by unprecedented power curtailment imposed by Eskom during Q3 and a significant rise in copper cable theft. In addition, reduced output has been planned at the Siphumelele shaft owing to increased levels of seismicity. Pleasingly, mining has safely progressed through the challenging ground conditions associated with the Hex River Fault at the Bathopele mine, which has negatively impacted production during Q2 2022 and Q3 2022 and is expected to normalise by the end of Q4 2022.
Production of 432,143 4Eoz (excluding third party purchase of concentrate (PoC) for Q3 2022 was 14% lower than for the comparable period in 2021, although production was 5% higher than for Q2 2022 despite the increased load curtailment. Severe load shedding imposed by Eskom during September 2022 necessitated the curtailment of concentrator capacity across the SA PGM operations, impacting processed output and sales for the quarter. Underground mining was less impacted by the load curtailment, resulting in underground ore containing approximately 33,000 4Eoz being stockpiled on surface by the end of the quarter.
Third party PoC processed at the Marikana smelting and refining operations of 16,720 4Eoz was 22% higher year-on-year although the toll concentrate processed during Q3 2021 fell away due to the tolling contract concluding. Total 4E PGM production (including PoC) was 13% lower year-on-year at 448,863 4Eoz. Had the 33,000 4Eoz stockpile of mined material been processed, we estimate PGM production from SA PGM operations (including PoC) would have been around 482,000 4Eoz, compared to 513,778 4Eoz for Q3 2021.
AISC (excluding PoC) for Q3 2022 of R19,211/4Eoz (US$1,127/4Eoz), was 20% higher than for Q3 2021 at R15,992/4Eoz (US$1,093/4Eoz) primarily due to lower production, lower by-product credits and inflationary cost pressures. AISC (including PoC) of R20,143/4Eoz (US$1,181/4Eoz) was also 21% higher year-on-year, with ORD 33% higher, largely as a result of the inclusion of K4 development and 6% lower by-product credits due to lower production and specific third party processing agreements concluding.
4E PGM production from the Rustenburg operation for Q3 2022 of 179,438 4Eoz, was 2% lower year-on-year despite operational challenges including severe Eskom load curtailment. Surface production increased by 43% due to processing of smelter slag from a third party with underground production decreasing by 7% primarily due to power disruptions from Eskom load curtailment and cable theft. Production from the Bathopele mine continued to be impacted by mining through the Hexriver fault and loss of available face at Siphumelele due to seismicity. The Hexriver fault has largely been traversed and production is expected to improve from Q4 2022. A stockpile of ore containing approximately 6,000 4Eoz built up as a result of Eskom load curtailment, impacted Q3 2022 production and unit costs, contributing to a 4% year-on-year increase in AISC to R18,435/4Eoz (US$1,081/4Eoz). In addition to this, a 31% increase in by-product credits (driven mainly by higher chrome revenue) more than offset a 15% increase in ORD and a 22% increase in sustaining capital year-on-year.
4E PGM production from the Kroondal operation of 48,120 4Eoz for Q3 2022 was 21% lower than for the comparable period in 2021. This declining production output is expected due to the gradual ramp-down of the Simunye shaft, compounded by the load curtailment with Kroondal building an ore stockpile containing approximately 7,000 4Eoz at the end of the quarter. AISC of R15,399/4Eoz (US$903/4Eoz) was 25% higher than for Q3 2021 primarily due to lower production and stockpile being built up at the end of the quarter.
4E PGM production for Q3 2022 from the Marikana operation (excluding third party PoC) of 163,596 4Eoz, was 23% lower than for Q3 2021, with underground production 24% lower and surface production 11% lower. Underground production was impacted by safety stoppages, cable theft and Eskom load curtailment. 4E PGM production (including PoC) of 180,316 4Eoz for Q3 2022 was 20% lower than for Q3 2021. Third party concentrate processed at Marikana increased by 22% year-on-year to 16,720 4Eoz. The Marikana operation ended the quarter with an ore stockpile containing approximately 20,000 4Eoz. Had this material been processed, PGM production from Marikana (incl PoC) would have been around 200,000 4Eoz, compared to 226,591/4Eoz for Q3 2021. AISC (excluding third party PoC) for Q3 2022 of R21,785/4Eoz (US$1,278/4Eoz), was 37% higher than for Q3 2021, primarily due to lower production, inflationary costs, ORD (+44%) and lower by-product credits (-27%). Key inflationary costs were due to the high cost of steel, ammonia, chemicals, fuel and related products, with AISC (including PoC) also increasing by 37% to R23,719/4Eoz (US$1,391/4Eoz) due to higher purchase of concentrate costs (+33%). ORD costs increased with the ramp-up of K4 shaft as well as an increase in off-reef development at other shafts.
Attributable 4E PGM production from Mimosa of 28,670 4Eoz was in line with production for Q3 2021. AISC increased by 18% year-on-year to US$1,234/4Eoz (R21,032/4Eoz) primarily due to a 119% increase in sustaining capital expenditure associated with the approved life of mine extension project, which includes optimisation of the plant, construction of a new tailings storage facility and life of mine extension development, which is expected to be completed in Q1 2024.
Attributable 4E PGM production from Platinum Mile of 12,319 4Eoz was 10% lower year-on-year due to 6% less tons processed, a decrease in the built-up head grade and lower recoveries. AISC at Platinum Mile increased by 9% year-on-year to R11,283/4Eoz (US$662/4Eoz).
Chrome sales from the SA PGM operations for Q3 2022 of approximately 560kt were in line with Q3 2021. The chrome price received increased by 33% to US$227/tonne (Q3 2021: US$171/tonne), underpinning a 37% increase in chrome revenue.
Capital expenditure of R1,263 million (US$74 million) for Q3 2022 was 33% higher than for the corresponding period in 2021 with ORD 33% higher at R590 million (US$35 million), sustaining capital 4% higher at R465 million (US$27 million) and project capital 271% higher at R208 million (US$12 million). The increase in project capital is linked to the K4 project at the Marikana operation during Q3 2022.
The K4 Project
The K4 project remains on schedule. First ore was hoisted during H1 2022 with first production of 914 4Eoz achieved during Q3 2022. Development and reef tonnes hoisted was significantly higher for Q3 2022 than for Q2 2022. Project capital expenditure was R207 million (US$12 million) in Q3 2022 (R56 million (US$4 million) in Q3 2021) project capital expenditure of R612 (US$48 million) million for the first three months.
Five-year wage agreement secures operational stability
On 28 October 2022 a five-year wage agreement was reached with the representative unions at the Marikana and Rustenburg operations, marking the conclusion of annual wage negotiations for 2022 to 2027.
The wage agreement is consistent with the recent inflation linked wage increases concluded in June 2022 at the SA gold operations. The wage agreement comprises annual wage increases of 6% and above for bargaining unit employees (year one: R1,050 per month or 6%, year two: R1,100 per month or 6%, year three: R1,250 per month or 6%, year four: R1,300 per month or 6% and year five: R1,400 per month or 6%). Miners and artisans will receive average annual wage increases of 6% per annum for each of the five years.
The annual wage and benefit increases that have been agreed are in line with inflation and represents a total estimated average increase in the wage bill, including all benefits, over the five-year period of approximately 6.3% per annum, which is in line with inflation and the wage agreement reached at the SA gold operations in June 2022. Importantly the agreement secures a five-year period of greater stability at the Rustenburg and Marikana operations and reduced risk of labour related disruptions, which will be beneficial for all stakeholders.
SA gold operations
The build up to normalised levels of production at the SA gold operations following the industrial action from 9 March to 13 June 2022, proceeded according to plan. Underground production commenced on 1 July after medical screening, training and acclimatisation of returning employees was concluded, and comprehensive underground safety audits were completed, with work crews resuming operating activities in a phased manner. Normalised production rates were achieved during October 2022. As a result, we believe that comparison of operational statistics has limited value for this period.
Production from the SA gold operations (including DRDGOLD) for Q3 2022 of 6,366kg (204,672oz) was 30% lower compared with Q3 2021. Gold production in Q3 2022 (excluding DRDGOLD) decreased by 36% to 4,913kg (157,957oz) due to the phased resumption of safe production over the quarter.
AISC (including DRDGOLD) of R1,210,049/kg (US$2,207/oz) was 52% higher than for Q3 2021 with AISC (excluding DRDGOLD) 64% higher at R1,348,531/kg (US$2,460/oz). The increase was a direct function of the 39% decrease in gold sold year-on-year with a working cost and SIB capital increasing by 4% and 11% respectively, offset by a 35% decrease in ORD due to the reduced mining activity.
Normalisation of production over an extended period is expected to result in a significant reduction in unit cost during 2023. For Q3 2021, AISC (excluding DRDGOLD) averaged R822,144/kg (US$1,748/oz).
Capital expenditure for Q3 2022 (excluding DRDGOLD) increased by 10% to R1,188 million (US$70 million) compared to the same period in 2021 due to a four-fold increase in project capital which offset a 35% decrease in ORD to R472 million (US$28 million). ORD declined due to lower development metres in 2022 compared to 2021 as a result of the slow start-up process after the industrial action. SIB capital increased 11% to R296 million (US$17 million) mainly due to expenditure on regulatory lamp room upgrades at all operations and electrical and winder upgrades which commenced during the industrial action when the facilities and equipment were not in use. Project capital increased to R420 million (US$25 million) with R315 million (US$18 million) spent on the Burnstone project and R105 million (US$6 million) on the Kloof shaft deepening project.
Underground production from the Driefontein operation decreased by 34% to 1,640kg (52,727oz) compared to the same period in 2021 as a result of the phased return to work post industrial action, while surface production of 50kg (1,608oz) was 25% lower due to depletion of surface reserves. AISC of R1,215,013/kg (US$2,216/oz) was 54% higher than for Q3 2021 primarily as a result of the 35% decrease in gold sold.
Underground production from the Kloof operation decreased by 50% to 1,393kg (44,786oz) with the underground yield 27% lower due to a slower start at the higher grade 4 and 8 shafts. Production from surface sources of 190kg (6,109oz), was 25% lower year-on-year due to a slow onboarding of a surface transport contractor after the strike as well as depletion of the surface rock dump reserves. AISC of R1,527,554/kg (US$2,787/oz) was 80% higher than for Q3 2021, primarily due to 50% lower gold sold as a result of the phased build-up after the industrial action.
Underground production of 1,321kg (42,471oz) in Q3 2022 from the Beatrix operation was 26% lower than Q3 2021 with tonnes milled only 11% lower year-on-year despite the industrial action and the gradual return to work. This was due to the processing of underground ore which was stockpiled from late January 2022 while precautionary reinforcement and buttressing work was being done on the Beatrix tailings storage facility. The underground yield declined by 17% due to less production from the higher grade 4 Shaft which was affected by a loss of face length and safety stoppages. Gold production from surface sources was suspended for the period as the focus was placed on milling underground stockpile tonnages first. AISC of R1,424,025/kg (US$2,598/oz) was 72% higher than Q3 2021, primarily due to 35% less gold sold during the production build-up after the industrial action and higher working cost due to above inflationary increases, and the additional cost associated with ramping up the operations to normalised production levels.
Surface gold production from Cooke operations increased by 10% to 319kg (10,256oz) due to slightly increased tonnes milled and yield with AISC increasing by 9% year-on-year to R861,736/kg (US$1,572/oz).
DRDGOLD surface tonnes milled decreased by 4% year-on-year, however with a 4% increase in grade, gold production of 1,453kg (46,715oz) remained in line with Q3 2021. AISC of R765,603/kg (US$1,397/oz) increased by 18% year-on-year primarily due to industry wide inflationary effects and a 51% increase in sustaining capital, reflecting investment in new pump stations and piping at the ERGO operations. DRDGOLD project capital also increased from R14 million (US$1 million) in Q3 2021 to R53 million (US$3 million) in Q3 2022 with spending on the solar power plant and the Far West Gold Recoveries project at the Driefontein 2 reclamation plant.
Consultations regarding possible restructuring of Beatrix 4 shaft and Kloof 1 plant
On 1 November 2022, 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 ongoing losses experienced at the Beatrix 4 shaft and the impact of depleting mineral reserves to the Kloof 1 plant.
The life of the Beatrix 4 shaft was previously prolonged, following S189 consultations in 2017, which, through the successful adoption of productivity enhancement and cost containment measures implemented following consultation with stakeholders, enabled it to remain in operation as long as it made a profit, on average, over any continuous period of three months (after accounting for AISC).
It is anticipated that the consultation process will reduce the number of employees that may potentially be retrenched through the implementation of possible retrenchment avoidance measures, including natural attrition, retirements, voluntary retrenchment and the transfer of suitably skilled employees to vacant positions.
We are committed to minimising the impact of the proposed restructuring and will engage with all relevant stakeholders in an effort to avoid job losses, while attempting to limit the impact on the remainder of the operations and employees at the SA gold operations and the sustainability of the Group.
The Burnstone project
Progress on the project was adversely affected by the industrial action during H1 2022, resulting delays in underground development. In addition due to logistics issues, there have been delays in the delivery of critical spares from Europe. Labour procurement has been slower than expected due to the unavailability of skilled operators from surrounding areas. Project capital guidance remains unchanged at R1.1 billion (US$73 million) with R644 million (US$40 million) spent to date (R329 million (US$21 million) in H1 2022 and R315 million (US$18 million) in Q3 2022).
Sandouville nickel refinery
The integration of the Sandouville nickel refinery into the Group continued during Q3 2022. Sandouville faced various operational and logistics issues during Q3 2022, including solvent supply constraints, and engineering failures in July 2022 which temporarily took 40% of capacity offline. In addition, a four week technical shutdown commenced in September 2022 with operations recommencing in mid October 2022. The Sandouville nickel refinery produced 1,003 tonnes of nickel metal in Q3 2022 (2,251 tonnes in Q2 2022), 650 tonnes of nickel salts (668 tonnes in Q2 2022) and 37 tonnes of cobalt chloride (78 tonnes in Q2 2022) at a nickel equivalent sustaining cost of US$30,185/tNi (R514,654/tNi), 12% higher than Q2 2022.
Integration is focused on: recruitment, implementing rigorous maintenance programs and increasing critical spares. The focus is on continuity and stability of production by de-bottlenecking the plant to increase throughput to nameplate capacity of c.12kt of Ni metal, c.4kt of Ni salts and c.600t of CoCl2 by 2026.
Recent increases in electricity and gas prices have reduced the gross operating margin and pose an ongoing risk to costs especially the future supply and availability of European energy and gas during the upcoming winter season.
In parallel with the current plant production, Sibanye-Stillwater continues to advance pre-feasibility studies on the following three processes, expected to be completed during 2023:
- Producing battery grade nickel sulphate with the intention of producing 44,000 tonnes per year in two stages
- PGM autocatalyst recycling using European feedstocks
- Battery metals recycling
Further announcements will be made on these developments when the studies have been concluded.
STRATEGIC DEVELOPMENTS
Increased shareholding in Keliber Oy (Keliber)
On 30 June 2022, the Group announced its intention to exercise its pre-emptive right to increase its shareholding in Keliber to 50% plus one share for a cash consideration of approximately €146 million. A simultaneous voluntary cash offer was made to minority shareholders of Keliber, other than the Finnish Minerals Group, which increased Sibanye-Stillwater's shareholding in Keliber to an effective 84.96% for a further cash consideration of approximately €189.8 million excluding Finnish transfer tax of €2.3 million.
The Finnish Minerals Group, a Finnish State-owned holding and development company which manages the state’s mining industry shareholdings and is the second largest shareholder in Keliber behind Sibanye-Stillwater has a current effective holding of 13.90% in Keliber with the other remaining minority shareholders holding an effective 1.14%.
With the voluntary offer now concluded, a capital raise by Keliber will be executed to achieve Keliber’s desired debt to equity ratio. The maximum total investment by Sibanye-Stillwater in the proposed capital raise is around €104 million depending on the extent to which minorities and the Finnish Minerals Group participate. Conventional debt facilities are currently under discussion with third party lenders to at least match the €250 million equity contribution to fully fund construction of the project.
Keliber is aiming to be the first fully integrated lithium producer in Europe supplying approximately 15,000 tonnes of lithium hydroxide monohydrate per annum into the developing European battery industry. A recent definitive feasibility study and a 31% increase in ore reserves has confirmed the quality and inherent value of the Keliber project with the fundamental outlook for the lithium market improving significantly since Sibanye-Stillwater acquired its initial stake in Q1 2021.
The transactions secure a significant and controlling exposure for the Group in Keliber, which offers significant growth potential and a valuable footprint in a supportive and attractive jurisdiction to supply critical battery metals into the burgeoning European battery industry.
OPERATING GUIDANCE FOR THE 2022 YEAR1
As previously announced on 11 August 2022, forecast mined 2E PGM production from the US PGM operations for 2022 was revised to between 445,000 2Eoz and 460,000 2Eoz, with AISC of between US$1,380/2Eoz and US$1,425/2Eoz due to the impact of the regional flood and the repositioning of the operations following the optimisation planning carried out during H1 2022. Due to disruptions experienced during Q3 2022 and ongoing issues with employee attrition and skills availability, production for 2022 is likely to be at the lower end of the range provided with costs at the upper end of the range. Capital expenditure is forecast to be between US$275 million and US$285 million (including US$70 million of project capital).
As a result of the challenges highlighted with collection and receipt of used autocatalysts, recycling feed rates have declined significantly and are likely to remain constrained until year end. The US Recycling operations are therefore forecast to feed between 610,000 and 625,000 3Eoz for 2022, with minimal capital expenditure.
Forecast 4E PGM production from the SA PGM operations2 for 2022 remains at between 1,750,000 4Eoz and 1,850,000 4Eoz with AISC between R18,500/4Eoz and R19,200/4Eoz (US$1,233/4Eoz and US$1,280/4Eoz). Capital expenditure is forecast at R4.8 billion (US$320 million) including R950 million (US$63 million) for the K4 project during 2022.
Guidance for gold production from the managed SA gold operations (excluding DRDGOLD) is maintained at between 14,000kg (450,000oz) and 14,500kg (466,000oz) with AISC between R1,390,000/kg (US$2,880/oz) and R1,470,000/kg (US$3,060/oz). Capital expenditure is forecast at R3.9 billion (US$260 million), including R1.1 billion (US$73 million) on the Burnstone project and R270 million (US$18 million) on the Kloof 4 deepening project.
1 The dollar cost conversions for 2022 are based on an average exchange rate of R15.00/US$
2 SA PGM guidance includes third party PoC
NEAL FRONEMAN
CHIEF EXECUTIVE OFFICER
SALIENT FEATURES AND COST BENCHMARKS - QUARTERS
US and SA PGM operations
US OPERA-TIONS
SA OPERATIONS
Total US and SA PGM1
Total US PGM
Total SA PGM1
Rustenburg
Marikana1
Kroondal
Plat Mile
Mimosa
Attributable
Under-
ground2
Total
Under-
ground
Surface
Under-
ground
Surface
Under-
ground
Surface
Attribu-table
Surface
Attribu-table
Production
Tonnes milled/treated
000't
Sep 2022
9,625
241
9,383
4,303
5,081
1,666
1,418
1,515
927
782
2,736
340
Jun 2022
9,641
299
9,342
4,328
5,014
1,552
1,385
1,602
952
814
2,677
360
Sep 2021
10,747
384
10,363
4,964
5,399
1,778
1,442
1,889
1,044
945
2,913
352
Plant head grade
g/t
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
Jun 2022
2.25
12.41
1.92
3.23
0.79
3.26
0.95
3.57
0.87
2.39
0.68
3.49
Sep 2021
2.46
12.92
2.08
3.40
0.86
3.37
1.17
3.89
0.87
2.40
0.71
3.58
Plant recoveries
%
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
Jun 2022
74.79
90.93
71.59
84.87
24.75
86.28
36.61
86.90
23.91
82.81
16.50
73.06
Sep 2021
75.69
90.62
72.27
85.07
25.78
86.38
31.72
86.92
25.85
83.77
20.64
71.01
Yield
g/t
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
Jun 2022
1.68
11.28
1.37
2.74
0.20
2.81
0.35
3.10
0.21
1.98
0.11
2.55
Sep 2021
1.86
11.71
1.50
2.89
0.22
2.91
0.37
3.38
0.22
2.01
0.15
2.54
PGM production3
4Eoz - 2Eoz
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
Jun 2022
520,608
107,650
412,958
381,445
31,513
140,344
15,487
159,793
6,368
51,797
9,658
29,511
Sep 2021
644,398
144,325
500,073
461,593
38,480
166,400
17,206
205,340
7,548
61,083
13,726
28,770
PGM sold4
4Eoz - 2Eoz
Sep 2022
471,994
69,534
402,460
137,246
16,578
160,115
48,120
12,319
28,082
Jun 2022
521,579
127,047
394,532
111,494
17,887
176,830
51,797
9,658
26,866
Sep 2021
592,631
132,637
459,994
144,461
16,088
196,251
61,083
13,726
28,385
Price and costs5
Average PGM basket price6
R/4Eoz - R/2Eoz
Sep 2022
40,485
30,878
42,269
43,331
34,278
42,033
44,972
33,714
33,412
Jun 2022
38,309
28,499
41,699
42,844
28,408
42,147
44,461
30,080
32,363
Sep 2021
39,662
30,924
42,347
43,089
28,266
42,247
46,357
34,642
33,392
Average PGM basket price6
US$/4Eoz - US$/2Eoz
Sep 2022
2,374
1,811
2,479
2,541
2,010
2,465
2,638
1,977
1,960
Jun 2022
2,457
1,828
2,675
2,748
1,822
2,703
2,852
1,929
2,076
Sep 2021
2,711
2,114
2,895
2,945
1,932
2,888
3,169
2,368
2,282
Operating cost7
R/t
Sep 2022
1,043
7,504
871
1,764
279
1,459
1,049
58
1,493
Jun 2022
1,037
6,478
856
1,843
229
1,374
1,053
53
1,292
Sep 2021
928
4,932
775
1,575
244
1,233
894
48
1,173
Operating cost7
US$/t
Sep 2022
61
440
51
103
16
86
62
3
88
Jun 2022
67
416
55
118
15
88
68
3
83
Sep 2021
63
337
53
108
17
84
61
3
80
Operating cost7
R/4Eoz - R/2Eoz
Sep 2022
19,793
21,085
19,518
18,986
16,071
21,767
17,041
12,907
17,719
Jun 2022
19,593
17,993
20,042
20,378
20,469
21,118
16,545
14,703
15,757
Sep 2021
15,673
13,123
16,454
16,833
20,458
16,990
13,834
10,200
14,355
Operating cost7
US$/4Eoz - US$/2Eoz
Sep 2022
1,161
1,237
1,145
1,114
943
1,277
999
757
1,039
Jun 2022
1,257
1,154
1,286
1,307
1,313
1,355
1,061
943
1,011
Sep 2021
1,071
897
1,125
1,151
1,398
1,161
946
697
981
All-in sustaining cost8
R/4Eoz - R/2Eoz
Sep 2022
21,271
30,947
19,211
18,435
21,785
15,399
11,283
21,032
Jun 2022
19,534
23,437
18,438
18,129
20,107
14,904
13,667
16,062
Sep 2021
15,561
14,156
15,992
17,701
15,933
12,327
10,345
15,294
All-in sustaining cost8
US$/4Eoz - US$/2Eoz
Sep 2022
1,248
1,815
1,127
1,081
1,278
903
662
1,234
Jun 2022
1,253
1,503
1,183
1,163
1,290
956
877
1030
Sep 2021
1,064
968
1,093
1,210
1,089
843
707
1045
All-in cost8
R/4Eoz - R/2Eoz
Sep 2022
22,582
36,000
19,726
18,441
23,051
15,399
11,283
21,032
Jun 2022
20,389
25,397
18,983
18,129
21,365
14,904
13,667
16,062
Sep 2021
16,609
18,195
16,123
17,701
16,224
12,327
10,345
15,294
All-in cost8
US$/4Eoz - US$/2Eoz
Sep 2022
1,324
2,111
1,157
1,082
1,352
903
662
1,234
Jun 2022
1,308
1,629
1,218
1,163
1,370
956
877
1,030
Sep 2021
1,135
1,244
1,102
1,210
1,109
843
707
1,045
Capital expenditure5
Ore reserve development
Rm
Sep 2022
1,313
723
590
194
396
—
—
—
Jun 2022
1,196
641
555
173
382
—
—
—
Sep 2021
739
296
443
168
275
—
—
—
Sustaining capital
Rm
Sep 2022
758
293
465
140
242
80
3
258
Jun 2022
640
211
429
148
208
68
5
181
Sep 2021
592
143
449
115
268
58
8
118
Corporate and projects
Rm
Sep 2022
642
434
208
1
207
—
—
—
Jun 2022
412
211
201
—
201
—
—
—
Sep 2021
639
583
56
—
56
—
—
—
Total capital expenditure
Rm
Sep 2022
2,713
1,450
1,263
335
845
80
3
258
Jun 2022
2,248
1,063
1,185
321
791
68
5
181
Sep 2021
1,970
1,022
948
283
599
58
8
118
Total capital expenditure
US$m
Sep 2022
159
85
74
20
50
5
—
15
Jun 2022
144
68
76
21
51
4
—
12
Sep 2021
135
70
65
19
41
4
1
8
Average exchange rate for the quarters ended 30 September 2022, 30 June 2022 and 30 September 2021 was R17.05/US$, R15.59/US$ and R14.63/US$, respectively
Figures may not add as they are rounded independently
1 The Total US and SA PGM, Total SA PGM 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 Total US and SA PGM, Total SA PGM and Marikana - Quarters” and “Reconciliation of AISC and AIC excluding third party PoC for Total US and SA PGM, Total SA PGM 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 Total US and SA PGM 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
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”
Mining - PGM Prill split including third party PoC, excluding recycling operations
GROUP PGM
SA OPERATIONS
US OPERATIONS
Sep 2022
Jun 2022
Sep 2021
Sep 2022
Jun 2022
Sep 2021
Sep 2022
Jun 2022
Sep 2021
%
%
%
%
%
%
%
%
%
Platinum
286,103
54%
278,511
52%
336,620
51%
265,975
59%
253,999
59%
304,116
59%
20,128
23%
24,512
23%
32,504
23%
Palladium
200,137
37%
210,930
39%
265,876
40%
134,376
30%
127,792
30%
154,055
30%
65,761
77%
83,138
77%
111,821
77%
Rhodium
40,296
8%
37,880
7%
44,433
7%
40,296
9%
37,880
9%
44,433
9%
Gold
8,216
2%
7,942
2%
11,174
2%
8,216
2%
7,942
2%
11,174
2%
PGM production 4E/2E
534,752
100%
535,262
100%
658,103
100%
448,863
100%
427,612
100%
513,778
100%
85,889
100%
107,650
100%
144,325
100%
Ruthenium
64,192
59,933
80,065
64,192
59,933
80,065
Iridium
16,034
15,299
18,451
16,034
15,299
18,451
Total 6E/2E
614,978
610,494
756,619
529,089
502,844
612,294
85,889
107,650
144,325
Recycling at US operations
Unit
Sep 2022
Jun 2022
Sep 2021
Average catalyst fed/day
Tonne
17.7
22.0
22.7
Total processed
Tonne
1,630
2,004
2,087
Tolled
Tonne
—
—
23
Purchased
Tonne
1,630
2,004
2,064
PGM fed
3Eoz
141,560
170,462
179,765
PGM sold
3Eoz
162,659
213,988
183,734
PGM tolled returned
3Eoz
4,715
1,878
99
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
000't
Sep 2022
10,237
1,117
9,120
290
123
336
620
490
18
1,202
7,157
Jun 2022
8,123
—
8,123
—
5
—
40
—
—
1,014
7,064
Sep 2021
11,199
1,474
9,725
432
164
493
855
549
103
1,182
7,421
Yield
g/t
Sep 2022
0.62
3.90
0.22
5.65
0.41
4.14
0.31
2.69
—
0.27
0.20
Jun 2022
0.21
—
0.20
—
—
—
0.28
—
—
0.19
0.20
Sep 2021
0.82
4.78
0.21
5.72
0.41
5.68
0.30
3.24
0.29
0.25
0.20
Gold produced
kg
Sep 2022
6,366
4,354
2,012
1,640
50
1,393
190
1,321
—
319
1,453
Jun 2022
1,698
49
1,649
7
—
20
11
22
—
195
1,443
Sep 2021
9,137
7,048
2,089
2,470
67
2,801
253
1,777
30
290
1,449
oz
Sep 2022
204,672
139,984
64,687
52,727
1,608
44,786
6,109
42,471
—
10,256
46,715
Jun 2022
54,592
1,575
53,017
225
—
643
354
707
—
6,269
46,394
Sep 2021
293,761
226,598
67,163
79,412
2,154
90,054
8,134
57,132
965
9,324
46,586
Gold sold
kg
Sep 2022
6,070
4,095
1,975
1,524
48
1,314
174
1,257
—
311
1,442
Jun 2022
1,735
129
1,606
9
—
14
1
106
—
159
1,446
Sep 2021
9,069
7,025
2,044
2,375
47
2,742
247
1,908
30
292
1,428
oz
Sep 2022
195,155
131,657
63,498
48,998
1,543
42,246
5,594
40,413
—
9,999
46,361
Jun 2022
55,782
4,147
51,634
289
—
450
32
3,408
—
5,112
46,490
Sep 2021
291,575
225,859
65,716
76,358
1,511
88,157
7,941
61,344
965
9,388
45,911
Price and costs
Gold price received
R/kg
Sep 2022
944,316
944,020
944,220
942,721
945,338
945,908
Jun 2022
940,634
1,000,000
1,000,000
962,264
930,818
939,142
Sep 2021
837,799
839,389
836,066
834,881
842,466
841,737
Gold price received
US$/oz
Sep 2022
1,723
1,722
1,722
1,720
1,725
1,726
Jun 2022
1,877
1,995
1,995
1,920
1,857
1,874
Sep 2021
1,781
1,785
1,777
1,775
1,791
1,790
Operating cost1
R/t
Sep 2022
645
4,573
163
5,623
359
5,388
305
3,393
1,222
214
137
Jun 2022
463
—
151
—
—
—
1,825
—
—
178
136
Sep 2021
537
3,157
139
3,438
159
3,907
251
2,262
204
184
118
US$/t
Sep 2022
38
268
10
330
21
316
18
199
72
13
8
Jun 2022
30
—
10
—
—
—
117
—
—
11
9
Sep 2021
37
216
10
235
11
267
17
155
14
13
8
R/kg
Sep 2022
1,036,601
1,173,404
740,557
995,732
880,000
1,300,790
994,737
1,259,652
—
805,643
673,090
Jun 2022
2,214,370
51,632,653
745,907
131,285,714
—
50,200,000
6,636,364
27,590,909
—
923,077
664,588
Sep 2021
657,656
660,187
649,114
601,215
388,060
687,612
849,802
698,931
700,000
751,724
604,555
US$/oz
Sep 2022
1,891
2,141
1,351
1,816
1,605
2,373
1,815
2,298
—
1,470
1,228
Jun 2022
4,418
103,012
1,488
261,927
—
100,154
13,240
55,046
—
1,842
1,326
Sep 2021
1,398
1,404
1,380
1,278
825
1,462
1,807
1,486
1,488
1,598
1,285
All-in sustaining cost2
R/kg
Sep 2022
1,210,049
1,215,013
1,527,554
1,424,025
861,736
765,603
Jun 2022
2,522,190
110,222,222
76,266,667
7,264,151
1,056,604
899,723
Sep 2021
796,008
790,669
848,444
825,593
787,671
649,860
All-in sustaining cost2
US$/oz
Sep 2022
2,207
2,216
2,787
2,598
1,572
1,397
Jun 2022
5,032
219,903
152,159
14,493
2,108
1,795
Sep 2021
1,692
1,681
1,804
1,755
1,675
1,382
All-in cost2
R/kg
Sep 2022
1,293,245
1,215,013
1,598,118
1,424,025
861,736
802,358
Jun 2022
2,663,977
110,222,222
77,600,000
7,264,151
1,056,604
887,967
Sep 2021
809,792
790,669
862,830
826,625
787,671
659,664
All-in cost2
US$/oz
Sep 2022
2,359
2,216
2,915
2,598
1,572
1,464
Jun 2022
5,315
219,903
154,819
14,493
2,108
1,772
Sep 2021
1,722
1,681
1,834
1,757
1,675
1,402
Capital expenditure
Ore reserve development
Rm
Sep 2022
472
208
174
90
—
—
Jun 2022
—
—
—
—
—
—
Sep 2021
729
324
270
135
—
—
Sustaining capital
Rm
Sep 2022
409
109
150
37
—
113
Jun 2022
455
35
58
32
—
330
Sep 2021
342
94
128
45
—
75
Corporate and projects3
Rm
Sep 2022
488
—
105
—
—
53
Jun 2022
220
—
20
—
—
(17)
Sep 2021
97
—
43
2
—
14
Total capital expenditure
Rm
Sep 2022
1,369
317
429
127
—
166
Jun 2022
675
35
78
32
—
313
Sep 2021
1,168
418
441
182
—
89
Total capital expenditure
US$m
Sep 2022
80
19
25
7
—
10
Jun 2022
43
2
5
2
—
20
Sep 2021
80
29
30
12
—
6
Average exchange rates for the quarters ended 30 September 2022, 30 June 2022 and 30 September 2021 was R17.05/US$, R15.59/US$ and R14.63/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 Corporate project expenditure for the quarters ended 30 September 2022, 30 June 2022 and 30 September 2021 was R330 million (US$19 million), R217 million (US$14 million) and R38 million (US$3 million), respectively, the majority of which related to the Burnstone project
European operations
Sibanye-Stillwater Sandouville Refinery
Battery Metal Split
Sep 2022
Jun 2022
Volumes produced (tons)
%
%
Nickel Salts1
650
39%
668
23%
Nickel Metal
1,003
61%
2,251
77%
Total Nickel Production tNi
1,653
100%
2,919
100%
Nickel Cakes2
68
123
Cobalt Chloride (CoCl2)3
37
78
Ferric Chloride (FeCl3)3
321
608
Volumes sales (tons)
Nickel Salts1
529
31%
609
20%
Nickel Metal
1,177
69%
2,367
80%
Total Nickel Sold tNi
1,706
100%
2,976
100%
Cobalt Chloride (CoCl2)3
51
95
Ferric Chloride (FeCl3)3
321
608
Nickel equivalent basket price
Unit
Sep 2022
Jun 2022
Nickel equivalent average basket price
R/tNi
384,525
471,774
US$/tNi
22,553
30,261
Nickel equivalent sustaining cost
Unit
Sep 2022
Jun 2022
Cost of sales, before amortisation and depreciation
Rm
882
1,260
Carbon tax
Rm
—
—
Community costs
Rm
—
—
Share-based payments
Rm
—
—
Rehabilitation interest and amortisation
Rm
1
1
Leases
Rm
15
10
Sustaining capital expenditure
Rm
23
19
Less: By-product credit
Rm
(43)
(44)
Nickel equivalent sustaining cost
Rm
878
1,246
Nickel Products sold
tNi
1,706
2,976
Nickel equivalent sustaining cost
R/tNi
514,654
418,683
US$/tNi
30,185
26,856
Nickel recovery yield4
%
95.04 %
99.36 %
Average exchange rates for the quarters ended 30 September 2022, 30 June 2022 and 30 September 2021 was R17.05/US$, R15.59/US$ and R14.63/US$, respectively
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 Nickel recovery yield is the percentage of total nickel recovered from the matte relative to the nickel contained in the matte received
ALL-IN COSTS - QUARTERS
SA and US PGM operations
Figures are in millions unless otherwise stated
US
OPERATIONS
SA OPERATIONS
R' million
Total US and SA PGM1
Total US PGM2
Total SA PGM1
Rustenburg
Marikana1
Kroondal
Plat Mile
Mimosa
Corporate
Cost of sales, before amortisation and depreciation3
Sep 2022
9,416
1,413
8,003
3,218
3,758
868
159
511
(511)
Jun 2022
9,696
2,045
7,651
3,208
3,364
937
142
461
(461)
Sep 2021
9,598
1,820
7,778
2,647
4,077
914
140
419
(419)
Royalties
Sep 2022
374
—
374
258
112
4
—
26
(26)
Jun 2022
316
—
316
94
219
3
—
39
(39)
Sep 2021
573
—
573
269
302
2
—
42
(42)
Carbon tax
Sep 2022
(1)
—
(1)
—
—
(1)
—
—
—
Jun 2022
1
—
1
—
1
—
—
—
—
Sep 2021
(1)
—
(1)
—
(1)
—
—
—
—
Community costs
Sep 2022
22
—
22
—
22
—
—
—
—
Jun 2022
54
—
54
—
54
—
—
—
—
Sep 2021
92
—
92
3
89
—
—
—
—
Inventory change
Sep 2022
1,462
398
1,064
375
689
—
—
(3)
3
Jun 2022
913
(108)
1,021
232
789
—
—
4
(4)
Sep 2021
982
74
908
711
197
—
—
(6)
6
Share-based payments4
Sep 2022
54
12
42
16
19
7
—
—
—
Jun 2022
147
68
79
29
35
14
1
—
—
Sep 2021
50
21
29
12
13
4
—
—
—
Rehabilitation interest and amortisation5
Sep 2022
35
13
22
(8)
10
20
—
1
(1)
Jun 2022
53
13
40
1
20
19
—
11
(11)
Sep 2021
64
8
56
(1)
40
17
—
1
(1)
Leases
Sep 2022
16
2
14
3
10
1
—
—
—
Jun 2022
15
1
14
3
9
2
—
—
—
Sep 2021
12
—
12
2
9
1
—
—
—
Ore reserve development
Sep 2022
1,313
723
590
194
396
—
—
—
—
Jun 2022
1,196
641
555
173
382
—
—
—
—
Sep 2021
739
296
443
168
275
—
—
—
—
Sustaining capital expenditure
Sep 2022
758
293
465
140
242
80
3
258
(258)
Jun 2022
640
211
429
148
208
68
5
181
(181)
Sep 2021
592
143
449
115
268
58
8
118
(118)
Less: By-product credit
Sep 2022
(2,327)
(196)
(2,131)
(888)
(981)
(238)
(23)
(190)
189
Jun 2022
(2,940)
(348)
(2,592)
(1,063)
(1,242)
(271)
(16)
(222)
222
Sep 2021
(2,591)
(319)
(2,272)
(676)
(1,347)
(243)
(6)
(134)
134
Total All-in-sustaining costs6
Sep 2022
11,122
2,658
8,464
3,308
4,277
741
139
603
(604)
Jun 2022
10,091
2,523
7,568
2,825
3,839
772
132
474
(474)
Sep 2021
10,110
2,043
8,067
3,250
3,922
753
142
440
(440)
Plus: Corporate cost, growth and capital expenditure
Sep 2022
642
434
208
1
207
—
—
—
—
Jun 2022
420
211
209
—
209
—
—
—
—
Sep 2021
645
583
62
—
62
—
—
—
—
Total All-in-costs6
Sep 2022
11,764
3,092
8,672
3,309
4,484
741
139
603
(604)
Jun 2022
10,511
2,734
7,777
2,825
4,048
772
132
474
(474)
Sep 2021
10,755
2,626
8,129
3,250
3,984
753
142
440
(440)
PGM production
4Eoz - 2Eoz
Sep 2022
534,752
85,889
448,863
179,438
180,316
48,120
12,319
28,670
—
Jun 2022
535,262
107,650
427,612
155,831
180,815
51,797
9,658
29,511
—
Sep 2021
658,101
144,325
513,776
183,606
226,591
61,083
13,726
28,770
—
kg
Sep 2022
16,633
2,671
13,961
5,581
5,608
1,497
383
892
—
Jun 2022
16,649
3,348
13,300
4,847
5,624
1,611
300
918
—
Sep 2021
20,469
4,489
15,980
5,711
7,048
1,900
427
895
—
All-in-sustaining cost
R/4Eoz - R/2Eoz
Sep 2022
21,977
30,947
20,143
18,435
23,719
15,399
11,283
21,032
—
Jun 2022
19,953
23,437
19,010
18,129
21,232
14,904
13,667
16,062
—
Sep 2021
16,065
14,156
16,633
17,701
17,309
12,327
10,345
15,294
—
US$/4Eoz - US$/2Eoz
Sep 2022
1,289
1,815
1,181
1,081
1,391
903
662
1,234
—
Jun 2022
1,280
1,503
1,219
1,163
1,362
956
877
1,030
—
Sep 2021
1,098
968
1,137
1,210
1,183
843
707
1,045
—
All-in-cost
R/4Eoz - R/2Eoz
Sep 2022
23,245
36,000
20,638
18,441
24,867
15,399
11,283
21,032
—
Jun 2022
20,783
25,397
19,535
18,129
22,388
14,904
13,667
16,062
—
Sep 2021
17,090
18,195
16,761
17,701
17,582
12,327
10,345
15,294
—
US$/4Eoz - US$/2Eoz
Sep 2022
1,363
2,111
1,210
1,082
1,459
903
662
1,234
—
Jun 2022
1,333
1,629
1,253
1,163
1,436
956
877
1,030
—
Sep 2021
1,168
1,244
1,146
1,210
1,202
843
707
1,045
—
Average exchange rates for the quarters ended 30 September 2022, 30 June 2022 and 30 September 2021 was R17.05/US$, R15.59/US$ and R14.63/US$, respectively
Figures may not add as they are rounded independently
1 The Total US and SA PGM, Total SA PGM 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 Total US and SA PGM, Total SA PGM and Marikana - Quarters” and “Reconciliation of AISC and AIC excluding third party PoC for Total US and SA PGM, Total SA PGM 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 Total US and SA PGM, Total SA PGM and Marikana - Quarters
Total US and SA PGM
Total SA PGM
Marikana
R' million
Sep 2022
Jun 2022
Sep 2021
Sep 2022
Jun 2022
Sep 2021
Sep 2022
Jun 2022
Sep 2021
Cost of sales, before amortisation and depreciation as reported per table above
9,416
9,696
9,598
8,003
7,651
7,778
3,758
3,364
4,077
Inventory change as reported per table above
1,462
913
982
1,064
1,021
908
689
789
197
Less: Chrome cost of sales
(402)
(422)
(338)
(402)
(422)
(338)
(96)
(79)
(64)
Total operating cost including third party PoC
10,476
10,187
10,242
8,665
8,250
8,348
4,351
4,074
4,210
Less: Purchase cost of PoC
(790)
(565)
(593)
(790)
(565)
(593)
(790)
(565)
(593)
Total operating cost excluding third party PoC
9,686
9,622
9,649
7,875
7,685
7,755
3,561
3,509
3,617
PGM production as reported per table above
4Eoz- 2Eoz
534,752
535,262
658,101
448,863
427,612
513,776
180,316
180,815
226,591
Less: Mimosa production
(28,670)
(29,511)
(28,770)
(28,670)
(29,511)
(28,770)
—
—
—
PGM production excluding Mimosa
506,082
505,751
629,331
420,193
398,101
485,006
180,316
180,815
226,591
Less: PoC production
(16,720)
(14,654)
(13,703)
(16,720)
(14,654)
(13,703)
(16,720)
(14,654)
(13,703)
PGM production excluding Mimosa and third party PoC
489,362
491,097
615,628
403,473
383,447
471,303
163,596
166,161
212,888
PGM production including Mimosa and excluding third party PoC
518,032
520,608
644,398
432,143
412,958
500,073
163,596
166,161
212,888
Tonnes milled/treated
000't
9,625
9,641
10,747
9,383
9,342
10,363
2,441
2,554
2,933
Less: Mimosa tonnes
(340)
(360)
(352)
(340)
(360)
(352)
—
—
—
PGM tonnes excluding Mimosa and third party PoC
9,284
9,281
10,395
9,043
8,982
10,011
2,441
2,554
2,933
Operating cost including third party PoC
R/4Eoz-R/2Eoz
20,700
20,142
16,274
20,621
20,723
17,212
24,130
22,531
18,580
US$/4Eoz-US$/2Eoz
1,214
1,292
1,112
1,209
1,329
1,176
1,415
1,445
1,270
R/t
1,128
1,098
985
958
919
834
1,782
1,595
1,435
US$/t
66
70
67
56
59
57
105
102
98
Operating cost excluding third party PoC
R/4Eoz-R/2Eoz
19,793
19,593
15,673
19,518
20,042
16,454
21,767
21,118
16,990
US$/4Eoz-US$/2Eoz
1,161
1,257
1,071
1,145
1,286
1,125
1,277
1,355
1,161
R/t
1,043
1,037
928
871
856
775
1,459
1,374
1,233
US$/t
61
67
63
51
55
53
86
88
84
Reconciliation of AISC and AIC excluding third party PoC for Total US and SA PGM, Total SA PGM and Marikana - Quarters
Total US and SA PGM
Total SA PGM
Marikana
R' million
Sep 2022
Jun 2022
Sep 2021
Sep 2022
Jun 2022
Sep 2021
Sep 2022
Jun 2022
Sep 2021
Total All-in-sustaining cost as reported per table above
11,122
10,091
10,110
8,464
7,568
8,067
4,277
3,839
3,922
Less: Purchase cost of PoC
(790)
(565)
(593)
(790)
(565)
(593)
(790)
(565)
(593)
Add: By-product credit of PoC
77
67
63
77
67
63
77
67
63
Total All-in-sustaining cost excluding third party PoC
10,409
9,593
9,580
7,751
7,070
7,537
3,564
3,341
3,392
Plus: Corporate cost, growth and capital expenditure
642
420
645
208
209
62
207
209
62
Total All-in-cost excluding third party PoC
11,051
10,013
10,225
7,959
7,279
7,599
3,771
3,550
3,454
PGM production excluding Mimosa and third party PoC
4Eoz- 2Eoz
489,362
491,097
615,628
403,473
383,447
471,303
163,596
166,161
212,888
All-in-sustaining cost excluding third party PoC
R/4Eoz-R/2Eoz
21,271
19,534
15,561
19,211
18,438
15,992
21,785
20,107
15,933
US$/4Eoz-US$/2Eoz
1,248
1,253
1,064
1,127
1,183
1,093
1,278
1,290
1,089
All-in-cost excluding third party PoC
R/4Eoz-R/2Eoz
22,582
20,389
16,609
19,726
18,983
16,123
23,051
21,365
16,224
US$/4Eoz-US$/2Eoz
1,324
1,308
1,135
1,157
1,218
1,102
1,352
1,370
1,109
SA gold operations
Figures are in millions unless otherwise stated
SA OPERATIONS
R' million
Total SA gold
Driefontein
Kloof
Beatrix
Cooke
DRDGOLD
Corporate
Cost of sales, before amortisation and depreciation1
Sep 2022
6,342
1,562
1,926
1,624
256
974
—
Jun 2022
3,784
915
1,059
701
154
955
—
Sep 2021
5,978
1,450
2,102
1,371
217
838
—
Royalties
Sep 2022
21
7
7
6
1
—
—
Jun 2022
2
—
—
1
1
—
—
Sep 2021
49
19
12
8
1
—
9
Carbon tax
Sep 2022
1
—
—
1
—
—
—
Jun 2022
1
—
—
1
—
—
—
Sep 2021
—
—
—
—
—
—
—
Community costs
Sep 2022
24
8
7
6
—
3
—
Jun 2022
33
12
10
8
—
3
—
Sep 2021
33
12
10
9
—
2
—
Share-based payments2
Sep 2022
28
10
9
5
—
4
—
Jun 2022
51
21
15
10
—
5
—
Sep 2021
26
6
9
6
—
5
—
Rehabilitation interest and amortisation3
Sep 2022
32
5
(3)
15
11
4
—
Jun 2022
31
8
(2)
10
12
2
1
Sep 2021
50
10
5
20
9
5
1
Leases
Sep 2022
19
2
4
7
—
6
—
Jun 2022
21
1
4
7
1
8
—
Sep 2021
19
2
2
7
3
5
—
Ore reserve development
Sep 2022
472
208
174
90
—
—
—
Jun 2022
—
—
—
—
—
—
—
Sep 2021
729
324
270
135
—
—
—
Sustaining capital expenditure
Sep 2022
409
109
150
37
—
113
—
Jun 2022
455
35
58
32
—
330
—
Sep 2021
342
94
128
45
—
75
—
Less: By-product credit
Sep 2022
(3)
(1)
(1)
(1)
—
—
—
Jun 2022
(2)
—
—
—
—
(2)
—
Sep 2021
(7)
(2)
(2)
(1)
—
(2)
—
Total All-in-sustaining costs4
Sep 2022
7,345
1,910
2,273
1,790
268
1,104
—
Jun 2022
4,376
992
1,144
770
168
1,301
1
Sep 2021
7,219
1,915
2,536
1,600
230
928
10
Plus: Corporate cost, growth and capital expenditure
Sep 2022
505
—
105
—
—
53
347
Jun 2022
246
—
20
—
—
(17)
243
Sep 2021
125
—
43
2
—
14
66
Total All-in-costs4
Sep 2022
7,850
1,910
2,378
1,790
268
1,157
347
Jun 2022
4,622
992
1,164
770
168
1,284
244
Sep 2021
7,344
1,915
2,579
1,602
230
942
76
Gold sold
kg
Sep 2022
6,070
1,572
1,488
1,257
311
1,442
—
Jun 2022
1,735
9
15
106
159
1,446
—
Sep 2021
9,069
2,422
2,989
1,938
292
1,428
—
oz
Sep 2022
195,155
50,541
47,840
40,413
9,999
46,361
—
Jun 2022
55,782
289
482
3,408
5,112
46,490
—
Sep 2021
291,575
77,869
96,099
62,308
9,388
45,911
—
All-in-sustaining cost
R/kg
Sep 2022
1,210,049
1,215,013
1,527,554
1,424,025
861,736
765,603
—
Jun 2022
2,522,190
110,222,222
76,266,667
7,264,151
1,056,604
899,723
—
Sep 2021
796,008
790,669
848,444
825,593
787,671
649,860
—
All-in-sustaining cost
US$/oz
Sep 2022
2,207
2,216
2,787
2,598
1,572
1,397
—
Jun 2022
5,032
219,903
152,159
14,493
2,108
1,795
—
Sep 2021
1,692
1,681
1,804
1,755
1,675
1,382
—
All-in-cost
R/kg
Sep 2022
1,293,245
1,215,013
1,598,118
1,424,025
861,736
802,358
—
Jun 2022
2,663,977
110,222,222
77,600,000
7,264,151
1,056,604
887,967
—
Sep 2021
809,792
790,669
862,830
826,625
787,671
659,664
—
All-in-cost
US$/oz
Sep 2022
2,359
2,216
2,915
2,598
1,572
1,464
—
Jun 2022
5,315
219,903
154,819
14,493
2,108
1,772
—
Sep 2021
1,722
1,681
1,834
1,757
1,675
1,402
—
Average exchange rates for the quarters ended 30 September 2022, 30 June 2022 and 30 September 2021 was R17.05/US$, R15.59/US$ and R14.63/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
ADJUSTED EBITDA RECONCILIATION - QUARTERS
Quarter ended Sep 2022
Quarter ended Jun 2022
Quarter ended Sep 2021
Americas region
Southern Africa (SA) region
European region
Group
Americas region
SA region
European region
Group
Americas region
SA region
Group
Figures in million - SA rand
Total US PGM
US Under- ground PGM
US Recy- cling
SA PGM
SA gold
Battery Metals1
Corpo-rate
Total
Total US PGM
US Under- ground PGM
US Recy- cling
SA PGM
SA gold
Battery Metals1
Corpo-rate
Total
Total US PGM
US Under- ground PGM
US Recy- cling
SA PGM
SA gold
Corpo-rate
Total
Profit/(loss) before royalties and tax2
356
(83)
439
7,374
(802)
(331)
(142)
6,455
1,520
1,090
430
8,854
(1,790)
103
(227)
8,460
3,021
2,502
519
10,043
1,192
(236)
14,020
Adjusted for:
Amortisation and depreciation
580
579
1
625
481
55
—
1,741
739
738
1
601
183
58
—
1,581
631
630
1
678
885
—
2,194
Interest income
(101)
(32)
(69)
(83)
(124)
—
—
(308)
(103)
(7)
(96)
(131)
(116)
—
(1)
(351)
(94)
—
(94)
(45)
(160)
(2)
(301)
Finance expense
248
248
—
163
177
6
78
672
226
226
—
248
183
5
78
740
167
157
10
154
113
80
514
Share-based payments
10
10
—
41
43
—
—
94
(8)
(8)
—
(25)
(8)
—
—
(41)
4
4
—
6
34
—
44
Loss/(gain) on financial instruments3
160
160
—
125
4
(23)
—
266
(124)
(124)
—
189
24
(23)
—
66
(684)
(684)
—
83
(2)
—
(603)
Loss/(gain) on foreign exchange differences4
8
8
—
(135)
(518)
63
(39)
(621)
(1)
(1)
—
(350)
(787)
18
2
(1,118)
—
—
—
(83)
(527)
—
(610)
Share of results of equity-accounted investees after tax
—
—
—
(55)
(37)
—
3
(89)
—
—
—
(357)
(67)
—
4
(420)
—
—
—
(286)
(71)
—
(357)
Loss/(gain) on disposal of property, plant and equipment
1
1
—
(15)
(18)
—
—
(32)
(4)
(4)
—
(17)
(11)
—
—
(32)
8
8
—
(1)
(10)
—
(3)
Reversal of impairments
—
—
—
(7)
—
—
—
(7)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
Restructuring cost
—
—
—
4
3
—
—
7
—
—
—
16
11
—
—
27
—
—
—
6
4
—
10
IFRS 16 lease payments5
(2)
(2)
—
(14)
(20)
(16)
—
(52)
(1)
(1)
—
(15)
(23)
(13)
—
(52)
—
—
—
(13)
(21)
—
(34)
Occupational healthcare expense
—
—
—
—
—
—
—
—
—
—
—
—
(25)
—
—
(25)
—
—
—
—
—
—
—
Other non-recurring costs
6
6
—
309
—
—
14
329
—
—
—
(1)
—
—
63
62
5
5
—
—
(16)
14
3
Adjusted EBITDA
1,266
895
371
8,332
(811)
(246)
(86)
8,455
2,244
1,909
335
9,012
(2,426)
148
(81)
8,897
3,058
2,622
436
10,542
1,421
(144)
14,877
1 The Battery Metals segment includes Sandouville refinery (Sandouville), Keliber Oy (Keliber) and Battery Metals corporate and reconciling items since the effective dates of acquiring Sandouville on 4 February 2022 and Keliber on 14 March 2022 (where appropriate, Keliber project costs are capitalised in terms of the group accounting policies)
2 Battery Metals includes a loss before royalties and tax of R22 million related to Battery Metals corporate and reconciling items for the three months ended 30 September 2022 (R24 million profit before royalties and tax for the three months ended 30 June 2022)
3 Battery Metals includes a gain on financial instruments of R22 million and R23 million related to Battery Metals corporate and reconciling items for the three months ended 30 September 2022 and 30 June 2022, respectively
4 Battery Metals includes a loss on foreign exchange differences of R45 million related to Battery Metals corporate and reconciling items for the three months ended 30 September 2022
5 Battery Metals includes IFRS 16 lease payments of R1 million related to Keliber for both the three months ended 30 September 2022 and 30 June 2022
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
Quarter ended
Sep 2022
Jun 2022
Nine months ended Sep 2022
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)
1,405
269
1,576
206
4,833
1,141
Secondary development
(m)
3,508
1,196
2,755
1,495
9,161
3,777
SA PGM operations
Quarter ended
Sep 2022
Jun 2022
Nine months ended Sep 2022
Reef
Bathopele
Thembe- lani
Khuseleka
Siphume-lele
Bathopele
Thembe- lani
Khuseleka
Siphume-lele
Bathopele
Thembe- lani
Khuseleka
Siphume-lele
Rustenburg
Unit
Advanced
(m)
443
1,877
3,273
738
404
1,695
3,015
712
1,190
4,964
8,508
2,009
Advanced on reef
(m)
443
696
1,277
403
404
756
1,129
339
1,190
2,055
3,298
1,058
Height
(cm)
220
295
282
285
212
300
285
275
215
296
283
278
Average value
(g/t)
2.9
2.3
2.2
2.9
3.0
2.4
2.2
3.1
2.9
2.3
2.2
3.0
(cm.g/t)
632
670
630
815
643
717
617
860
626
690
618
827
SA PGM operations
Quarter ended
Sep 2022
Jun 2022
Nine months ended Sep 2022
Reef
K3
Rowland
Saffy
E3
4B
K4
K3
Rowland
Saffy
E3
4B
K4
K3
Rowland
Saffy
E3
4B
K4
Marikana
Unit
Primary development
(m)
8,996
4,263
3,953
867
914
2,317
8,535
4,928
4,049
780
968
908
24,209
13,832
11,124
2,296
2,671
3,253
Primary development - on reef
(m)
6,687
2,532
2,390
455
556
759
6,322
3,168
2,378
343
623
169
18,147
9,066
6,817
1,180
1,745
930
Height
(cm)
217
219
238
230
214
239
216
219
234
217
221
237
216
219
232
221
219
238
Average value
(g/t)
2.5
2.5
2.4
2.6
3.0
2.8
2.8
2.6
2.5
2.9
2.9
2.9
2.7
2.6
2.5
2.8
2.9
2.8
(cm.g/t)
534
557
579
591
638
666
602
570
574
635
635
676
578
567
569
610
632
669
SA PGM operations
Quarter ended
Sep 2022
Jun 2022
Nine months ended Sep 2022
Reef
Kopaneng
Bamba-nani
Kwezi
K6
Kopaneng
Bamba-nani
Kwezi
K6
Kopaneng
Bamba-nani
Kwezi
K6
Kroondal
Unit
Advanced
(m)
586
789
531
556
527
843
501
395
1,591
2,165
1,585
1,161
Advanced on reef
(m)
436
271
420
478
376
422
250
331
1,073
1,083
880
891
Height
(cm)
242
214
223
240
245
215
222
229
239
215
220
242
Average value
(g/t)
1.6
1.0
2.2
2.0
1.5
1.5
1.3
1.9
1.5
1.4
1.5
1.6
(cm.g/t)
381
210
480
480
376
325
278
424
350
307
327
391
SA gold operations
Quarter ended
Sep 2022
Jun 2022
Nine months ended Sep 2022
Reef
Carbon
leader
Main
VCR
Carbon
leader
Main
VCR
Carbon
leader
Main
VCR
Driefontein
Unit
Advanced
(m)
443
223
610
—
—
—
1,119
516
1,568
Advanced on reef
(m)
40
74
172
—
—
—
158
164
430
Channel width
(cm)
16
56
48
—
—
—
21
57
63
Average value
(g/t)
42.5
7.4
35.6
—
—
—
37.5
9.4
43.7
(cm.g/t)
666
414
1,707
—
—
—
779
540
2,737
SA gold operations
Quarter ended
Sep 2022
Jun 2022
Nine months ended Sep 2022
Reef
Kloof
Main
Libanon
VCR
Kloof
Main
Libanon
VCR
Kloof
Main
Libanon
VCR
Kloof
Unit
Advanced
(m)
901
362
45
604
—
—
—
—
1,899
737
64
1,443
Advanced on reef
(m)
259
84
45
103
—
—
—
—
525
186
64
225
Channel width
(cm)
162
73
88
83
—
—
—
—
153
87
94
92
Average value
(g/t)
10.9
10.3
2.9
16.7
—
—
—
—
11.9
10.6
2.8
14.8
(cm.g/t)
1,766
755
253
1,397
—
—
—
—
1,814
923
261
1,355
SA gold operations
Quarter ended
Sep 2022
Jun 2022
Nine months ended Sep 2022
Reef
Beatrix
Kalkoen-krans
Beatrix
Kalkoen-krans
Beatrix
Kalkoen-krans
Beatrix
Unit
Advanced
(m)
1,640
65
—
—
2,426
117
Advanced on reef
(m)
500
—
—
—
730
—
Channel width
(cm)
151
—
—
—
145
—
Average value
(g/t)
7.6
—
—
—
7.9
—
(cm.g/t)
1,143
—
—
—
1,143
—
SA gold operations
Quarter ended
Sep 2022
Jun 2022
Nine months ended Sep 2022
Reef
Kimberley
Kimberley
Kimberley
Burnstone
Unit
Advanced
(m)
223
—
260
Advanced on reef
(m)
—
—
—
Channel width
(cm)
—
—
—
Average value
(g/t)
—
—
—
(cm.g/t)
—
—
—
ADMINISTRATION AND CORPORATE
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)
PO Box 505000
Louisville
KY 40233-5000
US toll free: +1 866 247 3871
Tel: +1 201 680 6825
Email: shrrelations@cpushareownerservices.com
Tatyana Vesselovskaya
Relationship Manager
BNY Mellon
Depositary Receipts
Direct line: +1 212 815 2867
Mobile: +1 203 609 5159
Fax: +1 212 571 3050
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 & Marc Ollinger
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. These forward-looking statements, including, among others, those relating to Sibanye Stillwater Limited’s (“Sibanye-Stillwater” or the “Group”) financial positions, business strategies, plans and objectives of management for future operations, 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”, “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 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 current 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; 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; 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; 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, such as the coronavirus disease (COVID-19). 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 2021 Integrated Report and the annual report on Form 20-F for the fiscal year ended 31 December 2021.
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 in this document contains certain non-IFRS measures, including adjusted EBITDA, AISC and AIC. 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 report because it is unable to provide this reconciliation without unreasonable effort.
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 report.