Sibanye Stillwater Limited: Operating update - Quarter ended 31 March 2022
Johannesburg, 5 May 2022: 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 31 March 2022 (Q1 2022). The Group's financial results are only provided on a six-monthly basis.
SALIENT FEATURES - QUARTER ENDED 31 MARCH 2022 COMPARED TO QUARTER ENDED 31 MARCH 2021 (Q1 2021)
- Solid Group financial performance with Group adjusted EBITDA of R13.7 billion (US$898 million)
- Consistent operating performance across all PGM segments
- US PGM recycling operations deliver solid performance
- Lockout at SA gold operations continues
- Keliber definitive feasibility study (DFS) completed
US dollar
SA rand
Quarter ended
KEY STATISTICS
Quarter ended
Mar 2021
Dec 2021
Mar 2022
UNITED STATES (US) OPERATIONS
Mar 2022
Dec 2021
Mar 2021
PGM operations1,2
154,350
127,774
122,389
oz
2E PGM production2
kg
3,807
3,974
4,801
2,128
1,729
2,058
US$/2Eoz
Average basket price
R/2Eoz
31,323
26,661
31,835
920
1,120
1,244
US$/2Eoz
All-in sustaining cost4
R/2Eoz
18,940
17,265
13,763
PGM recycling1,2
195,474
172,511
190,871
oz
3E PGM recycling2
kg
5,937
5,366
6,080
2,909
3,459
3,061
US$/3Eoz
Average basket price
R/3Eoz
46,588
53,338
43,519
SOUTHERN AFRICA (SA) OPERATIONS
PGM operations2
425,484
441,900
410,848
oz
4E PGM production2,5
kg
12,779
13,745
13,234
3,524
2,470
2,961
US$/4Eoz
Average basket price
R/4Eoz
45,061
38,094
52,722
1,186
1,182
1,175
US$/4Eoz
All-in sustaining cost4
R/4Eoz
17,886
18,230
17,738
Gold operations
249,392
260,325
137,091
oz
Gold production
kg
4,264
8,097
7,757
1,782
1,784
1,873
US$/oz
Average gold price
R/kg
916,351
884,643
857,126
1,606
1,682
2,420
US$/oz
All-in sustaining cost4
R/kg
1,183,944
833,848
772,572
GROUP
1,325
855
898
US$m
Adjusted EBITDA3,6
Rm
13,664
13,180
19,826
14.96
15.42
15.22
R/US$
Average exchange rate using daily closing rate
1 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
2 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)
3 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"
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 Group Adjusted EBITDA includes Sibanye-Stillwater Sandouville Refinery (Sandouville Refinery) for the two months since acquisition (4 February 2022)
Stock data for the quarter ended 31 March 2022
JSE Limited - (SSW)
Number of shares in issue
Price range per ordinary share (High/Low)
R49.12 to R75.40
- at 31 March 2022
2,829,789,481
Average daily volume
14,998,316
- weighted average
2,813,863,510
NYSE - (SBSW); one ADR represents four ordinary shares
Free Float
99 %
Price range per ADR (High/Low)
US$12.52 to US$20.32
Bloomberg/Reuters
SSWSJ/SSWJ.J
Average daily volume
4,938,199
OVERVIEW FOR THE QUARTER ENDED 31 MARCH 2022 COMPARED TO QUARTER ENDED 31 MARCH 2021
The strategic benefits of the Group's growth and diversification are evident in the solid financial performance delivered for Q1 2022. The operating environment during 2022 has been characterised by socio-political and economic uncertainty, however the Group remains well positioned to navigate through these challenges, both in the internal and the external environment.
Restrictions relating to COVID-19 have reduced significantly in most of the world with the chip shortage affecting global auto production during H2 2021 alleviating during the quarter. The continued pursuit of a zero COVID strategy in China and the conflict in Ukraine, combined with the economic sanctions imposed on Russia have however heightened economic uncertainty, resulting in significant commodity price volatility. In South Africa the socio-economic and labour environment remains challenging, with the lockout of the Association of Mineworkers and Construction Union (AMCU) and the National Union of Mineworkers (NUM) at our SA gold operations, following extended wage negotiations, currently entering the third month. We continue to engage with organised labour in order to secure a fair and sustainable agreement, but will not be coerced into above inflation wage demands which may impact on the sustainability of our operations and negatively impact other stakeholders.
Notwithstanding the prevailing global geopolitical uncertainties, precious metal prices have remained robust, albeit with significant volatility, and, underpinned by a strong operating performance from our SA PGM operations, Group adjusted EBITDA of R13.7 billion (US$898 million) for Q1 2022 was strong, albeit 31% lower than for Q1 2021 (which at the time was a record quarterly financial result). On an annualised basis, Q1 2022 adjusted EBITDA equates to approximately R55 billion (US$3.6 billion). This is well above adjusted EBITDA for 2020 of R49.4 billion (US$3 billion) and R15 billion (US$1 billion) for 2019. Other than the record adjusted EBITDA of R68.6 billion (US$4.6 billion) for 2021, the Q1 2022 annualised adjusted EBITDA is the highest since the inception of the Group, signaling a significant and sustainable transformation in the financial position and outlook of the Group.
Our value creation journey and solid financial position, was recently confirmed by a meaningful upgrade in the Group's credit rating by Moody's Investors Service at the end of April 2022 from Ba3 to Ba2 with a positive outlook.
Another highlight for the quarter, was Sibanye-Stillwater's re-inclusion in the Bloomberg Gender-Equality Index (GEI) at the end of January 2022, an affirmation of progress in our inclusivity journey. Subsequent to the inclusion in the GEI, our senior leadership was further diversified and strengthened with two out of three executive-level promotions awarded to women from historically disadvantages backgrounds during the period.
SAFE PRODUCTION
Following the implementation of additional targeted safety initiatives, including our "Rules of Life" campaign during H2 2021 and decisive actions taken during Q4 2021 to address the occurrence of fatal incidents, including suspending operations across the Group and halting production at high incident shafts, we have seen a pleasing improvement in the Group safety performance.
The consistent improvements in all safety injury indicators observed during H2 2021, were maintained during Q1 2022, with the overall Group Total Recordable Injury Frequency Rate (TRIFR) reducing from 7.84 (per million hours) for Q1 2021 to 5.71 for Q1 2022, a notable 27% improvement year-on-year.
Similar trends were observed in other safety indicators including a 23% improvement in the Serious Injury Frequency Rate (SIFR), and a 30% improvement in the Lost Day Injury Frequency Rate (LDIFR) for Q1 2022 compared with Q1 2021.
While the focus on continued improvement in all aspects of safety will be maintained, the primary focus during 2022, will be on the continued implementation of the "Fatal elimination strategy", which was developed in conjunction with independent experts during Q4 2021. The focus of the strategy is to operationalise and institutionalise the commitment and responsibility for safety among line management of operations and to mitigate high energy risks.
The tragic occurrence of three fatalities during Q1 2022 (compared with three fatalities experienced during Q1 2021), has again underscored the importance of implementing this campaign which is well advanced in its roll out throughout the Group. On 19 January 2022, Mr Thabile Cele (age 36), a locomotive operator at Driefontein Pitseng shaft, was fatally injured in a tramming accident, and on 14 February 2022, Mr Mhahapile Mphaphuli (age 52), a train driver assistant at the Rustenburg Central Service Railway Operations was fatally injured in a surface railway accident. Regrettably, after an extended period in hospital after a scraper related incident on 21 October 2021 at Beatrix South shaft, on 27 February 2022, Mr Makatisi Madie (age 47) a winch operator succumbed to injuries he incurred during the incident. As a result of these unfortunate events, the fatal injury frequency rate (FIFR) increased from 0.079 in Q1 2021 to 0.084 in Q1 2022.
The Board and Management of Sibanye-Stillwater extend their sincere condolences to the family, friends and colleagues of our three departed colleagues. We remain committed to the continuous improvement in health and safety at our operations and we have enhanced our risk approach to make fatality prevention our main priority.
OPERATING REVIEW
US PGM operations
2E PGM production from the US PGM operations was in line with Q4 2021 (due to the operational stoppages in June 2021 and subsequent operating restrictions, it is more meaningful to compare the US PGM operations with Q4 2021 rather than Q1 2021) with production stabilising. The US PGM operations remained constrained by the Mine Safety and Health Administration (MSHA) section 103(k) order imposed after the fatal incident which occurred in June 2021, which was only lifted on 1 March 2022 (after 265 days). Despite the lifting of the MSHA order, production from the Stillwater West mine will remain restricted due to the current self-imposed rail operating procedures which will remain in place until collision avoidance systems have been implemented at the operations, at which point these procedures will be reviewed in consultation with MSHA.
The operational review to optimise operating output to ensure an appropriate sustainable return on capital from the US PGM operations is currently being undertaken considering: operating, inflation, supply chain and human resources constraints currently being experienced (e.g. increased reliance on contract labour due to a skills shortage in Montana), as well as the medium and longer term outlook for the palladium market. The review is expected to be completed by mid-year. Since the acquisition of Stillwater, the world-class high-grade orebody has repaid its acquisition cost and further prudent allocation of capital is expected to continue to deliver superior returns over more than three decades of operating life.
Mined 2E PGM production from the US PGM operations of 122,389 2Eoz for Q1 2022 was negatively impacted by the constraints mentioned above. In addition, certain blocks at the East Boulder mine encountered poor ground conditions which are having a short term impact on both grade and productivity at this operation.
AISC of US$1,244/2Eoz (R18,940/2Eoz) for Q1 2022 was 11% higher than for Q4 2021 (US$1,120/2Eoz, R17,265/2Eoz), primarily due to lower grades and the operational challenges at the East Boulder mine and higher ore reserve development expenditure (ORD). ORD increased by 36% to US$42 million (R637 million) due to an increase in primary development quarter on quarter and a change in the accounting classification of growth capital expenditure (see below*) resulted in sustaining capital increasing by 14% quarter on quarter to US$11 million (R166 million). AISC was also impacted by higher royalties, insurance and taxes which combined accounted for US$177/2Eoz in Q1 2022 compared to US$153/2Eoz for Q4 2021, a 16% increase.
Total capital expenditure for Q1 2022 declined by 8% to US$74 million (R1.1 billion) quarter on quarter with project capital declining by 47% to US$21 million (R319 million) due to the change in accounting classification of ORD.
*The change in the classification of Stillwater East development from growth capital to sustaining capital (ORD) during the quarter, resulted in an increase in ORD expenditure (and corresponding decrease in Project capital) which contributed to the increase in AISC. Part of the operational review involves reassessing the rate of development at Stillwater East in the light of significant development costs arising from premiums on contractor costs. As a result, the completion of the 56 level holing to the Benbow decline later this year will be the only remaining Stillwater East expansion project in the short term.
US PGM recycling operations
The global autocatalyst recycling market remains constrained due to ongoing logistics, transport (port congestion and truck shortage) and fuel cost challenges, which affected receipt rates for our US PGM recycling operation during Q1 2022. Despite these constraints, the US PGM recycling operation delivered a solid operational and financial performance. The US PGM recycling operations fed an average of 23.7 tonnes per day (tpd) of spent autocatalyst material for Q1 2022, consistent with the 23.8 tpd fed for Q1 2021. During Q1 2022, recycling operations fed 190,871 3Eoz, marginally less than the 195,474 3Eoz fed in Q1 2021.
PGM recycling ounces sold declined by 32% to 147,571 3Eoz with the average basket price received for Q1 2022 of US$3,061/3Eoz, 5% higher than for Q1 2021. The marginal pipeline build during the quarter, largely due to the timing of customer receipts, is expected to be released during Q2 2022.
SA PGM operations
The SA PGM operations continued to perform strongly, producing 421,540 4Eoz in Q1 2022 (including third party purchase of concentrate (PoC)), 5% lower than for Q1 2021. Underground production of 370,272 4Eoz was 5% lower year-on-year but partly offset by 15% higher surface production of 40,576 4Eoz.
4E PGM production from the SA PGM operations (excluding PoC) of 410,848 4Eoz, was 3% lower year-on-year, primarily due to a slower than planned return to work at the Marikana and Rustenburg operations after the Christmas break.
Cost management excellence, despite inflationary pressures was again evident from the 6% reduction in AISC compared to Q1 2021 (including third party PoC purchases) to R18,600/4Eoz (US$1,222/4Eoz), primarily due to reduced third party PoC material purchases. AISC (excluding PoC) for Q1 2022 was only 1% higher year-on-year at R17,886/4Eoz (US$1,175/4Eoz), despite marginally lower production. This consistently good cost management from the SA PGM operations was maintained despite the impact of inflationary pressures affecting the mining industry globally, partially offset by higher credits received from the by- products sold as result of increased metal prices and is in stark contrast to the double-digit cost increases reported by PGM industry peers during the past 12 months.
The Marikana operation continued to deliver consistently good operating results. Production of 169,102 4Eoz (excluding PoC) was 3% lower year-on-year with production from surface sources down 2% to 6,562 4Eoz and underground production 3% lower at 162,540 4Eoz, due to a slower than expected ramp-up in January 2022. Costs for Q1 2022 were again well managed with AISC (excluding PoC) R17,806/4Eoz (US$1,170/4Eoz) 5% lower year-on-year. PGM production of 179,794 4Eoz in Q1 2022 (including PoC) was 7% lower than Q1 2021 primarily due to 44% lower third party PoC production of 10,692 4Eoz due to the wind down of two third party PoC contracts during Q4 2021. AISC (including PoC) of R19,372/4Eoz (US$1,273/4Eoz) was 17% lower year-on-year due to a significant reduction in PoC purchase costs due to the lower levels of PoC material purchased.
4E PGM production from the Rustenburg operation for Q1 2022 of 149,041 4Eoz was 5% lower year-on-year. Underground production of 130,171 4Eoz declined by 6% also due to the slower than expected start-up in January 2022, temporary operational challenges at Siphumelele and Khuseleka conventional shafts and at the Bathopele mechanised mine which is currently mining through the Hex River fault. This was partly offset by 6% higher surface production of 18,870 4Eoz. AISC for the Rustenburg operation increased by only 5% year-on-year to R20,041/4Eoz (US$1,317/4Eoz) driven by lower underground production and inflationary cost pressures, partly offset by lower royalties and the impact on inventory movement caused by the 4E basket mix included in the period end inventory valuation.
PGM production of 49,518 4Eoz from the Kroondal operation, was 7% lower than for Q1 2021 due to adverse ground conditions at both Kroondal East and West which led to lower yields, particularly in March 2022 and is expected, as planned to continue for the remainder of the year. AISC of R14,863/4Eoz (US$977/4Eoz), was 22% higher than for Q1 2021 as a result of lower production and additional underground support required for the adverse ground conditions. The open pit Klipfontein project is now fully ramped up and produced around 3,000 4Eoz (metal in concentrate) in March 2022 on a 100% basis. The final project capital expenditure of R10 million (boxcut. This high-return rapid-payback project achieved throughput of approximately 54,000 tonnes milled (on a 100% basis) in March 2022.
Attributable PGM production from Mimosa for Q1 2022 of 28,043 4Eoz was 6% lower than for Q1 2021. The focus on optimising the reagent suite and cell settings across the flotation circuit continues. Mimosa has maintained steady costs, with AISC increasing by only 2% to US$918/4Eoz (R13,979/4Eoz).
PGM production from Platinum Mile in Q1 2022 of 15,144 4Eoz was 41% higher compared to Q1 2021 due to additional surface tonnes added to the flotation output from the Rustenburg concentrator — resulting in a temporary boost to the yield. The increase in output, resulted in 28% lower AISC to R7,462/4Eoz (US$490/4Eoz), by far the lowest in the Group.
Q1 2022 Chrome sales of 640k tonnes were 73% higher compared to 370k tonnes sold for Q1 2021. Chrome revenue of R662 million for Q1 2022 was 91% higher than Q1 2021, mainly due to increased production and higher chrome prices received. The chrome price received increased by 21% for Q1 2022 relative to Q1 2021 to US$196/tonne.
Capital expenditure for Q1 2022 of R974 million (US$64 million) was 62% higher compared with R600 million (US$40 million) for Q1 2021. This is primarily due to R204 million (US$13 million) project investment at the Marikana K4 project. Sustaining capital was 55% higher year on year at R386 million (US$25 million) and ORD was 9% higher at R384 million (US$25 million) but both were lower than planned as a result of the slower than expected start to the year.
The K4 PGM project
The K4 shaft project was approved in February 2021, with expenditure commencing in June 2021. The overall project status (at 14.3% completion) is currently slightly ahead of schedule. The early works portion of the schedule, however, remains behind the target at 88.2% compared to 100% planned. Despite this, capital development and overstoping commenced during March 2022, with a focus on critical ends on 26, 27 and 28 levels. Underground construction and equipping are continuing on the remaining levels. Although development is behind target for Q1 2022 it is expected to recover by the end of the year.
Critical work around the Main shaft continues, and includes refurbishment of the settlers, completion of the fire suppression system on 36 level and construction of refuge bays on the lower levels. It is anticipated that the shaft will be ready for hoisting ore and waste within Q2 2022. Surface works continue as per plan, with the change houses at an advanced stage of completion.
Capital expenditure for Q1 2022 amounted to R204 million (US$13 million), while capital expenditure for the 2022 year is expected to be about R925 million (US$62 million).
SA gold operations
The managed SA gold operations were impacted by various operational disruptions during Q1 2022. Production from the Beatrix underground operations only commenced in February 2022, following the suspension of all operating activities from 3 December 2021 to address safety concerns. Moreover, during the reinforcement of the tailings storage facility (TSF) at the Beatrix operation, processing operations at Beatrix were suspended from 28 December 2021 with no ore processed or gold sold during Q1 2022 aside from minor amounts from the processing pipeline. Subsequent to the notification of strike action and lockout of members of AMCU and the NUM, following extended wage negotiations which began in June 2021, operating activities across the SA gold operations ceased from 9 March 2022. As such, operating results from the SA gold operations for Q1 2022 are not comparable to previous periods.
During the lockout period management is actively managing costs at the SA gold operations. In addition to reduced wage payments to striking AMCU and NUM members due to the observance of the "no work no pay" principle, power costs have been significantly reduced, with electricity consumption more than halving from normal levels.
SA gold strike update
After 10 months of wage negotiations, two of the representative unions, AMCU and the NUM, gave notice of a strike at the SA gold operations beginning on 9 March 2022. Subsequent to a lockout by the Company of all four unions forming the coalition, two of the unions, UASA and Solidarity, unconditionally accepted our offer. As the employer, we have continued to avail ourselves for engagement and have made numerous amendments to our offer. Unfortunately AMCU and the NUM have remained rigid in their demands and rejected all our offers to date. Our final settlement offer is fair, takes into account inflationary living costs and is in the interests of all stakeholders, and we will not be coerced into an agreement which may compromise the sustainability of the SA gold operations and negatively impact other stakeholders.
Update on Beatrix Tailings Storage facility (TSF)
As announced on 20 January 2022, processing operations at Beatrix were temporarily suspended from 28 December 2021 whilst precautionary reinforcement and buttressing work was undertaken on a limited portion of the Beatrix TSF. During the rehabilitation, processing of ore at Beatrix was also suspended resulting in no ore being milled or gold sales for the quarter. The project is forecast for completion by the end of May 2022. Should the AMCU and NUM strike be resolved before the completion of the project, ore will be stockpiled and processed over the remainder of 2022.
DRDGOLD
DRDGOLD being independent and unaffected by the SA gold strike, increased its gold produced in Q1 2022 by 1% to 1,391kg (44,722oz) compared to Q1 2021 due to a 10% increase in the yield to 0.21g/t, offset by 8% less tonnes milled in Q1 2022. The decrease in the amount of tonnes milled for the quarter was a result of multiple factors including: temporary equipment failure (crane, thickener and mill), load shedding and power grid failures (planning for alternative energy sources are underway) and downtime due to higher than seasonal rainstorms when employees were unable to operate on surface.
AISC in Q1 2022 increased by 10% to R712,418/kg (US$1,456/oz) due to a 25% increase in R/tonne milled cost as a result of lower throughput and higher consumption of cyanide (the latter due to lower densities in slurry due to excessive rain), as well as a 3% increase in sustaining capital. DRDGOLD also incurred R23 million (US$2 million) on project capital expenditure for Q1 2022 (no project capital expenditure in Q1 2021) due to the upgrade of tailings storage facilities, increase in plant throughput capacity and ongoing development of two new recovery sites – this investment will continue in the short and medium term.
SA gold Burnstone project
The Burnstone project continued to progress, achieving 23% completion prior to the lockout, with only essential work subsequently being performed. Capital expenditure of R300 million (US$20 million) had been incurred by the end of Q1 2022 (project-to-date). Expenditure by year-end is forecasted at R1,779 million (US$119 million) against a cumulative plan of R1,881 million (US$125 million), which is likely to be adjusted downwards should the strike and lockout continue. The final assessment of the plant, to determine earliest start-up, is expected to be completed in June 2022.
Progress on our Green metals strategy
During Q1 2022 the acquisition of the Sandouville nickel refinery in Le Havre, France was concluded. Integration of the Sandouville plant has commenced and further detail will be provided in our H1 2022 results.
Positive progress has also been made at the Keliber project. The Definitive Feasibility Study (DFS) confirms the robust technical and financial case for the project.
The updated DFS was finalised in January 2022 and issued by Keliber on 25 March 2022, confirmed a solid financial and technical feasibility for Keliber’s lithium project. First production of battery-grade lithium hydroxide monohydrate is planned for 2024, with full production in 2026. For the full announcement from Keliber, refer to https://www.keliber.fi/en/news/. A summary of the DFS outcomes (all figures are in real terms) are as follows:
Key figures (100% basis)*
Unit
DFS Value 2022
Financial
Total project capital expenditure
EUR million
475
Post-tax NPV (8% discount rate)
EUR million
1,228
Post-tax Internal Rate of Return (IRR)
%
31
Payback period (from the start of production)
Years
3.5
Annual average EBITDA (FY2030)
EUR million
253
Other
Life of mine
Years
16
Total Ore reserves
million tonnes
12.3
Annual production battery-grade lithium hydroxide monohydrate (own ore)
tonnes/year
15,000
Cash cost (per LiOH tonne from own ore in 2030)
EUR/tonne
4,198
*In the updated DFS, Keliber has used a price estimate for the battery-grade lithium hydroxide prepared by Roskill – Wood Mackenzie. The average LiOH price used in Keliber’s financial model is US$24,936/tonne, significantly below the current price of around US$70,000/tonne.
The forecasted demand for lithium hydroxide remains robust, which is reflected in the price outlook of lithium hydroxide.
On 27 April 2022, Keliber was granted the Building permit for its Lithium Chemical plant by the city of Kokkola. The lithium chemical plant will be built in the Kokkola Industrial Park (KIP) in Finland. At the chemical plant, Keliber’s spodumene concentrate is converted to battery-grade lithium hydroxide monohydrate, used in electric vehicles batteries, among other things.
OPERATING GUIDANCE FOR 2022*
4E PGM production from the SA PGM operations for 2022 remains unchanged 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 R4,800 million (US$317 million) including R950 million (US$63 million) of project capital expenditure on the K4 project.
Forecast mined 2E PGM production from the US PGM operations for 2022 currently remains unchanged at between 550,000 2Eoz and 580,000 2Eoz, with AISC of between US$980/2Eoz to US$1,030/2Eoz. Capital expenditure is forecast to be between US$290 million and US$310 million (including US$70 million of project capital). As mentioned, management is currently undertaking an optimisation planning process to ensure an appropriate ongoing return on capital invested is achieved in the current and medium-term environment. The results of this study are expected by mid year 2022 and will inform future guidance.
The US Recycling operations are forecast to feed between 750,000 and 800,000 3Eoz. Capital expenditure is forecast at approximately US$3 million.
Annual guidance for the SA gold operations is suspended due to the ongoing lockout. Guidance will be revised and updated on the lifting of the lockout.
*The dollar costs of the SA operations quoted as part of the guidance, are based on an average exchange rate of R15.00/US$.
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
Mar 2022
9,291
328
8,963
4,131
4,832
1,420
1,422
1,538
928
833
2,482
340
Dec 2021
9,614
326
9,288
4,219
5,069
1,442
1,478
1,610
999
811
2,592
356
Mar 2021
9,319
389
8,930
4,219
4,711
1,505
1,330
1,536
892
830
2,489
348
Plant head grade
g/t
Mar 2022
2.38
12.74
2.00
3.29
0.89
3.29
1.11
3.78
0.85
2.28
0.77
3.57
Dec 2021
2.42
13.46
2.03
3.45
0.85
3.52
1.00
3.90
0.87
2.39
0.75
3.57
Mar 2021
2.49
13.54
2.01
3.34
0.81
3.24
1.11
3.89
0.88
2.38
0.63
3.60
Plant recoveries3
%
Mar 2022
75.15
90.08
71.42
84.74
29.35
86.66
37.18
86.96
25.87
81.09
24.65
71.86
Dec 2021
76.20
89.26
72.86
85.44
30.35
87.41
36.98
86.93
27.01
83.37
27.08
72.85
Mar 2021
77.72
90.07
73.73
86.15
28.68
88.79
37.42
87.55
26.51
83.52
21.29
74.18
Yield3
g/t
Mar 2022
1.79
11.48
1.43
2.79
0.26
2.85
0.41
3.29
0.22
1.85
0.19
2.57
Dec 2021
1.84
12.01
1.48
2.95
0.26
3.08
0.37
3.39
0.23
1.99
0.20
2.60
Mar 2021
1.94
12.20
1.48
2.88
0.23
2.88
0.42
3.41
0.23
1.99
0.13
2.67
PGM production3,4
4Eoz - 2Eoz
Mar 2022
533,237
122,389
410,848
370,272
40,576
130,171
18,870
162,540
6,562
49,518
15,144
28,043
Dec 2021
569,674
127,774
441,900
399,853
42,047
142,642
17,572
175,492
7,547
51,952
16,928
29,767
Mar 2021
579,834
154,350
425,484
390,298
35,187
139,194
17,762
168,180
6,691
53,046
10,734
29,878
PGM sold5
4Eoz - 2Eoz
Mar 2022
563,328
111,153
452,175
155,095
17,167
187,611
49,518
15,144
27,640
Dec 2021
644,419
144,925
499,494
167,506
15,592
222,295
51,952
16,928
25,221
Mar 2021
596,486
129,900
466,586
164,689
16,970
193,783
53,046
10,734
27,364
Price and costs6
Average PGM basket price7
R/4Eoz - R/2Eoz
Mar 2022
42,210
31,323
45,061
46,559
29,993
45,007
48,327
36,793
34,514
Dec 2021
35,418
26,661
38,094
38,904
26,850
38,071
41,043
31,693
30,074
Mar 2021
47,954
31,835
52,722
52,982
31,114
53,663
58,377
37,944
38,383
Average PGM basket price6
US$/4Eoz - US$/2Eoz
Mar 2022
2,773
2,058
2,961
3,059
1,971
2,957
3,175
2,417
2,268
Dec 2021
2,297
1,729
2,470
2,523
1,741
2,469
2,662
2,055
1,950
Mar 2021
3,205
2,128
3,524
3,542
2,080
3,587
3,902
2,536
2,566
Operating cost8
R/t
Mar 2022
977
5,704
797
1,820
155
1,277
945
53
1,203
Dec 2021
993
5,755
819
1,879
164
1,305
980
63
1,180
Mar 2021
948
5,061
762
1,581
163
1,287
853
43
1,050
Operating cost7
US$/t
Mar 2022
64
375
52
120
10
84
62
3
79
Dec 2021
64
373
53
122
11
85
64
4
77
Mar 2021
63
338
51
106
11
86
57
3
70
Operating cost7
R/4Eoz - R/2Eoz
Mar 2022
17,306
15,287
17,952
19,858
11,659
18,616
15,893
8,716
14,585
Dec 2021
17,020
14,682
17,744
18,992
13,829
18,597
15,303
9,570
14,110
Mar 2021
15,465
12,755
16,521
17,093
12,211
17,865
13,351
10,043
12,233
Operating cost7
US$/4Eoz - US$/2Eoz
Mar 2022
1,137
1,004
1,179
1,305
766
1,223
1,044
573
958
Dec 2021
1,104
952
1,151
1,232
897
1,206
992
621
915
Mar 2021
1,034
853
1,104
1,143
816
1,194
892
671
818
All-in sustaining cost9
R/4Eoz - R/2Eoz
Mar 2022
18,142
18,940
17,886
20,041
17,806
14,863
7,462
13,979
Dec 2021
18,001
17,265
18,230
20,148
18,379
15,437
6,971
16,394
Mar 2021
16,621
13,763
17,738
19,002
18,755
12,137
10,369
13,401
All-in sustaining cost8
US$/4Eoz - US$/2Eoz
Mar 2022
1,192
1,244
1,175
1,317
1,170
977
490
918
Dec 2021
1,167
1,120
1,182
1,307
1,192
1,001
452
1063
Mar 2021
1,111
920
1,186
1,270
1,254
811
693
896
All-in cost9
R/4Eoz - R/2Eoz
Mar 2022
19,177
21,546
18,419
20,041
19,012
14,863
7,462
13,979
Dec 2021
19,400
22,047
18,579
20,148
19,165
15,437
6,971
16,394
Mar 2021
17,678
17,523
17,739
19,002
18,757
12,137
10,369
13,401
All-in cost8
US$/4Eoz - US$/2Eoz
Mar 2022
1,260
1,416
1,210
1,317
1,249
977
490
918
Dec 2021
1,258
1,430
1,205
1,307
1,243
1,001
452
1,063
Mar 2021
1,182
1,171
1,186
1,270
1,254
811
693
896
Capital expenditure6
Ore reserve development
Rm
Mar 2022
1,021
637
384
142
242
—
—
—
Dec 2021
864
476
388
148
240
—
—
—
Mar 2021
657
306
351
146
205
—
—
—
Sustaining capital
Rm
Mar 2022
552
166
386
156
183
46
1
113
Dec 2021
1,050
147
903
271
519
107
6
181
Mar 2021
499
250
249
112
96
35
6
114
Corporate and projects
Rm
Mar 2022
523
319
204
—
204
—
—
—
Dec 2021
751
611
140
—
140
—
—
—
Mar 2021
580
580
—
—
—
—
—
—
Total capital expenditure
Rm
Mar 2022
2,096
1,122
974
298
629
46
1
113
Dec 2021
2,665
1,234
1,431
419
899
107
6
181
Mar 2021
1,736
1,136
600
258
301
35
6
114
Total capital expenditure
US$m
Mar 2022
138
74
64
20
41
3
—
7
Dec 2021
173
80
93
27
58
7
—
12
Mar 2021
116
76
40
17
20
2
—
8
Average exchange rate for the quarters ended 31 March 2022, 31 December 2021 and 31 March 2021 was R15.22/US$, R15.42/US$ and R14.96/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 various recycling material which is excluded from the statistics shown above and is detailed in the PGM recycling table below
3 The Eastern Tailings Treatment Plant (ETTP) processing facility ounce production resulting from the processing of material from the Marikana underground operation was previously reported under the surface operation. These produced ounces are now appropriately included in the Marikana underground production resulting in a revision of March 2021 reported plant recoveries and yield for the Marikana underground and surface operations
4 Production per product – see prill split in the table below
5 PGM sold includes the third party PoC ounces sold
6 The Group 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
7 The average PGM basket price is the PGM revenue per 4E/2E ounce, prior to a purchase of concentrate adjustment
8 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
9 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 costs, see “All-in costs – Quarters”
Mining - PGM Prill split including third party PoC, excluding recycling operations
GROUP
SA OPERATIONS
US OPERATIONS
Mar 2022
Dec 2021
Mar 2021
Mar 2022
Dec 2021
Mar 2021
Mar 2022
Dec 2021
Mar 2021
%
%
%
%
%
%
%
%
%
Platinum
278,259
51%
297,498
51%
299,695
50%
250,401
59%
268,519
59%
264,712
60%
27,858
23%
28,979
23%
34,983
23%
Palladium
220,820
41%
234,266
40%
251,570
42%
126,289
30%
135,471
30%
132,203
30%
94,531
77%
98,795
77%
119,367
77%
Rhodium
36,738
7%
39,815
7%
38,485
6%
36,738
9%
39,815
9%
38,485
8%
Gold
8,112
1%
10,097
2%
9,209
2%
8,112
2%
10,097
2%
9,209
2%
PGM production 4E/2E
543,929
100%
581,676
100%
598,959
100%
421,540
100%
453,902
100%
444,609
100%
122,389
100%
127,774
100%
154,350
100%
Ruthenium
58,777
72,993
60,996
58,777
72,993
60,996
Iridium
14,566
16,561
15,436
14,566
16,561
15,436
Total 6E/2E
617,272
671,230
675,391
494,883
543,456
521,041
122,389
127,774
154,350
Figures may not add as they are rounded independently
Recycling at US operations
Unit
Mar 2022
Dec 2021
Mar 2021
Average catalyst fed/day
Tonne
23.7
23.0
23.8
Total processed
Tonne
2,132
2,114
2,139
Tolled
Tonne
—
—
14
Purchased
Tonne
2,132
2,114
2,125
PGM fed
3Eoz
190,871
172,511
195,474
PGM sold
3Eoz
147,571
176,433
218,450
PGM tolled returned
3Eoz
—
1,951
9,203
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
Mar 2022
8,748
492
8,256
236
200
256
623
—
—
774
6,659
Dec 2021
10,641
1,125
9,516
328
358
451
831
346
204
1,078
7,045
Mar 2021
11,150
1,206
9,944
338
—
429
1,331
439
198
1,143
7,272
Yield
g/t
Mar 2022
0.49
4.95
0.22
5.95
0.40
3.89
0.30
—
—
0.21
0.21
Dec 2021
0.76
5.17
0.24
6.51
0.47
4.95
0.36
4.20
0.45
0.26
0.20
Mar 2021
0.70
4.60
0.22
6.57
—
4.69
0.37
3.00
0.31
0.24
0.19
Gold produced
kg
Mar 2022
4,264
2,437
1,827
1,404
79
996
189
37
9
159
1,391
Dec 2021
8,097
5,818
2,279
2,134
170
2,232
297
1,452
91
284
1,437
Mar 2021
7,757
5,547
2,210
2,220
—
2,010
487
1,317
61
280
1,382
oz
Mar 2022
137,091
78,351
58,739
45,140
2,540
32,022
6,076
1,190
289
5,112
44,722
Dec 2021
260,325
187,053
73,272
68,610
5,466
71,760
9,549
46,683
2,926
9,131
46,201
Mar 2021
249,392
178,340
71,052
71,375
—
64,623
15,657
42,343
1,961
9,002
44,432
Gold sold
kg
Mar 2022
4,746
2,829
1,917
1,494
100
1,185
224
150
9
207
1,377
Dec 2021
8,426
6,148
2,278
2,330
176
2,289
282
1,529
91
266
1,463
Mar 2021
7,536
5,348
2,188
2,204
—
1,966
479
1,178
61
285
1,363
oz
Mar 2022
152,587
90,954
61,633
48,033
3,215
38,099
7,202
4,823
289
6,655
44,272
Dec 2021
270,902
197,663
73,239
74,911
5,659
73,593
9,067
49,158
2,926
8,552
47,037
Mar 2021
242,287
171,942
70,345
70,860
—
63,208
15,400
37,874
1,961
9,163
43,821
Price and costs
Gold price received
R/kg
Mar 2022
916,351
916,562
915,543
924,528
913,043
916,485
Dec 2021
884,643
885,874
883,703
883,333
879,699
886,535
Mar 2021
857,126
855,399
858,364
853,592
870,526
858,107
Gold price received
US$/oz
Mar 2022
1,873
1,873
1,871
1,889
1,866
1,873
Dec 2021
1,784
1,787
1,783
1,782
1,774
1,788
Mar 2021
1,782
1,778
1,785
1,775
1,810
1,784
Operating cost1
R/t
Mar 2022
511
6,486
155
5,301
295
5,637
254
—
—
183
135
Dec 2021
519
3,695
143
4,223
274
3,787
148
3,075
230
191
126
Mar 2021
459
3,220
124
3,765
—
3,716
196
2,315
116
145
108
US$/t
Mar 2022
34
426
10
348
19
370
17
—
—
12
9
Dec 2021
34
240
9
274
18
246
10
199
15
12
8
Mar 2021
31
215
8
252
—
248
13
155
8
10
7
R/kg
Mar 2022
1,048,077
1,309,397
699,507
891,026
746,835
1,448,795
835,979
13,432,432
2,111,111
893,082
647,017
Dec 2021
681,857
714,507
598,508
649,016
576,471
765,233
414,141
732,782
516,484
725,352
619,346
Mar 2021
659,688
700,090
558,281
573,288
—
793,134
535,524
771,830
375,410
593,929
567,149
US$/oz
Mar 2022
2,142
2,676
1,430
1,821
1,526
2,961
1,708
27,450
4,314
1,825
1,322
Dec 2021
1,375
1,441
1,207
1,309
1,163
1,544
835
1,478
1,042
1,463
1,249
Mar 2021
1,372
1,456
1,161
1,192
—
1,649
1,113
1,605
781
1,235
1,179
All-in sustaining cost2
R/kg
Mar 2022
1,183,944
1,080,928
1,462,030
4,188,679
908,213
712,418
Dec 2021
833,848
822,426
908,207
869,753
819,549
684,211
Mar 2021
772,572
731,851
844,744
882,082
658,596
648,129
All-in sustaining cost2
US$/oz
Mar 2022
2,420
2,209
2,988
8,560
1,856
1,456
Dec 2021
1,682
1,659
1,832
1,754
1,653
1,380
Mar 2021
1,606
1,522
1,756
1,834
1,369
1,348
All-in cost2
R/kg
Mar 2022
1,224,821
1,080,928
1,486,870
4,213,836
908,213
729,121
Dec 2021
865,061
822,426
933,100
872,840
819,549
700,615
Mar 2021
784,554
731,851
865,440
882,082
658,596
648,129
All-in cost2
US$/oz
Mar 2022
2,503
2,209
3,039
8,611
1,856
1,490
Dec 2021
1,745
1,659
1,882
1,761
1,653
1,413
Mar 2021
1,631
1,522
1,799
1,834
1,369
1,348
Capital expenditure
Ore reserve development
Rm
Mar 2022
468
252
185
31
—
—
Dec 2021
622
290
220
112
—
—
Mar 2021
603
272
209
123
—
—
Sustaining capital
Rm
Mar 2022
270
61
94
35
—
80
Dec 2021
480
119
223
68
—
70
Mar 2021
186
41
58
10
—
78
Corporate and projects3
Rm
Mar 2022
183
—
35
4
—
23
Dec 2021
243
—
64
5
—
24
Mar 2021
61
—
51
—
—
—
Total capital expenditure
Rm
Mar 2022
921
313
314
70
—
103
Dec 2021
1,345
409
507
185
—
94
Mar 2021
850
312
317
133
—
78
Total capital expenditure
US$m
Mar 2022
61
21
21
5
—
7
Dec 2021
87
27
33
12
—
6
Mar 2021
57
21
21
9
—
5
Average exchange rates for the quarters ended 31 March 2022, 31 December 2021 and 31 March 2021 was R15.22/US$, R15.42/US$ and R14.96/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 31 March 2022, 31 December 2021 and 31 March 2021 was R121 million (US$8 million), R150 million (US$10 million) and R10 million (US$1 million), respectively, the majority of which related to the Burnstone project and various IT projects
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
Mar 2022
10,927
1,797
9,130
3,451
4,709
838
132
430
(430)
Dec 2021
10,986
2,396
8,590
3,306
4,251
871
162
394
(394)
Mar 2021
9,133
1,618
7,515
2,797
3,845
765
108
372
(372)
Royalties
Mar 2022
638
—
638
365
269
4
—
31
(31)
Dec 2021
401
—
401
242
156
3
—
23
(23)
Mar 2021
829
—
829
440
385
4
—
44
(44)
Carbon tax
Mar 2022
—
—
—
(1)
1
—
—
—
—
Dec 2021
1
—
1
—
1
—
—
—
—
Mar 2021
1
—
1
—
1
—
—
—
—
Community costs
Mar 2022
40
—
40
—
40
—
—
—
—
Dec 2021
(5)
—
(5)
3
(8)
—
—
—
—
Mar 2021
34
—
34
3
31
—
—
—
—
Inventory change
Mar 2022
(1,297)
74
(1,371)
(476)
(895)
—
—
(21)
21
Dec 2021
(884)
(520)
(364)
(138)
(226)
—
—
26
(26)
Mar 2021
843
351
492
(92)
584
—
—
(6)
6
Share-based payments4
Mar 2022
35
14
21
8
10
3
—
—
—
Dec 2021
47
19
28
11
13
3
—
—
—
Mar 2021
28
16
12
5
6
2
—
—
—
Rehabilitation interest and amortisation5
Mar 2022
55
13
42
2
19
21
—
1
(1)
Dec 2021
79
8
71
1
42
28
—
1
(1)
Mar 2021
70
8
62
1
43
18
—
1
(1)
Leases
Mar 2022
16
2
14
3
9
2
—
—
—
Dec 2021
14
—
14
3
9
2
—
—
—
Mar 2021
14
—
14
4
8
2
—
—
—
Ore reserve development
Mar 2022
1,021
637
384
142
242
—
—
—
—
Dec 2021
864
476
388
148
240
—
—
—
—
Mar 2021
657
306
351
146
205
—
—
—
—
Sustaining capital expenditure
Mar 2022
552
166
386
156
183
46
1
113
(113)
Dec 2021
1,050
147
903
271
519
107
6
181
(181)
Mar 2021
499
250
249
112
96
35
6
114
(114)
Less: By-product credit
Mar 2022
(2,350)
(385)
(1,965)
(663)
(1,104)
(178)
(20)
(162)
162
Dec 2021
(2,351)
(320)
(2,031)
(619)
(1,150)
(212)
(50)
(137)
137
Mar 2021
(1,783)
(424)
(1,359)
(433)
(741)
(182)
(3)
(124)
124
Total All-in-sustaining costs6
Mar 2022
9,637
2,318
7,319
2,987
3,483
736
113
392
(392)
Dec 2021
10,202
2,206
7,996
3,228
3,847
802
118
488
(488)
Mar 2021
10,324
2,124
8,200
2,982
4,462
644
111
400
(400)
Plus: Corporate cost, growth and capital expenditure
Mar 2022
523
319
204
—
204
—
—
—
—
Dec 2021
755
611
144
—
144
—
—
—
—
Mar 2021
581
581
—
—
—
—
—
—
—
Total All-in-costs6
Mar 2022
10,160
2,637
7,523
2,987
3,687
736
113
392
(392)
Dec 2021
10,957
2,817
8,140
3,228
3,991
802
118
488
(488)
Mar 2021
10,905
2,705
8,200
2,982
4,462
644
111
400
(400)
PGM production
4Eoz - 2Eoz
Mar 2022
543,929
122,389
421,540
149,041
179,794
49,518
15,144
28,043
—
Dec 2021
581,676
127,774
453,902
160,214
195,041
51,952
16,928
29,767
—
Mar 2021
598,959
154,350
444,609
156,956
193,995
53,046
10,734
29,878
—
kg
Mar 2022
16,918
3,807
13,111
4,636
5,592
1,540
471
872
—
Dec 2021
18,092
3,974
14,118
4,983
6,066
1,616
527
926
—
Mar 2021
18,630
4,801
13,829
4,882
6,034
1,650
334
929
—
All-in-sustaining cost
R/4Eoz - R/2Eoz
Mar 2022
18,680
18,940
18,600
20,041
19,372
14,863
7,462
13,979
—
Dec 2021
18,485
17,265
18,852
20,148
19,724
15,437
6,971
16,394
—
Mar 2021
18,142
13,763
19,771
19,002
23,000
12,137
10,369
13,401
—
US$/4Eoz - US$/2Eoz
Mar 2022
1,227
1,244
1,222
1,317
1,273
977
490
918
—
Dec 2021
1,199
1,120
1,223
1,307
1,279
1,001
452
1,063
—
Mar 2021
1,213
920
1,322
1,270
1,537
811
693
896
—
All-in-cost
R/4Eoz - R/2Eoz
Mar 2022
19,694
21,546
19,118
20,041
20,507
14,863
7,462
13,979
—
Dec 2021
19,853
22,047
19,192
20,148
20,462
15,437
6,971
16,394
—
Mar 2021
19,162
17,523
19,772
19,002
23,002
12,137
10,369
13,401
—
US$/4Eoz - US$/2Eoz
Mar 2022
1,294
1,416
1,256
1,317
1,347
977
490
918
—
Dec 2021
1,287
1,430
1,245
1,307
1,327
1,001
452
1,063
—
Mar 2021
1,281
1,171
1,322
1,270
1,538
811
693
896
—
Average exchange rates for the quarters ended 31 March 2022, 31 December 2021 and 31 March 2021 was R15.22/US$, R15.42/US$ and R14.96/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
Mar 2022
Dec 2021
Mar 2021
Mar 2022
Dec 2021
Mar 2021
Mar 2022
Dec 2021
Mar 2021
Cost of sales, before amortisation and depreciation as reported per table above
10,927
10,986
9,133
9,130
8,590
7,515
4,709
4,251
3,845
Inventory change as reported per table above
(1,297)
(884)
843
(1,371)
(364)
492
(895)
(226)
584
Less: Chrome cost of sales
(353)
(384)
(224)
(353)
(384)
(224)
(132)
(92)
(58)
Total operating cost including third party PoC
9,277
9,718
9,752
7,406
7,842
7,783
3,682
3,933
4,371
Less: Purchase cost of PoC
(534)
(529)
(1,247)
(534)
(529)
(1,247)
(534)
(529)
(1,247)
Total operating cost excluding third party PoC
8,743
9,189
8,505
6,872
7,313
6,536
3,148
3,404
3,124
PGM production as reported per table above
4Eoz- 2Eoz
543,929
581,676
598,959
421,540
453,902
444,609
179,794
195,041
193,995
Less: Mimosa production
(28,043)
(29,767)
(29,878)
(28,043)
(29,767)
(29,878)
—
—
—
PGM production excluding Mimosa
515,886
551,909
569,081
393,497
424,135
414,731
179,794
195,041
193,995
Less: PoC production
(10,692)
(12,002)
(19,125)
(10,692)
(12,002)
(19,125)
(10,692)
(12,002)
(19,125)
PGM production excluding Mimosa and third party PoC
505,194
539,907
549,956
382,805
412,133
395,606
169,102
183,039
174,870
PGM production including Mimosa and excluding third party PoC
533,237
569,674
579,834
410,848
441,900
425,484
169,102
183,039
174,870
Tonnes milled/treated
000't
9,291
9,614
9,319
8,963
9,288
8,930
2,466
2,609
2,428
Less: Mimosa tonnes
(340)
(356)
(348)
(340)
(356)
(348)
—
—
—
PGM tonnes excluding Mimosa and third party PoC
8,951
9,258
8,971
8,623
8,932
8,582
2,466
2,609
2,428
Operating cost including third party PoC
R/4Eoz-R/2Eoz
17,983
17,608
17,137
18,821
18,489
18,768
20,479
20,165
22,532
US$/4Eoz-US$/2Eoz
1,182
1,142
1,146
1,237
1,199
1,255
1,346
1,308
1,506
R/t
1,036
1,050
1,087
859
878
907
1,493
1,507
1,800
US$/t
68
68
73
56
57
61
98
98
120
Operating cost excluding third party PoC
R/4Eoz-R/2Eoz
17,306
17,020
15,465
17,952
17,744
16,521
18,616
18,597
17,865
US$/4Eoz-US$/2Eoz
1,137
1,104
1,034
1,179
1,151
1,104
1,223
1,206
1,194
R/t
977
993
948
797
819
762
1,277
1,305
1,287
US$/t
64
64
63
52
53
51
84
85
86
Reconciliation of AISC and AIC excluding PoC for SA PGM and Marikana - Quarters
Total US and SA PGM
Total SA PGM
Marikana
R' million
Mar 2022
Dec 2021
Mar 2021
Mar 2022
Dec 2021
Mar 2021
Mar 2022
Dec 2021
Mar 2021
Total All-in-sustaining cost as reported per table above
9,637
10,202
10,324
7,319
7,996
8,200
3,483
3,847
4,462
Less: Purchase cost of PoC
(534)
(529)
(1,247)
(534)
(529)
(1,247)
(534)
(529)
(1,247)
Add: By-product credit of PoC
62
46
64
62
46
64
62
46
64
Total All-in-sustaining cost excluding PoC
9,165
9,719
9,141
6,847
7,513
7,017
3,011
3,364
3,280
Plus: Corporate cost, growth and capital expenditure
523
755
581
204
144
—
204
144
—
Total All-in-cost excluding PoC
9,688
10,474
9,722
7,051
7,657
7,018
3,215
3,508
3,280
PGM production excluding PoC
4Eoz- 2Eoz
505,194
539,907
549,956
382,805
412,133
395,606
169,102
183,039
174,870
All-in-sustaining cost excluding PoC
R/4Eoz-R/2Eoz
18,142
18,001
16,621
17,886
18,230
17,738
17,806
18,379
18,755
US$/4Eoz-US$/2Eoz
1,192
1,167
1,111
1,175
1,182
1,186
1,170
1,192
1,254
All-in-cost excluding PoC
R/4Eoz-R/2Eoz
19,177
19,400
17,678
18,419
18,579
17,739
19,012
19,165
18,757
US$/4Eoz-US$/2Eoz
1,260
1,258
1,182
1,210
1,205
1,186
1,249
1,243
1,254
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
Mar 2022
4,775
1,378
1,757
581
172
887
—
Dec 2021
5,760
1,605
1,860
1,189
192
914
—
Mar 2021
4,892
1,245
1,768
917
170
792
—
Royalties
Mar 2022
15
7
6
1
1
—
—
Dec 2021
49
30
11
7
1
—
—
Mar 2021
27
31
11
5
1
—
(21)
Carbon tax
Mar 2022
(12)
—
—
(12)
—
—
—
Dec 2021
—
—
—
—
—
—
—
Mar 2021
1
—
—
1
—
—
—
Community costs
Mar 2022
34
13
10
9
—
2
—
Dec 2021
31
11
9
8
—
3
—
Mar 2021
33
12
10
11
—
—
—
Share-based payments2
Mar 2022
19
4
6
4
—
5
—
Dec 2021
26
6
9
6
—
5
—
Mar 2021
13
2
4
2
—
5
—
Rehabilitation interest and amortisation3
Mar 2022
36
8
(1)
10
13
5
1
Dec 2021
43
—
1
13
22
5
2
Mar 2021
53
11
4
17
14
5
1
Leases
Mar 2022
19
1
4
7
2
5
—
Dec 2021
20
2
3
7
3
5
—
Mar 2021
20
2
4
7
3
4
—
Ore reserve development
Mar 2022
468
252
185
31
—
—
—
Dec 2021
622
290
220
112
—
—
—
Mar 2021
603
272
209
123
—
—
—
Sustaining capital expenditure
Mar 2022
270
61
94
35
—
80
—
Dec 2021
480
119
223
68
—
70
—
Mar 2021
186
41
58
10
—
78
—
Less: By-product credit
Mar 2022
(5)
(1)
(1)
—
—
(3)
—
Dec 2021
(5)
(2)
(1)
(1)
—
(1)
—
Mar 2021
(5)
(2)
(1)
(1)
—
—
—
Total All-in-sustaining costs4
Mar 2022
5,619
1,723
2,060
666
188
981
1
Dec 2021
7,026
2,061
2,335
1,409
218
1,001
2
Mar 2021
5,822
1,613
2,065
1,093
188
883
(20)
Plus: Corporate cost, growth and capital expenditure
Mar 2022
194
—
35
4
—
23
132
Dec 2021
263
—
64
5
—
24
170
Mar 2021
90
—
51
—
—
—
40
Total All-in-costs4
Mar 2022
5,813
1,723
2,095
670
188
1,004
133
Dec 2021
7,289
2,061
2,399
1,414
218
1,025
172
Mar 2021
5,912
1,613
2,116
1,093
188
883
19
Gold sold
kg
Mar 2022
4,746
1,594
1,409
159
207
1,377
—
Dec 2021
8,426
2,506
2,571
1,620
266
1,463
—
Mar 2021
7,536
2,204
2,445
1,239
285
1,363
—
oz
Mar 2022
152,587
51,248
45,300
5,112
6,655
44,272
—
Dec 2021
270,902
80,570
82,660
52,084
8,552
47,037
—
Mar 2021
242,287
70,860
78,608
39,835
9,163
43,821
—
All-in-sustaining cost
R/kg
Mar 2022
1,183,944
1,080,928
1,462,030
4,188,679
908,213
712,418
—
Dec 2021
833,848
822,426
908,207
869,753
819,549
684,211
—
Mar 2021
772,572
731,851
844,744
882,082
658,596
648,129
—
All-in-sustaining cost
US$/oz
Mar 2022
2,420
2,209
2,988
8,560
1,856
1,456
—
Dec 2021
1,682
1,659
1,832
1,754
1,653
1,380
—
Mar 2021
1,606
1,522
1,756
1,834
1,369
1,348
—
All-in-cost
R/kg
Mar 2022
1,224,821
1,080,928
1,486,870
4,213,836
908,213
729,121
—
Dec 2021
865,061
822,426
933,100
872,840
819,549
700,615
—
Mar 2021
784,554
731,851
865,440
882,082
658,596
648,129
—
All-in-cost
US$/oz
Mar 2022
2,503
2,209
3,039
8,611
1,856
1,490
—
Dec 2021
1,745
1,659
1,882
1,761
1,653
1,413
—
Mar 2021
1,631
1,522
1,799
1,834
1,369
1,348
—
Average exchange rates for the quarters ended 31 March 2022, 31 December 2021 and 31 March 2021 was R15.22/US$, R15.42/US$ and R14.96/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 Mar 20221
Quarter ended Dec 2021
Quarter ended Mar 2021
Figures in million - SA rand
Total
Total
Total
Profit before royalties and tax
10,468
227
17,775
Adjusted for:
Amortisation and depreciation
1,643
2,301
1,815
Interest income
(238)
(277)
(288)
Finance expense
722
721
600
Share-based payments
153
41
98
Loss on financial instruments
333
6,040
374
Loss/(gain) on foreign exchange differences
978
(917)
106
Share of results of equity-accounted investees after tax
(350)
(228)
(652)
Change in estimate of environmental rehabilitation obligation, and right of recovery receivable and payable
—
(162)
—
Gain on disposal of property, plant and equipment
(62)
(27)
(5)
Impairments
—
5,148
—
Early redemption premium on the 2025 Notes
—
196
—
Restructuring cost
9
59
28
IFRS 16 lease payments
(37)
(37)
(36)
Occupational healthcare expense
—
10
—
Loss due to dilution of interest in joint operation
—
2
—
Other non-recurring costs
45
83
11
Adjusted EBITDA
13,664
13,180
19,826
1 Adjusted EBITDA includes Sibanye-Stillwater Sandouville Refinery for the two months since acquisition (4 February 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
Mar 2022 quarter
Dec 2021 quarter
Mar 2021 quarter
Reef
Stillwater incl Blitz
East Boulder
Stillwater incl Blitz
East Boulder
Stillwater incl Blitz
East Boulder
Stillwater
Unit
Primary development (off reef)
(m)
1,852
667
1,576
476
1,784
476
Secondary development
(m)
2,899
1,086
3,169
980
4,375
1,402
SA PGM operations
Mar 2022 quarter
Dec 2021 quarter
Mar 2021 quarter
Reef
Bathopele
Thembe-lani
Khuseleka
Siphume-lele
Bathopele
Thembe-lani
Khuseleka
Siphume-lele
Bathopele
Thembe-lani
Khuseleka
Siphume-lele
Rustenburg
Unit
Advanced
(m)
343
1,393
2,220
559
426
1,817
2,417
699
306
1,500
2,465
698
Advanced on reef
(m)
343
604
892
317
426
848
1,026
322
306
667
878
385
Height
(cm)
212
293
281
274
223
305
282
287
219
287
286
269
Average value
(g/t)
2.8
2.4
2.1
2.9
2.9
3.2
2.3
3.1
2.1
2.3
2.2
3.1
(cm.g/t)
601
691
600
806
634
960
645
899
466
665
644
831
SA PGM operations
Mar 2022 quarter
Dec 2021 quarter
Mar 2021 quarter
Reef
K3
Rowland
Saffy
E3
4B
K4
K3
Rowland
Saffy
E3
4B
K4
K3
Rowland
Saffy
E3
4B
K4
Marikana
Unit
Primary development
(m)
6,678
4,641
3,122
649
789
29
7,419
5,632
3,607
957
969
—
6,459
5,332
3,982
896
1,147
—
Primary development - on reef
(m)
5,138
3,366
2,049
381
565
2
5,590
4,346
2,234
581
698
—
4,929
4,213
2,835
552
776
—
Height
(cm)
217
220
224
215
222
230
216
221
218
218
217
—
215
221
218
216
221
—
Average value
(g/t)
2.8
2.6
2.5
2.8
2.8
3.0
2.9
2.6
2.8
2.8
2.8
—
3.2
2.5
2.7
3.0
2.7
—
(cm.g/t)
607
572
553
603
620
700
628
563
606
603
612
—
692
548
586
641
597
—
SA PGM operations
Mar 2022 quarter
Dec 2021 quarter
Mar 2021 quarter
Reef
Kopaneng
Simunye1
Bamba-nani
Kwezi
K6
Kopaneng
Simunye1
Bamba-nani
Kwezi
K6
Kopaneng
Simunye1
Bamba-nani
Kwezi
K6
Kroondal
Unit
Advanced
(m)
478
533
553
210
488
570
496
369
504
110
460
437
455
Advanced on reef
(m)
261
390
210
82
377
385
146
196
450
—
260
332
455
Height
(cm)
229
214
213
261
236
219
220
243
241
291
218
223
238
Average value
(g/t)
1.2
1.9
1.1
0.7
1.8
1.7
0.8
1.2
2.2
—
1.4
2.4
2.3
(cm.g/t)
270
415
224
173
417
379
178
294
538
—
309
525
540
1 The Simunye ore reserve was completely developed in the March 2021 quarter and is continuing with normal stoping activities until anticipated shaft closure
SA gold operations
Mar 2022 quarter
Dec 2021 quarter
Mar 2021 quarter
Reef
Carbon
leader
Main
VCR
Carbon
leader
Main
VCR
Carbon
leader
Main
VCR
Driefontein
Unit
Advanced
(m)
676
293
958
953
296
909
759
136
1,136
Advanced on reef
(m)
118
90
258
117
50
267
80
43
366
Channel width
(cm)
22
59
72
21
77
76
18
72
97
Average value
(g/t)
36.3
11.0
47.3
34.9
17.2
49.1
18.4
9.9
43.2
(cm.g/t)
818
644
3,422
736
1,332
3,735
324
709
4,202
SA gold operations
Mar 2022 quarter
Dec 2021 quarter
Mar 2021 quarter
Reef
Kloof
Main
Libanon
VCR
Kloof
Main
Libanon
VCR
Kloof
Main
Libanon
VCR
Kloof
Unit
Advanced
(m)
998
375
20
839
1,461
522
—
1,135
1,197
430
—
1,241
Advanced on reef
(m)
266
102
20
122
334
188
—
157
245
142
—
165
Channel width
(cm)
143
99
110
99
141
128
—
146
167
61
—
106
Average value
(g/t)
13.0
10.8
2.5
13.4
8.5
9.4
—
6.4
8.3
15.7
—
16.6
(cm.g/t)
1,861
1,061
279
1,321
1,192
1,201
—
931
1,393
959
—
1,761
SA gold operations
Mar 2022 quarter
Dec 2021 quarter
Mar 2021 quarter
Reef
Beatrix
Kalkoen-krans
Beatrix
Kalkoen-krans
Beatrix
Kalkoen-krans
Beatrix
Unit
Advanced
(m)
787
53
2,792
67
2,799
105
Advanced on reef
(m)
231
—
777
36
597
35
Channel width
(cm)
132
—
153
53
134
160
Average value
(g/t)
8.7
—
9.0
16.2
7.4
5.9
(cm.g/t)
1,141
—
1,371
861
993
947
SA gold operations
Mar 2022 quarter
Dec 2021 quarter
Mar 2021 quarter
Reef
Kimberley
Kimberley
Kimberley
Burnstone
Unit
Advanced
(m)
38
—
—
Advanced on reef
(m)
—
—
—
Channel width
(cm)
—
—
—
Average value
(g/t)
—
—
—
(cm.g/t)
—
—
—
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
In Europe:
Swiss Resource Capital AG
Jochen Staiger
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 Services
PO Box 358516
Pittsburgh
PA 15252-8516
US toll free: +1 888 269 2377
Tel: +1 201 680 6825
Email: shrrelations@bnymellon.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
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 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 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 or sufficient technically skilled employees, 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.