Sibanye Stillwater

S I B A N Y E S T I L L W AT E R

SIBANYE STILLWATER

Strong In the Face

of Challenge PRODUCTION: Timothy Reeder

Today, Sibanye-Stillwater stands as the third largest global producer of platinum and palladium, and features among the world’s top gold producing companies. With a renewed focus on safety and significant challenges now overcome, the Group looks to build on a hugely positive set of results to further cement itself at the top of SA, and world, mining. www.enterprise-africa.net / 3

INDUSTRY FOCUS: MINING

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An independent, global precious metal mining group, Sibanye-Stillwater produces a unique product mix, including gold and the platinum group metals (PGMs).

Although relatively brief, Sibanye Stillwater’s sparkling history in South Africa dates back to 2012 and Gold Fields’s unbundling of its 100%-owned subsidiary, GFI Mining South Africa, comprising the Kloof, Driefontein and Beatrix gold mines.

A busy period of acquisitions and exchanges of significant assets culminated in the December 2016 announcement of Sibanye’s proposed acquisition of Stillwater Mining Company (Stillwater) in the US. Having been awarded Deal of the Year by Ansarada DealMakers in the February, May 2017 saw it conclude the largest PGM transaction globally in over a decade by successfully acquiring Stillwater, catapulting the Group into third spot among the world’s largest producers of palladium and platinum while remaining in the top ten global gold companies.

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SIGNIFICANT TRANSFORMATION Sibanye Gold Limited began trading as Sibanye-Stillwater at the end of August 2017, at which time the company also restructured itself by region, with the Southern Africa and the United States operations becoming separate entities.

Since then, the group and its operations have only gone from strength to strength, reflected by its dominant standing in such a globally competitive industry. “We take pride in the fact that we have grown SibanyeStillwater from what was perceived as a high-cost South African gold producer with limited operational life, into a globally-competitive South African precious metals company,” says Sibanye-Stillwater of the journey that it has taken to date.

“We have some of the highestgrade gold and PGM reserves in the world,” adds Sibanye-Stillwater CEO, Neal Froneman. “For the first 18 months we focused on turning this business around, cutting costs by 24% in the gold business and improving productivity. We also brought a lot

// WE ARE PLEASED THAT THE EXTENDED STRIKE AT OUR GOLD OPERATIONS HAS ENDED, WITHOUT UNDERMINING OTHER STAKEHOLDERS OR COMPROMISING THEIR RIGHTS // more of a technical focus into the business, and that all resulted in us building a very solid company from an operating point of view.

“Through the reduction in costs we were also able to double our reserves, providing the sustainability we needed.”

In South Africa, Sibanye-Stillwater’s gold producing assets and projects are located throughout the Witwatersrand Basin, with PGM assets set on the western limb of the Bushveld Complex, near Rustenburg.

SIBANYE STILLWATER

GOLD STRIKE CONCLUDED April brought the welcome - and eagerly awaited - news that the five-month strike by the Association of Mineworkers and Construction Union (AMCU) at its SA gold operations had been resolved, with both parties acknowledging the importance of re-assessing and developing a constructive working relationship moving forward.

This will entail the fostering of a safe and sustainable business, and one that creates value for all stakeholders, to be brought about via a facilitated ‘post-strike conflict’ relationshipbuilding program aimed at aligning leaders of both organised labour and management.

As part of this, ACMU has committed to the 2018 three-year wage agreement previously signed with the National Union of Mineworkers (NUM), while developing and implementing a plan to ensure a safe start and rampup of production post-strike, and to promote and ensure sustainable safe production together with the company.

On Sibanye-Stillwater’s part, all employees at its gold operations will receive a payment of R4,000 in the form of cash or a voucher to alleviate hardship, as well as the provision of transport to allow employees to return to work. Any employees who were dismissed for strike related misconduct will now also be subject to normal disciplinary proceedings, in line with the company’s disciplinarily code.

For both Sibanye-Stillwater and ACMU, the immediate focus will henceforth be on ensuring that the gold operations re-commence safely.

To enable this, initial shifts will consist of fit-for-work medicals, training and assessing work places before mining activities are allowed to re-commence in full confidence.

// WE ARE POSITIVE THAT OUR MINING IMPROVES LIVES //

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INDUSTRY FOCUS: MINING

Of the historic resolution, Neal Froneman declared: “We are pleased that the extended strike at our gold operations has ended, without undermining other stakeholders or compromising their rights.

“We are encouraged by AMCU’s

commitment to peace and safety, and are hopeful that the relationship can now be rebuilt in a constructive manner, for the future benefit of all stakeholders.

“It is with sadness that we reflect on the losses and hardship resulting from the strike, which include lives lost

and serious injuries sustained. We are fully committed to restoring the gold operations to profitability, for the benefit of all stakeholders including employees, the local communities and those dependent on the regional economy.”

STRONGER THAN EVER Overcoming challenge is an integral part of the Sibanye-Stillwater DNA, and recent months have called for greater resilience than ever in its lifetime.

This made the group’s most recently released set of results an even more impressive feat given the conditions in which they were achieved, and serve to give Sibanye-Stillwater an enviable platform from which to expand in the years to come.

This success was felt across the board, with a 41% improvement in safety in the second half of the year, relative to the regression of the first half, among the headline figures. This is crucial, particularly in light of the now-

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SIBANYE STILLWATER

// I AM PLEASED TO REPORT THAT WE HAVE EMERGED FROM A DIFFICULT PERIOD IN A ROBUST STATE // resolved conflict, and to underline its commitment, the group established the Global Safe Production Advisory Panel consisting of leading academics, and the marked improvement in H2 continues in 2019: seven million fatality-free shifts achieved by the group represents a new safe production record.

“It is again my privilege to report to all our stakeholders on the progress made by the Group during 2018,” outlined Chairman Sello Moloko. “I am pleased to report that we have emerged from this difficult period in a robust state with the appropriateness of our carefully considered strategy

to diversify, geographically and by commodity, already proven.”

Emerging strategically and operationally well-positioned to benefit from the significantly improved outlook for precious metals, after a 2018 which proved challenging in several ways, also reported was a 10% growth in revenue and 67% decline in level three and higher environmental incidents as a result of improved environmental management.

With the group’s Rustenburg and Aquarius acquisitions establishing Sibanye-Stillwater as a leading PGM producer and much future mine-tomarket PGM business to come in South Africa, Neal Froneman’s pride in where the group finds itself to date was wholly understandable.

“Sibanye-Stillwater has undergone many fundamental changes since it was established in February 2013,” he recognised, “transforming from a gold only producer with three mines in South

Africa into a globally diversified precious metals producer with operations and projects in five jurisdictions.

“Following the completion of the proposed acquisition of Lonmin, the group will rank as one of the largest primary producers of platinum and palladium, and associated PGMs, in the world.”

“We are positive that our mining improves lives and our vision to create superior value for all stakeholders is unwavering with all of our decisions and actions.” Sibanye-Stillwater’s progression has been holistic, of that there can be no doubt. It is an admirable method of operating: safety first, success will follow.

WWW.SIBANYESTILLWATER.COM

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ENTERPRISE AFRICA

MAY 2019