UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Report of Foreign Private Issuer
Pursuant to Rules 13a-16 or 15d-16 under
the Securities Exchange Act of 1934
Dated February 18, 2020
File Number: 001-35785
SIBANYE GOLD LIMITED
(Translation of registrant’s name into English)
Libanon Business Park
1 Hospital Street (off Cedar Avenue)
Libanon, Westonaria, 1780
South Africa
Indicate by check mark whether the registrant files or will file annual reports under cover
Form 20-F or Form 40-F.
Form 20-F or Form 40-F.
Form 20-F
X
Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(1): _____
Regulation S-T Rule 101(b)(1): _____
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(7): _____
Regulation S-T Rule 101(b)(7): _____
1
MARKET RELEASE
Sibanye-Stillwater Mineral Resources and Mineral Reserves declaration as at 31 December 2019
Johannesburg, 18 February 2020: Sibanye-Stillwater (Tickers JSE: SGL and NYSE: SBGL) is pleased to
report updated Group Mineral Resources and Mineral Reserves, as at 31 December 2019.
Johannesburg, 18 February 2020: Sibanye-Stillwater (Tickers JSE: SGL and NYSE: SBGL) is pleased to
report updated Group Mineral Resources and Mineral Reserves, as at 31 December 2019.
Salient features
·
90% increase in the total Platinum Group Metals (PGM) Mineral Resources to 389.0Moz and a 20%
increase in the Group’s PGM Mineral Reserves to 55.1Moz, primarily due to the inclusion of the
Marikana (previously Lonmin) assets, acquired in June 2019
increase in the Group’s PGM Mineral Reserves to 55.1Moz, primarily due to the inclusion of the
Marikana (previously Lonmin) assets, acquired in June 2019
·
Ongoing successful definition drilling at the Blitz project, Stillwater Mine, at the United States (US)
PGM operations yielded 2.0Moz of additional Mineral Reserves
PGM operations yielded 2.0Moz of additional Mineral Reserves
·
Gold Mineral Resources at the South African (SA) gold operations increased by 52% primarily due
to a reduction in costs associated with the Kloof integration project, facilitating a decrease in cut-
to a reduction in costs associated with the Kloof integration project, facilitating a decrease in cut-
off grades
·
Exploration projects’ advanced through the establishment of key partnerships including Aldebaran
Resources Inc, Generation Mining Ltd and Wallbridge Ltd
Resources Inc, Generation Mining Ltd and Wallbridge Ltd
Sibanye Gold Limited
Trading as Sibanye-Stillwater
Reg. 2002/031431/06
Incorporated in the Republic of South Africa
Share codes: SGL (JSE) and SBGL (NYSE)
ISIN – ZAE000173951
Issuer code: SGL
(“Sibanye-Stillwater”,”the Company” and/or “the Group”)
Registered Address:
Constantia Office Park
Bridgeview House • Building 11 • Ground Floor
Cnr 14th Avenue & Hendrik Potgieter Road
Weltevreden Park • 1709
Postal Address:
Private Bag X5 • Westonaria • 1780
Tel +27 11 278 9600 • Fax +27 11 278 9863
2
The group complies with both the JSE and the US Securities and Exchange Commission (SEC) guidelines
on commodity prices used in the estimation of Mineral Reserves at all managed operations and
projects. An average exchange rate of R14.50/US$ and the commodity prices illustrated below were
used in the estimation process:
on commodity prices used in the estimation of Mineral Reserves at all managed operations and
projects. An average exchange rate of R14.50/US$ and the commodity prices illustrated below were
used in the estimation process:
31-Dec-19
31-Dec-18
Precious metals
US$/oz
R/oz
R/kg
US$/oz
R/oz
R/kg
Gold
1,300
18,850
610,000
1,238
16,796
540,000
Platinum
887
12,862
413,506
959
12,994
417,781
Palladium
1,123
16,284
523,526
819
11,097
356,791
Rhodium
3,600
52,200
1,678,267
1,180
15,989
514,058
Iridium
1,247
18,082
581,333
814
11,030
354,613
Ruthenium
200
2,900
93,237
102
1,382
44,436
Base Metals
US$/lb
US$/tonne
R/tonne
US$/lb
US$/tonne
R/tonne
Nickel
6.33
13,955
183,454
4.99
11,009
149,172
Copper
3.14
6,923
91,133
2.68
5,913
80,121
31-Dec-19
31-Dec-18
US$/lb
US$/tonne
R/tonne
US$/oz
US$/tonne
R/tonne
Cobalt
28.00
61,729
895,076
20.00
44,092
597,441
Uranium oxide (U
3
O
8
)
1
32.00
70 548
960
37.00
81,569
1,105,266
Chromium oxide (Cr
2
O
3
)
2 3
0.07
165
2,393
0.09
207
2,804
1,2
Long term contract price
3
42% Concentrate
Over the past six months, PGM prices, in particular palladium and rhodium have increased significantly.
Recent spot prices of palladium have exceeded US$2,500/oz and rhodium US$11,000/oz, resulting in
increases of more than 100% and 200% over reported Mineral Reserve prices respectively. Both the
Southern Africa (SA) and US PGM operations are exposed to these movements, with the US PGM
operations predominantly palladium rich (78% of the 2E basket), and palladium and rhodium
constituting approximately 30% and 9% of the 4E basket at the SA PGM operations. In addition, the
Rand/US$ exchange rate, is currently trading at approximately R14.90 further enhancing the
profitability of the SA operations.
Recent spot prices of palladium have exceeded US$2,500/oz and rhodium US$11,000/oz, resulting in
increases of more than 100% and 200% over reported Mineral Reserve prices respectively. Both the
Southern Africa (SA) and US PGM operations are exposed to these movements, with the US PGM
operations predominantly palladium rich (78% of the 2E basket), and palladium and rhodium
constituting approximately 30% and 9% of the 4E basket at the SA PGM operations. In addition, the
Rand/US$ exchange rate, is currently trading at approximately R14.90 further enhancing the
profitability of the SA operations.
3
·
Group overview
Mineral Resources
Mineral Reserves
31-Dec-19
31-Dec-18
31-Dec-19
31-Dec-18
PGM operations
Tonnes
Grade
2E/4E
2E/4E
Tonnes
Grade
2E/4E
2E/4E
(Mt) (g/t) (Moz) (Moz) (Mt) (g/t) (Moz) (Moz)
US
152.9 16.5 81.1 79.9 48.3 17.3 26.9 25.6
SA
1,492.5 4.5 218.0 96.2 290.3 3.0 28.2 20.4
Total operations
1,645.4 5.7 299.1 176.0 338.6 5.1 55.1 46.1
Mineral Resources
Mineral Reserves
31-Dec-19
31-Dec-18
31-Dec-19
31-Dec-18
PGM projects
Tonnes
Grade
2E/4E
2E/4E
Tonnes
Grade
2E/4E
2E/4E
(Mt) (g/t) (Moz) (Moz) (Mt) (g/t) (Moz) (Moz)
Americas
138.6
0.0
3.1
4.0
SA
626.0
4.3
86.8
24.4
Total projects
764.7
3.7
89.9
28.3
Total PGM
2,410.1
5.0
389.0
204.4
338.6
5.1
55.1
46.1
Mineral Resources
Mineral Reserves
31-Dec-19
31-Dec-18
31-Dec-19
31-Dec-18
Gold operations
Tonnes Grade Gold Gold Tonnes Grade Gold Gold
(Mt) (g/t) (Moz) (Moz) (Mt) (g/t) (Moz) (Moz)
SA
591.9 2.7 51.5 33.9 268.9 1.3 10.9 12.1
Total operations
591.9 2.7 51.5 33.9 268.9 1.3 10.9 12.1
Gold projects
Tonnes Grade Gold Gold Tonnes Grade Gold Gold
(Mt) (g/t) (Moz) (Moz) (Mt) (g/t) (Moz) (Moz)
SA
467.1 3.1 46.5 63.7 32.2 4.3 4.5 4.5
US
2,636.2
0.1
6.6
6.6
Total projects
3,103.3
0.5
53.1
70.3
32.2
4.3
4.5
4.5
Total Gold
3,695.2
0.9
104.6
104.2
301.1
1.6
15.4
16.6
Uranium at gold
operations
operations
Tonnes Grade U3O8 U3O8 Tonnes Grade U3O8 U308
(Mt) (kg/t) (Mlb) (Mlb) (Mt) (kg/t) (Mlb) (Mlb)
SA
11.4
1.1
27.0
27.0
Total operations
11.4
1.1
27.0
27.0
Uranium projects
Tonnes Grade U3O8 U3O8 Tonnes Grade U3O8 U308
(Mt) (kg/t) (Mlb) (Mlb) (Mt) (kg/t) (Mlb) (Mlb)
SA
262.3
0.1
51.7
51.7
Total projects
262.3
0.1
51.7
51.7
Total Uranium
273.7
8.9
78.7
78.7
Mineral Resources
Mineral Reserves
31-Dec-19
31-Dec-18
31-Dec-19
31-Dec-18
Copper projects
Tonnes Grade Copper Copper Tonnes Grade Copper Copper
(Mt) (%) (Mlb) (Mlb) (Mt) (%) (Mlb) (Mlb)
US
2,774.5 0.3 18,711.5
18,795.8
Total projects
2,774.5
0.3
18,711.5
18,795.8
Total Copper
2,774.5
0.3
18,711.5
18,795.8
1
For the US PGM operations, the 2E is represented by Pt and Pd.
2
For the SA PGM operations, the 4E is represented Pt, Pd, Rh and Au.
3
Numbers may not appear additive due to rounding
4
The substantial increase in the PGM Mineral Resource and Mineral Reserve base, largely as a result of
ongoing drilling at the Blitz project at the Stillwater Mine in the US and the acquisition of Lonmin Plc,
enhances the mine to market strategy and positions the PGM operations to continue delivering value
on a sustainable basis. The inclusion of Lonmin’s projects into the portfolio has substantially improved
both the greenfields and brownfields project pipeline, providing the Company with significant
development and growth optionality under appropriate economic circumstances.
enhances the mine to market strategy and positions the PGM operations to continue delivering value
on a sustainable basis. The inclusion of Lonmin’s projects into the portfolio has substantially improved
both the greenfields and brownfields project pipeline, providing the Company with significant
development and growth optionality under appropriate economic circumstances.
Subsequent to the substantial but necessary restructuring that took place in 2018 and 2019 the Mineral
Reserve base at our SA gold operations has remained relatively steady during 2019,. The significant
growth in Mineral Resources, which was largely driven by a forecast reduction in costs associated with
the Kloof integration project, is pleasing, and provides for optionality under an enhanced metal price
environment
Group Mineral Resources and Mineral Reserves per segment
·
US PGM operations
–
Total 2E PGM Mineral Resources of 81.1Moz, an increase of 2%
–
Total 2E PGM Mineral Reserves of 26.9Moz, an increase of 5%
Mineral Resources
Mineral Reserves
31-Dec-19
31-Dec-18
31-Dec-19
31-Dec-18
PGM operations
Tonnes
Grade 2E 2E Tonnes
Grade 2E 2E
(Mt) (g/t) (Moz) (Moz) (Mt) (g/t) (Moz) (Moz)
Stillwater (2E)
85.0 17.6 48.2 45.8 26.8 19.4 16.7 14.8
East Boulder (2E)
67.9 15.1 32.9 34.0 21.5 14.7 10.2 10.9
Total US PGM
operations
operations
152.9
16.5
81.1
79.9
48.3
17.3
26.9
25.6
Note: 2E PGM = Pt (78%) + Pd (22%)
Mineral Resources remain largely unchanged with mining depletions offset by resource growth
(+2,5Moz) at the Blitz section of the Stillwater mine. The growth in Mineral Reserves was driven by further
positive drilling results at the Blitz section of the Stillwater Mine. Ongoing external audits by independent
parties have noted that Mineral Reserve tonnages may be marginally understated and grades
(+2,5Moz) at the Blitz section of the Stillwater mine. The growth in Mineral Reserves was driven by further
positive drilling results at the Blitz section of the Stillwater Mine. Ongoing external audits by independent
parties have noted that Mineral Reserve tonnages may be marginally understated and grades
marginally overstated due to the addition of unplanned mineralised dilution during stoping. This is not
deemed to have a material impact on estimated Mineral Reserve ounces and further definition of
unplanned dilution is currently being investigated for inclusion in future Mineral Reserve estimates,
including the implementation of scanning technology in stoping operations.
deemed to have a material impact on estimated Mineral Reserve ounces and further definition of
unplanned dilution is currently being investigated for inclusion in future Mineral Reserve estimates,
including the implementation of scanning technology in stoping operations.
A detailed reconciliation of 2018 to 2019 US PGM operations Mineral Reserves is shown in the table
below.
US PGM operations – Mineral Reserve reconciliation
Factors
2E PGM (Moz)
31-Dec-18
25.6
Depletion
-0.7
Area Inclusions/Exclusions
1
1.7
Geological Interpretation
0.3
31-Dec-19
26.9
1
Expansion in the Blitz project area
·
Other projects in the Americas
–
Total 2E PGM Mineral Resources of 3.1Moz, a decrease of 22%
–
Total Gold Mineral Resources of 6.6Moz, unchanged
–
Total Copper Mineral Resources of 18,711.5Mlb, a decrease of <1%
5
2E
5
PGM Mineral Resources
Au Mineral Resources
Cu Mineral Resources
31-Dec-19
31-
Dec-
18
31-Dec-19
31-
Dec-
18
31-Dec-19
31-Dec-
18
Projects
Tonnes Grade 2E
PGM
2E
PGM
Tonnes Grade Gold Gold Tonnes Grade Copper Copper
(Mt) (g/t) (Moz) (Moz) (Mt) (g/t) (Moz) (Moz)
(Mt)
(%)
(Mlb)
(Mlb)
Altar
1
2,613.9
0.1
6.3
6.3
2,613.9
0.3
17,931.0
17,931.0
Marathon
2
138.3
0.7
3.1
4.0
138.3
0.2
645.8
730.1
Rio
Grande
Grande
3
22.3
0.3
0.2
0.2
22.3
0.3
134.7
134.7
Denison
4
0.3
5.9
0.1
Total
Americas
Projects
Americas
Projects
138.6
0.0
3.1
4.0
2,636.2
0.1
6.6
6.6
2,774.5
0.3
18,711.5
18,795.8
1
100% Attributable, non-managed
2
55.58% Attributable, non-managed, based on a 49% direct and a 6,58% indirect interest.
3
19.9% Attributable, non-managed
4
80% Attributable, non-managed
5
2E PGM represented by Pt and Pd (Prill split Marathon: Pd (76%) Pt (24%), Denison: Pd (55%), Pt(45%))
The Altar and Rio Grande Mineral Resources remained unchanged, with no advance in earn-in by our
JV partner, Aldebaran Resources Inc. During 2019, Aldebaran Resources Inc. drilled four holes at Altar
JV partner, Aldebaran Resources Inc. During 2019, Aldebaran Resources Inc. drilled four holes at Altar
totalling 5,416 m, discovering a new Cu-Au-Mo porphyry directly under the QDM gold resource.
During 2019, Sibanye-Stillwater concluded an agreement with Generation Mining Limited (Gen Mining)
through which Gen Mining acquired a 51% interest in the Marathon project and formed an
During 2019, Sibanye-Stillwater concluded an agreement with Generation Mining Limited (Gen Mining)
through which Gen Mining acquired a 51% interest in the Marathon project and formed an
unincorporated joint venture with Stillwater Canada Inc., in exchange for a cash consideration of 3.0
million Canadian dollars (CAD) and a 12.9% equity interest in Gen Mining. Gen Mining has an option
to earn up to an 80% interest through spending of $10 million and preparing a Preliminary Economic
Assessment within four years of the property acquisition date marked as July 11, 2019.
million Canadian dollars (CAD) and a 12.9% equity interest in Gen Mining. Gen Mining has an option
to earn up to an 80% interest through spending of $10 million and preparing a Preliminary Economic
Assessment within four years of the property acquisition date marked as July 11, 2019.
Gen Mining published a revised Mineral Resource estimate for the Marathon deposit dated 9
September 2019, and has also included additional Mineral Resources at the Geordie and Sally
deposits, which forms part of the greater Marathon Property. The total PGM Mineral Resource of the
Marathon project has increased from 4Moz to 5.5Moz. Due to the transaction with Gen Mining, the
September 2019, and has also included additional Mineral Resources at the Geordie and Sally
deposits, which forms part of the greater Marathon Property. The total PGM Mineral Resource of the
Marathon project has increased from 4Moz to 5.5Moz. Due to the transaction with Gen Mining, the
attributable reported Marathon PGM and Cu mineral resources for Sibanye-Stillwater declined by 23%
and 12% respectively.
The Mineral Resources for the Denison PGM exploration project is included for the first time. Denison
project is a PGM exploration project on the Sudbury Igneous Complex (SIC), approximately 30km to
and 12% respectively.
The Mineral Resources for the Denison PGM exploration project is included for the first time. Denison
project is a PGM exploration project on the Sudbury Igneous Complex (SIC), approximately 30km to
the west southwest of the town of Sudbury. During 2019, Sibanye-Stillwater acquired the entire
shareholding in Lonmin PLC, including the Denison project, which was 100% held by Loncan, a
subsidiary of Lonmin. During 2019, Loncan entered into a binding agreement with Wallbridge Mining
whereby Loncan has appointed Wallbridge as the operator of the Revised Denison Property to raise
shareholding in Lonmin PLC, including the Denison project, which was 100% held by Loncan, a
subsidiary of Lonmin. During 2019, Loncan entered into a binding agreement with Wallbridge Mining
whereby Loncan has appointed Wallbridge as the operator of the Revised Denison Property to raise
the necessary funding, implement the business plan and manage the daily operations of Loncan.
Loncan has at the end of October 2019 issued Wallbridge with 20% of Loncan (Current Loncan
shareholding is currently 80% Lonmin and 20% Wallbridge).
Loncan has at the end of October 2019 issued Wallbridge with 20% of Loncan (Current Loncan
shareholding is currently 80% Lonmin and 20% Wallbridge).
·
SA PGM operations
Total 4E PGM Mineral Resources of 218.0Moz, an increase of 127%, inclusive of 124.3Moz
attributable to Marikana operation
attributable to Marikana operation
–
Total 4E PGM Mineral Reserves of 28.2Moz, an increase of 38%, inclusive of 9.2Moz attributable
to the Marikana operation
to the Marikana operation
–
6
Mineral Resources
Mineral Reserves
31-Dec-19
31-Dec-
18
31-Dec-19
31-Dec-
18
PGM operations
Tonnes
Grade 4E 4E Tonnes
Grade 4E 4E
(Mt) (g/t) (Moz) (Moz) (Mt) (g/t) (Moz) (Moz)
Rustenburg underground
499.8 5.0 80.6 82.2 111.9 3.8 13.7 14.5
Kroondal underground
1
41.7 3.2 4.3 4.7 14.6 2.6 1.2 1.5
Mimosa underground
2
55.3 3.6 6.4 6.7 15.2 3.5 1.7 1.8
Total underground (Excl.
Marikana)
Marikana)
596.8
4.8
91.3
93.6
141.7
3.7
16.6
17.8
Marikana underground
3
811.3
4.7
123.8
64.2
4.2
8.6
Total Underground (Incl.
Marikana)
Marikana)
1408.1
4.8
215.1
93.6
205.8
3.8
25.2
17.8
Rustenburg Surface
69.4 1.1 2.4 2.6 69.4 1.1 2.4 2.6
Total Surface (Excl. Marikana)
69.4
1.1
2.4
2.6
69.4
1.1
2.4
2.6
Marikana Surface
3
15.0 1.2 0.6
15.0 1.2 0.6
Total Surface (Incl. Marikana)
84.4
1.1
2.9
2.6
84.4
1.1
2.9
2.6
Total SA PGM operations
(Excl.Marikana)
(Excl.Marikana)
666.2
4.4
93.7
96.2
211.1
2.8
19.0
20.4
Total SA PGM operations
(Incl. Marikana)
(Incl. Marikana)
1492.5
4.5
218.0
96.2
290.3
3.0
28.2
20.4
1,
50% Attributable, managed
2
50% Attributable, non-managed
3
95,25% Attributable, managed
The large increase in 4E PGM Mineral Resources was primarily due to the inclusion of the Marikana
assets (124.3Moz), which were acquired through the Lonmin acquisition. 4E PGM Mineral Reserves at
the Rustenburg, Kroondal and Mimosa operations decreased by 1.4Moz, primarily as a result of
assets (124.3Moz), which were acquired through the Lonmin acquisition. 4E PGM Mineral Reserves at
the Rustenburg, Kroondal and Mimosa operations decreased by 1.4Moz, primarily as a result of
depletion of 1.6Moz from mining activities during 2019, partly off-set by 0.2Moz increase due to the
latest life of mine scheduling.
latest life of mine scheduling.
A thorough review of the historic (Sept 2018) 4E PGM Mineral Reserves at the Marikana Operations,
post the takeover of these assets by Sibanye-Stillwater in June 2019, resulted in a decrease of 22.1Moz
post the takeover of these assets by Sibanye-Stillwater in June 2019, resulted in a decrease of 22.1Moz
primarily due to:
–
Depletion of 1.2Moz from mining activities during 2019 (15 months Oct 2018 to Dec 2019)
–
Reduction of 1.1Moz due to an updated geological interpretation influencing design and
scheduling.
scheduling.
–
Reduction of 1.5Moz due to the application of the economic evaluation process.
–
Removal of Mineral Reserves of 11.7Moz from operations on Care and Maintenance without the
requisite feasibility studies in line with Sibanye-Stillwater’s policy.
requisite feasibility studies in line with Sibanye-Stillwater’s policy.
–
Removal of Mineral Reserves of 11.8Moz from projects below infrastructure which are not
included in the life of mine.
included in the life of mine.
–
Feasibility studies are currently being conducted on selected projects to confirm economic
viability at current economic parameters which may positively impact future mineral reserve
estimations.
viability at current economic parameters which may positively impact future mineral reserve
estimations.
·
The decrease was partially offset by:
–
An addition of 0.3Moz included under the Marikana Mineral Reserves identified as a synergistic
benefit.
benefit.
–
Sibanye-Stillwater has reported reserves on an attributable basis of 95.25%, increasing the total
reported Mineral attributable Reserves by 4.9Moz in line with Group policy.
7
A detailed reconciliation of 2018 to 2019 SA PGM operations Mineral Reserves is shown in the table below.
SA PGM Operations – Mineral Reserves Reconciliation
Factors
4E PGM (Moz)
31-Dec-18 (Excl. Marikana)
20.4
Depletion
-1.6
Geological Interpretation
1
0.01
Economic Parameters
0.02
Modifying factors
1
0.1
31-Dec-18 (Excl. Marikana)
19.0
Marikana (30-Sept-18)
31.2
Attributable Adjustment to 95.25%
6
4.9
Depletion
-1.2
Area Inclusions/Exclusions
2,3
-23.2
Geological Interpretation
4
-1.1
Economic Parameters
5
-1.5
Modifying factors
0.0
Marikana (31-Dec-18)
9.2
Total (31-Dec-18)
28.2
1
Updates in geological interpretations and modifying factors
2
Removal of Mineral Reserves from projects and operations placed on care and maintenance and below infrastructure
3
Benefit associated with synergies realised between shaft boundaries
4
Increases in geological loss with latest interpretation
5
Removal of sub-economic mineral reserves at the end of LoM due to tail cutting
6
Reserves declared at 95,25% attributable in line with Group methodology
·
SA PGM Projects
–
Total 4E PGM Mineral Resources of 86.8Moz, an increase of 256%, inclusive of Akanani and
Limpopo (acquired as part of the Lonmin assets)
Limpopo (acquired as part of the Lonmin assets)
Mineral Resources
Mineral Reserves
31-Dec-19
31-Dec-
18
31-Dec-19
31-Dec-
18
PGM Projects
Tonnes
Grade ��4E 4E Tonnes
Grade 4E 4E
(Mt) (g/t) (Moz) (Moz) (Mt) (g/t) (Moz) (Moz)
Blue Ridge
1
23.1
3.3
2.4
2.4
Vygenhoek
2
0.0
0.0
0.0
0.2
Zondernaam
3
77.4
6.4
15.9
15.9
Hoedspruit
32.6
5.5
5.8
5.8
Total (Excl. ex Lonmin Projects)
133.1
5.6
24.1
24.4
Akanani
4
293.4
3.9
36.8
Limpopo
5
199.6
4.0
25.9
Total SA PGM projects
626.0
4.3
86.8
24.4
1
50% Attributable, managed
2
Prospecting right expired
3
74% Attributable, managed
4
74% Attributable, managed
5
Attributable portions of Baobab (95,25%), Doornvlei (95,25%) and the Dwaalkop JV (45,3%), managed
8
The inclusion of Akanani and the larger Limpopo project have dramatically enhanced the Group’s
project pipeline. These projects provide the company with significant short-term and longer-term
project pipeline. These projects provide the company with significant short-term and longer-term
growth options, with Akanani being a high-quality resource on the Plat Reef, amenable to bulk mining
methods, and Limpopo being a well maintained operation under care and maintenance.
methods, and Limpopo being a well maintained operation under care and maintenance.
·
SA gold operations
–
Mineral Resources of 51.5Moz, an increase of 52%.
–
Mineral Reserves of 10.9Moz, a decline of 10%.
Mineral Resources
Mineral Reserves
31-Dec-19
31-Dec-
18
31-Dec-19
31-Dec-
18
Gold operations
Tonnes Grade Gold Gold Tonnes Grade Gold Gold
(Mt) (g/t) (Moz) (Moz) (Mt) (g/t) (Moz) (Moz)
Beatrix underground
50.3 6.4 10.3 7.4 11.3 4.1 1.5 1.2
Cooke – underground
1
4.0
Driefontein - underground
42.6 10.0 13.8 10.1 11.6 7.1 2.6 3.3
Kloof - underground
67.5 10.8 23.5 8.2 19.0 7.3 4.4 5.0
Total underground
160.4
9.2
47.6
29.8
41.9
6.4
8.5
9.5
Beatrix - surface
0.0
0.0
Cooke - surface
11.0 0.3 0.1 0.2 11.0 0.3 0.1 0.2
Driefontein - surface
0.0
0.0
Kloof - surface
8.3 0.3 0.1 0.1 8.3 0.3 0.1 0.1
DRDGOLD - surface
2
412.2 0.3 3.8 3.8 207.7 0.3 2.2 2.2
Total surface
431.5
0.3
3.9
4.1
227.1
0.3
2.3
2.6
Total SA gold operations
591.9
2.7
51.5
33.9
268.9
1.3
10.9
12.1
1
Closure Initiated
2
38% Attributable, non-managed
The increase in SA Gold Mineral Resources is primarily due to the use of lower cut-off grades at the
Kloof operation. The planned pay-limits at this operation reduced due to cost savings realised from the
Kloof integration project. This project is designed to close the unprofitable Kloof 3 and Kloof 7 shafts,
and to increase production at Kloof 8 and Kloof Main Shafts, which will result in increased volumes and
lower fixed costs.
Kloof integration project. This project is designed to close the unprofitable Kloof 3 and Kloof 7 shafts,
and to increase production at Kloof 8 and Kloof Main Shafts, which will result in increased volumes and
lower fixed costs.
The decrease in Gold Mineral Reserves can largely be attributed to:
–
Depletion of 0.8Moz from mining activities during 2019
–
Changes in the Mineral Resource model for the Ventersdorp Contact Reef (VCR) at Kloof 4
Shaft, which contributed to an overall decrease for Kloof of 0.3Moz
Shaft, which contributed to an overall decrease for Kloof of 0.3Moz
–
Structural geology adjustments on the Carbon Leader Reef (CLR) at Driefontein 5 Shaft, which
resulted in geotechnical pillar adjustments and which contributed to an overall decrease at
Driefontein of 0.5Moz
resulted in geotechnical pillar adjustments and which contributed to an overall decrease at
Driefontein of 0.5Moz
–
These decreases were offset by an extension of the Beatrix 4 Shaft Life of Mine (0.5Moz), where
the operation has shown continued profitability following rationalisation in 2018.
the operation has shown continued profitability following rationalisation in 2018.
9
A detailed reconciliation of 2018 to 2019 SA Gold Operations Mineral Reserves is shown in the table
below.
below.
SA gold operations – Mineral Reserves Reconciliation
Factors
Au (Moz)
31-Dec-18
12.1
Depletion
-0.8
Area Inclusions/Exclusions
1
0.3
Geological Interpretation
2
-0.2
Estimation Methodology
3
-0.3
Economic Parameters
4
-0.2
Modifying factors
5
0.1
31-Dec-19
10.9
1
Beatrix 4 Shaft LoM extended, Driefontein 1 Shaft inclusions, Kloof 4 Shaft exclusions, DRDGOLD changes
2
Kloof 8 Shaft sub-crop position changed, Driefontein 5 Shaft structural complexities in Overbank Area
3
Driefontein CLR changes in Overbank Area, Kloof VCR changes in 4 Shaft
4
Surface unpay exclusions, Driefontein 5 Shaft unpay exclusions
5
Improvement in the MCF at Driefontein and Kloof
·
SA gold projects
–
Total Gold Mineral Resources of 46.5Moz, a decrease of 27%.
–
Total Gold Mineral Reserve of 4.5Moz, unchanged.
Mineral Resources
Mineral Reserves
31-Dec-19
31-Dec-
18
31-Dec-19
31-Dec-
18
Gold Projects
Tonnes Grade Gold Gold Tonnes Grade Gold Gold
(Mt) (g/t) (Moz) (Moz) (Mt) (g/t) (Moz) (Moz)
Beatrix - BI
1
7.9
5.6
1.4
1.7
Driefontein – BI
38.3
8.9
11.0
9.1
Kloof – BI
32.8 11.9 12.6 16.5 2.7 5.1 0.4 0.4
Burnstone
69.3 4.9 11.0 11.0 14.2 4.3 1.9 1.9
Bloemhoek
28.3
4.7
4.3
4.3
De Bron Merriespruit
28.3 4.4 4.0 4.0 15.3 4.3 2.1 2.1
DRDGOLD
2
- Underground
14.8
Total Underground
204.8
6.7
44.3
61.5
32.2
4.3
4.5
4.5
Cooke surface tailings
3
262.3
0.3
2.2
2.2
Total Surface
262.3
0.3
2.2
63.7
Total SA Gold Projects
467.1
3.1
46.5
63.7
32.2
4.3
4.5
4.5
1
BI = Below Infrastructure
2
38% Attributable, non-managed
3
Tailings dams retained post the sale to DRDGOLD
The single largest impact on the Gold Projects Mineral Resources was the exclusion of the attributable
portion of the DRDGOLD underground resource at ERPM, following the flooding of the underground
workings, resulting in a decrease of 14.8Moz. In January 2020, Sibanye-Stillwater exercised its option to
increase its shareholding in DRDGold to 50.1%. This increase in shareholding will positively impact the
portion of the DRDGOLD underground resource at ERPM, following the flooding of the underground
workings, resulting in a decrease of 14.8Moz. In January 2020, Sibanye-Stillwater exercised its option to
increase its shareholding in DRDGold to 50.1%. This increase in shareholding will positively impact the
Company’s attributable Gold Mineral Resources and Mineral Reserves in future reporting periods. The
other material impact was at the Kloof Below Infrastructure (BI) Mineral Resources, which decreased
by 4Moz due to an update in the estimation model. The estimation domains were adjusted in line with
changes in the facies for the EBA area, as well as constraining the estimate in the areas with a lack of
other material impact was at the Kloof Below Infrastructure (BI) Mineral Resources, which decreased
by 4Moz due to an update in the estimation model. The estimation domains were adjusted in line with
changes in the facies for the EBA area, as well as constraining the estimate in the areas with a lack of
borehole information by using the Global Mean for simple kriging.
10
Mineral Reserves remained unchanged.
A detailed reconciliation of 2018 to 2019 SA gold project’s Mineral Reserve is shown in the table below.
SA gold projects – Mineral Reserves Reconciliation
Factors
Au (Moz)
31-Dec-18
4.5
31-Dec-19
4.5
·
SA Uranium Operations and Projects
–
Total U3O8 Mineral Resource remained unchanged at 78.7Mlb.
Mineral Resources
Mineral Reserves
31-Dec-19
31-Dec-
18
31-Dec-19
31-Dec-
18
Uranium at gold operations
Tonnes Grade U
3
O
8
U
3
O
8
Tonnes Grade U
3
O
8
U
3
0
8
(Mt) (kg/t) (Mlb) (Mlb) (Mt) (kg/t) (Mlb) (Mlb)
Beatrix (Beisa)
11.4
1.1
27.0
27.0
Total Uranium operations
11.4
1.1
27.0
27.0
Uranium projects
Tonnes Grade U
3
O
8
U
3
O
8
Tonnes Grade U
3
O
8
U
3
0
8
(Mt) (kg/t) (Mlb) (Mlb) (Mt) (kg/t) (Mlb) (Mlb)
Cooke surface tailings
1
262.3
0.1
51.7
51.7
Total Uranium Projects
262.3
0.1
51.7
51.7
Total Uranium operations and
Projects
273.7
0.1
78.7
78.7
1
Includes the Cooke portion of the WRTRP assets not included in the deal with DRDGOLD in 2018
·
Corporate Governance
Sibanye-Stillwater reports its Mineral Resources and Mineral Reserves in accordance with the SAMREC
Code, the updated Section 12 of the JSE Listings Requirements; and in consideration of the SEC Industry
Code, the updated Section 12 of the JSE Listings Requirements; and in consideration of the SEC Industry
Guide 7, which is aligned with the guiding principles of SOX. Recent amendments adopted by the SEC
to modernise the property disclosure requirements for mining registrations, which has not come into
effect fully yet, aligns closely with the requirements under the JSE and SAMREC, and any non-
compliance to SEC Industry Guide 7 is therefore considered immaterial. The Altar, Marathon and Rio
to modernise the property disclosure requirements for mining registrations, which has not come into
effect fully yet, aligns closely with the requirements under the JSE and SAMREC, and any non-
compliance to SEC Industry Guide 7 is therefore considered immaterial. The Altar, Marathon and Rio
Grande Mineral Resources were originally compiled under NI 43-101 guidelines but are deemed to be
SAMREC compliant.
This Mineral Reserve and Mineral Resource declaration represents a condensed and consolidated
summary of the full Sibanye-Stillwater Mineral Resource and Mineral Reserve declaration available in
SAMREC compliant.
This Mineral Reserve and Mineral Resource declaration represents a condensed and consolidated
summary of the full Sibanye-Stillwater Mineral Resource and Mineral Reserve declaration available in
the Group Mineral Resource and Mineral Reserve Report, which will be published on 22 April 2020 and
will be available at
will be available at
www.sibanyestillwater.com
Guided by a commitment to best practice corporate governance, the statement has been reviewed
and confirmed by each segment’s Technical Services.
The Mineral Resources and Mineral Reserves are estimates at a particular date, and are affected by
fluctuations in mineral prices, the ZAR/US$ exchange rate, operating costs, mining permits, changes in
and confirmed by each segment’s Technical Services.
The Mineral Resources and Mineral Reserves are estimates at a particular date, and are affected by
fluctuations in mineral prices, the ZAR/US$ exchange rate, operating costs, mining permits, changes in
legislation and operating factors. Although all permits may not be finalised and in place at the time of
reporting, there is no reason to expect that these will not be granted.
reporting, there is no reason to expect that these will not be granted.
11
All statement figures are managed by Sibanye-Stillwater with the exception of those for Mimosa, the
attributable portion for DRDGOLD and the US Projects. Mineral Resources are reported inclusive of
attributable portion for DRDGOLD and the US Projects. Mineral Resources are reported inclusive of
Mineral Reserves, and production volumes are reported in metric tonnes (t).
Gold and Uranium estimates are reported separately from each other; therefore, no Gold equivalents
are stated to avoid potential anomalies as a result of year-on-year metal price differentials.
Gold and Uranium estimates are reported separately from each other; therefore, no Gold equivalents
are stated to avoid potential anomalies as a result of year-on-year metal price differentials.
The Southern African PGM Operations statement are reported as 3E PGM + Au, which consists of
platinum, palladium, rhodium and gold. The US operations are reported as 2E PGM, which consist of
platinum and palladium.
The individual proportions of the reported PGM’s are provided in the tables below.
4E Prill split (SA PGM operations)
Unit
Rustenburg
Kroondal
Marikana
Mimosa
MER
UG2
UG2
MER
UG2
MSZ
Platinum
%
63.80
54.53
54.94
61.88
59.53
49.35
Palladium
%
27.30
34.31
33.95
27.79
28.70
38.47
Rhodium
%
3.99
10.43
10.38
3.30
11.21
4.20
Gold
%
4.92
0.72
0.72
7.02
0.56
7.97
MER – Merensky Reef
UG2 – Upper Group 2 Chromitite
MSZ – Main Sulphide Zone
6E Prill Split (SA Region)
Precious Metals Prill Split
Unit
Rustenburg
Kroondal
Marikana
Mimosa
MER
UG2
UG2
MER
UG2
MSZ
Platinum
%
59.76 46.00 47.20 57.25 48.00 45.80
Palladium
%
25.57 29.04 25.71 25.71 23.14 35.70
Rhodium
%
3.73
8.55
8.45
3.06
9.04
3.90
Gold
%
4.61
0.68
0.59
6.50
0.45
7.40
Ruthenium
%
3.23 12.65 14.42 6.39 15.58 3.20
Iridium
%
3.11
3.09
3.64
1.10
3.79
4.00
MER – Merensky Reef
UG2 – Upper Group 2 Chromitite
MSZ – Main Sulphide Zone
UG2 – Upper Group 2 Chromitite
MSZ – Main Sulphide Zone
2E Prill split (US PGM
operations)
operations)
Unit
Stillwater Mine
East Boulder Mine
Average
Platinum
%
22.17
21.73
22.01
Palladium
%
77.83
78.27
77.99
All financial models used to determine Mineral Reserves are based on current tax regulations at 31
December 2019. Rounding of figures may result in minor computational discrepancies. Where this
happens, it is not deemed significant.
12
For the United States Region operations, the lead competent person designated in terms of the
SAMREC Code, who takes responsibility for the consolidation and reporting of the Stillwater and East
Boulder Mineral Resources and Mineral Reserves, and for the overall regulatory compliance of these
figures, is Brent LaMoure, who gave his consent for the disclosure of the 2019 Mineral Resources and
Mineral Reserves Statement. Brent [B.Sc Mining Eng] is registered with the Mining and Metallurgical
Boulder Mineral Resources and Mineral Reserves, and for the overall regulatory compliance of these
figures, is Brent LaMoure, who gave his consent for the disclosure of the 2019 Mineral Resources and
Mineral Reserves Statement. Brent [B.Sc Mining Eng] is registered with the Mining and Metallurgical
Society of America (01363QP) and has 25 years’ experience relative to the type and style of mineral
deposit under consideration. For the US projects Resource estimation, the competent persons are
Stanford Foy (Altar and Rio Grande) and Rodney N Thomas (Marathon). Stan is registered with the
Society for Mining, Metallurgy and Exploration Inc. (4140727RM) and has 28 years’ experience relative
to the type and style of mineral deposit under consideration. Rodney is registered with the Society for
deposit under consideration. For the US projects Resource estimation, the competent persons are
Stanford Foy (Altar and Rio Grande) and Rodney N Thomas (Marathon). Stan is registered with the
Society for Mining, Metallurgy and Exploration Inc. (4140727RM) and has 28 years’ experience relative
to the type and style of mineral deposit under consideration. Rodney is registered with the Society for
Professional Geoscientists (Ontario) and has 40 years’ mineral industry experience, including several
years relative to the type and style of mineral deposit under consideration and is the designated
Qualified Person for Generation Mining Limited.
years relative to the type and style of mineral deposit under consideration and is the designated
Qualified Person for Generation Mining Limited.
For the Southern African Platinum Operations, the lead competent person designated in terms of the
SAMREC Code, who takes responsibility for the consolidation and reporting of the SA Platinum
Operations Mineral Resources and Mineral Reserves, and for the overall regulatory compliance of
these figures, is Andrew Brown, who gave his consent for the disclosure of the 2019 Mineral Resources
and Mineral Reserves Statement. Andrew [M.Sc Mining Eng] is registered with SAIMM (705060) and has
SAMREC Code, who takes responsibility for the consolidation and reporting of the SA Platinum
Operations Mineral Resources and Mineral Reserves, and for the overall regulatory compliance of
these figures, is Andrew Brown, who gave his consent for the disclosure of the 2019 Mineral Resources
and Mineral Reserves Statement. Andrew [M.Sc Mining Eng] is registered with SAIMM (705060) and has
36 years’ experience relative to the type and style of mineral deposit under consideration.
For the Southern African Gold Operations, the lead competent person designated in terms of the
SAMREC Code, with responsibility for the consolidation and reporting of the SA Gold Operations
Mineral Resources and Mineral Reserves, and for overall regulatory compliance of these figures, is
For the Southern African Gold Operations, the lead competent person designated in terms of the
SAMREC Code, with responsibility for the consolidation and reporting of the SA Gold Operations
Mineral Resources and Mineral Reserves, and for overall regulatory compliance of these figures, is
Gerhard Janse van Vuuren, who gave his consent for the disclosure of the 2019 Mineral Resources and
Mineral Reserves Statement. Gerhard [GDE (Mining Eng), MBA, MSCC and B. Tech (MRM)] is registered
with SAIMM (706705) and has 32 years’ experience relative to the type and style of mineral deposit
under consideration.
Mineral Reserves Statement. Gerhard [GDE (Mining Eng), MBA, MSCC and B. Tech (MRM)] is registered
with SAIMM (706705) and has 32 years’ experience relative to the type and style of mineral deposit
under consideration.
The 38.05% Attributable portion (as at 31 December 2019) of the DRDGOLD current surface tailings
operations including the ERGO and FWGR operations. For this attributable portion of the DRD resources
and reserves, the company was reliant on external competent persons as follows: The Mineral
Resources for the ERGO surface operations is based on depletion (up to December 2019) and the
Competent Person designated in terms of SAMREC is Mr M Mudau, MSc Eng, Pr. Sci. Nat., the Resource
Geology Manager at the RVN Group. The Competent Person designated in terms of SAMREC who
takes responsibility for the reporting of the surface Mineral Reserves, also based on depletion up to
December 2019, is Professor S Rupprecht, Principal Mining Engineer of the RVN Group. The Competent
Geology Manager at the RVN Group. The Competent Person designated in terms of SAMREC who
takes responsibility for the reporting of the surface Mineral Reserves, also based on depletion up to
December 2019, is Professor S Rupprecht, Principal Mining Engineer of the RVN Group. The Competent
Person designated in terms of SAMREC who takes responsibility for the reporting of the Mineral Reserves
for the Far West Gold Recoveries operation, also based on depletion up to December 2019, is Mr
Vaughn Duke of Sound Mining Proprietary Limited
for the Far West Gold Recoveries operation, also based on depletion up to December 2019, is Mr
Vaughn Duke of Sound Mining Proprietary Limited
Investor relations contact:
Email: ir@sibanyestillwater.com
James Wellsted
Email: ir@sibanyestillwater.com
James Wellsted
Head of Investor Relations
Tel: +27 (0) 83 453 4014
Sponsor: J.P. Morgan Equities South Africa Proprietary Limited
Ends.
Tel: +27 (0) 83 453 4014
Sponsor: J.P. Morgan Equities South Africa Proprietary Limited
Ends.
13
FORWARD LOOKING STATEMENTS
This announcement includes “forward-looking statements” within the meaning of the “safe harbour”
provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking
statements may be identified by the use of words such as “target”, “will”, “forecast”, “expect”,
“potential”, “intend”, “estimate”, “anticipate”, “can” and other similar expressions that predict or
indicate future events or trends or that are not statements of historical matters. The forward-looking
statements set out in this announcement involve a number of known and unknown risks, uncertainties
and other factors, many of which are difficult to predict and generally beyond the control of Sibanye-
Stillwater, that could cause Sibanye-Stillwater’s actual results and outcomes to be materially different
from historical results or from any future results expressed or implied by such forward-looking statements.
These forward-looking statements speak only as of the date of this announcement. Sibanye-Stillwater
undertakes no obligation to update publicly or release any revisions to these forward-looking
statements to reflect events or circumstances after the date of this announcement or to reflect the
occurrence of unanticipated events, save as required by applicable law.
This announcement includes “forward-looking statements” within the meaning of the “safe harbour”
provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking
statements may be identified by the use of words such as “target”, “will”, “forecast”, “expect”,
“potential”, “intend”, “estimate”, “anticipate”, “can” and other similar expressions that predict or
indicate future events or trends or that are not statements of historical matters. The forward-looking
statements set out in this announcement involve a number of known and unknown risks, uncertainties
and other factors, many of which are difficult to predict and generally beyond the control of Sibanye-
Stillwater, that could cause Sibanye-Stillwater’s actual results and outcomes to be materially different
from historical results or from any future results expressed or implied by such forward-looking statements.
These forward-looking statements speak only as of the date of this announcement. Sibanye-Stillwater
undertakes no obligation to update publicly or release any revisions to these forward-looking
statements to reflect events or circumstances after the date of this announcement or to reflect the
occurrence of unanticipated events, save as required by applicable law.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly authorised.
caused this report to be signed on its behalf by the undersigned, thereunto duly authorised.
SIBANYE GOLD LIMITED
Dated: February 18, 2020
By:
/s/ Charl Keyter
Name:
Charl Keyter
Title:
Chief Financial Officer