Sibanye Gold 6K Current report

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 January 19, 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

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): _____

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): _____

MARKET RELEASE

Results for the six months and year ended 31 DECEMBER 2019 – Short form announcement

Johannesburg, 19 February 2020: Sibanye Gold Limited trading as Sibanye-Stillwater (Sibanye-Stillwater or the
Group) (JSE: SSW & NYSE: SBGL) is pleased to report operating and financial results for the six months ended
31 December 2019, and reviewed condensed consolidated provisional financial statements for the year ended
31 December 2019.

SALIENT FEATURES FOR THE SIX MONTHS AND YEAR ENDED 31 DECEMBER 2019

Continued improvement in Group safe production including zero fatalities at SA gold operations (+10 million
fatality free shifts)

44% increase in revenue to R73 billion (US$5.0 billion) and R432 million profit for 2019 (loss of R2.5 billion
(US$191 million for 2018)

79% increase in adjusted EBITDA to record R14,956 million (US$1,034 million)

Business significantly de-risked – ND:adjusted EBITDA reduced to 1.25x (from 2.5x at end 2018), well below debt
covenants

Solid operational recovery in H2 2019 following strike and other operational disruptions in H1 2019

Successful Integration and restructuring at the Marikana operation – R1.2 billion of annualised synergies by end
2020 (64% higher than forecast)

KEY OPERATING RESULTS

US dollar

SA Rand

Year ended

Six months ended

Year ended

Dec 2018

Dec 2019 Dec 2018 Jun 2019 Dec 2019

KEY STATISTICS

Dec 2019 Jun 2019 Dec 2018 Dec 2019 Dec 2018

UNITED STATES (US) OPERATIONS

PGM operations

1,2

592,608

593,974 298,649 284,773 309,202 oz

2E PGM

production

9,617

8,857

9,289

18,475

18,432

686,592

853,130 326,346 421,450 431,681 oz

PGM recycling

13,427 13,109

10,151

26,535

21,355

1,007

1,403

1,016

1,285

1,508 US$/2Eoz

Average basket price

R/2Eoz

22,150 18,247

14,407

20,287

13,337

313.6

504.2

160.3

208.3

295.9 US$m

Adjusted EBITDA

Rm 4,332.5 2,958.4 2,264.5 7,290.9 4,151.9

28 %

Adjusted EBITDA margin

677

784

701

772

795 US$/2Eoz

All-in sustaining cost

R/2Eoz

11,678 10,965

9,929

11,337

8,994

SOUTHERN AFRICA (SA) OPERATIONS

PGM operations

2,5

1,175,672 1,608,332 606,506 627,991 980,343 oz

4E PGM

production

30,492 19,533

18,864

50,025

36,567

1,045

1,383

1,039

1,224

1,475 US$/4Eoz

Average basket price

R/4Eoz

21,671 17,377

14,729

19,994

13,838

217.6

608.3

136.3

143.8

464.5 US$m

Adjusted EBITDA

Rm 6,753.2 2,043.0 1,880.7 8,796.2 2,881.8

32 %

Adjusted EBITDA margin

787

1,027

755

932

1,074 US$/4Eoz

All-in sustaining cost

R/4Eoz

15,779 13,228

10,706

14,857

10,417

Gold operations

1,176,700

932,659 578,188 344,752 587,908 oz

Gold production

18,286 10,723

17,984

29,009

36,600

1,259

1,395

1,212

1,308

1,432 US$/oz

Average gold price

R/kg 676,350 597,360 552,526 648,662 535,929

102.8

(67.0)

21.0 (207.0)

140.0 US$m

Adjusted EBITDA

Rm 1,967.7 (2,937.1)

355.3

(969.4) 1,362.4

(5)

(49)

16 %

Adjusted EBITDA margin

(49)

(5)

1,309

1,544

1,308

1,904

1,347 US$/oz

All-in sustaining cost

R/kg 636,405 869,141 596,100 717,966 557,530

GROUP

(189.0)

4.5

(195.4)

(18.1)

22.6 US$m

Basic earnings

316.8

(254.7) (2,576.3)

62.1 (2,499.6)

(1.3)

(69.7)

(9.5)

(89.0)

19.3 US$m

Headline earnings

254.9 (1,263.1) (117.6) (1,008.2)

(16.6)

632.0

1,034.3

315.6

141.9

892.4 US$m

Adjusted EBITDA

Rm 12,937.5 2,018.5 4,473.8 14,956.0 8,369.4

13.24

14.46

14.18

14.20

14.69 R/US$

Average exchange rate

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 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.

The Platinum Group Metals (PGM) production in the SA Region is principally platinum, palladium, rhodium and gold, referred to as 4E (3PGM+Au), and in the US Region is principally platinum

and palladium, referred to as 2E (2PGM)

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. For a reconciliation
of profit/loss before royalties and tax to adjusted EBITDA, see note 11 of the condensed consolidated provisional financial statements.

Sibanye Gold Limited

Trading as Sibanye-Stillwater
Reg. 2002/031431/06

Incorporated in the Republic of South Africa
Share code: SSW

ISIN – ZAE000259701
Issuer code: SSW
(“Sibanye-Stillwater”,”the Company” and/or “the Group”)

Business Address:
Constantia Office Park
Cnr 14th Avenue & Hendrik Potgieter Road

Bridgeview House, Ground Floor (Lakeview Avenue)
Weltevreden Park

1709, South Africa

Postal Address:
Private Bag X5

Westonaria, 1780

Tel +27 11 278 9600

Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue

See “salient features and cost benchmarks – six months” included in the full announcement (results booklet) for the definition of All-in sustaining cost

The SA PGM operations’ results for the six months and year ended 31 December 2019 include Marikana operations for the one month and seven months since acquisition, respectively.
The gold operations’ results for the six months and year ended 31 December 2018 include DRDGOLD for the five months since acquisitions

Statement by Neal Froneman, Chief Executive Officer of Sibanye-Stillwater

The Group made significant progress delivering on all near-term strategic imperatives during the course of 2019, significantly de-risking
the business and in the process establishing a solid base for the delivery of further value to stakeholders.
Most pleasing has been continued progress and improvement in safe production, with Group safety for 2019 improving from the
fatalities which significantly affected our SA gold operations in H1 2018. On 27 January 2020, the SA gold operations achieved a

significant milestone of 10 million fatality free shifts over a 17-month period. This is an unparalleled achievement in the history of our

gold operations and in underground deep level mining. Milestones like these illustrate what can be achieved when all stakeholders
work together and contribute constructively, and our appreciation goes to our employees, their union representatives and the

Department of Minerals Resources and Energy for their invaluable assistance and input.
The consistent operational delivery from the SA PGM operations continued, despite the integration and restructuring of the Marikana

operation, the PGM wage negotiations, and the impact of load shedding towards the end of the year. 4E PGM production of 1,608,332
4Eoz (including the Marikana operation for seven months since acquisition), was 37% higher year-on-year, with 4E PGM production
(excluding the Marikana operation) of 1,100,734 4Eoz above the upper end of annual guidance.
The US PGM operations reported 2E PGM production of 593,974 2Eoz which was in line with the revised annual guidance. The
operational issues which affected the East Boulder mine and Stillwater West mine during 2019 were successfully addressed during the
remaining months in 2019, with both operations achieving normalised production run rates by year-end.
The SA gold operations produced 29,009kg (932,659oz) (Including DRDGOLD) for 2019 and 23,427kg (753,194oz) (excluding DRDGOLD)
for 2019. Normalised production run rates for the reduced operating footprint at the SA gold operations were achieved during Q4 2019,
following the conclusion of the AMCU strike in April 2019 and a steady production build-up.

The strike at the SA Gold operations which was initiated by the Association of Mineworkers and Construction Union (AMCU) in
November 2018, lasted approximately five months before it was resolved in April 2019. The agreed settlement as in Sibanye-Stillwater’s

favour, with AMCU accepting the same three-year agreement, on the same terms that had been agreed with the other unions six-
months earlier. While the financial impact of the AMCU strike was significant, we have consistently maintained that absorbing the strike
impact was necessary for us to re-establish respectful and more co-operative relations with AMCU.

The significant increase in the profitability of the SA PGM operations for H2 2019 is further testament to the appropriateness of the

decisions and position adopted during the SA gold operations strike. The current three-year wage agreements have secured a period

of stability at both the SA gold and the SA PGM operations, which will facilitate the optimisation of the operations and enable
significant generation of value from these operations for the benefit of all stakeholders.
The financial results for 2019 were significantly improved relative to 2018, despite strike related losses incurred during H1 2019 at the SA

gold operations. Group revenue increased by 44% year-on-year to R72,925 million (US$5,043 million), driven by rising precious metals
prices and an improving or steady operating performance across the Group during 2019, as well as the inclusion of the Marikana
operations from June 2019 boosting Group adjusted EBITDA for 2019 by 79% year-on-year to R14,956 million (US$1,034 million).

Group profit of R433 million (US$30 million) for 2019, improved significantly from a loss of R2,521 million (US$191 million) for 2018, with H2
2019 profit of R604 million (US$42 million) offsetting the H1 2019 loss of R171 million (US$12 million). Group profit was affected by various
non-recurring and/or non-cash items, the most prominent for 2019 being a R1,103 million (US$77 million) gain on acquisition of Lonmin
Plc (Marikana operations), a R1,567 million (US$110 million) deferred tax credit recognised by the US PGM operations and recognition
of a R3,912 million (US$271 million) fair value loss on the US$ convertible bonds, following the 258% increase in the Sibanye-Stillwater
share price during 2019, resulting in the bonds trading well above par value.

As a result of the strong operating and financial performance achieved in H2 2019, progress on deleveraging the balance sheet has
accelerated. Proforma net debt:adjusted EBITDA (ND:adjusted EBITDA) reduced from 2.5x at 30 June 2019 to 1.25x at year end, well
below existing debt covenants and our 1.8x target for the 2019 year-end. Group leverage should continue to decline naturally over
the next two quarters as the adjusted EBITDA from Q1 and Q2 2019, which were negatively impacted by the five-month strike at the

SA gold operations and the change from a Purchase of Concentrate (PoC) to toll processing arrangement with Anglo American
Platinum, fall out of the rolling total. If the run rate that has been achieved over H2 2019 is sustained, our net debt to EBITDA ratio should

fall below 1.0x by mid-year. This is without considering the effects of reductions in net debt that should be achieved through application
of free cash generated to repaying debt.

We are now highly confident about sustained deleveraging of the company’s balance sheet. Moreover, with the balance sheet
further de-risked, we are well positioned to resume cash dividends during 2020 based on the current deleveraging trajectory and
subject to current commodity prices.

KEY FINANCIAL RESULTS

US dollar

SA rand

Year ended

Six months ended

Year ended

Unaudited

Dec 2018

Unaudited

Dec 2019

Unaudited

Dec 2018

Unaudited

Jun 2019

Unaudited

Dec 2019

Unaudited

Dec 2019

Reviewed

Revised

Jun 2019

Unaudited

Dec 2018

Reviewed

Dec 2019

Audited

Dec 2018

3,826.0

5,043.3

1,883.7

1,657.4

3,385.9

Revenue (million)

49,390.5 23,534.9 26,746.4 72,925.4 50,656.4

(8)

(9)

(1)

Basic earnings per share (cents)

(11)

(114)

(110)

(3)

(4)

Headline earnings per share (cents)

(54)

(5)

(40)

(1)

No ordinary cash dividend declared for 2019 (2018: nil)
This short-form announcement is the responsibility of the board of directors of the Company (Board).
The information disclosed is only a summary and does not contain full or complete details.

Any investment decisions by investors and/orshareholders should be based on a consideration of the full announcement as a whole
and shareholders are encouraged to review the full announcement (results booklet), which is available for viewing on the Company’s
website at https://www.sibanyestillwater.com/news-investors/reports/quarterly/h22019-booklet to above and via the JSE link.
The full results announcement is available for inspection at the Company’s registered office and the office of our sponsors during
normal business hours and is available at no charge. Alternatively, copies of the full announcement may be requested from the
Company’s Investor relations department. The financial results as contained in the condensed consolidated provisional financial
statements for the year ended 31 December 2019 have been reviewed by EY, who expressed an unmodified review conclusion thereon.

The JSE link is as follows:

https://senspdf.jse.co.za/documents/2020/jse/isse/sswe/Sibanye.pdf

Contact:

Email: ir@sibanyestillwater.com

James Wellsted

Head of Investor Relations

+27(0)83 453 4014

Sponsor: J.P. Morgan Equities South Africa Proprietary Limited

FORWARD LOOKING STATEMENTS

This announcement contains 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 Gold Limited’s (trading as Sibanye-Stillwater)(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.

All statements other than statements of historical facts included in this announcement may be forward-looking statements. Forward-looking statements also often

use words such as “will”, “forecast”, “potential”, “estimate”, “expect” 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 and in the Group’s Annual Integrated Report and Annual Financial Report, published on 29 March 2019, and the Group’s Annual Report on Form 20-F
filed by Sibanye-Stillwater with the Securities and Exchange Commission on 9 April 2019 (SEC File no. 001-35785) and the Form F-4 filed by Sibanye Stillwater

Limited with the Securities and Exchange Commission on 4 October 2019 (/SEC File No. 333-234096) and any amendments thereto. 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 those in the forward-looking
statements include, among others, our future business prospects; financial positions; debt position and our ability to reduce debt leverage; business, political and

social conditions in the United States, the United Kingdom, South Africa, Zimbabwe and elsewhere; plans and objectives of management for future operations;
our ability to obtain the benefits of any streaming arrangements or pipeline financing; our ability to service our bond Instruments (High Yield Bonds and

Convertible Bonds); changes in assumptions underlying Sibanye-Stillwater’s estimation of its current mineral reserves and resources; the ability to achieve
anticipated efficiencies and other cost savings in connection with past, ongoing and future acquisitions, as well as at existing operations; our ability to achieve

steady state production at the Blitz project; the success of Sibanye-Stillwater’s business strategy; exploration and development activities; the ability of Sibanye-
Stillwater to comply with requirements that it operates in a sustainable manner; changes in the market price of gold, PGMs and/or uranium; the occurrence of

hazards associated with underground and surface gold, PGMs and uranium mining; the occurrence of labour disruptions and industrial action; the availability,
terms and deployment of capital or credit; changes in relevant government regulations, particularly environmental, tax, health and safety regulations and new

legislation affecting water, mining, mineral rights and business ownership, including any interpretations thereof which may be subject to dispute; the outcome
and consequence of any potential or pending litigation or regulatory proceedings or other environmental, health and safety issues; power disruptions, constraints
and cost increases; supply chain shortages and increases in the price of production inputs; fluctuations in exchange rates, currency devaluations, inflation and

other macro-economic monetary policies; the occurrence of temporary stoppages of mines for safety incidents and unplanned maintenance; the 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 management positions; failure of information technology and communications systems; the adequacy of insurance coverage; any social

unrest, sickness or natural or man-made disaster at informal settlements in the vicinity of some of Sibanye-Stillwater’s operations; and the impact of HIV,

tuberculosis and other contagious diseases. These forward-looking statements speak only as of the date of this announcement. Sibanye-Stillwater expressly
disclaims any obligation or undertaking to update or revise any forward-looking statement (except to the extent legally required).

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.

SIBANYE GOLD LIMITED

Dated: January 19, 2020

By:

/s/ Charl Keyter

Name:

Charl Keyter

Title:

Chief Financial Officer

Sibanye Gold (SBGL) 6-KCurrent report (foreign)