Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | Sibanye Gold Ltd |
Entity Central Index Key | 0001561694 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2018 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Common Stock, Shares Outstanding | 2,266,260,491 |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
CONSOLIDATED INCOME STATEMENT
CONSOLIDATED INCOME STATEMENT - ZAR (R) R in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CONSOLIDATED INCOME STATEMENT | |||
Revenue | R 50,656.4 | R 45,911.6 | R 31,240.7 |
Cost of sales | (48,129) | (42,182.4) | (24,751) |
Interest income | 482.1 | 415.5 | 331.4 |
Finance expense | (3,134.7) | (2,971.8) | (903.1) |
Share-based payments | (299.4) | (231.9) | (496.2) |
(Loss)/profit attributable to owners of Sibanye Stillwater | 1,704.1 | (1,114.4) | (1,032.8) |
Gain on foreign exchange differences | 1,169.1 | 292.4 | 219.6 |
Share of results of equity-accounted investees after tax | 344.2 | 291.6 | 13.3 |
Other income | 310.2 | 300 | 131.9 |
Other costs | (1,015.4) | (932.7) | (490.6) |
Gain on disposal of property, plant and equipment | 60.2 | 40.7 | 95.4 |
Impairments | (3,041.4) | (4,411) | (1,381.1) |
Gain on derecognition of borrowings and derivative instrument | 230 | ||
Occupational healthcare expense | (15.4) | (1,106.9) | |
Restructuring costs | (142.8) | (729.8) | (187.7) |
Transaction costs | (402.5) | (552.1) | (157) |
Gain on acquisition | 2,178.6 | ||
(Loss)/profit before royalties and tax | (1,224.3) | (6,981.2) | 4,811.4 |
Royalties | (212.6) | (398.5) | (566.6) |
(Loss)/profit before tax | (1,436.9) | (7,379.7) | 4,244.8 |
Mining and income tax | (1,083.8) | 2,946.6 | (1,202.1) |
(Loss)/profit for the year | (2,520.7) | (4,433.1) | 3,042.7 |
Attributable to: | |||
Owners of Sibanye-Stillwater | (2,499.6) | (4,437.4) | 3,473.3 |
Non-controlling interests | R (21.1) | R 4.3 | R (430.6) |
Earnings per share attributable to owners of Sibanye-Stillwater | |||
Basic earnings per share | R (1.10) | R (2.29) | R 2.25 |
Diluted earnings per share | R (1.10) | R (2.29) | R 2.25 |
CONSOLIDATED STATEMENT OF OTHER
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME - ZAR (R) R in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME | |||
(Loss) profit for the year | R (2,520.7) | R (4,433.1) | R 3,042.7 |
Other Comprehensive Income - Items that may be reclassified to profit or loss | |||
Other comprehensive income, net of tax | 1,764.1 | (627.2) | (131.4) |
Foreign currency translation | 1,719.1 | (632.4) | (131.4) |
Mark-to-market valuation | 45 | 5.2 | |
Total comprehensive income | (756.6) | (5,060.3) | 2,911.3 |
Attributable to: | |||
Owners of Sibanye Stillwater | (733.1) | (5,064.6) | 3,341.9 |
Non-controlling interests | R (23.5) | R 4.3 | R (430.6) |
CONSOLIDATED STATEMENT OF FINAN
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - ZAR (R) R in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | |||
Non-current assets | R 69,727.7 | R 64,067.3 | R 34,018.1 |
Property, plant and equipment | 54,558.2 | 51,444.6 | 27,240.7 |
Goodwill | 6,889.6 | 6,396 | 936 |
Equity-accounted investments | 3,733.9 | 2,244.1 | 2,157.4 |
Other investments | 156 | ||
Environmental rehabilitation obligation funds | 3,998.7 | 3,492.4 | 3,100.5 |
Other receivables | 314.4 | 284 | 355.3 |
Deferred tax assets | 76.9 | 206.2 | 228.2 |
Current assets | 15,195.3 | 12,004.5 | 7,703.2 |
Inventories | 5,294.8 | 3,526.5 | 676.8 |
Trade and other receivables | 6,833 | 6,197.6 | 5,747.9 |
Other receivables, current | 35.2 | 35.2 | 310.6 |
Tax receivable | 483.2 | 182.8 | |
Cash and cash equivalents | 2,549.1 | 2,062.4 | 967.9 |
Total assets | 84,923 | 76,071.8 | 41,721.3 |
Equity and liabilities | |||
Equity attributable to owners of Sibanye Stillwater | 23,788.4 | 23,978.4 | 16,451.4 |
Stated share capital | 34,667 | 34,667 | 21,734.6 |
Other reserves | 4,617.2 | 2,569 | 2,978.8 |
Accumulated loss | (15,495.8) | (13,257.6) | (8,262) |
Non-controlling interests | 936 | 19.8 | 17.7 |
Total equity | 24,724.4 | 23,998.2 | 16,469.1 |
Non-current liabilities | 45,566 | 43,635.8 | 18,995.6 |
Borrowings, non-current | 18,316.5 | 23,992 | 8,221.5 |
Derivative financial instrument | 408.9 | 1,093.5 | |
Environmental rehabilitation obligation and other provisions | 6,294.2 | 4,678.7 | 3,982.2 |
Post-retirement healthcare obligation | 5.6 | 11.3 | 16.3 |
Occupational healthcare obligation | 1,164.2 | 1,152.5 | |
Share-based payment obligations, non-current | 168.9 | 422.2 | 246.5 |
Other payables | 2,529.2 | 3,760.4 | 1,613.7 |
Deferred revenue, noncurrent | 6,525.3 | ||
Deferred tax liabilities | 10,153.2 | 8,525.2 | 4,915.4 |
Total current liabilities | 14,632.6 | 8,437.8 | 6,256.6 |
Borrowings, current | 6,188.2 | 1,657.5 | 752.3 |
Occupational healthcare obligation, current | 109.9 | 0.8 | |
Share-based payment obligations, current | 56.8 | 12.3 | 235.2 |
Trade and other payables | 7,856.3 | 6,690.4 | 5,180.5 |
Other payables, current | 303.3 | 41.9 | |
Deferred revenue, current | 30.1 | ||
Tax and royalties payable | 88 | 34.9 | 88.6 |
Total equity and liabilities | R 84,923 | R 76,071.8 | R 41,721.3 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - ZAR (R) R in Millions | Stated share capital | Share-based payment reserve | Mark to market reserve | Foreign currency translation reserve | Accumulated loss | Equity attributable to owners of Sibanye Stillwater | Non-controlling interests member | Total |
Balance at beginning of period at Dec. 31, 2015 | R 21,734.6 | R 2,938.2 | R (9,797.8) | R 14,875 | R 109.8 | R 14,984.8 | ||
Comprehensive income | R (131.4) | 3,473.3 | 3,341.9 | (430.6) | 2,911.3 | |||
(Loss) profit for the year | 3,473.3 | 3,473.3 | (430.6) | 3,042.7 | ||||
Other comprehensive income | (131.4) | (131.4) | (131.4) | |||||
Share-based payments | 172 | 172 | 172 | |||||
Dividends paid | (1,610.6) | (1,610.6) | (1.3) | (1,611.9) | ||||
Acquisition of subsidiary with non-controlling interests | 12.9 | 12.9 | ||||||
Transaction with non-controlling interests | (326.9) | (326.9) | 326.9 | |||||
Balance at end of period at Dec. 31, 2016 | 21,734.6 | 3,110.2 | (131.4) | (8,262) | 16,451.4 | 17.7 | 16,469.1 | |
Comprehensive income | R 5.2 | (632.4) | (4,437.4) | (5,064.6) | 4.3 | (5,060.3) | ||
(Loss) profit for the year | (4,437.4) | (4,437.4) | 4.3 | (4,433.1) | ||||
Other comprehensive income | 5.2 | (632.4) | (627.2) | (627.2) | ||||
Share-based payments | 217.4 | 217.4 | 217.4 | |||||
Dividends paid | (558.2) | (558.2) | (2.2) | (560.4) | ||||
Rights issue | 12,932.4 | 12,932.4 | 12,932.4 | |||||
Balance at end of period at Dec. 31, 2017 | 34,667 | 3,327.6 | 5.2 | (763.8) | (13,257.6) | 23,978.4 | 19.8 | 23,998.2 |
Comprehensive income | 47.4 | 1,719.1 | (2,499.6) | (733.1) | (23.5) | (756.6) | ||
(Loss) profit for the year | (2,499.6) | (2,499.6) | (21.1) | (2,520.7) | ||||
Other comprehensive income | 47.4 | 1,719.1 | 1,766.5 | (2.4) | 1,764.1 | |||
Share-based payments | 281.7 | 281.7 | 281.7 | |||||
Dividends paid | (0.6) | (0.6) | ||||||
Acquisition of subsidiary with non-controlling interests | 940.3 | 940.3 | ||||||
Increase (decrease) through changes in ownership interests in subsidiaries that do not result in loss of control, equity | 261.4 | 261.4 | 261.4 | |||||
Balance at end of period at Dec. 31, 2018 | R 34,667 | R 3,609.3 | R 52.6 | R 955.3 | R (15,495.8) | R 23,788.4 | R 936 | R 24,724.4 |
CONSOLIDATED STATEMENT OF CASHF
CONSOLIDATED STATEMENT OF CASHFLOWS R in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018ZAR (R) | Dec. 31, 2017ZAR (R) | Dec. 31, 2016ZAR (R) | |
Cash flows from operating activities | |||
Cash generated by operations | R 8,709 | R 7,097.9 | R 9,836.3 |
Deferred revenue advance received | 6,555.4 | ||
Post-retirement health care payments | (6.6) | (6.4) | (1.2) |
Cash-settled share-based payments paid | (21.7) | (433.6) | (1,518.6) |
Change in working capital | (1,070) | (522.3) | (237.6) |
Total cash generated by operations | 14,166.1 | 6,135.6 | 8,078.9 |
Interest received | 194.7 | 118.7 | 112.2 |
Interest paid | (1,620.8) | (2,053.9) | (441.1) |
Royalties and tax paid | (542.2) | (899.3) | (1,732.6) |
Dividends paid | (0.6) | (560.4) | (1,611.9) |
Net cash from operating activities | 12,197.2 | 2,740.7 | 4,405.5 |
Cash flow from investing activities | |||
Additions to property, plant and equipment | (7,080.7) | (6,098.8) | (4,151.1) |
Proceeds on disposal of property, plant and equipment | 81.9 | 71.3 | 99.4 |
Acquisition of subsidiaries | (27,386.4) | (5,801.5) | |
Cash acquired on acquisition of subsidiaries | 282.8 | 1,792.2 | 494.2 |
Proceeds on loss of control of subsidiaries | 256.1 | ||
Payment of deferred payment related to acquisition | (38.6) | ||
Payments to dissenting shareholders | (1,375.8) | ||
Dividends received | 125.2 | ||
Preference shares redeemed by equity-accounted investee | 102.8 | ||
Loan advanced to equity-accounted investee | (3.1) | (13.5) | (10.1) |
Contributions to environmental rehabilitation funds | (63) | (114.5) | (74.7) |
Proceeds on disposal of marketable securities investments | 1.2 | 3,605.3 | |
Payment of environmental rehabilitation obligation | (32.3) | ||
Net cash used in investing activities | (7,743.5) | (28,144.4) | (9,443.8) |
Cash flow from financing activities | |||
Loans raised | 17,130.2 | 69,593.8 | 17,280.5 |
Loans repaid | (21,231.5) | (55,719.5) | (11,834.7) |
Proceeds from shares issued | 13,438.5 | ||
Transaction costs paid on rights issue shares issued | (506.1) | ||
Net cash from /(used in) financing activities | (4,101.3) | 26,806.7 | 5,445.8 |
Net increase/(decrease) in cash and cash equivalents | 352.4 | 1,403 | 407.5 |
Effect of exchange rate fluctuations on cash held | 134.3 | (308.5) | (157) |
Cash and cash equivalents at beginning of year | 2,062.4 | 967.9 | 717.4 |
Cash and cash equivalents at end of year | R 2,549.1 | R 2,062.4 | R 967.9 |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
ACCOUNTING POLICY | |
ACCOUNTING POLICIES | 1. Accounting The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. Where an accounting policy is specific to a note, the policy is described in the note which it relates to. These policies have been consistently applied to all the periods presented except for the adoption of IFRS 15 Revenue from Contracts with Customers (IFRS 15) and IFRS 9 Financial Instruments (IFRS 9). These two standards had no significant impact on the Group’s measurement and recognition principles (refer to note 1.2). 1.1 Reporting entity Sibanye Gold Limited, trading as Sibanye-Stillwater (Sibanye-Stillwater or the Group), an independent, global, precious metals mining company, produces a mix of metals that includes gold and platinum group metals (PGM). Domiciled in South Africa, Sibanye-Stillwater currently owns and operates a portfolio of high-quality operations and projects, which are grouped into two regions: the Southern Africa (SA) region and the United States (US) region. The SA region houses the gold and PGM operations and projects located in South Africa and Zimbabwe. The underground and surface gold mining operations in South Africa are the Driefontein and Kloof operations in the West Witwatersrand (West Wits) region of Gauteng, and the Beatrix operation in the southern Free State. Sibanye-Stillwater also owns and manages significant gold extraction and processing facilities where ore is treated and beneficiated to produce gold doré. In addition, several organic projects currently underway are aimed at sustaining these gold mining operations into the long term. The PGM assets in the SA region are Kroondal (50%), the Rustenburg operation and the tailings retreatment entity, Platinum Mile (91.7%) in North West Province, and Mimosa (50%) in Zimbabwe. The US region houses the PGM operations and projects located in the US and Canada. These include the East Boulder and Stillwater mining operations and the Blitz project in Montana, in the US, and an exploration-stage project, Marathon, a PGM-copper porphyry in Ontario, Canada. The assets in this region also include the Metallurgical complex in Columbus, Montana. This complex houses the smelter, base metal refinery and an analytical laboratory which produces a PGM-rich filter cake that is further refined by a third-party precious metal refinery. These processing and metallurgical facilities are also used to process recycled material such as spent autocatalytic convertors and petroleum refinery catalysts. 1.2 Basis of preparation The consolidated financial statements for the year ended 31 December 2018 have been prepared on a going concern basis in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board, the South African Institute of Chartered Accountants Financial Reporting Guides issued by the Accounting Practices Committee and Financial Reporting Pronouncements issued by the Financial Reporting Standards Council, as well as the requirements of the South African Companies Act and JSE Listings Requirements. The consolidated financial statements have been prepared under the historical cost convention, except for financial assets and financial liabilities (including derivative instruments) which are measured at fair value through profit or loss or other comprehensive income. Standards, interpretations and amendments to published standards effective for the year ended 31 December 2018 During the financial year, the following new and revised accounting standards and amendments to standards became effective and had no significant impact on the Group’s financial statements: Pronouncement Details of amendments Effective date 1 IFRS 2 Share-based payment (Amendment) Classification and Measurement of Share-based Payment Transactions: A collection of three distinct narrow-scope amendments dealing with classification and measurement of share-based payments. The amendments address: the effects of vesting conditions on the measurement of a cash-settled share-based payment; the accounting requirements for a modification to the terms and conditions of a share-based payment that changes the classification of the transaction from cash-settled to equity-settled; and the classification of share-based payment transactions with net settlement features. 1 January 2018 IAS 28 Investments in Associates and Joint Ventures (Amendment) Annual Improvements 2014-2016 Cycle Clarification that a venture capital organisation, or a mutual fund, unit trust and similar entities may elect, at initial recognition, to measure investments in an associate or joint venture at fair value through profit or loss separately for each associate or joint venture. 1 January 2018 Pronouncement Details of amendments Effective date 1 IFRIC 22 Foreign Currency Transactions and Advance Consideration This interpretation addresses the exchange rate to use in transactions that involve advance consideration paid or received in a foreign currency. 1 January 2018 1 Effective date refers to annual period beginning on or after said date During the financial year, the following new accounting standards became effective and had an impact on the financial statements: Pronouncement Details of amendments Effective date 1 IFRS 9 Financial Instruments (New standard) IFRS 9 arises from a three-part project to replace IAS 39 Financial Instruments: Recognition and Measurement . IFRS 9 addresses the classification, measurement and derecognition of financial assets and financial liabilities, introduces new rules for hedge accounting, and a new impairment model for financial assets. On 1 January 2018, the Group adopted IFRS 9, which replaces the provisions of IAS 39 that relate to the recognition, classification and measurement of financial assets and financial liabilities, derecognition of financial instruments, impairment of financial assets and hedge accounting. On adoption, the mark-to-market valuation recognised in the consolidated statement of other comprehensive income remains recognised in the consolidated statement of other comprehensive income, but will not be reclassified to profit or loss in future. The Group designated its equity securities as financial assets at fair value through other comprehensive income (OCI), which will be recorded initially at fair value. Subsequent changes in fair value will be recognised in OCI only and will not be reclassified to profit or loss on derecognition. As a result of this change, there was no impact to the Group’s financial statements. The adoption of the new “expected credit loss” impairment model under IFRS 9, as opposed to an incurred credit loss model under IAS 39, had a negligible impact on the carrying amounts of the Group’s financial assets given the Group transacts exclusively with a limited number of large international institutions and other organisations with strong credit ratings and the negligible historical level of customer default. The Group does not apply hedge accounting and the new rules for hedge accounting also have no impact. The impacts have been applied to the disclosure of the Group’s financial instruments. 1 January 2018 IFRS 15 Revenue from Contracts with Customers (New standard) IFRS 15 supersedes the previous revenue recognition guidance including IAS 18 Revenue , IAS 11 Construction Contracts and the related interpretation. IFRS 15 establishes a single comprehensive five-step model to account for revenue arising from contracts with customers and is based on the core principle that revenue is recognised when control of a good or service transfers to a customer. On 1 January 2018, the Group adopted IFRS 15, which requires that revenue from contracts with customers be recognised upon the transfer of control over goods or services to the customer. The recognition of revenue upon transfer of control to the customer is consistent with the revenue recognition policy as set out in the consolidated financial statements for the year ended 31 December 2017, as the condition is generally satisfied when title transfers to the customer. As such, on adoption, this requirement under IFRS 15 resulted in no impact to the Group’s financial statements as the timing of revenue recognition on sales is unchanged. 1 January 2018 1 Effective date refers to annual period beginning on or after said date Standards, interpretations and amendments to published standards which are not yet effective Certain new standards, amendments and interpretations to existing standards have been published that apply to the Group’s accounting periods beginning on or after 1 January 2019 but have not been early adopted by the Group. The standards, amendments and interpretations that are applicable to the Group are: Pronouncement Details of amendments and estimated impact Effective date 1 IFRS 3 Business Combinations (Amendment) 2 Annual Improvements 2015-2017 Cycle Clarification that when an entity obtains control of a business that is a joint operation, it is required to remeasure previously held interests in that business. 1 January 2019 IFRS 9 Financial instruments (Amendment) 2 Prepayment Features with Negative Compensation The narrow-scope amendment allows companies to measure particular prepayable financial assets with negative compensation at amortised cost or at fair value through other comprehensive income if a specified condition is met. 1 January 2019 IFRS 11 Disclosure of Interest in Other Entities (Amendment) 2 Annual Improvements 2015-2017 Cycle Clarification that when an entity obtains joint control of a business that is a joint operation, the entity does not remeasure previously held interests in that business. 1 January 2019 IFRS 16 Leases (New standard) IFRS 16 replaces the previous lease standard IAS 17 Leases and related interpretations. IFRS 16 has one model for lessees which will result in almost all leases being recognised on balance sheet as the distinction between operating and finance leases is removed. The only exceptions are short-term and low-value leases. At the commencement date of a lease, a lessee will recognise a liability to make lease payments (i.e. the lease liability) and an asset representing the right to use the underlying asset during the lease term (i.e. the right-of-use asset). Lessees also will be required to remeasure the lease liability upon the occurrence of certain events (e.g. a change in the lease term, a change in future lease payments resulting from a change in an index or rate used to determine those payments). The lessee will generally recognise the amount of the remeasurement of the lease liability as an adjustment to the right-of-use asset. The Group has developed a full implementation plan to determine the impact on the financial statements and internal controls. In 2017, the Group formed an IFRS 16 project team to begin the process of assessing the impact of the leases standard. The project team developed its project plan, established a steering committee, identified key stakeholders, completed high level education sessions and began the process to gather more information (through the use of interviews and questionnaires) with respect to the population of procurement contracts. The Group will use the modified retrospective approach of adoption resulting in no restatement of prior year comparatives. The quantitative impact of adopting IFRS 16 will be provided in the condensed consolidated interim financial statements for the six months ending 30 June 2019 as the Group is determining the incremental borrowing rate of the identified contracts. The Group has elected to apply the available exemptions as permitted by IFRS 16 to recognise a lease expense on a straight line basis for short-term leases (lease term of 12 months or less) and low value assets. The Group has also elected to apply the practical expedient for leases which term ends within 12 months of the date of initial application which will be accounted for in the same way as short-term leases. Upon the adoption of IFRS 16, the Group expects to recognise additional right of use assets and lease liabilities. The Group expects an increase in amortisation and depreciation and finance expense, a decrease in cost of sales before amortisation and depreciation, and an increase in cash flow from operating activities as these lease payments will be recognised as financing outflows in the statement of cash flows. 1 January 2019 IAS 1 Presentation of Financial Statements (Amendment) 2 The amendments clarify and align the definition of ‘material’ and provide guidance to help improve consistency in the application of that concept whenever it is used in IFRS. 1 January 2020 IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors (Amendment) 2 The amendments clarify and align the definition of ‘material’ and provide guidance to help improve consistency in the application of that concept whenever it is used in IFRS Standards. 1 January 2020 IAS 12 Income Taxes (Amendment) 2 Annual Improvements 2015-2017 Cycle Clarification that all income tax consequences of dividends should be recognised in profit or loss, regardless how the tax arises. 1 January 2019 IAS 19 Employee Benefits (Amendment) 2 Plan Amendment, Curtailment or Settlement The amendments require an entity to use the updated assumptions from a remeasurement net defined benefit liability or asset resulting from a plan amendment, curtailment or settlement to determine current service cost and net interest for the remainder of the reporting period after the change to the plan. 1 January 2019 IAS 23 Borrowing Costs (Amendment) 2 Annual Improvements 2015-2017 Cycle The amendments clarify that if any specific borrowing remains outstanding after the related asset is ready for its intended use or sale, that borrowing becomes part of the funds that an entity borrows generally when calculating the capitalisation rate on general borrowings. 1 January 2019 IAS 28 Investments in Associates and Joint Ventures (Amendment) 2 Long-term interest in Associates and Joint Ventures Clarification provided that an entity should apply IFRS 9 to long-term interests in an associate or joint venture that form part of the net investment in the associate or joint venture but to which the equity method is not applied. 1 January 2019 IFRIC 23 Uncertainty over Income Tax Treatments 2 The interpretation specifies how an entity should reflect the effects of uncertainties in accounting for income taxes. 1 January 2019 1 Effective date refers to annual period beginning on or after said date 2 No impact Significant accounting judgements and estimates The preparation of the financial statements requires the Group’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The determination of estimates requires the exercise of judgement based on various assumptions and other factors such as historical experience, current and expected economic conditions, and in some cases valuation techniques. Actual results could differ from those estimates. For significant accounting policies that are subject to significant judgement, estimates and assumptions, see the following notes to the consolidated financial statements: Significant accounting policy Note to the consolidated financial statements Revenue 3 – Revenue Royalties, mining and income tax, and deferred tax 9 – Royalties, mining and income tax, and deferred tax Property, plant and equipment 12 – Property, plant and equipment Business combinations 13 – Acquisitions Goodwill 14 – Goodwill Equity-accounted investments 15 – Equity accounted investments Other receivables and other payables 18 – Other receivables and other payables Borrowings 24 – Borrowings and derivative financial instrument Environmental rehabilitation obligation 25 – Environmental rehabilitation obligation and other provisions Occupational healthcare obligation 26 – Occupational healthcare obligation Deferred revenue 27 – Deferred revenue Contingent liabilities 33 – Contingent liabilities Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the financial period are discussed under the relevant note of the item affected. 1.3 Consolidation 1 The non-controlling interests in the statement of changes in equity relates to the attributable share of accumulated profits of DRDGOLD Limited (DRDGOLD), the Newshelf 1114 Proprietary Limited (Newshelf 1114) group, Goldfields Technical Security Management Proprietary Limited (GTSM) and Platinum Mile Resources Proprietary Limited (Platinum Mile) (refer to note 23). 2 Witwatersrand Consolidated Gold Resources Proprietary Limited (Wits Gold) has ceded and pledged its shares in K2013164354 Proprietary Limited (K2013) (a dormant entity) and K2013 has ceded and pledged it shares in Sibanye Gold Eastern Operations Proprietary Limited (SGEO) in favour of the lenders of the Burnstone Debt (refer to note 24.7). 3 Rand Uranium Proprietary Limited (Rand Uranium) and Ezulwini Mining Company Proprietary Limited (Ezulwini) together own a number of underground and surface mining operations. These operations report to the Group’s chief operating decision maker (the Executive Committee) as a separate segment, namely Cooke. 4 In terms of the Rustenburg operation Transaction, a 26% stake in Sibanye Rustenburg Platinum Mines Proprietary Limited (SRPM) was acquired through Newshelf 1335 Proprietary Limited (BBBEE SPV). The shareholders of BBBEE SPV are Rustenburg Mine Employees Trust (30.4%), Rustenburg Mine Community Development Trust (24.8%) Bakgatla-Ba-Kgafela Investment Holdings (24.8%) and Siyanda Resources Proprietary Limited (20.0%). The Rustenburg Mine Employees Trust and the Rustenburg Mine Community Development Trust are controlled and consolidated by Sibanye-Stillwater. 5 The Group has no current or contractual obligation to provide financial support to any of its structured entities. Subsidiaries Subsidiaries are all entities over which the Group exercises control. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are consolidated from the date on which control is obtained by the Group until the date on which control ceases. Although the Group owns less than half of DRDGOLD and has less than half of DRDGOLD’s voting power, management has determined that the Group controls the entity. The Group controls DRDGOLD as a result of an option to subscribe for a sufficient number of DRDGOLD ordinary shares to attain a 50.1% shareholding in DRDGOLD at a 10% discount to the 30 day volume weighted average traded price, which is considered substantive. Inter-company transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. Transactions with shareholders of Sibanye-Stillwater Transactions with owners in the capacity as equity participants are not recognised in profit or loss, but instead are recognised in equity with a corresponding change in assets or liabilities. 1.4 Foreign currencies Functional and presentation currency Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the functional currency). The consolidated financial statements are presented in South African rand, which is the Group’s presentation currency. Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities are translated into the functional currency at each reporting date . Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies, are recognised in profit or loss. Foreign operations The results and financial position of all the Group entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows: · Assets and liabilities are translated at the exchange rate ruling at the reporting date. Equity items are translated at historical rates. The income and expenses are translated at the average exchange rate for the year, unless this average was not a reasonable approximation of the rates prevailing on the transaction dates, in which case these items were translated at the rate prevailing on the date of the transaction. Exchange differences on translation are accounted for in other comprehensive income. These differences will be recognised in profit or loss upon realisation of the underlying operation. · On consolidation, exchange differences arising from the translation of the net investment in foreign operations (i.e. the reporting entity’s interest in the net assets of that operation), and of borrowings are taken to other comprehensive income. When a foreign operation is sold, exchange differences that were recorded in other comprehensive income are recognised in profit or loss as part of the gain or loss on disposal. If the Group disposes of part of its interest in a subsidiary but retains control, then the relevant proportion of the cumulative amount is reattributed to non-controlling interests. When the Group disposes of only part of an associate or joint venture while retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss. · Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and are translated at each reporting date at the closing rate. 1.5 Comparatives Where necessary comparative periods may be adjusted to conform to changes in presentation. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2018 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | 2. Segment reporting Accounting policy Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker and is based on individual mining operations. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the executive management team that makes strategic decisions. Figures in million - SA rand Group Total Southern Africa Total SA gold operations Drie-fontein Kloof Beatrix Cooke DRD-GOLD 1 Corporate 2 Total SA PGM operations Kroondal Platinum Mimosa Rusten-burg operation Corporate 2 Total US PGM operations Stillwater Group Corporate and re-conciling items 2018 Revenue 50,656.4 34,810.3 19,656.7 5,111.2 8,131.7 4,601.3 841.8 1,047.5 (76.8) 15,153.6 3,584.4 196.7 1,857.5 11,372.5 (1,857.5) 15,872.8 (26.7) Underground 38,605.7 30,202.3 16,157.2 4,782.4 6,937.9 4,467.8 45.9 - (76.8) 14,045.1 3,584.4 - 1,857.5 10,460.7 (1,857.5) 8,430.1 (26.7) Surface 4,608.0 4,608.0 3,499.5 328.8 1,193.8 133.5 795.9 1,047.5 - 1,108.5 - 196.7 - 911.8 - - - Recycling 7,442.7 - - - - - - - - - - - - - - 7,442.7 - Cost of sales, before amortisation and depreciation (41,515.2) (29,794.3) (17,698.3) (5,709.3) (6,364.8) (3,910.8) (693.4) (1,020.0) - (12,096.0) (2,739.4) (152.7) (1,235.7) (9,203.9) 1,235.7 (11,720.9) - Underground (30,248.7) (25,724.3) (14,592.9) (5,386.7) (5,352.2) (3,841.0) (13.0) - - (11,131.4) (2,739.4) - (1,235.7) (8,392.0) 1,235.7 (4,524.4) - Surface (4,070.0) (4,070.0) (3,105.4) (322.6) (1,012.6) (69.8) (680.4) (1,020.0) - (964.6) - (152.7) - (811.9) - - - Recycling (7,196.5) - - - - - - - - - - - - - - (7,196.5) - Net other cash costs (771.8) (771.8) (596.0) (50.2) (44.8) (37.2) (573.4) 8.7 100.9 (175.8) (52.7) (1.2) (6.7) (121.1) 5.9 - - Adjusted EBITDA 8,369.4 4,244.2 1,362.4 (648.3) 1,722.1 653.3 (425.0) 36.2 24.1 2,881.8 792.3 42.8 615.1 2,047.5 (615.9) 4,151.9 (26.7) Amortisation and depreciation (6,613.8) (4,379.4) (3,305.0) (1,200.9) (1,378.8) (635.3) (5.7) (57.9) (26.4) (1,074.4) (370.4) (3.0) (191.6) (697.1) 187.7 (2,234.4) - Interest income 482.1 398.9 315.4 94.3 72.0 40.0 41.7 26.1 41.3 83.5 60.3 1.3 0.1 20.2 1.6 83.2 - Finance expense (3,134.7) (1,177.3) (754.9) (234.9) (245.9) (143.6) (78.1) (33.0) (19.4) (422.4) (130.5) - (13.0) (1,890.6) 1,611.7 (1,797.1) (160.3) Share-based payments (299.4) (263.7) (263.7) (0.2) - - - (3.2) (260.3) - - - - - - (35.7) - Net other 3 3,284.0 3,215.2 2,488.9 (362.8) (110.3) (57.8) (106.2) (419.1) 3,545.1 726.3 137.6 0.7 (9.2) 4,348.0 (3,750.8) 68.8 - Non-underlying items 4 (3,311.9) (3,101.2) (3,071.5) (2,157.6) 27.2 (156.6) (50.6) (4.6) (729.3) (29.7) 0.4 - - (30.7) 0.6 (210.7) - Royalties (212.6) (212.6) (50.6) 1.4 (29.0) (18.8) (4.2) - - (162.0) (5.5) - (57.6) (156.5) 57.6 - - Current taxation (95.3) (333.6) (55.1) 63.9 (75.3) 5.5 0.8 (3.0) (47.0) (278.5) - - (103.4) (277.4) 102.3 238.3 - Deferred taxation (988.5) 807.2 999.8 922.9 313.1 127.8 - (132.0) (232.0) (192.6) (168.9) (9.2) (29.9) (15.5) 30.9 (1,795.7) - Loss for the year (2,520.7) (802.3) (2,334.3) (3,522.2) 295.1 (185.5) (627.3) (590.5) 2,296.1 1,532.0 315.3 32.6 210.5 3,347.9 (2,374.3) (1,531.4) (187.0) Attributable to: - - Owners of the parent (2,499.6) (781.2) (2,310.5) (3,522.2) 295.1 (185.5) (627.3) (565.8) 2,295.2 1,529.3 315.3 29.9 210.5 3,347.9 (2,374.3) (1,531.4) (187.0) Non-controlling interest holders (21.1) (21.1) (23.8) - - - - (24.7) 0.9 2.7 - 2.7 - - - - - Sustaining capital expenditure (1,271.2) (1,011.0) (546.6) (228.1) (220.6) (82.6) - (14.5) (0.8) (464.4) (141.4) (9.5) (170.9) (313.5) 170.9 (260.2) - Ore reserve development (3,530.4) (2,531.5) (2,053.6) (817.1) (839.6) (396.9) - - - (477.9) - - - (477.9) - (998.9) - Growth projects (2,279.2) (705.2) (647.5) (0.4) (141.8) (1.7) - (303.3) (200.3) (57.7) - (57.1) - (0.6) - (1,574.0) - Total capital expenditure (7,080.8) (4,247.7) (3,247.7) (1,045.6) (1,202.0) (481.2) (317.8) (201.1) (1,000.0) (141.4) (66.6) (170.9) (792.0) 170.9 (2,833.1) - 1 DRDGOLD’s performance is for five months ended 31 December 2018 since acquisition (refer to note 13.1). 2 Corporate and reconciling items represents the items to reconcile segment data to consolidated financial statement totals. This does not represent a separate segment as it does not generate mining revenue. 3 Net other costs consists of loss on financial instruments, gain on foreign exchange differences, change in estimate of environmental rehabilitation obligation, and right of recovery receivable and payable, and other income. Corporate and reconciling items net other costs includes the share of results equity-accounted investees after tax as detailed in profit or loss. 4 Non-underlying items consists of gain on disposal of property, plant and equipment, impairments, gain on derecognition of borrowings and derivative financial instrument, occupational healthcare expense, restructuring costs, and transaction costs as detailed in profit or loss. Figures in million - SA rand Group Total Southern Africa Total SA gold operations Driefontein Kloof Beatrix Cooke Corporate and re- conciling items 1 Total SA PGM operations Kroondal Platinum Mile Mimosa Rusten-burg operation Corporate and re- conciling items 1 Total US PGM operations Stillwater 2 2017 Revenue 45,911.6 36,750.0 23,473.6 8,076.9 8,845.1 4,875.8 1,676.5 (0.7) 13,276.4 2,861.5 194.1 1,687.7 10,220.8 (1,687.7) 9,161.6 Underground 37,790.3 33,168.0 21,143.2 7,148.1 7,985.3 4,753.1 1,257.4 (0.7) 12,024.8 2,861.5 - 1,687.7 9,163.3 (1,687.7) 4,622.3 Surface 3,582.0 3,582.0 2,330.4 928.8 859.8 122.7 419.1 - 1,251.6 - 194.1 - 1,057.5 - - Recycling 4,539.3 - - - - - - - - - - - - - 4,539.3 Cost of sales, before amortisation and depreciation (36,482.7) (29,471.0) (17,879.2) (6,203.5) (5,762.7) (3,952.5) (1,960.5) - (11,591.8) (2,395.9) (129.8) (1,200.5) (9,066.1) 1,200.5 (7,011.7) Underground (29,345.3) (26,710.5) (16,032.2) (5,488.9) (5,109.5) (3,852.1) (1,581.7) - (10,678.3) (2,395.9) - (1,200.5) (8,282.4) 1,200.5 (2,634.8) Surface (2,760.5) (2,760.5) (1,847.0) (714.6) (653.2) (100.4) (378.8) - (913.5) - (129.8) - (783.7) - - Recycling (4,376.9) - - - - - - - - - - - - - (4,376.9) Net other cash costs (383.8) (376.5) (285.9) (32.4) (37.9) (13.3) (243.4) 41.1 (90.6) (34.7) (12.6) 34.2 (41.8) (35.7) (7.3) Adjusted EBITDA 9,045.1 6,902.5 5,308.5 1,841.0 3,044.5 910.0 (527.4) 40.4 1,594.0 430.9 51.7 521.4 1,112.9 (522.9) 2,142.6 Amortisation and depreciation (5,699.7) (4,268.3) (3,507.5) (1,126.5) (1,404.5) (696.2) (256.4) (23.9) (760.8) (239.0) (2.6) (211.7) (514.7) 207.2 (1,431.4) Interest income 415.5 363.7 205.7 77.6 71.1 18.4 12.5 26.1 158.0 57.0 2.1 8.8 96.6 (6.5) 51.8 Finance expense (2,971.8) (1,517.7) (1,182.2) (220.9) (246.9) (128.4) (76.7) (509.3) (335.5) (90.7) - (10.0) (244.9) 10.1 (1,454.1) Share-based payments (231.9) (227.0) (227.0) (2.8) (1.8) (1.3) - (221.1) - - - - - - (4.9) Net other 3 (779.1) (756.0) 296.5 24.1 23.4 (34.7) (76.9) 360.6 (1,052.5) (181.7) 0.7 (11.0) (893.1) 32.6 (23.1) Non-underlying items 4 (6,759.1) (6,688.2) (6,535.8) (74.9) (50.4) (675.3) (3,664.7) (2,070.5) (152.4) (9.0) - - (134.9) (8.5) (70.9) Royalties (398.5) (398.5) (325.3) (77.8) (189.3) (44.5) (13.7) - (73.2) (5.6) - (60.4) (67.6) 60.4 - Current taxation (504.2) (405.3) (385.4) (14.8) (350.1) (12.4) - (8.1) (19.9) - (9.3) (59.3) (10.0) 58.7 (98.9) Deferred taxation 3,450.8 533.8 549.2 (12.0) 61.4 245.3 1.5 253.0 (15.4) (24.8) (4.3) (2.8) 12.7 3.8 2,917.0 Loss for the year (4,433.1) (6,461.2) (5,803.5) 412.8 957.4 (419.1) (4,601.8) (2,152.8) (657.7) (62.9) 38.3 175.0 (643.0) (165.1) 2,028.1 Attributable to: Owners of the parent (4,437.4) (6,465.5) (5,804.6) 412.8 957.4 (419.1) (4,601.8) (2,153.9) (660.9) (62.9) 35.1 175.0 (643.0) (165.1) 2,028.1 Non-controlling interest holders 4.3 4.3 1.1 - - - - 1.1 3.2 - 3.2 - - - - Sustaining capital expenditure (1,325.6) (1,098.7) (531.1) (235.0) (210.2) (63.1) (8.5) (14.3) (567.6) (190.5) (11.0) (222.5) (366.1) 222.5 (226.9) Ore reserve development (3,291.6) (2,753.0) (2,288.0) (876.1) (876.2) (482.0) (53.7) - (465.0) - - - (465.0) - (538.6) Growth projects (1,481.6) (593.3) (591.0) (44.4) (147.1) (0.5) (11.7) (387.3) (2.3) - (2.3) - - - (888.3) Total capital expenditure (6,098.8) (4,445.0) (3,410.1) (1,155.5) (1,233.5) (545.6) (73.9) (401.6) (1,034.9) (190.5) (13.3) (222.5) (831.1) 222.5 (1,653.8) 1 Corporate and reconciling items represents the items to reconcile segment data to consolidated financial statement totals. This does not represent a separate segment as it does not generate mining revenue. 2 Stillwater’s performance is for eight months ended 31 December 2017 since acquisition (refer to note 13.2). 3 Net other costs consists of loss on financial instruments, gain on foreign exchange differences, change in estimate of environmental rehabilitation obligation, and right of recovery receivable and payable, and other income. Corporate and reconciling items net other costs includes the share of results of equity-accounted investees after tax as detailed in profit or loss. 4 Non-underlying items consists of gain on disposal of property, plant and equipment, impairments, occupational healthcare expense, restructuring costs, and transaction costs as detailed in profit or loss. Figures in million - SA rand Group Total Southern Africa Total SA gold operations Driefontein Kloof Beatrix Cooke Corporate and reconciling items 1 Total SA PGM operations Kroondal 2 Platinum 2 Mimosa 2 Rusten-burg operation 3 Corporate and re- conciling items 1 2016 Revenue 31,240.7 27,501.3 9,401.1 8,890.9 5,883.9 3,362.2 (36.8) 3,739.4 1,973.3 131.1 1,223.2 1,656.0 (1,244.2) Underground 28,026.5 24,608.4 8,105.3 8,012.6 5,626.9 2,900.4 (36.8) 3,418.1 1,973.3 - 1,223.2 1,465.8 (1,244.2) Surface 3,214.2 2,892.9 1,295.8 878.3 257.0 461.8 - 321.3 - 131.1 - 190.2 - Cost of sales, before amortisation and depreciation (20,709.1) (17,346.0) (5,566.6) (5,041.0) (3,753.4) (2,985.0) - (3,363.1) (1,689.8) (90.8) (969.0) (1,582.5) 969.0 Underground (18,800.6) (15,655.1) (4,852.1) (4,609.4) (3,567.4) (2,626.2) - (3,145.5) (1,689.8) - (969.0) (1,455.7) 969.0 Surface (1,908.5) (1,690.9) (714.5) (431.6) (186.0) (358.8) - (217.6) - (90.8) - (126.8) - Net other cash costs (261.2) (235.2) (52.0) (49.2) (44.6) (87.1) (2.3) (26.0) (20.6) (0.7) 192.5 3.2 (200.4) Adjusted EBITDA 10,270.4 9,920.1 3,782.5 3,800.7 2,085.9 290.1 (39.1) 350.3 262.9 39.6 446.7 76.7 (475.6) Amortisation and depreciation (4,041.9) (3,814.7) (1,012.9) (1,190.7) (818.0) (770.8) (22.3) (227.2) (162.9) (1.2) (223.7) (58.6) 219.2 Interest income 331.4 289.6 70.8 62.3 34.1 32.5 89.9 41.8 34.6 (9.0) 0.5 8.2 7.5 Finance expense (903.1) (806.2) (143.1) (156.0) (77.6) (75.8) (353.7) (96.9) (70.6) - (11.2) (26.2) 11.1 Share-based payments (496.2) (255.9) (16.5) (13.7) (9.1) - (216.6) (240.3) - - - - (240.3) Net other 4 (897.4) (794.1) (174.1) (138.7) (125.9) (27.9) (327.5) (103.3) 19.4 0.1 (4.8) (95.4) (22.6) Non-underlying items 5 548.2 (1,548.5) (20.8) 15.7 (12.6) (1,423.9) (106.9) 2,096.7 (1.3) - - 2,105.2 (7.2) Royalties (566.6) (528.0) (204.8) (194.3) (113.2) (15.7) - (38.6) (10.2) - (82.9) (28.3) 82.8 Current taxation (1,111.8) (1,111.3) (472.3) (422.0) (223.0) (1.1) 7.1 (0.5) - - (22.8) - 22.3 Deferred taxation (90.3) (164.5) (64.3) (148.5) 19.4 35.3 (6.4) 74.2 16.9 (11.6) 13.1 68.1 (12.3) Profit for the year 3,042.7 1,186.5 1,744.5 1,614.8 760.0 (1,957.3) (975.5) 1,856.2 88.8 17.9 114.9 2,049.7 (415.1) Attributable to: Owners of the parent 3,473.3 1,619.4 1,744.5 1,614.8 760.0 (1,523.5) (976.4) 1,853.9 88.8 15.6 114.9 2,049.7 (415.1) Non-controlling interest holders (430.6) (432.9) - - - (433.8) 0.9 2.3 - 2.3 - - - Sustaining capital expenditure (1,010.5) (683.5) (218.5) (261.2) (84.8) (48.9) (70.1) (327.0) (175.8) (1.3) (159.8) (148.7) 158.6 Ore reserve development (2,394.4) (2,394.4) (779.0) (912.9) (542.9) (159.6) - - - - - - - Growth projects (746.3) (746.3) (54.1) (130.1) (0.7) (40.7) (520.7) - - - - - - Total capital expenditure (4,151.2) (3,824.2) (1,051.6) (1,304.2) (628.4) (249.2) (590.8) (327.0) (175.8) (1.3) (159.8) (148.7) 158.6 1 Corporate and reconciling items represents the items to reconcile segment data to consolidated financial statement totals. This does not represent a separate segment as it does not generate mining revenue. 2 The performance of Kroondal, Platinum Mile, and Mimosa is for the nine months ended 31 December 2016 since acquisition. The Mimosa segment information reflects the financial information provided to the chief operating decision maker. In the consolidated financial statements this operating segment is accounted for using the equity method which differs from the measures used by the chief operating decision maker. 3 Rustenburg operation’s performance is for two months ended 31 December 2016 since acquisition. 4 Net other consists of loss on financial instruments, gain on foreign exchange differences, change in estimate of environmental rehabilitation obligation, and right of recovery receivable and payable, and other income . Corporate and reconciling net other costs includes the share of results of equity-accounted investees after tax as detailed in profit or loss. 5 Non-underlying items consists of gain on disposal of property, plant and equipment, impairments, restructuring costs, transaction costs, and gain on acquisition as detailed in profit or loss. . |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2018 | |
REVENUE. | |
REVENUE | 3. Revenue Significant accounting judgements and estimates Revenue from PGM mining activities The determination of PGM concentrate sales revenue from the time of initial recognition of the sale on a provisional basis through to final pricing requires management to continuously re-estimate the fair value of the price adjustment feature. Management determines this with reference to estimated forward prices using consensus forecasts. Accounting policy Revenue from mining activities Revenue is recognised to the extent that it is probable that economic benefits will flow to the Group and the amount of revenue can be reliably measured. Revenue from gold sales is measured and recognised based on the consideration specified in a contract with a customer. The Group recognises revenue from gold sales when it transfers control of the gold to the customer. These criteria are typically met when the gold is delivered to the refinery. The price of gold is determined by market forces. Revenue from PGM concentrate and metal sales is recognised when control of the mine product is passed to the buyer pursuant to a sales contract. The sales price is determined on a provisional basis at the date of delivery. Adjustments to the sale price occur based on movements in the metal market price, metal content quantities and penalties, which represent variable transaction price components, up to the date of final pricing. Final pricing is based on the monthly average market price in the month of settlement. The period between provisional invoicing and final pricing is typically between two and four months. Revenue on provisionally priced sales is initially recorded at the estimated fair value of the consideration receivable. The revenue adjustment mechanism embedded within provisionally priced sales arrangements has the characteristics of a commodity derivative. Accordingly, the fair value of the final sales price adjustment is re-estimated continuously and changes in fair value recognised as an adjustment to revenue in profit or loss and trade receivables in the statement of financial position. In all cases, fair value is determined with reference to estimated forward prices using consensus forecasts. Revenue from PGM recycling consists of the sales of recycled palladium, platinum and rhodium derived from spent catalytic material. Revenue from PGM recycling revenue also includes revenue from toll processing, which is recognised at the time the contained metals are returned to the supplier at a third party refinery. Streaming revenue In 2018, Wheaton Precious Metals International Limited (Wheaton International) and Sibanye-Stillwater entered into a streaming transaction. 100% of refined mined gold and 4.5% of refined mined palladium from the Stillwater operations will be delivered to Wheaton International over the life of mine of the US PGM operations. Each ounce is identified as a separate performance obligation. In exchange for this, Wheaton International paid Sibanye-Stillwater R6,555.4 million (US$500.0 million) on 25 July 2018. In addition to the advance payment, Wheaton International currently pays Sibanye-Stillwater 18% cash based on the value of gold and palladium deliveries each month (refer to note 27 for additional detail of the monthly cash percentage). The contract will be settled by Sibanye-Stillwater delivering metal credits to Wheaton International representing underlying refined, mined gold and palladium. The transaction price, being the advance payment and the cash payment to be received, is recognised as revenue each month when the metal credit is allocated to the appropriate Wheaton International account. It is from this date that Wheaton International has effectively accepted the metal, has physical control of the metal and has the risk and reward of the metal (i.e. control has transferred). Revenue will be recognised over the life of mine of the US PGM operations. To the extent that the life of mine changes or other key inputs are changed (refer to the significant accounting judgements and estimates section above), these changes are recognised prospectively as a cumulative catch-up in revenue in the year that the life of mine is changed. The sources of revenue are: Figures in million - SA rand Gold mining activities 19,656.7 23,473.6 27,501.3 PGM mining activities 23,355.4 17,898.7 3,739.4 Recycling activities 7,442.7 4,539.3 - Stream 201.6 - - Total revenue from contracts with customers 50,656.4 45,911.6 31,240.7 The primary geographical markets are: Figures in million - SA rand Southern Africa 34,810.3 36,750.0 31,240.7 United States 15,846.1 9,161.6 - Total revenue from contracts with customers 50,656.4 45,911.6 31,240.7 Concentration of customers SA gold SA PGM US PGM Market risk Foreign currency sensitivity The SA region’s revenue is sensitive to changes in the exchange rate. Stillwater’s revenue (and expenses) are translated from its functional currency (US dollars) to the Group’s presentation currency (SA rand) and, therefore, the Group’s “presentation currency” earnings are sensitive to changes in the exchange rate. A one percentage point depreciation in the SA rand average exchange rate for the year ended 31 December 2018 of R13.24/US$ would have increased adjusted EBITDA by approximately R41.5 million. A one percentage point appreciation in the SA rand average exchange rate for the year ended 31 December 2018 of R13.24/US$ would have decreased adjusted EBITDA by approximately R41.5 million. |
COST OF SALES
COST OF SALES | 12 Months Ended |
Dec. 31, 2018 | |
COST OF SALES. | |
COST OF SALES | 4. Cost of sales Accounting policy The following accounting policies relate to some costs that are included in cost of sales: Short-term employee benefits Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be reliably estimated. Pension and provident funds The Group operates a defined contribution retirement plan and contributes to a number of industry-based defined contribution retirement plans. The retirement plans are funded by payments from employees and Group companies. Contributions to defined contribution funds are expensed as incurred. Figures in million - SA rand Notes Salaries and wages (15,710.3) (15,323.0) (9,276.1) Consumable stores (9,327.9) (8,789.4) (5,243.2) Utilities (5,049.2) (4,930.1) (3,709.0) Mine contracts (3,197.6) (2,956.9) (2,105.3) Recycling (7,196.5) (4,376.9) - Other (4,564.0) (3,398.0) (2,769.9) Ore reserve development costs capitalised 3,530.3 3,291.6 2,394.4 Cost of sales, before amortisation and depreciation (41,515.2) (36,482.7) (20,709.1) Amortisation and depreciation (6,613.8) (5,699.7) (4,041.9) Total cost of sales (48,129.0) (42,182.4) (24,751.0) The SA region employees are members of various defined contribution retirement plans. The cost of providing retirement benefits for the year amounted to R919.1 million (2017: R959.9 million and 2016: R626.0 million). |
FINANCE EXPENSE
FINANCE EXPENSE | 12 Months Ended |
Dec. 31, 2018 | |
FINANCE EXPENSE | |
FINANCE EXPENSE | 5. Finance expense Accounting policy Finance expense comprises interest on borrowings, environmental rehabilitation obligation, occupational healthcare obligation and Deferred Payment and offset by borrowing costs capitalised on qualifying assets. Interest payable on borrowings is recognised in profit or loss over the term of the borrowings using the effective interest method. Cash flows from interest paid are classified under operating activities in the statement of cash flows. Figures in million - SA rand Notes Interest charge on: Borrowings - interest paid (1,572.5) (2,091.9) (427.5) Borrowings - accrued interest and unwinding of amortised cost (538.3) (251.8) (141.4) Environmental rehabilitation obligation (398.8) (357.1) (291.4) Occupational healthcare obligation (105.4) (46.4) - Deferred Payment (related to the Rustenburg operation acquisition) (200.4) (148.2) (24.1) Dissenting shareholders (68.1) (62.9) - Deferred revenue 1 (160.3) - - Other (90.9) (13.5) (18.7) Total finance expense (3,134.7) (2,971.8) (903.1) 1 For the year ended 31 December 2018, interest expense includes approximately R160.3 million of non-cash interest expense relating to the gold and palladium streaming arrangement with Wheaton International. Although there is no cash financing cost related to this arrangement, IFRS 15 requires the Group to recognise a notional financing charge due to the significant time delay between receiving the upfront streaming payment and satisfying the related metal credit deliveries. A discount rate of 5.4% was used in determining the finance costs to be recognised as part of the steaming transaction entered into on 16 July 2018. |
SHARE-BASED PAYMENTS
SHARE-BASED PAYMENTS | 12 Months Ended |
Dec. 31, 2018 | |
SHARE-BASED PAYMENTS | |
SHARE-BASED PAYMENTS | 6. Share-based payments Accounting policy The Group operates an equity-settled compensation plan in which certain employees of the Group participate. The fair value of the equity-settled instruments is measured by reference to the fair value of the equity instrument granted. Fair value is based on market prices of the equity-settled instruments granted, if available, taking into account the terms and conditions upon which those equity-settled instruments were granted. Fair value of equity-settled instruments granted is estimated using appropriate valuation models and appropriate assumptions at the grant date. Non-market vesting conditions (service period prior to vesting) are not taken into account when estimating the fair value of the equity-settled instruments at grant date. Market conditions are taken into account in determining the fair value at grant date. The grant date fair value of the equity-settled instruments is recognised as an employee benefit expense over the vesting period based on the Group’s estimate of the number of instruments that will eventually vest, with a corresponding increase in the share-based payment reserve. Vesting assumptions for non-market conditions are reviewed at each reporting date to ensure they reflect current expectations. The Group also operates a cash-settled compensation plan in which certain employees of the Group participate. In terms of the Rustenburg operation acquisition, the Group issued cash-settled instruments to black economic empowerment (BEE) shareholders. The grant date fair value of the cash-settled instruments is equal to the value of the equity-settled instrument granted on the same grant date. The grant date fair value of the cash-settled instruments is recognised as an employee benefit expense or share-based payment on the BEE transaction over the vesting period based on the Group’s estimate of the number of instruments that will eventually vest, with a corresponding increase in the share-based payment obligation. At each reporting date the obligation is remeasured to the fair value of the instrument, to reflect the potential outflow of cash resources to settle the liability, with a corresponding adjustment to gain or loss on financial instrument in profit or loss. Vesting assumptions for non-market conditions are reviewed at each reporting date to ensure they reflect current expectations. Where the terms of an equity-settled or a cash-settled award are modified, the originally determined expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any modification, which increases the total fair value of the share-based payment arrangement, or is otherwise beneficial to the participant as measured at the date of the modification. Figures in million - SA rand Notes Sibanye-Stillwater 2017 Share Plan (139.2) (9.0) - Performance shares (139.2) (9.0) - Sibanye Gold Limited 2013 Share Plan (142.5) (208.4) (172.1) Performance shares (142.5) (186.3) (145.5) Bonus shares - (22.1) (26.6) Sibanye Gold Limited Phantom Share Scheme - (11.2) (83.8) Stillwater cash settled scheme (14.5) (3.3) - DRDGOLD cash settled scheme (3.2) - - Share-based payment on BEE transaction - - (240.3) Total share-based payments (299.4) (231.9) (496.2) 6.1 Sibanye-Stillwater Share Plans On 21 November 2012, the shareholders of Sibanye-Stillwater approved the adoption of the Sibanye Gold Limited 2013 Share Plan (2013 Share Plan) with effect from the date of the listing of Sibanye Gold Limited. The 2013 Share plan provided for two methods of participation, namely Forfeitable Shares and Conditional Shares. This plan sought to attract, retain, motivate and reward participating employees on a basis which seeks to align the interest of such employees with those of the shareholders. On 23 May 2017, the shareholders of Sibanye-Stillwater approved the adoption of the Sibanye-Stillwater 2017 Share Plan (2017 Share Plan) on essentially similar terms to the 2016 share plan. At the annual general meeting (AGM) on 30 May 2018, the directors of Sibanye-Stillwater were authorised to issue and allot all or any of such shares required for the 2017 Share Plan, up to a maximum not exceeding 86,748,850 shares. An individual participant may also not be awarded an aggregate of shares exceeding 8,674,885 shares. Forfeitable Shares – as part of the short-term incentive The Remuneration Committee makes an annual award of Forfeitable Shares to eligible participants as a share-based component of the short-term incentive scheme . The total annual bonus is determined by reference to the actual performance rating of the individual against predetermined targets for the preceding cycle and is comprised of cash plus the face value of restricted Forfeitable Shares in the ratio of 60:40. In other words, 40% of the annual bonus is awarded using Company shares as the “currency”, as opposed to cash, access to which is deferred. As such, the Forfeitable Shares vest in two equal tranches, nine months and 18 months after the award date. Except for the right to dispose of the shares, participants have full shareholder rights in the unvested Forfeitable Shares during the restricted period, including the right to receive dividends. The number of shares awarded is determined by dividing the face value of the Forfeitable Shares portion of the annual bonus by the volume-weighted average price (VWAP) of the Company’s shares over the three days immediately prior to the award date. Conditional Shares – for the long-term incentive The Remuneration Committee makes an annual award of Conditional Shares to eligible participants as part of its long-term incentive scheme. The number of Conditional Shares awarded to an employee is based on the employee’s annual guaranteed pay and job grade combined with a factor related to the employee’s assessed performance rating for the prior year and using the relevant share price calculation (as for the Forfeitable Shares) at the award date, with ultimate vesting of those awards subject to performance conditions as approved by the Remuneration Committee. Performance conditions applicable to Conditional Share awards from March 2016 onwards Due to concerns expressed by shareholders during 2015, a review was conducted to identify appropriate adjustments to the methodology for determining the performance conditions on Conditional Shares to be reflective of the Group’s evolving strategic market position and to enhance alignment with shareholder interests. With effect from March 2016, in respect of the award of Conditional Shares at that time and at any time thereafter (subject to any future agreed changes), an updated methodology was approved by the Remuneration Committee regarding the performance conditions applicable to the determination of the amount of Conditional Shares that will vest at the end of the vesting period (currently three years from the date of the award). Essentially the number of shares that vest depends on the extent to which Sibanye-Stillwater has performed over the intervening three year period relative to two performance criteria, Total Shareholder Return (TSR) and Return on Capital Employed (ROCE). These are among the most widely acceptable vesting performance measures suited to aligning the outcome of long-term share incentive awards with shareholders’ interests. In addition, at the sole discretion of the Remuneration Committee, up 20% of the determined number of vesting shares using the two performance criteria is liable to forfeiture in the event of any extreme environmental, social, and governance (ESG) incidents occurring during the vesting period. The number of the Conditional Shares awarded that will finally vest three years after the award will range between 0% and 100% dependent on the extent to which the two performance criteria have been met and whether the Remuneration Committee has applied its further discretion to reduce the award on the basis mentioned above. The details of these two performance conditions are provided below. Total Shareholder Return (TSR) – 70% Weighting TSR has been widely recognised as an appropriate indicator of shareholder value creation. It is used extensively internationally and increasingly in South Africa, sometimes as a single metric but most often as one of two or three weighted performance metrics. In some company share plans, an absolute target is set, but more often it is referenced in relation to the company’s share price relative to those of a group of peers or ‘comparator companies’. In Sibanye-Stillwater’s case, the TSR element is measured against a benchmark of eight peer group mining and resource companies that can be deemed to collectively represent an alternative investment portfolio for Sibanye-Stillwater’s shareholders (Peer Group). The Peer Group comprises similar market capitalisation companies that are reflective of the expected positioning of Sibanye-Stillwater over the medium term as a value driven multi-commodity resources company with a specific focus on gold and platinum. The Peer Group is set out in the table below. Peer group companies for TSR comparison AngloGold Ashanti Limited (AngloGold Ashanti) Anglo American Platinum Limited (Anglo American Platinum) Gold Fields Limited (Gold Fields) Impala Platinum Holdings Limited Northam Platinum Limited Exxaro Resources Limited Harmony Gold Mining Company Limited (Harmony) African Rainbow Minerals Limited Sibanye-Stillwater’s TSR over the vesting period is compared with the Peer Group TSR curve constructed on a market capitalisation weighted basis in the following manner. The annualised TSR over the vesting period (TSR ANN ) is determined for each of the companies in the Peer Group. The Peer Group companies are sorted from lowest to highest TSR ANN . The average market capitalisation based on daily closing price is determined for each company, and each peer company is assigned its proportion of the overall average market capitalisation of the Peer Group. The peer company TSR curve is plotted at the midpoint of each company’s percentage of Peer Group market capitalisation on a cumulative basis above the worse performing companies in the Peer Group. In the event that one or more of the peer companies become ineligible for comparison, a peer company curve based on the companies remaining in the Peer Group is utilised. The cumulative position of Sibanye-Stillwater’s TSR ANN is then mapped onto the TSR curve for the Peer Group to determine the percentile at which Sibanye-Stillwater performed over the vesting period. The performance curve governing vesting is set out in the table below with linear interpolation applied between the indicated levels. TSR element of performance conditions Percentile on peer group TSR curve % vesting 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Return On Capital Employed (ROCE) – 30% Weighting ROCE is a profitability metric that measures how efficiently a company generates profits from its capital employed. There is an increased focus on measuring the returns earned by businesses on the capital deployed by shareholders over and above the steady low risk returns typically available on financial markets. For Sibanye-Stillwater, ROCE is evaluated against the company’s cost of equity (Ke). A minimum threshold on the performance scale for ROCE is set as equalling the cost of equity, Ke, which would lead to the ROCE element contributing 0% towards the performance condition. Delivering a return that exceeds Ke by 6% or more would be regarded as a superior return representing the maximum 100% on the performance scale and full vesting in respect of the ROCE element. The performance curve governing vesting is set out in the table below, with linear interpolation between the indicated levels. ROCE element of performance condition Annual ROCE % vesting ≤K e K e + 1% K e + 2% K e + 3% K e + 4% K e + 5% K e + 6% The overall vesting is determined by applying the TSR performance condition to 70% of awarded shares element and the ROCE performance condition to 30% of awarded shares – plus any further discretionary reduction in the award based on the Remuneration Committee’s judgement regarding ESG issues mentioned above. Share awards granted, exercised and forfeited Refer to the table below for the inputs to the valuation models for share awards granted during the year. Share awards from March 2016 onwards The performance criteria used to govern the vesting of Conditional Shares are determined by the Remuneration Committee and communicated in award letters to participants. The revised performance conditions, as described above, applied with the indicated weightings, were implemented for determining the vesting of future awards effective from March 2016 onwards. As indicated, the performance criteria described above govern vesting of all share awards effective from 1 March 2016. Should any further adjustment be made these will govern future offers but will not be applied retrospectively. The inputs to the valuation model for shares awards granted during the year were as follows: Conditional Forfeitable shares shares MONTE CARLO SIMULATION Weighted average historical volatility (based on a statistical analysis of the share price on a weighted moving average basis for the expected term of the option) 3 3 3 Expected term (years) n/a n/a n/a n/a n/a n/a Expected term (months) 9 - 18 9 - 18 9 - 18 Expected dividend yield 2.14% / 2.30% Weighted average three-year risk-free interest rate (based on SA interest rates) 6.87% / 6.77% n/a n/a n/a Marketability discount n/a 1.27% / 0.50% 1.60% / 0.69% 50.81 24.07 6.86 Weighted average fair value 11.43 24.84 / 24.14 54.27 / 53.02 Share awards granted, exercised and forfeited under the 2017 Share Plan The compensation cost related to share awards not yet recognised under the plan at 31 December 2018 amounts to R213.2 million and is to be spread over three years. Conditional Forfeitable shares shares Number of instruments - 12,953,888 Outstanding at beginning of the year - - Movement during the year: 2,376,742 41,103,872 Granted during the year 5,977,437 - 10,933,066 - Supplementary awards related to the SGL 2013 Plan - - (105,449) (1,457,586) Exercised and released (2,348,445) - (250,471) (3,995,018) Forfeited (359,782) - - (69,808) Condition forfeited - 12,953,888 48,535,348 Outstanding at end of the year 3,269,210 - Share awards granted, exercised and forfeited under the 2013 Share Plan The compensation cost related to awards not yet recognised under the plan at 31 December 2018 amounts to R122.1 million and is to be spread over three years. Conditional shares Forfeitable shares Number of instruments 9,398,072 10,610,779 19,379,386 Outstanding at beginning of the year 446,469 250,827 417,266 Movement during the year: 5,103,184 12,851,131 - Granted during the year - 2,421,522 504,739 (3,832,758) (2,616,050) (2,523,162) Exercised and released (415,579) (2,126,415) (667,063) (57,719) (1,466,474) (1,514,145) Forfeited (30,890) (99,465) (4,115) - - (126,097) Condition forfeited - - - 10,610,779 19,379,386 15,215,982 Outstanding at end of the year - 446,469 250,827 Directors and prescribed officers’ equity-settled instruments The directors and prescribed officers of Sibanye-Stillwater held the following equity-settled instruments in the above 2017 Share Plan and 2013 Share Plan at 31 December 2018: Instruments granted Equity-settled instruments Instruments forfeited Number of instruments Number of instruments 1 Number of instruments 1 Average Share Number of instruments Number of instruments Executive directors Neal Froneman 3,510,669 5,318,454 1,063,629 10.72 11,404,039 - 7,765,494 Charl Keyter 1,703,868 2,672,205 484,485 10.65 5,159,132 - 3,891,588 Prescribed officers Chris Bateman 413,920 2,100,629 136,632 8.73 1,193,090 - 2,377,917 Shadwick Bessit 2 1,763,128 49,288 98,619 8.72 860,293 - 1,713,797 Hartley Dikgale 892,545 1,062,536 220,482 10.52 2,320,335 - 1,734,599 Dawie Mostert 979,139 1,328,165 268,044 10.62 2,847,401 - 2,039,260 Themba Nkosi 640,072 1,052,911 87,826 8.75 768,826 - 1,605,157 Wayne Robinson 1,081,008 1,277,048 275,245 10.72 2,950,577 - 2,082,811 Richard Stewart 1,469,189 1,521,844 562,537 9.83 5,530,242 - 2,428,496 Robert van Niekerk 1,365,383 2,147,603 391,847 10.48 4,107,696 - 3,121,139 1 Instruments granted and exercised may differ from that presented in the Integrated Annual Report 2018 as the instruments granted and exercised presented above. 2 Appointed as prescribed officer 1 December 2018. 6.2 Sibanye Gold Limited 2013 Phantom Share Scheme On 14 May 2013, Sibanye-Stillwater’s Remuneration Committee limited the issuance of share options for the 2013 allocation under the 2013 Share Plan to senior management only. Middle and certain senior management, who previously participated in the equity-settled share award scheme, participated in a cash-settled share scheme, the Sibanye Gold 2013 Phantom Share Scheme (the SGL Phantom Scheme). Notwithstanding that the SGL Phantom Scheme was not subject to compliance with the JSE Listings Requirements as it was a purely cash-settled remuneration scheme, the SGL Share Plan rules applied, in all material aspects, to the SGL Phantom Scheme, other than the issue of new shares to participants. Details of the phantom shares granted under this scheme to employees are detailed below: Conditional shares Forfeitable shares Number of instruments 20,198,875 5,301,626 - Outstanding at beginning of the year - - - Movement during the year: (14,275,138) (5,178,775) - Vested and paid - - - (622,111) (122,851) - Forfeited - - - 5,301,626 - - Outstanding at end of the year - - - The grant date fair value of the above Conditional Shares and Forfeitable Shares cash-settled instruments granted during the year were valued using the Monte Carlo Simulation model and a future trading model, respectively, as with the equity settled instruments above. As the cash-settled and equity-settled instruments were issued on the same day, the grant date fair value assumptions of the cash-settled instruments were the same as for the equity-settled instruments. The fair value of the cash-settled instruments at reporting date, used to value the share-based payment obligation was determined using the same assumptions as for the grant date valuation. However, the respective models take into account the actual share data of the peer group for the period from the grant date to the reporting date. 6.3 Share-based payment on BEE transaction In terms of the Rustenburg operation Transaction , a 26% equity stake in SRPM was acquired by the BBBEE SPV (the BBBEE Transaction) by a vendor financed facility from Sibanye Platinum Proprietary Limited (Sibanye Platinum), on the following terms: · Interest at up to 0.2% above Sibanye-Stillwater’s highest cost of debt; · Post payment of the annual Deferred Payment to Rustenburg Platinum Mines Limited (RPM) and in respect of any repayment by SRPM of shareholder loans or the distribution of dividends, 74% will be paid to Sibanye Platinum and 26% to BBBEE SPV; · Of the 26% payment to BBBEE SPV, 85% will be used to service the facility owing by BBBEE SPV to Sibanye Platinum; · The remaining 15% of any such payment or 100%, once the facility owing by BBBEE SPV to Sibanye Platinum is repaid, will be declared by BBBEE SPV as a dividend to the BBBEE SPV shareholders; and · The facility will be capped at R3,500 million. The IFRS 2 expense has been limited to 44.8% of the 26% interest relating to Bakgatla-Ba-Kgafela Investment Holdings and Siyanda Resources Proprietary Limited, as the Rustenburg Mine Community Trust and Rustenburg Mine Employees Trust are controlled and consolidated by Sibanye-Stillwater. The 44.8% interest was based on the expected discounted future cash flows of the expected PGM reserves and costs to extract the PGMs. 6.4 Share-based payment obligations Figures in million - SA rand Note Share-based payment on BEE transaction 149.7 399.5 240.3 Share-based payment 76.0 35.0 241.4 Balance at end of the year 225.7 434.5 481.7 Reconciliation of the share-based payment obligations Balance at beginning of the year 434.5 481.7 599.6 Share-based payments expense 17.7 14.5 83.8 Share-based payment on BEE transaction - - 240.3 Fair value (gain)/loss on obligations 1 (249.9) 171.5 1,076.6 Cash-settled share-based payments paid 2 (21.7) (433.6) (1,518.6) Share-based payment obligation on acquisition of subsidiary 45.1 200.4 - Balance at end of the year 225.7 434.5 481.7 Reconciliation of the non-current and current portion Share-based payment obligations 225.7 434.5 481.7 Current portion of share-based payment obligations (56.8) (12.3) (235.2) Non-current portion of share-based payment obligations 168.9 422.2 246.5 1 The fair value adjustment at reporting date is included in loss on financial instruments in profit or loss and not as part of share-based payments expense. 2 Payments made during the year relates to vesting of shares to employees. |
OTHER COSTS
OTHER COSTS | 12 Months Ended |
Dec. 31, 2018 | |
OTHER COSTS | |
OTHER COSTS | 7. O ther costs Figures in million - SA rand Note Included in other costs are the following: Care and maintenance (576.5) (249.2) (75.0) Change in estimate of environmental rehabilitation obligation, 66.6 (248.9) (97.5) |
IMPAIRMENT
IMPAIRMENT | 12 Months Ended |
Dec. 31, 2018 | |
IMPAIRMENTS | |
IMPAIRMENTS | 8. Impairments Figures in million - SA rand Notes Impairment of property, plant and equipment (2,603.3) (4,303.4) (1,171.7) Impairment of goodwill (436.3) (99.1) (201.3) Impairment of loan to equity-accounted investee (1.8) (8.5) (8.1) Total impairments (3,041.4) (4,411.0) (1,381.1) 31 December 2018 Impairment of Driefontein, Kloof and Beatrix mining assets and goodwill Ore body constraints, above inflation electricity price and wage increases at the SA gold operations have impacted the sustainability of certain shafts and resulted in these shafts being marginal to loss making. Ongoing efforts to restore these to profitability have proven to be unsuccessful. These profitability challenges were compounded during the year by operational disruptions in 2018 including the interruption of Eskom power at the Beatrix operations in February and seismic events at Driefontein and Kloof which affected access to mining areas, thereby impacting operational flexibility. Ongoing losses experienced at the Driefontein and Beatrix operations negatively affected group cash flow as well as the sustainability and economic viability of other operations in the SA region. As a result a decision was taken during the six months ended 31 December 2018, to impair the mining assets of and goodwill allocated to Driefontein by R2,171.8 million and R166.9 million, respectively, goodwill allocated to Kloof by R165.5 million, and mining assets of and goodwill allocated to Beatrix by R166.9 million and R103.9 million, respectively. These impairments were based on the estimated fair value less cost to sell over the life of mine calculated as expected discounted cash flows from the expected gold reserves and costs to extract the gold. Impairment of Burnstone mine development assets Development of the Burnstone project is deferred to 2020 and as a result a decision was taken at 31 December 2018 to impair the mine development assets of Burnstone by R193.6 million. This impairment was based on the estimated fair value less cost to sell over the life of mine calculated as expected discounted cash flows from the expected gold reserves and costs to extract the gold. 31 December 2017 Impairment of Cooke Operations and Beatrix West mining assets Ongoing losses experienced at the Cooke 1, 2 and 3 Operations and Beatrix West mine negatively affected group cash flow as well as the sustainability and economic viability of other operations in the SA region. In this regard, after numerous attempts to address the losses, it became necessary to enter into consultations in terms of Section 189A of the Labour Relations Act, 66 of 1995 (Section 189A) with relevant stakeholders regarding restructuring at the SA gold operations. As a result a decision was taken during the six months ended 30 June 2017, to impair the Cooke 1, 2 and 3 mining assets by R2,187.8 million and the Beatrix West assets by R603.7 million. These impairments were based on the estimated fair value less cost to sell over the life of mine calculated as expected discounted cash flows from the expected gold reserves and costs to extract the gold. Impairment of WRTRP exploration and evaluation assets, and allocated goodwill On 22 November 2017, Sibanye-Stillwater announced that it has entered into various agreements with DRDGOLD to exchange selected surface gold processing assets and tailings storage facilities (TSF) for approximately 265 million newly issued DRDGOLD shares (the DRDGOLD Transaction). Following the implementation of the DRDGOLD Transaction, Sibanye-Stillwater will retain full ownership of the Cooke and Ezulwini TSFs (of 2.4Moz probable gold reserves and 54.26Mlb probable uranium reserves), and, as such, retains full exposure to the low uranium price environment without the higher gold price TSF. As a result a decision was taken during the six months ended 31 December 2017, to impair the WRTRP exploration and evaluation assets, and allocated goodwill by R1,245.1 million and R99.1 million, respectively. These impairments were based on the estimated fair value less cost to sell over the life of mine calculated as expected discounted cash flows from the expected gold and uranium reserves, and costs to extract the gold and uranium. Impairment of De Bron-Merriespruit exploration and evaluation assets No expenditure on further exploration for and evaluation of the De Bron-Merriespruit mineral resources is budgeted or planned for 2018. As a result a decision was taken to impair the De Bron-Merriespruit exploration and evaluation asset by R227.1 million. 31 December 2016 Impairment of Cooke 4 Despite intense monitoring and interventions by a joint management and labour committee since the previous Section 189A consultation was concluded, the Cooke 4 Operation continued to fall short of production targets and losses continued to accumulate. In view of the sustained losses at the Cooke 4 Operation and considering the extensive efforts to improve productivity and reduce the operation’s cost structures, Sibanye-Stillwater gave notice in terms of Section 189A. As a result a decision was taken during the six months ended 30 June 2016 to fully impair the Cooke 4 Operation’s mining assets by R816.7 million. This impairment was based on negative cash flow projections for the remainder of the life of mine. Impairment of Cooke 1, 2 and 3 mining assets, and allocated goodwill As a result of a decrease in the rand gold price from 30 June 2016 and continued losses, a decision was taken during the six months ended 31 December 2016, to impair the Cooke 1, 2 and 3 mining assets by R355.0 million and the goodwill allocated to the Cooke cash-generating unit (CGU) by R201.3 million. The impairment was based on the estimated fair value less cost to sell over the life of mine calculated as expected discounted cash flows from the expected gold reserves and costs to extract the gold. |
ROYALTIES, AND MINING AND INCOM
ROYALTIES, AND MINING AND INCOME TAX, AND DEFERRED TAX | 12 Months Ended |
Dec. 31, 2018 | |
ROYALTIES, AND MINING AND INCOME TAX, AND DEFERRED TAX | |
ROYALTIES, AND MINING AND INCOME TAX, AND DEFERRED TAX | 9. Royalties, mining and income tax, and deferred tax Significant accounting judgements and estimates The Group is subject to income tax in South Africa, Zimbabwe and the US. Significant judgement is required in determining the liability for income tax due to the complexity of legislation. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Group recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. The Group reassesses its judgements and estimates if facts and circumstances change. Where the facts and circumstances change or when the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. The Group recognises the net future tax benefit related to deferred tax assets to the extent that it is probable that the deductible temporary differences will reverse in the foreseeable future. Assessing the recoverability of deferred tax assets requires the Group to make significant estimates related to expectations of future taxable income. Estimates of future taxable income are based on forecast cash flows from operations and the application of existing tax laws. To the extent that future cash flows and taxable income differ significantly from estimates, the ability of the Group to realise the net deferred tax assets recorded at the reporting date could be impacted. The Group’s gold mining operations are taxed on a variable rate that increases as the profitability of the operation increases. The deferred tax rate used to calculate deferred tax is based on the current estimate of future profitability when the temporary differences will reverse based on tax rates and laws that have been enacted or substantively enacted at the reporting date. Depending on the profitability of the operations, the deferred tax rate can consequently be significantly different from year to year. Calculating the future profitability of the operations is inherently uncertain and could materially change over time. Additionally, future changes in tax laws in South Africa could limit the ability of the Group to obtain tax deductions in future periods. Accounting policy Income tax comprises current and deferred tax. Current tax and deferred tax is recognised in profit or loss except to the extent that it relates to a business combination, or items recognised directly in equity or in other comprehensive income. Current tax is measured on taxable income at the applicable statutory rate enacted or substantively enacted at the reporting date. Deferred tax is provided on temporary differences existing at each reporting date between the tax values of assets and liabilities and their carrying amounts. Substantively enacted tax rates are used to determine future anticipated effective tax rates which in turn are used in the determination of deferred tax. Deferred tax is not recognised for: · temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss; · temporary differences related to investments in subsidiaries, and interest in associates and joint ventures to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that these will not reverse in the foreseeable future; and · taxable temporary differences arising on the initial recognition of goodwill. These temporary differences are expected to result in taxable or deductible amounts in determining taxable profits for future periods when the carrying amount of the asset is recovered or the liability is settled. The principal temporary differences arise from depreciation of property, plant and equipment, provisions, unutilised capital allowances and tax losses carried forward. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and relate to taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously. Deferred tax assets relating to the carry forward of unutilised tax losses and/or unutilised capital allowances are recognised to the extent it is probable that future taxable profit will be available against which the unutilised tax losses and/or unutilised capital allowances can be recovered. Deferred tax assets are reviewed at each reporting date and are adjusted if recovery is no longer probable. 9.1 Royalties Revenue from mineral resources in South Africa are subject to the Mineral and Petroleum Resource Royalty Act 2008 (Royalty Act). The Royalty Act imposes a royalty on refined (mineral resources that have undergone a comprehensive level of beneficiation such as smelting and refining as defined in Schedule 1 of the Royalty Act) and unrefined (mineral resources that have undergone limited beneficiation as defined in Schedule 2 of the Royalty Act) minerals payable to the State. The royalty in respect of refined and unrefined minerals (which include gold refined to 99.5% and above and PGMs) is calculated by dividing earnings before interest and taxes (EBIT) by the product of 12.5 times, in respect of refined, and 9 times, in respect of unrefined, gross revenue calculated as a percentage, plus an additional 0.5%. EBIT refers to taxable mining income (with certain exceptions such as no deduction for interest payable and foreign exchange losses) before assessed losses but after capital expenditure. A maximum royalty of 5% of mining revenue has been introduced on refined minerals. The effective rate of royalty tax payable for the year ended 31 December 2018 was approximately 0.5% (2017: 1.4% and 2016: 1.9%) of revenue at the SA gold operations and 1.1% ( 2017: 0.6%) of revenue at the SA PGM operations. Figures in million - SA rand Current charge (255.5) (398.5) (566.6) SA gold revenue (93.5) (325.3) (528.0) SA PGM revenue (162.0) (73.2) (38.6) Prior year tax refund 42.9 - - Total royalties (212.6) (398.5) (566.6) 9.2 Mining and income tax South African statutory tax rates Gold mining and non-mining tax Gold mining tax is determined according to a formula which takes into account the profit and revenue attributable to mining operations. Mining taxable income is determined after the deduction of all mining capital expenditure, with the provision that this cannot result in an assessed loss. Capital expenditure amounts not deducted are carried forward as unredeemed capital expenditure to be deducted from future mining income. Accounting depreciation is ignored for the purpose of calculating mining tax. In the formula, the percentage rate of tax payable and the ratio of mining profit, after the deduction of redeemable capital expenditure, to mining revenue is expressed as a percentage. Non-mining income consists primarily of interest income, and is taxed at the South African company tax rate of 28%. Company tax rate Companies, other than gold mining companies are subject to the maximum South African company tax rate of 28%. US statutory tax rates Stillwater’s US operations were subject to the federal tax rate of 35%. On 22 December 2017, the Tax Cuts and Jobs Act was signed into legislation in the US and the tax rate changed to 21%. The US PGM operations are subject to tax in the state of New Jersey. During the year ended 31 December 2018, the New Jersey Governor signed a number of bills that implement numerous tax changes which affected the US PGM operations. The most significant change in the law resulted in tax being calculated together on all US entities under common control (greater than 50% voting ownership). Mining and income tax The components of mining and income tax are the following: Figures in million - SA rand Note Current tax (95.3) (504.2) (1,111.8) Mining tax (36.8) (425.2) (1,031.6) Non-mining tax (57.6) (70.6) (83.9) Company and capital gain tax (0.9) (8.4) 3.7 Deferred tax (988.5) 3,450.8 (90.3) Deferred tax charge 306.7 879.7 (30.5) Deferred tax rate adjustment 1 (1,295.2) 2,571.1 (59.8) Total mining and income tax (1,083.8) 2,946.6 (1,202.1) 1 The deferred tax rate adjustment in South Africa and the US was: Figures in million - SA rand South Africa 249.5 39.6 (59.8) United States (1,544.7) 2,531.5 - Deferred tax rate adjustment (1,295.2) 2,571.1 (59.8) The change in the estimated long term deferred tax rate, as a result of applying the mining tax formula at the SA gold operations, at which the temporary differences will reverse amounted to a deferred tax benefit of R249.5 million for the year ended 31 December 2018 (2017: benefit of R39.6 million and 2016: charge of R59.8 million). During the six months ended 31 December 2018, the New Jersey Governor signed a number of bills that implement numerous tax changes which affected the US PGM operations. The most significant change in the law resulted in tax being calculated together on all US entities under common control (greater than 50% voting ownership). This resulted in an increase in the estimated deferred tax rate relating to the US PGM operations and a deferred tax charge of R1,544.7 million (US$107.7 million). On 22 December 2017, the Tax Cuts and Jobs Act was signed into legislation in the US. As a result the Stillwater Group’s deferred tax rate changed from 37.69% to 24.23% and a deferred tax benefit of R2,531.5 million (US$204.8 million) was recognised. Reconciliation of the Group’s mining and income tax to the South African statutory company tax rate of 28%: Figures in million - SA rand Tax on loss/(profit) before tax at maximum South African statutory company tax rate 402.3 2,066.3 (1,188.5) South African gold mining tax formula rate adjustment (53.0) 157.6 160.9 US statutory tax rate adjustment 19.4 57.3 - Non-deductible amortisation and depreciation (21.2) (0.9) (35.0) Non-taxable dividend received 15.4 - - Non-deductible finance charges (118.2) (165.8) (48.7) Non-deductible share-based payments (78.9) (58.4) (115.5) Non-taxable gain/(non-deductible loss) on fair value of financial instruments 136.9 (42.9) (1.7) Non-taxable gain/(non-deductible loss) on foreign exchange differences 250.3 45.0 (52.1) Non-taxable share of results of equity-accounted investees 96.4 81.6 3.7 Non-deductible impairments (123.2) (1,054.9) (65.6) Non-deductible transaction costs (110.0) (154.6) (44.0) Non-taxable gain on acquisition - - 610.0 Net other non-taxable income and non-deductible expenditure 121.0 (251.7) 64.2 Change in estimated deferred tax rate (1,295.2) 2,571.1 (59.8) Deferred tax assets not recognised (325.8) (303.1) (430.0) Mining and income tax (1,083.8) 2,946.6 (1,202.1) 9.3 Deferred tax Figures in million - SA rand Notes Included in the statement of financial position as follows: Deferred tax assets (76.9) (206.2) (228.2) Deferred tax liabilities 10,153.2 8,525.2 4,915.4 Net deferred tax liabilities 10,076.3 8,319.0 4,687.2 Reconciliation of the deferred tax balance: Balance at beginning of the year 8,319.0 4,687.2 3,498.2 Deferred tax recognised in profit or loss 988.5 (3,450.8) 90.3 Deferred tax recognised in other comprehensive income (22.8) (27.7) - Deferred tax on acquisition of subsidiaries 132.2 7,486.3 1,098.7 Foreign currency translation 659.4 (376.0) - Balance at end of the year 10,076.3 8,319.0 4,687.2 The detailed components of the net deferred tax liabilities which result from the differences between the amounts of assets and liabilities recognised for financial reporting and tax purposes are: Figures in million - SA rand Deferred tax liabilities Mining assets 11,344.4 9,642.6 6,365.4 Environmental rehabilitation obligation funds 507.7 600.7 729.6 Other 284.7 47.5 128.6 Gross deferred tax liabilities 12,136.8 10,290.8 7,223.6 Deferred tax assets Environmental rehabilitation obligation (989.2) (840.7) (1,041.0) Occupational healthcare obligation (302.7) (299.7) - Other provisions (464.1) (434.0) (546.3) Tax losses and unredeemed capital expenditure (304.5) (397.4) (890.1) Share-based payment obligation - - (59.0) Gross deferred tax assets (2,060.5) (1,971.8) (2,536.4) Net deferred tax liabilities 10,076.3 8,319.0 4,687.2 At 31 December 2018, the Group had the following estimated amounts not recognised but available for set-off against future income: Figures in million - SA rand Tax losses Wits Gold 63.9 64.6 64.6 Burnstone - - - Rand Uranium 1,132.7 886.6 - DRDGOLD 37.3 - - Other - SA region 15.9 15.9 19.0 Total gross tax losses 3,480.0 3,558.2 2,644.8 Other deductible temporary differences Burnstone 13,419.8 11,306.8 10,012.6 Ezulwini 3,208.4 2,923.7 2,909.1 Rand Uranium 4,115.7 4,045.7 1,125.3 DRDGOLD 602.9 - - Ridge Mining Services Proprietary Limited 715.5 499.5 643.9 Stillwater Canada Inc 1,916.4 1,550.8 - Other - SA region 48.9 54.2 55.6 Other - US region 172.0 183.3 55.6 Total gross tax losses and other deductible temporary differences 27,679.6 24,122.2 17,446.9 Deferred tax assets not recognised Wits Gold 17.9 18.1 18.1 Burnstone 3,757.5 3,165.9 2,803.5 Ezulwini 1,522.8 1,544.1 1,531.7 Rand Uranium 1,469.6 - - DRDGOLD 130.0 - - Ridge Mining Services Proprietary Limited 200.3 139.9 180.3 Stillwater Canada Inc 395.4 284.4 - Other - SA region 18.1 19.6 20.9 Other - US region 53.2 70.9 - Total deferred tax assets not recognised 7,564.8 5,242.9 4,554.5 These deductions are available to be utilised against income generated by the relevant tax entity and do not expire unless the tax entity concerned ceases to operate for a period of longer than one year. Under South African mining tax ring-fencing legislation, each tax entity is treated separately and as such these deductions can only be utilised by the tax entities in which the deductions have been generated. 9.4 Net tax and royalties receivable and payable Figures in million - SA rand Notes Included in the statement of financial position as follows: Tax receivable (483.2) (182.8) - Tax and royalties payable 88.0 34.9 88.6 Net tax and royalties (receivable)/payable (395.2) (147.9) 88.6 Reconciliation of the net tax and royalties (receivable)/payable balance: Balance at beginning of the year (147.9) 88.6 129.6 Royalties and current tax 9.1, 9.2 307.9 902.7 1,678.4 Royalties and tax paid (542.2) (899.3) (1,732.6) Tax payable on acquisition of subsidiaries 4.4 (260.4) 13.2 Foreign currency translation (17.4) 20.5 - Balance at end of the year (395.2) (147.9) 88.6 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2018 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 10. Earnings per share Accounting policy Headline EPS is calculated by dividing the headline earnings attributable to owners of Sibanye-Stillwater by the weighted average number of ordinary shares in issue during the year. 10.1 Basic earnings per share Basic EPS is calculated by dividing the profit attributable to owners of Sibanye-Stillwater by the weighted average number of ordinary shares in issue during the year. Weighted average number of shares Ordinary shares in issue (’000) 2,266,261 2,168,721 929,004 Bonus element of the rights issue (’000) - - 493,645 Bonus element of the capitalisation issue (’000) - 86,749 129,272 Adjustment for weighting of ordinary shares in issue (’000) (2,404) (321,620) (7,271) Weighted average number of shares (’000) 2,263,857 1,933,850 1,544,650 Profit attributable to owners of Sibanye-Stillwater (SA rand million) (2,499.6) (4,437.4) 3,473.3 Basic EPS (cents) (110) (229) 225 10.2 Diluted earnings per share Diluted EPS is calculated by dividing the profit attributable to owners of Sibanye-Stillwater by the diluted number of ordinary shares in issue during the year. Dilutive shares are the number of potentially dilutive ordinary shares that could be issued as a result of share options granted to employees under the share option schemes (refer to note 6) or as a result of the conversion of the US$ Convertible Bond (refer to note 24.5). At 31 December 2018, both of these were anti-dilutive. Diluted weighted average number of shares Weighted average number of shares (’000) 2,263,857 1,933,850 1,544,650 Potential ordinary shares (’000) - - 2,161 Diluted weighted average number of shares (’000) 2,263,857 1,933,850 1,546,811 Diluted basic EPS (cents) (110) (229) 225 10.3 Headline earnings per share Reconciliation of (loss)/profit attributable to owners of Sibanye-Stillwater to headline earnings: Figures in million - SA rand Note Gross Net of tax 2018 Loss attributable to owners of Sibanye-Stillwater (2,499.6) Gain on disposal of property, plant and equipment (60.2) (47.9) Impairments 3,041.4 2,530.9 Headline earnings (16.6) Headline EPS - cents (1) 2017 Profit attributable to owners of Sibanye-Stillwater (4,437.4) Gain on disposal of property, plant and equipment (40.7) (29.3) Impairments 4,411.0 4,242.8 Headline earnings (223.9) Headline EPS - cents (12) 2016 Profit attributable to owners of Sibanye-Stillwater 3,473.3 Gain on disposal of property, plant and equipment (95.4) (68.7) Impairments 1,381.1 1,281.7 Gain on acquisition (2,178.6) (2,178.6) Headline earnings 2,507.7 Headline EPS - cents 10.4 Diluted headline earnings per share Diluted headline EPS is calculated by dividing the headline earnings attributable to owners of Sibanye-Stillwater by the diluted weighted average number of ordinary shares in issue during the year. Diluted headline EPS - cents (1) (12) 162 |
DIVIDENDS
DIVIDENDS | 12 Months Ended |
Dec. 31, 2018 | |
DIVIDENDS | |
DIVIDENDS | 11. D ividends Accounting policy Dividends are recognised as a liability on the date on which such dividends are declared. Dividends withholding tax is a tax on shareholders receiving dividends and is applicable to all dividends paid. The Group withholds dividend tax on behalf of its shareholders at a rate of 20% on dividends paid. Amounts withheld are not recognised as part of the Group’s tax charge but rather as part of the dividend paid, recognised in equity. Cash flows from dividends paid are classified under operating activities in the statement of cash flows. Figures in million - SA rand Dividend declared and paid - 558.2 1,610.6 Dividend per share - cents - 60 175 Dividend policy Sibanye-Stillwater’s dividend policy is to return at least 25% to 35% of normalised earnings to shareholders and after due consideration of future requirements the dividend may be increased beyond these levels. Management, therefore, considers normalised earnings in determining what value will be distributed to shareholders. Management believes normalised earnings provides useful information to investors regarding the extent to which results of operations may affect shareholder returns. Normalised earnings is defined as earnings attributable to the owners of Sibanye-Stillwater excluding gains and losses on financial instruments and foreign exchange differences, gain on disposal of property, plant and equipment, impairments, gain on derecognition of borrowings and derivative financial instrument, occupational healthcare expense, restructuring costs, transactions costs, share-based payment on BEE transaction, gain on acquisition, other business development costs, share of results of equity-accounted investees, after tax, and changes in estimated deferred tax rate. Reconciliation of (loss)/profit attributable to the owners of Sibanye-Stillwater to normalised earnings: Figures in million - SA rand (Loss)/profit attributable to the owners of Sibanye-Stillwater (2,499.6) (4,437.4) 3,473.3 Adjusted for: (Gain)/loss on financial instruments (1,704.1) 1,114.4 1,032.8 Gain on foreign exchange differences (1,169.1) (292.4) (219.6) Gain on disposal of property, plant and equipment (60.2) (40.7) (95.4) Impairments 3,041.4 4,411.0 1,381.1 Gain on derecognition of borrowings and derivative financial instrument (230.0) - - Occupational healthcare expense 15.4 1,106.9 - Restructuring costs 142.8 729.8 187.7 Transaction costs 402.5 552.1 157.0 Share-based payment on BEE transaction - - 240.3 Gain on acquisition - - (2,178.6) Other 18.7 52.7 72.4 Tax effect of the items adjusted above (345.7) (813.4) (419.4) Change in estimated deferred tax rate 1,295.2 (2,571.1) 59.8 Share of results of equity-accounted investees after tax (344.2) (291.6) (13.3) Normalised earnings (1,436.9) (479.7) 3,678.1 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2018 | |
PROPERTY, PLANT AND EQUIPMENT | |
PROPERTY, PLANT AND EQUIPMENT | 12. Property, plant and equipment Significant accounting judgements and estimates Carrying value of property, plant and equipment All mining assets are amortised using the units-of-production method where the mine operating plan calls for production from proved and probable Mineral Reserves. Mobile and other equipment are depreciated over the shorter of the estimated useful life of the asset or the estimate of mine life based on proved and probable Mineral Reserves. The calculation of the units-of-production rate of amortisation could be impacted to the extent that actual production in the future is different from current forecast production based on proved and probable Mineral Reserves. This would generally result from the extent that there are significant changes in any of the factors or assumptions used in estimating Mineral Reserves. These factors could include: · changes in proved and probable Mineral Reserves; · differences between actual commodity prices and commodity price assumptions; · unforeseen operational issues at mine sites; · changes in capital, operating, mining, processing and reclamation costs, discount rates and foreign exchange rates; and · changes in Mineral Reserves could similarly impact the useful lives of assets depreciated on a straight-line basis, where those lives are limited to the life of the mine. The recoverable amounts of CGUs and individual assets have been determined based on the higher of value-in-use calculations and fair value less cost to sell. These calculations require the use of estimates and assumptions. It is reasonably possible that the gold and PGM price assumptions may change which may then impact the Group estimated life of mine determinant and may then require a material adjustment to the carrying value of property, plant and equipment. The Group reviews and tests the carrying value of assets when events or changes in circumstances suggest that the carrying amount may not be recoverable by comparing expected future cash flows to these carrying values. Assets are grouped at the lowest level for which identifiable cash flows are largely independent of cash flows of other assets and liabilities. If there are indications that impairment may have occurred, estimates are prepared of expected future cash flows of each group of assets. Expected future cash flows used to determine the value in use and fair value less costs to sell of property, plant and equipment are inherently uncertain and could materially change over time. They are significantly affected by a number of factors including reserves and production estimates, together with economic factors such as spot and future gold and PGM prices, discount rates, foreign currency exchange rates, estimates of costs to produce reserves and future capital expenditure. Pre-production The Group assesses the stage of each mine construction project to determine when a mine moves into the production stage. The criteria used to assess the start date are determined based on the unique nature of each mine construction project. The Group considers various relevant criteria to assess when the mine is substantially complete, ready for its intended use and moves into the production stage. Some of the criteria would include, but are not limited to the following: · the level of capital expenditure compared to the construction cost estimates; · ability to produce metal in saleable form (within specifications); and · ability to sustain commercial levels of production of metal. When a mine construction project moves into the production stage, the capitalisation of certain mine construction costs ceases and costs are expensed, except for capitalisable costs related to mining asset additions or improvements, underground mine development or ore reserve development. Mineral Reserves estimates Mineral Reserves are estimates of the amount of product that can be economically and legally extracted from the Group’s properties. In order to calculate the reserves, estimates and assumptions are required about a range of geological, technical and economic factors, including but not limited to quantities, grades, production techniques, recovery rates, production costs, transport costs, commodity demand, commodity prices and exchange rates. Estimating the quantity and grade of the Mineral Reserves requires the size, shape and depth of ore bodies to be determined by analysing geological data such as the logging and assaying of drill samples. This process may require complex and difficult geological judgements and calculations to interpret the data. The Group is required to determine and report, inter alia , on the Mineral Reserves in accordance with the South African Code for Reporting of Exploration Results, Mineral Resources and Mineral Reserves (SAMREC Code). Estimates of Mineral Reserves may change from period to period due to the change in economic assumptions used to estimate Mineral Reserves and due to additional geological data becoming available during the course of operations. Changes in reported proven and probable reserves may affect the Group’s financial results and position in a number of ways, including the following: · asset carrying values may be affected due to changes in estimated cash flows; · depreciation and amortisation charges to profit or loss may change as these are calculated on the units-of production method, or where the useful lives of assets change; · decommissioning site restoration and environmental provisions may change where changes in ore reserves affect expectations about the timing or cost of these activities; and · the carrying value of deferred tax assets may change due to changes in estimates of the likely recovery of the tax benefits. Accounting policy Mineral and surface rights Mineral and surface rights are recorded at cost less accumulated amortisation and accumulated impairment losses. When there is little likelihood of a mineral right being exploited, or the carrying amount has exceeded its recoverable amount, impairment is recognised in profit or loss in the year that such determination is made. Mine development and infrastructure Mining assets, including mine development and infrastructure costs and mine plant facilities, are recorded at cost less accumulated depreciation and accumulated impairment losses. These costs which include the purchase price of assets used in the construction of the mine, expenditure incurred to evaluate and develop new ore bodies, to define mineralisation in existing ore bodies and to establish or expand productive capacity, are capitalised until commercial levels of production are achieved, at which times the costs are amortised as set out below. Development of ore bodies includes the development of shaft systems and waste rock removal that allows access to reserves that are economically recoverable in the future. Subsequent to this, costs are capitalised if the criteria for recognition as an asset are met. Access to individual ore bodies exploited by the Group is limited to the time span of the respective mining leases. Land Land is shown at cost and is not depreciated. Other assets Non-mining assets are recorded at cost less accumulated depreciation and accumulated impairment losses. These assets include the assets of the mining operations not included in mine development and infrastructure, borrowing costs, mineral and surface rights, land and all the assets of the non-mining operations. Amortisation and depreciation of mining assets Amortisation and depreciation is determined to give a fair and systematic charge in profit or loss taking into account the nature of a particular ore body and the method of mining that ore body. To achieve this, the following calculation methods are used: · Mining assets, including mine development and infrastructure costs, mine plant facilities and evaluation costs, are amortised over the life of the mine using the units-of-production method, based on estimated proved and probable Mineral Reserves above infrastructure. · Proved and probable Mineral Reserves reflect estimated quantities of economically recoverable reserves, which can be recovered in future from known mineral deposits. · Certain mining plant and equipment included in mine development and infrastructure is depreciated on a straight-line basis over their estimated useful lives. · For certain shafts, which have a short life and/or are marginal, the depreciation is accelerated based on an adjustment to the reserves for accounting purposes. Depreciation of non-mining assets Non-mining assets are recorded at cost and depreciated on a straight-line basis over their current expected useful lives to their residual values as follows: · Vehicles: 5 years · Computers: 3 years · Furniture and equipment: 1 - 10 years The assets’ useful lives, depreciation methods and residual values are reassessed at each reporting date and adjusted if appropriate. Impairment Recoverability of the carrying values of long-term assets or CGUs of the Group are reviewed whenever events or changes in circumstances indicate that such carrying value may not be recoverable. To determine whether a long-term asset or CGU may be impaired, the higher of value in use (defined as: the present value of future cash flows expected to be derived from an asset or CGU) or fair value less costs to sell (defined as: the price that would be received to sell an asset in an orderly transaction between market participants at the measured rate, less the costs of disposal) is compared to the carrying value of the asset/unit. A CGU is defined by the Group as the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. Generally for the Group this represents an individual operating mine, including mines which are part of a larger mine complex. The costs attributable to individual shafts of a mine are impaired if the shaft is closed. Impairment losses are recognised in profit or loss. Impairment recognised in respect of a CGU is allocated first to goodwill to that particular CGU and thereafter to the individual assets in the CGU. When any infrastructure is closed down or placed on care and maintenance during the year, any carrying value attributable to that infrastructure is impaired. Expenditure incurred on care and maintenance is recognised in profit or loss. When the review of the events or changes in circumstances of an asset or CGU that was previously impaired indicate that such historical carrying value is recoverable, the impairment is reversed. The impairment is only reversed to such an amount that the new carrying amount does not exceed the historical carrying amount. Reversal of impairment losses are recognised in profit or loss. Reversal of impairment recognised in respect of a CGU is allocated to the individual assets in the CGU. Derecognition of property, plant and equipment Property, plant and equipment is derecognised on disposal or closure of a shaft when no future economic benefits are expected from its use or disposal. Any gain or loss on derecognition of an item of property, plant and equipment (calculated as the net proceeds from disposal and the carrying amount of the item) is recognised in profit or loss. Exploration and evaluation expenditure All exploration and evaluation expenditure, prior to obtaining the legal rights to explore a specific area, is recognised in profit or loss. After the legal rights to explore are obtained, exploration and evaluation expenditure, comprising the costs of acquiring prospecting rights and directly attributable exploration expenditure, is capitalised as a separate class of property, plant and equipment or intangible assets, on a project-by-project basis, pending determination of the technical feasibility and commercial viability. The technical feasibility and commercial viability of extracting a mineral resource is generally considered to be determinable through a feasibility study and when proven reserves are determinable to exist. Upon determination of proven reserves, exploration and evaluation assets attributable to those reserves are first tested for impairment and then reclassified from exploration and evaluation assets to another appropriate class of property, plant and equipment. Subsequently, all cost directly incurred to prepare an identified mineral asset for production is capitalised to mine development assets. Amortisation of these assets commences once these assets are available for use, which is expected to be when the mine is in commercial production. These assets will be measured at cost less accumulated amortisation and impairment losses. Figures in million - SA rand Notes Total Mine Land, mineral Exploration 2018 Cost Balance at beginning of the year 101,720.7 76,529.2 21,807.9 3,383.6 Additions 1 7,107.5 7,034.6 (0.5) 73.4 Change in estimates of rehabilitation assets 618.8 - 618.8 - Disposals (171.2) (168.1) (3.1) - Derecognition of property, plant and equipment 2 (14,416.4) (14,287.7) (128.7) - Transfers between classes of property, plant and equipment - 192.8 134.5 (327.3) Assets acquired on acquisition of subsidiaries 1,443.2 1,325.0 50.0 68.2 Assets derecognised on loss of control of subsidiary (1,322.3) (12.5) - (1,309.8) Foreign currency translation 5,014.3 2,197.9 2,616.4 200.0 Balance at end of the year 99,994.6 72,811.2 25,095.3 2,088.1 Accumulated depreciation, amortisation and impairment Balance at beginning of the year 50,276.1 44,308.9 4,471.0 1,496.2 Amortisation and depreciation 1 6,640.6 5,900.8 739.8 - Impairment 2,603.3 2,461.5 70.8 71.0 Disposals (77.2) (75.9) (1.3) - Derecognition of property, plant and equipment 2 (14,416.4) (14,287.7) (128.7) - Assets derecognised on loss of control of subsidiary (10.9) 10.9 - - Foreign currency translation 420.9 279.5 124.8 16.6 Balance at end of the year 45,436.4 38,598.0 5,276.4 1,583.8 Carrying value at end of the year 54,558.2 34,213.2 19,818.9 504.3 1 During the year, amortisation and depreciation on assets used in the development of the Burnstone project was capitalised. As a result, additions includes non-cash additions (or amortisation and depreciation capitalised) of R26.8 million. 2 During the year, short-term ore reserve development, which was capitalised up to 31 December 2016 and fully depreciated by 2018, was derecognised as no future economic benefits are expected from its use. Figures in million - SA rand Notes Total Mine Land, mineral Exploration 2017 Cost Balance at beginning of the year 67,689.8 59,904.4 5,714.4 2,071.0 Additions 1 6,140.6 5,979.1 95.3 66.2 Change in estimates of rehabilitation assets (187.8) - (187.8) - Disposals (142.3) (134.1) (7.9) (0.3) Assets acquired on acquisition of subsidiaries 29,948.6 11,513.6 17,115.2 1,319.8 Foreign currency translation (1,728.2) (733.8) (921.3) (73.1) Balance at end of the year 101,720.7 76,529.2 21,807.9 3,383.6 Accumulated depreciation, amortisation and impairment Balance at beginning of the year 40,449.1 38,341.9 2,107.2 - Amortisation and depreciation 5,741.6 5,067.6 674.0 - Impairment 4,303.4 1,504.6 1,300.3 1,498.5 Disposals (111.7) (534.2) 422.5 - Foreign currency translation (106.3) (71.0) (33.0) (2.3) Balance at end of the year 50,276.1 44,308.9 4,471.0 1,496.2 Carrying value at end of the year 51,444.6 32,220.3 17,336.9 1,887.4 1 During the year, amortisation and depreciation on assets used in the development of the Burnstone project was capitalised. As a result, additions includes non-cash additions (or amortisation and depreciation capitalised) of R41.8 million. Figures in million - SA rand Notes Total Mine Land, mineral Exploration 2016 Cost Balance at beginning of the year 57,431.7 51,919.9 3,591.5 1,920.3 Additions 4,151.1 4,065.7 3.7 81.7 Change in estimates of rehabilitation assets 472.5 - 472.5 - Disposals (67.8) (65.9) (1.9) - Assets acquired on acquisition of subsidiaries 5,702.3 3,984.7 1,648.6 69.0 Balance at end of the year 67,689.8 59,904.4 5,714.4 2,071.0 Accumulated depreciation, amortisation and impairment Balance at beginning of the year 35,299.3 33,978.1 1,321.2 - Amortisation and depreciation 4,041.9 3,656.7 385.2 - Impairment 1,171.7 770.3 401.4 - Disposals (63.8) (63.2) (0.6) - Balance at end of the year 40,449.1 38,341.9 2,107.2 - Carrying value at end of the year 27,240.7 21,562.5 3,607.2 2,071.0 |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2018 | |
ACQUISITIONS | |
ACQUISITIONS | 13. Acquisitions Significant accounting judgements and estimates Expected future cash flows used to determine the fair value of, inter alia , property, plant and equipment and contingent consideration are inherently uncertain and could materially change over time. The fair value is significantly affected by a number of factors including reserves and production estimates, together with economic factors such as the expected commodity price, foreign currency exchange rates, and estimates of production costs, future capital expenditure and discount rates. Accounting policy Business combinations The acquisition method of accounting is used to account for business combinations by the Group. The consideration transferred for the acquisition of a business is the fair value of the assets transferred, the liabilities incurred and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Any contingent consideration is measured at fair value at the date of acquisition. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. On an acquisition-by-acquisition basis, the Group recognises any non-controlling interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net assets. Subsequently, the carrying amount of non-controlling interest is the amount of the interest at initial recognition plus the non-controlling interest’s share of the subsequent changes in equity, plus or minus changes in the portion of interest of the equity of the subsidiary not attributable, directly or indirectly, to Sibanye-Stillwater shareholders. The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired is recorded as goodwill. If this is less than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the difference is a gain recognised directly in profit or loss. 13.1 DRDGOLD acquisition On 22 November 2017, Sibanye-Stillwater announced that it had entered into various agreements with DRDGOLD in terms of which, Sibanye-Stillwater will exchange selected surface gold processing assets and TSF (the “Far West Gold Recoveries”, previously known as the WRTRP) for approximately 265 million newly issued DRDGOLD shares (the DRDGOLD Transaction), or 38.05% of the issued share capital of DRDGOLD. In addition, pursuant to the DRDGOLD Transaction, Sibanye-Stillwater has an option to subscribe for a sufficient number of DRDGOLD ordinary shares to attain a 50.1% shareholding in DRDGOLD at a 10% discount to the 30 day volume weighted average traded price. Sibanye-Stillwater received approval for the DRDGOLD Transaction from the South African competition authorities in accordance with the Competition Act and on 19 July 2018 all the conditions precedent to the DRDGOLD Transaction were fulfilled. Sibanye-Stillwater obtained control (38.05%) of DRDGOLD on this date. The effective date of the implementation of the DRDGOLD Transaction was 31 July 2018, when Sibanye-Stillwater was issued the newly issued DRDGOLD shares. DRDGOLD has a 30 June year end and is consolidated from 31 July 2018 based on its results to 31 December 2018. For the five months ended 31 December 2018, DRDGOLD contributed revenue of R1,047.5 million and a net loss of R39.9 million to the Group’s results, before Sibanye-Stillwater Group adjustments. The purchase price allocation (PPA) has been prepared on a provisional basis in accordance with IFRS 3. If new information obtained within one year of the acquisition date, in particular relating to contingent liabilities, about facts and circumstances that existed at the acquisition date, identifies adjustments to the below amounts or any additional provisions that existed at the date of acquisition, then the accounting for the acquisition will be revised. Acquisition related costs The Group incurred acquisition related costs of R25.0 million on advisory and legal fees. These costs are recognised as transaction costs in profit or loss. Identifiable assets acquired and liabilities assumed The following table summarises the recognised fair value of assets acquired and liabilities assumed at the acquisition date: Figures in million Notes Property, plant and equipment 1 1,443.2 Environmental rehabilitation obligation funds 244.7 Other non-current assets 28.7 Inventories 243.5 Trade and other receivables 138.4 Cash and cash equivalents 282.8 Environmental rehabilitation obligation and other provisions (672.7) Deferred tax liabilities (132.2) Other non-current liabilities (54.9) Trade and other payables (337.1) Other current liabilities (17.6) Total fair value of identifiable net assets acquired 1,166.8 1 The fair value of property, plant and equipment was based on the expected discounted cash flows of the expected ore reserves and costs to extract the ore discounted at a real discount rate of 9.3% and an average gold price of R580,000/kg. Goodwill Goodwill arising from the acquisition has been recognised as follows: Figures in million Note SA rand Transaction with DRDGOLD shareholders (Consideration) 1 261.4 Fair value of identifiable net assets acquired (1,166.8) Non-controlling interest, based on the proportionate interest in the recognised amounts of assets and liabilities 2 940.3 Goodwill 34.9 1 The purchase consideration was calculated as 61.95% of the fair value of Far West Gold Recoveries assets and liabilities. The fair value of assets and liabilities, excluding property, plant and equipment, approximate the carrying value. The fair value of property, plant and equipment was based on the expected discounted cash flows of the expected ore reserves and costs to extract the ore discounted at a real discount rate of 13.8%, an average gold price of R580,000/kg. Although Sibanye-Stillwater exchanged (i.e. disposed) the Far West Gold Recoveries assets and liabilities, the Group effectively retains control. The transaction with DRDGOLD shareholders, therefore, represents the difference between 61.95% of the fair value and carrying value of Far West Gold Recoveries assets and liabilities. 2 Non-controlling interest was based on the proportionate interest (of 61.95%) in the carrying value of the Far West Gold Recoveries assets and liabilities, and fair value of the DRDGOLD net assets and liabilities acquired. The goodwill is attributable to DRDGOLD’s proven surface retreatment capabilities. Refer to note 14 for the allocation of goodwill. None of the goodwill recognised is expected to be deducted for tax purposes. 13.2 Stillwater acquisition On 9 December 2016, Sibanye-Stillwater announced it had reached a definitive agreement to acquire Stillwater Mining Company (Stillwater) for US$18 per share in cash, or US$2,200 million in aggregate (the Stillwater Transaction). On 25 April 2017, at the shareholders meeting of Sibanye-Stillwater, the Sibanye-Stillwater shareholders approved the proposed Stillwater Transaction by voting in favour of the various resolutions to give effect to the Stillwater Transaction and at the shareholders meeting of Stillwater, the requisite majority of Stillwater shareholders resolved to approve the Stillwater Transaction. Sibanye-Stillwater obtained control (100%) of Stillwater on this date. The effective date of the implementation of the Stillwater Transaction was 4 May 2017, when Sibanye-Stillwater took over legal ownership of Stillwater. For the eight months ended 31 December 2017, Stillwater contributed revenue of US$688.3 million (R9,161.6 million) and a profit of US$152.4 million (R2,028.1 million) to the Group’s results. At 25 April 2017, the PPA was prepared on a provisional basis in accordance with IFRS 3. During the re-measurement period, the Group received new information relating to exploration and evaluation assets that existed at acquisition date, and adjustments were made to the provisional calculation of the fair values resulting in a decrease of US$9.4 million (R123.7 million) in the fair value of property, plant and equipment, a decrease of US$3.6 million (R46.7 million) to the net deferred tax liabilities, and an increase of US$5.8 million (R77.0 million) in the reported value of goodwill. Accordingly, the PPA was restated as required by IFRS 3. Consideration The consideration paid is as follows: Figures in million Note US dollar SA rand Cash 2,080.7 27,174.5 Liability raised in respect of dissenting shareholders 104.5 1,364.3 Settlement of share-based payment awards (cash) 16.2 211.9 Total consideration 2,201.4 28,750.7 Acquisition related costs The Group incurred acquisition related costs of R528.5 million on advisory and legal fees. These costs are recognised as transaction costs in profit or loss. Identifiable assets acquired and liabilities assumed The following table summarises the recognised fair value of assets acquired and liabilities assumed at the acquisition date: Figures in million Notes US dollar SA rand Property, plant and equipment 2,293.2 29,948.6 Other non-current assets 6.9 90.8 Inventories 159.7 2,085.4 Current investments 278.9 3,642.2 Cash and cash equivalents 137.2 1,792.2 Other current assets 37.3 487.3 Borrowings (454.6) (5,937.6) Environmental rehabilitation obligation (23.9) (312.1) Deferred tax liabilities (573.2) (7,486.3) Other non-current liabilities (19.9) (260.3) Trade and other payables (88.1) (1,150.1) Other current liabilities (1.8) (23.3) Total fair value of identifiable net assets acquired 1 1,751.7 22,876.8 1 The fair value of assets and liabilities excluding property, plant and equipment, inventories and borrowings approximate the carrying value. The fair value of property, plant and equipment was based on the expected discounted cash flows of the expected ore reserves and costs to extract the ore discounted at a real discount rate of 8.6% for the Stillwater and East Boulder mines and Columbus metallurgical complex, and 10.3% for the Blitz project, an average platinum price of US$1,375/oz and an average palladium price of US$880/oz. The fair value of borrowings (Convertible Debentures) was based on the settlement price. Goodwill Goodwill arising from the acquisition has been recognised as follows: Figures in million Note US dollar SA rand Consideration 2,201.4 28,750.7 Fair value of identifiable net assets (1,751.7) (22,876.8) Goodwill 449.7 5,873.9 The goodwill is attributable to the talent and skills of Stillwater’s workforce. Refer to note 14 for the allocation of goodwill. None of the goodwill recognised is expected to be deducted for tax purposes. |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2018 | |
GOODWILL. | |
GOODWILL | 14. Goodwill Significant accounting judgements and estimates Goodwill is tested for impairment on an annual basis. Expected future cash flows used to determine the recoverable amount of property, plant and equipment and goodwill are inherently uncertain and could materially change over time. The recoverable amount is significantly affected by a number of factors including reserves and production estimates, together with economic factors such as the expected commodity price, foreign currency exchange rates, and estimates of production costs, future capital expenditure and discount rates. An individual operating mine does not have an indefinite life because of the finite life of its reserves. The allocation of goodwill to an individual mine will result in an eventual goodwill impairment due to the wasting nature of the mine. Accounting policy Goodwill is stated at cost less accumulated impairment losses. In accordance with the provisions of IAS 36 Impairment of Assets, the Group performs its annual impairment review of goodwill at each financial year end or whenever there are impairment indicators to establish whether there is any indication of impairment to goodwill. A write-down is made if the carrying amount exceeds the recoverable amount. The recoverable amount is determined by reference to “fair value less costs to sell” being the higher of “value in use” and “fair value less cost to sell”, based on the cash flows over the life of the CGUs and discounted to present value at an appropriate discount rate. Impairment losses on goodwill are not reversed. Gains and losses on the disposal of an entity include the carrying amount of goodwill allocated to the entity sold. Goodwill is allocated to CGUs for the purpose of impairment testing. The allocation is made to those CGUs or groups of CGUs that are expected to benefit from the business combination in which the goodwill arose. Figures in million - SA rand Notes Balance at beginning of the year 6,396.0 936.0 736.7 Impairment (436.3) (99.1) (201.3) Goodwill on acquisition of subsidiaries 13.1, 13.2 34.9 5,873.9 400.6 Foreign currency translation 895.0 (314.8) - Balance at end of the year 6,889.6 6,396.0 936.0 The goodwill arose on the acquisition of Cooke, Aquarius, Stillwater and DRDGOLD. The goodwill on acquisition of: · Cooke was attributable to the synergies at the Group’s other operations, and the underlying assets of Cooke and WRTRP. During the year ended 31 December 2018, the goodwill from the acquisition of Cooke allocated to the Driefontein, Kloof and Beatrix CGUs was impaired by R436.3 million (refer to note 8). There were no other events or changes in circumstances that suggest that the carrying amount of a CGU may not be recoverable. · Aquarius was attributable to the synergies between the PGM assets in the Rustenburg area. At year end the goodwill on acquisition of Aquarius is allocated to the Kroondal (R133.5 million) and the Rustenburg operation (R267.1 million) CGUs, where it is tested for impairment. · Stillwater was attributable to the premium paid, and the talent and skills of Stillwater’s workforce, and is allocated to the Stillwater CGU, where it is tested for impairment. · DRDGOLD is attributable to DRDGOLD’s proven surface retreatment capabilities, and is allocated to the DRDGOLD CGU, where it is tested for impairment. None of the goodwill recognised is expected to be deducted for tax purposes. The Group’s estimates and assumptions used in the 31 December 2018 impairment testing include: Platinum Gold Long-term gold price R/kg R/4Eoz Long-term PGM (4E) basket price US$/2Eoz Long-term PGM (2E) basket price % Nominal discount rate – South Africa 1 % % Nominal discount rate – US % Inflation rate – South Africa % % Inflation rate – US 9 - 34 12 - 28 years Life of mine years 5 - 20 12 - 22 1 Nominal discount rate for Burnstone of 17.4%. The annual life-of-mine plan that takes into account the following: · proved and probable ore reserves of the CGUs; · resources are valued using appropriate price assumptions; · cash flows are based on the life-of-mine plan; and · capital expenditure estimates over the life-of-mine plan. The recoverable amounts of the Kroondal, Platinum Mile, Rustenburg and Stillwater operations CGUs are significantly higher than the carrying values, therefore a reasonably possible adverse change in the abovementioned assumptions would not likely result in an adjustment to the carrying values. The recoverable amounts of the Driefontein, Beatrix and DRDGOLD CGUs are marginally higher than the carrying values and, therefore, any reasonably possible adverse change in the abovementioned assumptions could result in further impairment . |
EQUITY-ACCOUNTED INVESTMENTS
EQUITY-ACCOUNTED INVESTMENTS | 12 Months Ended |
Dec. 31, 2018 | |
EQUITY-ACCOUNTED INVESTMENTS | |
EQUITY-ACCOUNTED INVESTMENTS | 15. Equity-accounted investments Significant accounting judgements and estimates Joint arrangements Judgement is required to determine when the Group has joint control, which requires an assessment of the relevant activities and when the decisions in relation to those activities require unanimous consent. The Group has determined that the relevant activities for its joint arrangements are those relating to the operating and capital decisions of the arrangement, such as: the approval of the capital expenditure programme for each year, and appointing, remunerating and terminating the key management personnel or service providers of the joint arrangement. The considerations made in determining joint control are similar to those necessary to determine control over subsidiaries. Judgement is also required to classify a joint arrangement as either a joint operation or a joint venture. Classifying the arrangement requires the Group to assess their rights and obligations arising from the arrangement. Specifically, it considers: · The structure of the joint arrangement – whether it is structured through a separate vehicle. · When the arrangement is structured through a separate vehicle, the Group also considers the rights and obligations arising from: - the legal form of the separate vehicle; and - the terms of the contractual arrangement. This assessment often requires significant judgement, and a different conclusion on joint control and also whether the arrangement is a joint operation or a joint venture may materially impact the accounting. Carrying value of Mimosa and related Mineral Reserves and Mineral Resources estimates The recoverable amount Mimosa has been determined based on the higher of value-in-use calculations and fair value less cost to sell. This calculation requires the use of estimates and assumptions. It is reasonably possible that the PGM price assumptions may change which may then impact the estimated life of mine determinant and may then require a material adjustment to the carrying value of Mimosa. The Group reviews and tests the carrying value when events or changes in circumstances suggest that the carrying amount may not be recoverable by comparing expected future cash flows to the carrying value. Expected future cash flows used to determine the value in use and fair value less costs to sell of Mimosa are inherently uncertain and could materially change over time. These are significantly affected by a number of factors including reserves and production estimates, together with economic factors such as spot and future PGM prices, discount rates, foreign currency exchange rates, estimates of costs to produce reserves and future capital expenditure. Mineral resources outside the approved mine plans are valued based on the in situ 4E ounce value. Comparable market transactions are used as a source of evidence adjusting specifically for the nature of each underlying ore body. Accounting policy The Group’s interest in equity-accounted investees comprise interests in associates and joint ventures. Associates are those entities in which the Group has significant influence, but not control or joint control, over the financial and operating policies. Joint ventures are arrangements in which the Group has joint control, whereby the Group has rights to the net assets of the arrangement, rather than rights to its assets and obligations for it liabilities. Interests in associates and joint ventures are accounted for using the equity method. The interests are initially recognised at cost using the same principles as with business combinations. Subsequent to initial recognition, the consolidated financial statements include the Group’s share of profit or loss and other comprehensive income of equity-accounted investees until the date on which significant influence or joint control ceases. Results of associates and joint ventures are equity-accounted using the results of their most recent audited annual financial statements or unaudited management accounts. Any losses from associates are brought to account in the consolidated financial statements until the interest in such associates is written down to zero. The interest includes any long-term interests that in substance, form part of the entity’s net investment in the equity-accounted investee, for example long-term receivables for which settlement is neither planned nor likely to occur in the foreseeable future. Thereafter, losses are accounted for only insofar as the Group is committed to providing financial support to such associates. The carrying value of an equity-accounted investment represents the cost of the investment, including goodwill, the proportionate share of the post-acquisition retained earnings and losses, any other movements in reserves, any impairment losses and loans to or from the equity-accounted investee. The carrying value together with any long-term interests that in substance form part of the net investment in the equity-accounted investee is assessed annually for existence of indicators of impairment and if such exist, the carrying amount is compared to the recoverable amount, being the higher of value in use or fair value less costs to sell. If an impairment in value has occurred, it is recognised in the period in which the impairment arose. Indicators of impairment include a significant or prolonged decline in the investments fair value below its carrying value. The Group holds the following equity-accounted investments: Figures in million - SA rand Notes Rand Refinery 239.3 198.4 72.4 Mimosa 2,492.4 2,012.9 2,049.3 Peregrine 978.0 - - Other equity-accounted investments 24.2 32.8 35.7 Total equity-accounted investments 3,733.9 2,244.1 2,157.4 15.1 Rand Refinery Sibanye-Stillwater has a 44.4% interest in Rand Refinery Proprietary Limited (Rand Refinery), a company incorporated in South Africa, which is involved in the refining of bullion and by-products sourced from, inter alia , South African and foreign gold producing mining companies. Rand Refinery is accounted for using the equity method. On 18 December 2014, Rand Refinery drew down R1.029 billion under a R1.2 billion subordinated shareholders loan (the Facility), with Sibanye-Stillwater’s proportional share being R384.6 million. Amounts drawn down under the Facility were repayable within two years from the first draw down date. If the loan was not repaid within two years, it would automatically convert into equity in Rand Refinery. During February 2017, Rand Refinery resolved to convert the Facility to redeemable preference shares. The equity-accounted investment in Rand Refinery movement for the year is as follows: Figures in million - SA rand Balance at beginning of the year 198.4 72.4 148.7 Share of results of equity-accounted investee after tax 1 143.7 124.5 (116.5) Preference shares redeemed (102.8) - - Interest income on loan to equity-accounted investee capitalised - 1.5 40.2 Balance at end of the year 239.3 198.4 72.4 1 Rand Refinery is equity accounted based on its results for the period ended 30 November. The Group’s interest in the summarised financial statements of Rand Refinery are: Figures in million - SA rand Revenue 644.0 649.0 903.0 Total comprehensive income 434.0 374.0 (352.0) Non-current assets 699.0 702.0 636.0 Current assets 1,088.0 669.0 419.0 Non-current liabilities (44.0) (31.0) (1,095.0) Current liabilities (359.0) (391.0) (467.0) Net assets/(liabilities) (100.0%) 1,384.0 949.0 (507.0) Reconciliation of the total investment in Rand Refinery with attributable net assets: Net assets/(liabilities) (44.4% (2017 and 2016: 33.1%)) 614.5 314.1 (168.2) Preference shares redeemed (102.8) - - Dividend received (8.2) (8.2) (8.2) Fair value adjustment 1 (35.5) (35.5) (35.5) Impairment (119.6) (119.6) (119.6) Loan to equity-accounted investee - - 403.9 Redeemable preference shares below 44.4% interest 2 (109.1) 47.6 - Total investment in Rand Refinery 239.3 198.4 72.4 1 The investment in equity-accounted investee was fair valued at 1 July 2002, the date when significant influence was obtained. 2 Sibanye-Stillwater’s proportional share of the Facility was 37.4%. On conversion of the Facility to redeemable preference shares, the Group shares in less than its 44.4% interest of the net assets of Rand Refinery. 15.2 Mimosa Sibanye-Stillwater has a 50% interest in Mimosa Investments Limited (Mimosa), which owns and operates the Mimosa mine. The equity-accounted investment in Mimosa movement for the year is as follows: Figures in million - SA rand Balance at the beginning of the year 2,012.9 2,049.3 - Share of results of equity-accounted investee after tax 210.5 175.0 114.9 Dividends received (87.0) - - Equity-accounted investment on acquisition of subsidiaries - - 2,066.7 Foreign currency translation 356.0 (211.4) (132.3) Balance at end of the year 2,492.4 2,012.9 2,049.3 The Group’s interest in the summarised financial statements of Mimosa are: Figures in million - SA rand Revenue 3,714.9 3,375.4 2,446.4 Amortisation and depreciation (383.1) (423.4) (447.4) Interest income - 17.5 1.0 Finance expense (26.0) (20.0) (22.4) Income tax (381.8) (245.0) (185.1) Profit or loss 420.9 350.1 229.8 Other comprehensive income 712.0 72.7 (264.6) Total comprehensive income 1,132.9 422.8 (34.8) Non-current assets 4,592.3 4,007.8 4,079.0 Property, plant and equipment 4,592.3 4,007.8 4,079.0 Current assets 2,047.9 1,916.2 2,259.5 Cash and cash equivalents 184.8 281.5 191.2 Other current assets 1,863.1 1,634.7 2,068.3 Non-current liabilities (1,168.1) (993.6) (1,131.2) Non-current financial liabilities (60.7) (94.2) (141.2) Other non-current liabilities (1,107.4) (899.4) (990.0) Current liabilities (384.6) (539.1) (900.1) Current financial liabilities (377.7) (487.4) (762.2) Other current liabilities (6.9) (51.7) (137.9) Net assets (100.0%) 5,087.5 4,391.3 4,307.2 Reconciliation of the total investment in Mimosa with attributable net assets: Net assets (50.0%) 2,543.8 2,195.7 2,153.6 Reconciling items 1 (51.4) (182.8) (104.3) Total investment in Mimosa 2,492.4 2,012.9 2,049.3 1 The reconciling items include the difference between the carrying amount and fair value of the Mimosa’s identifiable assets and liabilities on acquisition less accumulated amortisation, and foreign exchange differences on translation of assets and liabilities of the foreign joint venture. In 2016, the reconciling items also included the remaining impairment of the Reserve Bank of Zimbabwe bond notes. Repatriation of funds from Zimbabwe is subject to regulatory approval in Zimbabwe. 15.3 Peregrine On 29 June 2018, Sibanye-Stillwater announced that it had entered into an Arrangement Agreement with Regulus Resources Inc. (Regulus) and a newly formed subsidiary of Regulus, Aldebaran Resources Inc. (Aldebaran), creating a strategic partnership in order to unlock value at its Altar copper-gold project in San Juan Province, Argentina (Altar Project), currently held in the US PGM operations. Under the terms of the Arrangement Agreement, Stillwater Canada LLC, an indirect, wholly-owned subsidiary of Sibanye-Stillwater (Stillwater Canada), entered into an option and joint venture agreement with Aldebaran, whereby Aldebaran has the option to earn into a maximum 80% interest in a wholly-owned subsidiary of Stillwater Canada, Peregrine Metals Limited (Peregrine) which owns the Altar Project. The consideration for Aldebaran to acquire up to an 80% interest in the Altar Project, included: · An upfront cash payment of US$15 million to Sibanye-Stillwater on closing of the Arrangement Agreement; · 19.9% of the shares of Aldebaran; and · A commitment from Aldebaran to carry the next US$30 million of spend at the Altar Project over a maximum of five years (inclusive of 2018 drilling that was conducted between February and May of this year) as an initial earn-in of a 60% interest in the Altar Project (the Initial Earn-in). Pursuant to the Arrangement Agreement, Aldebaran may also elect to earn-in an additional 20% interest in the Altar Project by spending an additional US$25 million over a three-year period following the Initial Earn-in. Peregrine was a subsidiary of Stillwater Canada. On 25 October 2018, Aldebaran issued an aggregate of 15,449,555 Aldebaran shares to Sibanye-Stillwater, representing 19.9% of the current 77,635,957 issued and outstanding Aldebaran shares, and made an upfront cash payment of US$15 million to Sibanye-Stillwater in accordance with the Arrangement Agreement. From this date, Stillwater Canada and Aldebaran act together to direct the relevant activities of and, therefore, collectively control Peregrine. As a result of loss of control, Peregrine was derecognised as a subsidiary and accounted for as an equity-accounted investment. The equity-accounted investment in Peregrine movement for the year is as follows: Figures in million - SA rand Equity-accounted investment retained on loss of control of subsidiary 956.0 - - Foreign currency translation 22.0 - - Balance at end of the year 978.0 - - The Group’s interest in the summarised financial statements of Peregrine is: Figures in million - SA rand Non-current assets 1,714.6 - - Current assets 23.9 - - Non-current liabilities (342.6) - - Current liabilities (1.3) - - Net assets/(liabilities) (100.0%) 1,394.6 - - Reconciliation of the total investment in Peregrine with attributable net assets: Net assets/(liabilities) (60%) 836.8 - - Reconciling items 1 141.2 - - Total investment in Peregrine 978.0 - - 1 The reconciling items include the difference between the carrying amount and fair value of the Peregrine’s identifiable assets and liabilities on acquisition less accumulated amortisation, and foreign exchange differences on translation of assets and liabilities of the foreign equity-accounted investment. |
INTERESTS IN JOINT OPERATIONS
INTERESTS IN JOINT OPERATIONS | 12 Months Ended |
Dec. 31, 2018 | |
INTERESTS IN JOINT OPERATIONS | |
INTERESTS IN JOINT OPERATIONS | 16. Interests in joint operations Accounting policy A joint operation is a joint arrangement in which the parties that share joint control have rights to the assets, and obligations for the liabilities, relating to the arrangement. In relation to the Group’s interests in joint operations, the following are recognised in the financial statements: · the Group’s share of the jointly controlled assets, classified according to the nature of the assets; · any liabilities that the Group has incurred; · the Group’s share of any liabilities incurred jointly with the other ventures in relation to the joint operation; · any income from the sale or use of the Group’s share of the output of the joint operation, together with the Group’s share of any expenses incurred by the joint operation; and · any expenses that the Group has incurred in respect of its interest in the joint operation. The Group’s interests in joint operations includes a 50% interest in two joint operations each referred to as the “Notarial Pooling and Sharing Agreements”. The principal activities of the joint operations are to extend the Kroondal mine over the boundary of the properties covering the Kroondal mine and expand the Marikana mine operations through mineral rights contributed by Anglo American Platinum through its subsidiary, RPM. The Group’s share of the assets, liabilities, revenue and expenses of the joint operations which are included in the consolidated financial statements is as follows: Kroondal mine Figures in million - SA rand Loss on foreign exchange differences 132.7 (94.4) (67.8) Profit before tax 677.7 175.0 90.8 Profit for the year 677.7 175.0 90.8 Non-current assets 1,115.7 1,284.0 1,296.1 Current assets 1,828.2 1,400.5 1,208.1 Current liabilities (271.3) (283.2) (288.7) Net assets (50.0%) 2,672.6 2,401.3 2,215.5 |
ENVIRONMENTAL REHABILITATION OB
ENVIRONMENTAL REHABILITATION OBLIGATION FUNDS | 12 Months Ended |
Dec. 31, 2018 | |
ENVIRONMENTAL REHABILITATION OBLIGATION FUNDS | |
ENVIRONMENTAL REHABILITATION OBLIGATION FUNDS | 17. Environmental rehabilitation obligation funds Accounting policy The Group’s rehabilitation obligation funds includes equity-linked investments that are fair valued at each reporting date. The fair value is calculated with reference to underlying equity instruments using industry valuation techniques and appropriate models. Annual contributions are made to dedicated environmental rehabilitation obligation funds to fund the estimated cost of rehabilitation during and at the end of the life of the relevant mine. The amounts contributed to these funds are included under non-current assets and are measured at fair value through profit or loss. Interest earned on monies paid to rehabilitation funds is accrued on a time proportion basis and is recorded as interest income. In addition, bank guarantees are provided for funding shortfalls of the environmental rehabilitation obligations. Figures in million - SA rand Note Balance at beginning of the year 3,492.4 3,100.5 2,413.9 Contributions 63.0 114.5 74.7 Interest income 223.5 230.4 168.2 Fair value (loss)/gain 1 (24.9) 46.5 11.1 Environmental rehabilitation obligation funds on acquisition of subsidiaries 244.7 0.5 432.6 Balance at end of the year 3,998.7 3,492.4 3,100.5 Environmental rehabilitation obligation funds comprise of the following: Restricted cash 2 633.9 483.8 352.3 Funds 3,364.8 3,008.6 2,748.2 1 The environmental rehabilitation trust fund includes equity-linked investments that are fair valued at each reporting date. 2 The funds are set aside to serve as collateral against the guarantees made to the Department of Minerals and Resources for environmental rehabilitation obligations. Fair value of environmental rehabilitation obligation funds Environmental rehabilitation obligation funds comprise interest-bearing short-term investments and the fair value of the publicly traded instruments based on quoted market values. The environmental rehabilitation obligation funds are stated at fair value based on the nature of the fund’s investments. The fair value hierarchy is as follows: Figures in million - SA rand Level 1 3,634.0 3,117.6 2,630.6 Level 2 364.7 374.8 469.9 Credit risk The Group is exposed to credit risk on the total carrying value of the investments held in the environmental rehabilitation obligation funds. The Group has reduced its exposure to credit risk by dealing and investing with a limited number of major financial institutions. |
OTHER RECEIVABLES AND OTHER PAY
OTHER RECEIVABLES AND OTHER PAYABLES | 12 Months Ended |
Dec. 31, 2018 | |
OTHER RECEIVABLES AND OTHER PAYABLES | |
OTHER RECEIVABLES AND OTHER PAYABLES | 18. Other receivables and other payables Significant accounting judgements and estimates Expected future cash flows used to determine the fair value of the other payables (namely the Deferred Payment, and rates and taxes receivable) are inherently uncertain and could materially change over time. The expected future cash flows are significantly affected by a number of factors including reserves and production estimates, together with economic factors such as the expected commodity price, currency exchange rates, and estimates of production costs, future capital expenditure and discount rates. Accounting policy Other receivables are categorised as financial assets measured at amortised cost and other payables are categorised as other financial liabilities. These assets and liabilities are initially recognised at fair value. Subsequent to initial recognition other receivables and other payables are measured at amortised cost. Reimbursements, such as rehabilitation reimbursements from other parties, are recognised as a separate asset where recovery is virtually certain. The amount recognised is limited to the amount of the provision. If the party that will make the reimbursement cannot be identified, then the reimbursement is generally not virtually certain and cannot be recognised. If the only uncertainty regarding the certainty of the amount relates to recovery, the reimbursement amount qualifies to be recognised as an asset. 18.1 Other receivables Figures in million - SA rand Right of recovery receivable 176.8 160.5 112.4 Rates and taxes receivable 106.2 105.6 82.4 Anglo American Platinum financial asset - - 469.7 Other 66.6 53.1 1.4 Total other receivables 349.6 319.2 665.9 Reconciliation of the non-current and current portion of the other receivables: Other receivables 349.6 319.2 665.9 Current portion of other receivables (35.2) (35.2) (310.6) Non-current portion of other receivables 314.4 284.0 355.3 The Anglo American Platinum financial asset movement for the year is as follows: Figures in million - SA rand Balance at the beginning of the year - 469.7 - Interest income - 42.2 6.8 Fair value loss - (467.5) - Payments received - (44.4) - Financial asset on acquisition of subsidiary - - 462.9 Balance at end of the year - - 469.7 18.2 Other payables Figures in million - SA rand Note Deferred Payment 2,205.9 2,194.7 1,577.4 Right of recovery payable 83.2 69.3 36.3 Dissenting shareholder liability 287.1 1,349.7 - Other 256.3 188.6 - Total other payables 2,832.5 3,802.3 1,613.7 Reconciliation of the non-current and current portion of the other payables: Other payables 2,832.5 3,802.3 1,613.7 Current portion of other payables (303.3) (41.9) - Non-current portion of other payables 2,529.2 3,760.4 1,613.7 Right of recovery receivable and payable Based on the first and second Notarial Pooling and Sharing agreements (PSAs) with Anglo American Platinum, Kroondal Operations Proprietary Limited (Kroondal Operations) (previously Aquarius Platinum (South Africa) Proprietary Limited (AQPSA)) holds a contractual right to recover 50% of the rehabilitation obligation relating to environmental rehabilitation resulting from PSA operations from RPM, where this rehabilitation relates to property owned by Kroondal Operations. Likewise RPM holds a contractual right to recover 50% of the rehabilitation obligation relating to environmental rehabilitation resulting from PSA operations from Kroondal Operations, where the rehabilitation relates to property owned by RPM. With respect to the opencast section of the Marikana mine that is on Kroondal Operations property, RPM have limited the contractual liability to approximately R172 million, being a negotiated liability in terms of an amendment to the second PSA. Deferred Payment In terms of the Rustenburg operation Transaction the purchase consideration includes a Deferred Payment, calculated as being equal to 35% of the distributable free cash flow generated by the Rustenburg operation over a six year period, subject to a minimum payment of R3.0 billion. In addition to the Deferred Payment, which allows for a favourable extended payment period; should the Rustenburg operation generate negative distributable free cash flows in either 2016, 2017 or 2018, RPM will be required to pay up to R267 million per annum to ensure that the free cash flow for the relevant year is equal to zero. The Deferred Payment movement for the year is as follows: Figures in million - SA rand Note Balance at the beginning of the year 2,194.7 1,577.4 - Interest charge 200.4 148.2 24.1 Payment of Deferred Payment (38.6) - - (Gain)/loss on revised estimated cash flows (150.6) 469.1 - Deferred Payment on acquisition of subsidiaries - - 1,553.3 Balance at end of the year 2,205.9 2,194.7 1,577.4 Dissenting shareholder liability Following the closing of the Stillwater Transaction on 4 May 2017, three Petitions for Appraisal of Stock were filed in the Chancery Court for the State of Delaware. The first action, captioned Blue Mountain Credit Alternatives Master Fund L.P. et al. vs. Stillwater Mining Company, Case No. 2017-0385-JTL, was filed 19 May 2017 on behalf of holders of a purported 4,219,523 shares of common stock of Stillwater. The second action, captioned Brigade Leveraged Capital Structures Fund Ltd. et al. vs. Stillwater Mining Company, Case No. 2017-0389-JTL, was filed 22 May 2017 on behalf of holders of a purported 1,200,000 shares of common stock of Stillwater. The third action, captioned Hillary Shane Revocable Trust, et al. vs. Stillwater Mining Company, Case No. 2017-0400-JTL, was filed 26 May 2017 on behalf of holders of a purported 384,000 shares of common stock of Stillwater (the Shane Petitioners). On 29 August 2017, the three actions were consolidated into a single action, captioned In re Appraisal of Stillwater Mining Company, Case No. 2017-0385-JTL. On 28 March 2018, Stillwater entered into a settlement agreement with the Shane Petitioners, providing for settlement consideration of US$18 per share, plus interest at a rate of 1.75% per annum, for a total settlement payment of US$7.0 million. The Shane Petitioners filed a motion to voluntarily dismiss their petition on 11 June 2018, which the court granted on 15 August 2018. Following settlement of the Shane Petitioners’ claim, the total number of shares of Stillwater common stock subject to appraisal is approximately 5,419,523. The appraisal action seeks a determination of the fair value of the shares of the common stock of Stillwater under Section 262 of the General Corporation Law of the State of Delaware. Petitioners seek a judgment awarding them, among other things, the fair value of their Stillwater shares plus interest. During September 2018, Stillwater made a provisional payment to the remaining dissenting shareholders of US$87.5 million. This settlement is pending the court’s determination as to fair value. A trial was held from 10 December through 13 December 2018. The parties will engage in post-trial briefing. Oral argument on the matter is currently scheduled for 18 April 2019. The court’s determination as to fair value of the shares is currently unknown. Accordingly, for accounting purposes only, we have used the merger price of US$18.00 per share in estimating our liability relating to the shares for which appraisal has been demanded, however, fair value may ultimately be determined by the court to be equal to, or different from, the merger price. The dissenting shareholder liability movement for the year is as follows: Figures in million - SA rand Note Balance at the beginning of the year 1,349.7 - - Interest charge 68.1 62.9 - Payments to dissenting shareholders (1,375.8) - - Dissenting shareholder liability on acquisition of subsidiary - 1,364.3 - Foreign currency translation reserve 245.1 (77.5) - Balance at end of the year 287.1 1,349.7 - Fair value of other receivables and other payables Other receivables and other payables are initially recognised at fair value. The non-recurring fair value measurement is a level 3 measurement as per the fair value hierarchy. The fair value of other receivables and other payables approximate the carrying value due to the short maturing of these instruments. Market risk The Deferred Payment and share-based payment on BEE transaction (refer to notes 6.3 and 6.4) is sensitive to changes in the Rustenburg operation’s 4E basket price. A one percentage point decrease in the 4E basket price would have increased the gain on financial instruments by R179.8 million. A one percentage point increase in the 4E basket price would have decreased the gain on financial instruments by R126.4 million. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2018 | |
INVENTORIES | |
INVENTORIES | 19. I nventories Accounting policy Inventory is valued at the lower of cost and net realisable value. The Group values ore stockpiles and gold-in-process when it can be reliably measured. Cost is determined on the following basis: · PGM concentrate awaiting further processing, reef ore stockpiles and gold-in-process are valued using weighted average cost. Cost includes production, amortisation, depreciation and related administration costs. · Consumable stores are valued at weighted average cost after appropriate provision for surplus and slow-moving items. Figures in million - SA rand Consumable stores 1 1,051.0 828.7 481.7 Ore stockpiles and in-process 3,322.7 1,955.9 51.8 Gold-on-hand 143.3 - 42.9 PGMs-on-hand 777.8 637.5 - Uranium finished goods and uranium-in-process - 104.4 100.4 Total inventories 5,294.8 3,526.5 676.8 1 The cost of consumable stores consumed during the year and included in operating cost amounted to R9,327.9 million (2017: R8,789.4 million and 2016: R5,243.2 million). During 2016, the Group recognised a net realisable value write down of R93.3 million on its uranium finished goods and uranium-in-process inventory, which was recognised as part of cost of sales. During 2018, the uranium finished goods and uranium-in-process was sold. |
TRADE AND OTHER RECEIVABLES
TRADE AND OTHER RECEIVABLES | 12 Months Ended |
Dec. 31, 2018 | |
TRADE AND OTHER RECEIVABLES | |
TRADE AND OTHER RECEIVABLES | 20. Trade and other receivables Accounting policy Trade and other receivables, excluding trade receivables for PGM sales, prepayments and value added tax are non-derivative financial assets categorised as financial assets measured at amortised cost. Trade and other receivables are initially recognised at fair value and subsequently carried at amortised cost less allowance for impairment. Estimates made for impairment are based on a review of all outstanding amounts at year end. Irrecoverable amounts are written off during the period in which they are identified. Trade receivables include actual invoiced sales of PGM concentrate as well as sales not yet invoiced for which deliveries have been made and the control has transferred . These receivables are financial assets measured at fair value through profit and loss. The receivable amount calculated for the PGM concentrate delivered but not yet invoiced is recorded at the fair value of the consideration receivable at the date of delivery. At each subsequent reporting date the receivable is restated to reflect the fair value movements in the pricing mechanism. Foreign exchange movements subsequent to the recognition of a sale are recognised as a foreign exchange gain or loss in profit or loss. The adoption of the new "expected credit loss" impairment model under IFRS 9, as opposed to an incurred credit loss model under IAS 39, had a negligible impact on the carrying amounts of the Group’s financial assets given the Group transacts exclusively with a limited number of large international institutions and other organisations with strong credit ratings and the negligible historical level of customer default. The PGM receivable is measured at fair value through profit or loss under IFRS 9, as the solely payments of principle and interest criteria is not met. As a result there are no changes in the measurement resulting from the adoption of IFRS 9. Figures in million - SA rand Trade receivables - gold sales 433.8 499.6 658.1 Trade receivables - PGM sales 1 5,310.1 4,512.4 4,001.9 Other trade receivables 436.6 431.4 306.5 Payroll debtors 127.9 174.1 154.7 Interest receivable 8.9 8.5 6.6 Financial assets 6,317.3 5,626.0 5,127.8 Prepayments 296.9 245.0 298.1 Value added tax 218.8 326.6 322.0 Total trade and other receivables 6,833.0 6,197.6 5,747.9 1 The PGM sales trade receivables consists of trade receivables invoiced and outstanding of R1,523.6 million and contract receivables of R3,786.5 million. Fair value of trade and other receivables The fair value for trade receivables for PGM sales are estimated based on ruling market prices, volatilities and interest rates, and constitutes level 1 on the fair value hierarchy. The fair value of trade and other receivables approximate the carrying value due to the short maturity. Credit risk The Group is exposed to credit risk on the total carrying value of trade and other receivables. Trade receivables are reviewed on a regular basis and an allowance for impairment is raised when they are not considered recoverable. Trade receivables comprise banking institutions purchasing commodities. These receivables are currently in a sound financial position and no impairment has been recognised. Receivables that are past due but not impaired total R28.4 million (2017: R9.0 million and 2016: R11.7 million). At 31 December 2018, receivables of R15.8 million (2017: R5.7 million and 2016: R2.6 million) are considered impaired and are provided for. |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 12 Months Ended |
Dec. 31, 2018 | |
CASH AND CASH EQUIVALENTS. | |
CASH AND CASH EQUIVALENTS | 21. Cash and cash equivalents Accounting policy Cash and cash equivalents comprise cash on hand, demand deposits and short-term, highly liquid investments readily convertible to known amounts of cash and subject to insignificant risk of changes in value, and are measured at amortised cost which is deemed to be fair value due to its short-term maturity. Figures in million - SA rand Cash at the bank and on hand 1 2,549.1 2,062.4 967.9 Total cash and cash equivalents 2,549.1 2,062.4 967.9 1 At 31 December 2018, restricted cash of US $6.4 million (R91.8 million) was held in a money market fund as collateral for the environmental bonding requirements in the US. Fair value of cash and cash equivalents The fair value of cash and cash equivalents approximate the carrying value due to the short maturity. Credit risk The Group is exposed to credit risk on the total carrying value of cash and cash equivalents. The Group has reduced its exposure to credit risk by dealing and investing with a number of major financial institutions. |
STATED SHARE CAPITAL
STATED SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2018 | |
STATED SHARE CAPITAL. | |
STATED SHARE CAPITAL | 22. Stated share capital Accounting policy Ordinary share capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity, net of any tax effects. Figures in thousand Authorised number of shares 10,000,000 10,000,000 2,000,000 Reconciliation of issued number of shares: Number of shares in issue at beginning of the year 2,168,721 929,004 916,140 Shares issued under SGL Share Plan 10,394 1,407 12,864 Rights issue - 1,195,787 - Capitalisation issue 87,146 42,523 - Number of shares in issue at end of the year 2,266,261 2,168,721 929,004 Authorised and issued As at 31 December 2016, the authorised share capital was 2,000,000,000 ordinary no par value shares and issued ordinary share capital was 929,004,342 ordinary no par value shares. At the shareholder’s general meeting on 25 April 2017, the authorised number of shares was increased to 10,000,000,000 ordinary no par value shares. On 14 June 2017, Sibanye-Stillwater raised net capital of R12,932.4 million, being proceeds of R13,438.5 million and transactions costs of R506.1 million, from a rights issue, when 1,195,787,294 shares were issued with nine (9) new shares issued for every seven (7) existing shares held, on 4 October 2017, 42,522,524 shares were issued with two (2) capitalisation issue shares for every 100 existing share held, and on various dates during 2017, 1,407,060 shares were issued as part of the share plans. As at 31 December 2017, the issued share capital was 2,168,721,220 ordinary no par value shares. On 11 April 2018, 87,145,885 shares were issued with four (4) capitalisation issue shares for every 100 existing share held, and on various dates during 2017, 10,393,386 shares were issued as part of the share plans. As at 31 December 2018, the issued share capital was 2,266,260,491 ordinary no par value shares. All the Sibanye-Stillwater ordinary no par value shares rank pari passu in all respects, there being no conversion or exchange rights attached thereto, and all of the ordinary shares will have equal rights to participate in capital, dividend and profit distributions by the Company. Repurchase of shares The Company has not exercised the general authority granted to buy back shares from its issued ordinary share capital granted at the shareholders’ meeting held on 30 May 2018. At the next AGM, shareholders will be asked to approve the general authority for the acquisition by the Company, or a subsidiary of the Company, of its own shares. |
NON-CONTROLLING INTERESTS
NON-CONTROLLING INTERESTS | 12 Months Ended |
Dec. 31, 2018 | |
NON-CONTROLLING INTERESTS | |
NON-CONTROLLING INTERESTS | 23. Non-controlling interests Accounting policy Non-controlling interests The Group recognises any non-controlling interest in an acquiree either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net assets on an acquisition by acquisition basis. Subsequently, the carrying amount of non-controlling interest is the amount of the interest at initial recognition plus the non-controlling interest’s subsequent share of changes in equity. Transactions with non-controlling interests The Group treats transactions with non-controlling interests as transactions with equity owners of the Group. For purchases from non-controlling interests, the difference between any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals to non-controlling interests where control is not lost are also recorded in equity. Where control is lost over a subsidiary, the gains or losses are recognised in profit or loss. The Group’s non-controlling interests relates to the following subsidiaries: Figures in million - SA rand Note Non-controlling interest of DRDGOLD 913.2 - - Non-controlling interest of Platinum Mile 18.4 15.7 14.3 Non-controlling interests of GTSM 4.4 4.1 3.4 Total non-controlling interests 936.0 19.8 17.7 |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of detailed information about borrowings [abstract] | |
Disclosure of borrowings [text block] | 24. Borrowings and derivative financial instrument Significant accounting judgements and estimates Borrowings Expected future cash flows used to determine the fair value of borrowings (namely the Burnstone Debt) are inherently uncertain and could materially change over time. They are significantly affected by a number of factors including reserves and production estimates, together with economic factors such as the expected commodity price, foreign currency exchange rates, and estimates of production costs, future capital expenditure and discount rates. Accounting policy Borrowings Borrowings are non-derivative financial liabilities categorised as other financial liabilities. Borrowings are recognised initially at fair value, net of transaction costs incurred, where applicable and subsequently measured at amortised cost using the effective interest method. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Derivative financial instruments Derivatives are initially recognised at fair value using option pricing methodologies. Any directly attributable transaction costs are recognised in profit or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value, and changes are generally recognised in profit or loss. Borrowings Figures in million - SA rand Notes US$600 million RCF 2,726.5 - - R6.0 billion RCF 5,896.4 5,536.4 5,100.0 US$350 million RCF - 1,137.1 1,369.0 2022 and 2025 Notes 9,808.7 12,597.7 - US$ Convertible Bond 4,496.6 4,357.1 - Burnstone Debt 1,145.1 1,537.5 1,752.6 Other borrowings 425.6 478.7 749.5 Franco-Nevada liability 2.0 1.7 2.7 Stillwater Convertible Debentures 3.8 3.3 - Total borrowings 24,504.7 25,649.5 8,973.8 Reconciliation of the non-current and current portion of the borrowings: Borrowings 24,504.7 25,649.5 8,973.8 Current portion of borrowings (6,188.2) (1,657.5) (752.3) Non-current portion of borrowings 18,316.5 23,992.0 8,221.5 The current portion of borrowings will be repaid out of operational cash flows or it will be refinanced by utilising available Group facilities. Derivative financial instrument Figures in million - SA rand Note Reconciliation of the non-current and current portion of the derivative financial instrument: Derivative financial instrument 408.9 1,093.5 - Non-current portion of derivative financial instrument 408.9 1,093.5 - 24.1 US$600 million RCF On 21 May 2018, Sibanye-Stillwater cancelled and refinanced the US$350 million revolving credit facility (RCF) by drawing under the US$600 million RCF. The purpose of the facility was to refinance the US$350 million RCF, finance ongoing capital expenditure and working capital. Terms of the US$600 million RCF Facility: US$600 million Interest rate: LIBOR Interest rate margin: 1.85% if net debt to adjusted EBITDA is equal to or less than 2.50x 2.00% if net debt to adjusted EBITDA is greater than 2.50x Utilisation fees: Where the total outstanding loans under the RCF fall within the range of the percentage of the total loan as set out below, Sibanye-Stillwater shall pay an utilisation fee equal to the percentage per annum set out opposite such percentage range . % of the total loans Utilisation fee Less than or equal to 33⅓% Greater than 33⅓% and less than or equal to 66⅔% Greater than 66⅔% Term of facility: Three years Borrowers: Sibanye Gold Limited, Stillwater, Kroondal Operations and Sibanye Rustenburg Platinum Mines Proprietary Limited (SRPM) Security and/or guarantors: The facility is unsecured and guaranteed by Sibanye Gold Limited, Stillwater, Kroondal Operations and SRPM. Figures in million - SA rand Balance at beginning of the year - - - Loans raised 5,391.6 - - Loans repaid (2,744.7) - - (Gain)/loss on foreign exchange differences 73.1 - - Foreign currency translation 6.5 - - Balance at end of the year 2,726.5 - - 24.2 R6.0 billion RCF On 15 November 2016, Sibanye-Stillwater cancelled and refinanced the R4.5 billion Facilities (refer to note 24.6) by drawing under the R6.0 billion RCF. The purpose of the facility was to refinance the R4.5 billion Facilities, finance ongoing capital expenditure, working capital and general corporate expenditure requirements which may include the financing of future acquisitions of business combinations. Terms of the R6.0 billion RCF Facility: R6.0 billion Interest rate: JIBAR Interest rate margin: During the Covenant adjustment period, being 30 June 2017 to 31 December 2019, the margin will be based on the following net debt to adjusted EBITDA ratios: Net debt to adjusted EBITDA ratios Margin % 0.00:1 – 3.00:1 3.00:1 – 3.25:1 3.25:1 – 3.50:1 After the covenant adjustment period the margin will return to 2.4% Term of loan: Three years Borrowers: Sibanye Gold Limited, SRPM and Kroondal Operations Security and/or guarantors: The facility is unsecured and guaranteed by Sibanye Gold Limited, SRPM and Kroondal. Figures in million - SA rand Balance at beginning of the year 5,536.4 5,100.0 - Loans raised 360.0 800.0 5,100.0 Loans repaid - (363.6) - Balance at end of the year 5,896.4 5,536.4 5,100.0 24.3 US$350 million RCF On 24 August 2015, Sibanye-Stillwater entered into a US$300 million syndicated RCF agreement. On 15 February 2016, the facility increased to US$350 million. The purpose of the facility was to finance ongoing capital expenditure, working capital and general corporate expenditure requirements which may include the financing of future acquisitions of business combinations. Terms of the US$350 million RCF Facility US$350 million RCF (2015: US$300 million RCF) Interest rate: LIBOR Interest rate margin 2% per annum Utilisation Fees Where the total outstanding loans under the RCF fall within the range of the percentage of the total loan as set out below, Sibanye-Stillwater shall pay a utilisation fee equal to the percentage per annum set out opposite such percentage range. % of the total loans Utilisation fee Less than or equal to 33⅓% Greater than 33⅓% and less than or equal to 66⅔% Greater than 66⅔% Term of loan: Three years Borrowers: Sibanye Gold Limited, SRPM and Kroondal Operations Security and/or guarantors: The facility is unsecured and guaranteed by Sibanye Gold Limited, Rand Uranium, SRPM and Kroondal. Figures in million - SA rand Balance at beginning of the year 1,137.1 1,369.0 - Loans raised 580.0 1,031.4 2,771.5 Loans repaid (1,779.6) (1,198.2) (1,211.6) Gain on foreign exchange differences 62.5 (65.1) (190.9) Balance at end of the year - 1,137.1 1,369.0 24.4 2022 and 2025 Notes The acquisition of Stillwater was financed by a US$2.65 billion bridge loan (Stillwater Bridge Facility) (refer to note 24.8). On 27 June 2017, Sibanye-Stillwater completed a two tranche international corporate bond offering the 6.125% Notes due on 27 June 2022 (the 2022 Notes) and 7.125% Notes due on 27 June 2025 (the 2025 Notes) (together the 2022 and 2025 Notes) and the proceeds of the bond offering were applied to the partial repayment of the Stillwater Bridge Facility raised for the acquisition of Stillwater. On 19 September 2018, Sibanye-Stillwater concluded the repurchase of a portion of the 2022 and 2025 Notes issued by Stillwater Mining Company. The total purchase price was approximately US$345 million (with a nominal value of US$349 million) and was funded from existing cash resources, including the US$500 million advance proceeds of the streaming transaction. As a result, a gain on early settlement of the 2022 and 2025 Notes of R128.8 million was recognised in profit or loss. Terms of the 2022 and 2025 Notes Facility: US$500 million 6.125% Senior Notes due 2022 (the 2022 Notes) US$550 million 7.125% Senior Notes due 2025 (the 2025 Notes) Outstanding nominal value: 2022 Notes: US$353.7 million 2025 Notes: US$346.9 million Interest rate: 2022 Notes: 6.125% 2025 Notes: 7.125% Term of the Notes: 2022 Notes: Five years 2025 Notes: Eight years Issuer: Stillwater Mining Company Guarantors: Each of the Notes will be fully and unconditionally guaranteed, jointly and severally by the Guarantors (Kroondal Operations, SRPM and Sibanye Gold Limited). The Guarantees will rank equally in right of payment to all existing and future senior debt of the Guarantors. Figures in million - SA rand Note Balance at beginning of the year 12,597.7 - - Loans raised - 13,109.5 - Loans repaid (5,107.4) - - Accrued interest paid (795.5) (431.5) - Interest charge 836.6 478.1 - Unwinding of amortised cost 196.7 29.7 - Gain on derecognition of borrowings (128.8) - - Foreign currency translation 2,209.4 (588.1) - Balance at end of the year 9,808.7 12,597.7 - 24.5 US$ Convertible Bond The Stillwater Bridge Facility was partially repaid through the US$1 billion rights offer, the 2022 and 2025 Notes (refer to note 24.4) and existing cash at Stillwater. The balance was repaid through the issuance of a US$ Convertible Bond. The convertible bond launched and was priced on 19 September 2017 . On 11 September 2018, Sibanye-Stillwater concluded the repurchase of a portion of the US$ Convertible Bond. An aggregate principal amount of US$66 million for a total purchase price of approximately US$50 million was repurchased. Sibanye-Stillwater funded the repurchase from existing cash resources, including the US$500 million advance proceeds of the streaming transaction (refer to note 27). Terms of the US$ Convertible Bond Issue size: US$450 million Outstanding nominal value: US$384 million Coupon: 1.875% Maturity date: 26 September 2023 (six years) Conversion premium: 35% Reference share price: US$1.2281, being the volume weighted average price of a share on the JSE from launch to pricing on 19 September 2017, converted at a fixed exchange rate. Initial conversion price: US$1.6580 Issuer: Sibanye Gold Limited Guarantors: Stillwater and Kroondal Operations (together, the Guarantors), 100% subsidiaries of Sibanye Gold Limited. The US$ Convertible Bond has two components. The option component is recognised as a derivative liability, measured at fair value, with changes in fair value recorded in profit or loss and reported separately in the statement of financial position. The bond component is recognised as a financial liability and measured at amortised cost using the effective interest rate. Convertible bond at amortised cost Figures in million - SA rand Note Balance at beginning of the year 4,357.1 - - Loans raised - 4,634.5 - Loans repaid (745.2) - - Accrued interest paid (111.7) - - Interest charge 105.9 29.8 - Unwinding of amortised cost 185.8 50.7 - Gain on derecognition of borrowings (50.9) - - Gain on foreign exchange differences 755.6 (357.9) - Balance at end of the year 4,496.6 4,357.1 - Derivative financial instrument Figures in million - SA rand Balance at beginning of the year 1,093.5 - - Gain on financial instruments (678.1) (115.9) - Gain on derecognition of derivative financial instrument (50.3) - - Derivative financial instrument recognised - 1,296.6 - Gain on foreign exchange differences 43.8 (87.2) - Balance at end of the year 408.9 1,093.5 - 24.6 R4.5 billion Facilities Sibanye-Stillwater entered into the R4.5 billion Facilities on 13 December 2013. The R4.5 billion Facilities was used to refinance the unbundling bridge loan facilities. Terms of the R4.5 billion Facilities Facility: R2.5 billion RCF R2.0 billion term loan facility (Term Loan) Interest rate: JIBAR Interest rate margin: RCF: 2.85% Term Loan: 2.75% Term of loan: Three years Repayment period: The Term Loan was repaid in equal six-monthly instalments of R250 million, with the R750 million balance and any amounts outstanding under the RCF due for settlement on final maturity, being 13 December 2016. Security and/or guarantors: The Facilities were unsecured and guaranteed by Rand Uranium and Ezulwini. Cancellation: These facilities were cancelled and repaid on 15 November 2016. Figures in million - SA rand Note Balance at beginning of the year - - 1,961.6 Loans raised - - 1,936.4 Loans repaid - - (3,900.0) Unwinding of amortised cost - - 2.0 Balance at end of the year - - - 24.7 Burnstone Debt SGEO has bank debt of US$178.1 million (R1,883.9 million) (the Burnstone Debt) outstanding as part of the net assets acquired on 1 July 2014. Terms of the Burnstone Debt Facility: A1: US$0.2 million A2: US$7.8 million A3: US$51.0 million A4: US$119.1 million Interest rate: A1 and A2: Interest free A3 and A4: Interest free until 1 July 2017, then at LIBOR Interest rate margin: A3 and A4: 4% from 1 July 2017 Term of loan: No fixed term Repayment period: A1: Repaid on 1 July 2014 A2: From 1 July 2017 the first 50% of Burnstone’s free cash flow (as defined in the settlement agreement) will be used to repay the Wits Gold Loan and the balance of 50% to repay A2. A3 and A4: On settlement of A2. 90% of Burnstone’s free cash flow will be used to repay the Wits Gold Loan and the balance of 10% to repay the Burnstone Debt. On settlement of the Wits Gold Loan and interest, 30% of Burnstone’s free cash flow will be used to repay the Burnstone Debt and the balance will be distributed to Wits Gold. The Bank Lenders will continue to participate in 10% of Burnstone’s free cash flow after the Burnstone Debt has been repaid in full to a maximum amount of US$63.0 million under a revenue participation agreement. Security: The Burnstone Debt is fully secured against the assets of Burnstone (of R2.0 billion) and there is no recourse to the Sibanye-Stillwater Group. The security package includes a cession over the bank accounts, insurance policies’ proceeds, special and general notarial bonds over movable assets and mortgage bonds over property. The Burnstone Debt facilities of US$178.1 million (R1,883.9 million) were initially recognised at the acquisition fair value using level 2 (refer to note 31) assumptions , being R1,007.6 million, in terms of IFRS 3. The expected free cash flows to repay the loan as detailed above were based on the estimates and assumptions to determine the fair value: · A US$ swap forward curve adjusted with the 4% interest rate margin above; · The annual life of mine plan that takes into account the following: - Proved and probable ore reserves of Burnstone; - Cash flows are based on the life-of-mine plan of 20 years; and - Capital expenditure estimates over the life-of-mine plan. Figures in million - SA rand Note Balance at beginning of the year 1,537.5 1,752.6 1,808.3 Accrued interest and unwinding of amortised cost 152.9 141.6 139.4 (Gain)/loss on revised estimated cash flows 1 (804.6) (181.7) 29.3 (Gain)/loss on foreign exchange differences 259.3 (175.0) (224.4) Balance at end of the year 1,145.1 1,537.5 1,752.6 1 At 31 December 2018, the expected free cash flows expected to repay the loan as detailed above were revised as a result of: • Revised proven and probable reserves; • Revised cash flows over the life of mine plan as a result of: ◦ Revised forecast costs and capital expenditure; and ◦ Revised gold prices 2018: R585,500/kg (2017: R545,000/kg and 2016: R570,000/kg) and exchange rates 2018: R14.00/US$ (2017 : R12.94/US$ and 2016: R13.68/US$). 24.8 Acquisition bridge facilities Stillwater Bridge Facility On 9 December 2016, Sibanye-Stillwater obtained a US$2.65 billion bridge facility (Stillwater Bridge Facility) to finance the purchase of Stillwater, to refinance existing indebtedness at Stillwater and to pay certain related fees, costs and expenses. Terms of the Stillwater Bridge Facilities Facility: A: US$750 million bridge to equity B: US$300 million bridge to cash C: US$1.6 billion bridge to debt Interest rate: LIBOR Interest rate margin: Months 1 - 3: 3.25% per annum Months 4 - 6: 4.25% per annum or 5.25% per annum if net debt to EBITDA > 2.0x Months 7 - 9: 5.25% per annum or 6.25% per annum if net debt to EBITDA > 2.0x Months 10 - 12: 6.25% per annum or 7.25% per annum if net debt to EBITDA > 2.0x Term of loan: Facility A and B: Earlier of nine months from completion of the Stillwater acquisition and 31 October 2017 Facility C: 364 days from completion of the Stillwater acquisition Borrowers: Sibanye Gold Limited and Thor Mergeco Inc Security and/or guarantors: The facility was unsecured and guaranteed by Sibanye Gold Limited, Thor Mergeco Inc, Kroondal Operations, Rand Uranium and SRPM. Figures in million - SA rand Loans raised - 34,000.3 - Loans repaid - (33,304.0) - Gain on foreign exchange differences - (514.5) - Foreign currency translation - (181.8) - Balance at end of the year - - - 24.9 Other borrowings Short-term credit facilities Sibanye-Stillwater has uncommitted loan facilities with various banks to fund capital expenditure and working capital requirements at its operations. These facilities have no fixed terms, are short-term in nature and interest rates are market related. Figures in million - SA rand Balance at beginning of the year 478.7 749.5 - Loans raised 10,798.6 14,721.5 7,472.6 Loans repaid (10,854.6) (14,992.3) (6,723.1) Unwinding of amortised cost 2.9 - - Balance at end of the year 425.6 478.7 749.5 24.10 Fair value of financial instruments and risk management Fair value of borrowings The fair value of borrowings approximates the carrying value as the impact of credit risk is included in the measurement of the carrying value. The fair value of the derivative financial instrument is estimated based on ruling market prices, volatilities and interest rates, option pricing methodologies based on observable quoted inputs, and constitute a level 2 instrument on the fair value hierarchy. Liquidity risk The following are contractually due, undiscounted cash flows resulting from maturities of borrowings including interest payments: Figures in million - SA rand Total Within one Between After five years 31 December 2018 Trade and other payables 5,238.4 5,238.4 - - Borrowings - Capital US$600 million RCF 2,726.5 - 2,726.5 - R6.0 billion RCF 5,896.4 5,896.4 - - 2022 and 2025 Notes 10,053.6 - 5,075.6 4,978.0 US$ Convertible Bond 5,510.4 - 5,510.4 - Burnstone Debt 2,552.9 - - 2,552.9 Franco-Nevada liability 2.0 2.0 - - Stillwater Convertible Debentures 3.8 3.8 - - Other borrowings 252.3 252.3 - - - Interest 9,386.9 1,543.8 3,568.6 4,274.5 Total 41,623.2 12,936.7 16,881.1 11,805.4 31 December 2017 Trade and other payables 4,276.4 4,276.4 - - Borrowings - Capital US$600 million RCF 5,536.4 - 5,536.4 - US$350 million RCF 1,137.1 1,137.1 - - 2022 and 2025 Notes 12,978.0 - - 12,978.0 US$ Convertible Bond 5,562.0 - - 5,562.0 Burnstone Debt 2,102.4 - 2,006.2 Other borrowings 478.7 478.7 - - Franco-Nevada liability 1.7 1.7 - - Stillwater Convertible Debentures 3.3 3.3 - - - Interest 9,231.5 1,632.3 4,672.2 2,927.0 Total 41,307.5 7,529.5 10,304.8 23,473.2 Market risk Foreign currency sensitivity Certain of the Group’s US dollar borrowing facilities have been drawn down by Companies with SA Rand as their functional currency, therefore some of the Groups borrowings are sensitive to changes in the rand/US dollar exchange rate. A one percentage point depreciation in the SA rand closing exchange rate of R14.35/US$ (2017: R12.36/US$ and 2016: R13.69/US$) would have reduced the gain on foreign exchange differences by R38.7 million (2017: R81.2 million and 2016: R31.2 million). A one percentage point appreciation in the exchange rate would have increased the gain on foreign exchange differences by R38.7 million (2017: R81.2 million and 2016: R31.2 million). Interest rate sensitivity As at 31 December 2018, the Group’s total borrowings amounted to R24,504.7 million (2017: R25,649.5 million and 2016: R8,973.8 million). The Group generally does not undertake any specific action to cover its exposure to interest rate risk, although it may do so in specific circumstances. The portion of Sibanye-Stillwater’s interest-bearing borrowings at period end that is exposed to interest rate fluctuations is R24,498.9 million (2017: R25,644.5 million and 2016: R8,971.1 million). This debt is normally rolled for periods between one and three months and is therefore exposed to the rate changes in this period. At 31 December 2018, of the total borrowings, R6,322.0 million (2017: R6,015.1 million and 2016: R5,849.5 million) is exposed to changes in the JIBAR rate and R3,871.6 million (2017: R2,674.6 million and 2016: R3,121.6 million) is exposed to changes in the LIBOR rate. The table below summarises the effect of a change in finance expense on the Group’s profit or loss had JIBAR and LIBOR differed as indicated. The analysis is based on the assumption that the applicable interest rate increased/decreased with all other variables held constant. All financial instruments with fixed interest rates that are carried at amortised cost are not subject to the interest rate sensitivity analysis. Interest rate sensitivity analysis Change in interest expenses for a change in interest rate 1 Figures in million - SA rand -1.5% -1.0% -0.5% 31 December 2018 - JIBAR 88.5 59.0 29.5 (29.5) (59.0) (88.5) - LIBOR 79.2 52.8 26.4 (26.4) (52.8) (79.2) Change in finance expense 167.7 111.8 55.9 (55.9) (111.8) (167.7) 31 December 2017 - JIBAR 83.0 55.4 27.7 (27.7) (55.4) (83.0) - LIBOR 2 49.5 33.0 16.5 (16.5) (33.0) (49.5) Change in finance expense 132.5 88.4 44.2 (44.2) (88.4) (132.5) 1 Interest rate sensitivity analysis is performed on the borrowings balance at 31 December. 2 No interest rate sensitivity analysis has been performed for a reduction in LIBOR due to LIBOR being less than 1%, a decrease in LIBOR would have no impact on the Group’s profit or loss. The exposure to interest rate changes and the contractual repricing dates The exposure of the Group’s borrowings to interest rate changes and the contractual repricing dates at the reporting dates is as follows: Figures in million - SA rand Floating rate with exposure to change in JIBAR 6,322.0 6,015.1 5,849.5 Floating rate with exposure to change in LIBOR 3,871.6 2,674.6 3,121.6 Non-current borrowings exposed to interest rate changes 10,193.6 8,689.7 8,971.1 The Group has the following undrawn borrowing facilities: Committed 5,987.1 3,652.5 4,322.5 Uncommitted 757.7 471.3 200.5 Total undrawn facilities 6,744.8 4,123.8 4,523.0 All of the above facilities have floating rates. The undrawn committed facilities have the following expiry dates: - within one year 103.6 3,188.9 - - later than one year and not later than two years - 463.6 3,422.5 - later than two years and not later than three years 5,883.5 - 900.0 Total undrawn committed facilities 5,987.1 3,652.5 4,322.5 24.11 Capital management The Group’s primary objective with regards to managing its capital is to ensure that there is sufficient capital available to support the funding requirements of the Group, including capital expenditure, in a way that: optimises the cost of capital; maximises shareholders’ returns; and ensures that the Group remains in a sound financial position. The Group manages and makes adjustments to the capital structure as and when borrowings mature or as and when funding is required. This may take the form of raising equity, market or bank debt or hybrids thereof. Opportunities in the market are also monitored closely to ensure that the most efficient funding solutions are implemented. The Group monitors capital using the ratio of net debt to adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA), but does not set absolute limits for this ratio. Net debt to adjusted EBITDA at 31 December 2018 of 2.5 exceeds the Group’s targeted ratio of net debt to adjusted EBITDA of 1.0:1 or lower. Utilising the committed unutilised debt facilities above, will impact on the leverage ratio. The borrowing facilities permit a leverage ratio of 3.5:1 through to 31 December 2019, and 2.5:1 thereafter, calculated on a quarterly basis. Sibanye-Stillwater plans to deleverage over time back to its targeted leverage ratio of no greater than 1.0:1. Figures in million - SA rand Note Borrowings 1 23,768.5 25,205.5 7,221.2 Cash and cash equivalents 2 2,499.4 2,029.8 928.4 Net debt 3 21,269.1 23,175.7 6,292.8 Adjusted EBITDA 4 8,369.4 9,045.1 10,270.4 Net debt to adjusted EBITDA (ratio) 5 2.5 2.6 0.6 1 Borrowings are only those borrowings that have recourse to Sibanye-Stillwater. Borrowings, therefore, exclude the Burnstone Debt and include the derivative financial instrument. 2 Cash and cash equivalents exclude cash of Burnstone. 3 Net debt represents borrowings and bank overdraft less cash and cash equivalents. Borrowings are only those borrowings that have recourse to Sibanye-Stillwater and therefore exclude the Burnstone Debt and include the derivative financial instrument. Net debt excludes cash of Burnstone. 4 The adjusted EBITDA calculation included is 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. 5 Net debt to adjusted EBITDA ratio is defined as net debt as at the end of a reporting period divided by adjusted EBITDA of the 12 months ended on the same reporting date . Reconciliation of (loss)/profit before royalties and tax to adjusted EBITDA: Figures in million - SA rand (Loss)/profit before royalties and tax (1,224.3) (6,981.2) 4,811.4 Adjusted for: Amortisation and depreciation 6,613.8 5,699.7 4,041.9 Interest income (482.1) (415.5) (331.4) Finance expense 3,134.7 2,971.8 903.1 Share-based payments 299.4 231.9 496.2 (Gain)/loss on financial instruments (1,704.1) 1,114.4 1,032.8 Gain on foreign exchange differences (1,169.1) (292.4) (219.6) Share of results of equity-accounted investees after tax (344.2) (291.6) (13.3) Gain on disposal of property, plant and equipment (60.2) (40.7) (95.4) Impairments 3,041.4 4,411.0 1,381.1 Gain on derecognition of borrowings and derivative financial instrument (230.0) - - Change in estimate of environmental rehabilitation obligation, and right of recovery receivable and payable (66.6) 248.9 97.5 Occupational healthcare expense 15.4 1,106.9 - Transaction costs 402.5 552.1 157.0 Restructuring costs 142.8 729.8 187.7 Gain on acquisition - - (2,178.6) Adjusted EBITDA 8,369.4 9,045.1 10,270.4 |
ENVIRONMENTAL REHABILITATION _2
ENVIRONMENTAL REHABILITATION OBLIGATION | 12 Months Ended |
Dec. 31, 2018 | |
Provision for decommissioning, restoration and rehabilitation costs [abstract] | |
ENVIRONMENTAL REHABILITATION OBLIGATION | 25. Environmental rehabilitation obligation and other provisions Significant accounting judgements and estimates The Group’s mining and exploration activities are subject to various laws and regulations governing the protection of the environment. The Group recognises management’s best estimate for asset retirement obligations in the period in which they are incurred. Actual costs incurred in future periods could differ materially from the estimates. Additionally, future changes to environmental laws and regulations, life of mine estimates and discount rates could affect the carrying amount of this provision. Accounting policy Provisions are recognised when the Group has a present obligation, legal or constructive resulting from past events and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Long-term environmental obligations are based on the Group’s environmental management plans, in compliance with applicable environmental and regulatory requirements. The estimated costs of rehabilitation are reviewed annually and adjusted as appropriate for changes in legislation, technology or other circumstances. Cost estimates are not reduced by the potential proceeds from the sale of assets or from plant clean up at closure. Based on disturbances to date, the net present value of expected rehabilitation cost estimates is recognised and provided for in full in the financial statements. The estimates are reviewed annually and are discounted using a risk-free rate that is adjusted to reflect the current market assessments of the time value of money and the risks specific to the obligation. Annual changes in the provision consist of finance costs relating to the change in the present value of the provision and inflationary increases in the provision estimate, as well as changes in estimates. Changes in estimates are capitalised or reversed against the relevant asset to the extent that it meets the definition of dismantling and removing the item and restoring the site on which it is located. Costs that relate to an existing condition caused by past operations and do not have a future economic benefit are recognised in profit or loss. If a decrease in the liability exceeds the carrying amount of the asset, the excess is recognised immediately in profit or loss. The present value of environmental disturbances created are capitalised to mining assets against an increase in the environmental rehabilitation obligation. Rehabilitation projects undertaken, included in the estimates are charged to the provision as incurred. The cost of ongoing current programmes to prevent and control environmental disturbances is charged against income as incurred. The unwinding of the discount due to the passage of time is recognised as finance cost, and the capitalised cost is amortised over the remaining lives of the mines. Figures in million - SA rand Notes Balance at beginning of the year 4,678.7 3,982.2 2,411.0 Interest charge 1 398.8 357.1 291.4 Payment of environmental rehabilitation obligation 2 (32.3) (26.9) - Change in estimates charged to profit or loss 3 (90.4) 248.9 97.5 Change in estimates capitalised 3 618.8 (177.7) 472.5 Environmental rehabilitation obligation on acquisition of subsidiaries 672.7 312.1 709.8 Foreign currency translation 47.9 (17.0) - Balance at end of the year 6,294.2 4,678.7 3,982.2 Environmental rehabilitation obligation and other provisions consists of: Environmental rehabilitation obligation 6,176.2 4,678.7 3,982.2 Other provisions 118.0 - - Environmental rehabilitation obligation and other provisions 6,294.2 4,678.7 3,982.2 1 The provision is calculated based on the discount rates of 6.2% – 9.8% (2017 : 7.2% - 9.7% and 2016: 7.8% - 9.7%). 2 The cost of ongoing current programmes to prevent and control environmental disturbances, including reclamation activities, is charged to cost of sales as incurred . 3 Changes in estimates are defined as changes in reserves and corresponding changes in life of mine, changes in discount rates, and changes in laws and regulations governing environmental matters. The Group’s mining operations are required by law to undertake rehabilitation works as part of their ongoing operations. The Group makes contributions into environmental rehabilitation obligation funds (refer to note 17) and holds guarantees to fund the estimated costs. Post closure water management liability The Group continues to monitor the potential risk of long-term Acid Mine Drainage (AMD) and other groundwater pollution issues also experienced by peer mining groups. AMD relates to the acidification and contamination of naturally occurring water resources by pyrite-bearing ore contained in underground mines and in rock dumps, tailings dams and pits on the surface. As yet, the Group has not been able to reliably determine the financial impact that AMD and ground water pollution may have on the Group, nor the timing of possible out flow. The Group, however, has a robust water conservation and demand management, compliance and closure water management strategy that aims to define and sustainably mitigate the potential risk of AMD and groundwater pollution. The Group operates a comprehensive water quality monitoring program, including bio-monitoring, as an early detection of potential AMD and groundwater pollution and has launched an initiative to understand the mining impacts on the various catchments within which the Group operates. In addition the Group leverages innovative treatment technologies and regional mine closure modelling techniques to reliably predict water quality impacts as part of long term sustainable closure solutions. The Group has provided for the studies to determine the possible obligation in the environmental rehabilitation obligation. |
OCCUPATIONAL HEALTHCARE OBLIGAT
OCCUPATIONAL HEALTHCARE OBLIGATION | 12 Months Ended |
Dec. 31, 2018 | |
OCCUPATIONAL HEALTHCARE OBLIGATION | |
OCCUPATIONAL HEALTHCARE OBLIGATION | 26. Occupational healthcare obligation Significant accounting judgements and estimates The Group recognises management’s best estimates to settle any occupational healthcare claims against the Group’s operations. The ultimate outcome of these matters remains uncertain, with a possible failure to reach a settlement or to obtain the requisite court approval for a potential settlement. The provision is consequently subject to adjustment in the future, depending on the progress of the Occupational Lung Disease Group (the Working Group) discussions, stakeholder engagements and the ongoing legal proceedings. Actual costs incurred in future periods could differ materially from the estimates. Estimates that were used in the assessment include value of benefits, required contributions, timing of payments, tracing pattern, period discount rates, period inflation rates and a 60% take-up rate. These estimates were informed by a professional opinion. Accounting policy Provisions are recognised when the Group has a present obligation, legal or constructive resulting from past events and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The estimated costs of settlement claims are reviewed at least annually and adjusted as appropriate for changes in cash flow predictions or other circumstances. Based on estimates to date, the net present value of expected settlement claims is recognised and provided for in full in the financial statements. The estimated cash flows are discounted using a risk-free rate with similar terms to the obligation to reflect the current market assessments of the time value of money. Annual changes in the provision consist of finance costs relating to the change in the present value of the provision and changes in estimates. On 3 May 2018, the Working Group, including the Group, agreed to a class action settlement with the claimants. The estimated costs were reviewed at 31 December 2018 and discounted using a risk-free rate. As a result, a change in estimate of R15.4 million was recognised in profit or loss. The ultimate outcome of these matters remains uncertain, with a possible failure to obtain the requisite final court approval for the settlement, even though the High Court granted the first leg of the approval application on 13 December 2018. This provision is consequently subject to adjustment in the future, depending on the progress of the Working Group discussions, stakeholder engagements and the ongoing legal proceedings. On 3 May 2018, the Working Group, including the Group, agreed to a class action settlement with the claimants of approximately R5 billion The estimated costs were reviewed at 31 December 2018 and discounted using a risk-free rate. As a result, a change in estimate of R15.4 million was recognised in profit or loss. The ultimate outcome of these matters remains uncertain, with a possible failure to obtain the requisite final court approval for the settlement, even though the High Court granted the first leg of the approval application on 13 December 2018. This provision is consequently subject to adjustment in the future, depending on the progress of the Working Group discussions, stakeholder engagements and the ongoing legal proceedings Figures in million - SA rand Note Balance at beginning of the year 1,153.3 - - Occupational healthcare obligation recognised - 1,077.2 - Interest charge 105.4 46.4 - Change in estimate charge to profit or loss 15.4 29.7 - Balance at the end of the year 1,274.1 1,153.3 - Reconciliation of the non-current and current portion of the occupational healthcare obligation: Occupational healthcare obligation 1,274.1 1,153.3 - Current portion of occupational healthcare obligation (109.9) (0.8) - Non-current portion of occupational healthcare obligation 1,164.2 1,152.5 - DRDGOLD is not a party to the Working Group’s mediated settlement agreement and DRDGOLD maintains the view that it is too early to consider settlement of the matter, mainly for the following reasons: · the applicants have as yet not issued and served a summons (claim) in the matter to DRDGOLD; · there is no indication of the number of potential claimants that may join the class action against the DRDGOLD respondents; and · many principles upon which legal responsibility may be founded, are required to be substantially developed by the trial court (and possibly subsequent courts of appeal) to establish liability on the bases alleged by the applicants. In light of the above there is inadequate information for DRDGOLD to determine if a sufficient legal and factual basis exists to establish liability, and to quantify such potential liability. |
DEFERRED REVENUE
DEFERRED REVENUE | 12 Months Ended |
Dec. 31, 2018 | |
Contract liabilities [abstract] | |
Deferred revenue | 27. Deferred revenue Significant accounting judgements and estimates The upfront cash deposit received from Wheaton International on the gold and palladium streaming transaction has been accounted for as a contract liability (deferred revenue) in the scope of IFRS 15. It has been determined that the contract is not a financial instrument because the contract will be satisfied through the delivery of non-financial items (i.e. gold and palladium metal credits) as part of our expected sale requirements, rather than cash or financial assets. It is the intention to satisfy the performance obligations under the streaming arrangement through the US PGM operations’ production and revenue will be recognised over the life of mine as Sibanye-Stillwater satisfies its obligation to deliver metal credits. As Sibanye-Stillwater received a portion of the consideration from Wheaton International at inception of the contract, it has been determined that the contract contains a significant financing component under IFRS 15. Sibanye-Stillwater, therefore, made a critical estimate of the discount rate that should be applied to the contract liability over the life of mine, and determined this to be 5.4%. Inputs to the model to unwind the advance received to revenue The advance received has been recognised on the statement of financial position as deferred revenue. The deferred revenue will be recognised as revenue in profit or loss as the metal credits are delivered to Wheaton International relative to the expected total amount of metal credits to be delivered over the term of the arrangement. Each period management estimates the cumulative amount of the deferred revenue obligation that has been satisfied and, therefore, recognised as revenue. Key inputs into the model are: Key input Estimate at year end Further information Estimated financing rate over life of arrangement 5.4% Refer to note 5 Life of stream 77 years The starting point for the life of mine is the approved life of mine for the US PGM operations. However, as IFRS 15 requires the constraint on revenue recognition to be considered, it is more prudent to include a portion of resources in the life of stream for the purposes of revenue recognition. This will reduce the chance of having a significant decrease in revenue recognised in the future, when the life of mine is updated to include a conversion of resources to reserves. As such, Sibanye-Stillwater management have determined that is it appropriate to include 50% of inferred resources. Key input Estimate at year end Further information Palladium entitlement percentage 4.5% The palladium entitlement percentage will be either 4.5%, 2.25% or 1% over the life of the mine, depending on whether or not the advance has been fully utilised, and a certain number of contractual ounces have been delivered (375,000 ounces for the first trigger drop down to 2.25% and 500,000oz for the second trigger drop down rate to 1%). Monthly cash percentage 18% The monthly cash payment to be received is a percentage of 18%, 16%, 14% or 10% of the market price of the metal credit delivery to Wheaton International while the advance is not fully utilised. After the advance has been fully utilised, the cash percentage is 22%, 20%, 18% or 14%. The percentage applicable depends on the investment grade of the Group and its leverage ratio. As long as Sibanye-Stillwater’s current investment grade does not downgrade, the monthly cash percentage decreases if the Group’s leverage ratio increases above 3.5:1. The balance of the ounces in the monthly delivery (i.e. 100%-18%= 82%) is then used to determine the utilisation of the deferred revenue balance. Commodity prices Five day simple average calculated the day before delivery The value of each metal credit delivery is determined in terms of the contract. Any changes to the above key inputs could significantly change the quantum of the cumulative revenue amount recognised in profit or loss. Any changes in the life of mine are accounted for prospectively as a cumulative catch-up in the year that the life of mine estimate above changes, or the inclusion of resources changes. Accounting policy The advance received is recognised as a contract liability (deferred revenue) under IFRS 15. Sibanye-Stillwater management identified a significant financing component related to its streaming arrangement resulting from the difference in the timing of the advance consideration received and when control of the metal promised to Wheaton International transfers. Interest expense on deferred revenue is recognised in finance costs. In July 2018, Sibanye-Stillwater entered into a gold and palladium supply arrangement in exchange for an upfront advance payment of US$500 million. The arrangement has been accounted for as a contract in the scope of IFRS 15 whereby the advance payment has been recorded as deferred revenue. The revenue from the advance payment is being recognised as the gold and palladium is allocated to the appropriate Wheaton International account. An interest cost, representing the significant financing component of the upfront deposit on the deferred revenue balance, is also being recognised as part of finance costs. This finance cost increases the deferred revenue balance, ultimately resulting in revenue when the deferred revenue is recognised over the life of mine. The following table summarises the changes in deferred revenue: Figures in million - SA rand Note Deferred revenue advance received 6,555.4 - - Deferred revenue recognised during the period (160.3) - - Interest charge 160.3 - - Balance at the end of the year 6,555.4 - - Reconciliation of the non-current and current portion of the deferred revenue: Deferred revenue 6,555.4 - - Current portion of deferred revenue (30.1) - - Non-current portion of deferred revenue 6,525.3 - - |
TRADE AND OTHER PAYABLES
TRADE AND OTHER PAYABLES | 12 Months Ended |
Dec. 31, 2018 | |
TRADE AND OTHER PAYABLES | |
TRADE AND OTHER PAYABLES | 28. Trade and other payables Accounting policy Trade and other payables, excluding payroll creditors and leave pay accrual are non-derivative financial liabilities categorised as other financial liabilities. Trade and other payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method. Provision is made for employee entitlement benefits accumulated as a result of employees rendering services up to the reporting date. Liabilities arising in respect of wages and salaries, annual leave and other benefits due to be settled within 12 months of the reporting date are measured at rates which are expected to be paid when the liability is settled. Termination benefits are expensed at the earlier of when the Group can no longer withdraw the offer of those benefits and when the Group recognises costs for a restructuring. If benefits are not expected to be settled wholly within 12 months of the reporting date, then they are discounted. All other employee entitlement liabilities are measured at the present value of estimated payments to be made in respect of services rendered up to reporting date. Figures in million - SA rand Trade creditors 2,200.0 1,728.1 1,121.3 Accruals and other creditors 2,952.7 2,380.6 1,971.4 Other 85.7 167.7 109.4 Financial liabilities 5,238.4 4,276.4 3,202.1 Payroll creditors 1,465.3 1,253.5 867.7 Leave pay accrual 1,152.6 1,160.5 1,110.7 Total trade and other payables 7,856.3 6,690.4 5,180.5 Fair value of trade and other payables The fair value of trade and other payables approximate the carrying value due to the short maturity. Liquidity risk Trade and other creditors are expected to be settled within 12 months from the reporting date. |
CASH GENERATED BY OPERATIONS
CASH GENERATED BY OPERATIONS | 12 Months Ended |
Dec. 31, 2018 | |
CASH GENERATED BY OPERATIONS | |
Disclosure of cash generated by operations | 29. Cash generated by operations Figures in million - SA rand Notes (Loss)/profit for the year (2,520.7) (4,433.1) 3,042.7 Royalties 212.6 398.5 566.6 Mining and income tax 1,083.8 (2,946.6) 1,202.1 Interest income (482.1) (415.5) (331.4) Finance expense 3,134.7 2,971.8 903.1 (Loss)/profit before interest, royalties and tax 1,428.3 (4,424.9) 5,383.1 Non-cash and other adjusting items: Amortisation and depreciation 6,613.8 5,699.7 4,041.9 Share-based payments 299.4 231.9 496.2 (Gain)/loss on financial instruments (1,591.3) 764.0 1,094.6 Gain on foreign exchange differences (241.3) (546.8) (418.0) Share of results of equity-accounted investees after tax (344.2) (291.6) (13.3) Impairments 3,041.4 4,411.0 1,381.1 Gain on derecognition of borrowings and derivative financial instrument 24.4, 24.5 (230.0) - - Occupational healthcare expense 15.4 1,106.9 - Gain on acquisition - - (2,178.6) Other (282.5) 147.7 49.3 Total cash generated by operations 8,709.0 7,097.9 9,836.3 |
CHANGE IN WORKING CAPITAL
CHANGE IN WORKING CAPITAL | 12 Months Ended |
Dec. 31, 2018 | |
Change In Working Capital [Abstract] | |
Change in working capital | 30. Change in working capital Figures in million - SA rand Inventories (924.8) (937.7) (35.5) Trade and other receivables (461.0) (214.9) (220.0) Trade and other payables 315.8 630.3 17.9 Total change in working capital (1,070.0) (522.3) (237.6) |
FINANCIAL INSTRUMENTS AND RISK
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2018 | |
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT | |
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT | 31. Financial instruments and risk management Accounting policy The Group initially recognises loans and receivables on the date these originate. All other financial assets (including assets designated at fair value through profit or loss) are recognised initially on trade date, which is the date that the Group becomes a party to the contractual provisions of the instrument. The Group derecognises a financial asset when the contractual rights to the cash flows in a transaction in which substantially all the risks and rewards of the ownership of the financial asset are transferred. The Group derecognises a financial liability when its contractual obligations are discharged, cancelled or expired. Any interest in such transferred financial asset that is created or retained by the Group is recognised as a separate asset or liability. The particular recognition and measurement methods adopted are disclosed in the individual policy statements associated with each item. A financial asset not classified at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset and those event(s) had an impact on the estimated future cash flows of that asset, that can be estimated reliably. Impairment losses are recognised through profit or loss. On derecognition of a financial asset or liability, the difference between the carrying amount of the asset or liability and the sum of the consideration received and cumulative gains recognised in equity is recognised in profit or loss. 31.1 Accounting classifications and measurement of fair values The following methods and assumptions were used to estimate the fair value of each class of financial instrument: · Trade and other receivables/payables, and cash and cash equivalents The carrying amounts approximate fair values due to the short maturity of these instruments. · Investments and environmental rehabilitation obligation funds The fair value of publicly traded instruments is based on quoted market values. The environmental rehabilitation obligation funds are stated at fair value based on the nature of the funds’ investments. · Borrowings The fair value of borrowings approximates its carrying amounts as the impact of credit risk is included in the measurement of carrying amounts. · Financial instruments The fair value of financial instruments is estimated based on ruling market prices, volatilities and interest rates. All derivatives are carried on the statement of financial position at fair value. The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments: · Level 1: unadjusted quoted prices in active markets for identical asset or liabilities; · Level 2: inputs other than quoted prices in level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices); and · Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). In the normal course of its operations, the Group is exposed to market risks, including commodity price, foreign currency, interest rate, liquidity and credit risk associated with underlying assets, liabilities and anticipated transactions. In order to manage these risks, the Group has developed a comprehensive risk management process to facilitate control and monitoring of these risks. 31.2 Risk management activities Controlling and managing risk in the Group Sibanye-Stillwater has policies in areas such as counterparty exposure, hedging practices and prudential limits which have been approved by Sibanye-Stillwater’s Board of Directors (the Board). Management of financial risk is centralised at Sibanye-Stillwater's treasury department (Treasury), which acts as the interface between Sibanye-Stillwater’s Operations and counterparty banks. Treasury manages financial risk in accordance with the policies and procedures established by the Board and executive committee. The Board has approved dealing limits for money market, foreign exchange and commodity transactions, which Treasury is required to adhere to. Among other restrictions, these limits describe which instruments may be traded and demarcate open position limits for each category as well as indicating counterparty credit-related limits. The dealing exposure and limits are checked and controlled each day and reported to the CFO. The objective of Treasury is to manage all financial risks arising from the Group’s business activities in order to protect profit and cash flows. Treasury activities of Sibanye-Stillwater and its subsidiaries are guided by the Treasury Policy, the Treasury Framework as well as domestic and international financial market regulations. Treasury activities are currently performed within the Treasury Framework with appropriate resolutions from the Board, which are reviewed and approved annually by the Audit Committee. The financial risk management objectives of the Group are defined as follows: · Liquidity risk management: the objective is to ensure that the Group is able to meet its short-term commitments through the effective and efficient management of cash and usage of credit facilities. · Currency risk management: the objective is to maximise the Group’s profits by minimising currency fluctuations. · Funding risk management: the objective is to meet funding requirements timeously and at competitive rates by adopting reliable liquidity management procedures. · Investment risk management: the objective is to achieve optimal returns on surplus funds. · Interest rate risk management: the objective is to identify opportunities to prudently manage interest rate exposures. · Counterparty exposure: the objective is to only deal with approved counterparts that are of a sound financial standing and who have an official credit rating. The Group is limited to a maximum investment of 2.5% of the financial institutions’ equity, which is dependent on the institutions’ credit rating. The credit rating used is Fitch Ratings’ short-term credit rating for financial institutions. · Commodity price risk management: commodity risk management takes place within limits and with counterparts as approved in the treasury framework. Credit risk Credit risk represents risk that an entity will suffer a financial loss due to the other party of a financial instrument not discharging its obligation. The Group has reduced its exposure to credit risk by dealing with a number of counterparties. The Group approves these counterparties according to its risk management policy and ensures that they are of good credit quality. The carrying value of the financial assets represents the combined maximum credit risk exposure of the Group. Concentration of credit risk on cash and cash equivalents and non-current assets is considered minimal due to the abovementioned investment risk management and counterparty exposure risk management policies, as discussed in note 20. Liquidity risk In the ordinary course of business, the Group receives cash proceeds from its operations and is required to fund working capital and capital expenditure requirements. The cash is managed to ensure surplus funds are invested to maximise returns whilst ensuring that capital is safeguarded to the maximum extent possible by investing only with top financial institutions. Uncommitted borrowing facilities are maintained with several banking counterparties to meet the Group’s normal and contingency funding requirements. For additional disclosures, refer to note 24. Working capital and going concern assessment For the year ended 31 December 2018, the Group incurred a loss of R2,520.7 million (31 December 2017: R4,433.1 million). As at 31 December 2018 the Group’s current assets exceeded its current liabilities by R562.7 million (31 December 2017: R3,566.7 million) and during the year then ended the Group generated cash from operating activities of R12,197.2 million (31 December 2017: R2,740.7 million). The Group’s cash generated from operating activities during the year ended 31 December 2018 includes the R6,555.4 million (US$500 million) advance proceeds of the streaming transaction (refer to note 27). Gold and PGMs are sold in US dollars, and while the majority of the gold operations costs and a substantial amount of the SA PGM operations costs are denominated in rand, the Group’s results and financial condition will be impacted if there is a material change in the rand/US dollar exchange rate. On 21 November 2018, AMCU, one of Sibanye-Stillwater’s unions, initiated a strike action at the gold operations. The AMCU union members are still not reporting for work in terms of a protected strike. The gold operations have continued during this period to produce approximately 40% of planned production and have implemented procedures to reduce operating cost during the strike action. It is unclear when employees will return to work and when the operations will return to full production. The gold operations have as a result operated at, and could continue to operate at, an adjusted EBITDA and cash flow loss during this period. While the PGM operations have to date generated sufficient cash flow to mostly mitigate the cash flow impacts of the strike action, the impact of the adjusted EBITDA losses from the gold operations will have a negative impact on future reported adjusted EBITDA and future reported covenant ratios. With effect from 1 January 2019, in line with our mine to market strategy for the PGM operations, the offtake contract between the Rustenburg operation and Anglo American Platinum changed from a “Sale and Purchase of Concentrate” agreement to a tolling agreement. This means that Anglo American Platinum will no longer purchase concentrate from the Rustenburg operation on delivery of the concentrate, but will rather return the 4E refined metals to the Rustenburg operation approximately four months after delivery of the concentrate. Sibanye-Stillwater will then sell the refined metals in the market. The impact on future cash flows is not material, as Anglo American Platinum in terms of the previous Purchase of Concentrate agreement will continue to pay for the concentrate delivered up to December 2018 during quarter ending 31 March 2019. The change, however, will result in no adjusted EBITDA reported for the 4E metals produced by the Rustenburg operation during the quarter ending 31 March 2019. This will have a negative impact on the future 12 months rolling adjusted EBITDA and future covenant ratios for the Group, until quarter ending 31 March 2020. Sibanye-Stillwater’s leverage ratio (net debt to adjusted EBITDA) at 31 December 2018 is 2.5. The US$600 million RCF and the R6.0 billion RCF (together RCFs), permit a leverage ratio of at most 3.5:1 through to 31 December 2019, and thereafter 2.5:1, calculated on a quarterly basis. Sibanye-Stillwater’s interest coverage ratio (or adjusted EBITDA to net finance charges) at 31 December 2018 is 4.9:1. The RCFs require an interest coverage ratio of at least 4.0:1 calculated on a quarterly basis. In order to accommodate a potential breach in covenant ratios resulting from the impact of the gold operations strike and the Rustenburg operation contract change occurring in the same period, a temporary covenant amendment allowing for no covenant measurements for the quarter ending 31 March 2019 has been requested from and approved by the lenders. At this time, management believe that the covenant ratio levels agreed will be complied with for the quarter ending 30 June 2019 and onwards. Sibanye-Stillwater will continue to monitor and ensure compliance with the covenants, as well as maintain sufficient committed undrawn debt facilities to ensure satisfactory liquidity for the Group. The Group currently has committed undrawn debt facilities of R5,987.1 million at 31 December 2018 (2017: R3,652.5 million) following the US$250 million upsizing of the US dollar RCF in 2018. In order to maintain adequate liquidity, the refinancing of the R6.0 billion RCF, maturing on 15 November 2019, will be initiated during the first half of 2019. Utilising debt facilities may have a negative impact on the leverage ratio if drawn to fund operating losses. Consistent with its long-term strategy, Sibanye-Stillwater intends to deleverage, over time to its targeted leverage ratio of 1:1. The Group is considering increasing operational flexibility by adjusting mine plans, reducing capital expenditure and/or selling assets. A consultation process in terms of Section 189A was launched on 14 February 2019. The Group may also, if necessary, consider options to increase funding flexibility which may include, among others, streaming facilities, prepayment facilities, facility restructuring or, in the event that other options are not deemed preferable or achievable by the Board, an equity capital raise. This gives management the operational and financing flexibility to continue to manage the operations and capital structure to ensure compliance with debt covenants. The Lonmin plc (Lonmin) transaction (refer to note 35) may be completed during the quarter ending 30 June 2019. Management believe Lonmin has sufficient liquidity and will not have a negative impact on Sibanye-Stillwater’s debt levels post acquisition. Furthermore, management believe that Lonmin will contribute positively to consolidated adjusted EBITDA which will have a positive impact on Sibanye-Stillwater covenant levels post acquisition. The directors believe that the cash generated by its operations, cash on hand, the committed unutilised debt facilities as well as additional funding opportunities will enable the Group to continue to meet its obligations as they fall due. The consolidated financial statements for the year ended 31 December 2018, therefore, have been prepared on a going concern basis. Market risk The Group is exposed to market risks, including foreign currency, commodity price and interest rate risk associated with underlying assets, liabilities and anticipated transactions. Following periodic evaluation of these exposures, the Group may enter into derivative financial instruments to manage some of these exposures. The effects of reasonable possible changes of relevant risk variables on profit or loss or shareholders’ equity are determined by relating the reasonable possible change in the risk variable to the balance of financial instruments at period end date. The amounts generated from the sensitivity analyses are forward-looking estimates of market risks assuming certain adverse or favourable market conditions occur. Actual results in the future may differ materially from those projected results and therefore should not be considered a projection of likely future events and gains/losses. Foreign currency risk Sibanye-Stillwater’s operations are all located in South Africa except for Stillwater and Mimosa, which are located in the US and Zimbabwe, respectively, and its revenues are sensitive to changes in the US dollar gold price and the rand/US dollar exchange rate (the exchange rate). Depreciation of the rand against the US dollar results in Sibanye-Stillwater’s revenues and operating margin increasing. Conversely, should the rand appreciate against the US dollar, revenues and operating margins would decrease. The impact on profitability of any change in the exchange rate can be substantial. Furthermore, the exchange rates obtained when converting US dollars to rand are set by foreign exchange markets over which Sibanye-Stillwater has no control. The relationship between currencies and commodities, which includes the gold price, is complex and changes in exchange rates can influence commodity prices and vice versa. In the ordinary course of business, the Group enters into transactions, such as gold sales and PGM sales, denominated in foreign currencies, primarily US dollar. Although this exposes the Group to transaction and translation exposure from fluctuations in foreign currency exchange rates, the Group does not generally hedge this exposure, although it could be considered for significant expenditures based in foreign currency or those items which have long lead times to produce or deliver. Also, the Group on occasion undertakes currency hedging to take advantage of favourable short-term fluctuations in exchange rates when management believes exchange rates are at unsustainably high levels. Currency risk only exists on account of financial instruments being denominated in a currency that is not the functional currency and being of a monetary nature. This includes but is not limited to US$600 million RCF (refer to note 24.1), US$350 million RCF (refer to note 24.3), US$ Convertible Bond (refer to note 24.5), Burnstone Debt (refer to note 24.7) and Franco-Nevada liability. For additional disclosures, refer to notes 3 and 24. Foreign currency economic hedging experience During May 2017, the Group entered into a forward exchange contract to acquire US$779.1 million at R13.23/US$ on 15 June 2017 with the proceeds of the rights offer (refer to note 22) to partially repay the Stillwater Bridge facility (refer to note 24.8). The exchange rate on 15 June 2017 was R12.89/US$ and the Group recognised a loss on financial instruments of R283.2 million. During 2018 and 2016, no forward cover was taken out to cover various commitments of Sibanye-Stillwater’s operations. As at 31 December 2018, Sibanye-Stillwater had the following foreign currency contract positions: · US$12.1 million at a weighted average rate of R14.11/US$. As at 31 December 2017 and 2016, there no material foreign currency contract positions. As of 26 March 2019, Sibanye-Stillwater had the following foreign currency positions: · US$14.0 million at a weighted average rate of R14.36/US$. Commodity price risk The market price of commodities has a significant effect on the results of operations of the Group and the ability of the Group to pay dividends and undertake capital expenditures. The gold and PGM basket prices has historically fluctuated widely and is affected by numerous industry factors over which the Group does not have any control. The aggregate effect of these factors on the gold and PGM basket prices, all of which are beyond the control of the Group, is impossible for the Group to predict. For additional disclosures, refer to note 18. Commodity price hedging policy As a general rule, the Group does not enter into forward sales, derivatives or other hedging arrangements to establish a price in advance for future gold and PGM production. Commodity hedging could, however, be considered in future under one or more of the following circumstances: to protect cash flows at times of significant capital expenditure; financing projects or to safeguard the viability of higher cost operations. To the extent that it enters into commodity hedging arrangements, the Group seeks to use different counterparty banks consisting of local and international banks to spread risk. None of the counterparties is affiliated with, or related to parties of the Group. Commodity price hedging experience At 31 December 2018, Sibanye-Stillwater had the following gold commodity price hedges outstanding: · a total of 229,623oz at an average floor price of R17,615/oz (R566,335/kg) and capped price of R18,524/oz (R595,560/kg). Commodity price contract position As of 31 December 2018, 2017 and 2016, Sibanye-Stillwater had no outstanding commodity price contracts. Interest rate risk The Group’s income and operating cash flows are dependent of changes in market interest rates. The Group’s interest rate risk arises from long-term borrowings. For additional disclosures, refer to note 24. |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Dec. 31, 2018 | |
COMMITMENTS | |
COMMITMENTS | 32. Commitments Figures in million - SA rand Capital expenditure Authorised 4,411.7 5,397.3 3,757.4 Kloof 970.2 1,200.8 1,256.0 Driefontein 830.9 724.5 780.4 Beatrix 218.0 210.1 130.0 Cooke 195.5 195.5 207.2 Burnstone 40.4 445.9 704.0 Kroondal 131.6 69.8 260.7 Platinum Mile 72.3 72.3 5.0 Rustenburg operation 1,830.0 2,478.3 413.0 Other 122.8 0.1 1.1 Contracted for 281.8 346.6 321.2 Other guarantees 266.7 266.7 55.5 Commitments will be funded from internal sources and to the extent necessary from borrowings. This expenditure primarily relates to hostel upgrades, mining activities and infrastructure. |
CONTINGENT LIABILITIES
CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
CONTINGENT LIABILITIES | |
CONTINGENT LIABILITIES | 33. C ontingent liabilities Significant accounting judgements and estimates Contingencies can be either possible assets or possible liabilities arising from past events which, by their nature, will only be resolved when one or more future events not wholly within the control of the Group occur or fail to occur or for contingent liabilities where a present obligation arising from a past event exists but is not recognised because either it is not probable that an out-flow of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be determined with sufficient reliability. The assessment of such contingencies inherently involves the exercise of significant judgement and estimates of the outcome of future events. Dissenting shareholders For disclosure of the dissenting shareholders contingent liability, refer to note 18.2. Purported class action lawsuits Two purported class action lawsuits have been filed against Sibanye Gold Limited (Sibanye-Stillwater), Neal Froneman and Charl Keyter (collectively the Defendants) in the US District Court for the Eastern District of New York, alleging violations of the US securities laws. The first lawsuit, Case No. 18-cv-03721, was filed on 27 June 2018 by Kevin Brandel, individually and on behalf of all other persons who purchased Sibanye-Stillwater securities between 7 April 2017 and 26 June 2018, inclusive (the Class Period). The second lawsuit, Case No. 18-cv-03902, was filed on 6 July 2018 by Lester Heuschen, Jr., also individually and on behalf of members of the Class Period (collectively, the Class Actions). The Class Actions allege that certain statements by Sibanye-Stillwater in its annual reports filed with the US Securities and Exchange Commission were false and/or misleading. Specifically, the Class Actions allege that Sibanye-Stillwater made false and/or misleading statements about its safety practices and record and thereby violated the US securities laws. The Class Actions seek an unspecific amount of damages. The two lawsuits were consolidated into a single action, and lead plaintiff and lead counsel were appointed by the court, on 17 December 2018. Lead plaintiffs must file a consolidated amended complaint by 1 April 2019, and the Defendants must file an answer or otherwise request a pre-motion conference (which is procedurally required by the Court’s rules before a motion to dismiss may be filed (by16 May 2019). As the cases are still in the early stages, it is not possible to determine the likelihood of success on the merits or any potential liability from the Class Actions nor estimate the duration of the litigation. Sibanye-Stillwater intends to defend the cases vigorously . |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2018 | |
RELATED-PARTY TRANSACTIONS | |
RELATED-PARTY TRANSACTIONS | 34. Related-party transactions Sibanye-Stillwater entered into related-party transactions with Rand Refinery, and its subsidiaries during the year as detailed below. The transactions with these related parties are generally conducted with terms comparable to transactions with third parties, however in certain circumstances such as related-party loans, the transactions were not at arm’s length. Rand Refinery Rand Refinery, in which Sibanye-Stillwater holds a 44.4% interest, has an agreement with the Group whereby it refines all the Group’s gold production. No dividends were received during the years ended 31 December 2018, 2017 and 2016. For the year ended 31 December 2018, the group sold gold, paid refining fees to Rand Refinery and received interest. The table below details the transactions and balances between the Group and its related-parties: Figures in million - SA rand Note Rand Refinery Gold sales 616.2 - - Refining fees paid (29.1) (32.5) (44.4) Interest income - 40.2 Loan receivable - - 403.9 Key management remuneration The executive directors and prescribed officers were paid the following remuneration during the year: Figures in thousands - SA rand Salary Cash bonus accrued for 2018 paid in 2019 Accrual of Forfeitable Share awards and Conditional Share proceeds Pension scheme total contributions Expense allowance and other benefits Executive directors Neal Froneman 1 11,722 8,619 14,177 993 249 35,760 52,656 Charl Keyter 6,033 4,237 6,521 862 44 17,697 23,440 Prescribed officers - Chris Bateman 2 7,944 4,160 2,773 291 1,717 16,885 7,269 Shadwick Bessit 3 336 176 117 59 - 688 - Hartley Dikgale 3,560 2,022 2,919 260 - 8,761 11,768 Dawie Mostert 3,674 2,352 3,585 501 - 10,112 12,044 Themba Nkosi 3,648 2,009 1,339 269 - 7,265 6,869 Wayne Robinson 4,330 2,440 3,804 351 - 10,925 9,268 Richard Stewart 3,774 2,500 6,293 419 - 12,986 11,288 Robert van Niekerk 4,868 3,221 4,878 541 - 13,508 17,424 Total 49,889 31,736 46,406 4,546 2,010 134,587 152,026 Remuneration may differ from that presented in the Integrated Annual Report 2018. 1 Entered into a dual service contract with effect 1 May 2018. Remuneration paid in US dollars was converted at the average exchange rate of R13.87/US$ for the eight months ended 31 December 2018. 2 Remuneration paid in US dollars was converted at the average exchange rate of R13.24/US$ for the year ended 31 December 2018. The other (cash) benefit represents the contracted payout of benefits arising from the treatment of unvested share-based remuneration in respect of the Stillwater Mining Company share plan, which comprised shares granted in the form of time-based restricted stock unit awards and performance-based restricted stock unit awards. In accordance with the change of control provisions of the Stillwater Mining Company share plan, on the acquisition of Stillwater Mining Company by Sibanye-Stillwater all shares (i.e. time-based restricted stock unit awards and performance-based restricted stock unit awards) were converted to a cash settlement at US$18/share with phased payments. No further performance criteria were to be applied with settlement subject to the prescribed officer remaining in the employment of Sibanye-Stillwater at 31 December to qualify for the payment. The final tranche is payable at 31 December 2019. 3 Appointed as prescribed officer 1 December 2018. The non-executive directors were paid the foll owing fees during the year: Figures in thousands - SA rand Directors fees Committee fees Expense allowance Tim Cumming 954 589 155 1,698 1,428 Savannah Danson 953 528 - 1,480 745 Barry Davison 953 696 - 1,649 1,555 Rick Menell 954 742 27 1,723 1,610 Sello Moloko 1,802 - - 1,802 1,725 Nkosemntu Nika 922 513 - 1,435 1,285 Keith Rayner 954 695 74 1,723 1,545 Sue van der Merwe 954 536 - 1,491 1,223 Jerry Vilakazi 945 344 - 1,289 1,224 Total 9,392 4,643 257 14,291 12,340 The directors’ and prescribed officers’ share ownership at 31 December 2018 was: Number of shares % Executive directors Neal Froneman 1 4,555,954 3,342,087 0.20 0.15 Charl Keyter 1 1,530,119 1,212,745 0.07 0.06 Non-executive directors Tim Cumming 1 106 102 - - Barry Davison 1 1,567,710 1,507,414 0.07 0.07 Rick Menell 1 108,625 104,448 - - Sello Moloko 1 111,534 107,245 - - Keith Rayner 1 68,992 66,339 - - Sue van der Merwe 1 1,028 988 - - Total share ownership by directors 7,944,068 6,341,368 Prescribed officers Chris Bateman 1 32,747 - - - Shadwick Bessit 1 219,782 - 0.01 - Hartley Dikgale 1 114,744 292,785 0.01 0.01 Dawie Mostert 1 50,743 - - - Themba Nkosi 1 19,107 18,370 - - Wayne Robinson 1 39,321 346 - - Richard Stewart 1 421,653 102,971 0.02 - Robert van Niekerk 1 271,537 176,266 0.01 0.01 Total 9,113,702 6,932,106 1 Share ownership at the date of this report is unchanged. None of the directors’ immediate families or associates held any direct shareholding in Sibanye-Stillwater’s issued share capital. |
EVENTS AFTER REPORTING DATE
EVENTS AFTER REPORTING DATE | 12 Months Ended |
Dec. 31, 2018 | |
EVENTS AFTER REPORTING DATE | |
EVENTS AFTER REPORTING DATE | 35. Events after reporting date There were no events that could have a material impact on the financial results of the Group after 31 December 2018, other than those disclosed below. Lonmin acquisition On 14 December 2017, Sibanye-Stillwater announced that it had reached agreement with Lonmin on the terms of a recommended all-share offer to acquire the entire issued and to be issued ordinary share capital of Lonmin (the Lonmin Acquisition). It is proposed that the Lonmin Acquisition will be effected by means of a scheme of arrangement between Lonmin and the Lonmin Shareholders under Part 26 of the UK Companies Act. Under the terms of the Lonmin Acquisition, each Lonmin Shareholder will be entitled to receive: 0.967 new Sibanye-Stillwater shares for each Lonmin share. On 15 May 2018, Sibanye-Stillwater received South African Reserve Bank approval for the proposed acquisition of Lonmin and on 28 June 2018, the proposed Lonmin transaction was unconditionally cleared by the UK Competition and Markets Authority. On 21 November 2018, Sibanye-Stillwater announced that the Competition Tribunal has approved the proposed acquisition of Lonmin, subject to specific conditions. In addition to the conditions agreed between Sibanye-Stillwater and the Competition Commission, a further condition has been imposed by the Competition Tribunal, namely a moratorium on retrenchments at the Lonmin operations for a period of six months from the implementation date. On 19 December 2018, Sibanye-Stillwater and Lonmin announced that the Association of Mineworkers and Construction Union had filed an appeal with the Competition Appeal Court of South Africa (the CAC) against the South African Competition Tribunal’s decision of 21 November 2018 to approve the Offer subject to certain specific conditions. In light of the appeal before the CAC, Sibanye-Stillwater and Lonmin have agreed, with the consent of the Panel, to extend the longstop date for the scheme to become unconditional and effective from 28 February 2019 to 30 June 2019. Section 189A consultations On 14 February 2019, Sibanye-Stillwater entered into consultation with relevant stakeholders in terms of Section 189A, regarding the possible restructuring of its gold operations and associated services, pursuant to ongoing financial losses experienced at the Beatrix 1 and Driefontein 2,6,7,8 shafts during 2018. The initiation of a Section 189A consultation process follows numerous initiatives to contain losses at these operations, which have thus far proven to be unsuccessful. Through a formal Section 189A consultation process, the Company and affected stakeholders will together consider measures to avoid and mitigate possible retrenchments and seek alternatives to the potential cessation or downscaling of operations at the affected shafts. Debt covenants A temporary covenant amendment allowing for no covenant measurements for the quarter ending 31 March 2019 has been requested from and approved by the lenders. US PGM operations’ deferred tax The US PGM operations’ precious metals supply agreement was due for renegotiation, with the existing agreements expiring during the course of 2019. In March 2019, management successfully concluded a three year renegotiation of the contract. Management is in the process of assessing the economic impact of these changes for 2019, particularly around its trading activities, which now encompass the state of Pennsylvania. These changes will result in a favourable impact on the US region’s deferred tax liability, and the impact of these changes will be provided in the condensed consolidated interim financial statements for the six months ending 30 June 2019. |
ACCOUNTING POLICY (Policies)
ACCOUNTING POLICY (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
ACCOUNTING POLICY | |
Basis of preparation | Basis of preparation The consolidated financial statements for the year ended 31 December 2018 have been prepared on a going concern basis in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board, the South African Institute of Chartered Accountants Financial Reporting Guides issued by the Accounting Practices Committee and Financial Reporting Pronouncements issued by the Financial Reporting Standards Council, as well as the requirements of the South African Companies Act and JSE Listings Requirements. The consolidated financial statements have been prepared under the historical cost convention, except for financial assets and financial liabilities (including derivative instruments) which are measured at fair value through profit or loss or other comprehensive income. Standards, interpretations and amendments to published standards effective for the year ended 31 December 2018 During the financial year, the following new and revised accounting standards and amendments to standards became effective and had no significant impact on the Group’s financial statements: Pronouncement Details of amendments Effective date 1 IFRS 2 Share-based payment (Amendment) Classification and Measurement of Share-based Payment Transactions: A collection of three distinct narrow-scope amendments dealing with classification and measurement of share-based payments. The amendments address: the effects of vesting conditions on the measurement of a cash-settled share-based payment; the accounting requirements for a modification to the terms and conditions of a share-based payment that changes the classification of the transaction from cash-settled to equity-settled; and the classification of share-based payment transactions with net settlement features. 1 January 2018 IAS 28 Investments in Associates and Joint Ventures (Amendment) Annual Improvements 2014-2016 Cycle Clarification that a venture capital organisation, or a mutual fund, unit trust and similar entities may elect, at initial recognition, to measure investments in an associate or joint venture at fair value through profit or loss separately for each associate or joint venture. 1 January 2018 Pronouncement Details of amendments Effective date 1 IFRIC 22 Foreign Currency Transactions and Advance Consideration This interpretation addresses the exchange rate to use in transactions that involve advance consideration paid or received in a foreign currency. 1 January 2018 1 Effective date refers to annual period beginning on or after said date During the financial year, the following new accounting standards became effective and had an impact on the financial statements: Pronouncement Details of amendments Effective date 1 IFRS 9 Financial Instruments (New standard) IFRS 9 arises from a three-part project to replace IAS 39 Financial Instruments: Recognition and Measurement . IFRS 9 addresses the classification, measurement and derecognition of financial assets and financial liabilities, introduces new rules for hedge accounting, and a new impairment model for financial assets. On 1 January 2018, the Group adopted IFRS 9, which replaces the provisions of IAS 39 that relate to the recognition, classification and measurement of financial assets and financial liabilities, derecognition of financial instruments, impairment of financial assets and hedge accounting. On adoption, the mark-to-market valuation recognised in the consolidated statement of other comprehensive income remains recognised in the consolidated statement of other comprehensive income, but will not be reclassified to profit or loss in future. The Group designated its equity securities as financial assets at fair value through other comprehensive income (OCI), which will be recorded initially at fair value. Subsequent changes in fair value will be recognised in OCI only and will not be reclassified to profit or loss on derecognition. As a result of this change, there was no impact to the Group’s financial statements. The adoption of the new “expected credit loss” impairment model under IFRS 9, as opposed to an incurred credit loss model under IAS 39, had a negligible impact on the carrying amounts of the Group’s financial assets given the Group transacts exclusively with a limited number of large international institutions and other organisations with strong credit ratings and the negligible historical level of customer default. The Group does not apply hedge accounting and the new rules for hedge accounting also have no impact. The impacts have been applied to the disclosure of the Group’s financial instruments. 1 January 2018 IFRS 15 Revenue from Contracts with Customers (New standard) IFRS 15 supersedes the previous revenue recognition guidance including IAS 18 Revenue , IAS 11 Construction Contracts and the related interpretation. IFRS 15 establishes a single comprehensive five-step model to account for revenue arising from contracts with customers and is based on the core principle that revenue is recognised when control of a good or service transfers to a customer. On 1 January 2018, the Group adopted IFRS 15, which requires that revenue from contracts with customers be recognised upon the transfer of control over goods or services to the customer. The recognition of revenue upon transfer of control to the customer is consistent with the revenue recognition policy as set out in the consolidated financial statements for the year ended 31 December 2017, as the condition is generally satisfied when title transfers to the customer. As such, on adoption, this requirement under IFRS 15 resulted in no impact to the Group’s financial statements as the timing of revenue recognition on sales is unchanged. 1 January 2018 1 Effective date refers to annual period beginning on or after said date Standards, interpretations and amendments to published standards which are not yet effective Certain new standards, amendments and interpretations to existing standards have been published that apply to the Group’s accounting periods beginning on or after 1 January 2019 but have not been early adopted by the Group. The standards, amendments and interpretations that are applicable to the Group are: Pronouncement Details of amendments and estimated impact Effective date 1 IFRS 3 Business Combinations (Amendment) 2 Annual Improvements 2015-2017 Cycle Clarification that when an entity obtains control of a business that is a joint operation, it is required to remeasure previously held interests in that business. 1 January 2019 IFRS 9 Financial instruments (Amendment) 2 Prepayment Features with Negative Compensation The narrow-scope amendment allows companies to measure particular prepayable financial assets with negative compensation at amortised cost or at fair value through other comprehensive income if a specified condition is met. 1 January 2019 IFRS 11 Disclosure of Interest in Other Entities (Amendment) 2 Annual Improvements 2015-2017 Cycle Clarification that when an entity obtains joint control of a business that is a joint operation, the entity does not remeasure previously held interests in that business. 1 January 2019 IFRS 16 Leases (New standard) IFRS 16 replaces the previous lease standard IAS 17 Leases and related interpretations. IFRS 16 has one model for lessees which will result in almost all leases being recognised on balance sheet as the distinction between operating and finance leases is removed. The only exceptions are short-term and low-value leases. At the commencement date of a lease, a lessee will recognise a liability to make lease payments (i.e. the lease liability) and an asset representing the right to use the underlying asset during the lease term (i.e. the right-of-use asset). Lessees also will be required to remeasure the lease liability upon the occurrence of certain events (e.g. a change in the lease term, a change in future lease payments resulting from a change in an index or rate used to determine those payments). The lessee will generally recognise the amount of the remeasurement of the lease liability as an adjustment to the right-of-use asset. The Group has developed a full implementation plan to determine the impact on the financial statements and internal controls. In 2017, the Group formed an IFRS 16 project team to begin the process of assessing the impact of the leases standard. The project team developed its project plan, established a steering committee, identified key stakeholders, completed high level education sessions and began the process to gather more information (through the use of interviews and questionnaires) with respect to the population of procurement contracts. The Group will use the modified retrospective approach of adoption resulting in no restatement of prior year comparatives. The quantitative impact of adopting IFRS 16 will be provided in the condensed consolidated interim financial statements for the six months ending 30 June 2019 as the Group is determining the incremental borrowing rate of the identified contracts. The Group has elected to apply the available exemptions as permitted by IFRS 16 to recognise a lease expense on a straight line basis for short-term leases (lease term of 12 months or less) and low value assets. The Group has also elected to apply the practical expedient for leases which term ends within 12 months of the date of initial application which will be accounted for in the same way as short-term leases. Upon the adoption of IFRS 16, the Group expects to recognise additional right of use assets and lease liabilities. The Group expects an increase in amortisation and depreciation and finance expense, a decrease in cost of sales before amortisation and depreciation, and an increase in cash flow from operating activities as these lease payments will be recognised as financing outflows in the statement of cash flows. 1 January 2019 IAS 1 Presentation of Financial Statements (Amendment) 2 The amendments clarify and align the definition of ‘material’ and provide guidance to help improve consistency in the application of that concept whenever it is used in IFRS. 1 January 2020 IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors (Amendment) 2 The amendments clarify and align the definition of ‘material’ and provide guidance to help improve consistency in the application of that concept whenever it is used in IFRS Standards. 1 January 2020 IAS 12 Income Taxes (Amendment) 2 Annual Improvements 2015-2017 Cycle Clarification that all income tax consequences of dividends should be recognised in profit or loss, regardless how the tax arises. 1 January 2019 IAS 19 Employee Benefits (Amendment) 2 Plan Amendment, Curtailment or Settlement The amendments require an entity to use the updated assumptions from a remeasurement net defined benefit liability or asset resulting from a plan amendment, curtailment or settlement to determine current service cost and net interest for the remainder of the reporting period after the change to the plan. 1 January 2019 IAS 23 Borrowing Costs (Amendment) 2 Annual Improvements 2015-2017 Cycle The amendments clarify that if any specific borrowing remains outstanding after the related asset is ready for its intended use or sale, that borrowing becomes part of the funds that an entity borrows generally when calculating the capitalisation rate on general borrowings. 1 January 2019 IAS 28 Investments in Associates and Joint Ventures (Amendment) 2 Long-term interest in Associates and Joint Ventures Clarification provided that an entity should apply IFRS 9 to long-term interests in an associate or joint venture that form part of the net investment in the associate or joint venture but to which the equity method is not applied. 1 January 2019 IFRIC 23 Uncertainty over Income Tax Treatments 2 The interpretation specifies how an entity should reflect the effects of uncertainties in accounting for income taxes. 1 January 2019 1 Effective date refers to annual period beginning on or after said date 2 No impact Significant accounting judgements and estimates The preparation of the financial statements requires the Group’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The determination of estimates requires the exercise of judgement based on various assumptions and other factors such as historical experience, current and expected economic conditions, and in some cases valuation techniques. Actual results could differ from those estimates. For significant accounting policies that are subject to significant judgement, estimates and assumptions, see the following notes to the consolidated financial statements: Significant accounting policy Note to the consolidated financial statements Revenue 3 – Revenue Royalties, mining and income tax, and deferred tax 9 – Royalties, mining and income tax, and deferred tax Property, plant and equipment 12 – Property, plant and equipment Business combinations 13 – Acquisitions Goodwill 14 – Goodwill Equity-accounted investments 15 – Equity accounted investments Other receivables and other payables 18 – Other receivables and other payables Borrowings 24 – Borrowings and derivative financial instrument Environmental rehabilitation obligation 25 – Environmental rehabilitation obligation and other provisions Occupational healthcare obligation 26 – Occupational healthcare obligation Deferred revenue 27 – Deferred revenue Contingent liabilities 33 – Contingent liabilities Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the financial period are discussed under the relevant note of the item affected. |
Consolidation | 1.3 Consolidation 1 The non-controlling interests in the statement of changes in equity relates to the attributable share of accumulated profits of DRDGOLD Limited (DRDGOLD), the Newshelf 1114 Proprietary Limited (Newshelf 1114) group, Goldfields Technical Security Management Proprietary Limited (GTSM) and Platinum Mile Resources Proprietary Limited (Platinum Mile) (refer to note 23). 2 Witwatersrand Consolidated Gold Resources Proprietary Limited (Wits Gold) has ceded and pledged its shares in K2013164354 Proprietary Limited (K2013) (a dormant entity) and K2013 has ceded and pledged it shares in Sibanye Gold Eastern Operations Proprietary Limited (SGEO) in favour of the lenders of the Burnstone Debt (refer to note 24.7). 3 Rand Uranium Proprietary Limited (Rand Uranium) and Ezulwini Mining Company Proprietary Limited (Ezulwini) together own a number of underground and surface mining operations. These operations report to the Group’s chief operating decision maker (the Executive Committee) as a separate segment, namely Cooke. 4 In terms of the Rustenburg operation Transaction, a 26% stake in Sibanye Rustenburg Platinum Mines Proprietary Limited (SRPM) was acquired through Newshelf 1335 Proprietary Limited (BBBEE SPV). The shareholders of BBBEE SPV are Rustenburg Mine Employees Trust (30.4%), Rustenburg Mine Community Development Trust (24.8%) Bakgatla-Ba-Kgafela Investment Holdings (24.8%) and Siyanda Resources Proprietary Limited (20.0%). The Rustenburg Mine Employees Trust and the Rustenburg Mine Community Development Trust are controlled and consolidated by Sibanye-Stillwater. 5 The Group has no current or contractual obligation to provide financial support to any of its structured entities. Subsidiaries Subsidiaries are all entities over which the Group exercises control. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are consolidated from the date on which control is obtained by the Group until the date on which control ceases. Although the Group owns less than half of DRDGOLD and has less than half of DRDGOLD’s voting power, management has determined that the Group controls the entity. The Group controls DRDGOLD as a result of an option to subscribe for a sufficient number of DRDGOLD ordinary shares to attain a 50.1% shareholding in DRDGOLD at a 10% discount to the 30 day volume weighted average traded price, which is considered substantive. Inter-company transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. Transactions with shareholders of Sibanye-Stillwater Transactions with owners in the capacity as equity participants are not recognised in profit or loss, but instead are recognised in equity with a corresponding change in assets or liabilities. |
Functional and presentation currency | Functional and presentation currency Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the functional currency). The consolidated financial statements are presented in South African rand, which is the Group’s presentation currency. |
Transactions and balances and foreign operations | Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities are translated into the functional currency at each reporting date . Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies, are recognised in profit or loss. Foreign operations The results and financial position of all the Group entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows: · Assets and liabilities are translated at the exchange rate ruling at the reporting date. Equity items are translated at historical rates. The income and expenses are translated at the average exchange rate for the year, unless this average was not a reasonable approximation of the rates prevailing on the transaction dates, in which case these items were translated at the rate prevailing on the date of the transaction. Exchange differences on translation are accounted for in other comprehensive income. These differences will be recognised in profit or loss upon realisation of the underlying operation. · On consolidation, exchange differences arising from the translation of the net investment in foreign operations (i.e. the reporting entity’s interest in the net assets of that operation), and of borrowings are taken to other comprehensive income. When a foreign operation is sold, exchange differences that were recorded in other comprehensive income are recognised in profit or loss as part of the gain or loss on disposal. If the Group disposes of part of its interest in a subsidiary but retains control, then the relevant proportion of the cumulative amount is reattributed to non-controlling interests. When the Group disposes of only part of an associate or joint venture while retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss. · Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and are translated at each reporting date at the closing rate. |
Comparatives | 1.5 Comparatives Where necessary comparative periods may be adjusted to conform to changes in presentation. |
Segment reporting | Accounting policy Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker and is based on individual mining operations. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the executive management team that makes strategic decisions. |
Revenue | Accounting policy Revenue from mining activities Revenue is recognised to the extent that it is probable that economic benefits will flow to the Group and the amount of revenue can be reliably measured. Revenue from gold sales is measured and recognised based on the consideration specified in a contract with a customer. The Group recognises revenue from gold sales when it transfers control of the gold to the customer. These criteria are typically met when the gold is delivered to the refinery. The price of gold is determined by market forces. Revenue from PGM concentrate and metal sales is recognised when control of the mine product is passed to the buyer pursuant to a sales contract. The sales price is determined on a provisional basis at the date of delivery. Adjustments to the sale price occur based on movements in the metal market price, metal content quantities and penalties, which represent variable transaction price components, up to the date of final pricing. Final pricing is based on the monthly average market price in the month of settlement. The period between provisional invoicing and final pricing is typically between two and four months. Revenue on provisionally priced sales is initially recorded at the estimated fair value of the consideration receivable. The revenue adjustment mechanism embedded within provisionally priced sales arrangements has the characteristics of a commodity derivative. Accordingly, the fair value of the final sales price adjustment is re-estimated continuously and changes in fair value recognised as an adjustment to revenue in profit or loss and trade receivables in the statement of financial position. In all cases, fair value is determined with reference to estimated forward prices using consensus forecasts. Revenue from PGM recycling consists of the sales of recycled palladium, platinum and rhodium derived from spent catalytic material. Revenue from PGM recycling revenue also includes revenue from toll processing, which is recognised at the time the contained metals are returned to the supplier at a third party refinery. Streaming revenue In 2018, Wheaton Precious Metals International Limited (Wheaton International) and Sibanye-Stillwater entered into a streaming transaction. 100% of refined mined gold and 4.5% of refined mined palladium from the Stillwater operations will be delivered to Wheaton International over the life of mine of the US PGM operations. Each ounce is identified as a separate performance obligation. In exchange for this, Wheaton International paid Sibanye-Stillwater R6,555.4 million (US$500.0 million) on 25 July 2018. In addition to the advance payment, Wheaton International currently pays Sibanye-Stillwater 18% cash based on the value of gold and palladium deliveries each month (refer to note 27 for additional detail of the monthly cash percentage). The contract will be settled by Sibanye-Stillwater delivering metal credits to Wheaton International representing underlying refined, mined gold and palladium. The transaction price, being the advance payment and the cash payment to be received, is recognised as revenue each month when the metal credit is allocated to the appropriate Wheaton International account. It is from this date that Wheaton International has effectively accepted the metal, has physical control of the metal and has the risk and reward of the metal (i.e. control has transferred). Revenue will be recognised over the life of mine of the US PGM operations. To the extent that the life of mine changes or other key inputs are changed (refer to the significant accounting judgements and estimates section above), these changes are recognised prospectively as a cumulative catch-up in revenue in the year that the life of mine is changed. |
Short-term employee benefits | Short-term employee benefits Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be reliably estimated. |
Pension and provident funds | Pension and provident funds The Group operates a defined contribution retirement plan and contributes to a number of industry-based defined contribution retirement plans. The retirement plans are funded by payments from employees and Group companies. Contributions to defined contribution funds are expensed as incurred. |
Finance expense | Accounting policy Finance expense comprises interest on borrowings, environmental rehabilitation obligation, occupational healthcare obligation and Deferred Payment and offset by borrowing costs capitalised on qualifying assets. Interest payable on borrowings is recognised in profit or loss over the term of the borrowings using the effective interest method. Cash flows from interest paid are classified under operating activities in the statement of cash flows. |
Share-based payments | Accounting policy The Group operates an equity-settled compensation plan in which certain employees of the Group participate. The fair value of the equity-settled instruments is measured by reference to the fair value of the equity instrument granted. Fair value is based on market prices of the equity-settled instruments granted, if available, taking into account the terms and conditions upon which those equity-settled instruments were granted. Fair value of equity-settled instruments granted is estimated using appropriate valuation models and appropriate assumptions at the grant date. Non-market vesting conditions (service period prior to vesting) are not taken into account when estimating the fair value of the equity-settled instruments at grant date. Market conditions are taken into account in determining the fair value at grant date. The grant date fair value of the equity-settled instruments is recognised as an employee benefit expense over the vesting period based on the Group’s estimate of the number of instruments that will eventually vest, with a corresponding increase in the share-based payment reserve. Vesting assumptions for non-market conditions are reviewed at each reporting date to ensure they reflect current expectations. The Group also operates a cash-settled compensation plan in which certain employees of the Group participate. In terms of the Rustenburg operation acquisition, the Group issued cash-settled instruments to black economic empowerment (BEE) shareholders. The grant date fair value of the cash-settled instruments is equal to the value of the equity-settled instrument granted on the same grant date. The grant date fair value of the cash-settled instruments is recognised as an employee benefit expense or share-based payment on the BEE transaction over the vesting period based on the Group’s estimate of the number of instruments that will eventually vest, with a corresponding increase in the share-based payment obligation. At each reporting date the obligation is remeasured to the fair value of the instrument, to reflect the potential outflow of cash resources to settle the liability, with a corresponding adjustment to gain or loss on financial instrument in profit or loss. Vesting assumptions for non-market conditions are reviewed at each reporting date to ensure they reflect current expectations. Where the terms of an equity-settled or a cash-settled award are modified, the originally determined expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any modification, which increases the total fair value of the share-based payment arrangement, or is otherwise beneficial to the participant as measured at the date of the modification. |
Income taxes | Accounting policy Income tax comprises current and deferred tax. Current tax and deferred tax is recognised in profit or loss except to the extent that it relates to a business combination, or items recognised directly in equity or in other comprehensive income. Current tax is measured on taxable income at the applicable statutory rate enacted or substantively enacted at the reporting date. Deferred tax is provided on temporary differences existing at each reporting date between the tax values of assets and liabilities and their carrying amounts. Substantively enacted tax rates are used to determine future anticipated effective tax rates which in turn are used in the determination of deferred tax. Deferred tax is not recognised for: · temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss; · temporary differences related to investments in subsidiaries, and interest in associates and joint ventures to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that these will not reverse in the foreseeable future; and · taxable temporary differences arising on the initial recognition of goodwill. These temporary differences are expected to result in taxable or deductible amounts in determining taxable profits for future periods when the carrying amount of the asset is recovered or the liability is settled. The principal temporary differences arise from depreciation of property, plant and equipment, provisions, unutilised capital allowances and tax losses carried forward. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and relate to taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously. Deferred tax assets relating to the carry forward of unutilised tax losses and/or unutilised capital allowances are recognised to the extent it is probable that future taxable profit will be available against which the unutilised tax losses and/or unutilised capital allowances can be recovered. Deferred tax assets are reviewed at each reporting date and are adjusted if recovery is no longer probable. |
Earnings per share | Accounting policy Headline EPS is calculated by dividing the headline earnings attributable to owners of Sibanye-Stillwater by the weighted average number of ordinary shares in issue during the year. |
Dividends | Accounting policy Dividends are recognised as a liability on the date on which such dividends are declared. Dividends withholding tax is a tax on shareholders receiving dividends and is applicable to all dividends paid. The Group withholds dividend tax on behalf of its shareholders at a rate of 20% on dividends paid. Amounts withheld are not recognised as part of the Group’s tax charge but rather as part of the dividend paid, recognised in equity. Cash flows from dividends paid are classified under operating activities in the statement of cash flows. |
Property, plant and equipment | Accounting policy Mineral and surface rights Mineral and surface rights are recorded at cost less accumulated amortisation and accumulated impairment losses. When there is little likelihood of a mineral right being exploited, or the carrying amount has exceeded its recoverable amount, impairment is recognised in profit or loss in the year that such determination is made. Mine development and infrastructure Mining assets, including mine development and infrastructure costs and mine plant facilities, are recorded at cost less accumulated depreciation and accumulated impairment losses. These costs which include the purchase price of assets used in the construction of the mine, expenditure incurred to evaluate and develop new ore bodies, to define mineralisation in existing ore bodies and to establish or expand productive capacity, are capitalised until commercial levels of production are achieved, at which times the costs are amortised as set out below. Development of ore bodies includes the development of shaft systems and waste rock removal that allows access to reserves that are economically recoverable in the future. Subsequent to this, costs are capitalised if the criteria for recognition as an asset are met. Access to individual ore bodies exploited by the Group is limited to the time span of the respective mining leases. Land Land is shown at cost and is not depreciated. Other assets Non-mining assets are recorded at cost less accumulated depreciation and accumulated impairment losses. These assets include the assets of the mining operations not included in mine development and infrastructure, borrowing costs, mineral and surface rights, land and all the assets of the non-mining operations. Amortisation and depreciation of mining assets Amortisation and depreciation is determined to give a fair and systematic charge in profit or loss taking into account the nature of a particular ore body and the method of mining that ore body. To achieve this, the following calculation methods are used: · Mining assets, including mine development and infrastructure costs, mine plant facilities and evaluation costs, are amortised over the life of the mine using the units-of-production method, based on estimated proved and probable Mineral Reserves above infrastructure. · Proved and probable Mineral Reserves reflect estimated quantities of economically recoverable reserves, which can be recovered in future from known mineral deposits. · Certain mining plant and equipment included in mine development and infrastructure is depreciated on a straight-line basis over their estimated useful lives. · For certain shafts, which have a short life and/or are marginal, the depreciation is accelerated based on an adjustment to the reserves for accounting purposes. Depreciation of non-mining assets Non-mining assets are recorded at cost and depreciated on a straight-line basis over their current expected useful lives to their residual values as follows: · Vehicles: 5 years · Computers: 3 years · Furniture and equipment: 1 - 10 years The assets’ useful lives, depreciation methods and residual values are reassessed at each reporting date and adjusted if appropriate. Impairment Recoverability of the carrying values of long-term assets or CGUs of the Group are reviewed whenever events or changes in circumstances indicate that such carrying value may not be recoverable. To determine whether a long-term asset or CGU may be impaired, the higher of value in use (defined as: the present value of future cash flows expected to be derived from an asset or CGU) or fair value less costs to sell (defined as: the price that would be received to sell an asset in an orderly transaction between market participants at the measured rate, less the costs of disposal) is compared to the carrying value of the asset/unit. A CGU is defined by the Group as the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. Generally for the Group this represents an individual operating mine, including mines which are part of a larger mine complex. The costs attributable to individual shafts of a mine are impaired if the shaft is closed. Impairment losses are recognised in profit or loss. Impairment recognised in respect of a CGU is allocated first to goodwill to that particular CGU and thereafter to the individual assets in the CGU. When any infrastructure is closed down or placed on care and maintenance during the year, any carrying value attributable to that infrastructure is impaired. Expenditure incurred on care and maintenance is recognised in profit or loss. When the review of the events or changes in circumstances of an asset or CGU that was previously impaired indicate that such historical carrying value is recoverable, the impairment is reversed. The impairment is only reversed to such an amount that the new carrying amount does not exceed the historical carrying amount. Reversal of impairment losses are recognised in profit or loss. Reversal of impairment recognised in respect of a CGU is allocated to the individual assets in the CGU. Derecognition of property, plant and equipment Property, plant and equipment is derecognised on disposal or closure of a shaft when no future economic benefits are expected from its use or disposal. Any gain or loss on derecognition of an item of property, plant and equipment (calculated as the net proceeds from disposal and the carrying amount of the item) is recognised in profit or loss. Exploration and evaluation expenditure All exploration and evaluation expenditure, prior to obtaining the legal rights to explore a specific area, is recognised in profit or loss. After the legal rights to explore are obtained, exploration and evaluation expenditure, comprising the costs of acquiring prospecting rights and directly attributable exploration expenditure, is capitalised as a separate class of property, plant and equipment or intangible assets, on a project-by-project basis, pending determination of the technical feasibility and commercial viability. The technical feasibility and commercial viability of extracting a mineral resource is generally considered to be determinable through a feasibility study and when proven reserves are determinable to exist. Upon determination of proven reserves, exploration and evaluation assets attributable to those reserves are first tested for impairment and then reclassified from exploration and evaluation assets to another appropriate class of property, plant and equipment. Subsequently, all cost directly incurred to prepare an identified mineral asset for production is capitalised to mine development assets. Amortisation of these assets commences once these assets are available for use, which is expected to be when the mine is in commercial production. These assets will be measured at cost less accumulated amortisation and impairment losses. |
Business combinations | Accounting policy Business combinations The acquisition method of accounting is used to account for business combinations by the Group. The consideration transferred for the acquisition of a business is the fair value of the assets transferred, the liabilities incurred and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Any contingent consideration is measured at fair value at the date of acquisition. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. On an acquisition-by-acquisition basis, the Group recognises any non-controlling interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net assets. Subsequently, the carrying amount of non-controlling interest is the amount of the interest at initial recognition plus the non-controlling interest’s share of the subsequent changes in equity, plus or minus changes in the portion of interest of the equity of the subsidiary not attributable, directly or indirectly, to Sibanye-Stillwater shareholders. The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired is recorded as goodwill. If this is less than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the difference is a gain recognised directly in profit or loss. |
Goodwill | Accounting policy Goodwill is stated at cost less accumulated impairment losses. In accordance with the provisions of IAS 36 Impairment of Assets, the Group performs its annual impairment review of goodwill at each financial year end or whenever there are impairment indicators to establish whether there is any indication of impairment to goodwill. A write-down is made if the carrying amount exceeds the recoverable amount. The recoverable amount is determined by reference to “fair value less costs to sell” being the higher of “value in use” and “fair value less cost to sell”, based on the cash flows over the life of the CGUs and discounted to present value at an appropriate discount rate. Impairment losses on goodwill are not reversed. Gains and losses on the disposal of an entity include the carrying amount of goodwill allocated to the entity sold. Goodwill is allocated to CGUs for the purpose of impairment testing. The allocation is made to those CGUs or groups of CGUs that are expected to benefit from the business combination in which the goodwill arose. |
Equity-accounted investments | Accounting policy The Group’s interest in equity-accounted investees comprise interests in associates and joint ventures. Associates are those entities in which the Group has significant influence, but not control or joint control, over the financial and operating policies. Joint ventures are arrangements in which the Group has joint control, whereby the Group has rights to the net assets of the arrangement, rather than rights to its assets and obligations for it liabilities. Interests in associates and joint ventures are accounted for using the equity method. The interests are initially recognised at cost using the same principles as with business combinations. Subsequent to initial recognition, the consolidated financial statements include the Group’s share of profit or loss and other comprehensive income of equity-accounted investees until the date on which significant influence or joint control ceases. Results of associates and joint ventures are equity-accounted using the results of their most recent audited annual financial statements or unaudited management accounts. Any losses from associates are brought to account in the consolidated financial statements until the interest in such associates is written down to zero. The interest includes any long-term interests that in substance, form part of the entity’s net investment in the equity-accounted investee, for example long-term receivables for which settlement is neither planned nor likely to occur in the foreseeable future. Thereafter, losses are accounted for only insofar as the Group is committed to providing financial support to such associates. The carrying value of an equity-accounted investment represents the cost of the investment, including goodwill, the proportionate share of the post-acquisition retained earnings and losses, any other movements in reserves, any impairment losses and loans to or from the equity-accounted investee. The carrying value together with any long-term interests that in substance form part of the net investment in the equity-accounted investee is assessed annually for existence of indicators of impairment and if such exist, the carrying amount is compared to the recoverable amount, being the higher of value in use or fair value less costs to sell. If an impairment in value has occurred, it is recognised in the period in which the impairment arose. Indicators of impairment include a significant or prolonged decline in the investments fair value below its carrying value. |
Interests in joint operations | Accounting policy A joint operation is a joint arrangement in which the parties that share joint control have rights to the assets, and obligations for the liabilities, relating to the arrangement. In relation to the Group’s interests in joint operations, the following are recognised in the financial statements: · the Group’s share of the jointly controlled assets, classified according to the nature of the assets; · any liabilities that the Group has incurred; · the Group’s share of any liabilities incurred jointly with the other ventures in relation to the joint operation; · any income from the sale or use of the Group’s share of the output of the joint operation, together with the Group’s share of any expenses incurred by the joint operation; and · any expenses that the Group has incurred in respect of its interest in the joint operation. |
Environmental rehabilitation obligation funds | Accounting policy The Group’s rehabilitation obligation funds includes equity-linked investments that are fair valued at each reporting date. The fair value is calculated with reference to underlying equity instruments using industry valuation techniques and appropriate models. Annual contributions are made to dedicated environmental rehabilitation obligation funds to fund the estimated cost of rehabilitation during and at the end of the life of the relevant mine. The amounts contributed to these funds are included under non-current assets and are measured at fair value through profit or loss. Interest earned on monies paid to rehabilitation funds is accrued on a time proportion basis and is recorded as interest income. In addition, bank guarantees are provided for funding shortfalls of the environmental rehabilitation obligations. |
Other receivables and other payables | Accounting policy Other receivables are categorised as financial assets measured at amortised cost and other payables are categorised as other financial liabilities. These assets and liabilities are initially recognised at fair value. Subsequent to initial recognition other receivables and other payables are measured at amortised cost. Reimbursements, such as rehabilitation reimbursements from other parties, are recognised as a separate asset where recovery is virtually certain. The amount recognised is limited to the amount of the provision. If the party that will make the reimbursement cannot be identified, then the reimbursement is generally not virtually certain and cannot be recognised. If the only uncertainty regarding the certainty of the amount relates to recovery, the reimbursement amount qualifies to be recognised as an asset. |
Inventories | Accounting policy Inventory is valued at the lower of cost and net realisable value. The Group values ore stockpiles and gold-in-process when it can be reliably measured. Cost is determined on the following basis: · PGM concentrate awaiting further processing, reef ore stockpiles and gold-in-process are valued using weighted average cost. Cost includes production, amortisation, depreciation and related administration costs. · Consumable stores are valued at weighted average cost after appropriate provision for surplus and slow-moving items. |
Trade and other receivables | Accounting policy Trade and other receivables, excluding trade receivables for PGM sales, prepayments and value added tax are non-derivative financial assets categorised as financial assets measured at amortised cost. Trade and other receivables are initially recognised at fair value and subsequently carried at amortised cost less allowance for impairment. Estimates made for impairment are based on a review of all outstanding amounts at year end. Irrecoverable amounts are written off during the period in which they are identified. Trade receivables include actual invoiced sales of PGM concentrate as well as sales not yet invoiced for which deliveries have been made and the control has transferred . These receivables are financial assets measured at fair value through profit and loss. The receivable amount calculated for the PGM concentrate delivered but not yet invoiced is recorded at the fair value of the consideration receivable at the date of delivery. At each subsequent reporting date the receivable is restated to reflect the fair value movements in the pricing mechanism. Foreign exchange movements subsequent to the recognition of a sale are recognised as a foreign exchange gain or loss in profit or loss. The adoption of the new "expected credit loss" impairment model under IFRS 9, as opposed to an incurred credit loss model under IAS 39, had a negligible impact on the carrying amounts of the Group’s financial assets given the Group transacts exclusively with a limited number of large international institutions and other organisations with strong credit ratings and the negligible historical level of customer default. The PGM receivable is measured at fair value through profit or loss under IFRS 9, as the solely payments of principle and interest criteria is not met. As a result there are no changes in the measurement resulting from the adoption of IFRS 9. |
Cash and cash equivalents | Accounting policy Cash and cash equivalents comprise cash on hand, demand deposits and short-term, highly liquid investments readily convertible to known amounts of cash and subject to insignificant risk of changes in value, and are measured at amortised cost which is deemed to be fair value due to its short-term maturity. |
Stated share capital | Accounting policy Ordinary share capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity, net of any tax effects. |
Non-controlling interests | Accounting policy Non-controlling interests The Group recognises any non-controlling interest in an acquiree either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net assets on an acquisition by acquisition basis. Subsequently, the carrying amount of non-controlling interest is the amount of the interest at initial recognition plus the non-controlling interest’s subsequent share of changes in equity. Transactions with non-controlling interests The Group treats transactions with non-controlling interests as transactions with equity owners of the Group. For purchases from non-controlling interests, the difference between any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals to non-controlling interests where control is not lost are also recorded in equity. Where control is lost over a subsidiary, the gains or losses are recognised in profit or loss. |
Borrowings | Accounting policy Borrowings Borrowings are non-derivative financial liabilities categorised as other financial liabilities. Borrowings are recognised initially at fair value, net of transaction costs incurred, where applicable and subsequently measured at amortised cost using the effective interest method. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Derivative financial instruments Derivatives are initially recognised at fair value using option pricing methodologies. Any directly attributable transaction costs are recognised in profit or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value, and changes are generally recognised in profit or loss. |
Environmental rehabilitation obligation | Accounting policy Provisions are recognised when the Group has a present obligation, legal or constructive resulting from past events and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Long-term environmental obligations are based on the Group’s environmental management plans, in compliance with applicable environmental and regulatory requirements. The estimated costs of rehabilitation are reviewed annually and adjusted as appropriate for changes in legislation, technology or other circumstances. Cost estimates are not reduced by the potential proceeds from the sale of assets or from plant clean up at closure. Based on disturbances to date, the net present value of expected rehabilitation cost estimates is recognised and provided for in full in the financial statements. The estimates are reviewed annually and are discounted using a risk-free rate that is adjusted to reflect the current market assessments of the time value of money and the risks specific to the obligation. Annual changes in the provision consist of finance costs relating to the change in the present value of the provision and inflationary increases in the provision estimate, as well as changes in estimates. Changes in estimates are capitalised or reversed against the relevant asset to the extent that it meets the definition of dismantling and removing the item and restoring the site on which it is located. Costs that relate to an existing condition caused by past operations and do not have a future economic benefit are recognised in profit or loss. If a decrease in the liability exceeds the carrying amount of the asset, the excess is recognised immediately in profit or loss. The present value of environmental disturbances created are capitalised to mining assets against an increase in the environmental rehabilitation obligation. Rehabilitation projects undertaken, included in the estimates are charged to the provision as incurred. The cost of ongoing current programmes to prevent and control environmental disturbances is charged against income as incurred. The unwinding of the discount due to the passage of time is recognised as finance cost, and the capitalised cost is amortised over the remaining lives of the mines. |
Occupational healthcare obligation | Accounting policy Provisions are recognised when the Group has a present obligation, legal or constructive resulting from past events and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The estimated costs of settlement claims are reviewed at least annually and adjusted as appropriate for changes in cash flow predictions or other circumstances. Based on estimates to date, the net present value of expected settlement claims is recognised and provided for in full in the financial statements. The estimated cash flows are discounted using a risk-free rate with similar terms to the obligation to reflect the current market assessments of the time value of money. Annual changes in the provision consist of finance costs relating to the change in the present value of the provision and changes in estimates. |
Deferred revenue | Accounting policy The advance received is recognised as a contract liability (deferred revenue) under IFRS 15. Sibanye-Stillwater management identified a significant financing component related to its streaming arrangement resulting from the difference in the timing of the advance consideration received and when control of the metal promised to Wheaton International transfers. Interest expense on deferred revenue is recognised in finance costs. |
Trade and other payables | Accounting policy Trade and other payables, excluding payroll creditors and leave pay accrual are non-derivative financial liabilities categorised as other financial liabilities. Trade and other payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method. Provision is made for employee entitlement benefits accumulated as a result of employees rendering services up to the reporting date. Liabilities arising in respect of wages and salaries, annual leave and other benefits due to be settled within 12 months of the reporting date are measured at rates which are expected to be paid when the liability is settled. Termination benefits are expensed at the earlier of when the Group can no longer withdraw the offer of those benefits and when the Group recognises costs for a restructuring. If benefits are not expected to be settled wholly within 12 months of the reporting date, then they are discounted. All other employee entitlement liabilities are measured at the present value of estimated payments to be made in respect of services rendered up to reporting date. |
Financial instruments and risk management | Accounting policy The Group initially recognises loans and receivables on the date these originate. All other financial assets (including assets designated at fair value through profit or loss) are recognised initially on trade date, which is the date that the Group becomes a party to the contractual provisions of the instrument. The Group derecognises a financial asset when the contractual rights to the cash flows in a transaction in which substantially all the risks and rewards of the ownership of the financial asset are transferred. The Group derecognises a financial liability when its contractual obligations are discharged, cancelled or expired. Any interest in such transferred financial asset that is created or retained by the Group is recognised as a separate asset or liability. The particular recognition and measurement methods adopted are disclosed in the individual policy statements associated with each item. A financial asset not classified at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset and those event(s) had an impact on the estimated future cash flows of that asset, that can be estimated reliably. Impairment losses are recognised through profit or loss. On derecognition of a financial asset or liability, the difference between the carrying amount of the asset or liability and the sum of the consideration received and cumulative gains recognised in equity is recognised in profit or loss. |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SEGMENT REPORTING | |
Schedule of segment reporting | Figures in million - SA rand Group Total Southern Africa Total SA gold operations Drie-fontein Kloof Beatrix Cooke DRD-GOLD 1 Corporate 2 Total SA PGM operations Kroondal Platinum Mimosa Rusten-burg operation Corporate 2 Total US PGM operations Stillwater Group Corporate and re-conciling items 2018 Revenue 50,656.4 34,810.3 19,656.7 5,111.2 8,131.7 4,601.3 841.8 1,047.5 (76.8) 15,153.6 3,584.4 196.7 1,857.5 11,372.5 (1,857.5) 15,872.8 (26.7) Underground 38,605.7 30,202.3 16,157.2 4,782.4 6,937.9 4,467.8 45.9 - (76.8) 14,045.1 3,584.4 - 1,857.5 10,460.7 (1,857.5) 8,430.1 (26.7) Surface 4,608.0 4,608.0 3,499.5 328.8 1,193.8 133.5 795.9 1,047.5 - 1,108.5 - 196.7 - 911.8 - - - Recycling 7,442.7 - - - - - - - - - - - - - - 7,442.7 - Cost of sales, before amortisation and depreciation (41,515.2) (29,794.3) (17,698.3) (5,709.3) (6,364.8) (3,910.8) (693.4) (1,020.0) - (12,096.0) (2,739.4) (152.7) (1,235.7) (9,203.9) 1,235.7 (11,720.9) - Underground (30,248.7) (25,724.3) (14,592.9) (5,386.7) (5,352.2) (3,841.0) (13.0) - - (11,131.4) (2,739.4) - (1,235.7) (8,392.0) 1,235.7 (4,524.4) - Surface (4,070.0) (4,070.0) (3,105.4) (322.6) (1,012.6) (69.8) (680.4) (1,020.0) - (964.6) - (152.7) - (811.9) - - - Recycling (7,196.5) - - - - - - - - - - - - - - (7,196.5) - Net other cash costs (771.8) (771.8) (596.0) (50.2) (44.8) (37.2) (573.4) 8.7 100.9 (175.8) (52.7) (1.2) (6.7) (121.1) 5.9 - - Adjusted EBITDA 8,369.4 4,244.2 1,362.4 (648.3) 1,722.1 653.3 (425.0) 36.2 24.1 2,881.8 792.3 42.8 615.1 2,047.5 (615.9) 4,151.9 (26.7) Amortisation and depreciation (6,613.8) (4,379.4) (3,305.0) (1,200.9) (1,378.8) (635.3) (5.7) (57.9) (26.4) (1,074.4) (370.4) (3.0) (191.6) (697.1) 187.7 (2,234.4) - Interest income 482.1 398.9 315.4 94.3 72.0 40.0 41.7 26.1 41.3 83.5 60.3 1.3 0.1 20.2 1.6 83.2 - Finance expense (3,134.7) (1,177.3) (754.9) (234.9) (245.9) (143.6) (78.1) (33.0) (19.4) (422.4) (130.5) - (13.0) (1,890.6) 1,611.7 (1,797.1) (160.3) Share-based payments (299.4) (263.7) (263.7) (0.2) - - - (3.2) (260.3) - - - - - - (35.7) - Net other 3 3,284.0 3,215.2 2,488.9 (362.8) (110.3) (57.8) (106.2) (419.1) 3,545.1 726.3 137.6 0.7 (9.2) 4,348.0 (3,750.8) 68.8 - Non-underlying items 4 (3,311.9) (3,101.2) (3,071.5) (2,157.6) 27.2 (156.6) (50.6) (4.6) (729.3) (29.7) 0.4 - - (30.7) 0.6 (210.7) - Royalties (212.6) (212.6) (50.6) 1.4 (29.0) (18.8) (4.2) - - (162.0) (5.5) - (57.6) (156.5) 57.6 - - Current taxation (95.3) (333.6) (55.1) 63.9 (75.3) 5.5 0.8 (3.0) (47.0) (278.5) - - (103.4) (277.4) 102.3 238.3 - Deferred taxation (988.5) 807.2 999.8 922.9 313.1 127.8 - (132.0) (232.0) (192.6) (168.9) (9.2) (29.9) (15.5) 30.9 (1,795.7) - Loss for the year (2,520.7) (802.3) (2,334.3) (3,522.2) 295.1 (185.5) (627.3) (590.5) 2,296.1 1,532.0 315.3 32.6 210.5 3,347.9 (2,374.3) (1,531.4) (187.0) Attributable to: - - Owners of the parent (2,499.6) (781.2) (2,310.5) (3,522.2) 295.1 (185.5) (627.3) (565.8) 2,295.2 1,529.3 315.3 29.9 210.5 3,347.9 (2,374.3) (1,531.4) (187.0) Non-controlling interest holders (21.1) (21.1) (23.8) - - - - (24.7) 0.9 2.7 - 2.7 - - - - - Sustaining capital expenditure (1,271.2) (1,011.0) (546.6) (228.1) (220.6) (82.6) - (14.5) (0.8) (464.4) (141.4) (9.5) (170.9) (313.5) 170.9 (260.2) - Ore reserve development (3,530.4) (2,531.5) (2,053.6) (817.1) (839.6) (396.9) - - - (477.9) - - - (477.9) - (998.9) - Growth projects (2,279.2) (705.2) (647.5) (0.4) (141.8) (1.7) - (303.3) (200.3) (57.7) - (57.1) - (0.6) - (1,574.0) - Total capital expenditure (7,080.8) (4,247.7) (3,247.7) (1,045.6) (1,202.0) (481.2) (317.8) (201.1) (1,000.0) (141.4) (66.6) (170.9) (792.0) 170.9 (2,833.1) - 1 DRDGOLD’s performance is for five months ended 31 December 2018 since acquisition (refer to note 13.1). 2 Corporate and reconciling items represents the items to reconcile segment data to consolidated financial statement totals. This does not represent a separate segment as it does not generate mining revenue. 3 Net other costs consists of loss on financial instruments, gain on foreign exchange differences, change in estimate of environmental rehabilitation obligation, and right of recovery receivable and payable, and other income. Corporate and reconciling items net other costs includes the share of results equity-accounted investees after tax as detailed in profit or loss. 4 Non-underlying items consists of gain on disposal of property, plant and equipment, impairments, gain on derecognition of borrowings and derivative financial instrument, occupational healthcare expense, restructuring costs, and transaction costs as detailed in profit or loss. Figures in million - SA rand Group Total Southern Africa Total SA gold operations Driefontein Kloof Beatrix Cooke Corporate and re- conciling items 1 Total SA PGM operations Kroondal Platinum Mile Mimosa Rusten-burg operation Corporate and re- conciling items 1 Total US PGM operations Stillwater 2 2017 Revenue 45,911.6 36,750.0 23,473.6 8,076.9 8,845.1 4,875.8 1,676.5 (0.7) 13,276.4 2,861.5 194.1 1,687.7 10,220.8 (1,687.7) 9,161.6 Underground 37,790.3 33,168.0 21,143.2 7,148.1 7,985.3 4,753.1 1,257.4 (0.7) 12,024.8 2,861.5 - 1,687.7 9,163.3 (1,687.7) 4,622.3 Surface 3,582.0 3,582.0 2,330.4 928.8 859.8 122.7 419.1 - 1,251.6 - 194.1 - 1,057.5 - - Recycling 4,539.3 - - - - - - - - - - - - - 4,539.3 Cost of sales, before amortisation and depreciation (36,482.7) (29,471.0) (17,879.2) (6,203.5) (5,762.7) (3,952.5) (1,960.5) - (11,591.8) (2,395.9) (129.8) (1,200.5) (9,066.1) 1,200.5 (7,011.7) Underground (29,345.3) (26,710.5) (16,032.2) (5,488.9) (5,109.5) (3,852.1) (1,581.7) - (10,678.3) (2,395.9) - (1,200.5) (8,282.4) 1,200.5 (2,634.8) Surface (2,760.5) (2,760.5) (1,847.0) (714.6) (653.2) (100.4) (378.8) - (913.5) - (129.8) - (783.7) - - Recycling (4,376.9) - - - - - - - - - - - - - (4,376.9) Net other cash costs (383.8) (376.5) (285.9) (32.4) (37.9) (13.3) (243.4) 41.1 (90.6) (34.7) (12.6) 34.2 (41.8) (35.7) (7.3) Adjusted EBITDA 9,045.1 6,902.5 5,308.5 1,841.0 3,044.5 910.0 (527.4) 40.4 1,594.0 430.9 51.7 521.4 1,112.9 (522.9) 2,142.6 Amortisation and depreciation (5,699.7) (4,268.3) (3,507.5) (1,126.5) (1,404.5) (696.2) (256.4) (23.9) (760.8) (239.0) (2.6) (211.7) (514.7) 207.2 (1,431.4) Interest income 415.5 363.7 205.7 77.6 71.1 18.4 12.5 26.1 158.0 57.0 2.1 8.8 96.6 (6.5) 51.8 Finance expense (2,971.8) (1,517.7) (1,182.2) (220.9) (246.9) (128.4) (76.7) (509.3) (335.5) (90.7) - (10.0) (244.9) 10.1 (1,454.1) Share-based payments (231.9) (227.0) (227.0) (2.8) (1.8) (1.3) - (221.1) - - - - - - (4.9) Net other 3 (779.1) (756.0) 296.5 24.1 23.4 (34.7) (76.9) 360.6 (1,052.5) (181.7) 0.7 (11.0) (893.1) 32.6 (23.1) Non-underlying items 4 (6,759.1) (6,688.2) (6,535.8) (74.9) (50.4) (675.3) (3,664.7) (2,070.5) (152.4) (9.0) - - (134.9) (8.5) (70.9) Royalties (398.5) (398.5) (325.3) (77.8) (189.3) (44.5) (13.7) - (73.2) (5.6) - (60.4) (67.6) 60.4 - Current taxation (504.2) (405.3) (385.4) (14.8) (350.1) (12.4) - (8.1) (19.9) - (9.3) (59.3) (10.0) 58.7 (98.9) Deferred taxation 3,450.8 533.8 549.2 (12.0) 61.4 245.3 1.5 253.0 (15.4) (24.8) (4.3) (2.8) 12.7 3.8 2,917.0 Loss for the year (4,433.1) (6,461.2) (5,803.5) 412.8 957.4 (419.1) (4,601.8) (2,152.8) (657.7) (62.9) 38.3 175.0 (643.0) (165.1) 2,028.1 Attributable to: Owners of the parent (4,437.4) (6,465.5) (5,804.6) 412.8 957.4 (419.1) (4,601.8) (2,153.9) (660.9) (62.9) 35.1 175.0 (643.0) (165.1) 2,028.1 Non-controlling interest holders 4.3 4.3 1.1 - - - - 1.1 3.2 - 3.2 - - - - Sustaining capital expenditure (1,325.6) (1,098.7) (531.1) (235.0) (210.2) (63.1) (8.5) (14.3) (567.6) (190.5) (11.0) (222.5) (366.1) 222.5 (226.9) Ore reserve development (3,291.6) (2,753.0) (2,288.0) (876.1) (876.2) (482.0) (53.7) - (465.0) - - - (465.0) - (538.6) Growth projects (1,481.6) (593.3) (591.0) (44.4) (147.1) (0.5) (11.7) (387.3) (2.3) - (2.3) - - - (888.3) Total capital expenditure (6,098.8) (4,445.0) (3,410.1) (1,155.5) (1,233.5) (545.6) (73.9) (401.6) (1,034.9) (190.5) (13.3) (222.5) (831.1) 222.5 (1,653.8) 1 Corporate and reconciling items represents the items to reconcile segment data to consolidated financial statement totals. This does not represent a separate segment as it does not generate mining revenue. 2 Stillwater’s performance is for eight months ended 31 December 2017 since acquisition (refer to note 13.2). 3 Net other costs consists of loss on financial instruments, gain on foreign exchange differences, change in estimate of environmental rehabilitation obligation, and right of recovery receivable and payable, and other income. Corporate and reconciling items net other costs includes the share of results of equity-accounted investees after tax as detailed in profit or loss. 4 Non-underlying items consists of gain on disposal of property, plant and equipment, impairments, occupational healthcare expense, restructuring costs, and transaction costs as detailed in profit or loss. Figures in million - SA rand Group Total Southern Africa Total SA gold operations Driefontein Kloof Beatrix Cooke Corporate and reconciling items 1 Total SA PGM operations Kroondal 2 Platinum 2 Mimosa 2 Rusten-burg operation 3 Corporate and re- conciling items 1 2016 Revenue 31,240.7 27,501.3 9,401.1 8,890.9 5,883.9 3,362.2 (36.8) 3,739.4 1,973.3 131.1 1,223.2 1,656.0 (1,244.2) Underground 28,026.5 24,608.4 8,105.3 8,012.6 5,626.9 2,900.4 (36.8) 3,418.1 1,973.3 - 1,223.2 1,465.8 (1,244.2) Surface 3,214.2 2,892.9 1,295.8 878.3 257.0 461.8 - 321.3 - 131.1 - 190.2 - Cost of sales, before amortisation and depreciation (20,709.1) (17,346.0) (5,566.6) (5,041.0) (3,753.4) (2,985.0) - (3,363.1) (1,689.8) (90.8) (969.0) (1,582.5) 969.0 Underground (18,800.6) (15,655.1) (4,852.1) (4,609.4) (3,567.4) (2,626.2) - (3,145.5) (1,689.8) - (969.0) (1,455.7) 969.0 Surface (1,908.5) (1,690.9) (714.5) (431.6) (186.0) (358.8) - (217.6) - (90.8) - (126.8) - Net other cash costs (261.2) (235.2) (52.0) (49.2) (44.6) (87.1) (2.3) (26.0) (20.6) (0.7) 192.5 3.2 (200.4) Adjusted EBITDA 10,270.4 9,920.1 3,782.5 3,800.7 2,085.9 290.1 (39.1) 350.3 262.9 39.6 446.7 76.7 (475.6) Amortisation and depreciation (4,041.9) (3,814.7) (1,012.9) (1,190.7) (818.0) (770.8) (22.3) (227.2) (162.9) (1.2) (223.7) (58.6) 219.2 Interest income 331.4 289.6 70.8 62.3 34.1 32.5 89.9 41.8 34.6 (9.0) 0.5 8.2 7.5 Finance expense (903.1) (806.2) (143.1) (156.0) (77.6) (75.8) (353.7) (96.9) (70.6) - (11.2) (26.2) 11.1 Share-based payments (496.2) (255.9) (16.5) (13.7) (9.1) - (216.6) (240.3) - - - - (240.3) Net other 4 (897.4) (794.1) (174.1) (138.7) (125.9) (27.9) (327.5) (103.3) 19.4 0.1 (4.8) (95.4) (22.6) Non-underlying items 5 548.2 (1,548.5) (20.8) 15.7 (12.6) (1,423.9) (106.9) 2,096.7 (1.3) - - 2,105.2 (7.2) Royalties (566.6) (528.0) (204.8) (194.3) (113.2) (15.7) - (38.6) (10.2) - (82.9) (28.3) 82.8 Current taxation (1,111.8) (1,111.3) (472.3) (422.0) (223.0) (1.1) 7.1 (0.5) - - (22.8) - 22.3 Deferred taxation (90.3) (164.5) (64.3) (148.5) 19.4 35.3 (6.4) 74.2 16.9 (11.6) 13.1 68.1 (12.3) Profit for the year 3,042.7 1,186.5 1,744.5 1,614.8 760.0 (1,957.3) (975.5) 1,856.2 88.8 17.9 114.9 2,049.7 (415.1) Attributable to: Owners of the parent 3,473.3 1,619.4 1,744.5 1,614.8 760.0 (1,523.5) (976.4) 1,853.9 88.8 15.6 114.9 2,049.7 (415.1) Non-controlling interest holders (430.6) (432.9) - - - (433.8) 0.9 2.3 - 2.3 - - - Sustaining capital expenditure (1,010.5) (683.5) (218.5) (261.2) (84.8) (48.9) (70.1) (327.0) (175.8) (1.3) (159.8) (148.7) 158.6 Ore reserve development (2,394.4) (2,394.4) (779.0) (912.9) (542.9) (159.6) - - - - - - - Growth projects (746.3) (746.3) (54.1) (130.1) (0.7) (40.7) (520.7) - - - - - - Total capital expenditure (4,151.2) (3,824.2) (1,051.6) (1,304.2) (628.4) (249.2) (590.8) (327.0) (175.8) (1.3) (159.8) (148.7) 158.6 1 Corporate and reconciling items represents the items to reconcile segment data to consolidated financial statement totals. This does not represent a separate segment as it does not generate mining revenue. 2 The performance of Kroondal, Platinum Mile, and Mimosa is for the nine months ended 31 December 2016 since acquisition. The Mimosa segment information reflects the financial information provided to the chief operating decision maker. In the consolidated financial statements this operating segment is accounted for using the equity method which differs from the measures used by the chief operating decision maker. 3 Rustenburg operation’s performance is for two months ended 31 December 2016 since acquisition. 4 Net other consists of loss on financial instruments, gain on foreign exchange differences, change in estimate of environmental rehabilitation obligation, and right of recovery receivable and payable, and other income . Corporate and reconciling net other costs includes the share of results of equity-accounted investees after tax as detailed in profit or loss. 5 Non-underlying items consists of gain on disposal of property, plant and equipment, impairments, restructuring costs, transaction costs, and gain on acquisition as detailed in profit or loss. |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
REVENUE. | |
Disclosure of revenue from contracts with customers | Figures in million - SA rand Gold mining activities 19,656.7 23,473.6 27,501.3 PGM mining activities 23,355.4 17,898.7 3,739.4 Recycling activities 7,442.7 4,539.3 - Stream 201.6 - - Total revenue from contracts with customers 50,656.4 45,911.6 31,240.7 The primary geographical markets are: Figures in million - SA rand Southern Africa 34,810.3 36,750.0 31,240.7 United States 15,846.1 9,161.6 - Total revenue from contracts with customers 50,656.4 45,911.6 31,240.7 |
COST OF SALES (Tables)
COST OF SALES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
COST OF SALES. | |
Schedule of cost of sales | Figures in million - SA rand Notes Salaries and wages (15,710.3) (15,323.0) (9,276.1) Consumable stores (9,327.9) (8,789.4) (5,243.2) Utilities (5,049.2) (4,930.1) (3,709.0) Mine contracts (3,197.6) (2,956.9) (2,105.3) Recycling (7,196.5) (4,376.9) - Other (4,564.0) (3,398.0) (2,769.9) Ore reserve development costs capitalised 3,530.3 3,291.6 2,394.4 Cost of sales, before amortisation and depreciation (41,515.2) (36,482.7) (20,709.1) Amortisation and depreciation (6,613.8) (5,699.7) (4,041.9) Total cost of sales (48,129.0) (42,182.4) (24,751.0) |
FINANCE EXPENSE (Tables)
FINANCE EXPENSE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
FINANCE EXPENSE | |
Schedule of finance expense | Figures in million - SA rand Notes Interest charge on: Borrowings - interest paid (1,572.5) (2,091.9) (427.5) Borrowings - accrued interest and unwinding of amortised cost (538.3) (251.8) (141.4) Environmental rehabilitation obligation (398.8) (357.1) (291.4) Occupational healthcare obligation (105.4) (46.4) - Deferred Payment (related to the Rustenburg operation acquisition) (200.4) (148.2) (24.1) Dissenting shareholders (68.1) (62.9) - Deferred revenue 1 (160.3) - - Other (90.9) (13.5) (18.7) Total finance expense (3,134.7) (2,971.8) (903.1) 1 For the year ended 31 December 2018, interest expense includes approximately R160.3 million of non-cash interest expense relating to the gold and palladium streaming arrangement with Wheaton International. Although there is no cash financing cost related to this arrangement, IFRS 15 requires the Group to recognise a notional financing charge due to the significant time delay between receiving the upfront streaming payment and satisfying the related metal credit deliveries. A discount rate of 5.4% was used in determining the finance costs to be recognised as part of the steaming transaction entered into on 16 July 2018. |
SHARE-BASED PAYMENTS (Tables)
SHARE-BASED PAYMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SHARE-BASED PAYMENTS | |
Expenses from share based payment arrangements | Figures in million - SA rand Notes Sibanye-Stillwater 2017 Share Plan (139.2) (9.0) - Performance shares (139.2) (9.0) - Sibanye Gold Limited 2013 Share Plan (142.5) (208.4) (172.1) Performance shares (142.5) (186.3) (145.5) Bonus shares - (22.1) (26.6) Sibanye Gold Limited Phantom Share Scheme - (11.2) (83.8) Stillwater cash settled scheme (14.5) (3.3) - DRDGOLD cash settled scheme (3.2) - - Share-based payment on BEE transaction - - (240.3) Total share-based payments (299.4) (231.9) (496.2) |
Disclosure of information about key management personnel [text block] | The executive directors and prescribed officers were paid the following remuneration during the year: Figures in thousands - SA rand Salary Cash bonus accrued for 2018 paid in 2019 Accrual of Forfeitable Share awards and Conditional Share proceeds Pension scheme total contributions Expense allowance and other benefits Executive directors Neal Froneman 1 11,722 8,619 14,177 993 249 35,760 52,656 Charl Keyter 6,033 4,237 6,521 862 44 17,697 23,440 Prescribed officers - Chris Bateman 2 7,944 4,160 2,773 291 1,717 16,885 7,269 Shadwick Bessit 3 336 176 117 59 - 688 - Hartley Dikgale 3,560 2,022 2,919 260 - 8,761 11,768 Dawie Mostert 3,674 2,352 3,585 501 - 10,112 12,044 Themba Nkosi 3,648 2,009 1,339 269 - 7,265 6,869 Wayne Robinson 4,330 2,440 3,804 351 - 10,925 9,268 Richard Stewart 3,774 2,500 6,293 419 - 12,986 11,288 Robert van Niekerk 4,868 3,221 4,878 541 - 13,508 17,424 Total 49,889 31,736 46,406 4,546 2,010 134,587 152,026 Remuneration may differ from that presented in the Integrated Annual Report 2018. 1 Entered into a dual service contract with effect 1 May 2018. Remuneration paid in US dollars was converted at the average exchange rate of R13.87/US$ for the eight months ended 31 December 2018. 2 Remuneration paid in US dollars was converted at the average exchange rate of R13.24/US$ for the year ended 31 December 2018. The other (cash) benefit represents the contracted payout of benefits arising from the treatment of unvested share-based remuneration in respect of the Stillwater Mining Company share plan, which comprised shares granted in the form of time-based restricted stock unit awards and performance-based restricted stock unit awards. In accordance with the change of control provisions of the Stillwater Mining Company share plan, on the acquisition of Stillwater Mining Company by Sibanye-Stillwater all shares (i.e. time-based restricted stock unit awards and performance-based restricted stock unit awards) were converted to a cash settlement at US$18/share with phased payments. No further performance criteria were to be applied with settlement subject to the prescribed officer remaining in the employment of Sibanye-Stillwater at 31 December to qualify for the payment. The final tranche is payable at 31 December 2019. 3 Appointed as prescribed officer 1 December 2018. The non-executive directors were paid the foll owing fees during the year: Figures in thousands - SA rand Directors fees Committee fees Expense allowance Tim Cumming 954 589 155 1,698 1,428 Savannah Danson 953 528 - 1,480 745 Barry Davison 953 696 - 1,649 1,555 Rick Menell 954 742 27 1,723 1,610 Sello Moloko 1,802 - - 1,802 1,725 Nkosemntu Nika 922 513 - 1,435 1,285 Keith Rayner 954 695 74 1,723 1,545 Sue van der Merwe 954 536 - 1,491 1,223 Jerry Vilakazi 945 344 - 1,289 1,224 Total 9,392 4,643 257 14,291 12,340 The directors’ and prescribed officers’ share ownership at 31 December 2018 was: Number of shares % Executive directors Neal Froneman 1 4,555,954 3,342,087 0.20 0.15 Charl Keyter 1 1,530,119 1,212,745 0.07 0.06 Non-executive directors Tim Cumming 1 106 102 - - Barry Davison 1 1,567,710 1,507,414 0.07 0.07 Rick Menell 1 108,625 104,448 - - Sello Moloko 1 111,534 107,245 - - Keith Rayner 1 68,992 66,339 - - Sue van der Merwe 1 1,028 988 - - Total share ownership by directors 7,944,068 6,341,368 Prescribed officers Chris Bateman 1 32,747 - - - Shadwick Bessit 1 219,782 - 0.01 - Hartley Dikgale 1 114,744 292,785 0.01 0.01 Dawie Mostert 1 50,743 - - - Themba Nkosi 1 19,107 18,370 - - Wayne Robinson 1 39,321 346 - - Richard Stewart 1 421,653 102,971 0.02 - Robert van Niekerk 1 271,537 176,266 0.01 0.01 Total 9,113,702 6,932,106 1 Share ownership at the date of this report is unchanged. |
Reconciliation of the share-based payment obligations | Figures in million - SA rand Note Share-based payment on BEE transaction 149.7 399.5 240.3 Share-based payment 76.0 35.0 241.4 Balance at end of the year 225.7 434.5 481.7 Reconciliation of the share-based payment obligations Balance at beginning of the year 434.5 481.7 599.6 Share-based payments expense 17.7 14.5 83.8 Share-based payment on BEE transaction - - 240.3 Fair value (gain)/loss on obligations 1 (249.9) 171.5 1,076.6 Cash-settled share-based payments paid 2 (21.7) (433.6) (1,518.6) Share-based payment obligation on acquisition of subsidiary 45.1 200.4 - Balance at end of the year 225.7 434.5 481.7 Reconciliation of the non-current and current portion Share-based payment obligations 225.7 434.5 481.7 Current portion of share-based payment obligations (56.8) (12.3) (235.2) Non-current portion of share-based payment obligations 168.9 422.2 246.5 1 The fair value adjustment at reporting date is included in loss on financial instruments in profit or loss and not as part of share-based payments expense. 2 Payments made during the year relates to vesting of shares to employees. |
Sibanye 2017 and 2013 Share Plan [Member] | |
SHARE-BASED PAYMENTS | |
Disclosure of information about key management personnel [text block] | Instruments granted Equity-settled instruments Instruments forfeited Number of instruments Number of instruments 1 Number of instruments 1 Average Share Number of instruments Number of instruments Executive directors Neal Froneman 3,510,669 5,318,454 1,063,629 10.72 11,404,039 - 7,765,494 Charl Keyter 1,703,868 2,672,205 484,485 10.65 5,159,132 - 3,891,588 Prescribed officers Chris Bateman 413,920 2,100,629 136,632 8.73 1,193,090 - 2,377,917 Shadwick Bessit 2 1,763,128 49,288 98,619 8.72 860,293 - 1,713,797 Hartley Dikgale 892,545 1,062,536 220,482 10.52 2,320,335 - 1,734,599 Dawie Mostert 979,139 1,328,165 268,044 10.62 2,847,401 - 2,039,260 Themba Nkosi 640,072 1,052,911 87,826 8.75 768,826 - 1,605,157 Wayne Robinson 1,081,008 1,277,048 275,245 10.72 2,950,577 - 2,082,811 Richard Stewart 1,469,189 1,521,844 562,537 9.83 5,530,242 - 2,428,496 Robert van Niekerk 1,365,383 2,147,603 391,847 10.48 4,107,696 - 3,121,139 1 Instruments granted and exercised may differ from that presented in the Integrated Annual Report 2018 as the instruments granted and exercised presented above. 2 Appointed as prescribed officer 1 December 2018. |
Sibanye Stillwater 2017 Share Plan [Member] | |
SHARE-BASED PAYMENTS | |
Summary of percentile on peer group | TSR element of performance conditions Percentile on peer group TSR curve % vesting 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% |
Summary of return on capital employed | ROCE element of performance condition Annual ROCE % vesting ≤K e K e + 1% K e + 2% K e + 3% K e + 4% K e + 5% K e + 6% |
Summary of activity of other equity instruments | Conditional Forfeitable shares shares Number of instruments - 12,953,888 Outstanding at beginning of the year - - Movement during the year: 2,376,742 41,103,872 Granted during the year 5,977,437 - 10,933,066 - Supplementary awards related to the SGL 2013 Plan - - (105,449) (1,457,586) Exercised and released (2,348,445) - (250,471) (3,995,018) Forfeited (359,782) - - (69,808) Condition forfeited - 12,953,888 48,535,348 Outstanding at end of the year 3,269,210 - |
Sibanye 2013 Share Plan - Allocations From March 2016 Onwards [Member] | |
SHARE-BASED PAYMENTS | |
Inputs to the models for equity instruments granted during the year | Conditional Forfeitable shares shares MONTE CARLO SIMULATION Weighted average historical volatility (based on a statistical analysis of the share price on a weighted moving average basis for the expected term of the option) 3 3 3 Expected term (years) n/a n/a n/a n/a n/a n/a Expected term (months) 9 - 18 9 - 18 9 - 18 Expected dividend yield 2.14% / 2.30% Weighted average three-year risk-free interest rate (based on SA interest rates) 6.87% / 6.77% n/a n/a n/a Marketability discount n/a 1.27% / 0.50% 1.60% / 0.69% 50.81 24.07 6.86 Weighted average fair value 11.43 24.84 / 24.14 54.27 / 53.02 |
Summary of activity of other equity instruments | Conditional shares Forfeitable shares Number of instruments 9,398,072 10,610,779 19,379,386 Outstanding at beginning of the year 446,469 250,827 417,266 Movement during the year: 5,103,184 12,851,131 - Granted during the year - 2,421,522 504,739 (3,832,758) (2,616,050) (2,523,162) Exercised and released (415,579) (2,126,415) (667,063) (57,719) (1,466,474) (1,514,145) Forfeited (30,890) (99,465) (4,115) - - (126,097) Condition forfeited - - - 10,610,779 19,379,386 15,215,982 Outstanding at end of the year - 446,469 250,827 |
SGL Phantom Scheme | |
SHARE-BASED PAYMENTS | |
Summary of activity of other equity instruments | Conditional shares Forfeitable shares Number of instruments 20,198,875 5,301,626 - Outstanding at beginning of the year - - - Movement during the year: (14,275,138) (5,178,775) - Vested and paid - - - (622,111) (122,851) - Forfeited - - - 5,301,626 - - Outstanding at end of the year - - - |
OTHER COSTS (Tables)
OTHER COSTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
OTHER COSTS | |
Schedule of other costs | Figures in million - SA rand Note Included in other costs are the following: Care and maintenance (576.5) (249.2) (75.0) Change in estimate of environmental rehabilitation obligation, 66.6 (248.9) (97.5) |
IMPAIRMENT (Tables)
IMPAIRMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
IMPAIRMENTS | |
Schedule of impairments | Figures in million - SA rand Notes Impairment of property, plant and equipment (2,603.3) (4,303.4) (1,171.7) Impairment of goodwill (436.3) (99.1) (201.3) Impairment of loan to equity-accounted investee (1.8) (8.5) (8.1) Total impairments (3,041.4) (4,411.0) (1,381.1) |
ROYALTIES, AND MINING AND INC_2
ROYALTIES, AND MINING AND INCOME TAX, AND DEFERRED TAX (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
ROYALTIES, AND MINING AND INCOME TAX, AND DEFERRED TAX | |
Schedule of royalty tax expense | Figures in million - SA rand Current charge (255.5) (398.5) (566.6) SA gold revenue (93.5) (325.3) (528.0) SA PGM revenue (162.0) (73.2) (38.6) Prior year tax refund 42.9 - - Total royalties (212.6) (398.5) (566.6) |
Schedule of mining and income tax expense | Figures in million - SA rand Note Current tax (95.3) (504.2) (1,111.8) Mining tax (36.8) (425.2) (1,031.6) Non-mining tax (57.6) (70.6) (83.9) Company and capital gain tax (0.9) (8.4) 3.7 Deferred tax (988.5) 3,450.8 (90.3) Deferred tax charge 306.7 879.7 (30.5) Deferred tax rate adjustment 1 (1,295.2) 2,571.1 (59.8) Total mining and income tax (1,083.8) 2,946.6 (1,202.1) 1 The deferred tax rate adjustment in South Africa and the US was: Figures in million - SA rand South Africa 249.5 39.6 (59.8) United States (1,544.7) 2,531.5 - Deferred tax rate adjustment (1,295.2) 2,571.1 (59.8) |
Schedule of reconciliation of the Group’s mining and income tax to the South African statutory company tax rate | Figures in million - SA rand Tax on loss/(profit) before tax at maximum South African statutory company tax rate 402.3 2,066.3 (1,188.5) South African gold mining tax formula rate adjustment (53.0) 157.6 160.9 US statutory tax rate adjustment 19.4 57.3 - Non-deductible amortisation and depreciation (21.2) (0.9) (35.0) Non-taxable dividend received 15.4 - - Non-deductible finance charges (118.2) (165.8) (48.7) Non-deductible share-based payments (78.9) (58.4) (115.5) Non-taxable gain/(non-deductible loss) on fair value of financial instruments 136.9 (42.9) (1.7) Non-taxable gain/(non-deductible loss) on foreign exchange differences 250.3 45.0 (52.1) Non-taxable share of results of equity-accounted investees 96.4 81.6 3.7 Non-deductible impairments (123.2) (1,054.9) (65.6) Non-deductible transaction costs (110.0) (154.6) (44.0) Non-taxable gain on acquisition - - 610.0 Net other non-taxable income and non-deductible expenditure 121.0 (251.7) 64.2 Change in estimated deferred tax rate (1,295.2) 2,571.1 (59.8) Deferred tax assets not recognised (325.8) (303.1) (430.0) Mining and income tax (1,083.8) 2,946.6 (1,202.1) |
Schedule of deferred tax | Figures in million - SA rand Notes Included in the statement of financial position as follows: Deferred tax assets (76.9) (206.2) (228.2) Deferred tax liabilities 10,153.2 8,525.2 4,915.4 Net deferred tax liabilities 10,076.3 8,319.0 4,687.2 Reconciliation of the deferred tax balance: Balance at beginning of the year 8,319.0 4,687.2 3,498.2 Deferred tax recognised in profit or loss 988.5 (3,450.8) 90.3 Deferred tax recognised in other comprehensive income (22.8) (27.7) - Deferred tax on acquisition of subsidiaries 132.2 7,486.3 1,098.7 Foreign currency translation 659.4 (376.0) - Balance at end of the year 10,076.3 8,319.0 4,687.2 |
Schedule of components of net deferred tax liabilities | Figures in million - SA rand Deferred tax liabilities Mining assets 11,344.4 9,642.6 6,365.4 Environmental rehabilitation obligation funds 507.7 600.7 729.6 Other 284.7 47.5 128.6 Gross deferred tax liabilities 12,136.8 10,290.8 7,223.6 Deferred tax assets Environmental rehabilitation obligation (989.2) (840.7) (1,041.0) Occupational healthcare obligation (302.7) (299.7) - Other provisions (464.1) (434.0) (546.3) Tax losses and unredeemed capital expenditure (304.5) (397.4) (890.1) Share-based payment obligation - - (59.0) Gross deferred tax assets (2,060.5) (1,971.8) (2,536.4) Net deferred tax liabilities 10,076.3 8,319.0 4,687.2 |
Detailed components of the net deferred tax liabilities and estimated amounts available for set-off against future income | Figures in million - SA rand Tax losses Wits Gold 63.9 64.6 64.6 Burnstone - - - Rand Uranium 1,132.7 886.6 - DRDGOLD 37.3 - - Other - SA region 15.9 15.9 19.0 Total gross tax losses 3,480.0 3,558.2 2,644.8 Other deductible temporary differences Burnstone 13,419.8 11,306.8 10,012.6 Ezulwini 3,208.4 2,923.7 2,909.1 Rand Uranium 4,115.7 4,045.7 1,125.3 DRDGOLD 602.9 - - Ridge Mining Services Proprietary Limited 715.5 499.5 643.9 Stillwater Canada Inc 1,916.4 1,550.8 - Other - SA region 48.9 54.2 55.6 Other - US region 172.0 183.3 55.6 Total gross tax losses and other deductible temporary differences 27,679.6 24,122.2 17,446.9 Deferred tax assets not recognised Wits Gold 17.9 18.1 18.1 Burnstone 3,757.5 3,165.9 2,803.5 Ezulwini 1,522.8 1,544.1 1,531.7 Rand Uranium 1,469.6 - - DRDGOLD 130.0 - - Ridge Mining Services Proprietary Limited 200.3 139.9 180.3 Stillwater Canada Inc 395.4 284.4 - Other - SA region 18.1 19.6 20.9 Other - US region 53.2 70.9 - Total deferred tax assets not recognised 7,564.8 5,242.9 4,554.5 |
Schedule of tax and royalties receivables and payables | Figures in million - SA rand Notes Included in the statement of financial position as follows: Tax receivable (483.2) (182.8) - Tax and royalties payable 88.0 34.9 88.6 Net tax and royalties (receivable)/payable (395.2) (147.9) 88.6 Reconciliation of the net tax and royalties (receivable)/payable balance: Balance at beginning of the year (147.9) 88.6 129.6 Royalties and current tax 9.1, 9.2 307.9 902.7 1,678.4 Royalties and tax paid (542.2) (899.3) (1,732.6) Tax payable on acquisition of subsidiaries 4.4 (260.4) 13.2 Foreign currency translation (17.4) 20.5 - Balance at end of the year (395.2) (147.9) 88.6 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | Basic earnings per share Basic EPS is calculated by dividing the profit attributable to owners of Sibanye-Stillwater by the weighted average number of ordinary shares in issue during the year. Weighted average number of shares Ordinary shares in issue (’000) 2,266,261 2,168,721 929,004 Bonus element of the rights issue (’000) - - 493,645 Bonus element of the capitalisation issue (’000) - 86,749 129,272 Adjustment for weighting of ordinary shares in issue (’000) (2,404) (321,620) (7,271) Weighted average number of shares (’000) 2,263,857 1,933,850 1,544,650 Profit attributable to owners of Sibanye-Stillwater (SA rand million) (2,499.6) (4,437.4) 3,473.3 Basic EPS (cents) (110) (229) 225 10.2 Diluted earnings per share Diluted EPS is calculated by dividing the profit attributable to owners of Sibanye-Stillwater by the diluted number of ordinary shares in issue during the year. Dilutive shares are the number of potentially dilutive ordinary shares that could be issued as a result of share options granted to employees under the share option schemes (refer to note 6) or as a result of the conversion of the US$ Convertible Bond (refer to note 24.5). At 31 December 2018, both of these were anti-dilutive. Diluted weighted average number of shares Weighted average number of shares (’000) 2,263,857 1,933,850 1,544,650 Potential ordinary shares (’000) - - 2,161 Diluted weighted average number of shares (’000) 2,263,857 1,933,850 1,546,811 Diluted basic EPS (cents) (110) (229) 225 |
Headline earnings per share | Reconciliation of (loss)/profit attributable to owners of Sibanye-Stillwater to headline earnings: Figures in million - SA rand Note Gross Net of tax 2018 Loss attributable to owners of Sibanye-Stillwater (2,499.6) Gain on disposal of property, plant and equipment (60.2) (47.9) Impairments 3,041.4 2,530.9 Headline earnings (16.6) Headline EPS - cents (1) 2017 Profit attributable to owners of Sibanye-Stillwater (4,437.4) Gain on disposal of property, plant and equipment (40.7) (29.3) Impairments 4,411.0 4,242.8 Headline earnings (223.9) Headline EPS - cents (12) 2016 Profit attributable to owners of Sibanye-Stillwater 3,473.3 Gain on disposal of property, plant and equipment (95.4) (68.7) Impairments 1,381.1 1,281.7 Gain on acquisition (2,178.6) (2,178.6) Headline earnings 2,507.7 Headline EPS - cents 10.4 Diluted headline earnings per share Diluted headline EPS is calculated by dividing the headline earnings attributable to owners of Sibanye-Stillwater by the diluted weighted average number of ordinary shares in issue during the year. Diluted headline EPS - cents (1) (12) 162 |
DIVIDENDS (Tables)
DIVIDENDS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
DIVIDENDS | |
Schedule of Cash flows from dividends paid are classified under operating activities | Figures in million - SA rand Dividend declared and paid - 558.2 1,610.6 Dividend per share - cents - 60 175 |
Schedule of Reconciliation of (loss)/profit attributable to the owners | Figures in million - SA rand (Loss)/profit attributable to the owners of Sibanye-Stillwater (2,499.6) (4,437.4) 3,473.3 Adjusted for: (Gain)/loss on financial instruments (1,704.1) 1,114.4 1,032.8 Gain on foreign exchange differences (1,169.1) (292.4) (219.6) Gain on disposal of property, plant and equipment (60.2) (40.7) (95.4) Impairments 3,041.4 4,411.0 1,381.1 Gain on derecognition of borrowings and derivative financial instrument (230.0) - - Occupational healthcare expense 15.4 1,106.9 - Restructuring costs 142.8 729.8 187.7 Transaction costs 402.5 552.1 157.0 Share-based payment on BEE transaction - - 240.3 Gain on acquisition - - (2,178.6) Other 18.7 52.7 72.4 Tax effect of the items adjusted above (345.7) (813.4) (419.4) Change in estimated deferred tax rate 1,295.2 (2,571.1) 59.8 Share of results of equity-accounted investees after tax (344.2) (291.6) (13.3) Normalised earnings (1,436.9) (479.7) 3,678.1 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
PROPERTY, PLANT AND EQUIPMENT | |
Schedule of carrying value of property, plant and equipment | Figures in million - SA rand Notes Total Mine Land, mineral Exploration 2018 Cost Balance at beginning of the year 101,720.7 76,529.2 21,807.9 3,383.6 Additions 1 7,107.5 7,034.6 (0.5) 73.4 Change in estimates of rehabilitation assets 618.8 - 618.8 - Disposals (171.2) (168.1) (3.1) - Derecognition of property, plant and equipment 2 (14,416.4) (14,287.7) (128.7) - Transfers between classes of property, plant and equipment - 192.8 134.5 (327.3) Assets acquired on acquisition of subsidiaries 1,443.2 1,325.0 50.0 68.2 Assets derecognised on loss of control of subsidiary (1,322.3) (12.5) - (1,309.8) Foreign currency translation 5,014.3 2,197.9 2,616.4 200.0 Balance at end of the year 99,994.6 72,811.2 25,095.3 2,088.1 Accumulated depreciation, amortisation and impairment Balance at beginning of the year 50,276.1 44,308.9 4,471.0 1,496.2 Amortisation and depreciation 1 6,640.6 5,900.8 739.8 - Impairment 2,603.3 2,461.5 70.8 71.0 Disposals (77.2) (75.9) (1.3) - Derecognition of property, plant and equipment 2 (14,416.4) (14,287.7) (128.7) - Assets derecognised on loss of control of subsidiary (10.9) 10.9 - - Foreign currency translation 420.9 279.5 124.8 16.6 Balance at end of the year 45,436.4 38,598.0 5,276.4 1,583.8 Carrying value at end of the year 54,558.2 34,213.2 19,818.9 504.3 1 During the year, amortisation and depreciation on assets used in the development of the Burnstone project was capitalised. As a result, additions includes non-cash additions (or amortisation and depreciation capitalised) of R26.8 million. 2 During the year, short-term ore reserve development, which was capitalised up to 31 December 2016 and fully depreciated by 2018, was derecognised as no future economic benefits are expected from its use. Figures in million - SA rand Notes Total Mine Land, mineral Exploration 2017 Cost Balance at beginning of the year 67,689.8 59,904.4 5,714.4 2,071.0 Additions 1 6,140.6 5,979.1 95.3 66.2 Change in estimates of rehabilitation assets (187.8) - (187.8) - Disposals (142.3) (134.1) (7.9) (0.3) Assets acquired on acquisition of subsidiaries 29,948.6 11,513.6 17,115.2 1,319.8 Foreign currency translation (1,728.2) (733.8) (921.3) (73.1) Balance at end of the year 101,720.7 76,529.2 21,807.9 3,383.6 Accumulated depreciation, amortisation and impairment Balance at beginning of the year 40,449.1 38,341.9 2,107.2 - Amortisation and depreciation 5,741.6 5,067.6 674.0 - Impairment 4,303.4 1,504.6 1,300.3 1,498.5 Disposals (111.7) (534.2) 422.5 - Foreign currency translation (106.3) (71.0) (33.0) (2.3) Balance at end of the year 50,276.1 44,308.9 4,471.0 1,496.2 Carrying value at end of the year 51,444.6 32,220.3 17,336.9 1,887.4 1 During the year, amortisation and depreciation on assets used in the development of the Burnstone project was capitalised. As a result, additions includes non-cash additions (or amortisation and depreciation capitalised) of R41.8 million. Figures in million - SA rand Notes Total Mine Land, mineral Exploration 2016 Cost Balance at beginning of the year 57,431.7 51,919.9 3,591.5 1,920.3 Additions 4,151.1 4,065.7 3.7 81.7 Change in estimates of rehabilitation assets 472.5 - 472.5 - Disposals (67.8) (65.9) (1.9) - Assets acquired on acquisition of subsidiaries 5,702.3 3,984.7 1,648.6 69.0 Balance at end of the year 67,689.8 59,904.4 5,714.4 2,071.0 Accumulated depreciation, amortisation and impairment Balance at beginning of the year 35,299.3 33,978.1 1,321.2 - Amortisation and depreciation 4,041.9 3,656.7 385.2 - Impairment 1,171.7 770.3 401.4 - Disposals (63.8) (63.2) (0.6) - Balance at end of the year 40,449.1 38,341.9 2,107.2 - Carrying value at end of the year 27,240.7 21,562.5 3,607.2 2,071.0 |
ACQUISITIONS - (Tables)
ACQUISITIONS - (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
DRDGOLD Limited | |
Disclosure of detailed information about business combination [line items] | |
Schedule of identifiable assets acquired and liabilities assumed in acquisition | Figures in million Notes Property, plant and equipment 1 1,443.2 Environmental rehabilitation obligation funds 244.7 Other non-current assets 28.7 Inventories 243.5 Trade and other receivables 138.4 Cash and cash equivalents 282.8 Environmental rehabilitation obligation and other provisions (672.7) Deferred tax liabilities (132.2) Other non-current liabilities (54.9) Trade and other payables (337.1) Other current liabilities (17.6) Total fair value of identifiable net assets acquired 1,166.8 1 The fair value of property, plant and equipment was based on the expected discounted cash flows of the expected ore reserves and costs to extract the ore discounted at a real discount rate of 9.3% and an average gold price of R580,000/kg. |
Schedule of goodwill arising from acquisition | Figures in million Note SA rand Transaction with DRDGOLD shareholders (Consideration) 1 261.4 Fair value of identifiable net assets acquired (1,166.8) Non-controlling interest, based on the proportionate interest in the recognised amounts of assets and liabilities 2 940.3 Goodwill 34.9 1 The purchase consideration was calculated as 61.95% of the fair value of Far West Gold Recoveries assets and liabilities. The fair value of assets and liabilities, excluding property, plant and equipment, approximate the carrying value. The fair value of property, plant and equipment was based on the expected discounted cash flows of the expected ore reserves and costs to extract the ore discounted at a real discount rate of 13.8%, an average gold price of R580,000/kg. Although Sibanye-Stillwater exchanged (i.e. disposed) the Far West Gold Recoveries assets and liabilities, the Group effectively retains control. The transaction with DRDGOLD shareholders, therefore, represents the difference between 61.95% of the fair value and carrying value of Far West Gold Recoveries assets and liabilities. 2 Non-controlling interest was based on the proportionate interest (of 61.95%) in the carrying value of the Far West Gold Recoveries assets and liabilities, and fair value of the DRDGOLD net assets and liabilities acquired. |
Stillwater | |
Disclosure of detailed information about business combination [line items] | |
Schedule of consideration paid for acquisition | Figures in million Note US dollar SA rand Cash 2,080.7 27,174.5 Liability raised in respect of dissenting shareholders 104.5 1,364.3 Settlement of share-based payment awards (cash) 16.2 211.9 Total consideration 2,201.4 28,750.7 |
Schedule of identifiable assets acquired and liabilities assumed in acquisition | Figures in million Notes US dollar SA rand Property, plant and equipment 2,293.2 29,948.6 Other non-current assets 6.9 90.8 Inventories 159.7 2,085.4 Current investments 278.9 3,642.2 Cash and cash equivalents 137.2 1,792.2 Other current assets 37.3 487.3 Borrowings (454.6) (5,937.6) Environmental rehabilitation obligation (23.9) (312.1) Deferred tax liabilities (573.2) (7,486.3) Other non-current liabilities (19.9) (260.3) Trade and other payables (88.1) (1,150.1) Other current liabilities (1.8) (23.3) Total fair value of identifiable net assets acquired 1 1,751.7 22,876.8 1 The fair value of assets and liabilities excluding property, plant and equipment, inventories and borrowings approximate the carrying value. The fair value of property, plant and equipment was based on the expected discounted cash flows of the expected ore reserves and costs to extract the ore discounted at a real discount rate of 8.6% for the Stillwater and East Boulder mines and Columbus metallurgical complex, and 10.3% for the Blitz project, an average platinum price of US$1,375/oz and an average palladium price of US$880/oz. The fair value of borrowings (Convertible Debentures) was based on the settlement price. |
Schedule of goodwill arising from acquisition | Figures in million Note US dollar SA rand Consideration 2,201.4 28,750.7 Fair value of identifiable net assets (1,751.7) (22,876.8) Goodwill 449.7 5,873.9 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
GOODWILL. | |
Schedule of changes in goodwill | Figures in million - SA rand Notes Balance at beginning of the year 6,396.0 936.0 736.7 Impairment (436.3) (99.1) (201.3) Goodwill on acquisition of subsidiaries 13.1, 13.2 34.9 5,873.9 400.6 Foreign currency translation 895.0 (314.8) - Balance at end of the year 6,889.6 6,396.0 936.0 |
Schedule of estimates and assumptions used in calculation of impairment of goodwill | Platinum Gold Long-term gold price R/kg R/4Eoz Long-term PGM (4E) basket price US$/2Eoz Long-term PGM (2E) basket price % Nominal discount rate – South Africa 1 % % Nominal discount rate – US % Inflation rate – South Africa % % Inflation rate – US 9 - 34 12 - 28 years Life of mine years 5 - 20 12 - 22 1 Nominal discount rate for Burnstone of 17.4%. |
EQUITY-ACCOUNTED INVESTMENTS (T
EQUITY-ACCOUNTED INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
EQUITY-ACCOUNTED INVESTMENTS | |
Schedule of components of equity method investments | Figures in million - SA rand Notes Rand Refinery 239.3 198.4 72.4 Mimosa 2,492.4 2,012.9 2,049.3 Peregrine 978.0 - - Other equity-accounted investments 24.2 32.8 35.7 Total equity-accounted investments 3,733.9 2,244.1 2,157.4 |
Peregrine Metals Ltd. [Member] | |
EQUITY-ACCOUNTED INVESTMENTS | |
Schedule of movement in equity method investments | Figures in million - SA rand Equity-accounted investment retained on loss of control of subsidiary 956.0 - - Foreign currency translation 22.0 - - Balance at end of the year 978.0 - - |
Schedule of group's interest in summarised financial statements of joint venture | Figures in million - SA rand Non-current assets 1,714.6 - - Current assets 23.9 - - Non-current liabilities (342.6) - - Current liabilities (1.3) - - Net assets/(liabilities) (100.0%) 1,394.6 - - Reconciliation of the total investment in Peregrine with attributable net assets: Net assets/(liabilities) (60%) 836.8 - - Reconciling items 1 141.2 - - Total investment in Peregrine 978.0 - - 1 The reconciling items include the difference between the carrying amount and fair value of the Peregrine’s identifiable assets and liabilities on acquisition less accumulated amortisation, and foreign exchange differences on translation of assets and liabilities of the foreign equity-accounted investment. |
Rand Refinery | |
EQUITY-ACCOUNTED INVESTMENTS | |
Schedule of movement in equity method investments | Figures in million - SA rand Balance at beginning of the year 198.4 72.4 148.7 Share of results of equity-accounted investee after tax 1 143.7 124.5 (116.5) Preference shares redeemed (102.8) - - Interest income on loan to equity-accounted investee capitalised - 1.5 40.2 Balance at end of the year 239.3 198.4 72.4 1 Rand Refinery is equity accounted based on its results for the period ended 30 November. |
Schedule of group's interest in summarised financial statements of associate | Figures in million - SA rand Revenue 644.0 649.0 903.0 Total comprehensive income 434.0 374.0 (352.0) Non-current assets 699.0 702.0 636.0 Current assets 1,088.0 669.0 419.0 Non-current liabilities (44.0) (31.0) (1,095.0) Current liabilities (359.0) (391.0) (467.0) Net assets/(liabilities) (100.0%) 1,384.0 949.0 (507.0) Reconciliation of the total investment in Rand Refinery with attributable net assets: Net assets/(liabilities) (44.4% (2017 and 2016: 33.1%)) 614.5 314.1 (168.2) Preference shares redeemed (102.8) - - Dividend received (8.2) (8.2) (8.2) Fair value adjustment 1 (35.5) (35.5) (35.5) Impairment (119.6) (119.6) (119.6) Loan to equity-accounted investee - - 403.9 Redeemable preference shares below 44.4% interest 2 (109.1) 47.6 - Total investment in Rand Refinery 239.3 198.4 72.4 1 The investment in equity-accounted investee was fair valued at 1 July 2002, the date when significant influence was obtained. 2 Sibanye-Stillwater’s proportional share of the Facility was 37.4%. On conversion of the Facility to redeemable preference shares, the Group shares in less than its 44.4% interest of the net assets of Rand Refinery. |
Mimosa | |
EQUITY-ACCOUNTED INVESTMENTS | |
Schedule of movement in equity method investments | Figures in million - SA rand Balance at the beginning of the year 2,012.9 2,049.3 - Share of results of equity-accounted investee after tax 210.5 175.0 114.9 Dividends received (87.0) - - Equity-accounted investment on acquisition of subsidiaries - - 2,066.7 Foreign currency translation 356.0 (211.4) (132.3) Balance at end of the year 2,492.4 2,012.9 2,049.3 |
Schedule of group's interest in summarised financial statements of associate | Figures in million - SA rand Revenue 3,714.9 3,375.4 2,446.4 Amortisation and depreciation (383.1) (423.4) (447.4) Interest income - 17.5 1.0 Finance expense (26.0) (20.0) (22.4) Income tax (381.8) (245.0) (185.1) Profit or loss 420.9 350.1 229.8 Other comprehensive income 712.0 72.7 (264.6) Total comprehensive income 1,132.9 422.8 (34.8) Non-current assets 4,592.3 4,007.8 4,079.0 Property, plant and equipment 4,592.3 4,007.8 4,079.0 Current assets 2,047.9 1,916.2 2,259.5 Cash and cash equivalents 184.8 281.5 191.2 Other current assets 1,863.1 1,634.7 2,068.3 Non-current liabilities (1,168.1) (993.6) (1,131.2) Non-current financial liabilities (60.7) (94.2) (141.2) Other non-current liabilities (1,107.4) (899.4) (990.0) Current liabilities (384.6) (539.1) (900.1) Current financial liabilities (377.7) (487.4) (762.2) Other current liabilities (6.9) (51.7) (137.9) Net assets (100.0%) 5,087.5 4,391.3 4,307.2 Reconciliation of the total investment in Mimosa with attributable net assets: Net assets (50.0%) 2,543.8 2,195.7 2,153.6 Reconciling items 1 (51.4) (182.8) (104.3) Total investment in Mimosa 2,492.4 2,012.9 2,049.3 1 The reconciling items include the difference between the carrying amount and fair value of the Mimosa’s identifiable assets and liabilities on acquisition less accumulated amortisation, and foreign exchange differences on translation of assets and liabilities of the foreign joint venture. In 2016, the reconciling items also included the remaining impairment of the Reserve Bank of Zimbabwe bond notes. |
INTERESTS IN JOINT OPERATIONS (
INTERESTS IN JOINT OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Kroondal Mine | |
Disclosure of joint operations [line items] | |
Schedule of joint operations | Figures in million - SA rand Loss on foreign exchange differences 132.7 (94.4) (67.8) Profit before tax 677.7 175.0 90.8 Profit for the year 677.7 175.0 90.8 Non-current assets 1,115.7 1,284.0 1,296.1 Current assets 1,828.2 1,400.5 1,208.1 Current liabilities (271.3) (283.2) (288.7) Net assets (50.0%) 2,672.6 2,401.3 2,215.5 |
ENVIRONMENTAL REHABILITATION _3
ENVIRONMENTAL REHABILITATION OBLIGATION FUNDS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
ENVIRONMENTAL REHABILITATION OBLIGATION FUNDS | |
Schedule of the environment rehabilitation obligation funds | Figures in million - SA rand Note Balance at beginning of the year 3,492.4 3,100.5 2,413.9 Contributions 63.0 114.5 74.7 Interest income 223.5 230.4 168.2 Fair value (loss)/gain 1 (24.9) 46.5 11.1 Environmental rehabilitation obligation funds on acquisition of subsidiaries 244.7 0.5 432.6 Balance at end of the year 3,998.7 3,492.4 3,100.5 Environmental rehabilitation obligation funds comprise of the following: Restricted cash 2 633.9 483.8 352.3 Funds 3,364.8 3,008.6 2,748.2 1 The environmental rehabilitation trust fund includes equity-linked investments that are fair valued at each reporting date. 2 The funds are set aside to serve as collateral against the guarantees made to the Department of Minerals and Resources for environmental rehabilitation obligations. |
Disclosure of fair value of financial instruments [text block] | Figures in million - SA rand Level 1 3,634.0 3,117.6 2,630.6 Level 2 364.7 374.8 469.9 |
OTHER RECEIVABLES AND OTHER P_2
OTHER RECEIVABLES AND OTHER PAYABLES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
OTHER RECEIVABLES AND OTHER PAYABLES | |
Schedule of other receivables | Figures in million - SA rand Right of recovery receivable 176.8 160.5 112.4 Rates and taxes receivable 106.2 105.6 82.4 Anglo American Platinum financial asset - - 469.7 Other 66.6 53.1 1.4 Total other receivables 349.6 319.2 665.9 Reconciliation of the non-current and current portion of the other receivables: Other receivables 349.6 319.2 665.9 Current portion of other receivables (35.2) (35.2) (310.6) Non-current portion of other receivables 314.4 284.0 355.3 The Anglo American Platinum financial asset movement for the year is as follows: Figures in million - SA rand Balance at the beginning of the year - 469.7 - Interest income - 42.2 6.8 Fair value loss - (467.5) - Payments received - (44.4) - Financial asset on acquisition of subsidiary - - 462.9 Balance at end of the year - - 469.7 |
Schedule of other payables | Figures in million - SA rand Note Deferred Payment 2,205.9 2,194.7 1,577.4 Right of recovery payable 83.2 69.3 36.3 Dissenting shareholder liability 287.1 1,349.7 - Other 256.3 188.6 - Total other payables 2,832.5 3,802.3 1,613.7 Reconciliation of the non-current and current portion of the other payables: Other payables 2,832.5 3,802.3 1,613.7 Current portion of other payables (303.3) (41.9) - Non-current portion of other payables 2,529.2 3,760.4 1,613.7 |
Schedule of deferred payment | Figures in million - SA rand Note Balance at the beginning of the year 2,194.7 1,577.4 - Interest charge 200.4 148.2 24.1 Payment of Deferred Payment (38.6) - - (Gain)/loss on revised estimated cash flows (150.6) 469.1 - Deferred Payment on acquisition of subsidiaries - - 1,553.3 Balance at end of the year 2,205.9 2,194.7 1,577.4 |
Schedule of dissenting shareholder liability | Figures in million - SA rand Note Balance at the beginning of the year 1,349.7 - - Interest charge 68.1 62.9 - Payments to dissenting shareholders (1,375.8) - - Dissenting shareholder liability on acquisition of subsidiary - 1,364.3 - Foreign currency translation reserve 245.1 (77.5) - Balance at end of the year 287.1 1,349.7 - |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
INVENTORIES | |
Schedule of inventories | · Figures in million - SA rand Consumable stores 1 1,051.0 828.7 481.7 Ore stockpiles and in-process 3,322.7 1,955.9 51.8 Gold-on-hand 143.3 - 42.9 PGMs-on-hand 777.8 637.5 - Uranium finished goods and uranium-in-process - 104.4 100.4 Total inventories 5,294.8 3,526.5 676.8 1 The cost of consumable stores consumed during the year and included in operating cost amounted to R9,327.9 million (2017: R8,789.4 million and 2016: R5,243.2 million) |
TRADE AND OTHER RECEIVABLES (Ta
TRADE AND OTHER RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
TRADE AND OTHER RECEIVABLES | |
Schedule of trade and other receivables | Figures in million - SA rand Trade receivables - gold sales 433.8 499.6 658.1 Trade receivables - PGM sales 1 5,310.1 4,512.4 4,001.9 Other trade receivables 436.6 431.4 306.5 Payroll debtors 127.9 174.1 154.7 Interest receivable 8.9 8.5 6.6 Financial assets 6,317.3 5,626.0 5,127.8 Prepayments 296.9 245.0 298.1 Value added tax 218.8 326.6 322.0 Total trade and other receivables 6,833.0 6,197.6 5,747.9 1 The PGM sales trade receivables consists of trade receivables invoiced and outstanding of R1,523.6 million and contract receivables of R3,786.5 million. |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
CASH AND CASH EQUIVALENTS. | |
Schedule of cash and cash equivalents | Figures in million - SA rand Cash at the bank and on hand 1 2,549.1 2,062.4 967.9 Total cash and cash equivalents 2,549.1 2,062.4 967.9 1 At 31 December 2018, restricted cash of US $6.4 million (R91.8 million) was held in a money market fund as collateral for the environmental bonding requirements in the US. |
STATED SHARE CAPITAL (Tables)
STATED SHARE CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
STATED SHARE CAPITAL. | |
Schedule of shares authorized and issued | Figures in thousand Authorised number of shares 10,000,000 10,000,000 2,000,000 Reconciliation of issued number of shares: Number of shares in issue at beginning of the year 2,168,721 929,004 916,140 Shares issued under SGL Share Plan 10,394 1,407 12,864 Rights issue - 1,195,787 - Capitalisation issue 87,146 42,523 - Number of shares in issue at end of the year 2,266,261 2,168,721 929,004 |
NON-CONTROLLING INTERESTS (Tabl
NON-CONTROLLING INTERESTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
NON-CONTROLLING INTERESTS | |
Schedule of subsidiaries related to non-controlling interests | Figures in million - SA rand Note Non-controlling interest of DRDGOLD 913.2 - - Non-controlling interest of Platinum Mile 18.4 15.7 14.3 Non-controlling interests of GTSM 4.4 4.1 3.4 Total non-controlling interests 936.0 19.8 17.7 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of detailed information about borrowings [line items] | |
Schedule of the summary of borrowings | Figures in million - SA rand Notes US$600 million RCF 2,726.5 - - R6.0 billion RCF 5,896.4 5,536.4 5,100.0 US$350 million RCF - 1,137.1 1,369.0 2022 and 2025 Notes 9,808.7 12,597.7 - US$ Convertible Bond 4,496.6 4,357.1 - Burnstone Debt 1,145.1 1,537.5 1,752.6 Other borrowings 425.6 478.7 749.5 Franco-Nevada liability 2.0 1.7 2.7 Stillwater Convertible Debentures 3.8 3.3 - Total borrowings 24,504.7 25,649.5 8,973.8 Reconciliation of the non-current and current portion of the borrowings: Borrowings 24,504.7 25,649.5 8,973.8 Current portion of borrowings (6,188.2) (1,657.5) (752.3) Non-current portion of borrowings 18,316.5 23,992.0 8,221.5 |
Schedule of non-current portion of derivative financial instruments | Figures in million - SA rand Note Reconciliation of the non-current and current portion of the derivative financial instrument: Derivative financial instrument 408.9 1,093.5 - Non-current portion of derivative financial instrument 408.9 1,093.5 - |
Disclosure of maturity analysis for non-derivative financial liabilities [text block] | Figures in million - SA rand Total Within one Between After five years 31 December 2018 Trade and other payables 5,238.4 5,238.4 - - Borrowings - Capital US$600 million RCF 2,726.5 - 2,726.5 - R6.0 billion RCF 5,896.4 5,896.4 - - 2022 and 2025 Notes 10,053.6 - 5,075.6 4,978.0 US$ Convertible Bond 5,510.4 - 5,510.4 - Burnstone Debt 2,552.9 - - 2,552.9 Franco-Nevada liability 2.0 2.0 - - Stillwater Convertible Debentures 3.8 3.8 - - Other borrowings 252.3 252.3 - - - Interest 9,386.9 1,543.8 3,568.6 4,274.5 Total 41,623.2 12,936.7 16,881.1 11,805.4 31 December 2017 Trade and other payables 4,276.4 4,276.4 - - Borrowings - Capital US$600 million RCF 5,536.4 - 5,536.4 - US$350 million RCF 1,137.1 1,137.1 - - 2022 and 2025 Notes 12,978.0 - - 12,978.0 US$ Convertible Bond 5,562.0 - - 5,562.0 Burnstone Debt 2,102.4 - 2,006.2 Other borrowings 478.7 478.7 - - Franco-Nevada liability 1.7 1.7 - - Stillwater Convertible Debentures 3.3 3.3 - - - Interest 9,231.5 1,632.3 4,672.2 2,927.0 Total 41,307.5 7,529.5 10,304.8 23,473.2 |
Sensitivity analysis for types of market risk [text block] | Change in interest expenses for a change in interest rate 1 Figures in million - SA rand -1.5% -1.0% -0.5% 31 December 2018 - JIBAR 88.5 59.0 29.5 (29.5) (59.0) (88.5) - LIBOR 79.2 52.8 26.4 (26.4) (52.8) (79.2) Change in finance expense 167.7 111.8 55.9 (55.9) (111.8) (167.7) 31 December 2017 - JIBAR 83.0 55.4 27.7 (27.7) (55.4) (83.0) - LIBOR 2 49.5 33.0 16.5 (16.5) (33.0) (49.5) Change in finance expense 132.5 88.4 44.2 (44.2) (88.4) (132.5) 1 Interest rate sensitivity analysis is performed on the borrowings balance at 31 December. 2 No interest rate sensitivity analysis has been performed for a reduction in LIBOR due to LIBOR being less than 1%, a decrease in LIBOR would have no impact on the Group’s profit or loss. |
Schedule of the exposure to interest rate changes and the contractual repricing dates | Figures in million - SA rand Floating rate with exposure to change in JIBAR 6,322.0 6,015.1 5,849.5 Floating rate with exposure to change in LIBOR 3,871.6 2,674.6 3,121.6 Non-current borrowings exposed to interest rate changes 10,193.6 8,689.7 8,971.1 The Group has the following undrawn borrowing facilities: Committed 5,987.1 3,652.5 4,322.5 Uncommitted 757.7 471.3 200.5 Total undrawn facilities 6,744.8 4,123.8 4,523.0 All of the above facilities have floating rates. The undrawn committed facilities have the following expiry dates: - within one year 103.6 3,188.9 - - later than one year and not later than two years - 463.6 3,422.5 - later than two years and not later than three years 5,883.5 - 900.0 Total undrawn committed facilities 5,987.1 3,652.5 4,322.5 |
Schedule of the calculation of net debt to adjusted EBITDA ratio | Figures in million - SA rand Note Borrowings 1 23,768.5 25,205.5 7,221.2 Cash and cash equivalents 2 2,499.4 2,029.8 928.4 Net debt 3 21,269.1 23,175.7 6,292.8 Adjusted EBITDA 4 8,369.4 9,045.1 10,270.4 Net debt to adjusted EBITDA (ratio) 5 2.5 2.6 0.6 1 Borrowings are only those borrowings that have recourse to Sibanye-Stillwater. Borrowings, therefore, exclude the Burnstone Debt and include the derivative financial instrument. 2 Cash and cash equivalents exclude cash of Burnstone. 3 Net debt represents borrowings and bank overdraft less cash and cash equivalents. Borrowings are only those borrowings that have recourse to Sibanye-Stillwater and therefore exclude the Burnstone Debt and include the derivative financial instrument. Net debt excludes cash of Burnstone. 4 The adjusted EBITDA calculation included is 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. 5 Net debt to adjusted EBITDA ratio is defined as net debt as at the end of a reporting period divided by adjusted EBITDA of the 12 months ended on the same reporting date . |
Schedule of reconciliation of (loss)/profit before royalties and tax to adjusted EBITDA | Figures in million - SA rand (Loss)/profit before royalties and tax (1,224.3) (6,981.2) 4,811.4 Adjusted for: Amortisation and depreciation 6,613.8 5,699.7 4,041.9 Interest income (482.1) (415.5) (331.4) Finance expense 3,134.7 2,971.8 903.1 Share-based payments 299.4 231.9 496.2 (Gain)/loss on financial instruments (1,704.1) 1,114.4 1,032.8 Gain on foreign exchange differences (1,169.1) (292.4) (219.6) Share of results of equity-accounted investees after tax (344.2) (291.6) (13.3) Gain on disposal of property, plant and equipment (60.2) (40.7) (95.4) Impairments 3,041.4 4,411.0 1,381.1 Gain on derecognition of borrowings and derivative financial instrument (230.0) - - Change in estimate of environmental rehabilitation obligation, and right of recovery receivable and payable (66.6) 248.9 97.5 Occupational healthcare expense 15.4 1,106.9 - Transaction costs 402.5 552.1 157.0 Restructuring costs 142.8 729.8 187.7 Gain on acquisition - - (2,178.6) Adjusted EBITDA 8,369.4 9,045.1 10,270.4 |
US$600 million revolving credit facility | |
Disclosure of detailed information about borrowings [line items] | |
Schedule of the summary of borrowings | Terms of the US$600 million RCF Facility: US$600 million Interest rate: LIBOR Interest rate margin: 1.85% if net debt to adjusted EBITDA is equal to or less than 2.50x 2.00% if net debt to adjusted EBITDA is greater than 2.50x Utilisation fees: Where the total outstanding loans under the RCF fall within the range of the percentage of the total loan as set out below, Sibanye-Stillwater shall pay an utilisation fee equal to the percentage per annum set out opposite such percentage range . % of the total loans Utilisation fee Less than or equal to 33⅓% Greater than 33⅓% and less than or equal to 66⅔% Greater than 66⅔% Term of facility: Three years Borrowers: Sibanye Gold Limited, Stillwater, Kroondal Operations and Sibanye Rustenburg Platinum Mines Proprietary Limited (SRPM) Security and/or guarantors: The facility is unsecured and guaranteed by Sibanye Gold Limited, Stillwater, Kroondal Operations and SRPM. |
Schedule of the rollforward of borrowings | Figures in million - SA rand Balance at beginning of the year - - - Loans raised 5,391.6 - - Loans repaid (2,744.7) - - (Gain)/loss on foreign exchange differences 73.1 - - Foreign currency translation 6.5 - - Balance at end of the year 2,726.5 - - |
R6.0 billion revolving credit facility | |
Disclosure of detailed information about borrowings [line items] | |
Schedule of the summary of borrowings | Terms of the R6.0 billion RCF Facility: R6.0 billion Interest rate: JIBAR Interest rate margin: During the Covenant adjustment period, being 30 June 2017 to 31 December 2019, the margin will be based on the following net debt to adjusted EBITDA ratios: Net debt to adjusted EBITDA ratios Margin % 0.00:1 – 3.00:1 3.00:1 – 3.25:1 3.25:1 – 3.50:1 After the covenant adjustment period the margin will return to 2.4% Term of loan: Three years Borrowers: Sibanye Gold Limited, SRPM and Kroondal Operations Security and/or guarantors: The facility is unsecured and guaranteed by Sibanye Gold Limited, SRPM and Kroondal. |
Schedule of the rollforward of borrowings | Figures in million - SA rand Balance at beginning of the year 5,536.4 5,100.0 - Loans raised 360.0 800.0 5,100.0 Loans repaid - (363.6) - Balance at end of the year 5,896.4 5,536.4 5,100.0 |
US$350 million revolving credit facility | |
Disclosure of detailed information about borrowings [line items] | |
Schedule of the summary of borrowings | Terms of the US$350 million RCF Facility US$350 million RCF (2015: US$300 million RCF) Interest rate: LIBOR Interest rate margin 2% per annum Utilisation Fees Where the total outstanding loans under the RCF fall within the range of the percentage of the total loan as set out below, Sibanye-Stillwater shall pay a utilisation fee equal to the percentage per annum set out opposite such percentage range. % of the total loans Utilisation fee Less than or equal to 33⅓% Greater than 33⅓% and less than or equal to 66⅔% Greater than 66⅔% Term of loan: Three years Borrowers: Sibanye Gold Limited, SRPM and Kroondal Operations Security and/or guarantors: The facility is unsecured and guaranteed by Sibanye Gold Limited, Rand Uranium, SRPM and Kroondal. |
Schedule of the rollforward of borrowings | Figures in million - SA rand Balance at beginning of the year 1,137.1 1,369.0 - Loans raised 580.0 1,031.4 2,771.5 Loans repaid (1,779.6) (1,198.2) (1,211.6) Gain on foreign exchange differences 62.5 (65.1) (190.9) Balance at end of the year - 1,137.1 1,369.0 |
US$1.05 billion Bond | |
Disclosure of detailed information about borrowings [line items] | |
Schedule of the summary of borrowings | Terms of the 2022 and 2025 Notes Facility: US$500 million 6.125% Senior Notes due 2022 (the 2022 Notes) US$550 million 7.125% Senior Notes due 2025 (the 2025 Notes) Outstanding nominal value: 2022 Notes: US$353.7 million 2025 Notes: US$346.9 million Interest rate: 2022 Notes: 6.125% 2025 Notes: 7.125% Term of the Notes: 2022 Notes: Five years 2025 Notes: Eight years Issuer: Stillwater Mining Company Guarantors: Each of the Notes will be fully and unconditionally guaranteed, jointly and severally by the Guarantors (Kroondal Operations, SRPM and Sibanye Gold Limited). The Guarantees will rank equally in right of payment to all existing and future senior debt of the Guarantors. |
Schedule of the rollforward of borrowings | Figures in million - SA rand Note Balance at beginning of the year 12,597.7 - - Loans raised - 13,109.5 - Loans repaid (5,107.4) - - Accrued interest paid (795.5) (431.5) - Interest charge 836.6 478.1 - Unwinding of amortised cost 196.7 29.7 - Gain on derecognition of borrowings (128.8) - - Foreign currency translation 2,209.4 (588.1) - Balance at end of the year 9,808.7 12,597.7 - |
US$450 million Convertible Bond | |
Disclosure of detailed information about borrowings [line items] | |
Schedule of the summary of borrowings | Terms of the US$ Convertible Bond Issue size: US$450 million Outstanding nominal value: US$384 million Coupon: 1.875% Maturity date: 26 September 2023 (six years) Conversion premium: 35% Reference share price: US$1.2281, being the volume weighted average price of a share on the JSE from launch to pricing on 19 September 2017, converted at a fixed exchange rate. Initial conversion price: US$1.6580 Issuer: Sibanye Gold Limited Guarantors: Stillwater and Kroondal Operations (together, the Guarantors), 100% subsidiaries of Sibanye Gold Limited. |
Schedule of the rollforward of borrowings | Figures in million - SA rand Note Balance at beginning of the year 4,357.1 - - Loans raised - 4,634.5 - Loans repaid (745.2) - - Accrued interest paid (111.7) - - Interest charge 105.9 29.8 - Unwinding of amortised cost 185.8 50.7 - Gain on derecognition of borrowings (50.9) - - Gain on foreign exchange differences 755.6 (357.9) - Balance at end of the year 4,496.6 4,357.1 - |
Schedule of roll forward of derivative financial instruments | Figures in million - SA rand Balance at beginning of the year 1,093.5 - - Gain on financial instruments (678.1) (115.9) - Gain on derecognition of derivative financial instrument (50.3) - - Derivative financial instrument recognised - 1,296.6 - Gain on foreign exchange differences 43.8 (87.2) - Balance at end of the year 408.9 1,093.5 - |
R4.5 billion facilities | |
Disclosure of detailed information about borrowings [line items] | |
Schedule of the summary of borrowings | Terms of the R4.5 billion Facilities Facility: R2.5 billion RCF R2.0 billion term loan facility (Term Loan) Interest rate: JIBAR Interest rate margin: RCF: 2.85% Term Loan: 2.75% Term of loan: Three years Repayment period: The Term Loan was repaid in equal six-monthly instalments of R250 million, with the R750 million balance and any amounts outstanding under the RCF due for settlement on final maturity, being 13 December 2016. Security and/or guarantors: The Facilities were unsecured and guaranteed by Rand Uranium and Ezulwini. Cancellation: These facilities were cancelled and repaid on 15 November 2016. |
Schedule of the rollforward of borrowings | Figures in million - SA rand Note Balance at beginning of the year - - 1,961.6 Loans raised - - 1,936.4 Loans repaid - - (3,900.0) Unwinding of amortised cost - - 2.0 Balance at end of the year - - - |
Burnstone Debt | |
Disclosure of detailed information about borrowings [line items] | |
Schedule of the summary of borrowings | Facility: A1: US$0.2 million A2: US$7.8 million A3: US$51.0 million A4: US$119.1 million Interest rate: A1 and A2: Interest free A3 and A4: Interest free until 1 July 2017, then at LIBOR Interest rate margin: A3 and A4: 4% from 1 July 2017 Term of loan: No fixed term Repayment period: A1: Repaid on 1 July 2014 A2: From 1 July 2017 the first 50% of Burnstone’s free cash flow (as defined in the settlement agreement) will be used to repay the Wits Gold Loan and the balance of 50% to repay A2. A3 and A4: On settlement of A2. 90% of Burnstone’s free cash flow will be used to repay the Wits Gold Loan and the balance of 10% to repay the Burnstone Debt. On settlement of the Wits Gold Loan and interest, 30% of Burnstone’s free cash flow will be used to repay the Burnstone Debt and the balance will be distributed to Wits Gold. The Bank Lenders will continue to participate in 10% of Burnstone’s free cash flow after the Burnstone Debt has been repaid in full to a maximum amount of US$63.0 million under a revenue participation agreement. Security: The Burnstone Debt is fully secured against the assets of Burnstone (of R2.0 billion) and there is no recourse to the Sibanye-Stillwater Group. The security package includes a cession over the bank accounts, insurance policies’ proceeds, special and general notarial bonds over movable assets and mortgage bonds over property. |
Schedule of the rollforward of borrowings | Figures in million - SA rand Note Balance at beginning of the year 1,537.5 1,752.6 1,808.3 Accrued interest and unwinding of amortised cost 152.9 141.6 139.4 (Gain)/loss on revised estimated cash flows 1 (804.6) (181.7) 29.3 (Gain)/loss on foreign exchange differences 259.3 (175.0) (224.4) Balance at end of the year 1,145.1 1,537.5 1,752.6 1 At 31 December 2018, the expected free cash flows expected to repay the loan as detailed above were revised as a result of: • Revised proven and probable reserves; • Revised cash flows over the life of mine plan as a result of: ◦ Revised forecast costs and capital expenditure; and ◦ Revised gold prices 2018: R585,500/kg (2017: R545,000/kg and 2016: R570,000/kg) and exchange rates 2018: R14.00/US$ (2017 : R12.94/US$ and 2016: R13.68/US$). |
Stillwater bridge facility | |
Disclosure of detailed information about borrowings [line items] | |
Schedule of the summary of borrowings | Terms of the Stillwater Bridge Facilities Facility: A: US$750 million bridge to equity B: US$300 million bridge to cash C: US$1.6 billion bridge to debt Interest rate: LIBOR Interest rate margin: Months 1 - 3: 3.25% per annum Months 4 - 6: 4.25% per annum or 5.25% per annum if net debt to EBITDA > 2.0x Months 7 - 9: 5.25% per annum or 6.25% per annum if net debt to EBITDA > 2.0x Months 10 - 12: 6.25% per annum or 7.25% per annum if net debt to EBITDA > 2.0x Term of loan: Facility A and B: Earlier of nine months from completion of the Stillwater acquisition and 31 October 2017 Facility C: 364 days from completion of the Stillwater acquisition Borrowers: Sibanye Gold Limited and Thor Mergeco Inc Security and/or guarantors: The facility was unsecured and guaranteed by Sibanye Gold Limited, Thor Mergeco Inc, Kroondal Operations, Rand Uranium and SRPM. |
Schedule of the rollforward of borrowings | Figures in million - SA rand Loans raised - 34,000.3 - Loans repaid - (33,304.0) - Gain on foreign exchange differences - (514.5) - Foreign currency translation - (181.8) - Balance at end of the year - - - |
Other borrowings | |
Disclosure of detailed information about borrowings [line items] | |
Schedule of the rollforward of borrowings | Figures in million - SA rand Balance at beginning of the year 478.7 749.5 - Loans raised 10,798.6 14,721.5 7,472.6 Loans repaid (10,854.6) (14,992.3) (6,723.1) Unwinding of amortised cost 2.9 - - Balance at end of the year 425.6 478.7 749.5 |
ENVIRONMENTAL REHABILITATION _4
ENVIRONMENTAL REHABILITATION OBLIGATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Provision for decommissioning, restoration and rehabilitation costs [abstract] | |
Schedule of environmental rehabilitation obligation activity | Figures in million - SA rand Notes Balance at beginning of the year 4,678.7 3,982.2 2,411.0 Interest charge 1 398.8 357.1 291.4 Payment of environmental rehabilitation obligation 2 (32.3) (26.9) - Change in estimates charged to profit or loss 3 (90.4) 248.9 97.5 Change in estimates capitalised 3 618.8 (177.7) 472.5 Environmental rehabilitation obligation on acquisition of subsidiaries 672.7 312.1 709.8 Foreign currency translation 47.9 (17.0) - Balance at end of the year 6,294.2 4,678.7 3,982.2 Environmental rehabilitation obligation and other provisions consists of: Environmental rehabilitation obligation 6,176.2 4,678.7 3,982.2 Other provisions 118.0 - - Environmental rehabilitation obligation and other provisions 6,294.2 4,678.7 3,982.2 1 The provision is calculated based on the discount rates of 6.2% – 9.8% (2017 : 7.2% - 9.7% and 2016: 7.8% - 9.7%). 2 The cost of ongoing current programmes to prevent and control environmental disturbances, including reclamation activities, is charged to cost of sales as incurred . 3 Changes in estimates are defined as changes in reserves and corresponding changes in life of mine, changes in discount rates, and changes in laws and regulations governing environmental matters. |
OCCUPATIONAL HEALTHCARE OBLIG_2
OCCUPATIONAL HEALTHCARE OBLIGATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
OCCUPATIONAL HEALTHCARE OBLIGATION | |
Schedule of estimated costs and discounted using a risk-free rate | On 3 May 2018, the Working Group, including the Group, agreed to a class action settlement with the claimants of approximately R5 billion The estimated costs were reviewed at 31 December 2018 and discounted using a risk-free rate. As a result, a change in estimate of R15.4 million was recognised in profit or loss. The ultimate outcome of these matters remains uncertain, with a possible failure to obtain the requisite final court approval for the settlement, even though the High Court granted the first leg of the approval application on 13 December 2018. This provision is consequently subject to adjustment in the future, depending on the progress of the Working Group discussions, stakeholder engagements and the ongoing legal proceedings Figures in million - SA rand Note Balance at beginning of the year 1,153.3 - - Occupational healthcare obligation recognised - 1,077.2 - Interest charge 105.4 46.4 - Change in estimate charge to profit or loss 15.4 29.7 - Balance at the end of the year 1,274.1 1,153.3 - Reconciliation of the non-current and current portion of the occupational healthcare obligation: Occupational healthcare obligation 1,274.1 1,153.3 - Current portion of occupational healthcare obligation (109.9) (0.8) - Non-current portion of occupational healthcare obligation 1,164.2 1,152.5 - |
DEFERRED REVENUE (Tables)
DEFERRED REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Contract liabilities [abstract] | |
Schedule of Changes in Deferred Revenue | Figures in million - SA rand Note Deferred revenue advance received 6,555.4 - - Deferred revenue recognised during the period (160.3) - - Interest charge 160.3 - - Balance at the end of the year 6,555.4 - - Reconciliation of the non-current and current portion of the deferred revenue: Deferred revenue 6,555.4 - - Current portion of deferred revenue (30.1) - - Non-current portion of deferred revenue 6,525.3 - - |
TRADE AND OTHER PAYABLES (Table
TRADE AND OTHER PAYABLES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
TRADE AND OTHER PAYABLES | |
Schedule of Trade and Other Payables | . Figures in million - SA rand Trade creditors 2,200.0 1,728.1 1,121.3 Accruals and other creditors 2,952.7 2,380.6 1,971.4 Other 85.7 167.7 109.4 Financial liabilities 5,238.4 4,276.4 3,202.1 Payroll creditors 1,465.3 1,253.5 867.7 Leave pay accrual 1,152.6 1,160.5 1,110.7 Total trade and other payables 7,856.3 6,690.4 5,180.5 |
CASH GENERATED BY OPERATIONS (T
CASH GENERATED BY OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
CASH GENERATED BY OPERATIONS | |
Schedule of cash generated by operations | Figures in million - SA rand Notes (Loss)/profit for the year (2,520.7) (4,433.1) 3,042.7 Royalties 212.6 398.5 566.6 Mining and income tax 1,083.8 (2,946.6) 1,202.1 Interest income (482.1) (415.5) (331.4) Finance expense 3,134.7 2,971.8 903.1 (Loss)/profit before interest, royalties and tax 1,428.3 (4,424.9) 5,383.1 Non-cash and other adjusting items: Amortisation and depreciation 6,613.8 5,699.7 4,041.9 Share-based payments 299.4 231.9 496.2 (Gain)/loss on financial instruments (1,591.3) 764.0 1,094.6 Gain on foreign exchange differences (241.3) (546.8) (418.0) Share of results of equity-accounted investees after tax (344.2) (291.6) (13.3) Impairments 3,041.4 4,411.0 1,381.1 Gain on derecognition of borrowings and derivative financial instrument 24.4, 24.5 (230.0) - - Occupational healthcare expense 15.4 1,106.9 - Gain on acquisition - - (2,178.6) Other (282.5) 147.7 49.3 Total cash generated by operations 8,709.0 7,097.9 9,836.3 |
CHANGE IN WORKING CAPITAL (Tabl
CHANGE IN WORKING CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Change In Working Capital [Abstract] | |
Schedule of the change in working capital | Figures in million - SA rand Inventories (924.8) (937.7) (35.5) Trade and other receivables (461.0) (214.9) (220.0) Trade and other payables 315.8 630.3 17.9 Total change in working capital (1,070.0) (522.3) (237.6) |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
COMMITMENTS | |
Schedule of commitments | Figures in million - SA rand Capital expenditure Authorised 4,411.7 5,397.3 3,757.4 Kloof 970.2 1,200.8 1,256.0 Driefontein 830.9 724.5 780.4 Beatrix 218.0 210.1 130.0 Cooke 195.5 195.5 207.2 Burnstone 40.4 445.9 704.0 Kroondal 131.6 69.8 260.7 Platinum Mile 72.3 72.3 5.0 Rustenburg operation 1,830.0 2,478.3 413.0 Other 122.8 0.1 1.1 Contracted for 281.8 346.6 321.2 Other guarantees 266.7 266.7 55.5 |
RELATED-PARTY TRANSACTIONS (Tab
RELATED-PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
RELATED-PARTY TRANSACTIONS | |
Schedule of transactions and balances between the Group and its related-parties | Figures in million - SA rand Note Rand Refinery Gold sales 616.2 - - Refining fees paid (29.1) (32.5) (44.4) Interest income - 40.2 Loan receivable - - 403.9 |
Schedule of key management remuneration, fees and share ownership | The executive directors and prescribed officers were paid the following remuneration during the year: Figures in thousands - SA rand Salary Cash bonus accrued for 2018 paid in 2019 Accrual of Forfeitable Share awards and Conditional Share proceeds Pension scheme total contributions Expense allowance and other benefits Executive directors Neal Froneman 1 11,722 8,619 14,177 993 249 35,760 52,656 Charl Keyter 6,033 4,237 6,521 862 44 17,697 23,440 Prescribed officers - Chris Bateman 2 7,944 4,160 2,773 291 1,717 16,885 7,269 Shadwick Bessit 3 336 176 117 59 - 688 - Hartley Dikgale 3,560 2,022 2,919 260 - 8,761 11,768 Dawie Mostert 3,674 2,352 3,585 501 - 10,112 12,044 Themba Nkosi 3,648 2,009 1,339 269 - 7,265 6,869 Wayne Robinson 4,330 2,440 3,804 351 - 10,925 9,268 Richard Stewart 3,774 2,500 6,293 419 - 12,986 11,288 Robert van Niekerk 4,868 3,221 4,878 541 - 13,508 17,424 Total 49,889 31,736 46,406 4,546 2,010 134,587 152,026 Remuneration may differ from that presented in the Integrated Annual Report 2018. 1 Entered into a dual service contract with effect 1 May 2018. Remuneration paid in US dollars was converted at the average exchange rate of R13.87/US$ for the eight months ended 31 December 2018. 2 Remuneration paid in US dollars was converted at the average exchange rate of R13.24/US$ for the year ended 31 December 2018. The other (cash) benefit represents the contracted payout of benefits arising from the treatment of unvested share-based remuneration in respect of the Stillwater Mining Company share plan, which comprised shares granted in the form of time-based restricted stock unit awards and performance-based restricted stock unit awards. In accordance with the change of control provisions of the Stillwater Mining Company share plan, on the acquisition of Stillwater Mining Company by Sibanye-Stillwater all shares (i.e. time-based restricted stock unit awards and performance-based restricted stock unit awards) were converted to a cash settlement at US$18/share with phased payments. No further performance criteria were to be applied with settlement subject to the prescribed officer remaining in the employment of Sibanye-Stillwater at 31 December to qualify for the payment. The final tranche is payable at 31 December 2019. 3 Appointed as prescribed officer 1 December 2018. The non-executive directors were paid the foll owing fees during the year: Figures in thousands - SA rand Directors fees Committee fees Expense allowance Tim Cumming 954 589 155 1,698 1,428 Savannah Danson 953 528 - 1,480 745 Barry Davison 953 696 - 1,649 1,555 Rick Menell 954 742 27 1,723 1,610 Sello Moloko 1,802 - - 1,802 1,725 Nkosemntu Nika 922 513 - 1,435 1,285 Keith Rayner 954 695 74 1,723 1,545 Sue van der Merwe 954 536 - 1,491 1,223 Jerry Vilakazi 945 344 - 1,289 1,224 Total 9,392 4,643 257 14,291 12,340 The directors’ and prescribed officers’ share ownership at 31 December 2018 was: Number of shares % Executive directors Neal Froneman 1 4,555,954 3,342,087 0.20 0.15 Charl Keyter 1 1,530,119 1,212,745 0.07 0.06 Non-executive directors Tim Cumming 1 106 102 - - Barry Davison 1 1,567,710 1,507,414 0.07 0.07 Rick Menell 1 108,625 104,448 - - Sello Moloko 1 111,534 107,245 - - Keith Rayner 1 68,992 66,339 - - Sue van der Merwe 1 1,028 988 - - Total share ownership by directors 7,944,068 6,341,368 Prescribed officers Chris Bateman 1 32,747 - - - Shadwick Bessit 1 219,782 - 0.01 - Hartley Dikgale 1 114,744 292,785 0.01 0.01 Dawie Mostert 1 50,743 - - - Themba Nkosi 1 19,107 18,370 - - Wayne Robinson 1 39,321 346 - - Richard Stewart 1 421,653 102,971 0.02 - Robert van Niekerk 1 271,537 176,266 0.01 0.01 Total 9,113,702 6,932,106 1 Share ownership at the date of this report is unchanged. |
ACCOUNTING POLICIES (Details)
ACCOUNTING POLICIES (Details) - region | 12 Months Ended | |
Dec. 31, 2018 | Oct. 19, 2016 | |
Accounting policies | ||
Number of regions | 2 | |
Mimosa | ||
Accounting policies | ||
Proportion of ownership interest in associate | 50.00% | |
Mimosa | Zimbabwe | ||
Accounting policies | ||
Proportion of ownership interest in joint operation | 50.00% | |
Newshelf 1335 Proprietary Limited | Rustenburg Mine Employees Trust | ||
Accounting policies | ||
Percentage of stake held | 30.40% | |
Newshelf 1335 Proprietary Limited | Rustenburg Mine Community Development Trust | ||
Accounting policies | ||
Percentage of stake held | 24.80% | |
Newshelf 1335 Proprietary Limited | Bakgatla Ba Kgafela Investment Holdings | ||
Accounting policies | ||
Percentage of stake held | 24.80% | |
Newshelf 1335 Proprietary Limited | Siyanda Resources Proprietary Limited | ||
Accounting policies | ||
Percentage of stake held | 20.00% | |
Sibanye Rustenburg Platinum Mines Proprietary Limited Subsidiary | North West Province | ||
Accounting policies | ||
Proportion of ownership interest in subsidiary | 91.70% | |
Sibanye Rustenburg Platinum Mines Proprietary Limited Subsidiary | Newshelf 1335 Proprietary Limited | ||
Accounting policies | ||
Percentage of voting equity interests acquired | 26.00% | |
DRDGOLD Limited | ||
Accounting policies | ||
Potential ownership, as a percent | 50.10% | |
Shares option, price discount, as a percent | 10.00% | |
Kroondal Mine | ||
Accounting policies | ||
Proportion of ownership interest in joint operation | 50.00% | |
Kroondal Mine | South Africa | ||
Accounting policies | ||
Proportion of ownership interest in joint operation | 50.00% |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEGMENT REPORTING | |||
Revenue | R 50,656.4 | R 45,911.6 | R 31,240.7 |
Cost of sales, before amortisation and depreciation | (41,515.2) | (36,482.7) | (20,709.1) |
Net other cash costs | (771.8) | (383.8) | |
Amortisation and depreciation | (6,613.8) | (5,699.7) | (4,041.9) |
Interest income | 482.1 | 415.5 | 331.4 |
Finance expense | (3,134.7) | (2,971.8) | (903.1) |
Share-based payments | (299.4) | (231.9) | (496.2) |
Net other costs | 3,284 | (779.1) | |
Non-underlying items | (3,311.9) | (6,759.1) | |
Royalties | (212.6) | (398.5) | (566.6) |
Current taxation | (95.3) | (504.2) | (1,111.8) |
Deferred taxation | (988.5) | 3,450.8 | (90.3) |
(Loss)/profit for the year | (2,520.7) | (4,433.1) | 3,042.7 |
Adjusted EBITDA | 8,369.4 | 9,045.1 | 10,270.4 |
Attributable to: | |||
Owners of the parent | (2,499.6) | (4,437.4) | 3,473.3 |
Non-controlling interests | (21.1) | 4.3 | R (430.6) |
Sustaining capital expenditure | (1,271.2) | (1,325.6) | |
Ore reserve development | (3,530.4) | (3,291.6) | |
Growth projects | (2,279.2) | (1,481.6) | |
Total capital expenditure | (7,080.8) | R (6,098.8) | |
Period of time for which results are included | 8 months | ||
Underground Mining Activities [Member] | |||
SEGMENT REPORTING | |||
Revenue | 38,605.7 | R 37,790.3 | |
Cost of sales, before amortisation and depreciation | (30,248.7) | (29,345.3) | |
Surface Mining Activities [Member] | |||
SEGMENT REPORTING | |||
Revenue | 4,608 | 3,582 | |
Cost of sales, before amortisation and depreciation | (4,070) | (2,760.5) | |
Recycling Activities [Member] | |||
SEGMENT REPORTING | |||
Revenue | 7,442.7 | 4,539.3 | |
Cost of sales, before amortisation and depreciation | R (7,196.5) | (4,376.9) | |
DRD Gold Segment [Member] | |||
Attributable to: | |||
Period of time for which results are included | 5 months | ||
Kroondal | |||
Attributable to: | |||
Period of time for which results are included | 9 months | ||
Platinum Mile | |||
Attributable to: | |||
Period of time for which results are included | 9 months | ||
Mimosa | |||
Attributable to: | |||
Period of time for which results are included | 9 months | ||
Rustenburg operations | |||
Attributable to: | |||
Period of time for which results are included | 2 months | ||
South Africa Region [Member] | |||
SEGMENT REPORTING | |||
Revenue | R 34,810.3 | 36,750 | R 31,240.7 |
Cost of sales, before amortisation and depreciation | (29,794.3) | (29,471) | (20,709.1) |
Net other cash costs | (771.8) | (376.5) | (261.2) |
Amortisation and depreciation | (4,379.4) | (4,268.3) | (4,041.9) |
Interest income | 398.9 | 363.7 | 331.4 |
Finance expense | (1,177.3) | (1,517.7) | (903.1) |
Share-based payments | (263.7) | (227) | (496.2) |
Net other costs | 3,215.2 | (756) | (897.4) |
Non-underlying items | (3,101.2) | (6,688.2) | 548.2 |
Royalties | (212.6) | (398.5) | (566.6) |
Current taxation | (333.6) | (405.3) | (1,111.8) |
Deferred taxation | 807.2 | 533.8 | (90.3) |
(Loss)/profit for the year | (802.3) | (6,461.2) | 3,042.7 |
Adjusted EBITDA | 4,244.2 | 6,902.5 | 10,270.4 |
Attributable to: | |||
Owners of the parent | (781.2) | (6,465.5) | 3,473.3 |
Non-controlling interests | (21.1) | 4.3 | (430.6) |
Sustaining capital expenditure | (1,011) | (1,098.7) | (1,010.5) |
Ore reserve development | (2,531.5) | (2,753) | (2,394.4) |
Growth projects | (705.2) | (593.3) | (746.3) |
Total capital expenditure | (4,247.7) | (4,445) | (4,151.2) |
South Africa Region [Member] | Underground Mining Activities [Member] | |||
SEGMENT REPORTING | |||
Revenue | 30,202.3 | 33,168 | 28,026.5 |
Cost of sales, before amortisation and depreciation | (25,724.3) | (26,710.5) | (18,800.6) |
South Africa Region [Member] | Surface Mining Activities [Member] | |||
SEGMENT REPORTING | |||
Revenue | 4,608 | 3,582 | 3,214.2 |
Cost of sales, before amortisation and depreciation | (4,070) | (2,760.5) | (1,908.5) |
South Africa Region [Member] | SA Gold operations | |||
SEGMENT REPORTING | |||
Revenue | 19,656.7 | 23,473.6 | 27,501.3 |
Cost of sales, before amortisation and depreciation | (17,698.3) | (17,879.2) | (17,346) |
Net other cash costs | (596) | (285.9) | (235.2) |
Amortisation and depreciation | (3,305) | (3,507.5) | (3,814.7) |
Interest income | 315.4 | 205.7 | 289.6 |
Finance expense | (754.9) | (1,182.2) | (806.2) |
Share-based payments | (263.7) | (227) | (255.9) |
Net other costs | 2,488.9 | 296.5 | (794.1) |
Non-underlying items | (3,071.5) | (6,535.8) | (1,548.5) |
Royalties | (50.6) | (325.3) | (528) |
Current taxation | (55.1) | (385.4) | (1,111.3) |
Deferred taxation | 999.8 | 549.2 | (164.5) |
(Loss)/profit for the year | (2,334.3) | (5,803.5) | 1,186.5 |
Adjusted EBITDA | 1,362.4 | 5,308.5 | 9,920.1 |
Attributable to: | |||
Owners of the parent | (2,310.5) | (5,804.6) | 1,619.4 |
Non-controlling interests | (23.8) | 1.1 | (432.9) |
Sustaining capital expenditure | (546.6) | (531.1) | (683.5) |
Ore reserve development | (2,053.6) | (2,288) | (2,394.4) |
Growth projects | (647.5) | (591) | (746.3) |
Total capital expenditure | (3,247.7) | (3,410.1) | (3,824.2) |
South Africa Region [Member] | SA Gold operations | Underground Mining Activities [Member] | |||
SEGMENT REPORTING | |||
Revenue | 16,157.2 | 21,143.2 | 24,608.4 |
Cost of sales, before amortisation and depreciation | (14,592.9) | (16,032.2) | (15,655.1) |
South Africa Region [Member] | SA Gold operations | Surface Mining Activities [Member] | |||
SEGMENT REPORTING | |||
Revenue | 3,499.5 | 2,330.4 | 2,892.9 |
Cost of sales, before amortisation and depreciation | (3,105.4) | (1,847) | (1,690.9) |
South Africa Region [Member] | SA PGM operations | |||
SEGMENT REPORTING | |||
Revenue | 15,153.6 | 13,276.4 | 3,739.4 |
Cost of sales, before amortisation and depreciation | (12,096) | (11,591.8) | (3,363.1) |
Net other cash costs | (175.8) | (90.6) | (26) |
Amortisation and depreciation | (1,074.4) | (760.8) | (227.2) |
Interest income | 83.5 | 158 | 41.8 |
Finance expense | (422.4) | (335.5) | (96.9) |
Share-based payments | (240.3) | ||
Net other costs | 726.3 | (1,052.5) | (103.3) |
Non-underlying items | (29.7) | (152.4) | 2,096.7 |
Royalties | (162) | (73.2) | (38.6) |
Current taxation | (278.5) | (19.9) | (0.5) |
Deferred taxation | (192.6) | (15.4) | 74.2 |
(Loss)/profit for the year | 1,532 | (657.7) | 1,856.2 |
Adjusted EBITDA | 2,881.8 | 1,594 | 350.3 |
Attributable to: | |||
Owners of the parent | 1,529.3 | (660.9) | 1,853.9 |
Non-controlling interests | 2.7 | 3.2 | 2.3 |
Sustaining capital expenditure | (464.4) | (567.6) | (327) |
Ore reserve development | (477.9) | (465) | |
Growth projects | (57.7) | (2.3) | |
Total capital expenditure | (1,000) | (1,034.9) | (327) |
South Africa Region [Member] | SA PGM operations | Underground Mining Activities [Member] | |||
SEGMENT REPORTING | |||
Revenue | 14,045.1 | 12,024.8 | 3,418.1 |
Cost of sales, before amortisation and depreciation | (11,131.4) | (10,678.3) | (3,145.5) |
South Africa Region [Member] | SA PGM operations | Surface Mining Activities [Member] | |||
SEGMENT REPORTING | |||
Revenue | 1,108.5 | 1,251.6 | 321.3 |
Cost of sales, before amortisation and depreciation | (964.6) | (913.5) | (217.6) |
US Region/ Stillwater2 | |||
SEGMENT REPORTING | |||
Revenue | 15,872.8 | 9,161.6 | |
Cost of sales, before amortisation and depreciation | (11,720.9) | (7,011.7) | |
Net other cash costs | (7.3) | ||
Amortisation and depreciation | (2,234.4) | (1,431.4) | |
Interest income | 83.2 | 51.8 | |
Finance expense | (1,797.1) | (1,454.1) | |
Share-based payments | (35.7) | (4.9) | |
Net other costs | 68.8 | (23.1) | |
Non-underlying items | (210.7) | (70.9) | |
Current taxation | 238.3 | (98.9) | |
Deferred taxation | (1,795.7) | 2,917 | |
(Loss)/profit for the year | (1,531.4) | 2,028.1 | |
Adjusted EBITDA | 4,151.9 | 2,142.6 | |
Attributable to: | |||
Owners of the parent | (1,531.4) | 2,028.1 | |
Sustaining capital expenditure | (260.2) | (226.9) | |
Ore reserve development | (998.9) | (538.6) | |
Growth projects | (1,574) | (888.3) | |
Total capital expenditure | (2,833.1) | R (1,653.8) | |
Period of time for which results are included | 8 months | ||
US Region/ Stillwater2 | Underground Mining Activities [Member] | |||
SEGMENT REPORTING | |||
Revenue | 8,430.1 | R 4,622.3 | |
Cost of sales, before amortisation and depreciation | (4,524.4) | (2,634.8) | |
US Region/ Stillwater2 | Recycling Activities [Member] | |||
SEGMENT REPORTING | |||
Revenue | 7,442.7 | 4,539.3 | |
Cost of sales, before amortisation and depreciation | (7,196.5) | (4,376.9) | |
Operating segments | South Africa Region [Member] | Driefontein | |||
SEGMENT REPORTING | |||
Revenue | 5,111.2 | 8,076.9 | 9,401.1 |
Cost of sales, before amortisation and depreciation | (5,709.3) | (6,203.5) | (5,566.6) |
Net other cash costs | (50.2) | (32.4) | (52) |
Amortisation and depreciation | (1,200.9) | (1,126.5) | (1,012.9) |
Interest income | 94.3 | 77.6 | 70.8 |
Finance expense | (234.9) | (220.9) | (143.1) |
Share-based payments | (0.2) | (2.8) | (16.5) |
Net other costs | (362.8) | 24.1 | (174.1) |
Non-underlying items | (2,157.6) | (74.9) | (20.8) |
Royalties | 1.4 | (77.8) | (204.8) |
Current taxation | 63.9 | (14.8) | (472.3) |
Deferred taxation | 922.9 | (12) | (64.3) |
(Loss)/profit for the year | (3,522.2) | 412.8 | 1,744.5 |
Adjusted EBITDA | (648.3) | 1,841 | 3,782.5 |
Attributable to: | |||
Owners of the parent | (3,522.2) | 412.8 | 1,744.5 |
Sustaining capital expenditure | (228.1) | (235) | (218.5) |
Ore reserve development | (817.1) | (876.1) | (779) |
Growth projects | (0.4) | (44.4) | (54.1) |
Total capital expenditure | (1,045.6) | (1,155.5) | (1,051.6) |
Operating segments | South Africa Region [Member] | Driefontein | Underground Mining Activities [Member] | |||
SEGMENT REPORTING | |||
Revenue | 4,782.4 | 7,148.1 | 8,105.3 |
Cost of sales, before amortisation and depreciation | (5,386.7) | (5,488.9) | (4,852.1) |
Operating segments | South Africa Region [Member] | Driefontein | Surface Mining Activities [Member] | |||
SEGMENT REPORTING | |||
Revenue | 328.8 | 928.8 | 1,295.8 |
Cost of sales, before amortisation and depreciation | (322.6) | (714.6) | (714.5) |
Operating segments | South Africa Region [Member] | Kloof | |||
SEGMENT REPORTING | |||
Revenue | 8,131.7 | 8,845.1 | 8,890.9 |
Cost of sales, before amortisation and depreciation | (6,364.8) | (5,762.7) | (5,041) |
Net other cash costs | (44.8) | (37.9) | (49.2) |
Amortisation and depreciation | (1,378.8) | (1,404.5) | (1,190.7) |
Interest income | 72 | 71.1 | 62.3 |
Finance expense | (245.9) | (246.9) | (156) |
Share-based payments | (1.8) | (13.7) | |
Net other costs | (110.3) | 23.4 | (138.7) |
Non-underlying items | 27.2 | (50.4) | 15.7 |
Royalties | (29) | (189.3) | (194.3) |
Current taxation | (75.3) | (350.1) | (422) |
Deferred taxation | 313.1 | 61.4 | (148.5) |
(Loss)/profit for the year | 295.1 | 957.4 | 1,614.8 |
Adjusted EBITDA | 1,722.1 | 3,044.5 | 3,800.7 |
Attributable to: | |||
Owners of the parent | 295.1 | 957.4 | 1,614.8 |
Sustaining capital expenditure | (220.6) | (210.2) | (261.2) |
Ore reserve development | (839.6) | (876.2) | (912.9) |
Growth projects | (141.8) | (147.1) | (130.1) |
Total capital expenditure | (1,202) | (1,233.5) | (1,304.2) |
Operating segments | South Africa Region [Member] | Kloof | Underground Mining Activities [Member] | |||
SEGMENT REPORTING | |||
Revenue | 6,937.9 | 7,985.3 | 8,012.6 |
Cost of sales, before amortisation and depreciation | (5,352.2) | (5,109.5) | (4,609.4) |
Operating segments | South Africa Region [Member] | Kloof | Surface Mining Activities [Member] | |||
SEGMENT REPORTING | |||
Revenue | 1,193.8 | 859.8 | 878.3 |
Cost of sales, before amortisation and depreciation | (1,012.6) | (653.2) | (431.6) |
Operating segments | South Africa Region [Member] | Beatrix | |||
SEGMENT REPORTING | |||
Revenue | 4,601.3 | 4,875.8 | 5,883.9 |
Cost of sales, before amortisation and depreciation | (3,910.8) | (3,952.5) | (3,753.4) |
Net other cash costs | (37.2) | (13.3) | (44.6) |
Amortisation and depreciation | (635.3) | (696.2) | (818) |
Interest income | 40 | 18.4 | 34.1 |
Finance expense | (143.6) | (128.4) | (77.6) |
Share-based payments | (1.3) | (9.1) | |
Net other costs | (57.8) | (34.7) | (125.9) |
Non-underlying items | (156.6) | (675.3) | (12.6) |
Royalties | (18.8) | (44.5) | (113.2) |
Current taxation | 5.5 | (12.4) | (223) |
Deferred taxation | 127.8 | 245.3 | 19.4 |
(Loss)/profit for the year | (185.5) | (419.1) | 760 |
Adjusted EBITDA | 653.3 | 910 | 2,085.9 |
Attributable to: | |||
Owners of the parent | (185.5) | (419.1) | 760 |
Sustaining capital expenditure | (82.6) | (63.1) | (84.8) |
Ore reserve development | (396.9) | (482) | (542.9) |
Growth projects | (1.7) | (0.5) | (0.7) |
Total capital expenditure | (481.2) | (545.6) | (628.4) |
Operating segments | South Africa Region [Member] | Beatrix | Underground Mining Activities [Member] | |||
SEGMENT REPORTING | |||
Revenue | 4,467.8 | 4,753.1 | 5,626.9 |
Cost of sales, before amortisation and depreciation | (3,841) | (3,852.1) | (3,567.4) |
Operating segments | South Africa Region [Member] | Beatrix | Surface Mining Activities [Member] | |||
SEGMENT REPORTING | |||
Revenue | 133.5 | 122.7 | 257 |
Cost of sales, before amortisation and depreciation | (69.8) | (100.4) | (186) |
Operating segments | South Africa Region [Member] | Cooke | |||
SEGMENT REPORTING | |||
Revenue | 841.8 | 1,676.5 | 3,362.2 |
Cost of sales, before amortisation and depreciation | (693.4) | (1,960.5) | (2,985) |
Net other cash costs | (573.4) | (243.4) | (87.1) |
Amortisation and depreciation | (5.7) | (256.4) | (770.8) |
Interest income | 41.7 | 12.5 | 32.5 |
Finance expense | (78.1) | (76.7) | (75.8) |
Net other costs | (106.2) | (76.9) | (27.9) |
Non-underlying items | (50.6) | (3,664.7) | (1,423.9) |
Royalties | (4.2) | (13.7) | (15.7) |
Current taxation | 0.8 | (1.1) | |
Deferred taxation | 1.5 | 35.3 | |
(Loss)/profit for the year | (627.3) | (4,601.8) | (1,957.3) |
Adjusted EBITDA | (425) | (527.4) | 290.1 |
Attributable to: | |||
Owners of the parent | (627.3) | (4,601.8) | (1,523.5) |
Non-controlling interests | (433.8) | ||
Sustaining capital expenditure | (8.5) | (48.9) | |
Ore reserve development | (53.7) | (159.6) | |
Growth projects | (11.7) | (40.7) | |
Total capital expenditure | (73.9) | (249.2) | |
Operating segments | South Africa Region [Member] | Cooke | Underground Mining Activities [Member] | |||
SEGMENT REPORTING | |||
Revenue | 45.9 | 1,257.4 | 2,900.4 |
Cost of sales, before amortisation and depreciation | (13) | (1,581.7) | (2,626.2) |
Operating segments | South Africa Region [Member] | Cooke | Surface Mining Activities [Member] | |||
SEGMENT REPORTING | |||
Revenue | 795.9 | 419.1 | 461.8 |
Cost of sales, before amortisation and depreciation | (680.4) | (378.8) | (358.8) |
Operating segments | South Africa Region [Member] | DRD Gold Segment [Member] | |||
SEGMENT REPORTING | |||
Revenue | 1,047.5 | ||
Cost of sales, before amortisation and depreciation | (1,020) | ||
Net other cash costs | 8.7 | ||
Amortisation and depreciation | (57.9) | ||
Interest income | 26.1 | ||
Finance expense | (33) | ||
Share-based payments | (3.2) | ||
Net other costs | (419.1) | ||
Non-underlying items | (4.6) | ||
Current taxation | (3) | ||
Deferred taxation | (132) | ||
(Loss)/profit for the year | (590.5) | ||
Adjusted EBITDA | 36.2 | ||
Attributable to: | |||
Owners of the parent | (565.8) | ||
Non-controlling interests | (24.7) | ||
Sustaining capital expenditure | (14.5) | ||
Growth projects | (303.3) | ||
Total capital expenditure | (317.8) | ||
Operating segments | South Africa Region [Member] | DRD Gold Segment [Member] | Surface Mining Activities [Member] | |||
SEGMENT REPORTING | |||
Revenue | 1,047.5 | ||
Cost of sales, before amortisation and depreciation | (1,020) | ||
Operating segments | South Africa Region [Member] | Kroondal | |||
SEGMENT REPORTING | |||
Revenue | 3,584.4 | 2,861.5 | 1,973.3 |
Cost of sales, before amortisation and depreciation | (2,739.4) | (2,395.9) | (1,689.8) |
Net other cash costs | (52.7) | (34.7) | (20.6) |
Amortisation and depreciation | (370.4) | (239) | (162.9) |
Interest income | 60.3 | 57 | 34.6 |
Finance expense | (130.5) | (90.7) | (70.6) |
Net other costs | 137.6 | (181.7) | 19.4 |
Non-underlying items | 0.4 | (9) | (1.3) |
Royalties | (5.5) | (5.6) | (10.2) |
Deferred taxation | (168.9) | (24.8) | 16.9 |
(Loss)/profit for the year | 315.3 | (62.9) | 88.8 |
Adjusted EBITDA | 792.3 | 430.9 | 262.9 |
Attributable to: | |||
Owners of the parent | 315.3 | (62.9) | 88.8 |
Sustaining capital expenditure | (141.4) | (190.5) | (175.8) |
Total capital expenditure | (141.4) | (190.5) | (175.8) |
Operating segments | South Africa Region [Member] | Kroondal | Underground Mining Activities [Member] | |||
SEGMENT REPORTING | |||
Revenue | 3,584.4 | 2,861.5 | 1,973.3 |
Cost of sales, before amortisation and depreciation | (2,739.4) | (2,395.9) | (1,689.8) |
Operating segments | South Africa Region [Member] | Platinum Mile | |||
SEGMENT REPORTING | |||
Revenue | 196.7 | 194.1 | 131.1 |
Cost of sales, before amortisation and depreciation | (152.7) | (129.8) | (90.8) |
Net other cash costs | (1.2) | (12.6) | (0.7) |
Amortisation and depreciation | (3) | (2.6) | (1.2) |
Interest income | 1.3 | 2.1 | (9) |
Net other costs | 0.7 | 0.7 | 0.1 |
Current taxation | (9.3) | ||
Deferred taxation | (9.2) | (4.3) | (11.6) |
(Loss)/profit for the year | 32.6 | 38.3 | 17.9 |
Adjusted EBITDA | 42.8 | 51.7 | 39.6 |
Attributable to: | |||
Owners of the parent | 29.9 | 35.1 | 15.6 |
Non-controlling interests | 2.7 | 3.2 | 2.3 |
Sustaining capital expenditure | (9.5) | (11) | (1.3) |
Growth projects | (57.1) | (2.3) | |
Total capital expenditure | (66.6) | (13.3) | (1.3) |
Operating segments | South Africa Region [Member] | Platinum Mile | Surface Mining Activities [Member] | |||
SEGMENT REPORTING | |||
Revenue | 196.7 | 194.1 | 131.1 |
Cost of sales, before amortisation and depreciation | (152.7) | (129.8) | (90.8) |
Operating segments | South Africa Region [Member] | Mimosa | |||
SEGMENT REPORTING | |||
Revenue | 1,857.5 | 1,687.7 | 1,223.2 |
Cost of sales, before amortisation and depreciation | (1,235.7) | (1,200.5) | (969) |
Net other cash costs | (6.7) | 34.2 | 192.5 |
Amortisation and depreciation | (191.6) | (211.7) | (223.7) |
Interest income | 0.1 | 8.8 | 0.5 |
Finance expense | (13) | (10) | (11.2) |
Net other costs | (9.2) | (11) | (4.8) |
Royalties | (57.6) | (60.4) | (82.9) |
Current taxation | (103.4) | (59.3) | (22.8) |
Deferred taxation | (29.9) | (2.8) | 13.1 |
(Loss)/profit for the year | 210.5 | 175 | 114.9 |
Adjusted EBITDA | 615.1 | 521.4 | 446.7 |
Attributable to: | |||
Owners of the parent | 210.5 | 175 | 114.9 |
Sustaining capital expenditure | (170.9) | (222.5) | (159.8) |
Total capital expenditure | (170.9) | (222.5) | (159.8) |
Operating segments | South Africa Region [Member] | Mimosa | Underground Mining Activities [Member] | |||
SEGMENT REPORTING | |||
Revenue | 1,857.5 | 1,687.7 | 1,223.2 |
Cost of sales, before amortisation and depreciation | (1,235.7) | (1,200.5) | (969) |
Operating segments | South Africa Region [Member] | Rustenburg operations | |||
SEGMENT REPORTING | |||
Revenue | 11,372.5 | 10,220.8 | 1,656 |
Cost of sales, before amortisation and depreciation | (9,203.9) | (9,066.1) | (1,582.5) |
Net other cash costs | (121.1) | (41.8) | 3.2 |
Amortisation and depreciation | (697.1) | (514.7) | (58.6) |
Interest income | 20.2 | 96.6 | 8.2 |
Finance expense | (1,890.6) | (244.9) | (26.2) |
Net other costs | 4,348 | (893.1) | (95.4) |
Non-underlying items | (30.7) | (134.9) | 2,105.2 |
Royalties | (156.5) | (67.6) | (28.3) |
Current taxation | (277.4) | (10) | |
Deferred taxation | (15.5) | 12.7 | 68.1 |
(Loss)/profit for the year | 3,347.9 | (643) | 2,049.7 |
Adjusted EBITDA | 2,047.5 | 1,112.9 | 76.7 |
Attributable to: | |||
Owners of the parent | 3,347.9 | (643) | 2,049.7 |
Sustaining capital expenditure | (313.5) | (366.1) | (148.7) |
Ore reserve development | (477.9) | (465) | |
Growth projects | (0.6) | ||
Total capital expenditure | (792) | (831.1) | (148.7) |
Operating segments | South Africa Region [Member] | Rustenburg operations | Underground Mining Activities [Member] | |||
SEGMENT REPORTING | |||
Revenue | 10,460.7 | 9,163.3 | 1,465.8 |
Cost of sales, before amortisation and depreciation | (8,392) | (8,282.4) | (1,455.7) |
Operating segments | South Africa Region [Member] | Rustenburg operations | Surface Mining Activities [Member] | |||
SEGMENT REPORTING | |||
Revenue | 911.8 | 1,057.5 | 190.2 |
Cost of sales, before amortisation and depreciation | (811.9) | (783.7) | (126.8) |
Material reconciling items [member] | |||
SEGMENT REPORTING | |||
Revenue | (26.7) | ||
Finance expense | (160.3) | ||
(Loss)/profit for the year | (187) | ||
Adjusted EBITDA | (26.7) | ||
Attributable to: | |||
Owners of the parent | (187) | ||
Material reconciling items [member] | Underground Mining Activities [Member] | |||
SEGMENT REPORTING | |||
Revenue | (26.7) | ||
Material reconciling items [member] | South Africa Region [Member] | SA Gold operations | |||
SEGMENT REPORTING | |||
Revenue | (76.8) | (0.7) | (36.8) |
Net other cash costs | 100.9 | 41.1 | (2.3) |
Amortisation and depreciation | (26.4) | (23.9) | (22.3) |
Interest income | 41.3 | 26.1 | 89.9 |
Finance expense | (19.4) | (509.3) | (353.7) |
Share-based payments | (260.3) | (221.1) | (216.6) |
Net other costs | 3,545.1 | 360.6 | (327.5) |
Non-underlying items | (729.3) | (2,070.5) | (106.9) |
Current taxation | (47) | (8.1) | 7.1 |
Deferred taxation | (232) | 253 | (6.4) |
(Loss)/profit for the year | 2,296.1 | (2,152.8) | (975.5) |
Adjusted EBITDA | 24.1 | 40.4 | (39.1) |
Attributable to: | |||
Owners of the parent | 2,295.2 | (2,153.9) | (976.4) |
Non-controlling interests | 0.9 | 1.1 | 0.9 |
Sustaining capital expenditure | (0.8) | (14.3) | (70.1) |
Growth projects | (200.3) | (387.3) | (520.7) |
Total capital expenditure | (201.1) | (401.6) | (590.8) |
Material reconciling items [member] | South Africa Region [Member] | SA Gold operations | Underground Mining Activities [Member] | |||
SEGMENT REPORTING | |||
Revenue | (76.8) | (0.7) | (36.8) |
Material reconciling items [member] | South Africa Region [Member] | SA PGM operations | |||
SEGMENT REPORTING | |||
Revenue | (1,857.5) | (1,687.7) | (1,244.2) |
Cost of sales, before amortisation and depreciation | 1,235.7 | 1,200.5 | 969 |
Net other cash costs | 5.9 | (35.7) | (200.4) |
Amortisation and depreciation | 187.7 | 207.2 | 219.2 |
Interest income | 1.6 | (6.5) | 7.5 |
Finance expense | 1,611.7 | 10.1 | 11.1 |
Share-based payments | (240.3) | ||
Net other costs | (3,750.8) | 32.6 | (22.6) |
Non-underlying items | 0.6 | (8.5) | (7.2) |
Royalties | 57.6 | 60.4 | 82.8 |
Current taxation | 102.3 | 58.7 | 22.3 |
Deferred taxation | 30.9 | 3.8 | (12.3) |
(Loss)/profit for the year | (2,374.3) | (165.1) | (415.1) |
Adjusted EBITDA | (615.9) | (522.9) | (475.6) |
Attributable to: | |||
Owners of the parent | (2,374.3) | (165.1) | (415.1) |
Sustaining capital expenditure | 170.9 | 222.5 | 158.6 |
Total capital expenditure | 170.9 | 222.5 | 158.6 |
Material reconciling items [member] | South Africa Region [Member] | SA PGM operations | Underground Mining Activities [Member] | |||
SEGMENT REPORTING | |||
Revenue | (1,857.5) | (1,687.7) | (1,244.2) |
Cost of sales, before amortisation and depreciation | R 1,235.7 | R 1,200.5 | R 969 |
REVENUE (Details)
REVENUE (Details) R in Millions, $ in Millions | Jul. 25, 2018USD ($) | Jul. 25, 2018ZAR (R) | Jul. 31, 2018USD ($) | Dec. 31, 2018USD ($)R / $ | Dec. 31, 2018ZAR (R)R / $ | Dec. 31, 2017ZAR (R) | Dec. 31, 2016ZAR (R) |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||||
Percent of gold production covered by streaming arrangement | 100.00% | 100.00% | |||||
Percent of palladium production covered by streaming arrangement | 4.50% | 4.50% | |||||
Deferred revenue advance received | $ 500 | $ 500 | R 6,555.4 | ||||
Revenue from contracts with customers | R 50,656.4 | R 45,911.6 | R 31,240.7 | ||||
Average foreign exchange rate | R / $ | 13.24 | 13.24 | |||||
Currency risk | |||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||||
Percentage decrease in risk assumption | 1.00% | 1.00% | |||||
Percentage increase in risk assumption | 1.00% | 1.00% | |||||
Increase in adjusted EBITDA due to decrease in exchange rate | R 41.5 | ||||||
Decrease in adjusted EBITDA due to increase in exchange rate | 41.5 | ||||||
Gold Mining Activities [Member] | |||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||||
Revenue from contracts with customers | 19,656.7 | 23,473.6 | 27,501.3 | ||||
PGM Mining Activities [Member] | |||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||||
Revenue from contracts with customers | 23,355.4 | 17,898.7 | 3,739.4 | ||||
Recycling Activities [Member] | |||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||||
Revenue from contracts with customers | R 7,442.7 | 4,539.3 | |||||
Streaming Arrangements [Member] | |||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||||
Deferred revenue advance received | $ 500 | R 6,555.4 | |||||
Additional monthly amounts receivable, as a percent | 18.00% | 18.00% | |||||
Revenue from contracts with customers | R 201.6 | ||||||
Minimum | |||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||||
Period between provisional invoicing and final pricing | 2 months | 2 months | |||||
Maximum | |||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||||
Period between provisional invoicing and final pricing | 4 months | 4 months | |||||
South Africa Region [Member] | |||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||||
Revenue from contracts with customers | R 34,810.3 | 36,750 | R 31,240.7 | ||||
US Region/ Stillwater2 | |||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||||
Revenue from contracts with customers | 15,872.8 | 9,161.6 | |||||
US Region/ Stillwater2 | Recycling Activities [Member] | |||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||||
Revenue from contracts with customers | 7,442.7 | 4,539.3 | |||||
UNITED STATES | |||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||||
Revenue from contracts with customers | R 15,846.1 | R 9,161.6 |
COST OF SALES (Details)
COST OF SALES (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of performance obligations [line items] | |||
Salaries and wages | R (15,710.3) | R (15,323) | R (9,276.1) |
Consumable stores | (9,327.9) | (8,789.4) | (5,243.2) |
Utilities | (5,049.2) | (4,930.1) | (3,709) |
Mine contracts | (3,197.6) | (2,956.9) | (2,105.3) |
Other | (4,564) | (3,398) | (2,769.9) |
Ore reserve development costs capitalised | 3,530.3 | 3,291.6 | 2,394.4 |
Cost of sales, before amortisation and depreciation | (41,515.2) | (36,482.7) | (20,709.1) |
Amortisation and depreciation | (6,613.8) | (5,699.7) | (4,041.9) |
Total cost of sales | (48,129) | (42,182.4) | (24,751) |
Cost of providing defined contribution retirement benefits | 919.1 | 959.9 | R 626 |
Recycling Activities [Member] | |||
Disclosure of performance obligations [line items] | |||
Cost of sales, before amortisation and depreciation | R (7,196.5) | R (4,376.9) |
FINANCE EXPENSE (Details)
FINANCE EXPENSE (Details) - ZAR (R) R in Millions | Jul. 16, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
FINANCE EXPENSE | ||||
Financing component, discount rate (as a percent) | 5.40% | |||
Borrowings - interest paid | R (1,572.5) | R (2,091.9) | R (427.5) | |
Borrowings - accrued interest and unwinding of amortised cost | (538.3) | (251.8) | (141.4) | |
Environmental rehabilitation obligation | (398.8) | (357.1) | (291.4) | |
Occupational healthcare obligation | (105.4) | (46.4) | ||
Deferred payment | (200.4) | (148.2) | (24.1) | |
Dissenting shareholders | (68.1) | (62.9) | ||
Deferred revenue | (160.3) | |||
Other | (90.9) | (13.5) | (18.7) | |
Total finance expense | R (3,134.7) | R (2,971.8) | R (903.1) |
SHARE BASED PAYMENTS (Details)
SHARE BASED PAYMENTS (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SHARE-BASED PAYMENTS | |||
Share-based payments | R (299.4) | R (231.9) | R (496.2) |
Sibanye Stillwater 2017 Share Plan [Member] | |||
SHARE-BASED PAYMENTS | |||
Share-based payments | (139.2) | (9) | |
Sibanye Stillwater 2017 Share Plan - Performance Shares [Member] | |||
SHARE-BASED PAYMENTS | |||
Share-based payments | (139.2) | (9) | |
SGL 2013 Share Plan | |||
SHARE-BASED PAYMENTS | |||
Share-based payments | (142.5) | (208.4) | (172.1) |
SGL 2013 Share Plan - Performance shares | |||
SHARE-BASED PAYMENTS | |||
Share-based payments | (142.5) | (186.3) | (145.5) |
SGL 2013 Share Plan - Bonus shares | |||
SHARE-BASED PAYMENTS | |||
Share-based payments | (22.1) | (26.6) | |
SGL Phantom Scheme | |||
SHARE-BASED PAYMENTS | |||
Share-based payments | (11.2) | (83.8) | |
Stillwater Cash Settled Scheme | |||
SHARE-BASED PAYMENTS | |||
Share-based payments | (14.5) | R (3.3) | |
DRD Gold Cash Settled Scheme [Member] | |||
SHARE-BASED PAYMENTS | |||
Share-based payments | R (3.2) | ||
Share-based payment on BEE transaction | |||
SHARE-BASED PAYMENTS | |||
Share-based payments | R (240.3) |
SHARE BASED PAYMENTS - SGL Shar
SHARE BASED PAYMENTS - SGL Share Plan (Details) | 12 Months Ended | |||
Dec. 31, 2018ZAR (R)companytrancheitemshares | Dec. 31, 2017ZAR (R) | Dec. 31, 2016ZAR (R)shares | Apr. 25, 2017shares | |
SHARE-BASED PAYMENTS | ||||
Authorised number of shares | shares | 2,000,000,000 | 10,000,000,000 | ||
Percentage of actual annual cash bonus | 60.00% | |||
Percent of bonus paid in shares | 40.00% | |||
Share price period for determination of number of shares awarded | 3 days | |||
Forfeiture percentage | 20.00% | |||
Sibanye Stillwater 2017 Share Plan [Member] | ||||
SHARE-BASED PAYMENTS | ||||
Maximum shares allowed per individual participant | shares | 8,674,885 | |||
Number of forfeitable share tranches | tranche | 2 | |||
Performance period | 3 years | |||
Number of performance criteria | item | 2 | |||
TSR Weighting percentage | 70.00% | |||
Number of peer-group companies | company | 8 | |||
ROCE Weighting percentage | 30.00% | |||
ROCE incremental increase (as a percent) | 6.00% | |||
Sibanye Stillwater 2017 Share Plan [Member] | Minimum | ||||
SHARE-BASED PAYMENTS | ||||
Percentile on peer group TSR curve (as a percent) | 0.00% | |||
Sibanye Stillwater 2017 Share Plan [Member] | Maximum | ||||
SHARE-BASED PAYMENTS | ||||
Percentile on peer group TSR curve (as a percent) | 100.00% | |||
Sibanye Stillwater 2017 Share Plan [Member] | TSR at 0% | ||||
SHARE-BASED PAYMENTS | ||||
Vesting percentage | 0.00% | |||
Sibanye Stillwater 2017 Share Plan [Member] | TSR at 10% | ||||
SHARE-BASED PAYMENTS | ||||
Vesting percentage | 0.00% | |||
Sibanye Stillwater 2017 Share Plan [Member] | TSR at 20% | ||||
SHARE-BASED PAYMENTS | ||||
Vesting percentage | 0.00% | |||
Sibanye Stillwater 2017 Share Plan [Member] | TSR at 30% | ||||
SHARE-BASED PAYMENTS | ||||
Vesting percentage | 5.00% | |||
Sibanye Stillwater 2017 Share Plan [Member] | TSR at 40% | ||||
SHARE-BASED PAYMENTS | ||||
Vesting percentage | 20.00% | |||
Sibanye Stillwater 2017 Share Plan [Member] | TSR at 50% | ||||
SHARE-BASED PAYMENTS | ||||
Vesting percentage | 35.00% | |||
Sibanye Stillwater 2017 Share Plan [Member] | TSR at 60% | ||||
SHARE-BASED PAYMENTS | ||||
Vesting percentage | 55.00% | |||
Sibanye Stillwater 2017 Share Plan [Member] | TSR at 70% | ||||
SHARE-BASED PAYMENTS | ||||
Vesting percentage | 75.00% | |||
Sibanye Stillwater 2017 Share Plan [Member] | TSR at 80% | ||||
SHARE-BASED PAYMENTS | ||||
Vesting percentage | 90.00% | |||
Sibanye Stillwater 2017 Share Plan [Member] | TSR at 90% | ||||
SHARE-BASED PAYMENTS | ||||
Vesting percentage | 100.00% | |||
Sibanye Stillwater 2017 Share Plan [Member] | TSR at 100% | ||||
SHARE-BASED PAYMENTS | ||||
Vesting percentage | 100.00% | |||
Sibanye Stillwater 2017 Share Plan [Member] | ROCE Ke | ||||
SHARE-BASED PAYMENTS | ||||
Vesting percentage | 0.00% | |||
Sibanye Stillwater 2017 Share Plan [Member] | ROCE at Ke + 1% | ||||
SHARE-BASED PAYMENTS | ||||
Vesting percentage | 16.70% | |||
Sibanye Stillwater 2017 Share Plan [Member] | ROCE at Ke + 2% | ||||
SHARE-BASED PAYMENTS | ||||
Vesting percentage | 33.30% | |||
Sibanye Stillwater 2017 Share Plan [Member] | ROCE at Ke + 3% | ||||
SHARE-BASED PAYMENTS | ||||
Vesting percentage | 50.00% | |||
Sibanye Stillwater 2017 Share Plan [Member] | ROCE at Ke + 4% | ||||
SHARE-BASED PAYMENTS | ||||
Vesting percentage | 66.70% | |||
Sibanye Stillwater 2017 Share Plan [Member] | ROCE at Ke + 5% | ||||
SHARE-BASED PAYMENTS | ||||
Vesting percentage | 83.30% | |||
Sibanye Stillwater 2017 Share Plan [Member] | ROCE at Ke + 6% | ||||
SHARE-BASED PAYMENTS | ||||
Vesting percentage | 100.00% | |||
Sibanye 2017 Share Plan - Bonus Shares [Member] | ||||
SHARE-BASED PAYMENTS | ||||
Vesting period of first part of share award | 9 months | |||
Vesting period of second part of share award | 18 months | |||
SGL 2013 Share Plan | ||||
SHARE-BASED PAYMENTS | ||||
Number of methods of participation | item | 2 | |||
SGL 2013 Share Plan - Bonus shares | ||||
SHARE-BASED PAYMENTS | ||||
Weighted average historical volatility | 50.35% | 53.96% | 55.15% | |
Expected dividend yield | 4.65% | 3.75% | ||
Weighted average three-year risk-free interest rate | 7.24% | 7.78% | ||
Marketability Discount, Initial Term | 1.27% | 1.60% | ||
Marketability discount, 18 month term | 0.50% | 0.69% | ||
Weighted average fair value | R 11.43 | |||
Weighted average fair value, 9-month term | R 24.84 | R 54.27 | ||
Weighted average fair value, 18-month term | R 24.14 | R 53.02 | ||
SGL 2013 Share Plan - Bonus shares | Minimum | ||||
SHARE-BASED PAYMENTS | ||||
Performance period | 9 months | 9 months | 9 months | |
SGL 2013 Share Plan - Bonus shares | Maximum | ||||
SHARE-BASED PAYMENTS | ||||
Performance period | 18 months | 18 months | 18 months | |
SGL 2013 Share Plan - Performance shares | ||||
SHARE-BASED PAYMENTS | ||||
Performance period | 3 years | 3 years | 3 years | |
Weighted average historical volatility | 55.71% | 53.96% | 55.12% | |
Expected dividend yield | 3.64% | 4.65% | 3.75% | |
Weighted average three-year risk-free interest rate | 6.90% | 7.40% | 8.51% | |
Weighted average fair value | R 6.86 | R 24.07 | R 50.81 |
SHARE BASED PAYMENTS - Compensa
SHARE BASED PAYMENTS - Compensation Cost and Activity (Details) | 12 Months Ended | ||
Dec. 31, 2018ZAR (R)EquityInstrumentsshares | Dec. 31, 2017EquityInstrumentsZAR (R) | Dec. 31, 2016EquityInstruments | |
Sibanye Stillwater 2017 Share Plan [Member] | |||
SHARE-BASED PAYMENTS | |||
Compensation cost not yet recognised | R 213,200,000 | ||
Compensation cost recognition period | 3 years | ||
Shares authorized | shares | 86,748,850 | ||
Maximum shares allowed per individual participant | shares | 8,674,885 | ||
Sibanye 2017 Share Plan - Bonus Shares [Member] | |||
SHARE-BASED PAYMENTS | |||
Number of instruments, granted | 5,977,437 | ||
Exercised and released | (2,348,445) | ||
Forfeited | (359,782) | ||
Number of other equity instruments outstanding in share-based payment arrangement at end of period | 3,269,210 | ||
Sibanye Stillwater 2017 Share Plan - Performance Shares [Member] | |||
SHARE-BASED PAYMENTS | |||
Number of other equity instruments outstanding in share-based payment arrangement at beginning of period | 12,953,888 | ||
Number of instruments, granted | 41,103,872 | 2,376,742 | |
Supplementary awards related to the SGL 2013 Plan | 10,933,066 | ||
Exercised and released | (1,457,586) | (105,449) | |
Forfeited | (3,995,018) | (250,471) | |
Condition forfeited | shares | (69,808) | ||
Number of other equity instruments outstanding in share-based payment arrangement at end of period | 48,535,348 | 12,953,888 | |
SGL 2013 Share Plan - Performance shares | |||
SHARE-BASED PAYMENTS | |||
Number of other equity instruments outstanding in share-based payment arrangement at beginning of period | EquityInstruments | 19,379,386 | 10,610,779 | 9,398,072 |
Number of instruments, granted | EquityInstruments | 12,851,131 | 5,103,184 | |
Exercised and released | EquityInstruments | (2,523,162) | (2,616,050) | (3,832,758) |
Forfeited | EquityInstruments | (1,514,145) | (1,466,474) | (57,719) |
Condition forfeited | shares | (126,097) | ||
Number of other equity instruments outstanding in share-based payment arrangement at end of period | EquityInstruments | 15,215,982 | 19,379,386 | 10,610,779 |
SGL 2013 Share Plan - Bonus shares | |||
SHARE-BASED PAYMENTS | |||
Number of other equity instruments outstanding in share-based payment arrangement at beginning of period | EquityInstruments | 446,469 | 250,827 | 417,266 |
Number of instruments, granted | EquityInstruments | 2,421,522 | 504,739 | |
Exercised and released | EquityInstruments | (415,579) | (2,126,415) | (667,063) |
Forfeited | EquityInstruments | (30,890) | (99,465) | (4,115) |
Number of other equity instruments outstanding in share-based payment arrangement at end of period | EquityInstruments | 446,469 | 250,827 |
SHARE BASED PAYMENTS - Director
SHARE BASED PAYMENTS - Directors and Prescribed Officers (Details) - Sibanye 2017 and 2013 Share Plans [Member] | 12 Months Ended |
Dec. 31, 2018ZAR (R)EquityInstruments | |
Neal Froneman | |
SHARE-BASED PAYMENTS | |
Number of other equity instruments outstanding in share-based payment arrangement at beginning of period | 3,510,669 |
Number of instruments, granted | 5,318,454 |
Number of instruments, exercised | 1,063,629 |
Average price of instruments exercised | R | R 10.72 |
Share proceeds from instruments | R | R 11,404,039 |
Number of other equity instruments outstanding in share-based payment arrangement at end of period | 7,765,494 |
Charl Keyter | |
SHARE-BASED PAYMENTS | |
Number of other equity instruments outstanding in share-based payment arrangement at beginning of period | 1,703,868 |
Number of instruments, granted | 2,672,205 |
Number of instruments, exercised | 484,485 |
Average price of instruments exercised | R | R 10.65 |
Share proceeds from instruments | R | R 5,159,132 |
Number of other equity instruments outstanding in share-based payment arrangement at end of period | 3,891,588 |
Chris Bateman | |
SHARE-BASED PAYMENTS | |
Number of other equity instruments outstanding in share-based payment arrangement at beginning of period | 413,920 |
Number of instruments, granted | 2,100,629 |
Number of instruments, exercised | 136,632 |
Average price of instruments exercised | R | R 8.73 |
Share proceeds from instruments | R | R 1,193,090 |
Number of other equity instruments outstanding in share-based payment arrangement at end of period | 2,377,917 |
Hartley Dikgale | |
SHARE-BASED PAYMENTS | |
Number of other equity instruments outstanding in share-based payment arrangement at beginning of period | 892,545 |
Number of instruments, granted | 1,062,536 |
Number of instruments, exercised | 220,482 |
Average price of instruments exercised | R | R 10.52 |
Share proceeds from instruments | R | R 2,320,335 |
Number of other equity instruments outstanding in share-based payment arrangement at end of period | 1,734,599 |
Dawie Mostert | |
SHARE-BASED PAYMENTS | |
Number of other equity instruments outstanding in share-based payment arrangement at beginning of period | 979,139 |
Number of instruments, granted | 1,328,165 |
Number of instruments, exercised | 268,044 |
Average price of instruments exercised | R | R 10.62 |
Share proceeds from instruments | R | R 2,847,401 |
Number of other equity instruments outstanding in share-based payment arrangement at end of period | 2,039,260 |
Themba Nkosi | |
SHARE-BASED PAYMENTS | |
Number of other equity instruments outstanding in share-based payment arrangement at beginning of period | 640,072 |
Number of instruments, granted | 1,052,911 |
Number of instruments, exercised | 87,826 |
Average price of instruments exercised | R | R 8.75 |
Share proceeds from instruments | R | R 768,826 |
Number of other equity instruments outstanding in share-based payment arrangement at end of period | 1,605,157 |
Wayne Robinson | |
SHARE-BASED PAYMENTS | |
Number of other equity instruments outstanding in share-based payment arrangement at beginning of period | 1,081,008 |
Number of instruments, granted | 1,277,048 |
Number of instruments, exercised | 275,245 |
Average price of instruments exercised | R | R 10.72 |
Share proceeds from instruments | R | R 2,950,577 |
Number of other equity instruments outstanding in share-based payment arrangement at end of period | 2,082,811 |
Richard Stewart | |
SHARE-BASED PAYMENTS | |
Number of other equity instruments outstanding in share-based payment arrangement at beginning of period | 1,469,189 |
Number of instruments, granted | 1,521,844 |
Number of instruments, exercised | 562,537 |
Average price of instruments exercised | R | R 9.83 |
Share proceeds from instruments | R | R 5,530,242 |
Number of other equity instruments outstanding in share-based payment arrangement at end of period | 2,428,496 |
Robert van Niekerk | |
SHARE-BASED PAYMENTS | |
Number of other equity instruments outstanding in share-based payment arrangement at beginning of period | 1,365,383 |
Number of instruments, granted | 2,147,603 |
Number of instruments, exercised | 391,847 |
Average price of instruments exercised | R | R 10.48 |
Share proceeds from instruments | R | R 4,107,696 |
Number of other equity instruments outstanding in share-based payment arrangement at end of period | 3,121,139 |
SHARE BASED PAYMENTS - SGL Phan
SHARE BASED PAYMENTS - SGL Phantom Scheme (Details) - Phantom Scheme - Performance shares - item | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
SHARE-BASED PAYMENTS | ||
Number of other equity instruments outstanding in share-based payment arrangement at beginning of period | 5,301,626 | 20,198,875 |
Vested and paid | (5,178,775) | (14,275,138) |
Forfeited | (122,851) | (622,111) |
Number of other equity instruments outstanding in share-based payment arrangement at end of period | 5,301,626 |
SHARE BASED PAYMENTS - BEE Tran
SHARE BASED PAYMENTS - BEE Transaction (Details) - Sibanye Rustenburg Platinum Mines Proprietary Limited Subsidiary - ZAR (R) R in Millions | 12 Months Ended | |
Dec. 31, 2018 | Oct. 19, 2016 | |
Share-based payment on BEE transaction | ||
SHARE-BASED PAYMENTS | ||
Percentage of payment or distribution | 74.00% | |
Newshelf 1335 Proprietary Limited | ||
SHARE-BASED PAYMENTS | ||
Percentage of voting equity interests acquired | 26.00% | |
Newshelf 1335 Proprietary Limited | Share-based payment on BEE transaction | ||
SHARE-BASED PAYMENTS | ||
Percentage of voting equity interests acquired | 26.00% | |
Incremental interest rate above highest cost of debt (as a percent) | 0.20% | |
Percentage of payment or distribution | 26.00% | |
Post payment used to service the facility (as a percent) | 85.00% | |
Post payment declared as a dividend (as a percent) | 15.00% | |
Post payment declared as a dividend after repayment (as a percent) | 100.00% | |
Facility capped amount | R 3,500 | |
Percentage of expense restricted | 44.80% |
SHARE BASED PAYMENTS - Share-Ba
SHARE BASED PAYMENTS - Share-Based Obligations (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SHARE-BASED PAYMENTS | |||
Balance at beginning of the year | R 434.5 | R 481.7 | R 599.6 |
Fair value loss on obligations | 249.9 | (171.5) | (1,076.6) |
Cash-settled share-based payments paid | (21.7) | (433.6) | (1,518.6) |
Share-based payment obligation on acquisition of subsidiary | 45.1 | 200.4 | |
Balance at end of the year | 225.7 | 434.5 | 481.7 |
Current portion of share-based payment obligations | (56.8) | (12.3) | (235.2) |
Share-based payment obligations, non-current | 168.9 | 422.2 | 246.5 |
Share-based payment on BEE transaction | |||
SHARE-BASED PAYMENTS | |||
Balance at beginning of the year | 399.5 | 240.3 | |
Increase due to share-based payments expense | 240.3 | ||
Balance at end of the year | 149.7 | 399.5 | 240.3 |
Share-Based Payment Arrangements Other Than BEE Transaction [Member] | |||
SHARE-BASED PAYMENTS | |||
Balance at beginning of the year | 35 | 241.4 | |
Increase due to share-based payments expense | 17.7 | 14.5 | 83.8 |
Balance at end of the year | R 76 | R 35 | R 241.4 |
OTHER COSTS (Details)
OTHER COSTS (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
OTHER COSTS | |||
Care and maintenance | R (576.5) | R (249.2) | R (75) |
Change in estimate of environmental rehabilitation obligation, and right of recovery receivable and payable | R 66.6 | R (248.9) | R (97.5) |
IMPAIRMENTS (Details)
IMPAIRMENTS (Details) - ZAR (R) R in Millions | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
IMPAIRMENTS | ||||
Total impairments | R (3,041.4) | R (4,411) | R (1,381.1) | |
Property, plant and equipment member | ||||
IMPAIRMENTS | ||||
Total impairments | (2,603.3) | (4,303.4) | (1,171.7) | |
Goodwill | ||||
IMPAIRMENTS | ||||
Total impairments | R (99.1) | (436.3) | (99.1) | (201.3) |
Loan to equity-accounted investee | ||||
IMPAIRMENTS | ||||
Total impairments | R (1.8) | R (8.5) | R (8.1) |
IMPAIRMENTS - Narrative (Detail
IMPAIRMENTS - Narrative (Details) lb in Thousands, shares in Millions, oz in Millions, R in Millions | Aug. 01, 2018shares | Nov. 22, 2017lbozshares | Dec. 31, 2018ZAR (R) | Dec. 31, 2017ZAR (R) | Jun. 30, 2017ZAR (R) | Dec. 31, 2016ZAR (R) | Jun. 30, 2016ZAR (R) | Dec. 31, 2018ZAR (R) | Dec. 31, 2017ZAR (R) | Dec. 31, 2016ZAR (R) |
IMPAIRMENTS | ||||||||||
Impairments | R 3,041.4 | R 4,411 | R 1,381.1 | |||||||
Probable gold reserves | oz | 2.4 | |||||||||
Probable uranium reserves | lb | 54,260 | |||||||||
DRDGOLD Limited | ||||||||||
IMPAIRMENTS | ||||||||||
Number of shares acquired | shares | 265 | 265 | ||||||||
Property, plant and equipment member | ||||||||||
IMPAIRMENTS | ||||||||||
Impairments | 2,603.3 | 4,303.4 | 1,171.7 | |||||||
Property, plant and equipment member | Driefontein | ||||||||||
IMPAIRMENTS | ||||||||||
Impairments | R 2,171.8 | |||||||||
Property, plant and equipment member | Beatrix West | ||||||||||
IMPAIRMENTS | ||||||||||
Impairments | 166.9 | R 603.7 | ||||||||
Property, plant and equipment member | Burnstone | ||||||||||
IMPAIRMENTS | ||||||||||
Impairments | 193.6 | |||||||||
Property, plant and equipment member | Cooke 1 2 and 3 operation mining assets | ||||||||||
IMPAIRMENTS | ||||||||||
Impairments | R 2,187.8 | R 355 | ||||||||
Property, plant and equipment member | WRTRP exploration and evaluation assets | ||||||||||
IMPAIRMENTS | ||||||||||
Impairments | R 1,245.1 | |||||||||
Property, plant and equipment member | De Bron-Merriespruit exploration and evaluation asset | ||||||||||
IMPAIRMENTS | ||||||||||
Impairments | 227.1 | |||||||||
Property, plant and equipment member | Cooke 4 operation mining assets | ||||||||||
IMPAIRMENTS | ||||||||||
Impairments | R 816.7 | |||||||||
Loan to equity-accounted investee | ||||||||||
IMPAIRMENTS | ||||||||||
Impairments | 1.8 | 8.5 | 8.1 | |||||||
Goodwill | ||||||||||
IMPAIRMENTS | ||||||||||
Impairments | R 99.1 | R 436.3 | R 99.1 | R 201.3 | ||||||
Goodwill | Driefontein | ||||||||||
IMPAIRMENTS | ||||||||||
Impairments | 166.9 | |||||||||
Goodwill | Kloof | ||||||||||
IMPAIRMENTS | ||||||||||
Impairments | 165.5 | |||||||||
Goodwill | Beatrix West | ||||||||||
IMPAIRMENTS | ||||||||||
Impairments | R 103.9 |
ROYALTIES, AND MINING AND INC_3
ROYALTIES, AND MINING AND INCOME TAX, AND DEFERRED TAX (Details) R in Millions, $ in Millions | Dec. 22, 2017USD ($) | Dec. 22, 2017ZAR (R) | Dec. 21, 2017 | Dec. 31, 2018USD ($) | Dec. 31, 2018ZAR (R) | Dec. 31, 2018ZAR (R) | Dec. 31, 2017ZAR (R) | Dec. 31, 2016ZAR (R) |
Royalties, and mining and income tax and deferred tax | ||||||||
Percentage to which refined | 99.50% | |||||||
Gross revenue factor, refined minerals | 12.5 | |||||||
Gross revenue factor, unrefined minerals | 9 | |||||||
Additional percentage used in calculating royalty | 0.50% | |||||||
Maximum royalty percentage introduced on refined minerals | 5.00% | |||||||
Royalties | R (255.5) | R (398.5) | R (566.6) | |||||
Prior year tax refund | 42.9 | |||||||
Total royalties | (212.6) | (398.5) | (566.6) | |||||
Mining tax | (36.8) | (425.2) | (1,031.6) | |||||
Non-mining tax | (57.6) | (70.6) | (83.9) | |||||
Company and capital gain tax | (0.9) | (8.4) | 3.7 | |||||
Total current tax | (95.3) | (504.2) | (1,111.8) | |||||
Deferred tax | (988.5) | 3,450.8 | (90.3) | |||||
Deferred tax charge | 306.7 | 879.7 | (30.5) | |||||
Deferred tax rate adjustment | (1,295.2) | 2,571.1 | (59.8) | |||||
Total mining and income tax | R (1,083.8) | 2,946.6 | (1,202.1) | |||||
Non-mining tax rate | 28.00% | |||||||
Deferred tax rate | 24.23% | 24.23% | 37.69% | |||||
UNITED STATES | ||||||||
Royalties, and mining and income tax and deferred tax | ||||||||
Deferred tax rate adjustment | R (1,544.7) | R 2,531.5 | ||||||
Company tax rate | 21.00% | 35.00% | ||||||
Deferred tax benefit | $ 204.8 | R 2,531.5 | ||||||
South Africa | ||||||||
Royalties, and mining and income tax and deferred tax | ||||||||
Deferred tax rate adjustment | R 249.5 | R 39.6 | R (59.8) | |||||
Company tax rate | 28.00% | |||||||
SA Gold operations | ||||||||
Royalties, and mining and income tax and deferred tax | ||||||||
Effective rate of royalty tax payable | 0.50% | 1.40% | 1.90% | |||||
Royalties | R (93.5) | R (325.3) | R (528) | |||||
Deferred tax rate adjustment | R 249.5 | R 39.6 | (59.8) | |||||
SA PGM operations | ||||||||
Royalties, and mining and income tax and deferred tax | ||||||||
Effective rate of royalty tax payable | 1.10% | 0.60% | ||||||
Royalties | R (162) | R (73.2) | R (38.6) | |||||
SA PGM operations | New Jersey [Member] | ||||||||
Royalties, and mining and income tax and deferred tax | ||||||||
Deferred tax rate adjustment | $ (107.7) | R (1,544.7) |
ROYALTIES, AND MINING AND INC_4
ROYALTIES, AND MINING AND INCOME TAX - Rate Reconciliation (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of average effective tax rate and applicable tax rate [abstract] | |||
Tax on profit before tax at maximum South African statutory company tax rate | R 402.3 | R 2,066.3 | R (1,188.5) |
South African mining tax formula rate adjustment | (53) | 157.6 | 160.9 |
United States statutory tax rate adjustment | 19.4 | 57.3 | |
Non-deductible amortisation and depreciation | (21.2) | (0.9) | (35) |
Non-taxable dividend received | 15.4 | ||
Non-deductible finance charges | (118.2) | (165.8) | (48.7) |
Non-deductible share-based payments | (78.9) | (58.4) | (115.5) |
Non-taxable gain/(Non-deductible loss) on fair value of financial instruments | 136.9 | (42.9) | (1.7) |
Non-taxable gain/(non-deductible loss) on foreign exchange differences | 250.3 | 45 | (52.1) |
Non-taxable share of results of equity-accounted investees | 96.4 | 81.6 | 3.7 |
Non-deductible impairments | (123.2) | (1,054.9) | (65.6) |
Non-deductible transaction costs | (110) | (154.6) | (44) |
Non-taxable gain on acquisition | 610 | ||
Net other non-taxable income and non-deductible expenditure | 121 | (251.7) | 64.2 |
Change in estimated deferred tax rate | (1,295.2) | 2,571.1 | (59.8) |
Deferred tax assets not recognised | (325.8) | (303.1) | (430) |
Total mining and income tax | R (1,083.8) | R 2,946.6 | R (1,202.1) |
ROYALTIES, AND MINING AND INC_5
ROYALTIES, AND MINING AND INCOME TAX, AND DEFERRED TAX - Deferred Tax (Details) - ZAR (R) R in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income tax | ||||||
Deferred tax assets | R (76.9) | R (206.2) | R (228.2) | |||
Deferred tax liabilities | 10,153.2 | 8,525.2 | 4,915.4 | |||
Net deferred tax liabilities | R 8,319 | R 4,687.2 | R 3,498.2 | 10,076.3 | 8,319 | 4,687.2 |
Reconciliation of the deferred tax balance: | ||||||
Deferred tax liability (asset) at beginning of period | 8,319 | 4,687.2 | 3,498.2 | |||
Deferred tax recognised in profit or loss | 988.5 | (3,450.8) | 90.3 | |||
Deferred tax recognised in other comprehensive income | (22.8) | (27.7) | ||||
Deferred tax on acquisition of subsidiaries | 132.2 | 7,486.3 | 1,098.7 | |||
Foreign currency translation | 659.4 | (376) | ||||
Deferred tax liability (asset) at end of period | R 10,076.3 | R 8,319 | R 4,687.2 | |||
Deferred tax assets | (2,060.5) | (1,971.8) | (2,536.4) | |||
Deferred tax liabilities | 12,136.8 | 10,290.8 | 7,223.6 | |||
Mine development, infrastructure and other | ||||||
Reconciliation of the deferred tax balance: | ||||||
Deferred tax liabilities | 11,344.4 | 9,642.6 | 6,365.4 | |||
Environment rehabilitation obligation funds | ||||||
Reconciliation of the deferred tax balance: | ||||||
Deferred tax assets | (989.2) | (840.7) | (1,041) | |||
Deferred tax liabilities | 507.7 | 600.7 | 729.6 | |||
Occupational healthcare obligation | ||||||
Reconciliation of the deferred tax balance: | ||||||
Deferred tax assets | (302.7) | (299.7) | ||||
Other | ||||||
Reconciliation of the deferred tax balance: | ||||||
Deferred tax liabilities | 284.7 | 47.5 | 128.6 | |||
Other provisions [Member] | ||||||
Reconciliation of the deferred tax balance: | ||||||
Deferred tax assets | (464.1) | (434) | (546.3) | |||
Tax losses and unredeemed capital expenditure | ||||||
Reconciliation of the deferred tax balance: | ||||||
Deferred tax assets | R (304.5) | R (397.4) | (890.1) | |||
Share-based payment obligation | ||||||
Reconciliation of the deferred tax balance: | ||||||
Deferred tax assets | R (59) |
ROYALTIES, AND MINING AND INC_6
ROYALTIES, AND MINING AND INCOME TAX - Unrecognized (Details) - ZAR (R) R in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Income tax | |||
Tax losses | R 3,480 | R 3,558.2 | R 2,644.8 |
Other deductible temporary differences | 27,679.6 | 24,122.2 | 17,446.9 |
Deferred tax assets not recognised | 7,564.8 | 5,242.9 | 4,554.5 |
Wits Gold | |||
Income tax | |||
Tax losses | 63.9 | 64.6 | 64.6 |
Deferred tax assets not recognised | 17.9 | 18.1 | 18.1 |
Ezulwini | |||
Income tax | |||
Other deductible temporary differences | 3,208.4 | 2,923.7 | 2,909.1 |
Deferred tax assets not recognised | 1,522.8 | 1,544.1 | 1,531.7 |
Rand Refinery | |||
Income tax | |||
Tax losses | 1,132.7 | 886.6 | |
Other deductible temporary differences | 4,115.7 | 4,045.7 | 1,125.3 |
Deferred tax assets not recognised | 1,469.6 | ||
DRDGOLD Limited | |||
Income tax | |||
Tax losses | 37.3 | ||
Other deductible temporary differences | 602.9 | ||
Deferred tax assets not recognised | 130 | ||
Burnstone | |||
Income tax | |||
Other deductible temporary differences | 13,419.8 | 11,306.8 | 10,012.6 |
Deferred tax assets not recognised | 3,757.5 | 3,165.9 | 2,803.5 |
Ridge Mining Services Proprietary Limited | |||
Income tax | |||
Other deductible temporary differences | 715.5 | 499.5 | 643.9 |
Deferred tax assets not recognised | 200.3 | 139.9 | 180.3 |
Stillwater Canada, Inc. [Member] | |||
Income tax | |||
Other deductible temporary differences | 1,916.4 | 1,550.8 | |
Deferred tax assets not recognised | 395.4 | 284.4 | |
South Africa Region [Member] | Other | |||
Income tax | |||
Tax losses | 15.9 | 15.9 | 19 |
Other deductible temporary differences | 48.9 | 54.2 | 55.6 |
Deferred tax assets not recognised | 18.1 | 19.6 | 20.9 |
US Region/ Stillwater2 | Other | |||
Income tax | |||
Other deductible temporary differences | 172 | 183.3 | R 55.6 |
Deferred tax assets not recognised | R 53.2 | R 70.9 |
ROYALTIES, AND MINING AND INC_7
ROYALTIES, AND MINING AND INCOME TAX, AND DEFERRED TAX - Tax and Royalty (Details) - ZAR (R) R in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
ROYALTIES, AND MINING AND INCOME TAX, AND DEFERRED TAX | ||||||
Tax receivable | R (483.2) | R (182.8) | ||||
Tax and royalties payable | 88 | 34.9 | R 88.6 | |||
Net tax and royalties (receivable)/payable | R (147.9) | R 88.6 | R 129.6 | R (395.2) | R (147.9) | R 88.6 |
Reconciliation of the net tax and royalties (receivable)/payable balance: | ||||||
Balance at beginning of the year | (147.9) | 88.6 | 129.6 | |||
Royalties and current tax | (307.9) | (902.7) | (1,678.4) | |||
Royalties and tax paid | (542.2) | (899.3) | (1,732.6) | |||
Tax payable on acquisition of subsidiaries | 4.4 | (260.4) | 13.2 | |||
Foreign currency translation | 17.4 | (20.5) | ||||
Balance at end of the year | R (395.2) | R (147.9) | R 88.6 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - ZAR (R) R / shares in Units, shares in Thousands, R in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Weighted average number of shares | |||
Ordinary shares in issue ('000) | 2,266,261 | 2,168,721 | 929,004 |
Bonus element of the rights issue ('000) | 493,645 | ||
Bonus element of the capitalization issue ('000) | 86,749 | 129,272 | |
Adjustment for weighting of ordinary shares in issue ('000) | (2,404) | (321,620) | (7,271) |
Weighted average number of shares ('000) | 2,263,857 | 1,933,850 | 1,544,650 |
Profit (loss) attributable to owners of Sibanye (SA rand million) | R (2,499.6) | R (4,437.4) | R 3,473.3 |
Basic EPS (cents) | R (1.10) | R (2.29) | R 2.25 |
Potential ordinary shares (000) | 2,161 | ||
Diluted weighted average number of shares ('000) | 2,263,857 | 1,933,850 | 1,546,811 |
Diluted basic EPS (cents) | R (1.10) | R (2.29) | R 2.25 |
Gain on disposal of property, plant and equipment, gross | R (60.2) | R (40.7) | R (95.4) |
Gains on disposals of property plant and equipment, net of tax | (47.9) | (29.3) | (68.7) |
Impairments | 3,041.4 | 4,411 | 1,381.1 |
Impairments, net of tax | 2,530.9 | 4,242.8 | 1,281.7 |
Gain on acquisition, gross | (2,178.6) | ||
Gain on acquisition, net of tax | (2,178.6) | ||
Headline earnings | R (16.6) | R (223.9) | R 2,507.7 |
Headline EPS - cents | R (0.01) | R (0.12) | R 1.62 |
Diluted headline EPS - cents | R (0.01) | R (0.12) | R 1.62 |
DIVIDENDS - Accounting Policy (
DIVIDENDS - Accounting Policy (Details) - ZAR (R) R / shares in Units, R in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
DIVIDENDS | |||
Percentage of dividends withheld | 20.00% | ||
Dividend declared and paid | R 558.2 | R 1,610.6 | |
Dividend declared and paid | R 0.6 | R 1.75 |
DIVIDENDS - Dividend Policy (De
DIVIDENDS - Dividend Policy (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Profit (loss), attributable to owners of parent | R (2,499.6) | R (4,437.4) | R 3,473.3 |
Adjusted for: | |||
(Loss)/profit attributable to owners of Sibanye Stillwater | 1,704.1 | (1,114.4) | (1,032.8) |
(Gain)/loss on financial instruments | (1,704.1) | 1,114.4 | 1,032.8 |
Gain on foreign exchange differences | (1,169.1) | (292.4) | (219.6) |
Gain on disposal of property, plant and equipment | (60.2) | (40.7) | (95.4) |
Impairments | 3,041.4 | 4,411 | 1,381.1 |
Gain on derecognition of borrowings and derivative instrument | (230) | ||
Occupational healthcare expense | 15.4 | 1,106.9 | |
Restructuring costs | 142.8 | 729.8 | 187.7 |
Transaction costs | 402.5 | 552.1 | 157 |
Adjustment for Share-based payment on BEE transaction | 240.3 | ||
Gain on acquisition | (2,178.6) | ||
Other | 18.7 | 52.7 | 72.4 |
Tax effect of the items adjusted above | (345.7) | (813.4) | (419.4) |
Change in estimated deferred tax rate | 1,295.2 | (2,571.1) | 59.8 |
Share of results of equity-accounted investees after tax | (344.2) | (291.6) | (13.3) |
Normalised earnings | R (1,436.9) | R (479.7) | R 3,678.1 |
Minimum | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Dividends percentage | 25.00% | ||
Maximum | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Dividends percentage | 35.00% |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Depreciation of non-mining assets (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Vehicles | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 5 years |
Computers | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 3 years |
Minimum | Furniture and equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 1 year |
Maximum | Furniture and equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 10 years |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT - Cost, accumulated amortisation and carrying value (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of the year | R 51,444.6 | R 27,240.7 | |
Derecognition of property, plant and equipment | (14,416.4) | ||
Assets derecognised on loss of control of subsidiary | (1,322.3) | ||
Balance at end of the year | 54,558.2 | 51,444.6 | R 27,240.7 |
Non-cash additions, capitalised amortisation and depreciation | 26.8 | 41.8 | |
Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of the year | 101,720.7 | 67,689.8 | 57,431.7 |
Additions | 7,107.5 | 6,140.6 | 4,151.1 |
Change in estimates of rehabilitation assets | 618.8 | (187.8) | 472.5 |
Disposals | (171.2) | (142.3) | (67.8) |
Assets acquired on acquisition of subsidiaries | 1,443.2 | 29,948.6 | 5,702.3 |
Foreign currency translation | 5,014.3 | (1,728.2) | |
Balance at end of the year | 99,994.6 | 101,720.7 | 67,689.8 |
Accumulated depreciation, amortisation and impairment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of the year | (50,276.1) | (40,449.1) | (35,299.3) |
Amortisation and depreciation | 6,640.6 | 5,741.6 | 4,041.9 |
Impairment | 2,603.3 | 4,303.4 | 1,171.7 |
Disposals | 77.2 | 111.7 | 63.8 |
Derecognition of property, plant and equipment | (14,416.4) | ||
Assets derecognised on loss of control of subsidiary | (10.9) | ||
Foreign currency translation | (420.9) | (106.3) | |
Balance at end of the year | (45,436.4) | (50,276.1) | (40,449.1) |
Mine development, infrastructure and other | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of the year | 32,220.3 | 21,562.5 | |
Derecognition of property, plant and equipment | (14,287.7) | ||
Transfers between classes of property, plant and equipment | 192.8 | ||
Assets derecognised on loss of control of subsidiary | (12.5) | ||
Balance at end of the year | 34,213.2 | 32,220.3 | 21,562.5 |
Mine development, infrastructure and other | Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of the year | 76,529.2 | 59,904.4 | 51,919.9 |
Additions | 7,034.6 | 5,979.1 | 4,065.7 |
Disposals | (168.1) | (134.1) | (65.9) |
Assets acquired on acquisition of subsidiaries | 1,325 | 11,513.6 | 3,984.7 |
Foreign currency translation | 2,197.9 | (733.8) | |
Balance at end of the year | 72,811.2 | 76,529.2 | 59,904.4 |
Mine development, infrastructure and other | Accumulated depreciation, amortisation and impairment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of the year | (44,308.9) | (38,341.9) | (33,978.1) |
Amortisation and depreciation | 5,900.8 | 5,067.6 | 3,656.7 |
Impairment | 2,461.5 | 1,504.6 | 770.3 |
Disposals | 75.9 | 534.2 | 63.2 |
Derecognition of property, plant and equipment | (14,287.7) | ||
Assets derecognised on loss of control of subsidiary | 10.9 | ||
Foreign currency translation | (279.5) | (71) | |
Balance at end of the year | (38,598) | (44,308.9) | (38,341.9) |
Land, mineral rights and rehabilitation | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of the year | 17,336.9 | 3,607.2 | |
Derecognition of property, plant and equipment | (128.7) | ||
Transfers between classes of property, plant and equipment | 134.5 | ||
Balance at end of the year | 19,818.9 | 17,336.9 | 3,607.2 |
Land, mineral rights and rehabilitation | Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of the year | 21,807.9 | 5,714.4 | 3,591.5 |
Additions | (0.5) | 95.3 | 3.7 |
Change in estimates of rehabilitation assets | 618.8 | (187.8) | 472.5 |
Disposals | (3.1) | (7.9) | (1.9) |
Assets acquired on acquisition of subsidiaries | 50 | 17,115.2 | 1,648.6 |
Foreign currency translation | 2,616.4 | (921.3) | |
Balance at end of the year | 25,095.3 | 21,807.9 | 5,714.4 |
Land, mineral rights and rehabilitation | Accumulated depreciation, amortisation and impairment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of the year | (4,471) | (2,107.2) | (1,321.2) |
Amortisation and depreciation | 739.8 | 674 | 385.2 |
Impairment | 70.8 | 1,300.3 | 401.4 |
Disposals | 1.3 | (422.5) | 0.6 |
Derecognition of property, plant and equipment | (128.7) | ||
Foreign currency translation | (124.8) | (33) | |
Balance at end of the year | (5,276.4) | (4,471) | (2,107.2) |
Exploration and evaluation assets | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of the year | 1,887.4 | 2,071 | |
Transfers between classes of property, plant and equipment | (327.3) | ||
Assets derecognised on loss of control of subsidiary | (1,309.8) | ||
Balance at end of the year | 504.3 | 1,887.4 | 2,071 |
Exploration and evaluation assets | Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of the year | 3,383.6 | 2,071 | 1,920.3 |
Additions | 73.4 | 66.2 | 81.7 |
Disposals | (0.3) | ||
Assets acquired on acquisition of subsidiaries | 68.2 | 1,319.8 | 69 |
Foreign currency translation | 200 | (73.1) | |
Balance at end of the year | 2,088.1 | 3,383.6 | R 2,071 |
Exploration and evaluation assets | Accumulated depreciation, amortisation and impairment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of the year | (1,496.2) | ||
Impairment | 71 | 1,498.5 | |
Foreign currency translation | (16.6) | (2.3) | |
Balance at end of the year | R (1,583.8) | R (1,496.2) |
ACQUISITIONS - DRDGold acquisit
ACQUISITIONS - DRDGold acquisition, consideration paid and related costs (Details) - ZAR (R) shares in Millions, R in Millions | Aug. 01, 2018 | Nov. 22, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about business combination [line items] | |||||
Period of time for which results are included | 8 months | ||||
Revenue | R 50,656.4 | R 45,911.6 | R 31,240.7 | ||
Acquisition related costs | R 402.5 | R 552.1 | R 157 | ||
DRDGOLD Limited | |||||
Disclosure of detailed information about business combination [line items] | |||||
Number of shares acquired | 265 | 265 | |||
Percentage of control acquired | 38.05% | ||||
Potential ownership, as a percent | 50.10% | ||||
Shares option, price discount, as a percent | 10.00% | ||||
Period of time for which results are included | 5 months | ||||
Revenue contributed | R 1,047.5 | ||||
Loss contributed | R 39.9 | ||||
Acquisition related costs | R 25 |
ACQUISITIONS - DRDGold identifi
ACQUISITIONS - DRDGold identifiable assets/liabilities, goodwill (Details) R / kg in Thousands, R in Millions, $ in Millions | Aug. 01, 2018USD ($)R / kg | Dec. 31, 2018ZAR (R) | Dec. 31, 2017ZAR (R) | Dec. 31, 2016ZAR (R) |
IDENTIFIABLE ASSETS ACQUIRED AND LIABILITIES ASSUMED | ||||
Environmental rehabilitation obligation | R | R (672.7) | R (312.1) | R (709.8) | |
DRDGOLD Limited | ||||
IDENTIFIABLE ASSETS ACQUIRED AND LIABILITIES ASSUMED | ||||
Property, plant and equipment | $ 1,443.2 | |||
Environmental rehabilitation obligation funds | 244.7 | |||
Other non-current assets | 28.7 | |||
Inventories | 243.5 | |||
Trade and other receivables | 138.4 | |||
Cash and cash equivalents | 282.8 | |||
Environmental rehabilitation obligation | (672.7) | |||
Deferred tax liabilities | (132.2) | |||
Other non-current liabilities | (54.9) | |||
Trade and other payables | (337.1) | |||
Other current liabilities | (17.6) | |||
Total fair value of identifiable net assets acquired | $ 1,166.8 | |||
Average gold price per KG | R / kg | 580 | |||
Discount rate used in current estimate of value in use | 9.30% | |||
Discount rate for consideration | 13.80% | |||
Non-controlling interest in acquiree recognised at acquisition date | $ 940.3 | |||
Proportion of ownership interests held by non-controlling interests | 61.95% | |||
Consideration transferred, acquisition-date fair value | $ 261.4 | |||
Goodwill recognised as of acquisition date | $ 34.9 |
ACQUISITIONS - Stillwater acqui
ACQUISITIONS - Stillwater acquisition, consideration paid and related costs (Details) $ / shares in Units, R in Millions, $ in Millions | May 04, 2017USD ($)$ / shares | May 04, 2017ZAR (R) | Dec. 31, 2018ZAR (R) | Dec. 31, 2017USD ($) | Dec. 31, 2017ZAR (R) | Dec. 31, 2016ZAR (R) | May 04, 2017ZAR (R) |
Disclosure of detailed information about business combination [line items] | |||||||
Period of time for which results are included | 8 months | 8 months | |||||
CONSIDERATION | |||||||
Acquisition related costs | R 402.5 | R 552.1 | R 157 | ||||
Stillwater | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Price offered per share | $ / shares | $ 18 | ||||||
Percentage of control acquired | 100.00% | 100.00% | |||||
Revenue contributed | $ 688.3 | 9,161.6 | |||||
Profit contributed | $ 152.4 | 2,028.1 | |||||
CONSIDERATION | |||||||
Cash | $ 2,080.7 | R 27,174.5 | |||||
Liability raised in respect of dissenting shareholders | 104.5 | 1,364.3 | |||||
Settlement of share-based payment awards (cash) | 16.2 | 211.9 | |||||
Total consideration | 2,201.4 | R 28,750.7 | |||||
Acquisition related costs | R 528.5 | ||||||
Stillwater | Net deferred tax liabilities | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Increase (decrease) due to remeasurement | (3.6) | R (46.7) | |||||
Stillwater | Property, plant and equipment member | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Increase (decrease) due to remeasurement | (9.4) | (123.7) | |||||
Stillwater | Goodwill | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Increase (decrease) due to remeasurement | $ 5.8 | R 77 |
ACQUISITIONS - Stillwater ident
ACQUISITIONS - Stillwater identifiable assets/liabilities, goodwill (Details) R in Millions | May 04, 2017USD ($) | Dec. 31, 2018ZAR (R) | Dec. 31, 2017ZAR (R) | May 04, 2017ZAR (R) | Dec. 31, 2016ZAR (R) | Dec. 31, 2015ZAR (R) |
IDENTIFIABLE ASSETS ACQUIRED AND LIABILITIES ASSUMED | ||||||
Environmental rehabilitation obligation | R (672.7) | R (312.1) | R (709.8) | |||
Gain on Acquisition | ||||||
Goodwill.. | 6,889.6 | R 6,396 | R 936 | R 736.7 | ||
Goodwill expected to be deductible for tax purposes | R 0 | |||||
Stillwater | ||||||
IDENTIFIABLE ASSETS ACQUIRED AND LIABILITIES ASSUMED | ||||||
Property, plant and equipment | $ 2,293,200,000 | R 29,948.6 | ||||
Other non-current assets | 6,900,000 | 90.8 | ||||
Inventories | 159,700,000 | 2,085.4 | ||||
Current investments | 278,900,000 | 3,642.2 | ||||
Cash and cash equivalents | 137,200,000 | 1,792.2 | ||||
Other current assets | 37,300,000 | 487.3 | ||||
Borrowings | (23,900,000) | (312.1) | ||||
Environmental rehabilitation obligation | (573,200,000) | (7,486.3) | ||||
Deferred tax liabilities | (19,900,000) | (260.3) | ||||
Other non-current liabilities | (454,600,000) | (5,937.6) | ||||
Trade and other payables | (88,100,000) | (1,150.1) | ||||
Other current liabilities | (1,800,000) | (23.3) | ||||
Total fair value of identifiable net assets acquired | 1,751,700,000 | 22,876.8 | ||||
PGM (4E) basket price (R/oz) | $ | 1,375 | |||||
Palladium price (USD/oz) | $ | 880 | |||||
Gain on Acquisition | ||||||
Consideration | 2,201,400,000 | 28,750.7 | ||||
Fair value of identifiable net assets | (1,751,700,000) | (22,876.8) | ||||
Goodwill recognised as of acquisition date | $ 449,700,000 | 5,873.9 | ||||
Goodwill expected to be deductible for tax purposes | R 0 | |||||
Stillwater and East Boulder mines and Columbus metallurgical complex | ||||||
IDENTIFIABLE ASSETS ACQUIRED AND LIABILITIES ASSUMED | ||||||
Discount rate used in current estimate of value in use | 8.60% | 8.60% | ||||
Blitz project | ||||||
IDENTIFIABLE ASSETS ACQUIRED AND LIABILITIES ASSUMED | ||||||
Discount rate used in current estimate of value in use | 10.30% | 10.30% |
GOODWILL - Changes to balance a
GOODWILL - Changes to balance and allocations of goodwill in acquisitions (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in goodwill | |||
Balance at beginning of the year | R 6,396 | R 936 | R 736.7 |
Impairment | (436.3) | (99.1) | (201.3) |
Goodwill on acquisition | 34.9 | 5,873.9 | 400.6 |
Foreign currency translation | 895 | (314.8) | |
Balance at end of the year | 6,889.6 | R 6,396 | R 936 |
Goodwill expected to be deducted for tax purposes | 0 | ||
Aquarius Acquisition | Kroondal | |||
Changes in goodwill | |||
Goodwill on acquisition | 133.5 | ||
Aquarius Acquisition | Rustenburg operations | |||
Changes in goodwill | |||
Goodwill on acquisition | R 267.1 |
GOODWILL - Estimates and Assump
GOODWILL - Estimates and Assumptions Used in the Calculation of Goodwill (Details) - ZAR (R) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of reconciliation of changes in goodwill [line items] | |||
Goodwill impairment | R 436,300,000 | R 99,100,000 | R 201,300,000 |
WRTRP exploration and evaluation assets | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Goodwill impairment | R 436,300,000 | ||
Burnstone | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Nominal discount rate | 17.40% | ||
SA PGM operations | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Long-term PGM 4E basket price (R/4Eoz) | R 15,050 | 14,270 | |
Long-term PGM 2E basket price (USD/2Eoz) | R 1,010 | R 1,015 | |
SA PGM operations | UNITED STATES | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Nominal discount rate | 8.50% | ||
Inflation rate | 1.90% | ||
SA PGM operations | South Africa | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Nominal discount rate | 14.30% | 14.50% | |
Inflation rate | 5.00% | 5.30% | |
SA PGM operations | Mine development, infrastructure and other | Minimum | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Useful life | 12 years | 9 years | |
SA PGM operations | Mine development, infrastructure and other | Maximum | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Useful life | 28 years | 34 years | |
SA Gold operations | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Long-term gold price (R/kg) | R 585,500 | R 545,000 | |
SA Gold operations | South Africa | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Nominal discount rate | 12.60% | 12.10% | |
Inflation rate | 5.00% | 5.30% | |
SA Gold operations | Mine development, infrastructure and other | Minimum | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Useful life | 5 years | 12 years | |
SA Gold operations | Mine development, infrastructure and other | Maximum | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Useful life | 20 years | 22 years |
EQUITY-ACCOUNTED INVESTMENTS -
EQUITY-ACCOUNTED INVESTMENTS - Narrative and movement (Details) R in Millions, $ in Millions | Oct. 28, 2018USD ($) | Oct. 25, 2018shares | Dec. 18, 2014ZAR (R) | Dec. 31, 2018ZAR (R)shares | Dec. 31, 2017ZAR (R)shares | Dec. 31, 2016ZAR (R)shares | Apr. 11, 2018shares | Dec. 31, 2015shares |
EQUITY-ACCOUNTED INVESTMENTS | ||||||||
Number of shares issued | shares | 2,266,260,491 | 2,168,721,220 | 929,004,342 | 87,145,885 | 916,140,000 | |||
Balance at the beginning of the period | R 2,244.1 | R 2,157.4 | ||||||
Gain on foreign exchange differences | 1,169.1 | 292.4 | R 219.6 | |||||
Balance at the end of the period | 3,733.9 | R 2,244.1 | R 2,157.4 | |||||
Aldebaran Resources Inc. [Member] | ||||||||
EQUITY-ACCOUNTED INVESTMENTS | ||||||||
Number of shares issued | shares | 77,635,957 | |||||||
Peregrine Metals Ltd. [Member] | ||||||||
EQUITY-ACCOUNTED INVESTMENTS | ||||||||
Debt term | 5 years | |||||||
Proceeds from sales of investments accounted for using equity method | $ | $ 15 | |||||||
Initial financing | $ | $ 30 | |||||||
Additional earn-in period | 3 years | |||||||
Equity-accounted investment of acquisition of joint venture | 956 | |||||||
Foreign currency translation | 22 | |||||||
Balance at the end of the period | R 978 | |||||||
Peregrine Metals Ltd. [Member] | Aldebaran Resources Inc. [Member] | ||||||||
EQUITY-ACCOUNTED INVESTMENTS | ||||||||
Maximum ownership interest of counterparty, as a percent | 80.00% | |||||||
Initial ownership interest of counterparty, as a percent | 60.00% | |||||||
Additional possible ownership interest, as a percent | 20.00% | |||||||
Equity interest consideration, as a percent | 19.90% | |||||||
Expenditure for additional ownership interest | $ | $ 25 | |||||||
Joint venture number of shares received | shares | 15,449,555 | |||||||
Rand Refinery | ||||||||
EQUITY-ACCOUNTED INVESTMENTS | ||||||||
Interest in associates (as a percent) | 44.40% | 33.10% | 33.10% | |||||
Amount of draw down from loan | R 1,029 | |||||||
Loan | 1,200 | |||||||
Balance at the beginning of the period | R 198.4 | R 72.4 | R 148.7 | |||||
Share of results of equity-accounted joint venture investee after tax | 143.7 | 124.5 | (116.5) | |||||
Dividends received | 8.2 | 8.2 | 8.2 | |||||
Interest income on loan to equity-accounted investee capitalised | 1.5 | 40.2 | ||||||
Preference shares redeemed | (102.8) | |||||||
Balance at the end of the period | R 239.3 | 198.4 | 72.4 | |||||
Mimosa | ||||||||
EQUITY-ACCOUNTED INVESTMENTS | ||||||||
Interest in associates (as a percent) | 50.00% | |||||||
Balance at the beginning of the period | R 2,012.9 | 2,049.3 | ||||||
Share of results of equity-accounted associate investee after tax | 210.5 | 175 | 114.9 | |||||
Dividends received | 87 | |||||||
Equity-accounted investment on acquisition of subsidiaries | 2,066.7 | |||||||
Foreign currency translation | 356 | (211.4) | (132.3) | |||||
Balance at the end of the period | 2,492.4 | 2,012.9 | 2,049.3 | |||||
Other equity-accounted investments | ||||||||
EQUITY-ACCOUNTED INVESTMENTS | ||||||||
Balance at the beginning of the period | 32.8 | 35.7 | ||||||
Balance at the end of the period | R 24.2 | R 32.8 | R 35.7 | |||||
Subordinated shareholders loan [member] | Rand Refinery | ||||||||
EQUITY-ACCOUNTED INVESTMENTS | ||||||||
Loan | R 384.6 | |||||||
Debt term | 2 years |
EQUITY-ACCOUNTED INVESTMENTS _2
EQUITY-ACCOUNTED INVESTMENTS - Summarised financial statements (Details) - ZAR (R) R in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
EQUITY-ACCOUNTED INVESTMENTS | ||||
Revenue | R 50,656.4 | R 45,911.6 | R 31,240.7 | |
Depreciation and amortisation | (6,613.8) | (5,699.7) | (4,041.9) | |
Interest income | 482.1 | 415.5 | 331.4 | |
Finance expense | (3,134.7) | (2,971.8) | (903.1) | |
Income tax | (1,083.8) | 2,946.6 | (1,202.1) | |
(Loss) profit for the year | (2,520.7) | (4,433.1) | 3,042.7 | |
Other comprehensive income | 1,764.1 | (627.2) | (131.4) | |
Total comprehensive income | (756.6) | (5,060.3) | 2,911.3 | |
Non-current assets | 69,727.7 | 64,067.3 | 34,018.1 | |
Property, plant and equipment | 54,558.2 | 51,444.6 | 27,240.7 | |
Current assets | 15,195.3 | 12,004.5 | 7,703.2 | |
Cash and cash equivalents | 2,549.1 | 2,062.4 | 967.9 | R 717.4 |
Non-current liabilities | (45,566) | (43,635.8) | (18,995.6) | |
Current liabilities | (14,632.6) | (8,437.8) | (6,256.6) | |
Impairments | (3,041.4) | (4,411) | (1,381.1) | |
Total equity-accounted investments | 3,733.9 | 2,244.1 | 2,157.4 | |
Peregrine Metals Ltd. [Member] | ||||
EQUITY-ACCOUNTED INVESTMENTS | ||||
Net assets (liabilities) | 836.8 | |||
Reconciling items | 141.2 | |||
Total equity-accounted investments | 978 | |||
Peregrine Metals Ltd. [Member] | Separate [member] | ||||
EQUITY-ACCOUNTED INVESTMENTS | ||||
Non-current assets | 1,714.6 | |||
Current assets | 23.9 | |||
Non-current liabilities | (342.6) | |||
Current liabilities | (1.3) | |||
Net assets (liabilities) | 1,394.6 | |||
Rand Refinery | ||||
EQUITY-ACCOUNTED INVESTMENTS | ||||
Net assets (liabilities) | 614.5 | 314.1 | (168.2) | |
Dividend received | (8.2) | (8.2) | (8.2) | |
Fair value adjustment | (35.5) | (35.5) | (35.5) | |
Impairments | (119.6) | (119.6) | (119.6) | |
Loan to equity-accounted investee | 403.9 | |||
Redeemable preference shares in excess of interest | (109.1) | 47.6 | ||
Total equity-accounted investments | R 239.3 | 198.4 | 72.4 | R 148.7 |
Proportional share, as a percent | 37.40% | |||
Rand Refinery | Separate [member] | ||||
EQUITY-ACCOUNTED INVESTMENTS | ||||
Revenue | R 644 | 649 | 903 | |
Total comprehensive income | 434 | 374 | (352) | |
Non-current assets | 699 | 702 | 636 | |
Current assets | 1,088 | 669 | 419 | |
Non-current liabilities | (44) | (31) | (1,095) | |
Current liabilities | (359) | (391) | (467) | |
Net assets (liabilities) | 1,384 | 949 | (507) | |
Mimosa | ||||
EQUITY-ACCOUNTED INVESTMENTS | ||||
Net assets (liabilities) | 2,543.8 | 2,195.7 | 2,153.6 | |
Dividend received | (87) | |||
Reconciling items | (51.4) | (182.8) | (104.3) | |
Total equity-accounted investments | 2,492.4 | 2,012.9 | 2,049.3 | |
Mimosa | Separate [member] | ||||
EQUITY-ACCOUNTED INVESTMENTS | ||||
Revenue | 3,714.9 | 3,375.4 | 2,446.4 | |
Depreciation and amortisation | (383.1) | (423.4) | (447.4) | |
Interest income | 17.5 | 1 | ||
Finance expense | (26) | (20) | (22.4) | |
Income tax | (381.8) | (245) | (185.1) | |
(Loss) profit for the year | 420.9 | 350.1 | 229.8 | |
Other comprehensive income | 712 | 72.7 | (264.6) | |
Total comprehensive income | 1,132.9 | 422.8 | (34.8) | |
Non-current assets | 4,592.3 | 4,007.8 | 4,079 | |
Property, plant and equipment | 4,592.3 | 4,007.8 | 4,079 | |
Current assets | 2,047.9 | 1,916.2 | 2,259.5 | |
Cash and cash equivalents | 184.8 | 281.5 | 191.2 | |
Other current assets | 1,863.1 | 1,634.7 | 2,068.3 | |
Non-current liabilities | (1,168.1) | (993.6) | (1,131.2) | |
Non-current financial liabilities | (60.7) | (94.2) | (141.2) | |
Other non-current liabilities | (1,107.4) | (899.4) | (990) | |
Current liabilities | (384.6) | (539.1) | (900.1) | |
Current financial liabilities | (377.7) | (487.4) | (762.2) | |
Other current liabilities | (6.9) | (51.7) | (137.9) | |
Net assets (liabilities) | R 5,087.5 | R 4,391.3 | R 4,307.2 |
INTERESTS IN JOINT OPERATIONS_2
INTERESTS IN JOINT OPERATIONS (Details) R in Millions | 12 Months Ended | ||
Dec. 31, 2018ZAR (R)item | Dec. 31, 2017ZAR (R) | Dec. 31, 2016ZAR (R) | |
INTERESTS IN JOINT OPERATIONS | |||
Loss on foreign exchange differences | R (1,169.1) | R (292.4) | R (219.6) |
Profit before tax | (1,436.9) | (7,379.7) | 4,244.8 |
(Loss) profit for the year | (2,520.7) | (4,433.1) | 3,042.7 |
Non-current assets | 69,727.7 | 64,067.3 | 34,018.1 |
Current assets | 15,195.3 | 12,004.5 | 7,703.2 |
Current liabilities | R (14,632.6) | (8,437.8) | (6,256.6) |
Kroondal Mine | |||
INTERESTS IN JOINT OPERATIONS | |||
Interest in joint operation (as a percent) | 50.00% | ||
Number of joint operations | item | 2 | ||
Loss on foreign exchange differences | R 132.7 | (94.4) | (67.8) |
Profit before tax | 677.7 | 175 | 90.8 |
(Loss) profit for the year | 677.7 | 175 | 90.8 |
Non-current assets | 1,115.7 | 1,284 | 1,296.1 |
Current assets | 1,828.2 | 1,400.5 | 1,208.1 |
Current liabilities | (271.3) | (283.2) | (288.7) |
Net assets (liabilities) | R 2,672.6 | R 2,401.3 | R 2,215.5 |
ENVIRONMENTAL REHABILITATION _5
ENVIRONMENTAL REHABILITATION OBLIGATION FUND (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
ENVIRONMENTAL REHABILITATION OBLIGATION FUNDS | |||
Balance at beginning of the year | R 3,492.4 | R 3,100.5 | R 2,413.9 |
Contributions | 63 | 114.5 | 74.7 |
Interest income | 223.5 | 230.4 | 168.2 |
Fair value adjustment | (24.9) | 46.5 | 11.1 |
Environmental rehabilitation obligation funds on acquisition of subsidiaries | 244.7 | 0.5 | 432.6 |
Balance at end of the year | 3,998.7 | 3,492.4 | 3,100.5 |
Restricted cash portion | 633.9 | 483.8 | 352.3 |
Funds | R 3,364.8 | R 3,008.6 | R 2,748.2 |
ENVIRONMENTAL REHABILITATION _6
ENVIRONMENTAL REHABILITATION OBLIGATION FUND - FV (Details) - ZAR (R) R in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of fair value measurement of assets [line items] | ||||
Environmental rehabilitation obligation funds | R 3,998.7 | R 3,492.4 | R 3,100.5 | R 2,413.9 |
Level 1 | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Environmental rehabilitation obligation funds | 3,634 | 3,117.6 | 2,630.6 | |
Level 2 | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Environmental rehabilitation obligation funds | R 364.7 | R 374.8 | R 469.9 |
OTHER RECEIVABLES AND OTHER P_3
OTHER RECEIVABLES AND OTHER PAYABLES - Other receivables (Details) - ZAR (R) R in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2016 | |
Other Receivables | ||||
Right of recovery receivable | R 160.5 | R 176.8 | R 112.4 | |
Rates and taxes receivable | 105.6 | 106.2 | 82.4 | |
Anglo American Platinum financial assets | 469.7 | R 469.7 | 469.7 | |
Other | 53.1 | 66.6 | 1.4 | |
Other receivables | 319.2 | 349.6 | 665.9 | |
Reconciliation of the non-current and current portion of the other receivables | ||||
Other receivables | 319.2 | 349.6 | 665.9 | |
Current portion of other receivables | (35.2) | (35.2) | (310.6) | |
Other non-current receivables | 284 | R 314.4 | R 355.3 | |
Anglo American Platinum financial asset movement | ||||
Balance at the beginning of the year | 469.7 | |||
Interest income | 42.2 | 6.8 | ||
Fair value loss | (467.5) | |||
Payments received | R (44.4) | |||
Financial asset on acquisition of subsidiary | 462.9 | |||
Balance at end of the year | R 469.7 |
OTHER RECEIVABLES AND OTHER P_4
OTHER RECEIVABLES AND OTHER PAYABLE - Other payables (Details) - ZAR (R) R in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Other payables | |||
Deferred payment | R 2,205.9 | R 2,194.7 | R 1,577.4 |
Right of recovery payable | 83.2 | 69.3 | 36.3 |
Dissenting shareholder liability | 287.1 | 1,349.7 | |
Other | 256.3 | 188.6 | |
Other payables | 2,832.5 | 3,802.3 | 1,613.7 |
Reconciliation of the non-current and current portion of the other payables | |||
Other payables | 2,832.5 | 3,802.3 | 1,613.7 |
Current portion of other payables | (303.3) | (41.9) | |
Non-current portion of other payables | R 2,529.2 | R 3,760.4 | R 1,613.7 |
OTHER RECEIVABLES AND OTHER P_5
OTHER RECEIVABLES AND OTHER PAYABLE - Right of recovery and Deferred Payment (Details) - ZAR (R) R in Millions | Oct. 19, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about business combination [line items] | ||||
Rehabilitation obligation payable (as a percent) | 50.00% | |||
Rehabilitation recoverable (as a percent) | 50.00% | |||
Deferred Payment movement | ||||
Balance at the beginning of the year | R 2,194.7 | R 1,577.4 | ||
Interest charge | 200.4 | 148.2 | R 24.1 | |
Payment of deferred payment related to acquisition | (38.6) | |||
Loss on revised estimated cash flows | (150.6) | 469.1 | ||
Deferred Payment on acquisition of subsidiaries | 1,553.3 | |||
Balance at end of the year | 2,205.9 | R 2,194.7 | R 1,577.4 | |
Minimum | Rustenburg Operations Acquisition | ||||
Disclosure of detailed information about business combination [line items] | ||||
Gross minimum deferred payment for the contingent consideration | R 3,000 | |||
Maximum | ||||
Disclosure of detailed information about business combination [line items] | ||||
Contractual rehabilitation liability | R 172 | |||
Maximum | Rustenburg Operations Acquisition | ||||
Disclosure of detailed information about business combination [line items] | ||||
Annual payment from seller to ensure that free cash flow for the year is zero | R 267 |
OTHER RECEIVABLES AND OTHER P_6
OTHER RECEIVABLES AND OTHER PAYABLE - Dissenting shareholder and Risk (Details) $ / shares in Units, R in Millions, $ in Millions | Aug. 16, 2018shares | Mar. 28, 2018USD ($)$ / shares | May 26, 2017shares | May 22, 2017shares | May 19, 2017shares | May 04, 2017item$ / shares | Sep. 30, 2018USD ($) | Dec. 31, 2018ZAR (R) | Dec. 31, 2017ZAR (R) |
Movement In Dissenting Shareholder Liability [Abstract] | |||||||||
Balance at the beginning of the year | R 1,349.7 | ||||||||
Interest charge | 68.1 | R 62.9 | |||||||
Payments to dissenting shareholders | (1,375.8) | ||||||||
Dissenting shareholder liability on acquisition of subsidiary | 1,364.3 | ||||||||
Foreign currency translation reserve | 245.1 | (77.5) | |||||||
Balance at the end of the year | R 287.1 | R 1,349.7 | |||||||
Stillwater | |||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||
Price offered per share | $ / shares | $ 18 | ||||||||
Rustenburg Operations Acquisition | Commodity price risk | |||||||||
Movement In Dissenting Shareholder Liability [Abstract] | |||||||||
Percentage decrease in risk assumption | 1.00% | ||||||||
(Increase) in gain due to decrease in commodity price | R 179.8 | ||||||||
Percentage increase in risk assumption | 1.00% | ||||||||
Increase in loss due to increase in commodity price | R 126.4 | ||||||||
In re Appraisal of Stillwater Mining Company | |||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||
Number of petitions | item | 3 | ||||||||
Number of shares held by claimants | shares | 5,419,523 | ||||||||
Movement In Dissenting Shareholder Liability [Abstract] | |||||||||
Payments to dissenting shareholders | $ | $ (87.5) | ||||||||
Blue Mountain Credit Alternatives Master Fund L.P. et al. vs. Stillwater Mining Company | |||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||
Number of shares held by claimants | shares | 4,219,523 | ||||||||
Brigade Leveraged Capital Structures Fund Ltd. et al. vs. Stillwater Mining Company | |||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||
Number of shares held by claimants | shares | 1,200,000 | ||||||||
Hillary Shane Revocable Trust, et al. vs. Stillwater Mining Company | |||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||||||
Number of shares held by claimants | shares | 384,000 | ||||||||
Price offered per share | $ / shares | $ 18 | ||||||||
Settlement interest rate, as a percent | 1.75% | ||||||||
Total settlement amount | $ | $ 7 |
INVENTORIES (Details)
INVENTORIES (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
INVENTORIES | |||
Consumable stores | R 1,051 | R 828.7 | R 481.7 |
Ore stockpiles and in-process | 3,322.7 | 1,955.9 | 51.8 |
Gold-on-hand | 143.3 | 42.9 | |
PGMs-on-hand | 777.8 | 637.5 | |
Uranium finished goods and uranium-in-process | 104.4 | 100.4 | |
Total inventories | 5,294.8 | 3,526.5 | 676.8 |
Cost of consumable stores consumed | R 9,327.9 | R 8,789.4 | 5,243.2 |
Net realisable value write down | R 93.3 |
TRADE AND OTHER RECEIVABLE (Det
TRADE AND OTHER RECEIVABLE (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Payroll debtors | R 127.9 | R 174.1 | R 154.7 |
Interest receivable | 8.9 | 8.5 | 6.6 |
Financial assets | 6,317.3 | 5,626 | 5,127.8 |
Prepayments | 296.9 | 245 | 298.1 |
Value added tax receivables | 218.8 | 326.6 | 322 |
Total trade and other receivables | 6,833 | 6,197.6 | 5,747.9 |
Impairments | 3,041.4 | 4,411 | 1,381.1 |
Gold Mining Activities [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Current trade receivables | 433.8 | 499.6 | 658.1 |
PGM Mining Activities [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Current trade receivables | 5,310.1 | 4,512.4 | 4,001.9 |
Trade receivables | 1,523.6 | ||
Contract receivables | 3,786.5 | ||
Other Than Gold And PGM Mining Activities [Member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Current trade receivables | 436.6 | 431.4 | 306.5 |
Trade receivables | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Impairments | 0 | ||
Trade receivables | Financial instruments credit-impaired [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Receivables | 15.8 | 5.7 | 2.6 |
Trade receivables | Financial instruments not credit-impaired [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Receivables | R 28.4 | R 9 | R 11.7 |
CASH AND CASH EQUIVALENTS (Deta
CASH AND CASH EQUIVALENTS (Details) R in Millions, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018ZAR (R) | Dec. 31, 2017ZAR (R) | Dec. 31, 2016ZAR (R) | Dec. 31, 2015ZAR (R) |
CASH AND CASH EQUIVALENTS. | |||||
Cash at the bank and on hand | R 2,549.1 | R 2,062.4 | R 967.9 | ||
Total cash and cash equivalents | 2,549.1 | R 2,062.4 | R 967.9 | R 717.4 | |
Restricted cash held in money market fund as collateral for environmental bonding | $ 6.4 | R 91.8 |
STATED SHARE CAPITAL (Details)
STATED SHARE CAPITAL (Details) R in Millions | Apr. 11, 2018shares | Dec. 31, 2018shares | Dec. 31, 2017ZAR (R)shares | Apr. 25, 2017shares | Dec. 31, 2016shares | Dec. 31, 2015shares |
STATED SHARE CAPITAL. | ||||||
Authorised number of shares | 10,000,000,000 | 2,000,000,000 | ||||
Number of shares issued | 87,145,885 | 2,266,260,491 | 2,168,721,220 | 929,004,342 | 916,140,000 | |
Shares issued under SGL Share Plan | 10,393,386 | 1,407,060 | ||||
Raised net capital | R | R 12,932.4 | |||||
Proceeds from shares issued | R | 13,438.5 | |||||
Transaction costs paid on rights issue shares issued | R | R 506.1 | |||||
Rights issue | 1,195,787,294 | |||||
Share rights issuance ratio | 128.5714% | |||||
Capitalization Issue | 42,522,524 | |||||
Capitalisation issuance ratio | 0.04 | 0.02 |
NON-CONTROLLING INTERESTS (Deta
NON-CONTROLLING INTERESTS (Details) - ZAR (R) R in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of subsidiaries [line items] | ||||
Non-controlling interests | R 24,724.4 | R 23,998.2 | R 16,469.1 | R 14,984.8 |
Non-controlling interests member | ||||
Disclosure of subsidiaries [line items] | ||||
Non-controlling interests | 936 | 19.8 | 17.7 | R 109.8 |
DRDGOLD Limited | Non-controlling interests member | ||||
Disclosure of subsidiaries [line items] | ||||
Non-controlling interests | 913.2 | |||
Platinum Mile Subsidiary [Member] | Non-controlling interests member | ||||
Disclosure of subsidiaries [line items] | ||||
Non-controlling interests | 18.4 | 15.7 | 14.3 | |
GTSM | Non-controlling interests member | ||||
Disclosure of subsidiaries [line items] | ||||
Non-controlling interests | R 4.4 | R 4.1 | R 3.4 |
BORROWINGS (Details)
BORROWINGS (Details) R in Millions, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018ZAR (R) | Sep. 19, 2018USD ($) | Sep. 11, 2018USD ($) | Dec. 31, 2017ZAR (R) | Sep. 19, 2017USD ($) | Dec. 31, 2016ZAR (R) | Nov. 15, 2016ZAR (R) | Feb. 15, 2016USD ($) | Dec. 31, 2015ZAR (R) | Aug. 24, 2015USD ($) | Jul. 01, 2014USD ($) | Dec. 13, 2013ZAR (R) |
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Total borrowings | R 24,504.7 | R 25,649.5 | R 8,973.8 | ||||||||||
Current portion of borrowings | (6,188.2) | (1,657.5) | (752.3) | ||||||||||
Total non-current portion of non-current borrowings | 18,316.5 | 23,992 | 8,221.5 | ||||||||||
DERIVATIVE FINANCIAL INSTRUMENT | |||||||||||||
Derivative financial instrument | 408.9 | 1,093.5 | |||||||||||
Non-current portion of derivative financial instrument | 408.9 | 1,093.5 | |||||||||||
US$600 million revolving credit facility | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Face amount of debt | $ 600 | 600 | |||||||||||
Total borrowings | 2,726.5 | ||||||||||||
R6.0 billion revolving credit facility | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Face amount of debt | 6,000 | R 6,000 | |||||||||||
Total borrowings | 5,896.4 | 5,536.4 | 5,100 | ||||||||||
US$350 million revolving credit facility | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Face amount of debt | $ | 350 | $ 350 | $ 300 | ||||||||||
Total borrowings | 1,137.1 | 1,369 | |||||||||||
US$1.05 billion Bond | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Face amount of debt | $ | 2,022,000 | $ 349 | |||||||||||
Total borrowings | 9,808.7 | 12,597.7 | |||||||||||
US$450 million Convertible Bond | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Face amount of debt | $ | $ 384 | $ 66 | $ 450 | ||||||||||
Total borrowings | 4,496.6 | 4,357.1 | |||||||||||
DERIVATIVE FINANCIAL INSTRUMENT | |||||||||||||
Derivative financial instrument | 408.9 | 1,093.5 | |||||||||||
Burnstone Debt | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Total borrowings | 1,145.1 | 1,537.5 | 1,752.6 | R 1,808.3 | $ 178.1 | ||||||||
Other borrowings | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Total borrowings | 425.6 | 478.7 | 749.5 | ||||||||||
Franco-Nevada liability | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Total borrowings | 2 | 1.7 | R 2.7 | ||||||||||
Stillwater Convertible Debentures | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Total borrowings | R 3.8 | R 3.3 | |||||||||||
R4.5 billion facilities | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Face amount of debt | R 4,500 | R 4,500 | |||||||||||
Total borrowings | R 1,961.6 |
BORROWINGS - US$600 MILLION REV
BORROWINGS - US$600 MILLION REVOLVING CREDIT FACILITY (Details) R in Millions, $ in Millions | Sep. 19, 2018USD ($) | Dec. 31, 2018ZAR (R) | Dec. 31, 2017ZAR (R) | Dec. 31, 2016ZAR (R) | Dec. 31, 2018USD ($) | Dec. 31, 2018ZAR (R) |
Disclosure of detailed information about borrowings [line items] | ||||||
Balance at beginning of period | R 25,649.5 | R 8,973.8 | ||||
Loans raised | $ 500 | 17,130.2 | 69,593.8 | R 17,280.5 | ||
Loans repaid | (21,231.5) | (55,719.5) | (11,834.7) | |||
(Gain)/loss on foreign exchange differences | (1,169.1) | (292.4) | (219.6) | |||
Balance at end of period | R 24,504.7 | R 25,649.5 | R 8,973.8 | |||
US$600 million revolving credit facility | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Face amount of debt | $ 600 | R 600 | ||||
Utilisation fee when loans outstanding as % of the total loans is less than or equal to 33 1/3% | 0.15% | |||||
Utilisation fee when loans outstanding as % of the total loans is greater than 33 1/3 % and less than or equal to 66 2/3 % | 0.30% | |||||
Utilisation fee when loans outstanding as % of the total loans is greater than 66 2/3 % | 0.50% | |||||
Debt term | 3 years | |||||
Loans raised | R 5,391.6 | |||||
Loans repaid | (2,744.7) | |||||
(Gain)/loss on foreign exchange differences | 73.1 | |||||
Foreign currency translation | 6.5 | |||||
Balance at end of period | R 2,726.5 | |||||
US$600 million revolving credit facility | LIBOR | Net Debt To EBITDA Less Than Or Equal To 2.5x [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Interest rate margin | 1.85% | 1.85% | ||||
US$600 million revolving credit facility | LIBOR | Net Debt To EBITDA Greater Than 2.5x [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Interest rate margin | 2.00% | 2.00% |
BORROWINGS - R6.0 BILLION REVOL
BORROWINGS - R6.0 BILLION REVOLVING CREDIT FACILITY (Details) R in Millions, $ in Millions | Sep. 19, 2018USD ($) | Nov. 15, 2016ZAR (R) | Dec. 13, 2013ZAR (R) | Dec. 31, 2018ZAR (R) | Dec. 31, 2017ZAR (R) | Dec. 31, 2016ZAR (R) |
Disclosure of detailed information about borrowings [line items] | ||||||
Balance at beginning of period | R 25,649.5 | R 8,973.8 | ||||
Loans raised | $ 500 | 17,130.2 | 69,593.8 | R 17,280.5 | ||
Loans repaid | (21,231.5) | (55,719.5) | (11,834.7) | |||
Balance at end of period | 24,504.7 | 25,649.5 | 8,973.8 | |||
R6.0 billion revolving credit facility | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Face amount of debt | R 6,000 | R 6,000 | ||||
Debt term | 3 years | 3 years | ||||
Balance at beginning of period | R 5,536.4 | 5,100 | ||||
Loans raised | 360 | 800 | 5,100 | |||
Loans repaid | (363.6) | |||||
Balance at end of period | R 5,896.4 | R 5,536.4 | 5,100 | |||
R4.5 billion facilities | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Face amount of debt | R 4,500 | R 4,500 | ||||
Debt term | 3 years | |||||
Balance at beginning of period | 1,961.6 | |||||
Loans raised | 1,936.4 | |||||
Loans repaid | R (3,900) | |||||
JIBAR | R6.0 billion revolving credit facility | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Interest rate margin, covenant period, ratio below 3.0 | 2.40% | |||||
Interest rate margin, covenant period, ratio between 3.0 and 3.25 | 2.65% | |||||
Interest rate margin, ratio above 3.25 | 2.90% | |||||
Interest rate margin | 2.40% |
BORROWINGS - US$350 MILLION REV
BORROWINGS - US$350 MILLION REVOLVING CREDIT FACILITY (Details) R in Millions, $ in Millions | Sep. 19, 2018USD ($) | Aug. 24, 2015USD ($) | Dec. 31, 2018ZAR (R) | Dec. 31, 2017ZAR (R) | Dec. 31, 2016ZAR (R) | Dec. 31, 2018USD ($) | Feb. 15, 2016USD ($) |
Disclosure of detailed information about borrowings [line items] | |||||||
Balance at beginning of period | R 25,649.5 | R 8,973.8 | |||||
Loans raised | $ 500 | 17,130.2 | 69,593.8 | R 17,280.5 | |||
Loans repaid | (21,231.5) | (55,719.5) | (11,834.7) | ||||
(Gain)/loss on foreign exchange differences | (1,169.1) | (292.4) | (219.6) | ||||
Balance at end of period | 24,504.7 | 25,649.5 | 8,973.8 | ||||
US$350 million revolving credit facility | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Face amount of debt | $ | $ 300 | $ 350 | $ 350 | ||||
Debt term | 3 years | ||||||
Balance at beginning of period | 1,137.1 | 1,369 | |||||
Loans raised | 580 | 1,031.4 | 2,771.5 | ||||
Loans repaid | (1,779.6) | (1,198.2) | (1,211.6) | ||||
(Gain)/loss on foreign exchange differences | R 62.5 | (65.1) | (190.9) | ||||
Balance at end of period | R 1,137.1 | R 1,369 | |||||
LIBOR | US$350 million revolving credit facility | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Utilisation fee when loans outstanding as % of the total loans is less than or equal to 33 1/3% | 0.15% | ||||||
Utilisation fee when loans outstanding as % of the total loans is greater than 33 1/3 % and less than or equal to 66 2/3 % | 0.30% | ||||||
Utilisation fee when loans outstanding as % of the total loans is greater than 66 2/3 % | 0.50% | ||||||
Interest rate margin | 2.00% |
BORROWINGS - US$1.05 BILLION BO
BORROWINGS - US$1.05 BILLION BOND (Details) R in Millions, $ in Millions | Sep. 19, 2018USD ($) | Jun. 27, 2017USD ($) | Dec. 31, 2018ZAR (R) | Dec. 31, 2017ZAR (R) | Dec. 31, 2016ZAR (R) | Dec. 31, 2018USD ($) | Dec. 09, 2016USD ($) |
Disclosure of detailed information about borrowings [line items] | |||||||
Balance at beginning of period | R 25,649.5 | R 8,973.8 | |||||
Loans raised | $ 500 | 17,130.2 | 69,593.8 | R 17,280.5 | |||
Loans repaid | (21,231.5) | (55,719.5) | (11,834.7) | ||||
Interest charge | 1,572.5 | 2,091.9 | 427.5 | ||||
Unwinding of amortised cost | 538.3 | 251.8 | 141.4 | ||||
Balance at end of period | 24,504.7 | 25,649.5 | R 8,973.8 | ||||
Stillwater bridge facility | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Face amount of debt | $ | $ 2,650 | ||||||
Loans raised | 34,000.3 | ||||||
Loans repaid | (33,304) | ||||||
Foreign currency translation | (181.8) | ||||||
US$1.05 billion Bond | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Face amount of debt | $ | 349 | $ 2,022,000 | |||||
Bond purchase price | $ | $ 345 | ||||||
Balance at beginning of period | 12,597.7 | ||||||
Loans raised | 13,109.5 | ||||||
Loans repaid | (5,107.4) | ||||||
Interest charge | 836.6 | 478.1 | |||||
Accrued interest paid | (795.5) | (431.5) | |||||
Unwinding of amortised cost | 196.7 | 29.7 | |||||
Gain on derecognition of borrowings | 128.8 | ||||||
Foreign currency translation | 2,209.4 | (588.1) | |||||
Balance at end of period | R 9,808.7 | R 12,597.7 | |||||
6.125% Senior Notes due 2022 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Face amount of debt | $ | $ 500 | 353.7 | |||||
Interest rate (as a percent) | 6.125% | ||||||
Debt term | 5 years | ||||||
7.125% Senior Notes due 2025 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Face amount of debt | $ | $ 550 | $ 346.9 | |||||
Interest rate (as a percent) | 7.125% | ||||||
Debt term | 8 years |
BORROWINGS - US$450 MILLION CON
BORROWINGS - US$450 MILLION CONVERTIBLE BOND (Details) $ / shares in Units, R in Millions | Sep. 19, 2018USD ($) | Sep. 11, 2018USD ($) | Sep. 19, 2017USD ($)$ / shares | Dec. 31, 2018ZAR (R) | Dec. 31, 2017ZAR (R) | Dec. 31, 2016ZAR (R) | Dec. 31, 2018USD ($) | Dec. 31, 2018ZAR (R) | Dec. 09, 2016USD ($) |
Disclosure of detailed information about borrowings [line items] | |||||||||
Accrued interest and unwinding of amortised cost | R 538.3 | R 251.8 | R 141.4 | ||||||
Balance at beginning of period | 25,649.5 | 8,973.8 | |||||||
Loans raised | $ 500,000,000 | 17,130.2 | 69,593.8 | 17,280.5 | |||||
Loans repaid | 21,231.5 | 55,719.5 | 11,834.7 | ||||||
Interest charge | 1,572.5 | 2,091.9 | 427.5 | ||||||
Unwinding of amortised cost | 538.3 | 251.8 | 141.4 | ||||||
Gain on foreign exchange differences | (1,169.1) | (292.4) | (219.6) | ||||||
Balance at end of period | 24,504.7 | 25,649.5 | R 8,973.8 | ||||||
Balance at beginning of the year | 1,093.5 | ||||||||
Derivative financial instrument recognised | 1,296.6 | ||||||||
Balance at end of the year | 408.9 | 1,093.5 | |||||||
Stillwater bridge facility | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Face amount of debt | $ | $ 2,650,000,000 | ||||||||
Loans raised | 34,000.3 | ||||||||
Loans repaid | 33,304 | ||||||||
Gain on foreign exchange differences | (514.5) | ||||||||
Foreign currency translation | 181.8 | ||||||||
US$450 million Convertible Bond | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Face amount of debt | $ | $ 66,000,000 | $ 450,000,000 | $ 384,000,000 | ||||||
Coupon rate (as a percent) | 1.875% | ||||||||
Debt term | 6 years | ||||||||
Conversion premium | 35.00% | ||||||||
Weighted average share price | $ | $ 1.2281 | ||||||||
Initial conversion price | $ / shares | $ 1.6580 | ||||||||
Accrued interest and unwinding of amortised cost | 185.8 | 50.7 | |||||||
Balance at beginning of period | 4,357.1 | ||||||||
Loans repaid | $ 50,000,000 | 745.2 | |||||||
Interest charge | 105.9 | 29.8 | |||||||
Unwinding of amortised cost | 185.8 | 50.7 | |||||||
Gain on derecognition of borrowings | (50.9) | ||||||||
Gain on foreign exchange differences | 43.8 | (87.2) | |||||||
Balance at end of period | 4,496.6 | 4,357.1 | |||||||
Balance at beginning of the year | 1,093.5 | ||||||||
Gain on financial instruments | (115.9) | R (678.1) | |||||||
Gain on derecognition of financial instruments | 50.3 | ||||||||
Balance at end of the year | 408.9 | 1,093.5 | |||||||
US$450 million Convertible Bond | AMORTIZED COST | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Balance at beginning of period | 4,357.1 | ||||||||
Loans raised | 4,634.5 | ||||||||
Accrued interest paid | (111.7) | ||||||||
Gain on foreign exchange differences | 755.6 | (357.9) | |||||||
Balance at end of period | R 4,496.6 | R 4,357.1 |
BORROWINGS - R4.5 BILLION FACIL
BORROWINGS - R4.5 BILLION FACILITIES (Details) R in Millions, $ in Millions | Sep. 19, 2018USD ($) | Dec. 13, 2013ZAR (R) | Dec. 31, 2018ZAR (R) | Dec. 31, 2017ZAR (R) | Dec. 31, 2016ZAR (R) | Nov. 15, 2016ZAR (R) |
Disclosure of detailed information about borrowings [line items] | ||||||
Balance at beginning of period | R 25,649.5 | R 8,973.8 | ||||
Loans raised | $ 500 | 17,130.2 | 69,593.8 | R 17,280.5 | ||
Loans repaid | (21,231.5) | (55,719.5) | (11,834.7) | |||
Unwinding of amortised cost | 538.3 | 251.8 | 141.4 | |||
Balance at end of period | R 24,504.7 | R 25,649.5 | 8,973.8 | |||
R4.5 billion facilities | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Face amount of debt | R 4,500 | R 4,500 | ||||
Debt term | 3 years | |||||
Balance at beginning of period | 1,961.6 | |||||
Loans raised | 1,936.4 | |||||
Loans repaid | (3,900) | |||||
Unwinding of amortised cost | R 2 | |||||
R2.5 Billion Revolving Credit Facility [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Face amount of debt | R 2,500 | |||||
R2.0 Billion Term Loan Facility [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Face amount of debt | R 2,000 | |||||
Period of instalment payments | 6 months | |||||
Amount of equal instalment payments | R 250 | |||||
Amount of final instalment payment | R 750 | |||||
JIBAR | R2.5 Billion Revolving Credit Facility [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Interest rate margin | 2.85% | |||||
JIBAR | R2.0 Billion Term Loan Facility [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Interest rate margin | 2.75% |
BORROWINGS - BURNSTONE DEBT (De
BORROWINGS - BURNSTONE DEBT (Details) R in Millions, $ in Millions | Jul. 01, 2017 | Dec. 31, 2018USD ($) | Dec. 31, 2018ZAR (R) | Dec. 31, 2017ZAR (R) | Dec. 31, 2016ZAR (R) | Dec. 31, 2018ZAR (R)R / kgR / $ | Dec. 31, 2017ZAR (R)R / kgR / $ | Dec. 31, 2016ZAR (R)R / kgR / $ | Jul. 01, 2014USD ($) | Jul. 01, 2014ZAR (R) |
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings | R 25,649.5 | R 8,973.8 | R 8,973.8 | R 24,504.7 | R 25,649.5 | R 8,973.8 | ||||
Balance at beginning of period | 25,649.5 | 8,973.8 | ||||||||
Accrued interest and unwinding of amortised cost | 538.3 | 251.8 | 141.4 | |||||||
(Gain)/loss on foreign exchange differences | (1,169.1) | (292.4) | (219.6) | |||||||
Loans repaid | (21,231.5) | (55,719.5) | (11,834.7) | |||||||
Balance at end of period | R 24,504.7 | 25,649.5 | 8,973.8 | |||||||
Revised gold prices | R / kg | 585,500 | 545,000 | 570,000 | |||||||
Burnstone | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings | R 1,883.9 | |||||||||
Bank Lenders participation in Burnstone free cash flow after Burnstone Debt repaid in full | 10.00% | 10.00% | ||||||||
Maximum participation in Burnstone free cash flow after Burnstone Debt repaid in full | $ | $ 63 | |||||||||
Burnstone Debt | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings | R 1,537.5 | 1,752.6 | 1,808.3 | R 1,145.1 | R 1,537.5 | R 1,752.6 | $ 178.1 | |||
Burnstone assets | 2,000 | |||||||||
Period of the life-of-mine plan | 20 years | 20 years | ||||||||
Balance at beginning of period | R 1,537.5 | 1,752.6 | 1,808.3 | |||||||
Accrued interest and unwinding of amortised cost | 152.9 | 141.6 | 139.4 | |||||||
(Gain)/loss on revised estimated cash flows | R (804.6) | R (181.7) | R 29.3 | |||||||
(Gain)/loss on foreign exchange differences | 259.3 | (175) | (224.4) | |||||||
Borrowings on acquisition of subsidiary | R 1,007.6 | |||||||||
Balance at end of period | R 1,145.1 | R 1,537.5 | R 1,752.6 | |||||||
Exchange rates | R / $ | 14 | 12.94 | 13.68 | |||||||
A1 U S $0.2 Million [Member] | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Face amount of debt | $ | 0.2 | |||||||||
A2 U S $7.8 Million [Member] | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Face amount of debt | $ | 7.8 | |||||||||
Free cash flow used to repay Wits Gold Loan (as a percent) | 50.00% | |||||||||
Free cash flow used to repay Burnstone Debt (as a percent) | 50.00% | |||||||||
A3 U S $51.0 Million And A4 US $119.1 Million [Member] | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Free cash flow used to repay Wits Gold Loan (as a percent) | 90.00% | 90.00% | ||||||||
Free cash flow used to repay Burnstone Debt (as a percent) | 10.00% | 10.00% | ||||||||
Free cash flow used to repay Burnstone Debt after settlement of Wits Gold Loan (as a percent) | 30.00% | 30.00% | ||||||||
A3 U S $51.0 Million [Member] | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Face amount of debt | $ | 51 | |||||||||
A4 U S $119.1 Million [Member] | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Face amount of debt | $ | $ 119.1 | |||||||||
LIBOR | A3 U S $51.0 Million And A4 US $119.1 Million [Member] | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Interest rate margin | 4.00% | 4.00% |
BORROWINGS - ACQUISITION BRIDGE
BORROWINGS - ACQUISITION BRIDGE FACILITIES (Details) R in Millions, $ in Millions | Sep. 19, 2018USD ($) | Dec. 09, 2016USD ($) | Dec. 31, 2018ZAR (R) | Dec. 31, 2017ZAR (R) | Dec. 31, 2016ZAR (R) |
Disclosure of detailed information about borrowings [line items] | |||||
Balance at beginning of period | R 25,649.5 | R 8,973.8 | |||
Loans raised | $ 500 | 17,130.2 | 69,593.8 | R 17,280.5 | |
Loans repaid | (21,231.5) | (55,719.5) | (11,834.7) | ||
Gain on foreign exchange differences | (1,169.1) | (292.4) | (219.6) | ||
Balance at end of period | R 24,504.7 | 25,649.5 | R 8,973.8 | ||
Stillwater bridge facility | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Face amount of debt | $ | $ 2,650 | ||||
Loans raised | 34,000.3 | ||||
Loans repaid | (33,304) | ||||
Gain on foreign exchange differences | (514.5) | ||||
Foreign currency translation | R (181.8) | ||||
C: US $1.6 billion bridge to debt | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Face amount of debt | $ | $ 1,600 | ||||
Term of loan: | 364 days | ||||
Facility A and B | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Earlier term of loan | 9 months | ||||
A: US $750 million bridge to equity | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Face amount of debt | $ | $ 750 | ||||
B: US $300 million bridge to cash | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Face amount of debt | $ | $ 300 | ||||
LIBOR | Stillwater bridge facility | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Interest rate margin months 1 - 3 | 3.25% | ||||
LIBOR | Stillwater bridge facility | Net debt to EBITDA less than or equal to 2.0x | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Interest rate margin months 4 - 6 | 4.25% | ||||
Interest rate margin months 7 - 9 | 5.25% | ||||
Interest rate margin months 10 - 12 | 6.25% | ||||
LIBOR | Stillwater bridge facility | Net debt to EBITDA greater than 2.0x | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Interest rate margin months 4 - 6 | 5.25% | ||||
Interest rate margin months 7 - 9 | 6.25% | ||||
Interest rate margin months 10 - 12 | 7.25% |
BORROWINGS - OTHER BORROWINGS (
BORROWINGS - OTHER BORROWINGS (Details) R in Millions, $ in Millions | Sep. 19, 2018USD ($) | Dec. 31, 2018ZAR (R) | Dec. 31, 2017ZAR (R) | Dec. 31, 2016ZAR (R) |
Disclosure of detailed information about borrowings [line items] | ||||
Balance at beginning of period | R 25,649.5 | R 8,973.8 | ||
Loans raised | $ 500 | 17,130.2 | 69,593.8 | R 17,280.5 |
Loans repaid | (21,231.5) | (55,719.5) | (11,834.7) | |
Unwinding of amortised cost | 538.3 | 251.8 | 141.4 | |
Balance at end of period | 24,504.7 | 25,649.5 | 8,973.8 | |
Other borrowings | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Balance at beginning of period | 478.7 | 749.5 | ||
Loans raised | 10,798.6 | 14,721.5 | 7,472.6 | |
Loans repaid | (10,854.6) | (14,992.3) | (6,723.1) | |
Unwinding of amortised cost | 2.9 | |||
Balance at end of period | R 425.6 | R 478.7 | R 749.5 |
BORROWINGS - LIQUIDITY RISK (De
BORROWINGS - LIQUIDITY RISK (Details) R in Millions, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018ZAR (R) | Sep. 19, 2018USD ($) | Sep. 11, 2018USD ($) | Dec. 31, 2017ZAR (R) | Sep. 19, 2017USD ($) | Nov. 15, 2016ZAR (R) | Feb. 15, 2016USD ($) | Aug. 24, 2015USD ($) |
Maturity analysis for financial assets held for managing liquidity risk | |||||||||
Trade and other payables | R 5,238.4 | R 4,276.4 | |||||||
Total | 41,623.2 | 41,307.5 | |||||||
Within one year | |||||||||
Maturity analysis for financial assets held for managing liquidity risk | |||||||||
Trade and other payables | 5,238.4 | 4,276.4 | |||||||
Total | 12,936.7 | 7,529.5 | |||||||
Between one and five years | |||||||||
Maturity analysis for financial assets held for managing liquidity risk | |||||||||
Total | 16,881.1 | 10,304.8 | |||||||
After five years | |||||||||
Maturity analysis for financial assets held for managing liquidity risk | |||||||||
Total | 11,805.4 | 23,473.2 | |||||||
US$600 million revolving credit facility | |||||||||
Maturity analysis for financial assets held for managing liquidity risk | |||||||||
Face amount of debt | $ 600 | 600 | |||||||
R6.0 billion revolving credit facility | |||||||||
Maturity analysis for financial assets held for managing liquidity risk | |||||||||
Face amount of debt | 6,000 | R 6,000 | |||||||
US$350 million revolving credit facility | |||||||||
Maturity analysis for financial assets held for managing liquidity risk | |||||||||
Face amount of debt | $ | 350 | $ 350 | $ 300 | ||||||
US$1.05 billion Bond | |||||||||
Maturity analysis for financial assets held for managing liquidity risk | |||||||||
Face amount of debt | $ | 2,022,000 | $ 349 | |||||||
US$450 million Convertible Bond | |||||||||
Maturity analysis for financial assets held for managing liquidity risk | |||||||||
Face amount of debt | $ | $ 384 | $ 66 | $ 450 | ||||||
Capital | US$600 million revolving credit facility | |||||||||
Maturity analysis for financial assets held for managing liquidity risk | |||||||||
Bank borrowings | 2,726.5 | 5,536.4 | |||||||
Capital | US$600 million revolving credit facility | Between one and five years | |||||||||
Maturity analysis for financial assets held for managing liquidity risk | |||||||||
Bank borrowings | 2,726.5 | 5,536.4 | |||||||
Capital | R6.0 billion revolving credit facility | |||||||||
Maturity analysis for financial assets held for managing liquidity risk | |||||||||
Bank borrowings | 5,896.4 | ||||||||
Capital | R6.0 billion revolving credit facility | Within one year | |||||||||
Maturity analysis for financial assets held for managing liquidity risk | |||||||||
Bank borrowings | 5,896.4 | ||||||||
Capital | US$350 million revolving credit facility | |||||||||
Maturity analysis for financial assets held for managing liquidity risk | |||||||||
Bank borrowings | 1,137.1 | ||||||||
Capital | US$350 million revolving credit facility | Within one year | |||||||||
Maturity analysis for financial assets held for managing liquidity risk | |||||||||
Bank borrowings | 1,137.1 | ||||||||
Capital | US$1.05 billion Bond | |||||||||
Maturity analysis for financial assets held for managing liquidity risk | |||||||||
Non-bank borrowings | 10,053.6 | 12,978 | |||||||
Capital | US$1.05 billion Bond | Between one and five years | |||||||||
Maturity analysis for financial assets held for managing liquidity risk | |||||||||
Non-bank borrowings | 5,075.6 | ||||||||
Capital | US$1.05 billion Bond | After five years | |||||||||
Maturity analysis for financial assets held for managing liquidity risk | |||||||||
Non-bank borrowings | 4,978 | 12,978 | |||||||
Capital | US$450 million Convertible Bond | |||||||||
Maturity analysis for financial assets held for managing liquidity risk | |||||||||
Non-bank borrowings | 5,510.4 | 5,562 | |||||||
Capital | US$450 million Convertible Bond | Between one and five years | |||||||||
Maturity analysis for financial assets held for managing liquidity risk | |||||||||
Non-bank borrowings | 5,510.4 | ||||||||
Capital | US$450 million Convertible Bond | After five years | |||||||||
Maturity analysis for financial assets held for managing liquidity risk | |||||||||
Non-bank borrowings | 5,562 | ||||||||
Capital | Burnstone Debt | |||||||||
Maturity analysis for financial assets held for managing liquidity risk | |||||||||
Non-bank borrowings | 2,552.9 | 2,102.4 | |||||||
Capital | Burnstone Debt | Between one and five years | |||||||||
Maturity analysis for financial assets held for managing liquidity risk | |||||||||
Non-bank borrowings | 96.2 | ||||||||
Capital | Burnstone Debt | After five years | |||||||||
Maturity analysis for financial assets held for managing liquidity risk | |||||||||
Non-bank borrowings | 2,552.9 | 2,006.2 | |||||||
Capital | Other borrowings | |||||||||
Maturity analysis for financial assets held for managing liquidity risk | |||||||||
Non-bank borrowings | 252.3 | 478.7 | |||||||
Capital | Other borrowings | Within one year | |||||||||
Maturity analysis for financial assets held for managing liquidity risk | |||||||||
Non-bank borrowings | 252.3 | 478.7 | |||||||
Capital | Franco-Nevada liability | |||||||||
Maturity analysis for financial assets held for managing liquidity risk | |||||||||
Non-bank borrowings | 2 | 1.7 | |||||||
Capital | Franco-Nevada liability | Within one year | |||||||||
Maturity analysis for financial assets held for managing liquidity risk | |||||||||
Non-bank borrowings | 2 | 1.7 | |||||||
Capital | Stillwater Convertible Debentures | |||||||||
Maturity analysis for financial assets held for managing liquidity risk | |||||||||
Non-bank borrowings | 3.8 | 3.3 | |||||||
Capital | Stillwater Convertible Debentures | Within one year | |||||||||
Maturity analysis for financial assets held for managing liquidity risk | |||||||||
Non-bank borrowings | 3.8 | 3.3 | |||||||
Interest | |||||||||
Maturity analysis for financial assets held for managing liquidity risk | |||||||||
Non-bank borrowings | 9,386.9 | 9,231.5 | |||||||
Interest | Within one year | |||||||||
Maturity analysis for financial assets held for managing liquidity risk | |||||||||
Non-bank borrowings | 1,543.8 | 1,632.3 | |||||||
Interest | Between one and five years | |||||||||
Maturity analysis for financial assets held for managing liquidity risk | |||||||||
Non-bank borrowings | 3,568.6 | 4,672.2 | |||||||
Interest | After five years | |||||||||
Maturity analysis for financial assets held for managing liquidity risk | |||||||||
Non-bank borrowings | R 4,274.5 | R 2,927 |
BORROWINGS - MARKET RISK (Detai
BORROWINGS - MARKET RISK (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest rate sensitivity | |||
Borrowings | R 24,504.7 | R 25,649.5 | R 8,973.8 |
Interest rate risk | |||
Interest rate sensitivity | |||
Amount exposed to risk | 24,498.9 | 25,644.5 | 8,971.1 |
Change in interest expense for downward change by 1.5% in interest rate | 167.7 | 132.5 | |
Change in interest expense for downward change by 1% in interest rate | 111.8 | 88.4 | |
Change in interest expense for downward change by 0.5% in interest rate | 55.9 | 44.2 | |
Change in interest expense for upward change by 0.5% in interest rate | (55.9) | (44.2) | |
Change in interest expense for upward change by 1% in interest rate | (111.8) | (88.4) | |
Change in interest expense for upward change by 1.5% in interest rate | (167.7) | (132.5) | |
JIBAR | Interest rate risk | |||
Interest rate sensitivity | |||
Amount exposed to risk | 6,322 | 6,015.1 | 5,849.5 |
Change in interest expense for downward change by 1.5% in interest rate | 88.5 | 83 | |
Change in interest expense for downward change by 1% in interest rate | 59 | 55.4 | |
Change in interest expense for downward change by 0.5% in interest rate | 29.5 | 27.7 | |
Change in interest expense for upward change by 0.5% in interest rate | (29.5) | (27.7) | |
Change in interest expense for upward change by 1% in interest rate | (59) | (55.4) | |
Change in interest expense for upward change by 1.5% in interest rate | (88.5) | (83) | |
LIBOR | Interest rate risk | |||
Interest rate sensitivity | |||
Amount exposed to risk | 3,871.6 | 2,674.6 | R 3,121.6 |
Change in interest expense for downward change by 1.5% in interest rate | 79.2 | 49.5 | |
Change in interest expense for downward change by 1% in interest rate | 52.8 | 33 | |
Change in interest expense for downward change by 0.5% in interest rate | 26.4 | 16.5 | |
Change in interest expense for upward change by 0.5% in interest rate | (26.4) | (16.5) | |
Change in interest expense for upward change by 1% in interest rate | (52.8) | (33) | |
Change in interest expense for upward change by 1.5% in interest rate | R (79.2) | R (49.5) | |
Minimum | Interest rate risk | |||
Interest rate sensitivity | |||
Debt term | 1 month | ||
Maximum | Interest rate risk | |||
Interest rate sensitivity | |||
Debt term | 3 months |
BORROWINGS - INTEREST RATE CHAN
BORROWINGS - INTEREST RATE CHANGES (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about borrowings [line items] | |||
Non-current borrowings exposed to interest rate changes | R 10,193.6 | R 8,689.7 | R 8,971.1 |
Committed undrawn facilities | 5,987.1 | 3,652.5 | 4,322.5 |
Uncommitted undrawn facilities | 757.7 | 471.3 | 200.5 |
Total undrawn facilities | 6,744.8 | 4,123.8 | 4,523 |
Within one year | |||
Disclosure of detailed information about borrowings [line items] | |||
Committed undrawn facilities | 103.6 | 3,188.9 | |
later than one year and not later than two years | |||
Disclosure of detailed information about borrowings [line items] | |||
Committed undrawn facilities | 463.6 | 3,422.5 | |
later than two years and not later than three years | |||
Disclosure of detailed information about borrowings [line items] | |||
Committed undrawn facilities | 5,883.5 | 900 | |
JIBAR | |||
Disclosure of detailed information about borrowings [line items] | |||
Non-current borrowings exposed to interest rate changes | 6,322 | 6,015.1 | 5,849.5 |
LIBOR | |||
Disclosure of detailed information about borrowings [line items] | |||
Non-current borrowings exposed to interest rate changes | R 3,871.6 | R 2,674.6 | R 3,121.6 |
BORROWINGS - CAPITAL MANAGEMENT
BORROWINGS - CAPITAL MANAGEMENT (Details) R in Millions | 12 Months Ended | ||
Dec. 31, 2018ZAR (R) | Dec. 31, 2017ZAR (R) | Dec. 31, 2016ZAR (R) | |
Disclosure of detailed information about borrowings [abstract] | |||
Borrowings. | R 23,768.5 | R 25,205.5 | R 7,221.2 |
Cash and cash equivalents | 2,499.4 | 2,029.8 | 928.4 |
Net debt | 21,269.1 | 23,175.7 | 6,292.8 |
Adjusted EBITDA | R 8,369.4 | R 9,045.1 | R 10,270.4 |
Actual leverage ratio | 2.5 | 2.6 | 0.6 |
Leverage ratio maximum per covenant for the first specified period | 3.5 | ||
Leverage ratio maximum per covenant for the second specified period | 2.5 | ||
Leverage ratio targeted maximum | 1 |
BORROWINGS - RECONCILIATION OF
BORROWINGS - RECONCILIATION OF EBITDA (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about borrowings [abstract] | |||
(Loss)/profit before royalties and tax | R (1,224.3) | R (6,981.2) | R 4,811.4 |
Adjusted for: | |||
Amortisation and depreciation | 6,613.8 | 5,699.7 | 4,041.9 |
Interest income | (482.1) | (415.5) | (331.4) |
Finance expense | 3,134.7 | 2,971.8 | 903.1 |
Share-based payments | 299.4 | 231.9 | 496.2 |
(Gain)/loss on financial instruments | (1,704.1) | 1,114.4 | 1,032.8 |
(Gain)/loss on foreign exchange differences | (1,169.1) | (292.4) | (219.6) |
Share of results of equity-accounted investees after tax | (344.2) | (291.6) | (13.3) |
Gain on disposal of property, plant and equipment | (60.2) | (40.7) | (95.4) |
Impairments | 3,041.4 | 4,411 | 1,381.1 |
Gain on derecognition of borrowings and derivative instrument | (230) | ||
Change in estimates charged to profit or loss | (66.6) | 248.9 | 97.5 |
Occupational healthcare expense | 15.4 | 1,106.9 | |
Restructuring costs | 142.8 | 729.8 | 187.7 |
Transaction costs | 402.5 | 552.1 | 157 |
Gain on acquisition | (2,178.6) | ||
Adjusted EBITDA | R 8,369.4 | R 9,045.1 | R 10,270.4 |
ENVIRONMENTAL REHABILITATION _7
ENVIRONMENTAL REHABILITATION OBLIGATION (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Environmental Rehabilitation Obligation | |||
Balance at beginning of the year | R 4,678.7 | R 3,982.2 | R 2,411 |
Interest charge | 398.8 | 357.1 | 291.4 |
Payment of environmental rehabilitation obligation | (32.3) | (26.9) | |
Change in estimates charged to profit or loss | (90.4) | 248.9 | 97.5 |
Changes in estimates capitalised | 618.8 | (177.7) | 472.5 |
Environmental rehabilitation obligation on acquisition of subsidiaries | 672.7 | 312.1 | 709.8 |
Foreign currency translation | 47.9 | (17) | |
Balance at the end of the year | 6,294.2 | 4,678.7 | 3,982.2 |
Rehabilitation provision | 6,176.2 | R 4,678.7 | R 3,982.2 |
Other provisions | R 118 | ||
Minimum | |||
Environmental Rehabilitation Obligation | |||
Provision discount rate | 6.20% | 7.20% | 7.80% |
Maximum | |||
Environmental Rehabilitation Obligation | |||
Provision discount rate | 9.80% | 9.70% | 9.70% |
OCCUPATIONAL HEALTHCARE OBLIG_3
OCCUPATIONAL HEALTHCARE OBLIGATION (Details) - ZAR (R) R in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of other provisions [line items] | ||||
Take-up rate (as a percent) | 60.00% | |||
Reconciliation of changes in other provisions [abstract] | ||||
Balance at beginning of the year | R 1,153.3 | |||
Balance at the end of the year | 1,274.1 | R 1,153.3 | ||
Reconciliation of the non-current and current portion of the occupational healthcare obligation: | ||||
Occupational healthcare obligation | 1,153.3 | 1,153.3 | R 1,274.1 | R 1,153.3 |
Current portion of occupational healthcare obligation | (109.9) | (0.8) | ||
Non-current portion of occupational healthcare obligation | 1,164.2 | 1,152.5 | ||
Occupational Healthcare provision | ||||
Reconciliation of changes in other provisions [abstract] | ||||
Balance at beginning of the year | 1,153.3 | |||
Obligation recognised | 1,077.2 | |||
Interest charge | 105.4 | 46.4 | ||
Change in estimate charge to profit or loss | 15.4 | 29.7 | ||
Balance at the end of the year | 1,274.1 | 1,153.3 | ||
Reconciliation of the non-current and current portion of the occupational healthcare obligation: | ||||
Occupational healthcare obligation | R 1,153.3 | R 1,153.3 | R 1,274.1 | R 1,153.3 |
DEFERRED REVENUE (Details)
DEFERRED REVENUE (Details) oz in Thousands, R in Millions, $ in Millions | Jul. 16, 2018 | Jul. 31, 2018USD ($) | Dec. 31, 2018USD ($)oz | Dec. 31, 2018ZAR (R)oz |
Disclosure Of Contract Liabilities [Line Items] | ||||
Financing component, discount rate (as a percent) | 5.40% | |||
Expected life | 77 years | 77 years | ||
Inferred resources, as a percent | 50.00% | 50.00% | ||
Leverage ratio threshold | 3.5 | 3.5 | ||
Price averaging period | 5 days | 5 days | ||
Deferred revenue advance received | $ 500 | $ 500 | R 6,555.4 | |
Deferred revenue recognised during the period | (160.3) | |||
Interest charge | 160.3 | |||
Total contract liabilities | 6,555.4 | |||
Current portion of deferred revenue | (30.1) | |||
Non-current contract liabilities | R 6,525.3 | |||
Lowest Range Of Product Delivery [Member] | ||||
Disclosure Of Contract Liabilities [Line Items] | ||||
Entitlement percentage | 4.50% | 4.50% | ||
Middle Range Of Product Delivery [Member] | ||||
Disclosure Of Contract Liabilities [Line Items] | ||||
Entitlement percentage | 2.25% | 2.25% | ||
High Range Of Product Delivery [Member] | ||||
Disclosure Of Contract Liabilities [Line Items] | ||||
Entitlement percentage | 1.00% | 1.00% | ||
Advance Fully Utilised [Member] | ||||
Disclosure Of Contract Liabilities [Line Items] | ||||
Monthly cash percentage, 1st level | 18.00% | 18.00% | ||
Monthly cash percentage, 2nd level | 16.00% | 16.00% | ||
Monthly cash percentage, 3rd level | 14.00% | 14.00% | ||
Monthly cash percentage, 4th level | 10.00% | 10.00% | ||
Advance Not Fully Utilised [Member] | ||||
Disclosure Of Contract Liabilities [Line Items] | ||||
Monthly cash percentage, 1st level | 22.00% | 22.00% | ||
Monthly cash percentage, 2nd level | 20.00% | 20.00% | ||
Monthly cash percentage, 3rd level | 18.00% | 18.00% | ||
Monthly cash percentage, 4th level | 14.00% | 14.00% | ||
Minimum | Middle Range Of Product Delivery [Member] | ||||
Disclosure Of Contract Liabilities [Line Items] | ||||
Number of ounces delivered | oz | 375 | 375 | ||
Minimum | High Range Of Product Delivery [Member] | ||||
Disclosure Of Contract Liabilities [Line Items] | ||||
Number of ounces delivered | oz | 500 | 500 | ||
Maximum | Lowest Range Of Product Delivery [Member] | ||||
Disclosure Of Contract Liabilities [Line Items] | ||||
Number of ounces delivered | oz | 375 | 375 | ||
Maximum | Middle Range Of Product Delivery [Member] | ||||
Disclosure Of Contract Liabilities [Line Items] | ||||
Number of ounces delivered | oz | 500 | 500 |
TRADE AND OTHER PAYABLES (Detai
TRADE AND OTHER PAYABLES (Details) - ZAR (R) R in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
TRADE AND OTHER PAYABLES | |||
Trade creditors | R 2,200 | R 1,728.1 | R 1,121.3 |
Accruals and other creditors | 2,952.7 | 2,380.6 | 1,971.4 |
Other | 85.7 | 167.7 | 109.4 |
Financial liabilities | 5,238.4 | 4,276.4 | 3,202.1 |
Payroll creditors | 1,465.3 | 1,253.5 | 867.7 |
Leave pay accrual | 1,152.6 | 1,160.5 | 1,110.7 |
Total trade and other payables | R 7,856.3 | R 6,690.4 | R 5,180.5 |
CASH GENERATED BY OPERATIONS (D
CASH GENERATED BY OPERATIONS (Details) - ZAR (R) R in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CASH GENERATED BY OPERATIONS | |||
(Loss)/profit for the year | R (2,520.7) | R (4,433.1) | R 3,042.7 |
Royalties | 212.6 | 398.5 | 566.6 |
Mining and income tax | 1,083.8 | (2,946.6) | 1,202.1 |
Interest income | (482.1) | (415.5) | (331.4) |
Finance expense | 3,134.7 | 2,971.8 | 903.1 |
Profit before interest, royalties and tax | 1,428.3 | (4,424.9) | 5,383.1 |
Adjustments to reconcile profit (loss) [abstract] | |||
Amortisation and depreciation | 6,613.8 | 5,699.7 | 4,041.9 |
Share-based payments | 299.4 | 231.9 | 496.2 |
Loss on financial instruments | (1,591.3) | 764 | 1,094.6 |
(Gain)/loss on foreign exchange differences | (241.3) | (546.8) | (418) |
Share of results of equity-accounted investees after tax | (344.2) | (291.6) | (13.3) |
Impairments | 3,041.4 | 4,411 | 1,381.1 |
Gain on derecognition of borrowings and derivative instrument | (230) | ||
Occupational healthcare expense | 15.4 | 1,106.9 | |
Gain on acquisition | (2,178.6) | ||
Other | (282.5) | 147.7 | 49.3 |
Total cash generated by operations | R 8,709 | R 7,097.9 | R 9,836.3 |
CHANGE IN WORKING CAPITAL (Deta
CHANGE IN WORKING CAPITAL (Detail) - ZAR (R) R in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Change In Working Capital [Abstract] | |||
Inventories | R (924.8) | R (937.7) | R (35.5) |
Trade and other receivables | (461) | (214.9) | (220) |
Trade and other payables | 315.8 | 630.3 | 17.9 |
Total change in working capital | R (1,070) | R (522.3) | R (237.6) |
FINANCIAL INSTRUMENTS AND RIS_2
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - Working capital and going concern assessment (Details) $ in Millions | Jan. 01, 2019 | Mar. 31, 2019 | Dec. 31, 2018USD ($) | Jul. 31, 2018USD ($) | Mar. 31, 2019ZAR (R) | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018USD ($) | Dec. 31, 2018ZAR (R) | Dec. 31, 2017ZAR (R) | Dec. 31, 2016ZAR (R) | Dec. 31, 2018ZAR (R) | Nov. 15, 2016ZAR (R) | Feb. 15, 2016USD ($) | Aug. 24, 2015USD ($) |
Working capital and going concern assessment | |||||||||||||||
Percentage of maximum investment of financial institutions' equity | 2.50% | 2.50% | |||||||||||||
Profit (loss), attributable to owners of parent | R (2,499,600,000) | R (4,437,400,000) | R 3,473,300,000 | ||||||||||||
Profit or loss | (2,520,700,000) | (4,433,100,000) | 3,042,700,000 | ||||||||||||
Working capital | 562,700,000 | 3,566,700,000 | |||||||||||||
Cash from operating activities | 12,197,200,000 | 2,740,700,000 | 4,405,500,000 | ||||||||||||
Deferred revenue advance received | $ 500 | $ 500 | 6,555,400,000 | ||||||||||||
Production percentage | 40.00% | ||||||||||||||
Adjusted EBITDA | R 8,369,400,000 | R 9,045,100,000 | R 10,270,400,000 | ||||||||||||
Negative impact period | 3 years | ||||||||||||||
Actual leverage ratio | 2.5 | 2.5 | 2.6 | 0.6 | 2.5 | ||||||||||
Leverage ratio maximum per covenant for the first specified period | 3.5 | 3.5 | |||||||||||||
Leverage ratio maximum per covenant for the second specified period | 2.5 | 2.5 | |||||||||||||
Leverage ratio targeted maximum | 1 | 1 | |||||||||||||
Committed undrawn facilities | R 3,652,500,000 | R 4,322,500,000 | R 5,987,100,000 | ||||||||||||
Minimum | |||||||||||||||
Working capital and going concern assessment | |||||||||||||||
Interest coverage ratio | 4 | 4 | |||||||||||||
US$350 million revolving credit facility | |||||||||||||||
Working capital and going concern assessment | |||||||||||||||
Notional amount | $ | $ 350 | $ 350 | $ 350 | $ 300 | |||||||||||
US$600 million revolving credit facility | |||||||||||||||
Working capital and going concern assessment | |||||||||||||||
Notional amount | $ 600 | 600 | 600,000,000 | ||||||||||||
Amount of additional borrowings available | $ | $ 250 | ||||||||||||||
R6.0 billion revolving credit facility | |||||||||||||||
Working capital and going concern assessment | |||||||||||||||
Notional amount | R 6,000,000,000 | R 6,000,000,000 | |||||||||||||
US Region/ Stillwater2 | |||||||||||||||
Working capital and going concern assessment | |||||||||||||||
Profit (loss), attributable to owners of parent | R (1,531,400,000) | 2,028,100,000 | |||||||||||||
Profit or loss | (1,531,400,000) | 2,028,100,000 | |||||||||||||
Adjusted EBITDA | R 4,151,900,000 | R 2,142,600,000 | |||||||||||||
Actual leverage ratio | 2.5 | 2.5 | 2.5 | ||||||||||||
Interest coverage ratio | 4.9 | 4.9 | |||||||||||||
Forecast | US Region/ Stillwater2 | |||||||||||||||
Working capital and going concern assessment | |||||||||||||||
Leverage ratio targeted maximum | 1 | ||||||||||||||
Forecast | Rustenburg operations | |||||||||||||||
Working capital and going concern assessment | |||||||||||||||
Refinement period | 4 months | ||||||||||||||
Adjusted EBITDA | R 0 | ||||||||||||||
Negative impact period | 12 months |
FINANCIAL INSTRUMENTS AND RIS_3
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - Foreign currency risk (Details) R in Millions | Jun. 15, 2017ZAR (R)R / $ | Dec. 31, 2018ZAR (R) | Dec. 31, 2017ZAR (R) | Dec. 31, 2016ZAR (R) | Mar. 26, 2019USD ($)R / $ | Dec. 31, 2018USD ($)R / $ | Dec. 31, 2018ZAR (R)R / $ | Dec. 31, 2017USD ($)R / $ | May 31, 2017USD ($)R / $ | Dec. 31, 2016USD ($)R / $ | Feb. 15, 2016USD ($) | Aug. 24, 2015USD ($) |
Disclosure of risk management strategy related to hedge accounting [line items] | ||||||||||||
(Loss)/profit attributable to owners of Sibanye Stillwater | R 1,704.1 | R (1,114.4) | R (1,032.8) | |||||||||
Currency risk | ||||||||||||
Disclosure of risk management strategy related to hedge accounting [line items] | ||||||||||||
Closing foreign exchange rate | R / $ | 14.35 | 14.35 | 12.36 | 13.69 | ||||||||
Percentage decrease in risk assumption | 1.00% | |||||||||||
Percentage increase in risk assumption | 1.00% | |||||||||||
Decrease in gain on foreign exchange differences due to decrease in exchange rate | R 38.7 | 81.2 | 31.2 | |||||||||
Increase in gain on foreign exchange differences due to increase in exchange rate | R 38.7 | R 81.2 | R 31.2 | |||||||||
Currency risk | Forward contract | ||||||||||||
Disclosure of risk management strategy related to hedge accounting [line items] | ||||||||||||
Contracts amount | $ | $ 14,000,000 | $ 12,100,000 | $ 0 | $ 779,100,000 | $ 0 | |||||||
Closing foreign exchange rate | R / $ | 12.89 | 13.23 | ||||||||||
(Loss)/profit attributable to owners of Sibanye Stillwater | R 283.2 | |||||||||||
Currency risk | Forward contract | Weighted average [member] | ||||||||||||
Disclosure of risk management strategy related to hedge accounting [line items] | ||||||||||||
Closing foreign exchange rate | R / $ | 14.36 | 14.11 | 14.11 | |||||||||
US$600 million revolving credit facility | ||||||||||||
Disclosure of risk management strategy related to hedge accounting [line items] | ||||||||||||
Face amount of debt | $ 600,000,000 | R 600 | ||||||||||
US$350 million revolving credit facility | ||||||||||||
Disclosure of risk management strategy related to hedge accounting [line items] | ||||||||||||
Face amount of debt | $ | $ 350,000,000 | $ 350,000,000 | $ 300,000,000 |
FINANCIAL INSTRUMENTS AND RIS_4
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - Commodity price sensitivity and hedging (Details) R in Millions | Dec. 31, 2018oz | Dec. 31, 2018R / oz | Dec. 31, 2018R / kg | Dec. 31, 2018ZAR (R) | Dec. 31, 2017ZAR (R) | Dec. 31, 2016ZAR (R) |
Forward contract | Minimum | ||||||
Foreign currency sensitivity analysis | ||||||
Average price of gold | 17,615 | 566,335 | ||||
Forward contract | Maximum | ||||||
Foreign currency sensitivity analysis | ||||||
Average price of gold | 18,524 | 595,560 | ||||
Forward contract | Commodity price risk | ||||||
Foreign currency sensitivity analysis | ||||||
Number of ounces of gold | oz | 229,623 | |||||
Futures contract | Commodity price risk | ||||||
Foreign currency sensitivity analysis | ||||||
Contracts amount | R | R 0 | R 0 | R 0 |
COMMITMENTS (Details)
COMMITMENTS (Details) - ZAR (R) R in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Of Commitments [Line Items] | |||
Authorised capital expenditure | R 4,411.7 | R 5,397.3 | R 3,757.4 |
Contracted for capital expenditure | 281.8 | 346.6 | 321.2 |
Other guarantees | 266.7 | 266.7 | 55.5 |
Burnstone | |||
Disclosure Of Commitments [Line Items] | |||
Authorised capital expenditure | 40.4 | 445.9 | 704 |
Kloof | |||
Disclosure Of Commitments [Line Items] | |||
Authorised capital expenditure | 970.2 | 1,200.8 | 1,256 |
Driefontein | |||
Disclosure Of Commitments [Line Items] | |||
Authorised capital expenditure | 830.9 | 724.5 | 780.4 |
Beatrix | |||
Disclosure Of Commitments [Line Items] | |||
Authorised capital expenditure | 218 | 210.1 | 130 |
Cooke | |||
Disclosure Of Commitments [Line Items] | |||
Authorised capital expenditure | 195.5 | 195.5 | 207.2 |
Kroondal | |||
Disclosure Of Commitments [Line Items] | |||
Authorised capital expenditure | 131.6 | 69.8 | 260.7 |
Platinum Mile | |||
Disclosure Of Commitments [Line Items] | |||
Authorised capital expenditure | 72.3 | 72.3 | 5 |
Rustenburg operations | |||
Disclosure Of Commitments [Line Items] | |||
Authorised capital expenditure | 1,830 | 2,478.3 | 413 |
Other segments | |||
Disclosure Of Commitments [Line Items] | |||
Authorised capital expenditure | R 122.8 | R 0.1 | R 1.1 |
CONTINGENT LIABILITIES (Details
CONTINGENT LIABILITIES (Details) | Jul. 06, 2018item |
Class Action Suits Alleging Violations Of US Securities Laws [Member] | |
Disclosure of contingent liabilities [line items] | |
Number of petitions | 2 |
RELATED-PARTY TRANSACTIONS - Tr
RELATED-PARTY TRANSACTIONS - Transactions and balances (Details) - Rand Refinery - ZAR (R) R in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of transactions between related parties [line items] | |||
Interest in associates (as a percent) | 44.40% | 33.10% | 33.10% |
Dividends received from related parties | R 0 | R 0 | R 0 |
Revenue from sale of goods, related party transactions | 616.2 | ||
Refining fees paid | R (29.1) | (32.5) | (44.4) |
Interest income | R 1.5 | 40.2 | |
Loan receivable | R 403.9 |
RELATED-PARTY TRANSACTIONS - Ke
RELATED-PARTY TRANSACTIONS - Key management remuneration (Details) R in Thousands | 8 Months Ended | 12 Months Ended | ||
Dec. 31, 2018R / $$ / shares | Dec. 31, 2018ZAR (R)R / $ | Dec. 31, 2017ZAR (R) | Dec. 31, 2016ZAR (R) | |
Disclosure of transactions between related parties [line items] | ||||
Salary | R 15,710,300 | R 15,323,000 | R 9,276,100 | |
Average foreign exchange rate | R / $ | 13.24 | |||
Directors and Prescribed officers | ||||
Disclosure of transactions between related parties [line items] | ||||
Salary | R 49,889 | |||
Cash bonus accrued for 2017 paid in 2018 | 31,736 | |||
Share proceeds and dividends payments | 46,406 | |||
Pension scheme total contributions | 4,546 | |||
Expense allowance | 2,010 | |||
Total | 134,587 | 152,026 | ||
Neal Froneman | ||||
Disclosure of transactions between related parties [line items] | ||||
Salary | 11,722 | |||
Cash bonus accrued for 2017 paid in 2018 | 8,619 | |||
Share proceeds and dividends payments | 14,177 | |||
Pension scheme total contributions | 993 | |||
Expense allowance | 249 | |||
Total | 35,760 | 52,656 | ||
Average foreign exchange rate | R / $ | 13.87 | |||
Charl Keyter | ||||
Disclosure of transactions between related parties [line items] | ||||
Salary | 6,033 | |||
Cash bonus accrued for 2017 paid in 2018 | 4,237 | |||
Share proceeds and dividends payments | 6,521 | |||
Pension scheme total contributions | 862 | |||
Expense allowance | 44 | |||
Total | 17,697 | 23,440 | ||
Chris Bateman | ||||
Disclosure of transactions between related parties [line items] | ||||
Salary | 7,944 | |||
Cash bonus accrued for 2017 paid in 2018 | 4,160 | |||
Share proceeds and dividends payments | 2,773 | |||
Pension scheme total contributions | 291 | |||
Expense allowance | 1,717 | |||
Total | R 16,885 | 7,269 | ||
Average foreign exchange rate | R / $ | 13.24 | |||
Share price | $ / shares | $ 18 | |||
Shadwick Bessit [Member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Salary | R 336 | |||
Cash bonus accrued for 2017 paid in 2018 | 176 | |||
Share proceeds and dividends payments | 117 | |||
Pension scheme total contributions | 59 | |||
Total | 688 | |||
Hartley Dikgale | ||||
Disclosure of transactions between related parties [line items] | ||||
Salary | 3,560 | |||
Cash bonus accrued for 2017 paid in 2018 | 2,022 | |||
Share proceeds and dividends payments | 2,919 | |||
Pension scheme total contributions | 260 | |||
Total | 8,761 | 11,768 | ||
Dawie Mostert | ||||
Disclosure of transactions between related parties [line items] | ||||
Salary | 3,674 | |||
Cash bonus accrued for 2017 paid in 2018 | 2,352 | |||
Share proceeds and dividends payments | 3,585 | |||
Pension scheme total contributions | 501 | |||
Total | 10,112 | 12,044 | ||
Themba Nkosi | ||||
Disclosure of transactions between related parties [line items] | ||||
Salary | 3,648 | |||
Cash bonus accrued for 2017 paid in 2018 | 2,009 | |||
Share proceeds and dividends payments | 1,339 | |||
Pension scheme total contributions | 269 | |||
Total | 7,265 | 6,869 | ||
Wayne Robinson | ||||
Disclosure of transactions between related parties [line items] | ||||
Salary | 4,330 | |||
Cash bonus accrued for 2017 paid in 2018 | 2,440 | |||
Share proceeds and dividends payments | 3,804 | |||
Pension scheme total contributions | 351 | |||
Total | 10,925 | 9,268 | ||
Richard Stewart | ||||
Disclosure of transactions between related parties [line items] | ||||
Salary | 3,774 | |||
Cash bonus accrued for 2017 paid in 2018 | 2,500 | |||
Share proceeds and dividends payments | 6,293 | |||
Pension scheme total contributions | 419 | |||
Total | 12,986 | 11,288 | ||
Robert Van Niekerk | ||||
Disclosure of transactions between related parties [line items] | ||||
Salary | 4,868 | |||
Cash bonus accrued for 2017 paid in 2018 | 3,221 | |||
Share proceeds and dividends payments | 4,878 | |||
Pension scheme total contributions | 541 | |||
Total | R 13,508 | R 17,424 |
RELATED-PARTY TRANSACTIONS - No
RELATED-PARTY TRANSACTIONS - Non-executive director fees (Details) - ZAR (R) R in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Non-executive directors | ||
Disclosure of transactions between related parties [line items] | ||
Directors' fees | R 9,392 | |
Committee fees | 4,643 | |
Expense allowance | 257 | |
Total | 14,291 | R 12,340 |
Tim Cumming | ||
Disclosure of transactions between related parties [line items] | ||
Directors' fees | 954 | |
Committee fees | 589 | |
Expense allowance | 155 | |
Total | 1,698 | 1,428 |
Savannah Danson | ||
Disclosure of transactions between related parties [line items] | ||
Directors' fees | 953 | |
Committee fees | 528 | |
Total | 1,480 | 745 |
Barry Davison | ||
Disclosure of transactions between related parties [line items] | ||
Directors' fees | 953 | |
Committee fees | 696 | |
Total | 1,649 | 1,555 |
Rick Menell | ||
Disclosure of transactions between related parties [line items] | ||
Directors' fees | 954 | |
Committee fees | 742 | |
Expense allowance | 27 | |
Total | 1,723 | 1,610 |
Sello Moloko | ||
Disclosure of transactions between related parties [line items] | ||
Directors' fees | 1,802 | |
Total | 1,802 | 1,725 |
Nkosemntu Nika | ||
Disclosure of transactions between related parties [line items] | ||
Directors' fees | 922 | |
Committee fees | 513 | |
Total | 1,435 | 1,285 |
Keith Rayner | ||
Disclosure of transactions between related parties [line items] | ||
Directors' fees | 954 | |
Committee fees | 695 | |
Expense allowance | 74 | |
Total | 1,723 | 1,545 |
Sue van der Merwe | ||
Disclosure of transactions between related parties [line items] | ||
Directors' fees | 954 | |
Committee fees | 536 | |
Total | 1,491 | 1,223 |
Jerry Vilakazi | ||
Disclosure of transactions between related parties [line items] | ||
Directors' fees | 945 | |
Committee fees | 344 | |
Total | R 1,289 | R 1,224 |
RELATED-PARTY TRANSACTIONS - _2
RELATED-PARTY TRANSACTIONS - Key management share ownership (Details) - shares | Mar. 29, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Directors and Prescribed officers | |||
Disclosure of transactions between related parties [line items] | |||
Total share ownership | 9,113,702,000 | 6,932,106,000 | |
Directors | |||
Disclosure of transactions between related parties [line items] | |||
Total share ownership | 7,944,068 | 6,341,368 | |
Neal Froneman | |||
Disclosure of transactions between related parties [line items] | |||
Total share ownership | 4,555,954 | 3,342,087 | |
Percentage of shares | 0.20% | 0.15% | |
Charl Keyter | |||
Disclosure of transactions between related parties [line items] | |||
Total share ownership | 1,530,119 | 1,212,745 | |
Percentage of shares | 0.07% | 0.06% | |
Tim Cumming | |||
Disclosure of transactions between related parties [line items] | |||
Total share ownership | 106 | 102 | |
Barry Davison | |||
Disclosure of transactions between related parties [line items] | |||
Total share ownership | 1,567,710 | 1,507,414 | |
Percentage of shares | 0.07% | 0.07% | |
Rick Menell | |||
Disclosure of transactions between related parties [line items] | |||
Total share ownership | 108,625 | 104,448 | |
Sello Moloko | |||
Disclosure of transactions between related parties [line items] | |||
Total share ownership | 111,534 | 107,245 | |
Keith Rayner | |||
Disclosure of transactions between related parties [line items] | |||
Total share ownership | 68,992 | 66,339 | |
Sue van der Merwe | |||
Disclosure of transactions between related parties [line items] | |||
Total share ownership | 1,028 | 988 | |
Chris Bateman | |||
Disclosure of transactions between related parties [line items] | |||
Total share ownership | 32,747 | ||
Shadwick Bessit [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Total share ownership | 219,782 | ||
Percentage of shares | 0.01% | ||
Hartley Dikgale | |||
Disclosure of transactions between related parties [line items] | |||
Total share ownership | 114,744 | 292,785 | |
Percentage of shares | 0.01% | 0.01% | |
Dawie Mostert | |||
Disclosure of transactions between related parties [line items] | |||
Total share ownership | 50,743 | ||
Themba Nkosi | |||
Disclosure of transactions between related parties [line items] | |||
Total share ownership | 19,107 | 18,370 | |
Wayne Robinson | |||
Disclosure of transactions between related parties [line items] | |||
Total share ownership | 39,321 | 346 | |
Richard Stewart | |||
Disclosure of transactions between related parties [line items] | |||
Total share ownership | 421,653 | 102,971 | |
Percentage of shares | 0.02% | ||
Robert Van Niekerk | |||
Disclosure of transactions between related parties [line items] | |||
Total share ownership | 271,537 | 176,266 | |
Percentage of shares | 0.01% | 0.01% |
EVENTS AFTER REPORTING DATE (De
EVENTS AFTER REPORTING DATE (Details) - EquityInstruments | 1 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | Dec. 14, 2017 | |
Disclosure of non-adjusting events after reporting period [line items] | |||
Period of contract renegotiation | 3 years | ||
Lonmin | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Number of shares entitled to receive per share | 0.967 | ||
Moratorium period | 6 months |