Integrated Annual Report 2016

A view from the top

Perspective from the Chair

The past year has been particularly significant for Sibanye. We concluded the acquisitions of Aquarius Platinum Limited and the Rustenburg assets, establishing Sibanye as a leading PGM producer.

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Chief Executive’s review

Our strategic vision at Sibanye is to create superior value for all of our stakeholders, and as a company, if we are to deliver value in a sustainable manner, we need to ensure delivery through all the phases of the economic and commodity cycles.

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Chief Financial Officer’s report

Our net asset value per share has increased by 40% since Sibanye’s listing in 2013.

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... Value created

Outputs

Produced:
Gold
1.51Moz
Platinum
238,662oz
Palladium
136,156oz
4E PGM
420,763oz
Uranium
123,000lb
Nickel
2,060t
Chrome
274,109t
Revenue generated through metal sales:
R31.2 billion

Outcomes

Of the revenue generated, value is distributed as follows:
Employees – salaries and wages paid
R9,276 million
Government – taxes and royalties paid
R1,733 million
Procurement – total discretionary
R9,914 million
Proportion BEE procurement
77%
Communities – socio-economic development
R656 million
Profit
R3,271 million
Investors – dividends declared
R1,343 million
Dividend yield1
5.7%

Enhanced outcomes and impacts

FINANCIAL AND MANUFACTURED CAPITAL

Optimising processes to reduce costs, maintain infrastructure and invest in organic growth:
Gold Division: Total cash cost:
R377,034/kg (US$799/oz)
Gold Division: All-in sustaining cost:
R450,152/kg (US$954/oz)
Platinum Division: Operating cost:
R10,296/oz (US$701/oz)
Group operating margin:
34%
Market capitalisation:
R23.6 billion ($1.7 billion)
Share price:
R25.39 (US$7.06) at year end
Total shareholder returns:
36% dividend payout ratio

HUMAN AND INTELLECTUAL CAPITAL

Creating employment, ensuring the safety, health and wellbeing of employees, enhancing skills development and training
Occupational health expenditure:
R38.5 million
Training and skills development:
6.99 million training hours
Investment in systems and engineering to improve safety and productivity:
R16 million
Fatalities:
14
LTIFR:
6.62 per million hours worked

NATURAL CAPITAL

Creating value by extracting, mining and processing ore:
Volume of ore mined:
31.8Mt
Water consumed (withdrawn and used):
45,860Ml
Electricity consumed:
4,720,323MWh
Scope 1 and 2 GHG emissions:
5.4Mt
Total closure liability:
R6.1 billion
Environmental incidents (level 3 and 4):
19

SOCIAL AND RELATIONSHIP CAPITAL

Creating employment, alleviating poverty, promoting enterprise development and social upliftment
BEE procurement spend:
R7.6 billion (77% of total discretionary spend)
Socio-economic development expenditure:
R656 million
Spend on approved SLP projects:
R59 million

Performance review

Creating value from operations, projects and technology

Mining is our core business activity. The performance of our operations is key to our vision to create superior value for all stakeholders. Our future lies in our reserves and resources while our investment in technology aims to deliver a profitable long-term future by allowing the safe extraction of previously inaccessible resources.

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Statement of Mineral Resources and Mineral Reserves

Gold Resources 102Moz

Platinum Resources 126.5Moz

Uranium Resources 159Mlb

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Minimising the environmental impact

150MW solar energy project on track for commercial operation in 2018

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Superior value for the workforce

Average number of training hours per employee 88.96

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Health and safety focus
Absenteeism

15.1% Steady decrease in unavailable shifts since 2013:17.2

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Social upliftment and community development

Socio-economic development spend R71.4m

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The 2016 reporting suite

These reports collectively cover the operational, financial and non-financial performance of the operations and activities of Sibanye Gold Limited and provide stakeholders with transparent insight into our strategy, our business and our performance over the past year.

About our reports

Supplementary documents

Fact sheets