2019 Integrated
report

2019 Integrated
report

Salient features

  • World’s largest primary producer of platinum and rhodium, and the second largest producer of palladium (as per 2018)

  • Leading global recycler and processor of spent PGM catalytic converter materials

  • Top tier gold producer, ranking third globally, on a gold-equivalent basis

  • We produce iridium, ruthenium, chrome, copper and nickel as co- and by-products

  • FTSE/JSE Responsible Investment Index
    FTSE/JSE Responsible Investment

  • We relisted on the Johannesburg and New York stock exchanges, under ticker codes JSE:SSW and NYSE:SBSW in February 2020

  • Bloomberg Gender-Equity Index
  • FTSE4Good

  • We produced 2.2Moz of PGMs and 0.9Moz of gold

  • Workforce of 84,521 people, 69,450 employees and 15,071 contractors

  • 11 million fatality free shifts achieved on 11 March 2020 at the SA gold operations

  • Market capitalisation of R96 billion (US$6.6 billion) at 31 December 2019, at an exchange rate of US$/14.00

  • Leverage reduced to 1.25X net debt adjusted: EBITDA1

    1. The Group reports adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) based on the formula included in the facility agreements for compliance with the debt covenant formula. For a reconciliation please refer to the consolidated financial statements, note 26.9: capital management. The 1.25x includes Marikana for 12 months as per the covenant definition

Portfolio of assets

Marathon project (49%)with Generation MiningDenison project (80%)with Wallbridge MiningAltar project (100%)with Aldebaran (in Argentina)East Boulder (100%)Reserves: 10.2Moz 2EStillwater (100%)Reserves: 16.7Moz 2E
  • SA gold (oz%)
  • SA PGMs (4E%)
  • US PGMs (2E%)
Reserves split 2019
Production split 2019
Adjusted EBITDA (Rm)
H2 2019
*   50% attributable** 38.05% attributable SA PGMMimosa (50%)Reserves: 1.7Moz 4E*Marikana (95.25%)Reserves: 9.2Moz 4EReserves: 16.1Moz 4ERustenburg (100%)Kroondal (50%)Reserves: 1.2Moz 4E*Various projectsResources: 86.8Moz 4E SA GOLDCookeReserves: 0.1Moz AuKloof (100%)Reserves: 4.5Moz AuDriefontein (100%)Reserves: 2.6Moz AuDRDGOLD (50.1%)Reserves: **2.2Moz AuBeatrix (100%)Reserves: 1.5Moz AuVarious projectsResources: 44.3Moz AuReserves: 4.5Moz Au

US PGM operations

  • 2E PGM production
    593,974 oz
  • 3E PGM from recycling
    853,130 oz
  • Employees
    2,661
  • SED spend
    R5.76m
  • LTIFR
    7.80
  • Fatalities
    Zero
  • Emission intensity
    0.18
  • Water use intensity
    0.63

SA PGM operations

  • 4E PGM production
    1,608,332 oz
  • All-in sustaining cost
    $1,027/oz
  • Employees
    44,096
  • SED spend
    R59m
  • LTIFR
    7.80
  • Fatalities
    6
  • Emission intensity
    0.10
  • Water use intensity
    0.74

SA GOLD

  • Gold production
    932,659 oz
  • All-in sustaining cost
    $1,544/oz
  • Employees
    28,921
  • SED spend
    R93m
  • LTIFR
    6.33
  • Fatalities
    Zero
  • Emission intensity
    0.27
  • Water use intensity
    1.97

Leadership

JOINT CHAIRMAN’S AND CEO’S REVIEW

Our strategic journey since the establishment of the company in 2013 has delivered significant value to all stakeholders

Download [PDF - 146KB]

CHIEF FINANCIAL OFFICER’S REPORT

  • 44% increase in revenue to R73bn (US$5bn)
  • R433m (US$30m) profit for 2019 (2018: loss of R2.5 bn/US$191m)
  • 79% year-on-year increase in adjusted EBITDA to record R15bn (US$1bn)
  • R6 billion revolving credit facility (RCF) refinanced in October 2019 through new R5.5 billion RCF
Download [PDF - 527KB]

Governance

Download [PDF - 1.45MB]

  • An ESG sub-committee of the Group Executive Committee was appointed

  • Successful growth of acquisitions; R1.2 billion of annualised synergies by end 2020 from Marikana integration

  • Sibanye-Stillwater gained ICMM membership in February 2020

RESPONSIBLE LEADERSHIP

  • An automated governance framework is being developed

  • Dr Vincent Maphai joined as the new Chairman of the Board
  • Sustaining an ethical culture: two board sub-committees oversee compliance of ethical practices
  • 18% of Board members are female
  • 45.5% of Board members are historically disadvantaged persons (HDPs)

Delivering on our strategy

Download [PDF - 916KB]

Delivering value from our
operations and projects

SUCCESSES

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

  • R1.2 billion of annualised synergies from the successful integration and restructuring at the Marikana operation, 64% above forecast

  • Zero fatalities at SA gold operations with improvements in Group safe production and +11 million fatality free shifts achieved in February 2020.

CHALLENGES

  • Ground conditions and diesel particulate matter issues encountered at Blitz at the US PGM operations during the year

  • Building up at the SA gold operations after a five-month strike, although it was successful

Download [PDF - 982KB]

Empowering our workforce

SUCCESSES

  • 13%
    women employed with 8% of core mining roles held by women

  • 89%
    of SA employees are recruited locally

  • BEE scorecard level 7

CHALLENGES

  • 26%
    absenteeism at the SA operations to be addressed

  • Breaking down the language barriers in SA to improve the effectiveness of training and application of safety and operational standards

Download [PDF - 726KB]

Commitment towards safe production

SUCCESSES

  • 11 million
    fatality free shifts at SA gold operations

  • 61%
    decrease in section 54 stoppages at SA gold operations

  • 11%
    improvement in serious injury frequency rate: improved from 3.70 in 2018 to 3.03 in 2019 for the Group

CHALLENGES

  • 6
    fatalities at the SA PGM operations

  • Rock mass management
    a proactive approach to minimise uncontrolled fall of ground incidents

Download [PDF - 703KB]

Health and well-being and occupational hygiene

SUCCESSES

  • 21%
    reduction in silicosis cases reported

  • 16%
    increase in employees on medical schemes

  • 31%
    decrease in the rate of noise-induced hearing loss

CHALLENGES

  • COVID-19
    Planning for and dealing with this pandemic, considering more than 80,000 employees

Download [PDF - 636KB]

Social upliftment and community development

SUCCESSES

  • Bokamoso Ba Rona
    A joint development agreement was concluded to optimise the impact of this agri-industrial initiative

  • 1.6bn
    social and labour plans and CSI spend

  • 74%
    of procurement spend is local

CHALLENGES

  • Stakeholder perception index revealed historic perception of non-engagement

  • Sustaining
    income-generating projects as businesses beyond our support

Download [PDF - 850KB]

Minimising our environmental impact

SUCCESSES

  • 8%
    less water used for the Group

  • 22%
    less water purchased at our SA gold operations

  • Tailings monitoring equipment has been installed at the US PGM operations

CHALLENGES

  • FIVE level 3 incidents. Although this has not increased year-on-year, we continue to work to prevent incidents

  • 14%
    increase in CO2e intensity due to inclusion of the newly-acquired Marikana operations

Download [PDF - 355KB]

Harnessing technology

SUCCESSES

  • Safety
    Enabled significant risk reduction and safety improvements through the use of data and analytics

  • Innovation culture
    Developed an end-to-end idea and innovation management framework to enable a culture of innovation

  • Intelligence
    Delivered bottom line value through various aggregation, visualisation and intelligence platforms

CHALLENGES

  • Adoption
    Experienced low levels of adoption for abstract or complicated technology themes

  • Measurement
    Building up at the SA gold operations after a five-month strike, although it was successful

  • Capability
    Identified skills and capability building requirements to enable rapid adoption of technology

Download [PDF - 474KB]

Mineral resources and reserves – a summary

SUCCESSES

  • 90%
    increase in Group PGM Mineral Resources to 389Moz

  • 20%
    increase in Group PGM Mineral Reserves to 55.1Moz

  • 2.0Moz
    of additional Mineral Reserves yielded from drilling at Blitz

CHALLENGES

  • Intricacy of integrating and re-evaluating the Marikana assets resulted in a 22.1Moz decrease in Mineral Reserves (compared to Lonmin in 2018) due to a lack of supporting feasibility studies

  • Complexity of extending the life of the SA gold operations beyond their original anticipated life-span, by converting Mineral Resources to Mineral Reserves through innovative infrastructure optimisation and integration option

Additional downloads

2019 suite of reports

Supplementary documents