Integrated Report 2023

2023 At a glance

Chairman’s and Chief Executive Officer’s review

"We are focused on our Strategic essentials as we navigate through the low price environment. In addition we have implemented proactive initiatives to protect and strengthen the Balance sheet.”
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Dr Vincent Maphai and Chief Executive Officer [photo]

Dr Vincent Maphai Chairman

Neal Froneman Chief Executive Officer

Salient features

2023 Revenue pre production Rbn [chart]
2023 PRODUCTION
  • 1.7Moz SA 4E PGMs
  • 811koz Gold
  • 427koz US 2E PGM
  • 310koz 3E PGM recycling
  • 76kt zinc metal produced (payable)
  • 7.1kt nickel
2023 REVENUE PER PRODUCTION (Rbn)
2023 Revenue pre production Rbn [chart]
2023 REVENUE PER OPERATION
R113.7bn (US$6.2bn)
2023 Revenue pre production Rbn [chart]
Loss for 2023 year [icon]

LOSS FOR 2023 YEAR1
R37 billion
(US$2 billion)

Green revenue factor [icon]

68%
GREEN REVENUE
FACTOR2

Workforce [icon]

WORKFORCE
82,788

ESG SALIENT FEATURES

24% of employee promotions in SA were awarded to women

The financial closure has been achieved and construction has begun on renewable energy projects (total 267MW) in South Africa

A 10% reduction in serious injury frequency rate, a record low for the Group

Exemplar award for outstanding Tuberculosis (TB) programme

22Mt CO2e year-on-year decrease in scope 1 and 2 emissions

Completion of a TCFD reporting gap analysis and scenario modelling of climate related risks

SA region promoted 1,560 employees from our internal talent pool (A-D band)

Conformance achieved to the Global Industry Standard on Tailings Management for very high and extreme consequence tailings storage facilities

OUR ESG CREDENTIALS

ESG-related indices (not limited to these) in which we are currently included:

  1. See the Consolidated Income statement in the Group Annual Financial Report for the year ended 31 December 2023
  2. The FTSE Russell green revenue factor is defined by FTSE Russell as the percentage of revenue that is derived from products that have a positive environmental utility which help prevent, restore and/or adapt to issues deriving from climate change, natural resource limitations and environmental degradation. This measure enables precise identification of green products and services across the entire value chain and helps investors assess revenue exposure to green activities within the Group. Based on the criteria developed by FTSE Russel, Sibanye-Stillwater utilised revenue from the following operations in determining its FTSE Russell green revenue factor: SA gold (limited to the Cooke operation); SA PGMs (excluding Mimosa); and US PGMs (including recycling) The FTSE Russell green revenue factor is a non-IFRS measure and it should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS Accounting Standards

A UNIQUE, GREEN PORTFOLIO OF GEOGRAPHICALLY DIVERSIFIED ASSETS AND COMMODITIES

Sibanye-Stillwater Footprint [map]
Sibanye-Stillwater Footprint [map]

Americas Assets

US PGM operations

  • Stillwater mine (100%)
    MineralReserves: 15.7Moz 2E
  • East Boulder mine (100%)
    MineralReserves: 10.6Moz 2E

PGM exploration

  • Marathon (13.9%)*
    MineralResources: 0.8Moz 2E

PGM recycling

  • Columbus Met complex (100%)

Lithium exploration

  • Rhyolite-Ridge (6.91%*)
    Mineral Resources: 232kt LCE

Copper exploration

  • Altar (48.61%)*
    Mineral Resources: 6,386Mlb Cu


  • * Non-managed
  • PGM = platinum group metals, Au = gold, Cu = copper, LCE = lithium corbonate equivalent, Zn = Zinc, U308 = Uranium Oxide
  1. Verkor is a planned French gigafactory in which Sibanye-Stillwater participates through a convertible bond and equity. Verkor’s headquarter is located in Grenoble, but planned plant is to be located in Dunkirk (just north of Sandouville)
  2. Mt Lyell is a copper asset in Tasmania which is currently on care and maintenance. A feasibility study, which considers the re-establishment of the operation, is underway
  3. Acquisition effective March 2024

Southern African Assets

SA PGM operations

  • Marikana (80.64%)
    Mineral Reserves: 16.5Moz 4E
  • Rustenburg (74%)
    Mineral Reserves: 9.3Moz 4E
  • Kroondal (87%)
    Mineral Reserves: 0.7Moz 4E
  • Mimosa (50%)*
    Mineral Reserves: 1.6Moz 4E

SA PGM exploration

  • Akanani (80.13%)
    Mineral Resources: 31.6Moz 4E
  • Limpopo: Voorspoed and Doornvlei (80.64%) and Dwaalkop (40.32%)
    Mineral Resources: 19.9Moz 4E

SA gold operations

  • Kloof (100%)
    Mineral Reserves: 1.8Moz Au
  • Beatrix (100%)
    Mineral Reserves: 0.7Moz Au
  • Driefontien (100%)
    Mineral Reserves: 2.9Moz Au
  • Cooke surface (76%)
    Mineral Reserves: 0.1Moz Au
  • DRDGOLD (50.28%)*
    Mineral Reserves: 2.9Moz Au

SA gold development

  • Burnstone (100%)
    Mineral Reserves: 2.5Moz Au

SA gold exploration

  • SOFS (Southern Free State project) (100%)
    Mineral Resources: 6.9Moz Au

SA uranium exploration

  • Belsa (100%)
    Mineral Resources: 27.0Mlb U3O8
  • Cooke (76%)
    Mineral Resources:32.2Mlb U3O8

European assets

Lithium development

  • Keliber lithium project (79.82%)
    Mineral Reserves: 182kt LCE

Nickel operations

  • Sandouville refinery (100%)

Australian assets

Zinc operations

  • Century (100%)*
    Mineral Reserves: 1,726Mlbs Zn

Copper exploration

  • Mount Lyell (100%)
    Mineral Resources: 1,609Mlbs Cu

CIRCULAR ECONOMY OPERATIONS

BATTERY METALS

GREEN METALS

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HOW WE CREATE VALUE
OUR BUSINESS MODEL

MISSION AND VISION

At the heart of our value creation business model, sits the Umdoni tree
The leaves of our Umdoni tree represent all our stakeholders. These relationships that we rely on are nurtured through upholding our values – the roots of the tree.

Purpose Vision iCares [icon]
Elephant [graphic]

Grey elephants - aspects of relevance to our business activities.

Material Matters [icon]

Material matters and factors in our external business environment impact on our ability to create and preserve value for our stakeholders

The value creation process

Value creation process [infographic]
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SHARED VALUE TO ALL STAKEHOLDERS

2013

Miner [icon]

36,274 employees
incl. contractors

Money [icon]

R6.16 billion paid in salaries and benefits

Graph [icon]

R1.05 billion invested in socioeconomic development and CSI

Money bag [icon]

R554 million taxes and royalties1

Speaker [icon]

R316 million invested in training and development

 


Value creation tree [infographic]

2023

Miner [icon]

82,797 employees incl. contractors

Money [icon]

R30.6 billion paid in salaries and benefits

Graph [icon]

R2.7 billion invested in socioeconomic development and CSI

Money bag [icon]

R4.1 billion taxes and royalties1

Speaker [icon]

R1 billion invested in training and development

People [icon]

~R1.1 billion paid over the last two years (2022 & 2023) to over 65,000 beneficiaries in the form of dividends and other employee share option scheme payments

MAINTAINING A PROFITABLE BUSINESSAND OPTIMISING CAPITAL ALLOCATION

Chief Financial officer's report

"With a well-staggered debt maturity ladder, in a weak PGM price environment we will focus on meeting production targets, capitalise on cost saving initiatives and responsibly preserve cash on our balance sheet.”
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Chief Financial Officer Charl Keyter [photo]

Charl Keyter - Chief Financial Officer

SUCCESSES

  • Equity funding for the Keliber lithium project complete
  • SA gold operations entered into a gold hedge with ~60% of 2024 production hedged at a floor of R1.1m/kg and cap of R1.4m/kg
  • SA PGM operations continue to move down the industry cost curves despite instances of load curtailment and other operational factors impacting production e.g. copper cable theft
  • U$500m convertible bond provides financial flexibility at reasonable cost, partially designated to fund the Redlan acquisition and the balance to enable further delivery on our strategic growth objectives
  • Group decarbonisation accelerated with 3 renewable energy projects providing 267MW of solar and wind energy, financed through third party power purchase agreement (PPAs) which assist with capital preservation
  • Solid balance sheet and financial flexibility with strong liquidity headroom and 0.58x net debt: adjusted EBITDA ratio

CHALLENGES

  • Earnings and cashflow impacted by steep decline in PGM commodity prices
  • Lower medium to long term prices (PGM and nickel), operational constraints, above inflation increases and deferral of the Burnstone project to preserve cash in terms of the Group’s Capital Allocation Framework, resulted in an impairment of R47.5bn (US$2.6bn) across the Group
  • Loss for the period of R37.4bn (US$2bn) compared to a profit of R19.0bn (US$1.2bn) for 2022
  • No final dividend due to loss for H2 2023, in line with dividend policy

Achieving operational excellence
and optimising long-term resource value

Delivering value from operations and projects

SUCCESSES

  • Record low serious injury frequency rate for the Group
  • Load curtailment in SA region well managed and effective utilisation of processing capacity resulting in zero inventory increases
  • Further restructuring at the US PGM operations for lower prices and operational flexibility
  • AUS region’s Century operation returned to positive Adjusted EBITDA post the regional floods in March 2023 and exercised option to acquire 100% of the Mt Lyell copper exploration project (previously operated mine)

CHALLENGES

  • Lower commodity prices for PGMs weighing on the profitability of the US PGM and the SA PGM operations
  • Challenges at the Sandouville nickel refinery exacerbated with the weaker nickel price during 2023
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Mineral Resources and Mineral Reserves

SUCCESSES

  • Updated the Mineral Resource Estimate at the Keliber lithium Project and achieved an overall 55.1% increase in Group attributable lithium Mineral Resources to 702kt of LCE (Incl. Rhyolite Ridge)
  • Exercised the Mt Lyell copper mine option in Tasmania, and declared a project copper Mineral Resource of 79.4Mt, at 0.92% Cu and 0.2 g/t Au, for 1,609Mlb of contained copper
  • Increased our attributable zinc Mineral Resources to 3,002Mlb (+257%) and Mineral Reserves to 1,726Mlb (+287%) on the back of the acquisition of New Century Resources
  • Acquired Anglo American Platinum’s 50% share in the Kroondal PSA, adding 0.5Moz of 4E PGM Mineral Reserves within the Kroondal Mining Right, plus unlocking access to approximately 1Moz within the SRPM (Rustenburg) mining right via the Kroondal declines

CHALLENGES

  • Despite maintaining stable Mineral Reserves (Unchanged) and Mineral Resources (+4.4%) over life of mine at our US PGM operations, further restructuring, following the mid-2022 repositioning, has taken place to protect margins and to ensure long-term value in light of the low palladium price environment
  • Gold Mineral Resources of 41.2Moz (-23%) and Mineral Reserves of 10.9 Moz (-15.7%) at our SA Gold operations and projects have been negatively impacted by the closure of Kloof 4# as well as Beatrix West
  • At our SA PGM operations, 4E PGM Mineral Reserves declined to 28.1Moz (-10.4%), largely driven by depletion (-1.9Moz) and the exclusion of the North Hill Project at Mimosa (-1.5Moz)
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Ensuring safety
and wellbeing

Continuous safe production

SUCCESSES

  • A 10% reduction in the serious injury frequency rate (2.91 to 2.61), setting a record low for the Group
  • Leading indicators demonstrating risk reduction across the Group
SA region
  • Outstanding serious injury frequency rate for surface operations, improving 13% year-on-year
US region
  • System to monitor critical management routines implemented
EU region
  • More than 95% of employees signed our Life-saving commitment book
  • High percentage (>80%) of the actions of the fatal elimination plans executed in the first year of implementation
AUS region
  • No serious injuries recorded for the 2023 calendar year

CHALLENGES

  • Regrettable loss of eleven lives at our operations
  • Regression of lagging indicators – total recordable injury frequency rate, lost time injury frequency rate and fatal injury frequency rate
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Health, wellbeing and occupational hygiene

SUCCESSES

  • Since 2023, a group-wide wellbeing assessment in place
  • Awarded the Exemplar award, from the Ending Workplace TB organisation, for outstanding workplace TB programme
  • SA gold recognised by the Southern African Institute of Mining and Metallurgy for its occupational medicine approach
  • US operations had a reduction in diesel particulate matter through improved ventilation engineering

CHALLENGES

  • Well-being initiatives depend on voluntary participation, potentially leaving some individuals unengaged for various reasons. Confidentiality is emphasized in the utilisation of employee health and well-being support programmes.
  • In certain regions, strict regulations limit cross-border health data sharing. Our local teams navigate these constraints effectively.
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INCLUSIVE, DIVERSE
AND BIONIC

Empowering our workforce

SUCCESSES

  • Five-year wage agreement with AMCU and NUM at Kroondal
  • In the US, reduction of reliance on higher-cost contractor employees and where appropriate replaced with full-time employees
  • Total percentage of female employees increased to 17.2% (2022: 16.2%)
  • The restructuring engagement processes resulted in various mitigation alternatives, thereby seeing fewer employees retrenched
  • Achieved Standard Bank top women business in resources award for uplifting women
  • In the US, completion of project to provide Total value statements for all employees
  • In the US, the implementation of a Learning management system was completed

CHALLENGES

  • Critical skills shortage in certain of our operating regions
  • Impact on employee morale while restructuring is ongoing and the difficulty in having to retrench employees albeit doing what we can to reduce the number of retrenchments
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Harnessing innovation

SUCCESSES

  • Leadership taking active ownership and promoting our culture of innovation
  • Continued investment in research and development and our innovation ecosystem
  • Scaling our digital delivery capability and realising tangible value through digital enablement
  • Substantial benefits through our IME pilot projects, and a 3-year roll-out plan in place
  • Introduction of various technology solutions to improve safety and enhance efficiency

CHALLENGES

  • Embedding change and driving sustainable long-term impact
  • Challenging economic environment placing a damper on R&D spend
  • Focus on core business delivery leaves limited time for transformation
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ESG embedded
as the way we do business

Social, Ethics and Sustainability Committee: Chairman’s report

"It is incumbent on us to demonstrate how we are minimising harm to ecosystems.”
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Jerry Vilakazi, outgoing Chairman: Social, Ethics and Sustainability Committee [photo]

Jerry Vilakazi Outgoing Chairman: Social, Ethics and Sustainability Committee

Minimising our environmental impact

SUCCESSES

  • Financial closure and commencement of construction of 267MW of dedicated renewable energy capacity in South Africa
  • Formulated an updated Group Science-Based Target initiative (SBTi)-aligned target (excluding AUS region): 42% scope 1 and 2 reduction by 2030 from a 2021 base1
  • Completion of Task force on climate-related financial disclosure (TCFD) reporting gap analysis as well as a modelling of physical climate risks and transition climate risks
  • Achieved a A- score for both our Water Security CDP and Climate Change CDP
SA region
  • Achieved our 2023 GHG emissions (scopes 1 and 2) target by remaining within the annual emission pathway
  • South African Institute of Mining and Metallurgy environmental award for Bathopele mine’s decarbonisation model focused on waste reduction
  • Improvement in concurrent rehabilitation with a R603.7 million reduction in gross closure liability from 2022 base year
US region
  • Achieved all-time record low annual SO2 emissions at 0.78 metric tonnes
  • A final environmental impact statement (EIS) was issued for the proposed Lewis Gulch TSF in November 2023; stakeholder support was overwhelming with 98% of public comments in support of the proposed expansion

CHALLENGES

  • Target to reduce potable water purchases at SA gold and SA PGM operations not achieved
  • Court upheld the Environmental permit for the Rapasaari mine and Päiväneva concentrator — but referred certain permit conditions back to the permitting authority
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Socioeconomic development

SUCCESSES

  • Sibanye Foundation funded the first projects in SA and EU regions
  • Agreement with the National Department of Cooperative Governance and Traditional Affairs (CoGTA) to enable capacity building programmes for local government
  • US and SA regions completed their first human rights due diligence assessments, and have started integrating human rights risks into management plans from 2024

CHALLENGES

  • Sociopolitical challenges exacerbating poverty and unemployment around operations in South Africa
  • Community safety and health
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