Sibanye: Operating Update Quarter Ended 31 March 2019

(firmenpresse) - Sibanye: Operating Update Quarter Ended 31 March 2019

Johannesburg, 9 May 2019: Sibanye Gold Limited trading as Sibanye-Stillwater (Sibanye-Stillwater or the Group) (JSE: SGL & NYSE: SBGL) is pleased to present an operating update for the quarter ended 31 March 2019. Financial results are only provided on a six-monthly basis.


SALIENT FEATURES FOR THE QUARTER ENDED 31 MARCH 2019

- Maintained solid H2 2018 safety performance - numerous historic safety milestones achieved
- The transition to a Toll processing arrangement at Rustenburg adds both strategic and commercial value - direct access to end users and margin enhancing relative to the PoC arrangement
- The improved financial performance from the combined PGM operations more than offset strike related losses at SA gold operations
- Adjusted EBITDA of R1,819 million (excl. Rustenburg) from the combined PGM operations resulted in positive Group adjusted EBITDA of R176 million
- Including Rustenburg, pro-forma adjusted EBITDA from the combined PGM operations would have been R2,574 million
- Strike at SA gold operations brought to a successful conclusion post quarter end
- Section 189 restructuring process at SA gold operations well advance and expected conclusion by mid May 2019
- Five year wage agreement reached for the Stillwater mine and Columbus metallurgical complex post quarter end
- Strategic balance sheet management through equity placing and gold prepayment
- Appropriately positioned with R10 billion available facilities and reduced leverage
- Net debt: adjusted EBITDA at 3.0x at 31 March 2019- reduced to 2.54x on a pro-forma basis (excl. Rustenburg)


US Dollar SA Rand
Quarter ended Quarter ended
Mar Dec Mar KEY STATISTICS Mar Dec Mar
2018 2018 2019 2019 2018 2018

SOUTHERN AFRICA
(SA)
OPERATIONS

PGM operations
286,1 301,2 263,5Oz 4E PGM1 productionkg 8,196 9,371 8,902
94 79 08

1,073 1,078 1,221US$/4EAverage basket R/4Eoz 17,10 15,42 12,83
oz price 4 7 9

21.6 82.9 25.2 US$m Adjusted EBITDA2 Rm 353.0 1,185 258.3
.8

9 27 21 % Adjusted EBITDA % 21 27 9
margin
2
851 739 909 US$/4EAll-in sustaining R/4Eoz 12,74 10,57 10,18
oz cost 1 6 6
3
Gold operations4
291,5 270,0 143,2Oz Gold production kg 4,456 8,399 9,068
00 25 78

1,320 1,221 1,306US$/ozAverage gold priceR/kg 588,0 561,7 507,7
40 88 19

31.3 7.1 (115.US$m Adjusted EBITDA2 Rm (1,61 101.4 374.2
0) 1.4)

8 2 (63) % Adjusted EBITDA % (63) 2 8
margin
2
1,336 1,328 2,030US$/ozAll-in sustaining R/kg 914,5 610,8 513,8
cost 90 83 29
3
Jan UNITED STATES
1900 (US)
OPERATIONS

PGM operations5
148,5 159,4 130,8Oz 2E PGM1 productionkg 4,071 4,960 4,620
49 71 99

191,4 181,7 201,2Oz PGM recycling5 kg 6,261 5,653 5,953
04 61 89

1,027 1,076 1,305US$/2EAverage basket R/2Eoz 18,28 15,39 12,28
oz price 3 4 9

78.8 110.4 104.6US$m Adjusted EBITDA2 Rm 1,465 1,578 942.4
.9 .9

26 31 27 % Adjusted EBITDA % 27 31 26
margin
2
632 642 833 US$/2EAll-in sustaining R/2Eoz 11,67 9,180 7,559
oz cost 1
3
GROUP
131.7 198.5 12.5 US$m Adjusted EBITDA2 Rm 175.8 2,839 1,574
.5 .9

11.96 14.31 14.01R/US$ Average exchange
rate
1 The Platinum Group Metals (PGM) production from the SA operations (including attributable production from Mimosa) is primarily platinum, palladium, rhodium and gold, referred to as 4E (3PGM+Au). The US operations primrily produce palladium and platinum, referred to as 2E (2PGM)
2 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. 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
3 See salient features and cost benchmarks for the quarters for the definition of All-in sustaining cost
4 The SA gold operations results for the quarters ended 31 March 2019 and 31 December 2018 include DRDGOLD Limited (DRDGOLD)
5 The US PGM operations underground production is converted to metric tonnes and kilograms, and performance is translated to SA rand. In addition to the US PGM operations underground production, the operation treats recycling material which is excluded from the 2E PGM production, average basket price and All-in sustaining cost statistics shown. PGM recycling represents palladium, platinum, and rhodium ounces fed to the furnace


Stock data for the quarter ended JSE Limited - (SGL)
31 March
2019

Number of shares in Price range per R9.66 to
issue ordinary R17.51
share

- at 31 March 2019 2,271,760Average daily volume 12,980,355
,491

- weighted average 2,266,384NYSE - (SBGL); one ADR
,087 represents four ordinary
shares

Free Float 80% Price range per ADR US$2.73
to
US$4.83

Bloomberg/Reuters SGLS/SGLJ.Average daily volume 4,583,116
J



OVERVIEW AND UPDATE FOR THE QUARTER ENDED 31 MARCH 2019

1 2019 was an important period for Sibanye-Stillwater, with the Group successfully navigating complex operational and financial challenges and achieving some significant milestones which, we believe, have positioned us to sustainably benefit from higher prevailing precious metal prices and to better withstand any challenges that may occur during the year.

The notable improvement in safety across during H2 2018 was maintained in Q1 2019, with the Group achieving improvements in most safety measures across the operations and achieving a record seven million fatality free shifts on 7 March 2019. This was sadly curtailed by a fatal fall of ground incident at the SA PGM operations on 20 March 2019. The SA gold operations recorded a second successive quarter without any fatalities and continued to improve on other safety measures. Safe production continues to be the highest priority across the Group and we remain focused on maintaining and improving on our safe production performance at all of our operations.

The Association of Mineworkers and Construction Union (AMCU) strike which began at the SA gold operations on 21 November 2018 continued throughout Q1 2019, concluding after almost five months on 17 April 2019. The operational and financial impact of this extended strike at the SA gold operations, was mitigated by another solid operational performance from the SA PGM operations enhanced through significantly higher palladium and rhodium prices, which, combined with a 17% depreciation in the average rand:dollar exchange rate, boosted earnings and cash flow from both the SA and US PGM operations. A slower than anticipated start to the year at the US PGM underground operations and temporary flexibility constraints resulted in lower than anticipated production mined production and which resulted in elevated unit costs for this reporting period. The commissioning of the second electric furnace (EF2), enabled an increase in recycling processing volumes and a reduction in metal inventory, resulting in higher sales volumes .

Average unit commodity prices were higher across the Group operations for Q1 2019 relative to Q1 2018. The 27% increase in the average 2E PGM basket price to US$1,305/oz in Q1 2019, resulted in adjusted EBITDA from the US PGM operations increasing by 33% to US$105 million. In rand terms, this amounted to R1,466 million, a 56% year-on-year increase.

The gearing of the SA PGM operations to the higher rand PGM basket price was similarly evident, with the 33% higher average 4E basket price of R17,104/oz significantly boosting earnings and cash flow. Reported adjusted EBITDA of R353 million from the SA PGM operations was 38% higher than for Q1 2018. This result was achieved despite the change in the contractual processing arrangement with Anglo American Platinum from a Purchase of Concentrate (PoC) to Toll processing arrangement (discussed in more detail in the operations section below). From an accounting perspective this contractual change resulted in zero revenue recognition of 4E production from the Rustenburg operations. Cash flow due to the contractual change was not affected and on a normalised basis, the pro-forma adjusted EBITDA (including Rustenburg), would have been R1,108 million (US$79 million), which is a 330% increase relative to Q1 2018. Attributable adjusted EBITDA from Mimosa, of approximately R198 million (US$14 million) generated during Q1 2019 is equity accounted and also excluded from Group adjusted EBITDA.

The combined adjusted EBITDA from the PGM operations (US and SA) of R1,819 million (US$130 million) for Q1 2019, more than offset the R1,661 million adjusted EBITDA loss from the SA gold operations due to the strike action, resulting in Group adjusted EBITDA of R176 million for Q1 2019. Including the deferred adjusted EBITDA from the Rustenburg operations, normalised adjusted EBITDA from the combined PGM operations would have been 131% higher at R2,574 million (US$184 million) with normalised Group adjusted EBITDA higher at R931 million (US$66 million). We remain focused on deleveraging the Group balance sheet with net debt to adjusted EBITDA at the end of Q1 2019 of 3.00x, was below the Groups 3.5x covenant ceiling for 2019. Following the 5% share placing of approximately R1,700 million (US$120 million) and gold prepayment (announced on 10 and 11 April 2019) of approximately R1,750 million (US$125 million), pro-forma net debt to adjusted EBITDA would be approximately 2.54x.

Whilst the strike action and the gradual build-up post the strike will continue to negatively impact the SA gold operations during Q2 2019, unit revenues for both the gold and PGM operations are expected to exceed those in the comparative period in 2018 and further deleveraging is anticipated during the course of the year.

Industrial relations

SA gold operations

On 17 April 2019, the five month long strike, which was called by AMCU at our SA gold operations on 21 November 2018, was resolved. Our ongoing attempts to end the strike both through legal means and through ongoing engagement with AMCU, were frustrated by ongoing legal challenges and significant intimidation and violence at the operations and in surrounding communities. Despite these vexing actions, we remained resolute and committed to honouring the collective agreement we had reached with the National Union of Mineworkers (the NUM), Solidarity and UASA in respect of wages and conditions of service for the period 1 July 2018 to 30 June 2021. It was therefore pleasing to ultimately resolve the strike in a sustainable manner which did not undermine our values and other stakeholders.

Under the terms of the agreement reached with AMCU, its members will be subject to the same conditions of the original collective wage agreement reached with the other three unions on 15 November 2018. Furthermore, the union committed to concluding a peace pact with the company and the other unions within 30 days as well as engaging in future on a constructive basis across the entire South African segment. .

In recognition of the difficulties experienced by employees during the strike, the Group has agreed to an ex-gratia return to work payment of R4,000 for all employees (not just AMCU members) at the SA gold operations. In addition the Company has offered a cash advance to AMCU members up to a maximum of R5,000 which will be repayable over a 12- month period. Debt consolidation and counselling as part of the existing Care for iMali program will also be freely available. Furthermore, the Company waived its rights to reclaim costs incurred on behalf of employees during the strike, including contributions made to medical aid and pension/provident funds, accommodation and meal costs.

SA PGM operations

The PGM sector wage negotiations will commence in the next few months at the Rustenburg operations, with the three year Kroondal wage agreement up for renewal only in July 2020.

US PGM operations

Wage negotiations with the United Steelworkers Union at the Stillwater mine and Columbus metallurgical complex were successfully concluded during April 2019. The new five-year agreement is on similar terms to the previous agreement with minor revisions, and pay increases broadly in line with other industrial and mining operations. The four-year contract for East Boulder mine, which was agreed in December 2015, remains in place until December 2020.

SAFE PRODUCTION

It is extremely pleasing to note that there have been no fatalities at the SA gold operations since August 2018, with a significant milestone of four million fatality free shifts achieved on 8 April 2019. This is a record for these operations.

A safe build up to normalised production levels following the extended strike will be the primary focus for the SA gold operations during Q2 2019. Ensuring that the work places, many of which have been dormant for almost five months, are safe and conducive to mining and re-integrating the teams will require a measured and gradual approach, with normalised production rates expected to be achieved during Q3 2019.

The Total Reportable Injury Frequency Rate (TRIFR) (measured per million hours) for the US PGM operations of 16.0 for Q1 2019 improved from 17.8 for Q1 2018. There was a notable improvement in the safety performance during the quarter, which started poorly with 60% of the reportable injuries occurring in January 2019.

A fall of ground incident at the SA PGM operations on 20 March 2019 tragically claimed the life of Madodana Manzenze, a rock drill operator at Thembelani shaft in Rustenburg. The Board and management of Sibanye-Stillwater extend their sincere condolences to the family and friends of Mr Manzenze. Prior to this incident, the SA PGM operations achieved 4.4 million fatality free shifts over a six month period.

OPERATING REVIEW

US PGM operations

Mined PGM production from the underground operations of 130,899 2Eoz for Q1 2019, was 12% lower than the comparable period in 2018 primarily due to flexibility constraints caused by sequencing challenges at both the Stillwater and East Boulder mines. This temporarily restricted access to higher grade production stopes. Whilst total operating costs and capital expenditure were in line with expectations, lower production resulted in elevated All-in Sustaining Cost (AISC) per unit for the quarter. Production is expected to ramp up over the balance of the year and annual production and cost guidance remains unchanged. Following the re-commissioning of EF2 in February 2019, the Columbus Metallurgical Complex, increased throughput of mined and recycled material resulting in a record throughput for the quarter. During the period the recycling operation fed an average of 25.6 tonnes of material per day (tpd), enabling a reduction in metal inventory of approximately 32,000oz during the quarter.

Tax changes

The US PGM operations renegotiated its refining and certain sales agreements during Q1 2019, resulting in the reversal of the Group deferred tax charge of R1,545 million (US$108 million), recognised in December 2018. The 2019 effective combined federal and state cash tax rate for the US operations/segment are expected to be between 5 and 10%. The change of tax is a result of sales moving to a different tax jurisdiction.

SA PGM operations

The financial implications of the transition from a PoC to a Toll processing arrangement with Anglo American Platinum effective from 1 January 2019 were discussed in detail in the operating and financial results for the six-months and year-ended 31 December 2018, which were released on 21 February 2019.

In terms of the Toll arrangement, Sibanye-Stillwater pays an agreed toll fee to Anglo American Platinum to smelt and refine concentrate from the Rustenburg operations, but retains ownership of the refined metal produced. From a financial reporting perspective, Sibanye-Stillwater will receive and recognise all the recovered metal at the full average 4E PGM basket price once sold and no longer reflect a discount in its revenue, though costs and unit costs will be higher than under the PoC arrangement, reflecting the additional tolling costs.

At the current spot 4E PGM basket price, the net financial impact of this contractual change is positive, with the increased revenue more than offsetting the additional toll cost and as a result is beneficial both commercially and strategically. The change in the arrangement however results in a delay in the recognition of 4E PGM revenue, due to the point of sale being extended to the end of the processing pipeline, which resulted in no 4E PGM revenue or adjusted EBITDA being recognised from the Rustenburg operations in Q1 2019 (as discussed in the introduction).

Attributable 4E PGM production from the SA PGM operations (including Mimosa) of 263,508 4Eoz and AISC (excluding Mimosa) of R12,741/4Eoz (US$909/4Eoz) are in line with annual guidance. Production guidance for 2019 was lower relative to 2018 due to a reduction in lower grade surface material processed, which is uneconomical under the toll arrangement. In order to further optimise margins by managing tolling costs and revenue, a revised mass pull strategy was implemented at Rustenburg to reduce the volume of underground concentrate sent for processing (causing a slight decline in recoveries), with processing of lower grade surface material also significantly reduced. Kroondal continued its strong performance, with production marginally higher and AISC 4% higher at R10,916/4Eoz, reflecting a real reduction in unit costs.

Q1 2019 chrome sales of 199,343 tonnes were significantly higher than the 94,140 tonnes in Q1 2018 due to a greater availability of cargo vessels relative to early 2018. Chrome revenue of R304 million for Q1 2019 was therefore higher than the Q1 2018 chrome revenue of R117 million despite lower chrome prices in Q1 2019.

SA gold operations

Total gold production from the SA gold operations for Q1 2019 of 4,456 kg (143,278oz), includes 1,130kg (36,330oz) of production from DRDGOLD. Like-for-like, production from the SA gold operations, excluding DRDGOLD, declined 63% to 3,326kg (106,948oz) for Q1 2019 quarter compared with Q1 2018, reflecting the impact of the AMCU industrial action.

Implementation of strike mitigation plans at the SA gold operations and the no work no pay principle, resulted in a significant reduction in operating costs in absolute terms during the quarter. Unit costs were however negatively affected by the lower production volumes, resulting in AISC (excluding DRDGOLD) of R1,002,350/kg (US$2,225/oz), significantly higher than expected ASIC of around R550,000/kg, at more normalized production levels.

Striking employees began to report for work at the SA gold operations from 24 April 2019, following the conclusion of the five month AMCU industrial action on 17 April 2019. As a result of the extended period that large sections of the SA gold operations stood dormant during the strike and in order to ensure the safety of employees, the buildup in production will be measured and gradual, with normalised production rates only anticipated during Q3 2019. A full review of all the workplaces is currently underway and following any necessary re-planning, production guidance will be provided to the market.

Section 189 consultations

On 14 February 2019 notice was given to relevant stakeholders regarding the possible restructuring of the SA gold operations, in terms of Section 189A (Section 189A) of the Labour Relations Act, 66 of 1995 (LRA and associated services) (S189).

Despite an attempt by AMCU to interdict the S189 process, consultations proceeded and the process is expected to be concluded in mid May 2019. Subject to the outcome of the S189 process, approximately 5,870 employees and 800 contractors may be directly impacted. The outcome of the S189 consultation process will be communicated to all stakeholders once concluded.

CORPORATE ACTION

The proposed Lonmin acquisition

On 25 April 2019, it was announced that the Boards of Sibanye-Stillwater and Lonmin had reached agreement on the terms of an increased recommended all-share offer to be made by Sibanye-Stillwater for the entire issued and to be issued ordinary share capital of Lonmin (the Increased Offer). Under the terms of the Increased Offer, Lonmin shareholders will be entitled to receive one new Sibanye-Stillwater share for each Lonmin share that they hold (the Revised Exchange Ratio), reflecting a an additional 0.033 new Sibanye-Stillwater shares per Lonmin share held relative to the Exchange Ratio of 0.967 new Sibanye-Stillwater shares for each Lonmin share held, as announced on 14 December 2017. The Increased Offer for Lonmin reflects the recent recovery in the PGM pricing environment, balanced against the fact that Lonmin continues to be financially constrained and unable to fund the significant investment required to sustain its business and associated employment. The Increased Offer is proposed to be effected by means of a UK scheme of arrangement (the Scheme) and remains subject to a number of conditions, including the relevant approvals of Lonmin shareholders and Sibanye-Stillwater shareholders and of the High Court of Justice of England & Wales.

On 25 April, Sibanye-Stillwater advised that a circular (Circular) containing, inter alia, an ordinary resolution regarding the issuance and allotment of shares as the consideration payable by Sibanye-Stillwater to Lonmin shareholders in respect of the Increased Offer (Ordinary Resolution), a notice convening the general meeting (General Meeting) and a form of proxy, had been posted to Sibanye-Stillwater Shareholders.

The Circular is available, subject to certain restrictions relating to persons in certain restricted jurisdictions, on Sibanye-Stillwaters website at www.sibanyestillwater.com/investors/transactions/lonmin.

The outcome from the Competition Appeal Court of South Africa, which was heard on 2 April 2019, is expected to be provided in due course.

The General Meeting of Shareholders will be held at the Sibanye-Stillwater Academy, Rietkloof 349, Glenharvie, 1786, South Africa, on Tuesday, 28 May 2019 at 08:30 a.m. (South African time), immediately before the Sibanye-Stillwater annual general meeting, to consider and, if deemed fit, pass, with or without amendment, the Ordinary Resolution set out in the Circular. Sibanye-Stillwater also notes that a circular in relation to the Increased Offer and the Scheme (the Lonmin Scheme Circular) was published by Lonmin on 25 April 2019 and is available, subject to certain restrictions relating to persons in certain restricted jurisdictions, on Lonmins website at www.lonmin.com/investors/sibanyestillwater-offer and on Sibanye-Stillwaters website at the address noted above.

Share placing and gold prepayment

On 9 April 2019 the Group announced that it would be raising equity capital through a non pre-emptive cash placing of new Sibanye-Stillwater shares through an accelerated book build process with new and existing institutional investors. On 15 April 2019, Sibanye-Stillwater announced that a total of 108,932,356 new ordinary no par value shares, representing approximately 5% of Sibanye-Stillwaters then in issue ordinary share capital, had been placed with new and existing institutional investors. The cash placing closed at a price of R15.50 per share to raise gross proceeds of approximately ZAR1,700 million (US$120 million). The new shares were admitted to listing on the Main Board of the Johannesburg Stock Exchange on 15 April 2019. On 11 April 2019, it was further announced that US$125 million (approximately R1,750 million) had been raised through a forward gold sale arrangement (gold prepayment) in terms of which, 105,906oz (3,294kg) of gold would be delivered during Q4 2019, subject to a floor price of US$1,200/oz and a cap price of US$1,323/oz.

The equity raise and the gold prepay significantly enhanced the Group balance sheet flexibility and liquidity position, providing the Company with approximately R10 billion (US$700 million) of undrawn available facilities.

OUTLOOK

Mined 2E PGM production guidance from the US PGM operations for 2019 of between 645,000oz and 675,000oz and AISC guidance of between US$690/2Eoz and US$730/2Eoz remains unchanged.Total capital expenditure for the year is guided at between US$235 million and US$245 million for the year. Approximately half of this anticipated spend is growth capital in nature, including expenditure on the Fill the mill project.

4E PGM production from the SA PGM operations for 2019 is unchanged at between 1,000,000oz and 1,100,000oz with AISC between R12,500/4Eoz and R13,200/4Eoz (US$922/4Eoz and US$974/4Eoz), reflecting the transition to the Toll processing arrangement. Capital expenditure is forecast at R1,400 million (US$103 million), which includes approximately R230 million (US$17 million) of project capital. The dollar costs are based on an average exchange rate of R13.55/US$.

Guidance for the SA gold operations will be provided once we have sufficient clarity of the production build up.

Precious metals prices remain significantly elevated and at current spot prices further deleveraging towards an anticipated target of 1.8x net debt to adjusted EBITDA is expected by year-end.

NEAL FRONEMAN

CHIEF EXECUTIVE OFFICER

SALIENT FEATURES AND COST BENCHMARKS FOR THE QUARTERS ENDED 31 MARCH 2019, 31 DECEMBER 2018 AND 31 MARCH 2018

SA and US PGM operations


GROUSA OPERATIONS US
P OPE
RATI
ONS

TotaTotal SA PGM KrooPlatRustenburMimoTota
l ndal Milg sa l
SA e US
and PGM
US
PGM Stil
lwat
oper er
atio
ns

Attributable TotaUndeSurfAttrSurfUndeSurfAttrUnde
l r- ace ibutace r- ace ibutr-
able able gro
grou grou und
nd nd 1

Production
Tonnes 000''t Mar 6,0 5,7 2,8 2,8 877 1,8 1,6 1,0 339 322
milled/tr 20147 25 83 42 20 67 22
eated 9

Dec 7,0 6,6 3,1 3,4 1,0 2,0 1,7 1,4 353 362
20101 39 47 92 30 77 64 15
8

Mar 6,1 5,8 2,8 2,9 874 1,6 1,6 1,2 338 325
20128 03 90 13 78 78 35
8

Plant g/t Mar 2.6 2.0 3.1 0.8 2.4 0.7 3.4 1.2 3.5 13.
head 2017 5 9 9 8 2 9 1 6 76
grade 9

Dec 2.6 2.0 3.2 0.9 2.5 0.6 3.6 1.2 3.5 14.
2018 2 6 0 3 5 2 7 9 81
8

Mar 2.8 2.0 3.3 0.8 2.4 0.5 3.6 1.3 3.5 15.
2010 9 0 9 7 8 8 1 6 52
8

Plant % Mar 75. 69. 82. 22. 82. 11. 84. 34. 75. 91.
recoverie 20193 82 83 64 89 65 32 24 53 80
s 9

Dec 76. 69. 83. 24. 83. 11. 85. 34. 77. 91.
20138 92 91 38 24 53 50 05 27 89
8

Mar 78. 73. 84. 31. 81. 11. 87. 43. 78. 91.
20174 51 94 41 92 94 32 09 15 38
8

Yield g/t Mar 2.0 1.4 2.6 0.2 2.0 0.0 2.9 0.4 2.6 12.
2013 3 4 0 5 8 5 1 9 64
9

Dec 2.0 1.4 2.7 0.2 2.1 0.0 3.0 0.4 2.7 13.
2015 1 3 2 0 8 9 3 7 70
8

Mar 2.2 1.5 2.8 0.2 2.0 0.0 3.2 0.5 2.7 14.
2011 3 0 8 2 7 1 6 7 22
8

PGM 4Eoz - Mar 394 263 245 18, 57, 4,8 157 13, 29, 130
productio 2Eoz 201,407,508,041467 823 78 ,924589 294 ,899
n 9
2
Dec 460 301 276 24, 69, 5,0 175 19, 31, 159
201,750,279,590690 666 09 ,473681 451 ,471
8

Mar 434 286 260 26, 56, 3,7 173 22, 30, 148
201,743,194,069125 764 23 ,176402 129 ,549
8

PGM sold 4Eoz - Mar 219 91, 87, 4,8 57, 4,8 - - 29, 127
2Eoz 201,449995 117 78 823 78 294 ,454
9

Dec 516 301 276 24, 69, 5,0 175 19, 31, 215
201,279,279,590690 666 09 ,473681 451 ,000
8

Mar 420 286 260 26, 56, 3,7 173 22, 30, 134
201,856,194,069125 764 23 ,176402 129 ,662
8

Price and
costs
3
Average R/4Eoz Mar 17, 17, 16, 14, 17, 16, 16, 14, 16, 18,
PGM - 201281 104 874 943 182 182 761 498 453 283
basket R/2Eoz9
price
4
Dec 15, 15, 15, 14, 15, 14, 15, 14, 15, 15,
201415 427 536 348 901 440 391 324 053 394
8

Mar 12, 12, 12, 12, 12, 12, 12, 12, 12, 12,
201637 839 871 643 955 962 830 590 655 289
8

US$/4EoMar 1,2 1,2 1,2 1,0 1,2 1,1 1,1 1,0 1,1 1,3
z 20134 21 04 67 26 55 96 35 74 05
- US$/9
2Eoz

Dec 1,0 1,0 1,0 1,0 1,1 1,0 1,0 1,0 1,0 1,0
20177 78 86 03 11 09 76 01 52 76
8

Mar 1,0 1,0 1,0 1,0 1,0 1,0 1,0 1,0 1,0 1,0
20158 73 76 57 83 83 73 53 58 27
8

Operating R/t Mar 777 580 1,0 119 748 26 1,2 284 978 4,0
cost 201 95 78 80
5 9

Dec 753 484 998 72 717 22 1,1 144 927 3,4
201 63 43
8

Mar 626 502 994 72 714 18 1,1 145 769 2,7
201 40 08
8

US$/t Mar 55 41 78 8 53 2 91 20 70 291
201
9

Dec 53 34 70 5 50 2 81 10 65 241
201
8

Mar 52 42 83 6 60 2 95 12 64 226
201
8

R/4Eoz Mar 12, 13, 12, 18, 11, 9,7 13, 21, 11, 10,
- 201153 335 909 309 335 17 485 394 320 038
R/2Eoz9

Dec 11, 11, 11, 10, 10, 9,2 11, 10, 10, 7,8
201658 265 377 154 595 63 687 381 410 16
8

Mar 6,7 10, 11, 7,9 10, 8,1 11, 7,9 8,6 5,9
20185 722 032 96 986 65 044 68 20 21
8

US$/4EoMar 867 952 921 1,3 809 694 963 1,5 808 716
z 201 07 27
- US$/9
2Eoz

Dec 815 787 795 710 741 647 817 726 728 546
201
8

Mar 567 896 922 669 919 683 923 666 721 495
201
8

All-in R/4Eoz Mar 12, 12, 10, 9,713,441 11, 11,
sustainin - 201358 741 916 79 857 671
g R/2Eoz9
cost
6
Dec 10, 10, 8,9 9,411,170 10, 9,1
201058 576 97 23 582 80
8

Mar 9,3 10, 10, 10,9,990 8,7 7,5
20110 186 477 341 06 59
8

US$/4EoMar 882 909 779 698959 846 833
z - 201
US$/2E9
oz

Dec 703 739 629 659781 740 642
201
8

Mar 778 852 876 864835 728 632
201
8

All-in R/4Eoz Mar 13, 12, 10, 10,13,441 11, 14,
cost - 201479 751 916 250 857 781
6 R/2Eoz9

Dec 11, 10, 8,9 10,11,170 10, 12,
201326 596 97 501 582 560
8

Mar 10, 10, 10, 10,9,990 8,7 9,6
201152 186 477 341 06 95
8

US$/4EoMar 962 910 779 732959 846 1,0
z 201 5
- 9 4
US$/2E
oz

Dec 792 741 629 734781 740 878
201
8

Mar 849 852 876 864835 728 811
201
8

Capital
expenditu
re

Ore Rm Mar 432 120 - - 120.6 - 312
reserve 201.9 .6 .3
developme 9
nt

Dec 425 119 - - 119.9 - 306
201.9 .9 .0
8

Mar 327 110 - - 110.4 - 217
201.8 .4 .4
8

Sustaining Mar 85. 56. 25. 3.527.3 72. 29.
capital 2010 0 2 5 0
9

Dec 283 219 59. 3.4156.3 56. 64.
201.5 .3 6 0 2
8

Mar 98. 77. 20. 10.46.0 72. 21.
2016 1 9 2 3 5
8

Corporate Mar 409 2.3 - 2.3- - 407
and 201.4 .1
projects 9
7
Dec 544 5.4 - 5.4- - 539
201.4 .0
8

Mar 335 - - - - - 335
201.9 .9
8

Total Rm Mar 927 178 25. 5.8147.9 72. 748
capital 201. .9 2 5 .
expenditu 9 3 4
re

Dec 1,2 344 59. 8.8276.2 56. 909
20153.8.6 6 0 .2
8

Mar 762 187 20. 10.156.3 72. 574
201.2 .4 9 2 3 .8
8

US$m Mar 66. 12. 1.8 0.410.6 5.2 53.
2012 8 4
9

Dec 87. 24. 4.2 0.619.3 3.9 63.
2016 1 6
8

Mar 64. 16. 2.0 1.013.0 6.0 48.
2010 0 0
8
Average exchange rates for the quarters ended 31 March 2019, 31 December 2018 and 31 March 2018 were R14.01/US, R14.31/US$ and R11.96/US$, respectively
Figures may not add as they are rounded independently

1 The US PGM operations underground production is converted to metric tonnes and performance is translated into SA rand. In addition to the US PGM operations underground production, the operation treats various recycling material which is excluded from the underground statistics shown and is detailed in the PGM recycling table below
2 Production per product - see prill split in the table below
3 The Group and total SA PGM operations unit cost benchmarks exclude the financial results of Mimosa, which is equity accounted and excluded from revenue and cost of sales
4 The average PGM basket price is the PGM revenue per 4E/2E ounce, prior to a purchase of concentrate adjustment
5 Operating cost is the average cost of production and operating cost per tonne is calculated by dividing the cost of sales, before amortisation and depreciation and change in inventory in a period by the tonnes milled/treated in the same period, and operating cost per ounce and kilogram is calculated by dividing the cost of sales, before amortisation and depreciation and change in inventory in a period by the PGM produced in the same period
6 All-in costs exclude income tax, costs associated with merger and acquisition activities, working capital, impairments, financing costs, one-time severance charges and items needed to normalise earnings. All-in costs is made up of All-in sustaining costs, being the cost to sustain current operations, given as a sub-total in the All-in costs calculation, together with corporate and major capital expenditure associated with growth. All-in sustaining cost per ounce (and kilogram) and All-in cost per ounce (and kilogram) are calculated by dividing the All-in sustaining costs and All-in costs, respectively, in a period by the total 4E/2E PGM produced in the same period
The US operations All-in cost, excluding the corporate project expenditure (on the Altar and Marathon projects), for the quarters ended 31 March 2019, 31 December 2018 and 31 March 2018 was US$1,053/2Eoz, US$876/2Eoz and US$811/2Eoz, respectively
7 The US operations corporate expenditure for the quarter ended 31 March 2019 includes R1.6 million (US$0.1 million) related to the Marathon project, and quarters ended 31 December 2018 and 31 March 2018 R4.2 million (US$0.3 million) and R16.5 million (US$1.4 million), respectively, related to the Altar and Marathon projects

Mining - Prill split excuding recycling operations



GROUP SA OPERATIONS US OPERATIONS
Mar Dec Mar Mar Dec Mar Mar Dec Mar
2019 2018 2018 2019 2018 2018 2019 2018 2018

4Eo% 4Eo% 4Eo% 4Eo% 4Eo% 2Eo% 2Eo% 2Eo%
z z z z z z z z
/ / /

2Eo 2Eo
2Eo z z
z

Platin 1846% 2146% 1946% 1558%17558%16658% 2923% 3623% 3322%
um 2,5 2,0 9,6 3,1 ,97 ,44 ,46 ,08 ,18
73 55 29 09 5 0 4 0 9

Pallad 1847% 2147% 2047% 8231%93,31%88,31% 1077% 1277% 1178%
ium 3,6 6,5 4,2 ,23 125 909 1,4 3,3 5,3
65 16 69 1 3 91 60
5
Rhodiu 226% 256% 246% 229% 25,9% 24,9%
m ,53 ,52 ,15 ,53 524 156
3 4 6 3

Gold 5,1% 6,1% 6,2% 5,2% 6,62% 6,62%
634 655 690 634 55 90

PGM 39100 46100 43100 26100301100286100 13100 15100 14100
produ4,4% 0,7% 4,7% 3,5% ,27% ,19% 0,8% 9,4% 8,5%
ction 07 50 43 08 9 4 99 71 49

Ruthen 35 40 37 35 40, 37,
ium ,60 ,09 ,96 ,60 098 964
4 8 4 4

Iridiu 8, 9, 7, 8, 9,1 7,2
m 169 158 249 169 58 49

Total 43 51 47 30 350 331 13 15 14
8,1 0,0 9,9 7,2 ,53 ,40 0,8 9,4 8,5
80 06 56 81 5 7 99 71 49

Recycling operation


Unit Mar Dec Mar
2019 2018 2018

Average Tonne 25.6 22.1 25.8
catalyst
fed/day

Total Tonne 2,303 2,032 2,323
processe
d

Tolled Tonne 581 280 365
PurchasedTonne 1,722 1,752 1,958
PGM fed 3Eoz 201,2 181,7 191,4
89 61 04

PGM sold 3Eoz 183,7 110,4 155,4
95 76 55

PGM 3Eoz 15,76 35,44 38,26
tolled 1 1 0
returned



SA gold operations


SA OPERATIONS
Total SA DriefontKloof Beatrix Cooke DRD
gold ein GOL
1 D

TotaUndeSurfUndeSurfUndeSurfUndeSurfUndeSurfSur
l r- ace r- ace r- ace r- ace r- ace fac
e
grou grou grou grou grou
nd nd nd nd nd

Producti
on

Tonnes 000''Mar 9,3 411 8,9 30 8 190 1,6 174 456 17 1,1 5,
milled/t 20129 18 27 53 674
treated 9

Dec 9,6 1,1 8,4 282 126 393 1,1 421 292 42 1,1 5,
20134 38 96 51 72 755
8

Mar 4,2 1,5 2,7 500 815 478 1,0 547 173 - 695
20183 25 58 75
8

Yield g/t Mar 0.4 5.2 0.2 3.0 0.3 7.9 0.3 3.2 0.5 0.3 0.2 0.
2018 9 6 1 8 5 7 6 0 5 8 20
9

Dec 0.8 5.3 0.2 5.1 0.5 7.1 0.5 4.2 0.3 1.0 0.3 0.
2017 7 7 1 6 9 0 6 7 5 6 19
8

Mar 2.1 5.2 0.3 5.6 0.2 6.9 0.4 3.3 0.3 - 0.3
2012 5 9 7 9 5 9 7 7 5
8

Gold kg Mar 4,4 2,1 2,2 90 3 1,5 600 567 227 6 323 1,
produce 20156 74 82 10 130
d 9

Dec 8,3 6,1 2,2 1,4 70 2,8 576 1,7 108 44 428 1,
20199 06 93 41 27 94 111
8

Mar 9,0 8,0 1,0 2,8 238 3,3 524 1,8 64 - 240
20168 02 66 33 23 46
8

oz Mar 143 69, 73, 2,9 96 48, 19, 18, 7,2 193 10, 36
201,278896 382 05 558 278 240 95 383 ,33
9 0

Dec 270 196 73, 46, 2,2 90, 18, 57, 3,4 1,4 13, 35
201,025,313712 329 51 891 522 678 72 15 748 ,71
8 9

Mar 291 257 34, 91, 7,6 106 16, 59, 2,0 - 7,7
201,543,270273 083 52 ,837847 350 58 16
8

Gold kg Mar 4,3 2,1 2,2 88 3 1,4 585 554 195 6 341 1,
sold 20173 30 43 82 119
9

Dec 8,2 6,0 2,1 1,4 70 2,8 494 1,7 108 44 380 1,
20188 99 89 41 20 94 137
8

Mar 9,0 8,0 1,0 2,8 238 3,3 524 1,8 64 - 240-
20168 02 66 33 23 46
8

oz Mar 140 68, 72, 2,8 96 47, 18, 17, 6,2 193 10, 35
201,593480 113 29 647 808 811 69 963 ,97
9 7

Dec 266 196 70, 46, 2,2 90, 15, 57, 3,4 1,4 12, 36
201,464,087377 329 51 665 882 678 72 15 217 ,55
8 5

Mar 291 257 34, 91, 7,6 106 16, 59, 2,0 - 7,7
201,543,270273 083 52 ,837847 350 58 16
8

Price
and
costs

Gold R/kgMar 588 582,418 571,505 572,630 593,372 58
price 201,040 8,1
receive 9 14
d

Dec 561 557,909 560,260 563,197 564,623 56
201,788 4,8
8 20

Mar 507 511,918 511,152 510,157 529,583
201,719
8

US$/Mar 1,3 1,293 1,269 1,271 1,317 1,
oz 20106 306
9

Dec 1,2 1,213 1,218 1,224 1,228 1,
20121 228
8

Mar 1,3 1,331 1,329 1,326 1,377
20120
8

OperatinR/t Mar 421 6,8 123 27, 1,1 6,6 176 4,3 154 159 121 10
g 201 83 157 38 49 01 4
cost 9
2
Dec 461 3,0 160 4,3 148 3,3 174 2,1 100 186 229 10
201 01 03 31 03 7
8

Mar 934 2,3 182 2,6 208 2,6 182 1,6 97 - 172
201 14 61 68 80
8

US$/Mar 30 491 9 1,9 81 475 13 307 11 11 9 7
t 201 38
9

Dec 32 210 11 301 10 233 12 147 7 13 16 7
201
8

Mar 78 193 15 222 17 223 15 140 8 - 14
201
8

R/kgMar 881 1,3 480 9,0 3,0 836 477 1,3 309 450 431523
201,00901,3,66516,233,3,440,47619,1,835,000,949,00
9 21 57 33 55 9

Dec 539 558 489 842 267 460 347 493 269 177 606 55
201,451,382,033,054,143,835,688,590,444,273,1772,5
8 65

Mar 444 440 470 469 710 383 374 497 262 - 498
201,387,890,638,714,924,720,237,941,500 ,333
8

US$/Mar 1,9 2,8 1,0 20, 6,7 1,8 1,0 2,9 688 999 959 1,
oz 20156 89 67 017 34 57 60 29 161
9

Dec 1,1 1,2 1,0 1,8 581 1,0 756 1,0 586 385 1,3 1,
20173 14 63 31 02 73 18 201
8

Mar 1,1 1,1 1,2 1,2 1,8 998 973 1,2 682 - 1,2
20155 46 24 21 48 95 96
8

All-in R/kgMar 914 9,242,85761,877 1,104,80444,669 54
sustain 201,590 7 6 6,0
ing 9 23
cost
3
Dec 610 989,014 526,433 537,066 406,132 56
201,883 9,2
8 17

Mar 513 565,093 447,777 557,958 560,417
201,829
8

US$/Mar 2,0 20,520 1,691 2,453 987 1,
oz 20130 212
9

Dec 1,3 2,150 1,144 1,168 883 1,
20128 238
8

Mar 1,3 1,469 1,165 1,451 1,457
20136
8

All-in R/kgMar 935 9,242,85762,119 1,105,34444,669 55
cost 201,925 7 0 6,3
3 9 90

Dec 651 989,014 538,413 537,802 406,132 73
201,267 4,9
8 16

Mar 535 565,093 456,408 558,010 560,417
201,851
8

US$/Mar 2,0 20,520 1,692 2,454 987 1,
oz 20178 235
9

Dec 1,4 2,150 1,171 1,169 883 1,
20116 598
8

Mar 1,3 1,469 1,187 1,451 1,457
20193
8

Capital
expendi
ture

Ore Rm Mar 28. 1.4 25.3 2.1 - -
reserve 2018
develop 9
ment

Dec 432 165.7 199.1 67.2 - -
201.0
8

Mar 498 198.8 194.1 105.3 - -
201.2
8

Sustaini Mar 34. 6.5 14.4 10.6 - 3.
ng 2015 0
capital 9

Dec 218 96.6 80.4 31.8 - 9.
201.6 8
8

Mar 77. 28.2 40.2 9.5 -
2019
8

Corporat Mar 13. - 0.5 0.4 - 11
e and 2019 .6
project 9
s
4
Dec 256 - 39.7 1.4 - 18
201.2 8.4
8

Mar 123 - 33.2 0.1 -
201.2
8

Total Rm Mar 77. 7.9 40.2 13.1 - 14
capital 2014 .6
expendi 9
ture


Dec 906 262.3 319.2 100.4 - 19
201.8 8.2
8

Mar 699 227.0 267.5 114.9 -
201.2
8

US$mMar 5.5 0.6 2.9 0.9 - 1.
201 0
9

Dec 63. 18.3 22.3 7.0 - 13
2014 .9
8

Mar 58. 19.0 22.4 9.6 -
2015
8
Average exchange rates for the quarters ended 31 March 2019, 31 December 2018 and 31 March 2018 were R14.01/US, R14.31/US$ and R11.96/US$, respectively

Figures may not add as they are rounded independently

1 The SA gold operations results for the quarters ended 31 March 2019 and 31 December 2018 include DRDGOLD. Gold produced and gold sold excludes 149kg (4,790oz) and 131kg (4,212oz), respectively from the Far West Gold Recoveries (FWGR) project which was capitalised in accordance with IFRS
2 Operating cost is the average cost of production and operating cost per tonne is calculated by dividing the cost of sales, before amortisation and depreciation and change in inventory in a period by the tonnes milled/treated in the same period, and operating cost per kilogram (and ounce) is calculated by dividing the cost of sales, before amortisation and depreciation in a period by the gold produced in the same period
3 All-in costs excludes income tax, costs associated with merger and acquisition activities, working capital, impairments, financing costs, one time severance charges and items needed to normalise earnings. All-in costs is made up of All-in sustaining costs, being the cost to sustain current operations, given as a sub-total in the All-in costs calculation, together with corporate and major capital expenditure associated with growth. All-in sustaining cost per kilogram (and ounce) and All-in cost per kilogram (and ounce) is calculated by dividing the All-in sustaining costs and All-in costs, respectively, in a period by the total gold sold over the same period
4 Corporate project expenditure for the quarters ended 31 March 2019, 31 December 2018 and 31 March 2018 was R1.3 million (US$0.1 million), R26.7 million (US$1.9 million), and R89.8 million (US$7.5 million), respectively. The majority of this expenditure was on the Burnstone project


DEVELOPMENT RESULTS

Development values represent the actual results of sampling and no allowance has been made for any adjustments which may be necessary when estimating ore reserves. All figures below exclude shaft sinking metres, which are reported separately where appropriate.


SA gold
operations

Quarter 31 Mar 2019 31 Dec 2018 31 Mar 2018
ended

Ree BlaCarMaiVCR BlaCarMaiVCR BlaCarMaiVCR
f ck bonn ck bonn ck bonn
R R R
eeflea eeflea eeflea
der der der

DriefonUni
tein t

Advance(m) 7 64 2 1,0 56 84 661,4 66 99
d 43 4 7 41 0 2

Advance(m) 7 28 44 49 29 22 12
d on 5 3 8 8
reef

Channel(cm 87 48 42 36 46 35 62 56
width )

Average(g/ 7. 24 13 86 4. 30 8. 85
value t) 9 .5 .4 .1 7 .0 6 .8

(cm 68 1,1 563,0 211,0 534,7
.g 4 83 9 91 4 41 4 74
/t)


Quarter 31 Mar 2019 31 Dec 2018 31 Mar 2018
ended

ReeCobKloMaiLibVCRCobKloMaiLibVCRCobKloMaiLibVCR
f bleof n ano bleof n ano bleof n ano
n n n

Kloof Uni
t

Advance(m) 57 26 23 1,1 61 1,2 1,1 60 9 1,1
d 5 6 6 45 9 45 58 5 48

Advance(m) 33 10 84 31 20 22 37 81 9 25
d on 0 4 6 2 3 3 5
reef

Channel(cm 15 11 85 12 13 12 12 12 99 10
width ) 1 3 9 1 0 9 6 4

Average(g/ 8. 12 18 8. 11 20 9. 6. 11 20
value t) 7 .7 .7 4 .6 .7 6 6 .3 .5

(cm 1,31,4 1,5 1,01,5 2,4 1,2 831,12,1
.g 14 35 91 91 26 85 44 2 20 39
/t)


Quarter 31 Mar 2019 31 Dec 2018 31 Mar 2018
ended

Ree Bea Kal Bea Kal Bea Kal
f tri koe tri koe tri koe
x n x n x n
- - -
kra kra kra
ns ns ns

BeatrixUni
t

Advance(m) 53 3,2 38 3,9 64
d 6 23 09

Advance(m) 42 1,0 20 1,2 21
d on 1 16 34
reef

Channel(cm 12 10 18 11 16
width ) 7 6 3 8 8

Average(g/ 10 9. 4. 5. 9.
value t) .3 1 6 8 6

(cm 1,3 96 85 68 1,6
.g 14 6 0 8 19
/t)



Quarter 31 Mar 2019 31 Dec 2018 31 Mar 2018
ended

Ree Kim Kim Kim
f ber ber ber
ley ley ley

Ree Ree Ree
fs fs fs

BurnstoUni
ne t

Advance(m) 1,2
d 66

Advance(m) 19
d on 3
reef

Channel(cm 69
width )

Average(g/ 9.
value t) 2

(cm 63
.g 4
/t)


SA PGM
operations

Quarter 31 Mar 2019 31 Dec 2018 31 Mar 2018
ended

ReeKopSimBamKweK6 KopSimBamKweK6 KopSimBamKweK6
f an unybanzi an unybanzi an unybanzi
- e - - e - - e -
eng ani eng ani eng ani
KroondaUni
l t

Advance(m) 55 38 52 73 57 65 59 70 66 59 42 48 57 60 80
d 6 6 0 4 7 1 8 7 2 2 8 1 8 9 2

Advance(m) 55 36 48 55 57 65 59 70 66 59 40 36 40 53 65
d on 6 8 4 4 7 1 8 7 2 2 9 2 2 5 7
reef

Height (cm 23 21 20 24 24 24 21 22 24 24 23 22 21 24 24
) 8 9 9 1 0 7 9 4 0 1 6 9 7 5 6

Average(g/ 2. 2. 2. 2. 2. 1. 2. 2. 2. 2. 2. 2. 2. 2. 2.
value t) 0 7 7 0 5 8 2 1 1 3 2 2 0 2 2

(cm 46 59 56 47 58 45 48 47 50 54 52 49 42 54 53
.g 9 4 3 9 7 5 6 8 1 6 0 4 9 3 6
/t)


Quarte 31 Mar 2019 31 Dec 2018 31 Mar 2018
r
ended

Ree BathTheKhuSip BathTheKhuSip BathTheKhuSip
f opelmbeselhum opelmbeselhum opelmbeselhum
e - ekae e - ekae e - ekae
lan - lan - lan -
i lel i lel i lel

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Datum: 09.05.2019 - 05:02 Uhr
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"
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