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GOLD PROJECTSUpdate
Richard Stewart
Executive Vice President: Business Development
28 July 2016
Disclaimer
The information in this presentation may include forward-looking statements, which are based on current expectations and
projections about future events. These statements may include, without limitation, any statements preceded by, followed by or
including words such as “target,” “expect,” “may,” “anticipate,” “estimate,” “will,” and other words and terms of similar
meaning or the negative thereof. These forward-looking statements, as well as those included in any other material discussed
at the meeting, are subject to risks, uncertainties and assumptions, including, among other things, the development of
Sibanye’s business, general economic conditions and actions of regulators. In light of these risks, uncertainties and
assumptions, the events in the forward-looking statements may not occur. No representation or warranty is made that any
forward-looking statement will come to pass and no reliance should be placed on any forward-looking statement. No one
undertakes to publicly update or revise any such forward-looking statement.
2
Projects approach
• Dedicated project team established in 2014 to evaluate, rank and
progress organic projects – ensures production teams remain focused
on operational delivery
• Projects are managed in-house with consultants and contractors enlisted
for specialised inputs
• Project execution owners team is managed internally
• Projects proceed through stage gates of project investigation – from concept to prefeasibility study (PFS), feasibility study (FS), approval
and project execution
• Progression of projects is dependent on their meeting technical, commercial
and strategic benchmarks
• Primary focus on brownfields projects that create value for all stakeholders, extend operational LoMs, enhance or sustain cash flows and provide
a pre-determined return on invested capital
• Identified projects are assessed both at stage gates and annually at
strategic and LoM planning sessions
3Projects structure ensures focus, accountability, and ownership
Capital allocation framework
• Guide corporate decisions on project funding
• Project investment cannot compromise dividend strategy
• Projects must primarily be funded from cash flow, after dividends have been paid
• Alternative funding options may be considered where appropriate or if
returns are enhanced
• Organic projects and external growth opportunities are evaluated using
criteria based on:
– strategy: alignment with Sibanye strategic framework and creation of sustainable value
– technical risks: project delivery (OB2T)
– financial parameters: hurdle rates
• Projects must meet pre-determined investment hurdle rates (real rates in ZAR)
– conceptual: 30%
– prefeasibility: 20%
– feasibility: 15%
– 2015 projects evaluated at a gold price of R450,000/kg
4Organic growth must be aligned with Sibanye’s overall strategic framework
ORGANIC GROWTH PROJECT
Kloof 4 Shaft below
infrastructure project
5
Kloof: plan of mining right
6A well understood ore body
4#
Kloof: schematic of operations and geology
7A low-risk incremental mining approach
Schematic 3D section through the Kloof ore body looking north-northwestS/O = Subcrop
MR = Middelvlei Reef
VCR
MR
K4 below infrastructure target area
K4 below infrastructure project: location and reserves
8Extends Kloof LOM by 3 years and adds an additional 80,000oz through tail management
Ikamva Shaft (K4)
47 level
target area
46 level
target area
Description: K4 below infrastructure
Reserves
2016 LoM + 2015 FS
Moz recovered Life of mine
2016 LoM plan (Dec 2015) 2.612 2033
K4 below infrastructure total project 0.584* 2033
Project + LoM 3.196 2033
* Estimated at reserve pricing of 430,000 R/kg
Capital development plan
Mechanised development to 46 and 47 levels for a raise-bored
decline shaft (hoisting rock and material) and men by chairlifts
9
45 to 46 Level – mechanised development –
-100 chairlift decline (equipped with a chairlift
for men access in the permanent condition)
46 Level
(First cross-cut to reef)
46 to 47 Level - mechanised development – 100 chairlift
decline(equipped with a chairlift for men access in the
permanent condition)
46.5 Level
47 Level
(First cross-cut to reef)
46.5 to 47.5 Level
RBH shaft -34º
45 Level hangingwall access
45 Level footwall access
Winder Installation
Footwall decline shaft -34º for
rock and material hoisting
47.5 Level shaft bottom spillage
handling and dirty water pumping
Mechanised access with raisebored hoisting shaft
K4 below infrastructure project
10Project vital statistics
Project metrics (at R450,000/kg) UnitFeasibility study
2033 cut-off
Kloof 4 Shaft LoM Year 2030
Project life Year 2015 to 2033
First reef intersection Date July 2020
Average value mined cm.g/t 2,057
Recovered yield g/t 7.45
Project capital development m 6,246
Project capital cost* Rm 691
Gold ounces produced Moz 0.616**
Peak funding* Rm 709 (in 2021)
Total cash costs* R/t 1,821
Total all-in costs* R/t 2,473
Total all-in costs* R/kg 331,838
* Pre tax and royalties, costs in 2015 money terms as at time of the feasibility study
** Reserves estimated at R450,000/kg
0
100
200
300
400
500
600
700
800
0
20
40
60
80
100
120
140
Pro
gre
ssive
Rm
An
nu
al R
m
K4 – below infrastructure project capital
FS Cashflow Forecast Actual 2015 2016 Forecast Total Progressive
Project capital
11
* Includes an annual 7.5% contingency from 2016
Capital spend is spread over seven years
R691 million*
Labour: R229 mil
Mining: R158 mil
Engineering: R262 mil
Contingency: R42 mil
Total: R691 million
Production profile
12Sustaining Kloof’s life of mine
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000Stoping centares per month (m2)
LoM 2015 45L Decline ProjectK4 decline project
0
10 000
20 000
30 000
40 000
50 000
60 000
70 000
80 000Milled tonnes per month (t)
LoM 2015 45L Decline ProjectK4 decline project
0
500
1 000
1 500
2 000
2 500
3 000Value mined (cm.g/t)
LoM 2015 45L Decline ProjectK4 decline project
0
100
200
300
400
500
600Gold recovered per month (kg)
LoM 2015 45L Decline ProjectK4 decline project
Valuation and sensitivity analysis
• R1.17bn project NPV (post tax) at R600,000/kg (8% discount rate)
• Project meets required hurdle
rates at R450,000/kg and
has a 21% post tax IRR at R600,000/kg
• Low technical risk, well understood geology and mining
methods
• Project optimised with the mining and construction contract award
to a specialised decline mining
contractor
• Extended Kloof LoM allows
enhanced tail management of
other possible resources
13Robust economic returns at spot prices
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
NPV
(R
m)
Sensitivity analysis (R600,000/kg)
Gold price Operating cost Capital costs
0%
5%
10%
15%
20%
25%
30%
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
IRR
%
NPV
(R
m)
Gold price sensitivity
NPV IRR
spot price
ORGANIC GROWTH PROJECT
Driefontein 5 Shaft below
infrastructure project
14
Driefontein: plan of mining right
15Well understood geology
Driefontein: schematic of operations and geology
16Down-dip extension has been well studied
Schematic 3D section through the Driefontein ore body looking north
D5 below infrastructure target area
D5 below infrastructure project: location and reserves
17
8 Shaft
5 Shaft
10 Shaft
1 Shaft
4 Shaft
2 Shaft
6 Shaft
52L Project target area
54L Project target area
56L - 58L Resources not considered
52 54
52
56
58Feasibility study target area
Down dip extension is not grade constrained
Description: D5 below infrastructure Reserves2016 LoM + 2015 FS
Moz recovered Life of mine
2016 LoM plan (Dec 2015) 1.985 2028
D5 below infrastructure total project 2.122 2042
Project + LoM 4.107 2042
D5 below infrastructure project – 26 line decline to 52 Level and 25 line decline
to 54 Level
Capital development plan
18
50 to 54L chairlift
Orepasses
Orepasses
Hoist chamber
26 Line Decline
Hoist chamber
25 Line Decline
22 X-Cut 25 X-Cut
50-26 Line
HW drive
54L Dams
Pump chamber
50 Level
52 Level
54 Level
24 X-Cut
23 X-Cut
27 X-Cut
26 X-Cut
26 X-Cut
25 X-Cut
26 X-Cut
26 X-Cut
Legend:
50 Level existing access haulages
50-25 and 50-26 decline shafts
Project capital development
Ore Reserve development
Two decline shafts accessing 52 and 54 levels
D5 below infrastructure project
19Project vital statistics
Project metrics (at R450,000/kg) Unit2015 feasibility study
2042 cut-off
Driefontein 5 Shaft LoM Year 2028
Project life Year 2015 to 2042
First reef intersection Date May 2021
Average value mined cm.g/t 1,567
Recovered yield g/t 6.1
Project capital development M 7,727
Project capital cost* Rm 1,016
Gold ounces produced Moz 1.861**
Peak funding* Rm 969 (in 2022)
Total cash costs* R/t 1,802
Total all-in costs* R/t 2,180
Total all-in costs* R/kg 359,976
* Pre tax and royalties, costs in 2015 money terms as at time of the feasibility study
** Reserves estimated at 450,000 R/kg
0
200
400
600
800
1 000
1 200
0
20
40
60
80
100
120
140
160
180
200
Pro
gre
ssive
Rm
An
nu
al R
m
D5 – below infrastructure project
Project Annual 2015 Actual Project Progressive
Project capital
20Capital spend is spread over nine years
R1,016 million*
* Includes an annual 10% Contingency from 2016
2016 Operational plan
Labour = R152mil
Mining = R273mil
Engineering = R501mil
Contingency = R 90mil
Total = R1,016million
D5 below infrastructure project: upside potential
21
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
18 000Stoping centares per month (m2)
2015 LoM 52 Level 54 Level Potential 56 Level
0
20 000
40 000
60 000
80 000
100 000Milled tonnes per month (t)
2015 LoM 52 Level 54 Level Potential 56 Level
0
100
200
300
400
500
600
700
800Gold recovered per month (kg)
2015 LoM 52 Level 54 Level Potential 56 Level
FS no tail
management
56 Level
upside potential
56 Level
upside potential
0
500
1 000
1 500
2 000Value mined (cm.g/t)
2015 LoM 50L Decline ProjectD5 Decline Project
56 Level
upside potential
Significant upside to integrate into the LOM plan
Upside potential at 56 Level
0%
5%
10%
15%
20%
25%
30%
35%
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
4 500
NPV
(R
m)
Gold price sensitivity
NPV IRR
spot price
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
4 500
NPV
(R
m)
Sensitivity analysis (R600,000/kg)
Gold price Operating cost Capital costs
Valuation and sensitivity analysis
• R2.51bn project NPV (post tax) at R600,000/kg (8% discount rate)
• Project meets required hurdle
rates at R450,000/kg and
has a 27% post tax IRR at R600,000/kg
• Low technical risk, well understood geology and mining
methods. Significant
geotechnical analysis
undertaken
• Potential to enhance project
value through specialised
contractor decline
development services
• Potential to extend project pending additional reserve
definition
22Robust economic returns at spot prices
BEISA PROJECT
Prefeasibility study
23
Beatrix: plan of mining right
24Operation with rich history
Beatrix: schematic of operations and geology
25Project de-risked through existing access and historical mining
Schematic 3D section through the Beatrix ore body looking north-northeast
Beisa: 2016 LoM schedule and reserve declaration
26Substantial uranium and gold project
Beatrix Beisa Project − 2016 Ore Reserve declaration
Description Unit Content recovered Grade recovered Life of mine
Produced content – Gold Moz 0.473 2.0 g/t2029
Produced content – Uranium Mlb 7.81 1.056 lbs/t
Beisa: 2016 LoM reserve declaration and variances
27Project sensitive to both gold and uranium prices
Project metrics (at R430,000/kg) Unit 2016 LoM
Beisa LoM Year 2029
Project life Year 2019 to 2029, 11 years
Milled tons Millions 7.394
Gold ounces produced Moz 0.472
Uranium pounds produced MIbs 7.808
Total capital* Rm 2,850
Total cash costs* R/t 973
Total all-inclusive costs* R/t 1,359
Total all-inclusive costs* R/kg 305,719*
* Pre royalties and tax in 2015 money terms, iincludes uranium credits to gold costs (uranium price of R1,140/kg and gold price at R430,000/kg
Valuation and sensitivity analysis
• R362m project NPV (post tax) at R600,000/kg (at 8% discount
rate)
• The project did not meet the
required hurdle rate at
R450,000/kg but has a 20.4%
post tax IRR at R600,000/kg
• Low technical risk project from a mining and geological
perspective
• Requires new uranium plant –Uranium plant design is based
on Ezulwini plant
• Final project scale and life
inter-dependant on 4# gold
operations
28Robust economic returns at spot prices but marginal at valuation prices
-400
-200
0
200
400
600
800
1 000
1 200
NPV
(R
m)
Sensitivity analysis (R600,000/kg)
Gold price Operating cost Capital costs Uranium Price
-20%
-10%
0%
10%
20%
30%
40%
0
1 000
2 000 IRR
go
ld a
nd
ura
niu
m
Go
ld a
nd
ura
niu
m p
ric
es
IRR Gold and uranium price sensitivities
Gold Price (`000) Uranium Price (R/kg)
IRR Gold IRR Uranium
Beisa prefeasibility study: conclusions
• No technical fatal' flaws
• PFS identified that environmental permitting process is critical
• Re-equipping 5 underground levels and building uranium plant, forecast
at 18-24 months
• All the necessary permitting for Beatrix, including the Beisa project permits, in
process – scheduled for completion in 2017
• Capital expenditure well-defined in the PFS and escalated for the 2016 LoM plan
• Uranium plant comprises 62% of total project capital
– total includes a 10% contingency
• Will continue to assess Beisa project against changing commodity prices and
other Sibanye project opportunities
29Provides valuable optionality for Beatrix West Complex
DE BRON MERRIESPRUIT
(DBM) PROJECT
Prefeasibility study
30
DBM project: plan of mining right
31Close proximity to Beatrix
Schematic of potential projects and geology
32
Mining from 1300 metres to 2500 metres below surface
Mining from 480 metres to 1200 metres below surface
Regional faulting results in rare shallow target
Ore Reserve declaration
33Multiple Reefs targeted
Leader Reef
1,2m BTX – KK Reef
2.4m BTX –KK Reef
Legend
B Reef
3D view looking south east
3D view development only
PFS mine design for 2016 LoM
DBM: design re-planned to Sibanye’s PFS
• Block models for each of the four reef horizons determined and only the
economic blocks targeted
• Wits Gold DFS mine access infrastructure and capital escalated and carried
into the PFS – the cost of the new plant build was saved and the transport of
ore to Beatrix included
• Operating costs benchmarked with the Burnstone study as similar planned
development and stoping methods and efficiencies
• Synergies with Beatrix determined in reducing central allocated costs
• Reduced MCF applied, based on Beatrix 3 Shaft historic factors
34Optimistion through integration
Description (at R430,000/kg) Unit DBM – 120ktpm
Project LoM year 2019 - 2037
Average value mined cm.g/t 1,717
Milled tonnes millions 15,400
Gold ounces produced Moz 2.027**
Total cash costs* R/t 1,143
Total all-in costs* R/t 1,478
Total all-in costs* R/kg 354,172
* Pre tax and royalties, costs in 2015 money terms as at time of the prefeasibility study
** Reserves estimated at R430,000/kg
Valuation and sensitivity analysis
• R3.13bn project NPV (post tax) at R600,000/kg (8% discount rate)
• Project is geared to revenue and
did not meet the required hurdle
rate at R450,000/kg but has a
18.1% post tax IRR at R600,000/kg
• Medium technical risk project from a mining and geological
perspective
• Additional trade off studies could
enhance project
• Very attractive project at spot
prices but requires sustained
high commodity prices
35Robust economic returns at spot prices but marginal at valuation prices
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
-1 000
-
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
IRR
NPV
(R
m)
R/kg
Gold price sensitivity
NPV IRR
-1 000
-
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
NPV
(R
m)
Sensitivity analysis (R600,000/kg)
Gold price Operating Cost Capital Cost
DBM project: prefeasibility study, the way forward
• PFS completed for 'Best Trackless Cut option' at 120ktpm
– Sibanye’s first mine design and schedule with the latest inputs, block models
and cut-off grades re-calculated at “best cut” and 120ktpm
– Costs benchmarked against Beatrix operating costs with input from
the Burnstone feasibility study
– Allocated overheads based on Beatrix
– Wits Gold capital reduced based on Beatrix synergies and infrastructure
• A further study comparing trackless mechanised access to an option of
a deeper shaft with a conventional mine development design will be
considered going forward
• Project will be reassessed against new project opportunities and taking
into account new commodity prices
36A cheap option for substantial future value
BEATRIX 3 SHAFT
Below infrastructure project
scoping study
37
Beatrix below infrastructure project: location
38
Decline Position
Bloemhoek
Extending the life of Beatrix even further
Beatrix below infrastructure project: conceptual layout
39Conceptual access
Tram loop
25 Level
26 Level
27 Level
28 Level
29 Level
30 Level
31 Level
Silos
10º Conveyor decline
10º Chairlift & service way decline
Vertical dam
Ore passes
25 Level access incline and tip 274m
Conveyor decline 1,895m
Material service way 1,818m
Chairlift decline 1,818m
Vertical level spacing 50m
Beatrix below infrastructure project: resources
40
Plan
31 Level
30 Level
29 Level
28 Level
27 Level
Fault
Dyke
Boundary
N
Twin decline
system
2.8 km
2.4 km3 km
Large resources still to be accessed
Beatrix below infrastructure: project detail
Pre-feasibility study is currently being undertaken:
• Mine design and schedule with latest input, block models and cut-off grades
re-scheduled
• Ventilation and refrigeration requirements
• Rock engineering constraints
• Logistics for men/material and ore flow
• Operating cost – fixed/variable costing and review central cost allocations
• Capital – detailed cost estimate and project plan
• Structure and grade – 4 surface boreholes to be drilled in 2016 for down-dip
structure and grade results to feed into project
– drilling has begun on first two boreholes
• Pre-feasibility study project valuation to be completed by end of 2016
41
SUMMARY
42
Project pipeline
43Balanced and extensive project pipeline
Va
lue
Discovery Resource Scoping Prefeasibility Feasibility Construction Operational
Beisa
Burnstone
WRTRP
Bloemhoek/
Beatrix below
infrastructure
De Bron
K4 below
infrastructureKloof
Driefontein
Beatrix
Cooke surface
operations
D5 below
infrastructure
Beisa north and
south
Summary and conclusions
• Established core projects team to progress, evaluate and implement organic growth projects
• Strict project assessment criteria to ensure alignment with broader Sibanye strategy
• Capital approved projects have added in excess of 4Moz to Ore Reserves and extended the life of existing operations
• Continued progression of high-yielding projects will continue to support
the expansion of our reserve base, underpinning our ability to continue
paying industry-leading dividends
44Delivering on our strategy
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