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SIBANYE STILLWATER LIMITED - Sibanye-Stillwater provides operational update post December 2021 safety related interventions

Release Date: 20/01/2022 09:40
Code(s): SSW     PDF:  
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Sibanye-Stillwater provides operational update post December 2021 safety related interventions

Sibanye Stillwater Limited
Incorporated in the Republic of South Africa
Registration number 2014/243852/06
Share codes: SSW (JSE) and SBSW (NYSE)
ISIN – ZAE000259701
Issuer code: SSW
(“Sibanye-Stillwater” or “Company” or “the Group”)


Sibanye-Stillwater provides operational update post December 2021 safety related

Johannesburg, 20 January 2022: Sibanye-Stillwater (Tickers JSE: SSW and NYSE:
SBSW) is pleased to provide an update regarding the commencement of operations
following the safety-related interventions and stoppages that were announced on
15 December 2021. These interventions reinforce the Group’s top priority of safe
production to ensure the safety and health of our more than 80,000 employees
(including contractors). Our primary objective is to continuously reduce
operational risk and the company will not hesitate to halt operations should
elevated risk require appropriate remedial action. A more comprehensive operating
update will be provided in early February, with full results for the six-months
and year-ended 31 December 2021 released on Thursday, 17 February 2022. For more
details, please refer to our  website  at

As announced on 15 December 2021, production from all Group operating segments
remains within annual guidance despite the operational stoppages.

The SA gold operations (excluding DRDGOLD) performed within guidance. Production
for 2021 of 27,747kg (892,084 oz), was above the lower level of guidance of 27,500
kg (884,000 oz), with production of 14,348kg (461,297 oz) for H2 2021, 7% higher
than for H1 2021. In early December 2021, production was suspended at Kloof 1
shaft and at the Beatrix 1 and 3 shafts. Following the implementation of extensive
safety audits and corrective measures, operations at Kloof 1 shaft recommenced in
2022, with a gradual start-up of production activities. Operations at the Beatrix
1 and 3 shafts have not yet recommenced as audits and engagements with the
Department of Mineral Resources and Energy continue.  It is anticipated that
production from the Beatrix operation will resume towards the end of January 2022.

The operational restart in January 2022 at the remainder of the SA gold operations,
post the seasonal break, has been consistent with plan.

Processing operations at Beatrix have been temporarily suspended for
approximately three months from 28 December 2021 whilst rehabilitation work is
undertaken on part of an active tailings storage facility (TSF). A limited
portion of the Beatrix TSF requires precautionary reinforcement and buttressing
work and a decision to cease deposition while this work is being completed has
been taken. It is expected that this work will be completed by April 2022.
Underground mining activities will continue during this time and stockpiled ore
will be processed over the remainder of 2022, once the TSF remediation has been
The SA PGM operations* continue to perform well, with production for 2021 of
1,896,670 4Eoz (including attributable ounces from Mimosa), 3% above the upper
level of guidance of 1,850,000 4Eoz and production of 967,678 4Eoz for H2 2021,
8% higher than for H1 2021. After an initial slow return to work and start up at
the Marikana operation, the SA PGM operations are ramping up well following the
December 2021 break with   Khuseleka shaft (post the management-imposed safety
suspension) and Thembelani shaft (temporarily suspended due to an increase in
COVID-19 infections among supervisor and  senior management),both  resuming
production as planned during January 2022.

Mined PGM production from the US PGM operations of 570,399 2Eoz was at the lower
end of revised guidance of 570,000 2Eoz, primarily due to the ongoing impact of
the safety incident in June 2021, with production of 272,098 2Eoz for H2 2021, 9%
lower than for H1 2021. The implementation of further rail safety enhancements
following the safety incident in June 2021 continued to restrict production from
the Stillwater West mine, which remains constrained by Mine Safety and
Administration stop orders. Additionally, production from the East Boulder mine
was impacted by electrical outages in December 2021 as a result of severe weather
conditions. Pleasingly, the refurbishment of the bridge that crosses the Stillwater
river from the Stillwater East mine to the concentrator was completed in December
2021 and is now fully operational.

The Recycling business had another strong year, with recycled PGM sales of 795,000
3Eoz for the year, within guidance of 790,000 to 810,000 3Eozs. Higher feed rates
during H2 2021 facilitated a meaningful drop in inventories from the recycling
operations which had built up during H1 2021.

*SA PGM operations’ production guidance includes 50% of the attributable Mimosa production, although
AISC and capital excludes Mimosa due it being equity accounted. SA PGM guidance excludes production
and costs from the K4 and Klipfontein projects


Investor relations contact:
James Wellsted
Head of Public Relations
Tel: +27 (0) 83 453 4014

Sponsor: J.P. Morgan Equities South Africa Proprietary Limited


The information in this document may contain forward-looking statements within the meaning
of the “safe harbour” provisions of the United States Private Securities Litigation Reform
Act of 1995. These forward-looking statements, including, among others, those relating to
Sibanye Stillwater Limited’s (“Sibanye-Stillwater” or the “Group”) financial positions,
business strategies, plans and objectives of management for future operations, are
necessarily estimates reflecting the best judgment of the senior management and directors
of Sibanye-Stillwater and involve a number of risks and uncertainties that could cause
actual results to differ materially from those suggested by the forward-looking statements.
As a consequence, these forward-looking statements should be considered in light of various
important factors, including those set forth in this report.

All statements other than statements of historical facts included in this report may be
forward-looking statements. Forward-looking statements also often use words such as “will”,
“forecast”, “potential”, “estimate”, “expect”, “plan”, “anticipate” and words of similar
meaning. By their nature, forward-looking statements involve risk and uncertainty because
they relate to future events and circumstances and should be considered in light of various
important factors, including those set forth in this disclaimer. Readers are cautioned
not to place undue reliance on such statements.

The important factors that could cause Sibanye-Stillwater’s actual results, performance
or achievements to differ materially from estimates or projections contained in the
forward-looking statements include, without limitation, Sibanye-Stillwater’s future
financial position, plans, strategies, objectives, capital expenditures, projected costs
and anticipated cost savings, financing plans, debt position and ability to reduce debt
leverage; economic, business, political and social conditions in South Africa, Zimbabwe,
the United States and elsewhere; plans and objectives of management for future operations;
Sibanye-Stillwater’s ability to obtain the benefits of any streaming arrangements or
pipeline financing; the ability of Sibanye-Stillwater to comply with loan and other
covenants and restrictions and difficulties in obtaining additional financing or
refinancing; Sibanye-Stillwater’s ability to service its bond instruments; changes in
assumptions underlying Sibanye-Stillwater’s estimation of its current mineral reserves;
any failure of a tailings storage facility; the ability to achieve anticipated efficiencies
and other cost savings in connection with, and the ability to successfully integrate,
past, ongoing and future acquisitions, as well as at existing operations; the ability of
Sibanye-Stillwater to complete any ongoing or future acquisitions; the success of Sibanye-
Stillwater’s business strategy and exploration and development activities; the ability of
Sibanye-Stillwater to comply with requirements that it operate in ways that provide
progressive benefits to affected communities; changes in the market price of gold and
PGMs; the occurrence of hazards associated with underground and surface mining; any further
downgrade of South Africa’s credit rating; a challenge regarding the title to any of
Sibanye-Stillwater’s properties by claimants to land under restitution and other
legislation; Sibanye-Stillwater’s ability to implement its strategy and any changes
thereto; the occurrence of labour disruptions and industrial actions; the availability,
terms and deployment of capital or credit; changes in the imposition of regulatory costs
and relevant government regulations, particularly environmental, tax, health and safety
regulations and new legislation affecting water, mining, mineral rights and business
ownership, including any interpretation thereof which may be subject to dispute; the
outcome and consequence of any potential or pending litigation or regulatory proceedings
or environmental, health or safety issues; the concentration of all final refining activity
and a large portion of Sibanye-Stillwater’s PGM sales from mine production in the United
States with one entity; the identification of a material weakness in disclosure and
internal controls over financial reporting; the effect of US tax reform legislation on
Sibanye-Stillwater and its subsidiaries; the effect of South African Exchange Control
Regulations on Sibanye-Stillwater’s financial flexibility; operating in new geographies
and regulatory environments where Sibanye-Stillwater has no previous experience; power
disruptions, constraints and cost increases; supply chain shortages and increases in the
price of production inputs; the regional concentration of Sibanye-Stillwater’s operations;
fluctuations in exchange rates, currency devaluations, inflation and other macro-economic
monetary policies; the occurrence of temporary stoppages of mines for safety incidents
and unplanned maintenance; Sibanye-Stillwater’s ability to hire and retain senior
management or sufficient technically skilled employees, as well as its ability to achieve
sufficient representation of historically disadvantaged South Africans in its management
positions; failure of Sibanye-Stillwater’s information technology and communications
systems; the adequacy of Sibanye-Stillwater’s insurance coverage; social unrest, sickness
or natural or man-made disaster at informal settlements in the vicinity of some of Sibanye-
Stillwater’s South African-based operations; and the impact of HIV, tuberculosis and the
spread of other contagious diseases, such as the coronavirus disease (COVID-19). Further
details of potential risks and uncertainties affecting Sibanye-Stillwater are described
in Sibanye-Stillwater’s filings with the Johannesburg Stock Exchange and the United States
Securities and Exchange Commission, including the Integrated Annual Report 2020 and the
Annual Report on Form 20-F for the fiscal year ended 31 December 2020.

These forward-looking statements speak only as of the date of the content. Sibanye-
Stillwater expressly disclaims any obligation or undertaking to update or revise any
forward-looking statement (except to the extent legally required). These forward-looking
statements have not been reviewed or reported on by the Group’s external auditors.

Date: 20-01-2022 09:40:00
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