A unique, exciting global precious metals company
IR meeting presentation
November 2020
Disclaimer
The information in this announcement 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.
All statements other than statements of historical facts included in this announcement may be forward-looking statements. Forward-looking statements also often use words such as "will", "forecast", "potential", "estimate", "expect" 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 those in the forward-looking statements include, among others, our future business prospects; financial positions; debt position and our ability to reduce debt leverage; business, political and social conditions in the United States, South Africa, Zimbabwe and elsewhere; plans and objectives of management for future operations; our ability to obtain the benefits of any streaming arrangements or pipeline financing; our ability to service our bond instruments; changes in assumptions underlying Sibanye-Stillwater's estimation of their current mineral reserves and resources; the ability to achieve anticipated efficiencies and other cost savings in connection with past, ongoing and future acquisitions, as well as at existing operations; our ability to achieve steady
state production at the Blitz project; the success of Sibanye-Stillwater's business strategy; exploration and development activities; the ability of Sibanye-Stillwater to comply with
requirements that they operate in a sustainable manner; changes in the market price of gold, PGMs and/or uranium; the occurrence of hazards associated with underground and surface gold, PGMs and uranium mining; the occurrence of labour disruptions and industrial action; the availability, terms and deployment of capital or credit; changes in relevant government regulations, particularly environmental, tax, health and safety regulations and new legislation affecting water, mining, mineral rights and business ownership, including any interpretations thereof which may be subject to dispute; the outcome and consequence of any potential or pending litigation or regulatory proceedings or other environmental, health and safety issues; power disruptions, constraints and cost increases; supply chain shortages and increases in the price of production inputs; 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; the ability to hire and retain senior management or sufficient technically skilled employees, as well as their ability to achieve sufficient representation of
historically disadvantaged South Africans in management positions; failure of information technology and communications systems; the adequacy of insurance coverage; any social unrest, sickness or natural or man-made disaster at informal settlements in the vicinity of some of Sibanye-Stillwater's operations; and the impact of HIV, tuberculosis and the spread of other contagious diseases, such as coronavirus ("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 and the Annual Report on Form 20-F.
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).
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A unique, diversified, global, precious metals Group
Long life Reserves (70Moz), only 14% of | US PGM contribution to Adj. EBITDA to |
Resources (493Moz) | increase as Blitz ramps up |
Americas assets
22%
38% Reserves
(%)
2019
40%
Shares in issue1 Shares in ADR form2
Market cap
Net debt: adjusted
EBITDA
21% 20%
Adj EBITDA1
(Rm %) | ||
Q3 2020 | ||
17% | 59% | |
33% | ||
Production | ||
(oz %) | SA gold (oz%) | |
Q3 2020 | ||
SA PGM (4E %) | ||
50% | US PGM (2E %) | |
2,925,519,556
463,339,488 (ADR ratio 1:4 ordinary share)
R156 billion (US$10 billion)
0.05x (proforma 30 Sep 2020)
US PGM
East Boulder mine(100%)
Reserves: 10.2Moz 2E
Stillwater mine(100%) Reserves: 16.7Moz 2E
SA PGM
Mimosa (50%)
Reserves: 1.7Moz 4E
Marikana (100%)4
Reserves: 9.2Moz 4E
Platinum Mile (91.7%)
Reserves: n.a.
Rustenburg (100%):
Reserves: 16.1Moz 4E
Kroondal (50%) Reserves: 1.2Moz 4E
Marathon project (49%) | |
with Generation mining | |
Denison project (80%) | |
with Wallbridge Mining | |
Altar project (100%) | |
with Aldebaran (in | |
Argentina) | |
Southern African assets | SA GOLD |
Cooke surface (100%) | |
Reserves: 0.1Moz Au | |
Kloof (100%) | |
Reserves: 4.5Moz Au | |
Driefontein (100%) | |
Reserves: 2.6Moz Au | |
DRDGOLD (50.1%) | |
Reserves: 2.2Moz Au | |
Beatrix (100%) | |
Reserves: 1.5Moz Au |
Listings | JSE Limited share ticker: SSW |
NYSE ADR programme share ticker: SBSW |
Various SA PGM projects
Resources: 86.8Moz 4E
Various SA gold projects |
Reserves: 4.5 Moz Au |
Resources: 44.3Moz Au |
Geographically diversified, with unique precious metals mix and long life assets
¹ Shares in issue and market cap as at 9 Nov 2020 2 American depository receipts (ADRs) as at 12 October 2020 3 Definition as per debt covenants which includes 12 months pro-forma adjusted EBITDA of Marikana operations *The | 3 |
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 additional results disclosure available on https://www.sibanyestillwater.com/news-investors/
…transformed through value accretive, low-cost growth into PGM sector…
Leading dividend yield from | Acquired Stillwater with debt requiring temporary | Larger, more diversified asset base |
restructured SA gold base - not | suspension of dividends - vital step for long-term value | drives significant increase in earnings |
sustainable in the long-term | creation | enabling resumption of dividends |
2013-2017 | Declining SA | 2015 | 2017 | H1 2018 | Aug 2018 | Jun 2019 | ||
H1 2020 | ||||||||
Restructure | gold profile | Initiated PGM | Acquired | Anomalous | Acquire | Acquired | ||
d inherited | unable to | strategy. | Stillwater | safety | 38.05% | Lonmin | COVID-19 | |
SA gold | sustain | Acquired SA | (US PGM ops). | incidents | stake in | (now | Disruptions | Interim dividend of |
operations | delivery of | PGM assets | Transformative | DRDGOLD | named | at SA | ||
restoring | value to | (Rustenburg | (increased to | Marikana | operations | ZAR 0.50cps (~USD | ||
transaction | ||||||||
profitability | stakeholders | & Aquarius) | 50.1% in 2020) | operation) | 11.8cps)) | |||
Return to sustainable | ||||||||
dividends | ||||||||
Average | Embark on | Significant | Geared up | Operational | Five month | Step 4 - | Record | |
dividend | acquisition | synergies | balance sheet | disruptions at | strike at SA | PGM | adjusted | |
yield of 5% | strategy to | realised, | for acquisition | SA gold | gold | strategy | EBITDA - 90% | |
maintained | maintain | unlocking | @US$2.7bn | operations | operations | completed | from PGM | |
dividend in | acquisitions | |||||||
2013-2017 | value | (including | delay | |||||
longer term | & | |||||||
costs) - | ||||||||
deleveraging | ||||||||
dividends | deleveraging | |||||||
discontinued | to 0.55x | |||||||
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Sibanye Stillwater Limited published this content on 16 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 November 2020 10:56:00 UTC