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SBSW Sibanye Stillwater Limited

Filed: 18 Feb 21, 9:31am

Exhibit 99.1

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JOHANNESBURG, 18 February 2021: Sibanye Stillwater Limited (Sibanye-Stillwater or the Group) (JSE: SSW & NYSE: SBSW) is pleased to report operating and financial results for the six months ended 31 December 2020, and reviewed condensed consolidated provisional financial statements for the year ended 31 December 2020.

SALIENT FEATURES FOR THE SIX MONTHS AND YEAR ENDED 31 DECEMBER 2020

Profit attributable to owners of Sibanye-Stillwater increased to R29,312m (US$1,781m) from R62m (US$5m) for 2019
Record adjusted Free Cash Flow (FCF) of R19.9bn (US$1.2bn) – 63x increase from R318m (US$22m) for 2019
Driven by larger diversified production base and robust recovery from COVID lockdown in SA
Proven ability to assess and respond to challenges
Deleveraging achieved – net cash of R3.1bn (US$210m) at end 2020
Shift in strategic focus to capital allocation
Final dividend of R9.4bn (US$649m) for 2020 – 321cps (US88.8cents per ADR). Full year dividend yield of 8.7%*
R6.8bn approved investment in high return SA PGM and gold projects securing operational sustainability and 7,000 jobs

* Based on the average share price of R42.52 for the year end 31 December 2020

US dollar

SA Rand

Year ended

Six months ended

Six months ended

Year ended

Dec

2019

Dec

2020

Dec 2019

Jun 2020

Dec 2020

KEY STATISTICS

Dec

2020

Jun 2020

Dec 2019

Dec

2020

Dec

2019

UNITED STATES (US) OPERATIONS

PGM operations1,2

593,974

603,067

309,202

297,740

305,327

oz

2E PGM2 production

kg

9,497

9,261

9,617

18,758

18,475

853,130

840,170

431,681

397,472

442,698

oz

PGM recycling1

kg

13,769

12,363

13,427

26,132

26,535

1,403

1,906

1,508

1,837

1,970

US$/2Eoz

Average basket price

R/2Eoz

32,026

30,621

22,150

31,373

20,287

504.2

794.8

295.9

360.0

434.8

US$m

Adjusted EBITDA3

Rm

7,081.2

6,002.0

4,332.5

13,083.2

7,290.9

27

29

28

26

32

%

Adjusted EBITDA margin3

%

32

26

28

29

27

784

874

795

866

882

US$/2Eoz

All-in sustaining cost4

R/2Eoz

14,342

14,429

11,678

14,385

11,337

SOUTHERN AFRICA (SA) OPERATIONS

PGM operations2,5

1,608,332

1,576,507

980,343

657,828

918,679

oz

4E PGM2 production

kg

28,574

20,461

30,492

49,035

50,025

1,383

2,227

1,475

2,002

2,396

US$/4Eoz

Average basket price

R/4Eoz

38,954

33,375

21,671

36,651

19,994

608.3

1,766.5

464.5

542.8

1,223.7

US$m

Adjusted EBITDA3

Rm

20,024.4

9,050.1

6,753.2

29,074.5

8,796.2

32

53

32

42

60

%

Adjusted EBITDA margin3

%

60

42

32

53

32

1,027

1,111

1,074

1,156

1,082

US$/4Eoz

All-in sustaining cost4

R/4Eoz

17,586

19,277

15,779

18,280

14,857

Gold operations

932,659

982,559

587,908

403,621

578,939

oz

Gold production

kg

18,007

12,554

18,286

30,561

29,009

1,395

1,747

1,432

1,613

1,850

US$/oz

Average gold price

R/kg

967,229

864,679

676,350

924,764

648,662

(67.0)

472.1

140.0

100.9

371.2

US$m

Adjusted EBITDA3

Rm

6,087.4

1,682.9

1,967.7

7,770.3

(969.4)

(5)

28

16

16

36

%

Adjusted EBITDA margin3

%

36

16

16

28

(5)

1,544

1,406

1,347

1,493

1,347

US$/oz

All-in sustaining cost4

R/kg

704,355

800,048

636,405

743,967

717,966

GROUP

4.5

1,780.9

22.6

563.1

1,217.8

US$m

Basic earnings

Rm

19,926.9

9,385.0

316.8

29,311.9

62.1

(69.7)

1,770.7

19.3

561.5

1,209.2

US$m

Headline earnings

Rm

19,785.1

9,360.4

254.9

29,145.5

(1,008.2)

1,034.3

3,000.4

892.4

990.4

2,010.0

US$m

Adjusted EBITDA3

Rm

32,870.9

16,514.0

12,937.5

49,384.9

14,956.0

14.46

16.46

14.69

16.67

16.26

R/US$

Average exchange rate using daily closing rate

1The US PGM operations’ underground production is converted to metric tonnes and kilograms, and performance is translated into SA rand (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
2The Platinum Group Metals (PGM) production in the SA operations is principally platinum, palladium, rhodium and gold, referred to as 4E (3PGM+Au), and in the US Region is principally platinum and palladium, referred to as 2E (2PGM)
3The 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 of profit/loss before royalties and tax to adjusted EBITDA, see note 11.2 of the condensed consolidated provisional financial statements. Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue
4See “Salient features and cost benchmarks” sections for the definition of All-in sustaining cost (AISC)
5SA PGM operations’ results for the year ended 31 December 2019 include Marikana operations for the seven months since acquisition

Stock data for the six months ended 31 December 2020

JSE Limited - (SSW)

Number of shares in issue

Price range per ordinary share (high/low)

R36.75 to R60.40

- at 31 December 2020

2,923,570,507

Average daily volume

16,587,898

- weighted average

2,783,583,218

NYSE - (SBSW); one ADR represents four ordinary shares

Free Float

99%

Price range per ADR (high/low)

US$8.64 to US$16.30

Bloomberg/Reuters

SSWSJ/SSWJ.J

Average daily volume

2,788,160

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2020 1


STATEMENT BY NEAL FRONEMAN, CHIEF EXECUTIVE OF SIBANYE-STILLWATER

Indisputably, 2020 has been a year of worldwide disruption, devastation and change. The global spread of the COVID-19 pandemic, which gained momentum in early 2020, was unexpected and the impact severe. The pandemic continues to wreak an immense toll on human lives, has transformed society, social engagement and lifestyles, with major impact for global economic activity. The world is steadily learning how to live and work with COVID-19 enabling social and economic activities to continue with reduced disruption, and we are encouraged by the roll out of vaccines and other preventative actions being taken, which may mitigate further negative consequences of the pandemic. There is no doubt that this pandemic has irrevocably changed life as we know it forever and many of the changes, whether enforced or accelerated, will persist long beyond COVID-19.  

Paradoxically, while certain industries have been severely impacted by the virus and the global and national initiatives to manage health risks, other industries such as technology, healthcare and online retail have boomed, with global stock markets recovering to record highs. The commodity and mining sectors have largely recovered from the initial demand shock in H1 2020, as global economic recovery has been more rapid than initially expected, with murmurings of another commodities “super cycle” recently growing in volume. This positive outlook is supported by continued stimulus and expansionary monetary policy being maintained by many countries.

The improving outlook for commodities can also be attributed to a visible shift towards more socially and environmentally aware social and regulatory priorities worldwide. This swing towards prioritising a cleaner and greener global future is likely to drive future investment in infrastructure and renewable energy, which will be extremely positive for commodity prices, particularly the essential metals that Sibanye-Stillwater produces and is targeting.

SAFE PRODUCTION

The safe production journey continues and while we continue to make progress and have achieved some notable safety milestones, we are not yet attaining the intended standard of safety performance.  We remain committed to prioritising health and safety in our daily activities.

It was pleasing to note that the key safe production metrics were relatively stable year on-year, despite having to develop and incorporate additional COVID-19 protocols throughout the Group. We also had to contend with the disruptive effect of the lockdown in South Africa in H1 2020 and the complexity of the subsequent safe production build-up following the easing of lockdown restrictions from May 2020. Although the Total Injury Frequency Rate (TIFR) for the Group increased from 8.40 to 8.52 year-on-year and the Serious Injury Frequency Rate (SIFR) ticked higher year-on-year from 3.03 to 3.14, the longer term trend is positive with the TIFR and SIFR significantly better than 2015 levels of 10.33 and 4.68 respectively.

In Q2 2020, the Group achieved the first fatality free quarter since Q4 2018, and the SA gold operations achieved a remarkable milestone of 13 million fatality free shifts over close to a two year period in August 2020.  The loss of nine of our colleagues during the year due to fatal incidents at the SA operations caused significant distress throughout the Group. The Group suffered five fatalities at the SA gold and PGM operations during H2 2020, with four fatalities having occurred previously at the SA PGM operations in Q1 2020.

As per our usual protocols, these incidents have been fully investigated and appropriately managed. These fatalities occurred during periods of significant operational disruption and change (the integration of the Marikana operations in Q1 2020 and the post lockdown return to work from May 2020). At Sibanye-Stillwater, we are responsible for the well-being of more than 80,000 employees and we cannot accept our operating environment (deep level underground and labour intensive) as an inhibitor of excellent safety performance. We will improve overall safety at our operations by addressing behaviour related issues and real risk reduction, to ensure our safe production performance is comparable with international peers. Our values-based culture programme has been developed to address many of the high frequency risks and we believe that we will continue to see improved safe production outcomes as this programme continues to roll out.  

ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG)

As mentioned, the COVID-19 pandemic, particularly the initial lockdown period at the beginning of 2020 has prompted increased awareness and focus on global responsibility, with ESG continuing to gain prominence and relevance.

At Sibanye-Stillwater, sustainability, which encompasses environmental, social and governance excellence, along with safety as an overriding priority, has always been prominent and woven into our approach to business and the way we interact and deal with all stakeholders.

Since the inception of the company in 2013, our CARES values (Commitment, Accountability, Respect, Enabling and Safety) have informed our strategy and business culture. We have been cognisant since the formation of the Group in 2013, that building a successful and sustainable business cannot be achieved without considering and incorporating the interests and needs of all stakeholders as a fundamental part of how we operate and in so doing, ensure that each derives appropriate benefit or value from our activities. This approach is captured in our vision of “creating superior value for all stakeholders”, which is unchanged and has proven to be prescient with companies across the globe beginning to recognise the importance of all stakeholders subscribing to an ethos of stakeholder capitalism and shunning the historical notion of shareholder primacy.  Investors are increasingly recognising that companies need to have regard for all stakeholders in order to have the social legitimacy to operate that enables them to sustainably generate superior returns.

Our Group purpose is “Our mining improves lives” and this core mantra has become increasingly relevant as the Group has grown and evolved from a South African gold producer in 2013, to a global, diversified precious metals corporation today. We improve lives in a myriad of multi-faceted ways: from the jobs we provide, employing over 80,000 people worldwide, to the businesses we support and continue to develop and grow in our supply chain, to the communities we support and develop, to the critical financial contribution we make to local and national governments and to the importance of the metals we produce to ensure a cleaner, greener and more sustainable world for all.

From a social perspective, assisting stakeholders to manage the COVID-19 pandemic was a primary focus during 2020. The Group has continued to provide comprehensive support to employees and their families, local communities and regional and national government in the ongoing struggle with the COVID-19 pandemic (detail on these ongoing efforts was provided in the previous Operating and Financial Results for the six months ended 30 June 2020, which was published on 27 August 2020).  

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2020 2


It is clear that we will be living and working in a COVID-19 affected world for the foreseeable future, although the availability of vaccines marks the start of a new phase in combatting the pandemic. While the roll out of the vaccines has commenced in Montana with mine employees prioritised as essential workers during an early phase of the state’s inoculation programme, the roll out of the vaccine in South Africa has just begun and a holistic vaccination programme to protect against severe disease and attain the goal of population immunity within a reasonable time frame, is in its early stages. The eventual role that the private sector will discharge in this programme remains unclear.  

The SA mining industry has expressed its commitment to assist Government with the logistics of the vaccine roll out throughout the country. Significant Company resources are available to assist should it be required, including our 44 healthcare facilities and qualified healthcare professionals spread throughout the regions in which we operate. We have proven the capability and capacity of our systems to deliver health care services to our workforce and communities through the COVID-19 lockdown and subsequent return to work, which has been effectively managed.

Our analysis indicates that we should be able to vaccinate approximately 18,000 people per day, enabling us to cover our entire workforce within a week and extend the same benefit to their families and many people in our doorstep communities in a relatively short period. Board approval has already been granted to commit up to R200 million in direct and indirect funding/assistance to the vaccine roll out effort.

This represents a significant commitment and as such needs to be accompanied by specific conditions. These include:

The direct monetary contribution will be administered through the Solidarity Fund to coordinate proper and effective application
We support the phased approach by Government, with the highest risk citizens such as healthcare workers in both the public and private sectors logically prioritised as a first phase.  While we acknowledge classification of the mining industry as an essential service included in the second phase of the national vaccine roll out, we consider that vaccines acquired or financed directly by the company should be allocated for employees and their dependents (and communities if required) and preferably administered through our health care facilities by our qualified professionals
We require full transparency on the commercial arrangements for vaccine procurement by Government and the management of logistical resources.

With regard to environmental aspects, as the largest primary producer of PGMs worldwide and one of the largest recyclers of autocatalysts containing PGMs in the US, the Group already makes a significant contribution to ensuring a clean and safe environment. Due to their unique chemical and physical characteristics and catalytic qualities, for decades the PGMs have been essential metals utilised in catalytic converters in the exhausts of internal combustion engine automobiles in order to transform noxious exhaust gasses into more benign components.  The Group is positioned to play an increasing role in the future green economy, via its battery and tech metal strategy and the growing potential of the hydrogen economy, which may significantly increase demand for PGMs.

In line with our commitment to ESG excellence and continual improvement throughout the business, a comprehensive review of the Group environmental and energy footprint was undertaken, which indicates that we should be able to achieve carbon neutrality by 2040. Considering the origins of the Sibanye-Stillwater Group with its deep level, energy intensive SA gold operations, which together with our other SA operations, are currently entirely dependent for their electricity needs on largely coal fired power from the South African state utility Eskom, this will be a commendable achievement. We aim to achieve this goal by, inter alia:

Advocating for an enabling electricity supply industry in South Africa, supportive of decarbonisation
-Direct representation on the Energy Intensive Users Group, BUSA electricity policy task team, and other sectoral forums
Energy and decarbonisation governance through policy, strategy, target setting and performance management
-Decarbonisation targets built into the LTI framework
Improving energy efficiency
-Targeted 2-3% year on year improvements minimum
-165,260tCO2e of emissions avoided in 2020
Increasing renewables as part of our energy mix
-50MW solar PV plant in development, with 200MW of additional solar PV, storage and wind projects under investigation
-20% renewable penetration at a minimum by 2040

We believe that we can accelerate the transition to carbon neutrality, and have an ambition to achieving a zero carbon footprint for the Group by 2040. We will ensure that stakeholders are kept appraised of our progress in this regard together with our ongoing efforts towards excellence in other environmental measures, on a regular basis.

OPERATING AND FINANCIAL REVIEW

2020 was a defining year for the Group, marking the end of the deleveraging phase that has prevailed over the past three years. Despite the significant challenges associated with the COVID-19 pandemic, the Group delivered a record financial performance and made notable progress towards delivery on many strategic targets. This performance is testament to benefits of the strategic growth and diversification undertaken in recent years and reflects the quality, depth and resilience of the Sibanye-Stillwater leadership. We have come out of this period strongly, and the Group is well positioned for the ongoing delivery of value for all stakeholders.  

Despite the ongoing implementation and observance of COVID-19 protocols to support the health and wellbeing of our workforce, production from the three operating segments for 2020 was consistent with the prior year. The build-up to normalised production levels at the SA operations from the COVID-19 lockdown in Q2 2020 exceeded forecasts despite the adoption of a phased return to work in order to protect the health and safety of employees during this sensitive period. Both the SA gold and PGM operations reached normalised production rates in November 2020, positioning the Group for an improved operational performance in 2021.

The SA PGM operations produced 1,576,507 4Eoz in 2020 (including attributable ounces from Mimosa), exceeding the upper limit of revised annual guidance of between 1,350,000 4Eoz and 1,450,000 4Eoz by 9%, with PGM production of 918,679 4Eoz for H2 2020, 40%

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2020 3


higher than for H1 2020. Mined PGM production from the US PGM operations of 603,067 2Eoz in 2020 was marginally higher year-on-year, but below revised guidance of between 620,000 and 650,000 2Eoz, primarily due to the impact of a spike in COVID-19 infections at the US PGM operations in Q4 2020, associated with a severe wave of COVID-19 infections in Montana. Despite the COVID-19 disruptions, H2 2020 production of 305,327 2Eoz was 3% higher than for H1 2020, with most operating trends improving towards the end of the year. Production from the SA Gold operations (excluding DRDGOLD) of 25,190kg (809,877oz) was 3% above revised guidance of between 23,500 and 24,500kg (756,000oz and 788,000oz), with production of 15,023kg (483,001oz) for H2 2020, 48% higher than for H1 2020.

This solid operational performance underpinned the record financial results by obtaining full exposure to higher average precious metal prices. The average 4E PGM basket price increased by 83% to R36,651/4Eoz (US$2,227/4Eoz) for 2020 with the average 2E PGM basket price increasing by 36% to US$1,906/2Eoz (R31,373/2Eoz) and the average rand gold price increasing by 43% to R924,764/kg (US$1,747/oz). The average SA exchange rate depreciated by 14% to R16.46/US$ for the year.

Group revenue increased by 75% year-on-year to R127,392 million (US$7,740 million), with H2 2020 revenue of R72,374 million (US$4,439 million) on par with full year revenue of R72,925 million (US$5,043 million) for 2019. Group adjusted EBITDA for 2020 increased by 230% year-on-year to R49,385 million (US$3,000 million) compared to R14,956 million (US$1,034 million) for 2019.

This resulted in profit attributable to owners of Sibanye-Stillwater, increasing 472 fold from R62 million (US$5 million) for 2019 to R29,312 million (US$1,781 million). Basic earnings per share (EPS) of 1,074 cents (US 65 cents/US 261 cents/ADR) and headline earnings per share (HEPS) of R1,068 cents (US 65 cents/US 260 cents/ADR) increased by 53,600% and 2,770% respectively year-on year.

Sibanye-Stillwater’s economic contribution to the regions in which we operate grew commensurately to our profitability, with royalties increasing by 310% to R1,765 million (US$107million) for 2020 from R431 million (US$30 million) for 2019 and current mining tax increasing from R1,849 million (US$128 million) for 2019 to R5,374 million (US$327 million) for 2020. Along with other taxes, this R4,859 million (US$295 million) higher fiscal contribution is significant, particularly during a period when many countries have experienced economic devastation associated with the COVID-19 pandemic.

The Group deleveraging was successfully achieved during the year, with borrowings reducing by R5,354 million (US$444 million) to R18,383 million (US$1,251 million) and cash and cash equivalents increasing to R20,240 million (US$1,378 million). On a trailing 12 month basis, adjusted EBITDA increased by 230% to R49,385 million (US$3,000 million) resulting in a net cash: adjusted EBITDA ratio of 0.06x compared to net debt: adjusted EBITDA of 1.25x at the end of 2019.

This accelerated deleveraging has significantly de-risked the Group from a financial perspective, addressing what market analysts have continually highlighted as a primary concern and a justification for a relative discount in our investment rating since 2017. Completing this strategic priority allows for a shift in the strategic focus from deleveraging to capital allocation - securing an appropriate balance between consistent and sustained flows of value to stakeholders and allocating capital to ensure the sustainability of the Group and support strategic growth.

After giving due consideration to the successful resumption of operations to normalised operating levels during H2 2020 and the robust financial position of the Group, the Board declared a year-end dividend which delivers a full year dividend to shareholders at the top end of the Group policy range.

Normalised earnings** which are the basis for the declaration of dividends as per the Group dividend policy (see note 9 of the condensed consolidated provisional financial statements), increased by R28,247 million (US$1,696 million), to R30,607 million (US$1,860 million) for 2020 from R2,360 million (US$163 million) in 2019, resulting in the Board declaring  full year dividends of R10,713 million (US$649 million) or 371 cents per share (US$25.15 cents per share or US$100.62 cents per ADR).  This is equivalent to an approximate dividend yield of 6% at the prevailing share price, well ahead of most peers. Adjusting for the 50 cent per share interim dividend (US$2.94 cents per share or US$11.79 cents per ADR) results in a final dividend for 2020 of approximately R9,375 million (US$649 million) or 321 cents per share. (US$22.21 cents per share or US$88.83 cents per ADR)

** Normalised earnings is defined as earnings attributable to the owners of Sibanye-Stillwater excluding gains and losses on financial instruments and foreign exchange differences, impairments, gains and losses on disposal of property, plant and equipment, occupational healthcare expense, restructuring costs, transactions costs, share-based payment on BEE transaction, gain on acquisition, net other business development costs, share of results of equity-accounted investees, after tax, and changes in estimated deferred tax rate. This measure constitutes pro forma financial information in terms of the JSE Listings Requirements and is the responsibility of the board of directors (Board)

INVESTING FOR SUSTAINABLE VALUE

On 15 February 2020 Group Mineral Resources and Reserves were updated for the year ended 31 December 2020. Of primary significance was the 40% increase in the 4E PGM Mineral reserves at the SA PGM operations to 39.5M 4Eoz, primarily due to the inclusion of 12.7M 4Eoz PGM Mineral Reserves from the K4 project at the Marikana operation and the Klipfontein opencast project (0.1Moz) at the Kroondal operation. Gold Mineral Reserves at the SA gold operations and 2E PGM reserves at the US PGM operations remained stable at 11.3Moz and 26.9M 2Eoz respectively. Following the optimisation of the mining layout and scheduling at the Burnstone Project, combined with estimation model improvements, gold Mineral Reserves for the SA gold projects increased by 8% or 0.3Moz to 4.3Moz.

On 16 February 2021 the Board approved the development of the K4 and Klipfontein projects at the SA PGM operations and the resumption of capital development and equipping at the Burnstone gold project. This represents a significant capital investment of approximately R6.8 billion in high return organic projects in South Africa. The projects have a combined NPV of R5.1 biillion at conservative project prices assumed for the evaluations, which increases significantly to R26.9 billion at current spot prices. In addition to this value add for investors in Sibanye Stillwater, the ancillary benefits for communities and other stakeholders will be significant. Approximately 7,000 jobs will be created and sustained over the life of the projects, with significant financial benefits likely to accrue to local communities and regional and national government

The K4 project is a tier one, low cost, brownfields PGM expansion project at the Marikana operations. The project entails completion of the project, which was significantly advanced by Lonmin with R4.4bn of sunk capex before Lonmin suspended the project due to capital constraints. The K4 project has low execution risk and is expected to be brought into first production within 12 months and reach sustainable annual production of approximately 250,000 4Eoz and at average operating costs of approximately R16,000/4Eoz

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2020 4


achieved in approximately seven years. Project capital investment of R3.9 billion is relatively low for a project of this scale, resulting in superior NPV of R3 billion and an IRR of 33% with a six-year payback using conservative project price assumptions. The NPV increases seven fold to R21 billion with an IRR of 80% and a four year payback at current spot metal prices.

The Klipfontein project is a small robust open cast PGM opportunity, which will be developed in terms of the existing Pool and Share Agreement (PSA) with Anglo American Platinum at the Kroondal operations. The Klipfontein project will produce approximately 40,000 4Eoz per annum over a three year LoM of with low average operating cost around R9,000 4Eoz. Project capital is estimated at R66 million, predominantly in the first year, yielding a NPV of R738 million and an IRR of 70% using conservative project price assumptions. The NPV increases to R2.1 billion with an IRR of 110% at current spot metal prices.

These projects will deliver significant socio-economic benefits to the Rustenburg region, with the K4 project providing approximately 4,380 jobs at steady state and the Klipfontein project approximately 124 jobs. Both projects will create meaningful opportunities for local procurement, skills transfer and the provision of economic benefits to local SMMEs and local communities.  The Klipfontein project will sustain the production profile of Kroondal for longer and the K4 project will ensure the sustainability of the Marikana operations for ~50 years.

The Burnstone project is a low cost, extensively pre-developed gold asset in the Balfour area, Mpumalanga which was previously operated under Great Basin Gold. The project will ramp up over five years to a steady state production of around 130,000oz per annum for 10 years with average operating costs of around R420,000/kg. Project capital investment of R2.3 billion returns an NPV of R1.4 billion and an IRR of 24% with a payback of seven years using conservative project price assumptions. The NPV increases to R3.8 billion with an IRR of 39% at the current spot rand gold price.

The Balfour community is an impoverished community in Mpumalanga facing severe socio-economic challenges, which will benefit significantly from economic investment in the region and the resultant employment. The mine will create 2,500 permanent jobs in an area faced with unemployment exceeding 30% and will create meaningful opportunities for local procurement and SMME development and the transfer of skills.

In addition to these projects approved by the Board, the Group has an extensive pipeline of organic projects including downstream beneficiation opportunities, primarily in South Africa, which could be developed under appropriate conditions. Amongst the projects identified and undergoing further assessment are:

At the SA PGM operations, the East 3 shaft, M5 project (old Marikana) decline and East 4 project (Pandora complex) at the Marikana operation, the Siphumelele 1 shaft UG2 project and below infrastructure Merensky extensions on the Thembelani and Khuseleka shafts at the Rustenburg operation and the Meccano chrome project at Kroondal
At the SA gold operations the Bloemhoek project adjacent to the Beatrix operation is undergoing further evaluation with work on the secondary reef projects at the Kloof and Driefontein operations continuing

Aside from the initial project capital, investment in organic projects of this nature would secure operational sustainability and deliver significant benefits for all stakeholders over many years, creating direct and indirect employment, fostering the development of supplier industries and SMMEs to support the operations, delivering community upliftment  and support via SLPs and other social development projects and would contribute significantly to local and national Government in the form of rates, taxes and royalties.

Investing in capital intensive long life projects is not simply a commercially driven decision however, and is influenced by many other considerations other than the incentive pricing of commodities relative to operating costs. These factors include assumptions about the prevailing and future investment environment and the long term operating context, Government policy and regulatory efficiency and other factors which affect the required minimum rate of return or hurdle rate required to justify investment.

The commitment to invest approximately R6.8 billion in the three major capital projects approved by the Board should not be construed as a vote of confidence in the investment climate in South Africa. Continued policy uncertainty, combined with other risks, such as those related to the reliability of water and power availability and the uncertain outlook for electricity costs, as well as risks of social disruption and inefficient regulatory processes are ongoing deterrents to significant investment.

This has been apparent in previous commodity upcycles, where only projects with an extremely strong commercial case can be justified, resulting in SA lagging the rest of the world in terms of investment and growth of its mining sector. The projects we have approved are among the best in the industry due to specific characteristics, which enhance their attractiveness and supported the investment decision. These factors include significant pre-development by previous owners, resulting in relatively low capital to completion, a short lead time to first production and a quick payback on invested capital, which reduces the risk significantly and delivers superior returns. Few projects offer these characteristics and hence investment in the mining sector has been limited in recent years. Roger Baxter, CEO of the Minerals Council recently referred to potential investment of about R20 billion that could be approved by the SA mining industry in a supportive environment – as you can see from the investments we have just declared, this number is likely to be conservative.

A significant effort is going to be required to revitalise and reboot the mining industry and, with it, the national economy. The mining industry remains a critical component of the South African economy with strong multiplier effects into supporting industries and communities, and has the potential to catalyse and drive much needed growth, particularly with the increasingly positive outlook for a sustained period of higher commodity prices.

An example of this potential can be seen in recent reports which suggest that estimated South African tax revenue receipts for 2020 may be close to R300 billion, delivering a surplus of up to R100 billion more than prior projections of R200 billion for 2020. A significant component of this windfall can be attributed to increased royalty and tax receipts from the mining industry, which was the first to resume commercial activity after the lockdown in April 2020 and benefited from rising commodity prices in the latter part of the year. This is evident in a significant increase in royalties and taxes for the Group during 2020 as previously pointed out, which increased by 213% or R4,860 million (US$295 million) year on year, despite the impact of the COVID-19 pandemic. This surplus income is a welcome boon for the South African economy, which has been struggling financially for some time and was dealt a severe blow by COVID-19.

It is clear that the mining industry plays a critical role in the South African economy and could be the driver of much needed, but until now, absent economic growth. With an increasingly positive outlook for a sustained period of higher commodity prices, the

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2020 5


mining industry could be a strong driver of South Africa’s economic recovery. This potential will only be fully realised in a much more supportive environment however – one which incentivises, attracts and provides security for long term investment.

We have a significant opportunity as a country, which we cannot afford to squander. The private sector in South Africa has indicated its readiness to participate in the renewal of the economy. It will require significant courage and change from Government and other stakeholders to facilitate this.

OUTLOOK

The impact of the COVID-19 pandemic global economy during 2020 was profound and led to an approximate 14% decline in global demand for platinum, palladium and rhodium. The impact of this decline in demand on PGM prices was short lived however, with prices recovering rapidly at the end of Q1 2020, following the imposition of the countrywide lockdown in South Africa from late March 2020.  The suspension of mining until May, followed by a gradual buildup of production during the remainder of the year, resulted in global primary platinum, palladium and rhodium supply declining by approximately 11% for 2020, largely offsetting the drop in demand.  Secondary supply from recycling was also 10% lower due to COVID-19 related restrictions, which affected global recycling logistics, as well as fewer vehicles being scrapped.  Converter plant failures at Anglo American Platinum’s processing operations in Q1 2020 and Q4 2020 exacerbated the supply shortfall from South Africa, with the second outage adding to an already tight market and driving PGM prices higher at year end and into 2021.

We expect sustained palladium deficits into 2024, supported by recovering auto sales and tightening emissions regulations in key markets, resulting in increased autocatalyst loadings. Thereafter, we forecast growing palladium surpluses  as new mine supply comes online (from our US PGM operations and from Norilsk Nickel), and substitution of palladium with platinum in gasoline autocatalysts accelerates.  

Conversely, we expect platinum market surpluses to narrow over the first half of the decade, with deficits forecast from 2024. This is largely due to the effect of substitution and declining production from SA.  Our three-year investment into research and development (R&D) of a tri-metal catalyst for gasoline cars, together with BASF, has been successful. The tri-metal catalyst is able to replace palladium with platinum in a 1:1 ratio. Based on current uptake estimates substitution of palladium with platinum could increase to over 1Moz by 2025.  Better alignment of the PGM basket demand with supply will provide longer-term sustainability and greater price stability. Growing acceptance of substitution in gasoline autocatalysts and increasing investment interest in  the hydrogen economy has resulted in the platinum price achieving multi-year highs in 2021. We expect the platinum price to be well supported, with significant upside over the next 5 years.

Rhodium’s sustained market deficits and runaway prices are a growing concern in the absence of investment into new supply or alternative catalysts to meet tightening emissions regulation. We believe that R&D into substitution of rhodium must be considered over the near term.

The near to medium term fundamental outlook for PGMs is robust. As the largest primary  producer and recycler of PGMs in the world, Sibanye-Stillwater’s investments into high return, organic growth projects  positions us well to support PGM demand driven by increasing social pull and regulatory drive  for a cleaner environment. Aspirational climate change targets in Europe and other parts of the world have raised investor interest in the hydrogen economy. Longer-term production of green hydrogen for industrial use is supportive of demand for both platinum and iridium.

With the medium term evolution of the automobile drive train from internal combustion engines (ICE) to greener technologies, such as battery electric, fuel cell electric and hybrid vehicles, we continue to monitor and evaluate the sector for entry points that meet our strategic objectives.  

As our customers’ needs change, the opportunity for us to further build on our mining platform and diversify our offering will ensure that we remain a preferred supplier of strategic metals for tomorrow’s powertrains.

OPERATING GUIDANCE FOR 2021

A meaningful increase in mined 2E PGM production from the US PGM operations is forecast for 2021. Mined 2E PGM production is forecast to be between 660,000 2Eoz and 680,000 2Eoz, with AISC of between US$840/2Eoz to US$860/2Eoz. Capital expenditure is forecast to be between US$300 million and US$320 million, approximately 60% of which is growth capital in nature.

4E PGM production from the SA PGM operations for 2021 is forecast to be between 1,750,000 4Eoz and 1,850,000 4Eoz with AISC between R18,500/4Eoz and R19,500/4Eoz (US$1,230/4Eoz and US$1,295/4Eoz). Capital expenditure is forecast at R 3,800 million (US$ 253 million) with levels for 2021 elevated due to carry over of approximately R800 million (US$53 million) of capital from 2020 which was unspent due to the COVID-19 disruptions. In addition, R1,500 million (US$100 million) of project capital expenditure is expected following the approval of the K4 and Klipfontein projects.

Gold production from the SA gold operations for 2020 is forecast at between 27,500kg (884,000oz) and 29,500kg (948,000oz) with AISC between R760,000/kg and R815,000/kg (US$1,576/oz and US$1,690/oz). Capital expenditure is forecast at 4,025 million (US$268 million), including carry over of approximately R400 million (US$27 million) of capital from 2020 which was unspent due to the COVID-19 disruptions. R425 million (US$28 million) of project capital expenditure has been provided for the Burnstone project.

The dollar costs are based on an average exchange rate of R15.00/US$.

Neal Froneman

Chief Executive Officer

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2020 6


Safe PRODUCTION

Safe production is a Group imperative and the Group remains committed to achieving zero harm in the work place. Recent safe performance achievements suggest that this goal is attainable and we continue to refine and adapt our safe production strategy and protocols. The Group safety performance for 2020 was sound, considering the significant disruption and distractions caused by the COVID-19 pandemic, with the Group Serious Injury Frequency Rate continuing to decline, falling from 4.68 in 2015 to 3.03 in 2020 and the Total Injury Frequency Rate (TIFR) of 8.52 up from 8.40 in 2019, but showing an overall 18% improvement compared with 2015, despite the significant growth in the company since then.

The loss of nine of our colleagues during the year, due to fatal incidents at the SA operations, caused significant distress throughout the Group. After recording zero fatalities during Q2 2020 and the SA gold operations achieving a record and remarkable milestone of 13 million fatality free shifts (FFS) over a close to two year period prior, the Group suffered five fatalities at the SA gold and PGM operations during H2 2020, with four fatalities previously occurring at the SA PGM operations in Q1 2020.

The Board and management of Sibanye Stillwater extend their sincere condolences to the family and friends of our fallen colleagues at the SA Gold and PGM operations: Mr Jaoa Silindane, Mr Khulile Nashwa, Mr Emanoel Kaphe, Mr Rossofino Manhavele, Mr Mfuneko Manikela, Mr Bonginkosi Hlophe, Mr Hlopang Temeki, Mr Cebo Gungthwa and Mr Erens Mello. All incidents have been thoroughly investigated together with the relevant stakeholders to ensure that they are not repeated and appropriate support provided to the families.

The SA PGM operations also experienced a TIFR at 9.20, an increase from 7.84 for 2019, largely due to a regression in H2 2020, with the return to work from the COVID-19 lockdown, but in line with the figures going back to 2014. On 8 Dec 2020 the SA PGM operations plants and concentrators achieved a significant milestone of 13 million FFS.

The US PGM operations reported further improvement in safe production achieving a notable milestone of 3 million fatality free shifts having operated without any fatal incidents since October 2011.

An overall improvement in the safe production performance for the SA gold operations was marred by four fatal incidents in H2 2020 after close to two years’ operating without any fatalities. The TIFR for 2020 6.99 was the lowest level for the SA Gold operations since inception.

US PGM operations

Mined 2E PGM production for 2020 of 603,067 2Eoz, was 2% higher than for the comparable period in 2019, although 3% below the lower end of revised production guidance for 2020, with the state of Montana significantly impacted by the second wave of COVID-19 infections during Q4 2020. AISC for 2020 increased by 11% to US$874/2Eoz due to significantly higher sustaining capital which increased by 32% year-on-year to US$124 million; higher royalties, taxes and insurance which increased by approximately US$24 million (US$38/2Eoz of the AISC increase) due to a 36% higher 2E PGM average basket price at US$1,906/2Eoz and unbudgeted COVID-19 costs (approximately US$6 million or US$10/2Eoz). Despite COVID-19 challenges, total development increased by 3% year-on- year to 27,038m, with development rates improving towards year-end.

The Fill The Mill (FTM) project at the East Boulder mine was brought in on time achieving a sustainable annual run rate of 40,000 oz per annum in December 2020.

3E PGM recycling for 2020 decreased by 2% to 840,170 3Eoz primarily due to lower deliveries for Q2 2020 as a result of the disrupted supply chains earlier in the year. Recycling receipts increased significantly during Q4 as supply chains normalised.

The recycling operations fed an average of 26.4 tonnes per day of spent catalysts in 2020, 2% lower than 2019, but the rate picked up from 25.4 tonnes in H1 2020 to 27.5 tonnes per day in H2 2020, consistent with rates in H2 2019. Increased recycling receipts resulted in recycling inventory building to approximately 600 tonnes in Q3 2020 before being drawn down to approximately 400 tonnes by year end. Recycling inventory is expected to normalise to below 200 tonnes during H1 2021, with a resultant release of working capital.

The average 2E PGM basket price of US$1,906/2Eoz for 2020 was 36% higher than for 2019, resulting in adjusted EBITDA from US PGM operations of US$795 million, 58% higher than for 2019. The recycling operation contributed approximately US$53 million to this total.

Capital expenditure for 2020 was 15% higher than for 2019 at US$269 million with sustaining capital 32% higher at US$124 million and growth capital 3% higher at US$145 million mainly incurred at Stillwater East (SWE) and in completing the FTM project.

Mined PGM production of 305,327 2Eoz for H2 2020 was 1% lower than the comparable period in 2019 but 3% higher than H1 2020. Production from the Stillwater mine (including Stillwater West (SWW) and SWE) for H2 2020 was 194,461 2Eoz, 1% higher than the comparable period in 2019. East Boulder (EB) delivered 110,865 2Eoz for H2 2020, 5% lower than for 2019 due to lower grades and COVID-19 related production shortfalls.

There was an improvement in most operational metrics towards year end, with an increase of 16% in development rates in H2 2020 relative to H1 2020 and a 23% increase relative to H2 2019, consistent with the renewed focus on increasing operational flexibility at SWE. AISC of US$882/2Eoz for H2 2020 was 11% higher than for H2 2019 largely due to lower PGM production, higher ground support costs and higher sustaining capital. As a result of the 31% increase in the average basket price for H2 2020 to US$1,970/2Eoz, royalties and taxes increased, accounting for approximately US$42/2Eoz of the AISC increase. COVID-19 related expenditures of approximately US$3 million were incurred in H2 2020.

Blitz project update

As previously updated, the operating review on the Stillwater East (SWE)(Blitz) project has indicated a delay of up to two years, with production from SWE expected to reach the steady state run rate of approximately 300,000 2Eoz per annum in 2024. SWE has experienced various operational challenges and disruptions over the last 18 months, including:

ground conditions neccessitated modifications to mining methods and ground support to ensure safe extraction

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2020 7


ventilation constraints temporarily resulted in concentrated mining fronts leading to sporadic elevated DPM levels that required ventilation modifications to remedy
higher than expected water ingress requires extensive grouting campaigns negatively impacting primary and secondary development efficiencies
COVID-19 negatively affected productivity and caused equipment and material delays as a result of associated supply chain challenges. As a consequence capital projects not on the project critical path, were delayed in the interest of contractor deployment efficiency.   Key project build components were also negatively impacted by some suppliers of key project components declaring of force majeure 

Following a review, replanning and subsequent project optimisation undertaken during H2 2020, we are confident that a run rate of 300,000 2Eoz per annum will be achieved in 2024. The delay in the production build-up does impact on forecast capital and operating costs. Approximately US$375 million project capital will be required to reach steady state production in the next three years of with AISC for the total US PGM operations is forecast to reduce to an average of US$750/2Eoz (2021 monetary terms) once steady state production at SWE is achieved, including around US$210/oz of annual stay in business capital.

SA PGM operations

The operational performance from the SA PGM operations was commendable considering the sizeable challenges and operating adjustments required during the year. 4E PGM production of 1,576,507 4Eoz for 2020 (including attributable ounces from Mimosa), 9% above the upper limit of revised annual guidance of 1.35 – 1.45 million 4Eoz, production building back to pre COVID rates by November 2020, well ahead of expectations with PGM production for H2 2020 40% higher than for H1 2020. Production for 2020 was 2% lower than 2019 but due to the acquisition of Lonmin in June 2019 it is not directly comparable.

Considering the impact of COVID-19 on production and additional COVID-19 costs, costs for 2020 were well contained with AISC of R18,280/4Eoz (US$1,111/4Eoz) below revised market guidance of R18,500-R20,500/4Eoz. As a result of the transition of the Rustenburg operation from a purchase of concentrate (PoC) processing arrangement with Anglo American Platinum to toll processing (explained in 2019 in detail) as well as the inclusion of Marikana from June 2019, which significantly impacted AISC on a production weighted basis, full year AISC comparison for the full year 2020 with 2019 is not appropriate. Comparing AISC for H2 2020 with H2 2019 is more representative. AISC of R17,586/4Eoz (US$1,082/4Eoz) for H2 2020 was 11% higher than for H2 2019, primarily due to lower production year-on-year (6% lower due to the build-up after the COVID-19 lockdown) and higher royalties, which added R975 million or R1,061/4Eoz (US$65/4Eoz) to AISC.

Capital expenditure of R2,197 million (US$133 million) for 2020 was lower than guidance of R3,100 million (US$214 million) at the beginning of the year due to the impact of the COVID-19 lockdown on the operations. The capital underspend in 2020 will be caught up during 2021, including delayed equipment deliveries such as trackless mobile machinery rebuilds for mechanised operations, fire retardant belting and tailing facilities rehabilitation at Marikana operations.

Underpinned by the consistently strong operational performance and significantly higher PGM prices, with the average 4E PGM basket price of R36,651/4Eoz (US$2,227/4Eoz) for 2020, 83% higher than for 2019, profitability from the SA PGM operations was significantly higher. Adjusted EBITDA for 2020 of R29,075 million (US$1,767 million) was 231% higher than adjusted EBITDA of R8,796 million (US$608 million) for 2019, with the average adjusted EBITDA margin increasing from 32% for 2019 to 53% in 2020.

With the production from the SA PGM operations having returned to normalised pre-COVID -19 levels during Q4 2020 and with the PGM basket price continuing to increase during Q1 2021, the operating and financial outlook for 2021 is extremely positive. At spot price 15 February 2021, the SA PGM 4E revenue basket is around R47,300/4Eoz with Rhodium comprising 55%, palladium 23% and platinum 21% respectively of the basket revenue.

H2 2020 Chrome sales of 1,108k tonnes were lower than the 1,286k tonnes in H2 2019.  Chrome revenue of R924 million (US$57 million) for H2 2020 was slightly higher than chrome revenue of R903 million (US$61 million) for H2 2019 despite the chrome price reducing from US$143/tonne in H2 2019 to US$140/tonne in H2 2020, as a result of the 11% weakening of the R/US$.

4E PGM production of 918,679 4Eoz for H2 2020 declined by 6% relative to the comparable period in 2019 with AISC 11% higher to R17,586/4Eoz (US$1,082/4Eoz). This was impressive given the controlled and phased production build-up, post the COVID-19 lockdown in Q2 2020. H2 2020 adjusted EBITDA increased by 197% to R20,024 million (US$1,224 million) with Marikana alone generating adjusted EBITDA of R8,901 million (US$544 million), an extraordinary feat given an acquisition price of R4,307 million (US$290 million) in June 2019. Capital expenditure of R1,383 million (US$85 million) for H2 2020 was 18% lower than H2 2019 with ORD 12% lower and sustaining capital 22% lower, due to the phased production build up.

4E PGM production from the Rustenburg operation of 337,392 4Eoz was 5% lower than for H2 2019.  Underground production declined by 8% year-on-year to 303,489 4Eoz due to the phased build-up in production post COVID-19.  A focus on surface production to offset lower underground production resulted in surface tons milled increasing by 23% to 2.81 million tons with 4E PGM production from surface sources increasing by 39% to 33,903 4Eoz.  AISC at the Rustenburg operations increased by 18% year-on-year to R17,939/4Eoz (US$1,103/4Eoz), primarily due to lower production and R614 million (US$38 million) or R1,820/4Eoz (US$111/4Eoz) higher inventories than 2019. In addition there was a R390 million (US$24 million) or R1,156/4Eoz (US$71/4Eoz) increase in royalties due to higher PGM basket revenues.

Kroondal’s performance was solid considering the impact of the COVID-19 pandemic on the operations. Attributable 4E PGM production for H2 2020 of 114,412 4Eoz was 14% lower than for the comparable period in 2019, reflecting the phased production build-up after the COVID-19 lockdown. As a result of the mechanised and less labour intensive nature of underground mining at Kroondal, the operation was less impacted by the COVID-19 lockdown and able to ramp up production quicker than the conventional mines at the Rustenburg and Marikana operations. Kroondal’s AISC of R13,066/4Eoz (US$804/4Eoz) for H2 2020, was 16% higher than the comparable period in 2019, primarily due to lower production volumes as a result of COVID-19 disruptions higher royalties and COVID related costs.

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2020 8


The integration of the Marikana operation progressed smoothly notwithstanding the COVID-19 interruptions, delivering corporate and operational synergies of approximately R1.83 billion per annum by year end, well above initial transaction estimates of approximately  R730 million per annum . 4E PGM production for H2 2020 of 381,838 4Eoz was 11% lower than for H2 2019, primarily due to the phased return to production following the COVID-19 lockdown in Q2 2020, which was achieved by November 2020.

Underground production was 14% lower year-on-year with surface operations granted a priority status during the lockdown period to compensate for reduced underground activity during the build-up. Surface production increased by 23% for H2 2020 relative to H2 2019 to 45,876 4Eoz. AISC of R18,970/4Eoz (US$1,167/4Eoz) was 7% higher than H2 2019 due to lower 4E PGM production. Similar to Rustenburg, higher royalties and inventory costs associated with higher PGM prices were partially offset by 36% and 19% lower sustaining capital and ORD respectively, relative to H2 2019. Marikana’s by-product credit was also R1,483 million (US$91 million) higher than H2 2019 due to toll and purchase of concentrate processing during the initial ACP failure. Marikana paid R583 million (US$36 million) higher royalties or R1,527/4Eoz (US$94/4Eoz) due to higher PGM basket revenues.

Attributable 4E PGM production from Mimosa of 62,417 4Eoz was 10% higher than for H2 2019 due to a mill breakdown during H2 2019. Mimosa has maintained a steady performance albeit with AISC increasing by 19% to US$900/4Eoz (R14,627/4Eoz) due to a 46% increase in sustaining capital.

The K4 and Klipfontein PGM projects

The K4 project is a tier one, low cost, brownfields PGM expansion project at the Marikana operations. The project entails completion of the project, which was significantly advanced by Lonmin with R4.4bn of sunk capex before Lonmin suspended the project due to capital constraints. The K4 project has low execution risk and is expected to be brought into first production within 12 months

The salient points of the K4 project include:

Steady state production of around 250,000 4Eoz per annum at an average operating cost of around R16,000/4Eoz
Approximately 11.5M 4Eoz expected to be produced over a 50 year life of Mine (LoM), mining Merensky and UG2 reefs to a depth of 1,287m
Project capital investment of R3.9 billion for infrastructure completion, on and off reef development and a tailings storage facility (TSF). Peak funding R1.67 billion
Existing infrastructure:
Main vertical shaft equipped and functional to 1,332m
Ventilation shaft equipped and functional to 1,078m
Functional 130,000 tpm concentrator
Surface infrastructure such as offices, change houses, refrigeration plants and grout plants
Underground stations and station crosscuts
The project returns a NPV (at a 15% real discount rate) of approximately R3 billion with an IRR of 33% and a six year payback on invested capital at long term assumed project prices of: platinum (US$880/oz), palladium (US$1,600/oz), rhodium (US$5,650/oz) and a R15,0/US$ exchange rate
The NPV increases to approximately R21 billion with the IRR increasing to approximately 80% at spot prices on 9 February 2021 of: platinum (US$1,130/oz), palladium (US$2,340/oz), rhodium (US$21,800/oz) and a R15.00/US$ exchange rate

The Klipfontein project is a small robust open cast PGM opportunity, which will be developed in terms of the existing Pool and Share Agreement (PSA) with Anglo American Platinum at the Kroondal operations.

The salient points of the Klipfontein project include:

Shallow open pit operation, producing approximately 40,000 4Eoz per annum over a three year LoM, with low average operating cost of around R9,000/4Eoz
Mining UG2 reef to a depth of 45m
Project capital investment of R66 million
Ore will be mined by a contractor and treated at the K2 concentrator
The project returns a NPV (15% real discount rate) of R738 million assuming the same project price parameters outlined above, an IRR of 70% and with a payback on invested capital of less than a year
At spot metal prices on 9 February 2021 (as detailed above), the NPV increases to R2.1 billion and the IRR to 110%
Awaiting S102 approval from the DMRE

These projects will deliver significant socio-economic benefits to the Rustenburg region, with the K4 project providing approximately 4,380 jobs at steady state and the Klipfontein project approximately 124 jobs. Both projects will create meaningful opportunities for local procurement, skills transfer and the provision of economic benefits to local SMMEs and local communities. The Klipfontein project will sustain the production profile of Kroondal for longer and the K4 project will ensure the sustainability of the Marikana operations for ~50 years.

SA gold operations

Gold production for 2020 from the SA gold operations (including DRDGOLD) increased by 5% to 30,561kg (982,559oz) with production from the managed SA Gold operations (excluding DRDGOLD) of 25,190kg (809,877oz), 3% above the upper end of revised guidance for the year and only 13% below the lower end of initial pre-COVID-19 guidance for 2020. This was primarily due to the operations achieving normalised production levels from the COVID-19 lockdown sooner than expected.

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2020 9


Total tons milled for 2020 declined by 1% compared to 2019, with the yield increasing by 6% to 0.74g/t driven by an 8% increase in underground yield to 5.22g/t. This was a function of the preferential deployment of returning employees to higher grade areas in order to maximise revenue post lockdown. With underground operations back to full production in November 2020, we expect to see underground yields moderating to long term averages.

AISC for the SA gold operations (including DRD Gold) were well contained for 2020 despite the initial disruptive impact of COVID-19, increased by 4% to 743,967/kg (US$1,406/oz) compared to 2019 (9% lower in USD terms, from US$1,455/oz to US$1,406/oz). This was despite ORD expenditure and sustaining capital increasing by 34% and 88% respectively for 2020 compared with 2019, which was affected by the strike in the first half of the year. Capital spend on ORD and sustaining capital is likely to remain elevated until 2023 due to catch up from the 2019 and 2020 disruptions in order to maintain mining. In addition to the above costs which impacted AISC, royalties for the SA Operations (excluding DRD Gold) and community costs increased by 93% to R142 million and 138% to R135 million respectively.

This solid operational performance together with a 43% higher average gold price received of R924,764/kg (US$1,747/oz) for 2020, resulted in the adjusted EBITDA margin for the SA gold operations increasing to 28% for 2020 compared with a negative 5% adjusted EBITDA margin for 2019 and a significantly higher positive adjusted EBITDA of R7,770 million (US$472 million) compared with an adjusted EBITDA loss of R969 million (US$67 million) for 2019. Approximately 78% of adjusted EBITDA for 2020 was generated in H2 2020 which was a more representative period, suggesting significant upside for 2021.

Production for H2 2020 (including DRDGOLD) declined by 2% year-on-year to 18,007/kg (578,939oz) with production from the managed operations (excluding DRDGOLD) of 15,023kg (483,001oz) 1% lower as a result of the phased build-up post the COVID-19 lockdown. Total gold sold (excluding DRDGOLD) of 14,653kg (471,105oz) was 6% (991kg) lower than for the same period in 2019 with 695kg (2019: 219kg) of unsold gold at the end of the current financial period.

AISC for the SA gold operations (including DRDGOLD) increased by 11% to R704,355/kg (US$1,347/oz), primarily due to lower production and higher royalty and COVID-19 related costs. In addition ORD costs were 4% higher due to an increase in off-reef development as well as sustaining capital, which increased by 38% as a result of overhead cost reduction projects at the Kloof operation gaining momentum.

Capital expenditure for H2 2020 for SA gold Operations (including DRDGOLD) increased by 15% year-on-year to R1,889 million (US$116 million) largely driven by increased capital investment by DRDGOLD where capital expenditure increased by 363% to R202million (US$12million). Capital expenditure at SA gold operations (excluding DRDGOLD) increased by 6% to R1,687million (US104million) with ORD expenditure increasing by 4% year-on-year to R1,101 million (US$68 million) and sustaining capital by 10% to R443million (US$27million).

Underground production from the Driefontein operation increased by 11% to 4,931kg (158,535oz) year-on-year due to improved productivity and efficiencies despite crews being on average at a 20% lower complement than normal.  Production from the Driefontein surface operation ceased in 2019, but surface material from the Kloof operations was toll treated at the Driefontein metallurgical plant during 2020. AISC for H2 2020 was 1% higher at R701,129/kg (US$1,341/oz) due to increased gold production offset by significantly higher royalties and community costs. Despite sustaining capital declining by 25% year-on-year, ORD spending increased by 8% year-on-year.

The Kloof operation performed solidly for H2 2020 with gold production increasing by 8% to 6,495kg (208,819oz). Underground production increased by 6% year-on-year to 5,493kg (177,604oz) with tons milled declining by 4% due to the gradual build-up in mining crews post lockdown. This was offset by underground yield increasing by 10% to 5.8g/t. Productivity increased with increased square meters mined despite the crews being on average 12% lower than the same period last year. The increase in grade can be attributed to crews initially being deployed to the highest-grade sections post lockdown following improved access to higher grade panels, which were unavailable in H2 2019 due to a fire and seismic events. Surface production at the Kloof operations increased by 20% to 1,002kg (32,215oz) with tons milled 9% higher for H2 2020 than for H2 2019 due to higher surface volumes being processed as a result of the additional capacity in the plants due to the slower start-up of underground mining and surface throughput from Kloof toll treated at the Driefontein and Ezulwini metallurgical plants. AISC at Kloof for H2 2020 1% higher at R722,845/kg (US$1,383/oz), due to increased gold production offsetting higher royalties and community cost and ORD and sustaining capital increases of 2% and 32% respectively.

Gold production from the Beatrix operation declined by 28% in H2 2020 compared to H2 2019 as a result of the slower start-up post lockdown with a high percentage of workers coming from neighbouring countries and restrictions at border posts. Underground gold production decreased by 31% to 2,799kg (89,990oz) with tons milled declining by 29% and yield declining 2% due to the slow start-up of the higher grade No 4 shaft. Gold production from surface sources increased by 127% to 150kg (4,823oz) as additional milling capacity was available for surface material and the higher gold price reduced the surface material pay limits. Beatrix’s AISC for H2 2020 increased 45% year-on-year to R812,018/kg (US$1,553/oz) largely due to the 31% decrease in gold sold coupled with higher sustaining capital which increased 17% year-on-year and higher royalties and community costs.

No underground material was processed in H2 2020 for the Cooke operations, which amounted to a drop of 16kg (514oz) from the previous period. Surface gold production increased by 2% to 648kg (20,834oz) with tons milled increasing by 20% and offsetting a 16% drop in yield. The volume increase is due to the higher percentage contribution from slimes following the depletion of the larger material on the sand and rock dumps. Care and maintenance cost at Cooke operations increased by 11% year-on-year to R315 million (US$19 million) as a result of the water purification project at Cooke 1 shaft and additional security cost to secure assets.

The Burnstone gold project

The Burnstone project is a low cost, extensively pre-developed gold asset in the Balfour area, Mpumalanga which was previously operated under Great Basin Gold.

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2020 10


The salient points of the Burnstone project include:

A relatively shallow underground operation, mining the Kimberley reef to an average depth of approximately 550m below surface
Project capital investment of R2.3 billion primarily to complete underground infrastructure and acquire trackless mobile machinery
Production of 2.03 Moz gold over a 20 year life
The project will ramp up over five years to a steady state production of around 130,000 oz per annum for 10 years with average operating costs of around R420,000/kg
Existing infrastructure includes:
A functional metallurgical facility
Established TSF
Equipped and functional vertical shaft and trackless decline
Surface infrastructure such as offices, workshops, compressors etc.
Extensive underground development and infrastructure
The project NPV (15% real discount rate) is approximately R1.4 billion with an IRR of 24% and a payback of 7 years at an assume gold price of $1,500/oz and exchange rate of R15/US$
The NPV increases to approximately R3.8 billion with the IRR increasing to approximately 39% at spot prices on 9 February 2021 of: gold US$1,840/oz and a R15,0/US$ exchange rate

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2020 11


FINANCIAL REVIEW OF THE SIBANYE-STILLWATER GROUP

FOR THE SIX MONTHS ENDED 31 DECEMBER 2020 (H2 2020) COMPARED WITH THE SIX MONTHS ENDED 31 DECEMBER 2019 (H2 2019)

The President of the Republic of South Africa announced a nation-wide lockdown from midnight 26 March 2020, which was amended through a notice published by the South African government on 16 April 2020 allowing for our South African mining operations to be conducted at a reduced capacity of not more than 50%. From 17 April 2020, management commenced implementing its strategy to mobilise the required employee complement to safely ramp up production at our South African operations to the initial restricted 50%. Subsequent directives issued by the Minister of Mineral Resources and Energy and the easing of lockdown restrictions allowed for the controlled ramp up of production under stringent regulations. As a result, significant differences between the periods include the lower production levels at the SA gold and SA PGM operations during H2 2020 while safely mobilising employees and ramping up production. By the end of H2 2020 the SA gold and SA PGM operations successfully reached near pre-COVID-19 production levels.

The reporting currency for the Group is SA rand (rand) and the functional currency of the US PGM operations is US dollar. Direct comparability of the Group results between the two periods is distorted as the results of the US PGM operations are translated to rand at the average exchange rate, which for H2 2020 was R16.26/US$ or 11% weaker than for H2 2019 (R14.69/US$).

The revenue, cost of sales, before amortisation and depreciation, net other cash costs, adjusted EBITDA and amortisation and depreciation are set out in the table below:

Figures in millions - SA rand

H2 2020

H2 2019

% change

Revenue

72,374

49,391

47

- US PGM operations

22,138

15,541

42

- SA PGM operations

33,477

21,340

57

- SA gold operations, excluding DRDGOLD

14,103

10,515

34

- DRDGOLD

2,978

2,111

41

- Group corporate1

(322)

(116)

(178)

Cost of sales, before amortisation and depreciation

(38,051)

(35,438)

7

- US PGM operations

(15,038)

(11,236)

34

- SA PGM operations

(12,648)

(14,080)

(10)

- SA gold operations, excluding DRDGOLD

(8,739)

(8,678)

1

- DRDGOLD

(1,626)

(1,444)

13

Net other cash costs

(1,452)

(1,015)

43

- US PGM operations

(19)

28

168

- SA PGM operations

(805)

(507)

59

- SA gold operations, excluding DRDGOLD

(614)

(513)

20

- DRDGOLD

(14)

(23)

(39)

Adjusted EBITDA

32,871

12,937

154

- US PGM operations

7,081

4,333

63

- SA PGM operations

20,024

6,753

197

- SA gold operations, excluding DRDGOLD

4,750

1,323

259

- DRDGOLD

1,338

644

108

- Group corporate1

(322)

(116)

(178)

Amortisation and depreciation

(4,149)

(4,289)

(3)

- US PGM operations

(1,398)

(1,193)

17

- SA PGM operations

(1,168)

(1,202)

(3)

- SA gold operations, excluding DRDGOLD

(1,488)

(1,810)

(18)

- DRDGOLD

(95)

(84)

13

1.The streaming transaction is not recognised in the Stillwater segment (see note 21 of the condensed consolidated provisional financial statements)

Revenue

Revenue increased by 47% to R72,374 million (US$4,439 million), mainly due to higher commodity prices partially offset by lower sales volumes at the SA operations.

Revenue from the US PGM operations increased by 28% to US$1,363 million or 42% to R22,138 million in rand terms, due to a 31% increase in the average US dollar 2E basket price, a 1% increase in mined ounces sold and a 11% weaker rand, partially offset by a 19% decrease in recycled ounces. At the SA PGM operations, revenue increased by 57% to R33,477 million (US$2,050 million) due to a 80% higher average rand 4E basket price, partially offset by a 14% or 133,330 4Eoz decrease in PGMs sold. The lower sales volumes at our SA PGM operations in H2 2020 was mainly due to lower production volumes during Q3 2020 whilst ramping up to normal production levels post the COVID-19 lockdown.

Revenue from the SA gold operations excluding DRDGOLD increased by 34% to R14,103 million (US$864 million) mainly due to a 43% higher rand gold price, partially offset by 6% or 31,861oz decrease in gold sold. Revenue from DRDGOLD increased by 41% to R2,978 million (US$183 million) due to a 42% higher rand gold price received.

Cost of sales, before amortisation and depreciation

Cost of sales, before amortisation and depreciation increased by 7% to R38,051 million (US$2,341 million). Cost of sales, before amortisation and depreciation at the US PGM operations increased by 21% to US$927 million (R15,038 million) due to US$131 million (R3,001 million) higher recycling costs and higher royalties paid of approximately US$71/oz, both highly correlated to the increased PGM commodity prices. Cost of sales, before amortisation and depreciation at the SA PGM operations decreased by 10% to R12,648 million (US$778 million) due to a 6% or 61,664 4Eoz decline in production volumes and synergies realised following the integration of the Marikana operation.

Cost of sales, before amortisation and depreciation at the SA gold operations excluding DRDGOLD increased marginally by 1% or R61 million to R8,739 million  (US$537 million) due to increased labour costs. Cost of sales, before amortisation and depreciation from DRDGOLD increased by 13% to R1,626 million (US$100 million) due to an increase in tons treated.

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2020 12


Adjusted EBITDA

Adjusted EBITDA includes other cash costs, care and maintenance costs; lease payments; strike costs and corporate social investment costs (CSI) (refer note 11.2 of the condensed consolidated provisional financial statements for a reconciliation of profit/(loss) before royalties and tax to adjusted EBITDA) . Care and maintenance costs for H2 2020 were R315 million (US$19 million) at Cooke (H2 2019: R283 million (US$19 million)); R56 million (US$3 million) at Marikana (H2 2019: R168 million (US$12 million)) and R41 million (US$3 million) at Burnstone (H2 2019: R10 million (US$1 million)). Lease payments of R75 million (US$5 million) (H2 2019: R81 million (US$6 million)) are included in line with the debt covenant formula. CSI costs were R165 million (US$10 million) (H2 2019: R91 million (US$6 million)) and for H2 2020 there were insignificant strike related costs (H2 2019: R27 million (US$2 million).

The adjusted EBITDA for all operations increased significantly due to higher average commodity prices achieved during H2 2020.

Adjusted EBITDA is shown in the graphs below:

GraphicGraphic

Amortisation and depreciation

Amortisation and depreciation decreased by 3% to R4,149 million (US$255 million). Amortisation and depreciation at the US PGM operations increased by 6% in US dollar terms to US$86 million due to more capital items being placed into service and at the SA PGM operations decreased by 3% to R1,168 million (US$72 million) due to a decrease in production. Amortisation and depreciation at the SA gold operations excluding DRDGOLD decreased by 18% to R1,488 million (US$91 million) mainly due to a 1% decrease in production and the deferral of capital expenditure from H1 2020. Amortisation and depreciation at DRDGOLD increased by 13% to R95 million (US$6 million) due to increased capital expenditure during H2 2020 at the Far West Gold Recoveries tailings retreatment operation.

Finance expense

Finance expense decreased by R289 million (US$29 million) mainly due to a decrease in interest on borrowings of R227 million (US$14 million), decrease in the unwinding of amortised cost on borrowings of R17 million (US$1 million), decrease in the unwinding of the finance costs on the deferred revenue transactions of R33 million (US$2 million),  decrease in interest on the occupational healthcare obligation of R13 million (US$1 million), decrease in the other interest of R14 million (US$1 million) and partly offset by an increase in the unwinding of the environmental rehabilitation obligation of R15 million (US$1 million). Refer to note 3 of the condensed consolidated provisional financial statements for a breakdown of finance expenses.

Sibanye-Stillwater’s outstanding gross debt at the end of H2 2020 was 23% lower at R18,383 million (US$1,251 million). The lower outstanding debt was mainly due to the settlement of the US$ convertible bond, a R2,500 million net repayment on the R5.5 billion RCF, partially offset by an increase of R1,266 million on the US$600 million RCF.

Loss on financial instruments

The net loss on financial instruments of R4,004 million (US$242 million) for H2 2020 compared with the loss of R5,480 million (US$378 million) for H2 2019, represents a period-on-period net gain of R1,476 million (US$136 million). The net loss for H2 2020 is mainly attributable to fair value losses on the US$ Convertible Bond derivative financial instrument and the revised cash flow of the Anglo deferred payment of R2,164 million (US$133 million) and R2,081 (US$128 million), respectively.

Loss on settlement of the US$ Convertible bond financial instrument

During October 2020 the US$ Convertible bond was settled through cash of R13 million and the issue of shares with a fair value of R12,573.2 million, resulting in a loss on settlement of R1,507 million (US$93 million).

Non-recurring items

Restructuring costs

Restructuring costs of R179 million (US$11 million) for H2 2020 mainly related to ill health retrenchments in light of the COVID-19 pandemic at the SA PGM and SA gold operations of R75 million (US$5 million) and R100 million (US$6 million), respectively.

Transaction costs

Transaction costs of R42 million (US$3 million) for H2 2020 mainly included legal and advisory fees of R42 million (US$3 million); platinum jewellery membership fees of R23 million (US$1 million) and legal and advisory fees related to restructuring of the Marikana legal

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2020 13


entities of R8 million (US$1 million), partially offset by a R39 million (US$2 million) reversal of the provision for legal fees related to the Stillwater Mining Company dissenting shareholders’ claim.

Mining and income tax

The Group’s current tax expense increased by 195% from R1,192 million (US$82 million) to R3,523 million (US$216 million) due to higher profitability for the period at all operations mainly as a result of higher PGM basket and gold prices.

The deferred tax credit decreased from R784 million (US$51 million) in H2 2019 to R716 million (US$43 million). The deferred tax credit in H2 2020 is mainly attributable to the recognition of previously unrecognised deferred tax assets for the Marikana operation.

The effective tax rate of 12% is lower than the South African statutory company tax rate of 28%. The lower effective tax rate is mainly attributable to the impact of utilising and recognising previously unrecognised deferred tax assets of 15% or R3,613 million (US$222 million), a lower statutory tax rate applicable to the US PGM operations impacting the Group’s effective tax rate by 1% or R312 million (US$19 million) and the non-taxable equity accounted income from associates of 1% or R340 million (US$21 million), net other non-taxable income and non-deductible expenditure of 2% or R504 million (US$31 million), partially offset by a non-deductible loss on financial instruments of 4% or R851 million (US$52 million). The Group’s effective tax rate of 40% for H2 2019 was higher than the South African statutory company tax rate of 28% mainly due to the non-deductible loss on fair value of financial instruments.

Liquidity and capital resources

Cash flow analysis

Sibanye-Stillwater defines adjusted free cash flow as net cash from operating activities, before dividends paid, net interest paid and deferred revenue advance received, less additions to property, plant and equipment.

The following table shows the adjusted free cash flow per operating segment:

Figures in million - SA rand

Six months ended

Year ended

H2 2020

H1 2020

H2 2019

FY 2020

FY 2019

US PGM operations

(2,165)

4,945

2,082

2,780

3,732

SA PGM operations

4,393

7,353

3,515

11,746

2,691

SA gold operations1

7,300

(952)

(2,629)

6,348

(5,530)

Group corporate

(535)

(425)

(369)

(960)

(575)

Adjusted free cash flow

8,993

10,921

2,599

19,914

318

1Included in the adjusted free cash flow of the SA gold segment is the Group treasury and shared services function, together referred to as gold corporate

The following table shows a reconciliation from net cash from operating activities to adjusted free cash flow:

Figures in million - SA rand

Six months ended

Year ended

H2 2020

H1 2020

H2 2019

FY 2020

FY 2019

Net cash from operating activities

12,761.7

14,387.6

8,136.8

27,149.3

9,464.0

Adjusted for:

-

Dividends paid

1,486.2

212.2

84.7

1,698.4

85.0

Net interest paid

227.1

438.7

608.2

665.8

1,334.7

Deferred revenue advance received

-

(770.6)

(1,108.0)

(770.6)

(2,859.3)

BTT early settlement payment

-

787.1

-

787.1

-

Less:

Additions to property, plant and equipment

(5,481.1)

(4,134.5)

(5,122.7)

(9,615.6)

(7,705.9)

Adjusted free cash flow

8,993.9

10,920.5

2,599.0

19,914.4

318.5

Non-IFRS measures such as adjusted free cash flow is considered as pro forma financial information as per the JSE Listing Requirements. The pro forma financial information is the responsibility of the Group’s Board of Directors and is presented for illustration purposes only, and because of its nature, adjusted free cash flow should not be considered a representation of cash from operating activities. The pro forma financial information for the years ended 31 December 2020 and 31 December 2019 have been reported on by Ernst & Young Inc. in terms of ISAE 3420 and their unmodified report is available for inspection at the Company’s registered office

After net interest paid of R227 million (US$14 million) (H2 2019: R608 million (US$41 million)), net cash from other investing activities of R408 million (US$24 million) (H2 2019: R69 million (US$1 million)) and net loans raised of R948 million (US$55 million) (H2 2019: R3,467 million (US$240 million) net loans repaid), cash at 31 December 2020 increased to R20,240 million (US$1,378 million) from R12,041 million (US$694 million) at 30 June 2020 (H2 2019: cash at 31 December 2019 decreased to R5,619 million (US$401 million) from R5,965 million (US$423 million) at 30 June 2019).

DIVIDEND DECLARATION

The Sibanye-Stillwater board of directors has declared and approved a cash dividend of 321 SA cents per ordinary share (US 22.2067 cents* per share or US 88.8268 cents* per ADR) or approximately R9,375 million (US$649 million*) in respect of the six months ended 31 December 2020 (“Final dividend”). The Board applied the solvency and liquidity test and reasonably concluded that the company will satisfy that test immediately after completing the proposed distribution.

Sibanye-Stillwater’s dividend policy is to return at least 25% to 35% of normalised earnings to shareholders. Normalised earnings is defined as earnings attributable to the owners of Sibanye-Stillwater excluding gains and losses on financial instruments and foreign exchange differences, impairments, gains and losses on disposal of property, plant and equipment, occupational healthcare expense, restructuring costs, transactions costs, share-based payment on BEE transaction, gain on acquisition, net other business development costs, share of results of equity-accounted investees, after tax, and changes in estimated deferred tax rate.

The total dividend declared of 371 cents (Final dividend: 321 SA cents and Interim dividend: 50 SA cents) equates to 35% of normalised earnings for the year ended 2020.

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2020 14


The final dividend will be subject to the Dividends Withholding Tax. In accordance with paragraphs 11.17 (a) (i) and 11.17 (c) of the JSE Listings Requirements the following additional information is disclosed:

• The dividend has been declared out of income reserves;

• The local Dividends Withholding Tax rate is 20% (twenty per centum);

• The gross local dividend amount is 321.00000 SA cents per ordinary share for shareholders exempt from the Dividends Tax;

• The net local dividend amount is 256.80000 SA cents (80% of 321 SA cents) per ordinary share for shareholders liable to pay the Dividends Withholding Tax;

• Sibanye-Stillwater currently has 2 923 570 507 ordinary shares in issue; and

• Sibanye-Stillwater’s income tax reference number is 9723 182 169.

Shareholders are advised of the following dates in respect of the final dividend:

Final dividend:321 SA cents per share

Declaration date:Thursday, 18 February 2021

Last date to trade cum dividend:Tuesday, 16 March 2021

Shares commence trading ex-dividend:Wednesday, 17 March 2021

Record date:Friday, 19 March 2021

Payment of dividend:Tuesday, 23 March 2021

Please note that share certificates may not be dematerialised or rematerialised between Wednesday, 17 March 2021 and Friday, 19 March 2021 both dates inclusive.

To holders of American Depositary Receipts (ADRs):

• Each ADR represents 4 ordinary shares;

• ADRs trade ex-dividend on the New York Stock Exchange (NYSE): Thursday, 18 March 2021;

• Record date: Friday, 19 March 2021;

• Approximate date of currency conversion: Tuesday, 23 March 2021; and

• Approximate payment date of dividend: Thursday, 1 April 2021

Assuming an exchange rate of R14.4551/US$1*, the dividend payable on an ADR is equivalent to 88.8268 United States cents for Shareholders liable to pay dividend withholding tax. However, the actual rate of payment will depend on the exchange rate on the date for currency conversion.

* Based on an exchange rate of R14.4551/US$ at 15 February 2021 from IRESS. However, the actual rate of payment will depend on the exchange rate on the date for currency conversion

Mineral resources and mineral Reserves

On 15 February 2021, Sibanye-Stillwater reported an update of its Mineral Resources and Mineral Reserves at 31 December 2020.

Increase in 4E Platinum group metals (PGM) Mineral Reserves at the SA PGM operations to 39.5Moz, primarily due to the inclusion of the Marikana K4 project (12.7Moz) and the Klipfontein opencast project (0.1Moz) following detailed feasibility studies
Increase in 2E PGM Mineral Resources by 5.8Moz, with additional Mineral Reserves of 0.8Moz defined at the East Boulder Mine replacing combined depletion of 0.7Moz during 2020.  Combined stable Mineral Reserves of 26.9Moz at the US PGM operations
Stable Mineral Reserves of 11.3Moz at the SA gold operations, with depletion of 1.0 Moz for 2020 off-set by:
oa 0.8Moz increase in attributable Mineral Reserves from DRDGOLD due to the increase in Sibanye-Stillwater’s shareholding in DRDGOLD from 38.05% to 50.10%; and
oan additional 0.2Moz Mineral Reserves derived from secondary reef exploration programs at the Driefontein operation
Mineral Resources at the SA gold operations decreased by 15.9Moz primarily due to the exclusion of Below Infrastructure Mineral Resources at Driefontein

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2020 15


change in board of directors

Due to the scheme of arrangement between Sibanye Gold Limited and Sibanye Stillwater Limited, which was implemented on 24 February 2020, there were various changes in directors to the board of Sibanye Stillwater Limited. This involved the existing directors of Sibanye Stillwater Limited resigning and the subsequent appointment of the Sibanye Gold Limited directors to the board of Sibanye Stillwater Limited. In addition, Non-independent, non-executive directors Messrs Wang Bin and Lu Jiongjie resigned on 27 March 2020. Messrs Elaine Dorward-King and Sindiswa Victoria Zilwa were appointed as independent non-executive directors on 27 March 2020 and 1 January 2021 respectively. The table below sets out the changes in directors of Sibanye Stillwater Limited for the year ended 31 December 2020.

Name

Date appointed

Date resigned

Vincent Maphai (Chairman)*

24 February 2020

Neal Froneman

24 February 2020

Charl Keyter

24 February 2020

Tim Cumming*

24 February 2020

Savannah Danson*

24 February 2020

Harry Kenyon-Slaney*

24 February 2020

Rick Menell* (lead independent director)

24 February 2020

Nkosemntu Nika*

24 February 2020

Keith Rayner*

24 February 2020

Sue van der Merwe*

24 February 2020

Jerry Vilakazi*

24 February 2020

Elaine Dorward-King*

27 March 2020

Sindiswa Zilwa*

01 January 2021

Wang Bin

24 February 2020

27 March 2020

Lu Jiongjie

24 February 2020

27 March 2020

Cheryl Van Zyl

21 May 2018

24 February 2020

Martin van der Walt

13 August 2019

24 February 2020

Pieter Henning

15 May 2019

24 February 2020

Philip van der Westhuizen

21 May 2018

24 February 2020

* Independent non-executive director

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2020 16


SALIENT FEATURES AND COST BENCHMARKS – SIX MONTHS

SA and US PGM operations

US OPERATIONS

SA OPERATIONS

Total US and SA PGM operations

Total US PGM

Total SA PGM

Rustenburg

Marikana

Kroondal

Plat Mile

Mimosa2

Attributable

Under-
ground
1

Total

Under-
ground

Surface

Under-
ground

Surface

Under-
ground

Surface

Attribu- table

Surface

Attribu- table

Production

Tonnes milled/treated

000't

Dec 2020

19,631

760

18,871

8,977

9,894

3,232

2,807

3,322

1,903

1,707

5,184

716

Jun 2020

14,272

727

13,545

6,447

7,098

2,172

2,249

2,287

1,544

1,290

3,305

698

Dec 2019

18,935

736

18,199

10,177

8,022

3,545

2,288

3,937

1,774

2,042

3,960

653

Plant head grade

g/t

Dec 2020

2.47

13.69

2.02

3.34

0.81

3.36

1.00

3.70

0.87

2.50

0.69

3.61

Jun 2020

2.68

14.01

2.07

3.33

0.93

3.42

1.05

3.69

0.85

2.40

0.88

3.59

Dec 2019

2.73

14.28

2.27

3.34

0.90

3.52

1.14

3.61

0.92

2.45

0.75

3.58

Plant recoveries

%

Dec 2020

78.58

90.92

75.11

84.62

39.62

86.92

37.57

84.98

42.48

83.39

19.67

75.11

Jun 2020

77.71

89.84

72.94

83.08

39.87

83.98

31.12

84.88

41.51

82.82

17.35

74.91

Dec 2019

77.50

91.53

73.93

83.16

30.40

82.40

29.05

85.11

32.67

82.83

9.21

75.47

Yield

g/t

Dec 2020

1.94

12.45

1.51

2.83

0.32

2.92

0.38

3.14

0.37

2.08

0.14

2.71

Jun 2020

2.08

12.59

1.51

2.77

0.37

2.87

0.33

3.13

0.35

1.99

0.15

2.69

Dec 2019

2.12

13.07

1.68

2.78

0.27

2.90

0.33

3.07

0.30

2.03

0.07

2.70

PGM production3,9

4Eoz - 2Eoz

Dec 2020

1,224,006

305,327

918,679

816,280

102,399

303,489

33,903

335,962

45,876

114,412

22,620

62,417

Jun 2020

955,568

297,740

657,828

573,445

84,383

200,556

23,626

230,101

44,536

82,435

16,221

60,353

Dec 2019

1,289,545

309,202

980,343

909,874

70,469

330,599

24,361

389,326

37,315

133,227

8,793

56,722

PGM sold

4Eoz - 2Eoz

Dec 2020

1,117,654

310,146

807,508

763,018

44,490

236,520

21,870

338,244

114,412

22,620

73,842

Jun 2020

1,052,868

283,878

768,990

731,310

37,680

267,931

21,459

339,214

82,435

16,221

41,730

Dec 2019

1,247,257

306,419

940,838

907,893

32,945

312,333

24,152

405,611

133,227

8,793

56,722

Price and costs4

Average PGM basket price5

R/4Eoz - R/2Eoz

Dec 2020

36,895

32,026

38,954

39,703

33,245

39,854

28,612

38,305

43,027

28,635

32,642

Jun 2020

32,601

30,621

33,375

33,909

29,715

34,500

23,391

32,589

36,539

28,337

28,970

Dec 2019

21,794

22,150

21,671

21,810

19,770

22,012

17,633

21,264

22,997

19,300

20,760

US$/4Eoz - US$/2Eoz

Dec 2020

2,269

1,970

2,396

2,442

2,045

2,451

1,760

2,356

2,646

1,761

2,008

Jun 2020

1,956

1,837

2,002

2,034

1,783

2,070

1,403

1,955

2,192

1,700

1,738

Dec 2019

1,484

1,508

1,475

1,485

1,346

1,498

1,200

1,448

1,565

1,314

1,413

Operating cost6

R/t

Dec 2020

1,025

5,133

853

1,773

84

1,549

208

1,560

873

47

1,167

Jun 2020

1,128

5,276

894

1,886

90

1,674

213

1,580

895

48

1,124

Dec 2019

949

4,372

806

1,416

82

1,342

238

1,265

735

28

995

US$/t

Dec 2020

63

316

52

109

5

95

13

96

54

3

72

Jun 2020

68

316

54

113

5

100

13

95

54

3

67

Dec 2019

65

298

55

96

6

91

16

86

50

2

68

R/4Eoz - R/2Eoz

Dec 2020

16,683

12,776

18,076

19,432

8,093

16,494

17,211

21,350

13,030

10,840

13,384

Jun 2020

17,108

12,883

19,214

21,132

7,548

18,126

20,295

22,039

14,010

9,703

13,005

Dec 2019

14,078

10,406

15,308

15,804

9,298

14,394

22,392

16,932

11,266

12,476

11,454

US$/4Eoz - US$/2Eoz

Dec 2020

1,026

786

1,112

1,195

498

1,014

1,058

1,313

801

667

823

Jun 2020

1,026

773

1,153

1,268

453

1,087

1,217

1,322

840

582

780

Dec 2019

958

708

1,042

1,076

633

980

1,524

1,153

767

849

780

Adjusted EBITDA margin7

%

Dec 2020

63

60

60

56

69

32

59

Jun 2020

60

42

44

36

55

32

54

Dec 2019

57

32

35

23

50

20

47

All-in sustaining cost8

R/4Eoz - R/2Eoz

Dec 2020

16,733

14,342

17,586

17,939

18,970

13,066

11,768

14,627

Jun 2020

17,664

14,429

19,277

19,655

21,041

14,132

10,314

14,124

Dec 2019

14,750

11,678

15,779

15,182

17,718

11,288

13,818

12,318

US$/4Eoz - US$/2Eoz

Dec 2020

1,029

882

1,082

1,103

1,167

804

724

900

Jun 2020

1,060

866

1,156

1,179

1,262

848

619

847

Dec 2019

1,004

795

1,074

1,033

1,206

768

941

839

All-in cost8

R/4Eoz - R/2Eoz

Dec 2020

17,689

17,917

17,608

17,939

19,019

13,066

11,768

14,627

Jun 2020

19,147

18,773

19,334

19,655

21,092

14,132

11,528

14,124

Dec 2019

15,654

15,212

15,802

15,187

17,740

11,288

14,989

12,318

US$/4Eoz - US$/2Eoz

Dec 2020

1,088

1,102

1,083

1,103

1,170

804

724

900

Jun 2020

1,149

1,126

1,160

1,179

1,265

848

692

847

Dec 2019

1,066

1,036

1,076

1,034

1,208

768

1,020

839

Capital expenditure4

Total capital

Rm

Dec 2020

3,588.8

2,205.5

1,383.3

446.5

791.7

126.4

18.5

258.6

expenditure

Jun 2020

3,026.7

2,213.4

813.3

296.1

431.3

61.4

24.5

155.3

Dec 2019

3,483.5

1,798.4

1,685.1

439.8

1,092.9

136.3

15.7

177.5

US$m

Dec 2020

220.3

135.8

84.5

27.3

48.4

7.7

1.1

15.8

Jun 2020

181.6

132.7

48.9

17.8

25.9

3.7

1.5

9.3

Dec 2019

238.1

122.2

115.9

29.9

75.6

9.3

1.1

12.1

Average exchange rates for the six months ended 31 December 2020, 30 June 2020 and 31 December 2019 were R16.26/US$, R16.67/US$ and R14.69/US$, respectively

Figures may not add as they are rounded independently

1The US PGM operations’ underground production is converted to metric tonnes and kilograms, and performance is translated into rand. In addition to the US PGM operations’ underground production, the operation treats various recycling material which is excluded from the statistics shown above
2During the six months of June 2020, sales were affected by the COVID-19 pandemic, however Mimosa continued production of PGM concentrate that resulted in a build up of concentrate stockpile. A difference arose whereby the Mimosa 4Eoz sold during the six months of June 2020 was included as equal to the produced 4Eoz in the six months ended 30 June 2020 salient feature tables. The effect of this difference resulted in sold 4Eoz for the six months of June 2020 being reported as 60,353 4Eoz compared to an actual of 41,730 4Eoz. The AISC and AIC per 4Eoz for Mimosa were reported as R10,629/4Eoz (US$638/4Eoz), compared to R14,124/4Eoz (US$847/4Eoz) due to the inventory change not adjusted in these calculations
3The Production per product – see prill split in the table below
4The total US and SA PGM operations’ unit cost benchmarks and capital expenditure exclude the financial results of Mimosa, which is equity accounted and excluded from revenue and cost of sales
5The average PGM basket price is the PGM revenue per 4E/2E ounce, prior to a purchase of concentrate adjustment

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2020 17


6Operating cost is the average cost of production and operating cost per tonne is calculated by dividing costs 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. The operating cost of Marikana operations for 2020 includes the purchase of concentrate from Rustenburg, Kroondal and Platinum Mile
7Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue
8All-in cost is calculated in accordance with the World Gold Council guidance. All-in cost 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 cost is made up of All-in sustaining cost, being the cost to sustain current operations, given as a sub-total in the All-in cost 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 cost and All-in cost, respectively, in a period by the total 4E/2E PGM produced in the same period. For a reconciliation of cost of sales before amortisation and depreciation to All-in cost, see “All-in costs – Six months”
9The Marikana PGM production includes the processing of 23,220 4Eoz, 26,915 4Eoz and 20,200 4Eoz third party concentrate purchases for the six months ended 31 December 2020, 30 June 2020 and 31December 2019, respectively

Mining - Prill split excluding recycling operations

GROUP PGM

SA OPERATIONS

US OPERATIONS

Dec 2020

Dec 2020

Jun 2020

Dec 2019

Dec 2020

Jun 2020

Dec 2019

%

%

%

%

%

%

%

Platinum

615,304

50%

546,741

60%

392,728

60%

581,222

59%

68,563

22%

66,552

22%

69,381

22%

Palladium

511,542

42%

274,778

30%

195,790

30%

295,028

30%

236,764

78%

231,188

78%

239,821

78%

Rhodium

77,365

6%

77,365

8%

54,714

8%

86,738

9%

Gold

19,795

2%

19,795

2%

14,596

2%

17,355

2%

PGM production 4E/2E

1,224,006

100%

918,679

100%

657,828

100%

980,343

100%

305,327

100%

297,740

100%

309,202

100%

Ruthenium

122,445

122,445

90,100

139,466

Iridium

30,253

30,253

22,294

35,135

Total 6E/2E

1,376,704

1,071,377

770,222

1,154,944

305,327

297,740

309,202

Recycling at US operations

Unit

Dec 2020

Jun 2020

Dec 2019

Average catalyst fed/day

Tonne

27.5

25.4

27.5

Total processed

Tonne

5,057

4,618

5,068

Tolled

Tonne

186

609

763

Purchased

Tonne

4,871

4,009

4,306

PGM fed

3Eoz

442,698

397,472

431,681

PGM sold

3Eoz

319,341

354,552

394,273

PGM tolled returned

3Eoz

36,954

63,135

78,413

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2020 18


SA gold operations

SA OPERATIONS

Total SA gold

Driefontein

Kloof

Beatrix

Cooke

DRDGOLD

Total

Under-
ground

Surface

Under-
ground

Surface

Under-
ground

Surface

Under-
ground

Surface

Under-
ground

Surface

Surface

Production

Tonnes milled/treated

000't

Dec 2020

22,569

2,478

20,091

760

-

950

2,861

768

399

-

2,498

14,333

Jun 2020

18,657

1,724

16,933

464

-

619

2,465

641

100

-

2,071

12,297

Dec 2019

21,655

2,839

18,816

732

-

985

2,616

1,086

138

36

2,079

13,983

Yield

g/t

Dec 2020

0.80

5.34

0.24

6.49

-

5.78

0.35

3.64

0.38

-

0.26

0.21

Jun 2020

0.67

5.06

0.23

6.16

-

5.76

0.36

3.60

0.24

-

0.25

0.19

Dec 2019

0.84

4.83

0.24

6.10

-

5.26

0.32

3.73

0.48

0.44

0.31

0.22

Gold produced

kg

Dec 2020

18,007

13,223

4,784

4,931

-

5,493

1,002

2,799

150

-

648

2,984

Jun 2020

12,554

8,730

3,824

2,859

-

3,564

889

2,307

24

-

524

2,387

Dec 2019

18,286

13,714

4,572

4,462

-

5,180

833

4,056

66

16

636

3,037

oz

Dec 2020

578,939

425,129

153,810

158,535

-

176,604

32,215

89,990

4,823

-

20,834

95,938

Jun 2020

403,621

280,676

122,945

91,919

-

114,585

28,582

74,172

772

-

16,847

76,744

Dec 2019

587,908

440,914

146,994

143,456

-

166,541

26,782

130,403

2,122

514

20,448

97,642

Gold sold

kg

Dec 2020

17,659

12,935

4,724

4,781

-

5,401

968

2,753

151

-

599

3,006

Jun 2020

12,477

8,616

3,861

2,773

-

3,486

897

2,357

25

-

526

2,413

Dec 2019

18,668

14,023

4,645

4,586

-

5,295

917

4,125

64

17

640

3,024

oz

Dec 2020

567,750

415,870

151,880

153,713

-

173,646

31,122

88,511

4,855

-

19,258

96,645

Jun 2020

401,144

277,010

124,134

89,154

-

112,077

28,839

75,779

804

-

16,911

77,580

Dec 2019

600,190

450,850

149,340

147,443

-

170,238

29,482

132,622

2,058

547

20,576

97,224

Price and costs

Gold price received

R/kg

Dec 2020

967,229

967,245

966,588

939,842

986,811

990,486

Jun 2020

864,679

782,221

830,208

812,133

852,471

859,345

Dec 2019

676,350

655,517

660,093

656,290

687,519

698,214

US$/oz

Dec 2020

1,850

1,850

1,849

1,798

1,888

1,895

Jun 2020

1,613

1,459

1,549

1,515

1,591

1,603

Dec 2019

1,432

1,388

1,398

1,390

1,456

1,478

Operating cost1

R/t

Dec 2020

464

3,172

130

3,549

-

3,402

182

2,514

196

-

158

112

Jun 2020

479

3,941

126

4,978

-

4,490

200

2,660

194

-

150

107

Dec 2019

455

2,658

122

3,413

-

3,134

205

1,799

115

208

157

102

US$/t

Dec 2020

29

195

8

218

-

209

11

155

12

-

10

7

Jun 2020

29

236

8

299

-

269

12

160

12

-

9

6

Dec 2019

31

181

8

232

-

213

14

122

8

14

11

7

R/kg

Dec 2020

581,113

594,434

544,293

546,988

-

588,403

519,261

689,889

520,667

-

610,802

539,444

Jun 2020

711,335

778,225

558,630

807,835

-

779,854

554,331

739,012

808,333

-

592,557

550,272

Dec 2019

538,696

550,284

503,937

559,973

-

595,946

642,857

481,632

240,909

468,750

513,050

470,695

US$/oz

Dec 2020

1,112

1,137

1,041

1,046

-

1,126

993

1,320

996

-

1,168

1,032

Jun 2020

1,327

1,452

1,042

1,507

-

1,455

1,034

1,379

1,508

-

1,106

1,027

Dec 2019

1,141

1,165

1,067

1,186

-

1,262

1,361

1,020

510

992

1,086

997

Adjusted EBITDA margin2

%

Dec 2020

36

41

39

25

(16)

45

Jun 2020

16

(2)

12

9

(40)

36

Dec 2019

16

13

8

25

(39)

31

All-in sustaining cost3

R/kg

Dec 2020

704,355

701,129

722,845

812,018

668,447

604,125

Jun 2020

800,048

939,668

823,819

822,292

653,612

605,305

Dec 2019

636,405

695,137

718,014

558,558

554,795

504,464

US$/oz

Dec 2020

1,347

1,341

1,383

1,553

1,279

1,156

Jun 2020

1,493

1,753

1,537

1,534

1,220

1,129

Dec 2019

1,347

1,472

1,520

1,183

1,175

1,068

All-in cost3

R/kg

Dec 2020

718,478

701,129

739,692

812,018

668,447

616,966

Jun 2020

809,970

939,668

834,816

822,376

653,612

608,454

Dec 2019

652,143

695,137

730,876

558,892

554,795

508,069

US$/oz

Dec 2020

1,374

1,341

1,415

1,553

1,279

1,180

Jun 2020

1,511

1,753

1,558

1,534

1,220

1,135

Dec 2019

1,381

1,472

1,548

1,183

1,175

1,076

Capital expenditure

Total capital expenditure4

Rm

Dec 2020

1,888.9

574.4

833.4

244.2

-

202.1

Jun 2020

1,107.7

354.4

436.2

170.8

-

139.0

Dec 2019

1,639.4

576.0

731.9

240.4

-

43.6

US$m

Dec 2020

115.6

35.2

50.9

15.0

-

12.3

Jun 2020

66.4

21.2

26.2

10.2

-

8.4

Dec 2019

112.7

39.7

50.2

16.5

-

3.0

Average exchange rates for the six months ended 31 December 2020, 30 June 2020 and 31 December 2019 were R16.26/US$, R16.67/US$ and R14.69/US$, respectively

Figures may not add as they are rounded independently

1Operating 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 and change in inventory in a period, by the gold produced in the same period
2Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue
3All-in cost is calculated in accordance with the World Gold Council guidance. All-in cost 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 cost is made up of All-in sustaining cost, being the cost to sustain current operations, given as a sub-total in the All-in cost 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) are calculated by dividing the All-in sustaining cost and All-in cost, respectively, in a period by the total gold sold over the same period. For a reconciliation of cost of sales before amortisation and depreciation to All-in cost, see “All-in costs – Six months”
4Corporate project expenditure for the six months ended 31 December 2020, 30 June 2020 and 31 December 2019 was R34.8 million (US$2.2 million), R7.3 million (US$0.4 million) and R47.5 million (US$3.3 million), respectively, the majority of which related to various Corporate IT projects and the Burnstone project

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2020 19


CONDENSED CONSOLIDATED PROVISIONAL FINANCIAL STATEMENTS

Condensed consolidated income statement

Figures are in millions unless otherwise stated

US dollar

SA rand

Year ended

Six months ended

Six months ended

Year ended

Unaudited
Dec 2019

Unaudited
Dec 2020

Unaudited
Dec 2019

Unaudited
Jun 2020

Unaudited
Dec 2020

Notes

Unaudited
Dec 2020

Unaudited
Jun 2020

Unaudited
Dec 2019

Reviewed
Dec 2020

Audited
Dec 2019

5,043.3

7,739.5

3,385.9

3,300.5

4,439.0

Revenue

2

72,373.7

55,018.7

49,390.5

127,392.4

72,925.4

(4,378.6)

(5,065.0)

(2,717.5)

(2,469.7)

(2,595.3)

Cost of sales

(42,199.9)

(41,168.9)

(39,727.7)

(83,368.8)

(63,314.5)

(3,879.7)

(4,603.7)

(2,424.6)

(2,263.1)

(2,340.6)

Cost of sales, before amortisation and depreciation

(38,051.1)

(37,725.3)

(35,438.3)

(75,776.4)

(56,100.4)

(498.9)

(461.3)

(292.9)

(206.6)

(254.7)

Amortisation and depreciation

(4,148.8)

(3,443.6)

(4,289.4)

(7,592.4)

(7,214.1)

664.7

2,674.5

668.4

830.8

1,843.7

30,173.8

13,849.8

9,662.8

44,023.6

9,610.9

38.8

64.7

18.6

30.2

34.5

Interest income

561.3

504.1

273.1

1,065.4

560.4

(228.4)

(191.5)

(117.7)

(102.6)

(88.9)

Finance expense

3

(1,441.3)

(1,710.5)

(1,731.2)

(3,151.8)

(3,302.5)

(25.1)

(31.1)

(13.6)

(17.8)

(13.3)

Share-based payments

(214.9)

(297.5)

(200.3)

(512.4)

(363.3)

(416.0)

(148.9)

(378.3)

93.2

(242.1)

(Loss)/gain on financial instruments

4

(4,003.9)

1,553.6

(5,479.6)

(2,450.3)

(6,015.1)

22.5

(15.5)

18.8

(58.2)

42.7

Gain/(loss) on foreign exchange differences

715.6

(970.6)

272.9

(255.0)

325.5

49.9

103.3

31.9

29.0

74.3

Share of results of equity-accounted investees after tax

10

1,216.0

483.8

465.3

1,699.8

721.0

(126.3)

(65.0)

(74.0)

(41.2)

(23.8)

Net other costs

(382.5)

(687.0)

(1,083.1)

(1,069.5)

(1,826.2)

(53.0)

(49.5)

(31.6)

(23.6)

(25.9)

- Care and maintenance

(420.8)

(393.6)

(461.6)

(814.4)

(765.9)

(6.1)

28.2

(10.3)

1.3

26.9

- Change in estimate of environmental rehabilitation obligation, and right of recovery receivable and payable

442.2

21.9

(149.2)

464.1

(88.9)

(27.8)

-

(1.4)

-

-

- Strike related costs

(0.2)

(0.4)

(27.8)

(0.6)

(402.3)

(9.0)

(2.1)

(1.2)

-

(2.1)

- Service entity costs

(34.3)

-

(18.8)

(34.3)

(129.9)

-

(5.9)

-

(3.5)

(2.4)

- Non-recurring COVID-19 costs

(39.1)

(57.9)

-

(97.0)

-

-

35.2

-

-

35.2

- Income on settlement of dispute

580.0

-

-

580.0

-

(30.4)

(70.9)

(29.5)

(15.4)

(55.5)

- Other

5

(910.3)

(257.0)

(425.6)

(1,167.3)

(439.2)

5.3

6.0

5.6

1.7

4.3

Gain on disposal of property, plant and equipment

70.1

28.7

81.5

98.8

76.6

(5.9)

7.4

0.7

-

7.4

Reversal of impairments/(impairments)

6

121.9

(0.5)

7.1

121.4

(86.0)

76.3

-

(1.4)

-

-

Gain on acquisition

-

-

-

-

1,103.0

-

(11.2)

-

(11.2)

-

Loss on Bulk Tailings re-Treatment (BTT) early settlement

16

-

(186.2)

-

(186.2)

-

(86.6)

(26.5)

(42.0)

(15.4)

(11.1)

Restructuring costs

(179.2)

(257.0)

(619.2)

(436.2)

(1,252.4)

(31.0)

(8.4)

(24.1)

(5.8)

(2.6)

Transaction costs

(42.3)

(96.3)

(350.3)

(138.6)

(447.8)

-

(91.5)

-

-

(91.5)

Loss on settlement of US$ Convertible Bond

11.1

(1,506.7)

-

-

(1,506.7)

-

2.7

(3.2)

2.7

(0.2)

(3.0)

Occupational healthcare expense

13

(48.2)

(4.1)

39.6

(52.3)

39.6

(59.1)

2,263.1

95.6

732.5

1,530.6

Profit/(loss) before royalties, carbon tax and tax

25,039.7

12,210.3

1,338.6

37,250.0

(856.3)

(29.8)

(107.2)

(21.5)

(25.5)

(81.7)

Royalties

(1,339.4)

(425.6)

(313.7)

(1,765.0)

(431.0)

(0.9)

(0.3)

(0.9)

(0.2)

(0.1)

Carbon tax

(2.5)

(2.7)

(12.9)

(5.2)

(12.9)

(89.8)

2,155.6

73.2

706.8

1,448.8

Profit/(loss) before tax

23,697.8

11,782.0

1,012.0

35,479.8

(1,300.2)

119.9

(295.1)

(30.9)

(123.0)

(172.1)

Mining and income tax

7

(2,807.1)

(2,051.1)

(408.5)

(4,858.2)

1,733.0

(127.8)

(326.5)

(81.6)

(111.0)

(215.5)

- Current tax

(3,523.2)

(1,851.1)

(1,192.4)

(5,374.3)

(1,848.7)

247.7

31.4

50.7

(12.0)

43.4

- Deferred tax

716.1

(200.0)

783.9

516.1

3,581.7

30.1

1,860.5

42.3

583.8

1,276.7

Profit for the period

20,890.7

9,730.9

603.5

30,621.6

432.8

Profit for the period attributable to:

4.5

1,780.9

22.6

563.1

1,217.8

- Owners of Sibanye-Stillwater

19,926.9

9,385.0

316.8

29,311.9

62.1

25.6

79.6

19.7

20.7

58.9

- Non-controlling interests

963.8

345.9

286.7

1,309.7

370.7

Earnings per ordinary share (cents)

-

65

1

21

44

Basic earnings per share

8.1

716

351

12

1,074

2

-

64

1

19

43

Diluted earnings per share

8.2

703

334

12

1,055

2

2,507,583

2,728,891

2,670,030

2,673,617

2,783,583

Weighted average number of shares ('000)

8.1

2,783,583

2,673,617

2,670,030

2,728,891

2,507,583

2,578,954

2,777,952

2,741,401

2,946,656

2,833,068

Diluted weighted average number of shares ('000)

8.2

2,833,068

2,946,656

2,741,401

2,777,952

2,578,954

14.46

16.46

14.69

16.67

16.26

Average R/US$ rate

The condensed consolidated provisional financial statements for the year and six months ended 31 December 2020 have been prepared by Sibanye-Stillwater’s Group financial reporting team headed by Jacques le Roux (CA (SA)). This process was supervised by the Group’s Chief Financial Officer, Charl Keyter and approved by the Sibanye-Stillwater board of directors.

A convenience translation has been applied to the primary statements into US dollar based on the average exchange rate for the period for the condensed consolidated income statement, statements of other comprehensive income and cash flows, and the period-end closing exchange rate for the statement of financial position and exchange differences on translation are accounted for in the statement of other comprehensive income. This information is provided as supplementary information only.

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2020 20


Condensed consolidated statement of other comprehensive income

Figures are in millions unless otherwise stated

US dollar

SA rand

Year ended

Six months ended

Six months ended

Year ended

Unaudited
Dec 2019

Unaudited
Dec 2020

Unaudited
Dec 2019

Unaudited
Jun 2020

Unaudited

Dec 2020

Unaudited
Dec 2020


Unaudited
Jun 2020

Unaudited
Dec 2019

Reviewed
Dec 2020

Audited
Dec 2019

30.1

1,860.5

42.3

583.8

1,276.7

Profit for the period

20,890.7

9,730.9

603.5

30,621.6

432.8

31.9

62.0

31.6

(147.2)

209.2

Other comprehensive income, net of tax

(7,299.6)

5,293.8

216.3

(2,005.8)

(465.9)

-

-

-

-

-

Foreign currency translation adjustments

(7,445.5)

5,218.8

79.6

(2,226.7)

(594.8)

8.9

13.4

9.4

4.5

8.9

Fair value adjustment on other investments1

145.9

75.0

136.7

220.9

128.9

23.0

48.6

22.2

(151.7)

200.3

Currency translation adjustments1,2

-

-

-

-

-

62.0

1,922.5

73.9

436.6

1,485.9

Total comprehensive income

13,591.1

15,024.7

819.8

28,615.8

(33.1)

Total comprehensive income attributable to:

36.4

1,841.8

53.0

415.4

1,426.4

- Owners of Sibanye-Stillwater

12,616.5

14,670.5

516.3

27,287.0

(403.1)

25.6

80.7

20.9

21.2

59.5

- Non-controlling interests

974.6

354.2

303.5

1,328.8

370.0

14.46

16.46

14.69

16.67

16.26

Average R/US$ rate

1These gains and losses relate to other investments and the convenience translation respectively and will never be reclassified to profit or loss
2The currency translation adjustments arise on the convenience translation of the SA rand amount to US dollars

Condensed consolidated statement of financial position

Figures are in millions unless otherwise stated

US dollar

SA rand

Unaudited
Dec 2019

Unaudited
Jun 2020

Unaudited

Dec 2020

Notes

Reviewed
Dec 2020


Unaudited
Jun 2020

Audited
Dec 2019

5,350.5

4,986.9

5,572.6

Non-current assets

81,860.5

86,526.0

74,908.1

4,105.7

3,799.2

4,125.3

Property, plant and equipment

60,600.0

65,916.8

57,480.2

25.8

17.5

20.1

Right-of-use assets

295.6

304.3

360.9

489.6

481.9

487.8

Goodwill

7,165.2

8,361.6

6,854.9

288.5

313.2

382.6

Equity-accounted investments

10

5,621.0

5,434.6

4,038.8

42.8

45.1

57.7

Other investments

847.0

782.9

598.7

328.7

273.5

335.9

Environmental rehabilitation obligation funds

4,934.0

4,745.6

4,602.2

48.8

39.0

55.9

Other receivables

821.3

676.0

683.5

20.6

17.5

107.3

Deferred tax assets

1,576.4

304.2

288.9

1,869.0

1,942.2

3,556.4

Current assets

52,242.6

33,696.1

26,163.7

1,107.4

969.6

1,698.6

Inventories

24,952.4

16,823.2

15,503.4

331.1

248.7

467.4

Trade and other receivables

6,865.6

4,314.2

4,635.0

3.7

2.7

2.5

Other receivables

36.8

46.5

51.2

25.4

27.2

10.1

Tax receivable

148.0

471.7

355.1

401.4

694.0

1,377.8

Cash and cash equivalents

20,239.8

12,040.5

5,619.0

7,219.5

6,929.1

9,129.0

Total assets

134,103.1

120,222.1

101,071.8

2,224.1

2,652.3

4,813.9

Total equity

70,716.0

46,021.7

31,138.3

3,972.0

3,287.9

3,124.5

Non-current liabilities

45,900.0

57,043.4

55,606.7

1,692.7

1,446.8

1,191.1

Borrowings

11

17,497.0

25,101.9

23,697.9

296.1

201.4

-

Derivative financial instrument

11.1

-

3,493.7

4,144.9

19.5

13.2

15.2

Lease liabilities

223.2

228.7

272.8

622.5

520.6

587.7

Environmental rehabilitation obligation and other provisions

12

8,633.8

9,032.3

8,714.8

81.0

60.5

70.6

Occupational healthcare obligation

13

1,037.7

1,049.5

1,133.4

95.9

83.2

108.6

Share-based payment obligations

14.2

1,595.3

1,444.3

1,343.0

192.0

133.7

198.1

Other payables

15

2,910.7

2,319.2

2,687.5

492.6

363.4

433.1

Deferred revenue

16

6,362.7

6,304.9

6,896.5

4.2

0.1

0.6

Tax and royalties payable

8.6

1.3

59.1

475.5

465.0

519.5

Deferred tax liabilities

7,631.0

8,067.6

6,656.8

1,023.4

988.9

1,190.6

Current liabilities

17,487.1

17,157.0

14,326.8

2.7

73.3

60.3

Borrowings

11

885.6

1,272.1

38.3

7.9

5.9

7.1

Lease liabilities

103.6

102.7

110.0

10.6

10.2

10.7

Occupational healthcare obligation

13

156.9

177.5

148.7

5.9

15.5

2.3

Share-based payment obligations

14.2

33.1

268.3

82.1

819.0

681.2

899.1

Trade and other payables

13,207.4

11,818.7

11,465.9

54.4

34.2

152.9

Other payables

15

2,245.9

593.6

761.4

90.8

107.2

4.6

Deferred revenue

16

66.9

1,859.5

1,270.6

32.1

61.4

53.6

Tax and royalties payable

787.7

1,064.6

449.8

7,219.5

6,929.1

9,129.0

Total equity and liabilities

134,103.1

120,222.1

101,071.8

14.00

17.35

14.69

Closing R/US$ rate

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2020 21


Condensed consolidated statement of changes in equity

Figures are in millions unless otherwise stated

US dollar

SA rand

Re-

Accum-

Non-

Non-

Accum-

Re-

Stated

organisation

Other

ulated

controlling

Total

Total

controlling

ulated

Other

organisation

Stated

capital

reserve

reserves

loss

interests

equity

Notes

equity

interests

loss

reserves

reserve

capital

-*

3,367.6

393.9

(2,107.5)

69.2

1,723.2

Balance at 31 December 2018 (Unaudited)1

24,724.4

936.0

(15,495.8)

4,617.2

34,667.0

-*

-

-

31.9

4.5

25.6

62.0

Total comprehensive income for the period

(33.1)

370.0

62.1

(465.2)

-

-

-

-

-

4.5

25.6

30.1

Profit for the period

432.8

370.7

62.1

-

-

-

-

-

31.9

-

-

31.9

Other comprehensive income, net of tax

(465.9)

(0.7)

-

(465.2)

-

-

-

-

-

-

(6.0)

(6.0)

Dividends paid

(85.0)

(85.0)

-

-

-

-

-

-

20.1

-

-

20.1

Share-based payments

290.3

-

-

290.3

-

-

-

120.2

-

-

-

120.2

Shares issued for cash

1,688.4

-

-

-

1,688.4

-

-

288.1

-

-

-

288.1

Shares issued on Lonmin acquisition

4,306.6

-

-

-

4,306.6

-

-

-

-

-

16.5

16.5

Acquisition of subsidiary with non-controlling interests

247.0

247.0

-

-

-

-

-

-

-

-

-

-

Transaction with DRDGOLD shareholders

(0.3)

(0.3)

-

-

-

-

-*

3,775.9

445.9

(2,103.0)

105.3

2,224.1

Balance at 31 December 2019 (Reviewed)1

31,138.3

1,467.7

(15,433.7)

4,442.3

40,662.0

-*

-

-

60.9

1,780.9

80.7

1,922.5

Total comprehensive income for the period

28,615.8

1,328.8

29,311.9

(2,024.9)

-

-

-

-

-

1,780.9

79.6

1,860.5

Profit for the period

30,621.6

1,309.7

29,311.9

-

-

-

-

-

60.9

-

1.1

62.0

Other comprehensive income, net of tax

(2,005.8)

19.1

-

(2,024.9)

-

-

-

-

-

(80.3)

(21.6)

(101.9)

Dividends paid

(1,698.4)

(360.3)

(1,338.1)

-

-

-

-

-

9.2

-

0.4

9.6

Share-based payments

158.0

6.3

-

151.7

-

-

1,177.4

(1,177.4)

-

-

-

-

Reorganisation - 24 February 2020

1.2

-

-

-

-

(17,660.7)

17,660.7

763.9

-

-

-

-

763.9

Shares issued upon conversion of US$ Convertible Bond

11.1

12,573.2

-

-

-

-

12,573.2

(5.1)

-

-

-

-

(5.1)

Share buy-back

(84.1)

-

-

-

-

(84.1)

-

-

-

13.5

(13.5)

-

Transaction with DRDGOLD shareholders2

-

(220.0)

220.0

-

-

-

-

-

-

-

0.8

0.8

Transaction with Lonmin Canada shareholders

13.2

13.2

-

-

-

-

1,936.2

2,598.5

516.0

(388.9)

152.1

4,813.9

Balance at 31 December 2020 (Reviewed)

70,716.0

2,235.7

12,760.1

2,569.1

23,001.3

30,149.8

1Refer note 1.2
2Effective 10 January 2020, the Group exercised its option to acquire an additional 12.05% in DRDGOLD Limited. The consideration amounted to R1,085.6 million for the subscription of 168,158,944 additional new ordinary shares resulting in a 50.1% shareholding in DRDGOLD Limited (effective 50.66% shareholding after taking account of treasury shares held by DRDGOLD Limited at 31 December 2020). The Group calculated the net asset value of DRDGOLD Limited at the effective date to which the additional ownership percentage was applied to determine the reattribution between non-controlling interest and the Group

* Less than R0.1 million and US$0.1 million

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2020 22


Condensed consolidated statement of cash flows

Figures are in millions unless otherwise stated

US dollar

SA rand

Year ended

Six months ended

Six months ended

Year ended

Unaudited
Dec 2019

Unaudited
Dec 2020

Unaudited
Dec 2019

Unaudited
Jun 2020

Unaudited
Dec 2020

Notes

Unaudited
Dec 2020

Unaudited
Jun 2020

Unaudited
Dec 2019

Reviewed
Dec 2020

Audited
Dec 2019

Cash flows from operating activities

730.7

2,745.2

662.5

958.6

1,786.6

Cash generated by operations

29,205.9

15,979.6

9,597.5

45,185.5

10,565.9

197.7

46.8

74.4

46.2

0.6

Deferred revenue advance received

16

-

770.6

1,108.0

770.6

2,859.3

-

(47.8)

-

(47.2)

(0.6)

Bulk Tailings re-Treatment transaction early settlement payment

16

-

(787.1)

-

(787.1)

-

(0.4)

-

(0.4)

(0.1)

0.1

Post-retirement healthcare payments

(0.4)

(0.9)

(5.7)

(1.3)

(6.1)

-

35.2

-

35.2

Amount received on settlement of dispute

580.0

-

-

580.0

-

(6.3)

(16.7)

(5.0)

(1.8)

(14.9)

Cash-settled share-based payments paid

14.2

(243.9)

(30.6)

(72.1)

(274.5)

(90.9)

(43.3)

(573.2)

(11.7)

58.4

(631.6)

Change in working capital

(10,408.2)

973.1

(176.6)

(9,435.1)

(625.6)

878.4

2,189.5

719.8

1,014.1

1,175.4

19,133.4

16,904.7

10,451.1

36,038.1

12,702.6

18.6

43.7

14.3

21.0

22.7

Interest received

369.5

350.1

207.8

719.6

268.4

(110.9)

(84.2)

(55.5)

(47.3)

(36.9)

Interest paid

(596.6)

(788.8)

(816.0)

(1,385.4)

(1,603.1)

(28.5)

(103.7)

(24.2)

(24.8)

(78.9)

Royalties paid

(1,293.1)

(413.5)

(349.9)

(1,706.6)

(411.5)

(97.3)

(292.7)

(87.7)

(87.1)

(205.6)

Tax paid

(3,365.3)

(1,452.7)

(1,271.5)

(4,818.0)

(1,407.4)

(5.9)

(103.2)

(5.9)

(12.7)

(90.5)

Dividends paid

(1,486.2)

(212.2)

(84.7)

(1,698.4)

(85.0)

654.4

1,649.4

560.8

863.2

786.2

Net cash from operating activities

12,761.7

14,387.6

8,136.8

27,149.3

9,464.0

��

Cash flows from investing activities

(532.9)

(584.2)

(351.0)

(248.0)

(336.2)

Additions to property, plant and equipment

(5,481.1)

(4,134.5)

(5,122.7)

(9,615.6)

(7,705.9)

7.0

6.2

5.9

1.8

4.4

Proceeds on disposal of property, plant and equipment

71.8

29.5

86.0

101.3

101.0

(8.9)

-

(3.6)

-

-

Acquisition of subsidiaries

-

-

(54.3)

-

(129.0)

207.8

-

(3.6)

-

-

Cash acquired on acquisition of subsidiaries

-

-

1.8

-

3,004.3

7.7

17.5

3.0

0.3

17.2

Dividends received

282.7

5.0

44.5

287.7

111.0

-

(0.7)

-

-

(0.7)

Additions to other investments

(12.1)

-

-

(12.1)

-

(0.9)

(3.9)

(4.2)

(0.4)

(3.5)

Contributions to environmental rehabilitation funds

(56.3)

(7.3)

(60.4)

(63.6)

(12.9)

(19.6)

(45.9)

0.4

(45.4)

(0.5)

Payment of Deferred Payment

-

(756.2)

-

(756.2)

(283.4)

(22.1)

-

(22.1)

-

-

Payments to dissenting shareholders

-

-

(319.4)

-

(319.4)

2.1

-

2.1

-

-

Proceeds with transfer of assets to joint operation

-

-

30.6

-

30.6

12.9

6.9

12.9

-

6.9

Preference shares redeemed

10

114.3

-

186.9

114.3

186.9

10.5

0.4

10.5

-

0.4

Proceeds from environmental rehabilitation funds

7.4

-

151.9

7.4

151.9

(336.4)

(603.7)

(349.7)

(291.7)

(312.0)

Net cash used in investing activities

(5,073.3)

(4,863.5)

(5,055.1)

(9,936.8)

(4,864.9)

Cash flows from financing activities

1,312.7

989.6

195.7

571.2

418.4

Loans raised

11

6,768.1

9,521.1

3,119.9

16,289.2

18,981.7

(1,522.0)

(1,113.9)

(436.0)

(750.8)

(363.1)

Loans repaid

11

(5,819.9)

(12,515.2)

(6,586.4)

(18,335.1)

(22,008.3)

(9.1)

(6.9)

(5.5)

(4.4)

(2.5)

Lease payments

(40.8)

(73.0)

(80.8)

(113.8)

(131.7)

118.9

-

-

-

-

Proceeds from share issue

-

-

-

-

1,688.4

-

(5.0)

-

-

(5.0)

Share buy-back

(84.1)

-

-

(84.1)

-

(99.5)

(136.2)

(245.8)

(184.0)

47.8

Net cash from/(used in) financing activities

823.3

(3,067.1)

(3,547.3)

(2,243.8)

(1,469.9)

218.5

909.5

(34.7)

387.5

522.0

Net increase/(decrease) in cash and cash equivalents

8,511.7

6,457.0

(465.6)

14,968.7

3,129.2

5.3

66.9

13.1

(94.9)

161.8

Effect of exchange rate fluctuations on cash held

(312.4)

(35.5)

119.9

(347.9)

(59.3)

177.6

401.4

423.0

401.4

694.0

Cash and cash equivalents at beginning of the period

12,040.5

5,619.0

5,964.7

5,619.0

2,549.1

401.4

1,377.8

401.4

694.0

1,377.8

Cash and cash equivalents at end of the period

20,239.8

12,040.5

5,619.0

20,239.8

5,619.0

14.46

16.46

14.69

16.67

16.26

Average R/US$ rate

14.00

14.69

14.00

17.35

14.69

Closing R/US$ rate

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2020 23


Notes to the condensed consolidated provisional financial statements

1.Basis of accounting and preparation

The condensed consolidated provisional financial statements are prepared in accordance with the requirements of the JSE Listings Requirements for provisional reports and the requirements of the Companies Act of South Africa. The JSE Listings Requirements require provisional reports to be prepared in accordance with framework concepts, and the measurement and recognition requirements of International Financial Reporting Standards (IFRS), and the South African Institute of Chartered Accountants Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council and to also, as a minimum, contain information required by IAS 34 Interim Financial Reporting. The accounting policies applied in the preparation of these condensed consolidated provisional financial statements are in terms of IFRS and are consistent with those applied in the previous consolidated annual financial statements.

The condensed consolidated income statement, and statements of other comprehensive income and cash flows for the six months ended 31 December 2019 were not reviewed by the Company’s auditor and were prepared by subtracting the reviewed condensed consolidated financial statements for the six months ended 30 June 2019 from the audited comprehensive consolidated financial statements for the year ended 31 December 2019. The condensed consolidated income statement, and statements of other comprehensive income and cash flows for the six months ended 31 December 2020 have not been reviewed by the Company’s auditor and were prepared by subtracting the unaudited condensed consolidated financial statements for the six months ended 30 June 2020 from the reviewed condensed consolidated provisional financial statements for the year ended 31 December 2020.

The translation of the primary statements into US dollar is based on the average exchange rate for the period for the condensed consolidated income statement, statements of other comprehensive income and cash flows, and the period-end closing exchange rate for the statement of financial position. Exchange differences on translation are accounted for in the statement of other comprehensive income. This information is provided as supplementary information only.

1.1

Standards, interpretations and amendments to published standards effective on 1 January 2020 and adopted by the Group

The amendments to published standards effective on 1 January 2020 and adopted by the Sibanye Stillwater Limited (Sibanye-Stillwater) group (the Group) did not have a material effect on the Group’s condensed consolidated provisional financial statements for the year ended 31 December 2020.

1.2

Scheme of arrangement

On 4 October 2019 Sibanye Gold Limited (SGL) and Sibanye-Stillwater, a previously dormant wholly owned subsidiary of SGL, announced the intention to implement a scheme of arrangement to reorganise SGL’s operations under a new parent company, Sibanye-Stillwater (the “Scheme”). The Scheme was implemented through the issue of Sibanye-Stillwater shares (tickers: JSE – SSW and NYSE – SBSW) in exchange for the existing shares of SGL (JSE – SGL and NYSE – SBGL).

On 23 January 2020 SGL and Sibanye-Stillwater announced that all resolutions for the approval of the Scheme, were passed by the requisite majority votes at the Scheme meeting held at the SGL Academy. The Scheme was implemented on 24 February 2020.

Sibanye-Stillwater determined that the acquisition of SGL did not represent a business combination as defined by IFRS 3 Business Combinations. This is because neither party to the Scheme could be identified as an accounting acquirer in the transaction, and post the implementation there would be no change of economic substance or ownership in the SGL Group.

The SGL shareholders have the same commercial and economic interest as they had prior to the implementation of the Scheme and no additional new ordinary shares of SGL were issued as part of the Scheme. Following the implementation of the Scheme, the condensed consolidated financial statements of Sibanye-Stillwater therefore reflects that the arrangement is in substance a continuation of the existing SGL Group. SGL is the predecessor of Sibanye-Stillwater for financial reporting purposes and following the implementation of the Scheme, Sibanye-Stillwater's condensed consolidated comparative information is presented as if the reorganisation had occurred before the start of the earliest period presented.

In order to effect the reorganisation in the Group at the earliest period presented in these condensed consolidated financial statements, a reorganisation reserve was recognised at 31 December 2018 to adjust the previously stated share capital of SGL of R34,667 million to reflect the stated share capital of Sibanye-Stillwater of R1 at that date. The reorganisation reserve was adjusted for previously recognised movements in the stated share capital of SGL between 31 December 2018 and 24 February 2020. The issue of shares at the effective date of the Scheme, was recorded at an amount equal to the net asset value of the unconsolidated SGL company at that date, with the difference recognised as a reorganisation reserve.

Since the condensed consolidated financial statements of Sibanye-Stillwater are in substance a continuation of the existing SGL Group, the shares used in calculating the weighted average number of issued shares (refer note 8) is based on the issued stated share capital of the listed entity at that stage.

As a result of the above, earnings per share measures are based on SGL's issued shares for comparative periods. For purposes of Sibanye-Stillwater's earnings per share measures for the year ended 31 December 2020, shares issued as part of the Scheme were treated as issued from the beginning of the current reporting period so as to reflect the unchanged continuation of the Group. No weighting was required as there were no changes in the issued share capital of SGL from the beginning of the current period up to the effective date of the Scheme. Shares issued after the implementation of the Scheme were time-weighted as appropriate.

Although the Scheme was retrospectively implemented for accounting purposes, the roll forward below shows the movement of the legally issued shares of Sibanye-Stillwater and SGL for the periods indicated.

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2020 24


Six months ended

Year ended

Figures in thousand

Sibanye-Stillwater

SGL

Sibanye-Stillwater

SGL

Unaudited
Dec 2020

Unaudited
Jun 2020

Unaudited
Dec 2019

Reviewed
Dec 2020

Audited

Dec 2019

Authorised number of shares

10,000,000

10,000,000

10,000,000

10,000,000

10,000,000

Reconciliation of issued number of shares:

Number of shares in issue at beginning of the period1

2,676,002

-*

2,670,030

-*

2,266,261

Scheme implemented2

-

2,670,030

-

2,670,030

Shares issued under Sibanye-Stillwater / SGL Share Plan3

960

5,972

-

6,932

4,442

Issued upon conversion of US$ Convertible Bond4

248,040

-

-

248,040

-

Shares issued for cash

-

-

-

-

108,932

Shares issued with acquisition of subsidiary

-

-

-

-

290,395

Shares delisted (share buy-back)5

(1,431)

-

-

(1,431)

-

Number of shares in issue at end of the period

2,923,571

2,676,002

2,670,030

2,923,571

2,670,030

1Since the Scheme was retrospectively implemented, the stated share capital presented in the condensed consolidated statement of changes in equity reflects the legally issued shares of Sibanye-Stillwater from the earliest period presented, being one ordinary share at 31 December 2018 and 31 December 2019
2From 1 January 2020 to 23 February 2020, shares of the listed entity presented for the Group were those of SGL. From 24 February 2020, these were exchanged for shares of Sibanye-Stillwater retrospectively presented for the Group in the condensed consolidated statement of changes in equity. The Scheme was implemented on a share-for-share basis with no change in the total number of issued listed shares
3Upon implementation of the Scheme, the SGL equity-settled share plan was transferred to Sibanye-Stillwater and is settled in Sibanye-Stillwater shares from the effective date onwards
4Refer note 11.1
5The Group entered into a repurchase and cancellation of shares agreement with certain shareholders which resulted in the total issued shares of the Sibanye-Stillwater decreasing by 1,431,197 shares

* Less than one thousand

Retrospective roll forward of stated share capital and reorganisation reserve:

SGL Group

Scheme impact

Reorgani-

sation

reserve

Sibanye-Stillwater Group

Amount
(million)

Shares (thousand)

Amount (million)

Amount (million)

Amount (million)

Shares (thousand)

Balance at 31 December 2018

34,667.0

2,266,261

(34,667.0)

34,667.0

-*

-*

Shares issued for cash

1,688.4

108,932

(1,688.4)

1,688.4

-

-

Shares issued on Lonmin acquisition

4,306.6

290,395

(4,306.6)

4,306.6

-

-

Shares issued under SGL Share Plan

-

4,442

-

-

-

-

Balance at 31 December 2019

40,662.0

2,670,030

(40,662.0)

40,662.0

-*

-*

Scheme implemented1

(17,660.7)

17,660.7

2,670,030

Shares issued under Sibanye-Stillwater share plan

-

-

6,932

Issued upon conversion of US$ Convertible Bond

-

12,573.2

248,040

Shares delisted (share buy-back)

-

(84.1)

(1,431)

Balance at 31 December 2020

23,001.3

30,149.8

2,923,571

1The stated share capital value of Sibanye-Stillwater on Scheme implementation amounts to the net asset value of the unconsolidated SGL company on the effective date of the Scheme. The reorganisation reserve is the balance between the previously presented stated share capital and the revised Sibanye-Stillwater stated share capital value. There was no change in the issued share capital of the SGL Group from 31 December 2019 to the effective date of the Scheme

* Less than R0.1 million or one thousand shares as indicated

2.Revenue

The Group’s sources of revenue are:

Figures in million - SA rand

Six months ended

Year ended

Unaudited
Dec 2020

Unaudited
Jun 2020

Unaudited
Dec 2019

Reviewed
Dec 2020

Audited
Dec 2019

Gold mining activities

17,080.2

10,788.6

12,625.9

27,868.8

18,644.2

PGM mining activities1

42,594.9

29,874.4

27,556.5

72,469.3

38,418.4

Recycling activities

11,587.0

13,709.5

8,412.2

25,296.5

14,521.2

Stream1

240.7

297.8

269.4

538.5

540.4

Total revenue from contracts with customers

71,502.8

54,670.3

48,864.0

126,173.1

72,124.2

Adjustments relating to sales of PGM concentrate2

870.9

348.4

526.5

1,219.3

801.2

Total revenue

72,373.7

55,018.7

49,390.5

127,392.4

72,925.4

1

The difference between revenue from PGM mining activities above and total revenue from PGM mining activities per the segment report relates to the separate disclosure of revenue from the gold and palladium streaming arrangement with Wheaton Precious Metals International (Wheaton International)(Wheaton Stream) in the above as well as the separate disclosure of revenue related to adjustments on the sales of PGM concentrate. Revenue relating to the Wheaton Stream is incorporated in the Group corporate segment as described in the segment report (refer note 21)

2

These adjustments relate to provisional pricing arrangements resulting in subsequent changes to the amount of revenue recognised

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2020 25


Revenue per geographical region of the relevant operations:

Figures in million - SA rand

Six months ended

Year ended

Unaudited
Dec 2020

Unaudited
Jun 2020

Unaudited
Dec 2019

Reviewed
Dec 2020

Audited
Dec 2019

Southern Africa

50,557.6

32,223.8

33,965.3

82,781.4

46,222.6

United States

21,816.1

22,794.9

15,425.2

44,611.0

26,702.8

Total revenue

72,373.7

55,018.7

49,390.5

127,392.4

72,925.4

Percentage of revenue per segment based on the geographical location of customers purchasing from the Group:

Six months ended

Year ended

Unaudited

Dec 2020

Unaudited

Jun 2020

Unaudited

Dec 2019

Reviewed

Dec 2020

Audited

Dec 2019

Gold

Graphic

Graphic

Graphic

Graphic

Graphic

PGM

Graphic

Graphic

Graphic

Graphic

Graphic

Revenue generated per product:

Figures in million - SA rand

Six months ended

Year ended

Unaudited
Dec 2020

Unaudited
Jun 2020

Unaudited
Dec 2019

Reviewed
Dec 2020

Audited
Dec 2019

Gold

17,676.9

11,252.9

13,037.8

28,929.8

18,882.1

PGMs

52,943.9

42,628.6

34,675.2

95,572.5

51,504.9

Platinum

9,131.0

7,922.9

9,216.1

17,053.9

13,013.2

Palladium

24,398.8

22,882.1

17,869.6

47,280.9

28,031.0

Rhodium

18,621.8

11,243.3

6,801.3

29,865.1

9,338.1

Iridium

518.3

296.2

458.0

814.5

649.6

Ruthenium

274.0

284.1

330.2

558.1

473.0

Chrome

904.1

668.6

965.6

1,572.7

1,749.3

Other1

848.8

468.6

711.9

1,317.4

789.1

Total revenue

72,373.7

55,018.7

49,390.5

127,392.4

72,925.4

1

Other primarily includes revenue from nickel, silver, cobalt and copper sales

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2020 26


3.Finance expense

Figures in million - SA rand

Six months ended

Year ended

Notes

Unaudited
Dec 2020


Unaudited
Jun 2020

Unaudited
Dec 2019

Reviewed
Dec 2020

Audited
Dec 2019

Interest charge on:

Borrowings - interest

(541.7)

(748.2)

(768.4)

(1,289.9)

(1,444.9)

- US$600 million revolving credit facility (RCF)

(72.5)

(159.4)

(212.0)

(231.9)

(235.1)

- R6.0 billion RCF and R5.5 billion RCF (Rand Facilities)

(55.6)

(144.6)

(166.8)

(200.2)

(434.6)

- 2022 and 2025 Notes

(379.1)

(384.5)

(336.3)

(763.6)

(670.1)

- US$ Convertible Bond

11.1

(34.5)

(59.7)

(53.3)

(94.2)

(105.1)

Borrowings - unwinding of amortised cost

11

(174.2)

(219.0)

(191.1)

(393.2)

(374.4)

- 2022 and 2025 Notes

(29.6)

(29.0)

(24.9)

(58.6)

(47.9)

- US$ Convertible Bond

11.1

(69.3)

(117.5)

(101.3)

(186.8)

(196.8)

- Burnstone Debt

(75.3)

(72.5)

(57.5)

(147.8)

(120.1)

- Other

-

-

(7.4)

-

(9.6)

Lease liabilities

(17.0)

(16.9)

(19.8)

(33.9)

(33.9)

Environmental rehabilitation obligation

12

(336.7)

(347.1)

(322.6)

(683.8)

(578.7)

Occupational healthcare obligation

13

(45.2)

(51.1)

(58.2)

(96.3)

(115.5)

Deferred Payment (related to the Rustenburg operations acquisition)

15

(93.4)

(93.4)

(89.5)

(186.8)

(179.0)

Dissenting shareholders

-

-

(10.7)

-

(21.2)

Deferred revenue1,2

16

(169.6)

(179.6)

(202.9)

(349.2)

(352.3)

Other

(63.5)

(55.2)

(68.0)

(118.7)

(202.6)

Total finance expense

(1,441.3)

(1,710.5)

(1,731.2)

(3,151.8)

(3,302.5)

1

For the six months and twelve months ended 31 December 2020, finance expense includes R163.2 million and R322.1 million non-cash interest relating to the Wheaton Stream, respectively, (R158.9 million and R162.0 million for the six months ended 30 June 2020 and 31 December 2019, respectively and R310.8 million for the twelve months ended 31 December 2019). Although there is no cash financing cost related to this arrangement, IFRS 15 Revenue from Contracts with Customers (IFRS 15) requires the Group to recognise a notional financing charge due to the significant time delay between receiving the upfront streaming payment and satisfying the related metal credit deliveries. A discount rate of 4.6% and 5.2% was used for the Wheaton palladium and gold stream respectively

2    For the six months and twelve months ended 31 December 2020, finance expense includes R6.4 million and R14.5 million, respectively (six months ended 30 June 2020: R8.1 million) non-cash interest relating to the Western Platinum Proprietary Limited (WPL) platinum forward sale entered into on 3 March 2020. For the six months ended 30 June 2020, finance expense includes R12.6 million non-cash interest relating to the Marikana operation’s streaming transaction on its BTT project which was early settled during the first six months of 2020 (R41.0 million for the six months ended 31 December 2019)

4.(Loss)/gain on financial instruments

Figures in million - SA rand

Six months ended

Year ended

Notes

Unaudited
Dec 2020


Unaudited
Jun 2020

Unaudited
Dec 2019

Reviewed
Dec 2020

Audited
Dec 2019

Fair value loss on gold hedge contracts1

(1.1)

(456.5)

(107.3)

(457.6)

(110.1)

Fair value (loss)/gain on palladium hedge contract2

(2.9)

39.0

-

36.1

-

Fair value (loss)/gain on derivative financial instrument

11.1

(2,164.4)

2,094.2

(3,358.8)

(70.2)

(3,911.5)

Fair value loss on share-based payment obligations

14.2

(37.0)

(91.6)

(1,207.9)

(128.6)

(1,217.9)

Loss on the revised cash flow of the Deferred Payment

15

(2,081.1)

-

(724.1)

(2,081.1)

(724.1)

Gain/(loss) on the revised cash flow of the Burnstone Debt

11

264.3

-

(96.6)

264.3

(96.6)

Other

18.3

(31.5)

15.1

(13.2)

45.1

Total (loss)/gain on financial instruments

(4,003.9)

1,553.6

(5,479.6)

(2,450.3)

(6,015.1)

1

On 9 March 2020, Sibanye-Stillwater concluded a gold hedge agreement which commenced on 1 April 2020, comprising the delivery of 1,800 kilograms of gold (150 kilograms per month) with a zero cost collar which establishes a minimum floor of R800,000 per kilogram and a maximum cap of R1,080,000 per kilogram. For the twelve months ended 31 December 2020, there was a realised loss of R525.9 million (2019: R284.6 million) and unrealised gain of R68.3 million (2019: R174.5 million). For the six months ended 31 December 2020, there was a realised loss of R1.8 million (six months ended 30 June 2020: R524.1 million and 31 December 2019: R206.8 million) and unrealised gain of R0.7 million (six months ended 30 June 2020: R67.6 million and 31 December 2019: R21.2 million). As hedge accounting is not applied, resulting gains or losses are accounted for as gains or losses on financial instruments in profit or loss

2

On 17 January 2020, Stillwater Mining Company (wholly owned subsidiary of Sibanye-Stillwater) concluded a palladium hedge agreement which commenced on 28 February 2020, comprising the delivery of 240,000 ounces of palladium over two years (10,000 ounces per month) with a zero cost collar which establishes a minimum and a maximum cap of US$1,500 and US$3,400 per ounce, respectively. For the twelve months ended 31 December 2020, the unrealised gain was R36.1 million. For the six months ended 31 December 2020, the unrealised loss was R2.9 million (six months ended 30 June 2020: unrealised gain of R39 million). As hedge accounting is not applied, resulting gains or losses are accounted for as gains or losses on financial instruments in profit or loss

5.Other net other cost

Figures in million - SA rand

Six months ended

Year ended

Unaudited
Dec 2020

Unaudited
June 2020

Unaudited
Dec 2019

Reviewed
Dec 2020

Audited
Dec 2019

Corporate and social investment costs

(165.1)

(92.7)

(82.4)

(257.8)

(149.9)

Loss due to dilution of interest in joint operation

(30.2)

-

-

(30.2)

-

Cost incurred on employee and community trusts

(442.8)

(65.0)

(50.3)

(507.8)

(50.3)

Exploration costs

(18.8)

(14.2)

(8.3)

(33.0)

(10.7)

Other

(253.4)

(85.1)

(284.6)

(338.5)

(228.3)

Total other net other costs

(910.3)

(257.0)

(425.6)

(1,167.3)

(439.2)

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2020 27


6.Reversal of impairments/(impairments)

Figures in million - SA rand

Six months ended

Year ended

Notes

Unaudited
Dec 2020

Unaudited
June 2020

Unaudited
Dec 2019

Reviewed
Dec 2020

Audited
Dec 2019

Impairment of property, plant and equipment

-

(0.5)

61.4

(0.5)

(5.1)

Impairment of goodwill

-

-

(54.3)

-

(54.3)

Reversal of impairment/(Impairment) of equity-accounted investee1

10

119.6

-

-

119.6

(12.3)

Other reversal of impairment

2.3

-

-

2.3

-

Impairment of loan to equity-accounted investee

10

-

-

-

-

(14.3)

Total reversal of impairments/(impairments)

121.9

(0.5)

7.1

121.4

(86.0)

1

Historical impairment of R119.6 million on Rand Refinery Proprietary Limited (Rand Refinery) was reversed at 31 December 2020 due to improvement in financial position of Rand Refinery and forecasted return to stable dividend payments

The annual life-of-mine plan, used in the annual impairment assessment, takes into account the following:

Proved and probable ore reserves of the cash-generating units;
Resources valued using appropriate price assumptions;
Cash flows based on the life-of-mine plan; and
Capital expenditure estimates over the life-of-mine plan.

The Group’s estimates and assumptions used in the 31 December 2020 calculation include:

PGM operations

Gold operations

Audited
Dec 2019

Reviewed
Dec 2020

Reviewed
Dec 2020

Audited
Dec 2019

Long-term gold price

R/kg

733,037

686,225

20,600

23,278

R/4Eoz

Long-term PGM (4E) basket price

1,250

1,202

US$/2Eoz

Long-term PGM (2E) basket price

13.6

18.8 - 19.7

%

Nominal discount rate – South Africa1

%

9.66 - 13.58

12.4

7.6

8.8

%

Nominal discount rate – United States

5.0

6

%

Inflation rate – South Africa

%

6

5.0

2.0

2

%

Inflation rate – United States

13 - 35

12 - 39

years

Life of mine

years

3 - 13

6 - 18

1

Nominal discount rate for the Burnstone project is 16.8% (2019: 17.1%)and for the equity accounted joint venture Mimosa, 28.4% (2019: 23.3%)

7.Mining and income tax

Figures in million - SA rand

Six months ended

Year ended

Unaudited
Dec 2020

Unaudited
June 2020

Unaudited
Dec 2019

Reviewed
Dec 2020

Audited
Dec 2019

Tax on (profit)/loss before tax at maximum South African statutory company tax rate (28%)

(6,635.3)

(3,299.0)

(286.3)

(9,934.3)

364.1

South African gold mining tax formula rate adjustment

164.6

(46.9)

68.8

117.7

(192.6)

US statutory tax rate adjustment

311.8

238.5

138.4

550.3

205.4

Non-deductible amortisation and depreciation

(8.3)

(6.1)

(14.7)

(14.4)

(14.7)

Non-taxable dividend received

19.5

1.5

2.1

21.0

2.1

Non-deductible finance expense

101.8

(12.4)

(60.6)

89.4

(86.3)

Non-deductible share-based payments

(24.4)

(19.8)

(41.9)

(44.2)

(81.3)

Non-deductible loss on fair value of financial instruments

(850.8)

(39.5)

(543.2)

(890.3)

(571.1)

(Non-deductible loss)/non-taxable gain on foreign exchange differences

(14.6)

17.7

1.2

3.1

-

Non-taxable share of results of equity-accounted investees

340.4

135.5

130.3

475.9

201.9

Non-taxable reversal of impairments/(Non-deductible impairments)

33.5

-

2.3

33.5

(21.9)

Non-taxable gain on acquisition

-

-

2.9

-

308.8

Non-deductible transaction costs

(19.4)

(30.1)

(67.5)

(49.5)

(94.4)

Tax adjustment in respect of prior periods

25.4

107.7

12.4

133.1

12.4

Net other non-taxable income and non-deductible expenditure

135.6

122.1

461.8

257.7

533.5

Change in estimated deferred tax rate

0.5

(54.5)

7.0

(54.0)

1,551.0

Previously unrecognised deferred tax assets utilised/(not recognised)1

3,612.6

834.2

(221.5)

4,446.8

(383.9)

Mining and income tax

(2,807.1)

(2,051.1)

(408.5)

(4,858.2)

1,733.0

Effective mining and income tax rate

12%

17%

40%

14%

133%

1

Historically, deferred tax assets in WPL and Eastern Platinum Limited (EPL) were only recognised to the extent of deferred tax liabilities since it was not considered probable that taxable profit would be available against which the future tax deductions could be utilised. At 31 December 2020, management recognised deferred tax assets on WPL and EPL in excess of deferred tax liabilities for the first time since it became probable that sufficient future taxable profits will be available. In total, net deferred tax assets of R951.0 million was recognised at 31 December 2020. The deferred tax asset recognition is supported by the profit history of WPL and EPL and a positive future outlook

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2020 28


8.Earnings per share

8.1

Basic earnings per share

Six months ended

Year ended

Unaudited
Dec 2020

Unaudited

June 2020

Unaudited
Dec 2019

Reviewed
Dec 2020

Audited
Dec 2019

Ordinary shares in issue (’000)

2,923,571

2,676,002

2,670,030

2,923,571

2,670,030

Adjustment for weighting of ordinary shares in issue (’000)

(139,988)

(2,385)

-

(194,680)

(162,447)

Adjusted weighted average number of shares (’000)

2,783,583

2,673,617

2,670,030

2,728,891

2,507,583

Profit attributable to owners of Sibanye-Stillwater (SA rand million)

19,926.9

9,385.0

316.8

29,311.9

62.1

Basic earnings per share (EPS) (cents)

716

351

12

1,074

2

8.2

Diluted earnings per share

Potential ordinary shares arising from the equity-settled share-based payment scheme resulted in a dilution for the six month periods ended 31 December 2020, 30 June 2020 and 31 December 2019. The assumed conversion of the US$ Convertible Bond was dilutive for the six month period ended 30 June 2020 and antidilutive for the six month periods ended 31 December 2019. The US$ Convertible Bond was converted during October 2020 (refer note 11.1) and was antidilutive for the six months and year ended 31 December 2020.

Figures in million - SA rand

Six months ended

Year ended

Unaudited
Dec 2020

Unaudited
June 2020

Unaudited
Dec 2019

Reviewed
Dec 2020

Audited
Dec 2019

Diluted earnings

Profit attributable to owners of Sibanye-Stillwater (SA rand million)

19,926.9

9,385.0

316.8

29,311.9

62.1

Adjusted for impact of US$ Convertible Bond:

-

457.2

-

-

-

- Interest charge and unwinding of amortised cost

-

177.1

-

-

-

- Gain on fair value adjustment

-

(2,094.2)

-

-

-

- Loss on foreign exchange

-

2,547.6

-

-

-

- Tax effect

-

(173.3)

-

-

-

Diluted earnings

19,926.9

9,842.2

316.8

29,311.9

62.1

Six months ended

Year ended

Unaudited
Dec 2020

Unaudited
June 2020

Unaudited
Dec 2019

Reviewed
Dec 2020

Audited
Dec 2019

Weighted average number of shares

Adjusted weighted average number of shares (’000)

2,783,583

2,673,617

2,670,030

2,728,891

2,507,583

Potential ordinary shares - equity-settled share plan (’000)

49,485

27,342

71,371

49,061

71,371

Potential ordinary shares - US$ Convertible Bond (’000)

-

245,697

-

-

-

Diluted weighted average number of shares (’000)

2,833,068

2,946,656

2,741,401

2,777,952

2,578,954

Diluted earnings per share (DEPS) (cents)

703

334

12

1,055

2

8.3

Headline earnings per share

Figures in million - SA rand

Six months ended

Year ended

Unaudited
Dec 2020

Unaudited
June 2020

Unaudited
Dec 2019

Reviewed
Dec 2020

Audited
Dec 2019

Profit attributable to owners of Sibanye-Stillwater

19,926.9

9,385.0

316.8

29,311.9

62.1

Gain on disposal of property, plant and equipment

(70.1)

(28.7)

(81.5)

(98.8)

(76.6)

(Reversal of impairments)/Impairments

(121.9)

0.5

(7.1)

(121.4)

86.0

Derecognition of property, plant and equipment in Marathon project

37.0

-

-

37.0

-

Impairment of equity accounted associate

-

-

21.0

-

21.0

Gain on acquisition

-

-

-

-

(1,103.0)

Taxation effect of remeasurement items

13.0

2.7

2.5

15.7

(0.7)

Re-measurement items, attributable to non-controlling interest

0.2

0.9

3.2

1.1

3.0

Headline earnings

19,785.1

9,360.4

254.9

29,145.5

(1,008.2)

Headline EPS (cents)

711

350

10

1,068

(40)

8.4

Diluted headline earnings per share

Figures in million - SA rand

Six months ended

Year ended

Unaudited
Dec 2020

Unaudited

June 2020

Unaudited
Dec 2019

Reviewed
Dec 2020

Audited
Dec 2019

Headline earnings

19,785.1

9,360.4

254.9

29,145.5

(1,008.2)

Adjusted for impact of US$ Convertible Bond:

-

457.2

-

-

-

- Interest charge and unwinding of amortised cost

-

177.1

-

-

-

- Gain on fair value adjustment

-

(2,094.2)

-

-

-

- Loss on foreign exchange

-

2,547.6

-

-

-

- Tax effect

-

(173.3)

-

-

-

Diluted headline earnings

19,785.1

9,817.6

254.9

29,145.5

(1,008.2)

Diluted headline EPS (cents)

698

333

9

1,049

(40)

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2020 29


9.Dividends

Dividend policy

The Group’s dividend policy is to return at least 25% to 35% of normalised earnings to shareholders and after due consideration of future requirements the dividend may be increased beyond these levels. The Board, therefore, considers normalised earnings in determining what value will be distributed to shareholders. The Board believes normalised earnings provides useful information to investors regarding the extent to which results of operations may affect shareholder returns. Normalised earnings is defined as earnings attributable to the owners of Sibanye-Stillwater excluding gains and losses on financial instruments and foreign exchange differences, impairments, gains and losses on disposal of property, plant and equipment, occupational healthcare expense, restructuring costs, transactions costs, share-based payment on BEE transaction, gain on acquisition, net other business development costs, share of results of equity-accounted investees, after tax, and changes in estimated deferred tax rate.

In line with Sibanye-Stillwater’s strategic priority of deleveraging and the commitment to shareholder returns, the Board of Directors resolved to pay a final dividend of 321 SA cents per share. Together with the interim dividend of 50 SA cents per share, which was declared and paid, this brings the total dividend for the year ended 31 December 2020 to 371 SA cents per share and this amounts to a payout of 35% of normalised earnings.  

Figures in million - SA rand

Six months ended

Year ended

Unaudited
Dec 2020

Unaudited
June 2020

Unaudited
Dec 2019

Reviewed
Dec 2020

Audited
Dec 2019

Profit attributable to the owners of Sibanye-Stillwater

19,926.9

9,385.0

316.8

29,311.9

62.1

Adjusted for:

Loss/(gain) on financial instruments

4,003.9

(1,553.6)

5,479.6

2,450.3

6,015.1

(Gain)/loss on foreign exchange differences

(715.6)

970.6

(272.9)

255.0

(325.5)

Gain on disposal of property, plant and equipment

(70.1)

(28.7)

(81.5)

(98.8)

(76.6)

(Reversal of impairments)/impairments

(121.9)

0.5

(7.1)

(121.4)

86.0

Gain on acquisition

-

-

-

-

(1,103.0)

Restructuring costs1

179.2

257.0

619.2

436.2

1,252.4

Transaction costs

42.3

96.3

350.3

138.6

447.8

Occupational healthcare expense

48.2

4.1

(39.6)

52.3

(39.6)

Loss on BTT early settlement

-

186.2

-

186.2

-

Income on settlement of legal dispute2

(580.0)

-

-

(580.0)

-

Loss due to dilution of interest in joint operation

30.2

-

-

30.2

-

Loss on settlement of US$ Convertible Bond

1,506.7

-

-

1,506.7

-

Other

-

-

(30.1)

-

-

Change in estimated deferred tax rate

(0.5)

54.5

(7.0)

54.0

(1,551.0)

Share of results of equity-accounted investees after tax

(1,216.0)

(483.8)

(465.3)

(1,699.8)

(721.0)

Tax effect of the items adjusted above

(1,233.6)

(43.7)

(1,348.5)

(1,277.3)

(1,643.8)

NCI effect of the items listed above

(37.6)

0.7

(42.7)

(36.9)

(42.7)

Normalised earnings3

21,762.1

8,845.1

4,471.2

30,607.2

2,360.2

1

Restructuring costs of R25.5 million and R271.3 million were incurred at the Marikana operations for the six months and twelve months ended 31 December 2020, respectively (R245.8 million for the six months ended 30 June 2020, R619 million for the six months ended 31 December 2019 and R865.8 million for the twelve months ended 31 December 2019)

2 The income of R580.0 million relates to the settlement of a legal dispute concerning a historical transaction

3 Normalised earnings is a pro forma performance measure and is not a measure of performance under IFRS, may not be comparable to similarly titled measures of other companies, and should not be considered in isolation or as alternatives to profit before tax, profit for the year, cash from operating activities or any other measure of financial performance presented in accordance with IFRS. This measure constitutes pro forma financial information in terms of the JSE Listings Requirements and is the responsibility of the Board

10.Equity-accounted investments

The Group holds the following equity-accounted investments:

Figures in million - SA rand

Six months ended

Year ended

Note

Unaudited
Dec 2020

Unaudited
Jun 2020

Unaudited
Dec 2019

Reviewed
Dec 2020

Audited
Dec 2019

Balance at beginning of the period

5,434.6

4,038.8

3,840.8

4,038.8

3,733.9

Share of results of equity-accounted investees after tax

1,216.0

483.8

465.3

1,699.8

721.0

- Mimosa Investments Limited (Mimosa)

1,001.5

298.2

269.1

1,299.7

377.1

- Rand Refinery

214.5

185.6

196.2

400.1

344.5

- Other

-

-

-

-

(0.6)

Dividend received from equity accounted investments

(214.4)

-

(44.5)

(214.4)

(111.0)

Preference shares redeemed

(114.3)

-

(186.9)

(114.3)

(186.9)

Impairment of investment in Living Gold Proprietary Limited (Living Gold)

6

-

-

-

-

(12.3)

Reversal of impairment on Rand Refinery

6

119.6

-

-

119.6

-

Impairment of loan to Living Gold

6

-

-

-

-

(14.3)

Foreign currency translation

(820.5)

912.0

(35.9)

91.5

(91.6)

Balance at end of the period

5,621.0

5,434.6

4,038.8

5,621.0

4,038.8

Equity accounted investments consist of:

- Mimosa

3,928.6

3,669.6

2,687.7

3,928.6

2,687.7

- Rand Refinery

691.1

582.6

396.9

691.1

396.9

- Peregrine Metals Ltd

1,001.1

1,182.4

954.1

1,001.1

954.1

- Other equity-accounted investments

0.2

-

0.1

0.2

0.1

Equity-accounted investments

5,621.0

5,434.6

4,038.8

5,621.0

4,038.8

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2020 30


11.Borrowings

Figures in million - SA rand

Six months ended

Year ended

Notes

Unaudited
Dec 2020

Unaudited
June 2020

Unaudited
Dec 2019

Reviewed
Dec 2020

Audited
Dec 2019

Balance at beginning of the period

26,374.0

23,736.2

27,087.2

23,736.2

24,504.7

Borrowings acquired on acquisition of subsidiary

-

-

-

-

2,574.8

Loans raised

6,768.1

9,521.1

3,119.9

16,289.2

18,981.7

- US$600 million RCF1

4,213.9

3,004.2

576.0

7,218.1

9,067.1

- R6.0 billion RCF2

-

-

630.0

-

1,150.0

- R5.5 billion RCF2

-

5,000.0

500.0

5,000.0

500.0

- Other borrowings3

2,554.2

1,516.9

1,413.9

4,071.1

8,264.6

Loans repaid

(5,819.9)

(12,515.2)

(6,586.4)

(18,335.1)

(22,008.3)

- US$600 million RCF

(1,410.6)

(5,391.6)

(1,154.6)

(6,802.2)

(5,826.2)

- R6.0 billion RCF

-

-

(1,676.4)

-

(5,046.4)

- R5.5 billion RCF

(2,000.0)

(5,500.0)

-

(7,500.0)

-

- US$ Convertible Bond settled in cash

11.1

(13.2)

-

-

(13.2)

-

- Other borrowings3

(2,396.1)

(1,623.6)

(3,755.4)

(4,019.7)

(11,135.7)

US$ Convertible Bond converted into shares

11.1

(5,578.2)

-

-

(5,578.2)

-

Unwinding of loans recognised at amortised cost

3

174.2

219.0

191.1

393.2

374.4

Accrued interest (related to the 2022 and 2025 Notes, and US$ Convertible Bond)

413.6

444.1

353.2

857.7

769.9

Accrued interest paid

(405.0)

(461.3)

(381.2)

(866.3)

(777.7)

(Gain)/loss on the revised cash flow of the Burnstone Debt

4

(264.3)

-

96.6

(264.3)

96.6

(Gain)/loss on foreign exchange differences and foreign currency translation

(3,279.9)

5,430.1

(144.2)

2,150.2

(779.9)

Balance at end of the period

18,382.6

26,374.0

23,736.2

18,382.6

23,736.2

1US$75 million of the facility will mature within the next twelve months. US$450 million of the facility lenders (i.e. six of the eight lenders) have exercised the option to extend for a further two years, and US$75 million of the facility lenders (i.e. one of the eight lenders) has exercised the option to extend for only one year
2On 25 October 2019 Sibanye-Stillwater refinanced its R6.0 billion Revolving Credit Facility (RCF), which matured on 15 November 2019, with a new 3-year R5.5 billion RCF on similar terms. The outstanding balance under the R6.0 billion RCF was settled by way of a drawdown from the new R5.5 billion RCF. On 27 October 2020, the Group received an extension of one year on the R5.5 billion RCF, which now matures on 11 November 2023
3Other borrowings consist mainly of overnight facilities

Borrowings consist of:

Figures in million - SA rand

Note

Reviewed
Dec 2020

Unaudited
June 2020

Audited
Dec 2019

US$600 million RCF

6,977.7

4,910.1

5,711.9

R5.5 billion RCF

-

2,000.0

2,500.0

2022 and 2025 Notes

10,135.7

11,937.2

9,609.8

US$ Convertible Bond

11.1

-

5,796.0

4,578.6

Burnstone Debt

1,263.3

1,723.9

1,330.4

Other borrowings

5.9

6.8

5.5

Borrowings

18,382.6

26,374.0

23,736.2

Current portion of borrowings

(885.6)

(1,272.1)

(38.3)

Non-current borrowings

17,497.0

25,101.9

23,697.9

11.1 US$ Convertible Bond

The US$ Convertible Bond was launched and priced on 19 September 2017 with the proceeds applied towards the partial repayment of the Stillwater Bridge Facility, raised for the acquisition of Stillwater (the “Bonds”). On 11 September 2018, SGL concluded the repurchase of a portion of the Bonds. An aggregate principal amount of US$ 66 million for a total purchase price of approximately US$50 million was repurchased. Following the repurchase, the outstanding nominal value amounted to US$384 million.

On 18 September 2020, SGL provided notice (Optional Redemption Notice) to exercise its rights to redeem all the Bonds in full on 19 October 2020. Following the issue of the Optional Redemption Notice and subject to the conditions of the Bonds, the bondholders could still exercise their rights to request conversion of their Bonds into ordinary shares of Sibanye-Stillwater by delivering a conversion notice. Following receipt of the conversion notices, Sibanye-Stillwater could elect to settle the Bonds in Sibanye-Stillwater shares or in cash to the value of the shares, subject to the conditions of the Bonds. Conversion notices were received for Bonds with a nominal value of US$383 million before the redemption date and all converted bonds were settled in Sibanye-Stillwater shares. No conversion notices were received for Bonds to the value of $0.8 million and these were redeemed for cash at nominal value, including unpaid accrued interest.

Upon implementation of the Scheme on 24 February 2020, SGL became a subsidiary of Sibanye-Stillwater, which in turn became the new holding company of the Group (refer note 1.2). Consequently, even though SGL was the Bond issuer, the converted Bonds were settled in Sibanye-Stillwater shares.

The Bonds consisted of two components under IFRS. The conversion option component was recognised as a derivative financial liability measured at fair value through profit or loss. The bond component was recognised as a financial liability measured at amortised cost using the effective interest method. Both financial liabilities were extinguished upon settlement of the Bonds. Before derecognition, interest was accrued up to the settlement date on the amortised cost component based on the original effective interest rate.

The loss on settlement was attributed to the derivative component and measured as the difference between the fair value of the Sibanye-Stillwater shares issued on the respective settlement dates, the carrying amount of the amortised cost component immediately before settlement and the carrying amount of the derivative component. Sibanye-Stillwater shares issued on settlement of the Bonds were measured at the fair value on the dates of issue to the bondholders by applying a volume weighted average price (VWAP) on the day.

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2020 31


The table below summarises the settlement related information:

Reviewed
Dec 2020

Number of shares issued ('thousands)

248,040

Number of bonds settled

1,916.0

Fair value of Sibanye-Stillwater shares issued ('millions)

12,573.2

Range of VWAPs on settlement

46.5 - 51.5

Cash redemption amount ('millions)

13.2

Derivative element settlement value ('millions)

6,995.0

Bond element settlement value ('millions)

5,578.2

The tables below illustrate the movement in the amortised cost element and the derivative element respectively (amounts are in SA rand where applicable):

US$ Convertible Bond at amortised cost

Figures in million - SA rand

Six months ended

Year ended

Note

Unaudited
Dec 2020


Unaudited
Jun 2020

Unaudited
Dec 2019

Reviewed
Dec 2020

Audited

Dec 2019

Balance at the beginning of the period

5,796.0

4,578.6

4,513.7

4,578.6

4,496.6

Loans repaid1

(13.2)

-

-

(13.2)

-

Loans converted into shares2

(5,578.2)

-

-

(5,578.2)

-

Accrued interest paid

(60.4)

(64.3)

(53.3)

(124.7)

(105.5)

Interest charge

3

34.5

59.7

53.3

94.2

105.1

Unwinding of amortised cost

3

69.3

117.5

101.3

186.8

196.8

(Gain)/loss on foreign exchange differences

(248.0)

1,104.5

(36.4)

856.5

(114.4)

Balance at the end of the period

-

5,796.0

4,578.6

-

4,578.6

1Relates to the redemption of Bonds for which no conversion notice was received
2Calculated as the amortised cost on the date of settlement

Derivative financial instrument

Figures in million - SA rand

Six months ended

Year ended

Note

Unaudited

Dec 2020

Unaudited

June 2020

Unaudited

Dec 2019

Reviewed
Dec 2020

Audited
Dec 2019

Balance at the beginning of the period

3,493.7

4,144.9

950.6

4,144.9

408.9

Loss/(gain) on financial instruments1

4

2,164.4

(2,094.2)

3,358.8

70.2

3,911.5

Settlement of derivative financial instrument

(6,995.0)

-

-

(6,995.0)

-

Loss on settlement of US$ Convertible Bond2

1,506.7

-

-

1,506.7

-

(Gain)/loss on foreign exchange differences

(169.8)

1,443.0

(164.5)

1,273.2

(175.5)

Balance at the end of the period

-

3,493.7

4,144.9

-

4,144.9

1The (gain)/loss on the financial instrument is attributable to changes in various valuation inputs, including in the movement in the Sibanye-Stillwater share price, change in USD/ZAR exchange rate, bond market value and credit risk spreads
2Relates to the difference between the fair value of Sibanye-Stillwater shares issued on date of settlement, carrying value of the derivative liability before settlement and the carrying value of the bond on date of settlement

11.2 Capital management

Debt maturity

The following are contractually due, undiscounted cash flows resulting from maturities of borrowings, excluding interest payments:

Figures in million - SA rand

Total

Within one year

Between one and five years

After five years

31 December 2020

- Capital

US$600 million RCF

6,977.7

872.6

6,105.1

-

2022 and 2025 Notes

10,291.9

-

10,291.9

-

Burnstone Debt

114.3

-

11.7

102.6

Other borrowings

5.9

5.9

-

-

- Interest

6,680.6

809.5

1,563.5

4,307.6

Sibanye-Stillwater Operating and financial results | Six months and year ended 31 December 2020 32


Net (cash)/debt to adjusted EBITDA

Figures in million - SA rand

Rolling 12 months

Reviewed

Dec 2020

Unaudited

Jun 2020

Audited

Dec 2019

Borrowings1

17,119.3

28,143.8

26,550.7

Cash and cash equivalents2

20,205.9

12,007.2

5,586.3

Net (cash)/debt3

(3,086.6)

16,136.6

20,964.4

Adjusted EBITDA4

49,384.9

29,451.5

14,956.0

Net (cash)/debt to adjusted EBITDA (ratio)5

(0.1)

0.5

1.4

1Borrowings are only those borrowings that have recourse to Sibanye-Stillwater. Borrowings, therefore, exclude the Burnstone Debt and include the derivative financial instrument up to the settlement of the US$ Convertible Bond
2Cash and cash equivalents exclude cash of Burnstone
3Net (cash)/debt represents borrowings and bank overdraft less cash and cash equivalents. Borrowings are only those borrowings that have recourse to Sibanye-Stillwater and, therefore, exclude the Burnstone Debt and include the derivative financial instrument up to the settlement of the US$ Convertible Bond. Net (cash)/debt excludes cash of Burnstone
4The adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) calculation included is based on the definitions included in the facility agreements for compliance with the debt covenant formula, except for impact of new accounting standards and acquisitions, where the facility agreements allow the results from the acquired operations to be annualised. 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
5Net (cash)/debt to adjusted EBITDA ratio is a pro forma performance measure and is defined as net (cash)/debt as of the end of a reporting period divided by EBITDA of the 12 months ended on the same reporting date. This measure constitutes pro forma financial information in terms of the JSE Listing Requirements, and is the responsibility of the Board

Reconciliation of profit/(loss) before royalties and tax to adjusted EBITDA:

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Figures in million - SA rand

Six months ended

Year ended

Unaudited
Dec 2020

Unaudited
Jun 2020

Unaudited

Dec 2019

Reviewed
Dec 2020

Audited
Dec 2019

Profit/(loss) before royalties and tax

25,039.7

12,210.3

1,338.6

37,250.0

(856.3)

Adjusted for:

Amortisation and depreciation

4,148.8

3,443.6

4,289.4

7,592.4

7,214.1

Interest income

(561.3)

(504.1)

(273.1)

(1,065.4)

(560.4)

Finance expense

1,441.3

1,710.5

1,731.2

3,151.8

3,302.5

Share-based payments

214.9

297.5

200.3

512.4

363.3

Loss/(gain) on financial instruments