Sibanye Stillwater Limited · JSE:SSW
Sibanye Stillwater — Debt Investor Presentation (November 2019)
31 slides from Sibanye Stillwater's debt investor presentation, Nov 25, 2019
Slide 1: Disclaimer
Disclaimer The information in this presentation may contain forward-looking statements within the meaning of the “safe harbour” provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements, including, among others, those relating to Sibanye Gold
Slide 2: A unique, diversified, global, precious metal company
A unique, diversified, global, precious metal company Americas assets 17% 21% 27% Reserves (Moz %) 2018 73% Revenue Rm% H1 2019 Production (oz%) H1 2019 48% 52% 62% SA gold (oz %) SA PGM (6E %) US PGM (2E %) SA* US Southern African assets *Include SA gold and SA PGM operations inclusive of Lonmin’s
Slide 3: Our values define the way we do business
Our values define stakeholders the way we do business – in the interests of all OUR VISION PURPOSE SUPERIOR VALUE CREATION FOR ALL OUR STAKEHOLDERS through the responsible mining of our mineral resources Our mining improves lives • Recognised the importance of all stakeholders to the success and sus
Slide 4: Our commitment towards ESG and related reporting guidelines
Our commitment towards ESG and related reporting guidelines • Other ESG commitments, reporting guidelines and recognition by inclusion in ESG indices • Responsible Gold Mining Principles An over-arching framework that sets out clear expectations as to what constitutes responsible gold mining. Design
Slide 5: To build this unique Group we had to transform significantly over 6 years
To build this unique Group we had to transform significantly over 6 years • • • • • • • Reduced costs Improved flexibility and quality of mining Substantial increase in reserves enhanced by synergistic acquisitions Significantly extended operating life Included Cooke and Wits gold acquisitions Reduc
Slide 6: Expected production profile represents a lasting, quality mix of precious metals
Expected production profile represents metals a lasting, quality mix of precious or implemented our operating model since unbundling Base of gold operations’ life of mine upon unbundling in 2013 Expected PGM and gold* life of mine production plan (next 10 years displayed) 5 5 4 4 3 3 2 2 1 1 0 0 201
Slide 7: Successfully concluded our four-step PGM strategy at favourable prices
Successfully concluded our four-step PGM strategy at favourable prices Built a leading and influential PGM business at a favourable stage: • R4.3bn Aquarius transaction in Apr 2016 R3.7bn¹ Rustenburg in Nov 2016 US$2.2bn (~R25.6bn)² for Stillwater assets effective in May 2017 Became a 1.77m 4E PGM p
Slide 8: Lonmin created significant flexibility and optionality to SA PGM resources and reserves
Created reserves significant flexibility and optionality to SA PGM resources and Reserves* (4E PGMs) Resources* (4E PGMs) 1% 2% 5% 9% 38% Marikana ops and surface Projects (Lonmin) Total 278Moz 28% Total 52Moz 29% 60% Kroondal Rustenburg 19% 3% Mimosa 2% Surface Projects Lonmin added sizeable PGM Re
Slide 9: Track record of successful integration of previous SA PGM acquisitions
Track record of successful integration of previous SA PGM acquisitions • Rustenburg and Kroondal synergies 1 2 - Initially estimated as R800 million over 3 to 4 years Successfully realised > R1 billion of synergies over 14 months 1. 2. 3. 4. 5. 6. 7. 8. 9. Northam Anglo America Platinum Siyanda Reso
Slide 10: Synergies with Marikana operations will ensure operational viability
Synergies with Marikana operations will ensure operational viability infrastructure new growth capital regional plan of a new furnace Providing sustainability through realizing synergies and instilling appropriate cost structures for sustainable production levels 1.For further information, please re
Slide 11: Significant transformation into a leading, global precious metals company (PGM ranking)
Significant transformation into a leading, global precious metals company Sibanye-Stillwater global PGM ranking – Primary production 2018A platinum production (Moz) 2018A palladium production (Moz) Sibanye-Stillwater² Norilsk¹ 2,73 1,48 Sibanye-Stillwater² 1,13 Amplats¹ 1,32 1,01 Amplats¹ Impala¹,*
Slide 12: Significant transformation into a leading, global precious metals company (gold ranking)
Significant transformation into a leading, global precious metals company Sibanye-Stillwater global gold ranking Sibanye-Stillwater global PGM ranking – Primary production 2018A gold and gold equivalents production (Moz) 2018A rhodium production (Koz) Newmont Goldcorp¹ 7,40 Sibanye-Stillwater² 196 B
Slide 13: Significant transformation into a leading, global precious metals company
banye Significant transformation into a leading, global precious metals company Gtilkwstor Sibanye-Stilwater global PGM ranking - Primary production Sibanye-Stillwater global gold ranking 018A rhodiurr 2018A gold and gold equivalents production (Moz avo! I 7: ———- | Ue Kinross (2.48 | | 44 Powus' NN
Slide 14: Revenue drivers - precious metals prices
Revenue drivers - precious metals prices 26 000 1 800 H2 2018 H1 2019 H1 2018 H2 2017 H1 2017 Spot: US$1,564 1 600 /2Eoz 24 000 Spot: R22,720/4Eoz 22 000 Spot: R22,033/oz 1 400 20 000 1 200 18 000 1 000 16 000 800 14 000 600 12 000 10 000 400 Gold R/oz PGM basket (R/4Eoz) PGM basket (US$/2Eoz) Incre
Slide 15: AISC margin upside at current spot prices
AISC margin upside at current spot prices (US$m) H1 2019 AISC margin (US$m) - actual, at spot and pro-forma • Major potential upside looking forward from 1 000,00 - normalised production at SA gold operations incorporation of Marikana operations realisation of cost synergies across SA PGM operations
Slide 16: Sibanye-Stillwater Net Asset Value sensitivity analysis
Sibanye-Stillwater Net Asset Value sensitivity analysis Sibanye-Stillwater NAV analysis - Spot prices1 14 000 12 000 10 000 8 000 6 000 4 000 2 000 - US PGM Operations (5%) SA PGM Operations (7.5%) SA Gold Operations (7.5%) Lonmin (7.5%) Net Debt Total Sibanye-Stillwater NAV Market Cap Current price
Slide 17: What held our share price back for the past 12 months?
What held our share price back for the 18 months period 2019? before June Geared balance sheet after Stillwater acquisition Expect to de-lever significantly by the end of 2019 Safety incidents in 2018 in the SA gold operations Previous good safety record restored at the SA gold operations 5 months s
Slide 18: Net debt reduced with proactive debt management
Net debt reduced with proactive debt management Net debt to adjusted EBITDA* 30 000 4,0 3,5 3,0 25 000 2,5 2,0 1,5 20 000 1,0 0,5 15 000 0,0 Jun 17 Sep 17 Dec 17 Mar 18 Jun 18 Sep 18 Dec 18 Mar 19 Jun 19 Net debt balances (rhs) Net debt: Adjusted EBITDA (lhs) Covenant limit (rhs) Linear (Net debt ba
Slide 19: Sufficient liquidity
Sufficient liquidity • Available undrawn facilities of US$431m (R6.1bn) providing sufficient liquidity Elevated cash balance of US$423m (R6bn) reported Refinancing of the R6bn (US$426m) ZAR RCF (due Nov 2019) has been initiated and is expected to be completed during Q3 2019 75% of the USD RCF lender
Slide 20: It is a journey and we continue to move forward
It is a journey and we continue to move forward... Culture growth programme strengthening cohesion and engagement accelerated de-leveraging – dividend to resume as we near 1x ND:Adj. EBITDA 21 * Definition as per debt covenants which includes 12 months pro-forma adjusted EBITDA of Marikana operation
Slide 21: A unique value proposition
A unique value proposition 2 nd Leading GLOBAL PGM recycler Biggest GLOBAL primary PRODUCER of platinum and rhodium 3rd largest gold and gold equivalent globally largest primary producer of Palladium A leading precious metal company Delivery of superior value to all stakeholders drives strategy Gold
Slide 22: Questions?
Questions? Contacts James Wellsted/ Henrika Ninham ir@sibanyestillwater.com Tel:+27(0)83 453 4014/ +27(0)72 448 5910
Slide 23: Questions?
t we are one ant) < 13) r) 5 Questions? Contacts James Wellsted/ Henrika Ninham ir@sibanyestillwater.com Tel:+27(0)83 453 4014/ +27(0)72 448 5910
Slide 24: Approach to safety - zero harm strategic framework
Approach to safety - zero harm strategic framework OUR VALUES ENABLING ENVIRONMENT • Real risk reduction initiatives ongoing Reducing risk exposure by maintaining – Working place layout improvements ›Focus on the elimination of ‘A’ Hazards Infrastructure improvement ›Rail-bound equipment safety enha
Slide 25: Fundamental palladium market outlook playing out
Fundamental palladium market outlook playing out Our long held Palladium view remains unchanged with record deficits anticipated - 2018 characterized by record autocat demand (at 8.6moz), significant ETF¹ liquidations (-560koz) and increased primary and secondary production, particularly from Russia
Slide 26: Platinum appears poised for better days
Platinum appears poised for better days Platinum market balance • Surplus market anticipated in 2019, reducing to considerable deficits from 2021 onwards - Limited primary and secondary supply growth - Gross autocat demand remains well supported at 2.9moz Decline in global diesel penetration rates a
Slide 27: Rhodium – the forgotten PGM
Rhodium – the forgotten PGM… but maybe the most precious of them all? • Rhodium is the PGM outperformer over the last 12-months, having appreciated by >140% YoY in 2018 - Relative outperformance despite a balanced market for most of the last decade - Up a further 10% YTD at US$2,650/oz Deficit marke
Slide 28: Acquisition of SFA Oxford – fast tracking our PGM insights & technology
Acquisition of SFA Oxford – fast tracking our PGM insights & technology More about SFA Oxford (SFA) Consulting analysts in tomorrow’s commodities and technologies A leading commodity consultancy with expertise in future technologies and mobility SFA is a world-renowned authority on platinum-group me
Slide 29: Positioning for the new world
Positioning for the new world 1 Time 2013 2017 2020 31 Growth 3 2 Establish base to participate in appropriate drive train and battery metal growth 4 International precious metals SA PGMs SA Gold
Slide 30: Competent persons' declaration
Competent persons’ declaration The Competent Persons, designated in terms of SAMREC, who take responsibility for the reporting of Mineral Resources and Mineral Reserves and the overall regulatory compliance are the respective operational (per mining unit) and project based Mineral Resource Managers.
Slide 31: Competent persons' declaration
: i Sibanye Competent persons’ declaration Gtilhwster The Competent Persons, designated in terms of SAMREC, who take responsibility for the reporting of Mineral Resources and Mineral Reserves and the overall regulatory compliance are the respective operational (per mining unit) and project based Min
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