News Bureau

 
 
February 21, 2017

Sibanye Platinum production of 230K oz

Gold production reaches 765K oz at Sibanye

Sibanye’s said in its H1 2016 report that Gold Division produced approximately 23,800kg that is about 765,000oz of gold for the six months ended. This is similar to the amount produced during the six months ended 30 June 2016, but is 7% lower than the comparable period in 2015.

Targeted mineral reserve management and limited mining below cut-off grades, resulted in the average underground grade increasing by 4% year-on-year to 5.31g/t. An increased focus on fragmentation and cleaning practices resulted in the average Mine Call Factor increasing by 2% to 81%.

The Platinum Division delivered a solid operating result, with attributable platinum group metal production amounting to approximately 230,000oz (4E) for 4Q 2016, which now includes two months from the Rustenburg operations. Kroondal and Mimosa production was approximately 118,000oz (4E) and 62,000oz (4E) respectively.

A Section 189 process at the Platinum Division was announced on 26 January 2017. Short term mine plans are currently being reviewed and optimised, with specific consideration of the operational efficiencies that can be obtained through the “dropping of mine boundaries” between the Kroondal and Rustenburg mines and shared overhead infrastructure.

The consensus outlook for precious metal prices in the near term, particularly in rand terms, is subdued, with the rand remaining surprisingly resilient. Further, sustained strength of the rand will impact on South African mining industry operating margins, including those of Sibanye’s South African Gold and Platinum Divisions.

In light of these factors and the likely impact on cash flow, management is re-evaluating its current growth capital expenditure plans. This includes reviewing the planned 2017 capital profile at the UG2 project at Rustenburg, the Burnstone project and the West Rand Tailings Retreatment Project.

 

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