SIBANYE STILLWATER LIMITED 
GROUP ANNUAL FINANCIAL REPORT
Sibanye Stillwater Limited (Sibanye-Stillwater or the Group) is a multinational mining and metals processing group with a diverse portfolio of operations, projects and investments across five continents. The Group is also one of the foremost global recyclers of PGM autocatalysts and has interests in leading mine tailings retreatment operations.
Sibanye-Stillwater is one of the world's largest primary producers of platinum, palladium, and rhodium and is a top tier gold producer. It also produces and refines iridium and ruthenium, nickel, chrome, copper and cobalt. The Group has recently begun to diversify its asset portfolio into battery metals mining and processing and increase its presence in the circular economy by growing its recycling and tailings reprocessing exposure globally. For more information, see www.sibanyestillwater.com.
OUR 2023 REPORTS
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These reports cover the financial year from 1 January to 31 December 2023*
INTEGRATED | NOTICE OF ANNUAL | GROUP ANNUAL | COMPANY FINANCIAL | MINERAL RESOURCES |
REPORT | GENERAL MEETING AND | FINANCIAL REPORT | STATEMENTS | AND MINERAL |
SUMMARISED FINANCIALS | RESERVES REPORT |
About our cover designs:
Our strategic differentiator Inclusive, diverse and bionic, is depicted in the cover as a fingerprint, with small markings that signify computer code. As technology becomes ever more capable and powerful, the fear exists of the possible loss of human individuality, the loss of our independent spirit. The design reminds us what this strategic differentiator points to, the potential for humanity to be enhanced through using technology ("bionic"), and the potential for uniqueness and diverse individual identity to find its expression in service to our vision and purpose. We value the contributions of our employees (each having left their unique "fingerprint" on our business) and we honour their commitment to our values, which ripples out, amplifying the Group's capacity to innovate and evolve.
SUPPORTING FACT SHEETS AND SUPPLEMENTARY INFORMATION AVAILABLE ONLINE
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- Group Impact supplement 2023
- Progressing the UN's SDGs
- Environmental incidents in 2023
- Biodiversity management
- Social and labour plans (SLPs): Summary of projects
- Climate change supplement
- Sustainability content index
- Tailings management
- Care for iMali: Taking care of personal finance
- Combating illegal mining
- Sibanye-Stillwater'sICMM self-assessment for 2023
- The Good Neighbor Agreement
- Definitions for sustainability/ESG indicators
- Application of King IV Principles in 2023
- ESG scorecard for the long term incentive (LTI) awards
- This report encompasses data pertaining to the financial year ended on 31 December 2023. As necessary or where pertinent, certain information has been incorporated subsequent to year-end
DISCLAIMER
Forward looking statements
The information in this Group Annual Financial Report (Annual Financial Report) may contain forward-looking statements within the meaning of the "safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements, including, among others, those relating to Sibanye Stillwater Limited's (Sibanye-Stillwater or the Group) financial positions, business strategies, plans and objectives of management for future operations, are necessarily estimates reflecting the best judgment of the senior management and directors of Sibanye- Stillwater and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward- looking statements. As a consequence, these forward-looking statements should be considered in light of various important factors, including those set forth in this Annual Financial Report.
All statements other than statements of historical facts included in this Annual Financial Report may be forward-looking statements. Forward-looking statements also often use words such as "will", "would", "expect", "forecast", "goal", " vision", "potential", "may", "could", "believe", "aim", "anticipate", "target", "estimate" and words of similar meaning. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances and should be considered in light of various important factors, including those set forth in this disclaimer. Readers are cautioned not to place undue reliance on such statements.
The important factors that could cause Sibanye-Stillwater's actual results, performance or achievements to differ materially from estimates or projections contained in the forward-looking statements include, without limitation, Sibanye-Stillwater's future financial position, plans, strategies, objectives, capital expenditures, projected costs and anticipated cost savings, financing plans, debt position and ability to reduce debt leverage; economic, business, political and social conditions in South Africa, Zimbabwe, the United States, Europe, Australia and elsewhere; plans and objectives of management for future operations; Sibanye-Stillwater's ability to obtain the benefits of any streaming arrangements or pipeline financing; the ability of Sibanye-Stillwater to comply with loan and other covenants and restrictions and difficulties in obtaining additional financing or refinancing; Sibanye- Stillwater's ability to service its bond instruments; changes in assumptions underlying Sibanye-Stillwater's estimation of its Mineral Resources and Mineral Reserves; any failure of a tailings storage facility; the ability to achieve anticipated efficiencies and other cost savings in connection with, and the ability to successfully integrate, past, ongoing and future acquisitions, as well as at existing operations; the ability of Sibanye-Stillwater to complete any ongoing or future acquisitions; the success of Sibanye-Stillwater's business strategy and exploration and development activities, including any proposed, anticipated or planned expansions into the battery metals or adjacent sectors and estimations or expectations of enterprise value (including the Rhyolite Ridge project); the ability of Sibanye-Stillwater to comply with requirements that it operate in ways that provide progressive benefits to affected communities; changes in the market price of gold, PGMs, battery metals (e.g., nickel, lithium, copper and zinc) and the cost of power, petroleum fuels, and oil, among other commodities and supply requirements; the occurrence of hazards associated with underground and surface mining; any further downgrade of South Africa's credit rating; the impact of South Africa's greylisting; a challenge regarding the title to any of Sibanye-Stillwater's properties by claimants to land under restitution and other legislation; Sibanye-Stillwater's ability to implement its strategy and any changes thereto; the outcome of legal challenges to the Group's mining or other land use rights; the occurrence of labour disputes, disruptions and industrial actions; the availability, terms and deployment of capital or credit; changes in the imposition of industry standards, regulatory costs and relevant government regulations, particularly environmental, sustainability, tax, health and safety regulations and new legislation affecting water, mining, mineral rights and business ownership, including any interpretation thereof which may be subject to dispute; increasing regulation of environmental and sustainability matters such as greenhouse gas emissions and climate change; being subject to, and the outcome and consequence of any potential or pending litigation or regulatory proceedings, including in relation to any environmental, health or safety issues; the ability of Sibanye-Stillwater to meet its decarbonisation targets, including by diversifying its energy mix with renewable energy projects; failure to meet ethical standards, including actual or alleged instances of fraud, bribery or corruption; the effect of physical impacts of climate change or other extreme weather events on Sibanye-Stillwater's business; the concentration of all final refining activity and a large portion of Sibanye-Stillwater's PGM sales from mine production in the United States with one entity; the identification of a material weakness in disclosure and internal controls over financial reporting; the effect of US tax reform legislation on Sibanye-Stillwater and its subsidiaries; the effect of South African Exchange Control Regulations on Sibanye-Stillwater's financial flexibility; operating in new geographies and regulatory environments where Sibanye-Stillwater has no previous experience; power disruptions, constraints and cost increases; supply chain disruptions and shortages and increases in the price of production inputs; the regional concentration of Sibanye-Stillwater's operations; fluctuations in exchange rates, currency devaluations, inflation and other macroeconomic monetary policies; the occurrence of temporary stoppages or precautionary suspension of operations at its mines for safety or environmental incidents (including natural disasters) and unplanned maintenance; Sibanye-Stillwater's ability to hire and retain senior management and employees with sufficient technical and/or production skills across its global operations necessary to meet its labour recruitment and retention goals, as well as its ability to achieve sufficient representation of historically disadvantaged South Africans in its management positions; failure of Sibanye-Stillwater's information technology, communications and systems; the adequacy of Sibanye-Stillwater's insurance coverage; social unrest, sickness or natural or man-made disaster at informal settlements in the vicinity of some of Sibanye-Stillwater's South African-based operations; and the impact of HIV, tuberculosis and the spread of other contagious diseases, including global pandemics.
Further details of potential risks and uncertainties affecting Sibanye-Stillwater are described in Sibanye-Stillwater's filings with the Johannesburg Stock Exchange and the United States Securities and Exchange Commission, including the 2023 Integrated Report and the Annual Financial Report for the fiscal year ended 31 December 2023 on Form 20-F filed with the United States Securities and Exchange Commission on 26 April 2024 (SEC File no.
333-234096).
These forward-looking statements speak only as of the date of the content. Sibanye-Stillwater expressly disclaims any obligation or undertaking to update or revise any forward-looking statement (except to the extent legally required). These forward-looking statements have not been reviewed or reported on by the Group's external auditors.
Non-IFRS1 measures
The information contained in this Annual Financial Report may contain certain non-IFRS measures, including, among others, adjusted EBITDA, adjusted EBITDA margin, adjusted free cash flow, AISC, AIC, Nickel equivalent sustaining cost and normalised earnings. These measures may not be comparable to similarly-titled measures used by other companies and are not measures of Sibanye-Stillwater's financial performance under IFRS Accounting Standards. These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS Accounting Standards. Sibanye-Stillwater is not providing a reconciliation of the forecast non-IFRS financial information presented in this Annual Financial Report because it is unable to provide this reconciliation without unreasonable effort. These forecast non-IFRS financial information presented have not been reviewed or reported on by the Group's external auditors.
- IFRS refers to International Financial Reporting Standards Accounting Standards (IFRS Accounting Standards) as issued by the International Accounting Standards Board (IASB)
Mineral Resources and Mineral Reserves
Sibanye-Stillwater's Mineral Resources and Mineral Reserves are estimates at a particular date, and are affected by fluctuations in mineral prices, the exchange rates, operating costs, mining permits, changes in legislation and operating factors. Sibanye-Stillwater reports its Mineral Resources and Mineral Reserves in accordance with the rules and regulations promulgated by each of the United States Securities and Exchange Commission (SEC) and the JSE at all managed operations, development, and exploration properties.
Websites
References in this Annual Financial Report to information on websites (and/or social media sites) are included as an aid to their location and such information is not incorporated in, and does not form part of, this Annual Financial Report.
SIBANYE-STILLWATER ANNUAL FINANCIAL REPORT 2023 | 1 |
CONTENTS
OVERVIEW | 1 | |
Four-year financial performance | ||
ACCOUNTABILITY | 2 | |
Statement of responsibility by the Board of Directors | 41 | |
Chief Executive Officer and Chief Financial Officer | 42 | |
responsibility statement | ||
Company secretary's confirmation | 42 | |
Report of the Audit Committee | 43 | |
Directors' report | 47 | |
Independent auditor's report | 56 | |
CONSOLIDATED FINANCIAL STATEMENTS | 3 | |
Consolidated income statement | 61 | |
Consolidated statement of other comprehensive | 61 | |
income | ||
Consolidated statement of financial position | 62 | |
Consolidated statement of changes in equity | 63 | |
Consolidated statement of cash flows | 64 | |
Notes to the consolidated financial statements | 65 | |
ANCILLARY INFORMATION | 4 | |
Shareholder information | 168 | |
Administration and corporate information | 171 | |
The audited consolidated financial statements for the year ended 31 December 2023 have been prepared by Sibanye-Stillwater's group financial reporting team headed by Jacques le Roux. This process was supervised by the Group's CFO, Charl Keyter and authorised for issue by Sibanye-Stillwater's Board of Directors on 26 April 2024.
SIBANYE-STILLWATER ANNUAL FINANCIAL REPORT 2023 | 2 |
OVERVIEW
ACCOUNTABILITY
CONSOLIDATED | ANCILLARY |
FINANCIAL STATEMENTS | INFORMATION |
FOUR-YEAR FINANCIAL PERFORMANCE
2023 | 2022 | 2021 | 2020 | ||
Group financial statistics1 | |||||
Income statement | |||||
Revenue | Rm | 113,684 | 138,288 | 172,194 | 127,392 |
Cost of sales, before amortisation and depreciation | Rm | (89,756) | (94,537) | (101,013) | (75,776) |
Amortisation and depreciation | Rm | (10,012) | (7,087) | (8,293) | (7,593) |
(Loss)/profit for the year | Rm | (37,430) | 18,980 | 33,796 | 30,622 |
(Loss)/profit for the year attributable to owners of Sibanye-Stillwater | Rm | (37,772) | 18,396 | 33,054 | 29,312 |
Basic earnings per share | cents | (1,334) | 651 | 1,140 | 1,074 |
Diluted earnings per share | cents | (1,334) | 650 | 1,129 | 1,055 |
Headline earnings per share | cents | 63 | 652 | 1,272 | 1,068 |
Diluted headline earnings per share | cents | 63 | 651 | 1,260 | 1,049 |
Dividend per share | cents | 53 | 260 | 479 | 371 |
Weighted average number of shares | '000 | 2,830,528 | 2,826,085 | 2,898,804 | 2,728,891 |
Diluted weighted average number of shares | '000 | 2,830,567 | 2,830,781 | 2,927,246 | 2,777,952 |
Number of shares in issue at end of period | '000 | 2,830,567 | 2,830,370 | 2,808,406 | 2,923,571 |
Statement of financial position | |||||
Property, plant and equipment | Rm | 61,338 | 76,909 | 62,494 | 60,600 |
Cash and cash equivalents | Rm | 25,560 | 26,076 | 30,292 | 20,240 |
Total assets | Rm | 142,941 | 166,631 | 152,994 | 134,103 |
Net assets | Rm | 51,607 | 91,004 | 81,345 | 70,716 |
Stated share capital | Rm | 21,647 | 21,647 | 21,647 | 30,150 |
Borrowings2 | Rm | 36,618 | 22,728 | 20,298 | 18,383 |
Total liabilities | Rm | 91,334 | 75,627 | 71,649 | 63,387 |
Statement of cash flows | |||||
Net cash from operating activities | Rm | 7,095 | 15,543 | 32,256 | 27,151 |
Net cash used in investing activities | Rm | (22,038) | (17,374) | (14,568) | (9,938) |
Net cash from/(used in) financing activities | Rm | 12,976 | (3,497) | (8,344) | (2,244) |
Net (decrease)/increase in cash and cash equivalents | Rm | (1,967) | (5,328) | 9,344 | 14,969 |
Other financial data | |||||
Adjusted EBITDA3 | Rm | 20,556 | 41,111 | 68,606 | 49,385 |
Net debt/(cash)4 | Rm | 11,918 | (5,850) | (11,466) | (3,087) |
Net debt/(cash) to adjusted EBITDA5 | ratio | 0.58 | (0.14) | (0.17) | (0.06) |
Net asset value per share6 | R | 18.23 | 32.15 | 28.96 | 24.19 |
Average exchange rate7 | R/US$ | 18.42 | 16.37 | 14.79 | 16.46 |
Closing exchange rate8 | R/US$ | 18.57 | 17.03 | 15.94 | 14.69 |
Share data | |||||
Ordinary share price - high | R | 51.68 | 75.40 | 74.67 | 60.40 |
Ordinary share price - low | R | 18.70 | 35.74 | 45.58 | 16.53 |
Ordinary share price at year end | R | 24.90 | 44.72 | 49.10 | 60.00 |
Average daily volume of shares traded | '000 | 13,533 | 12,162 | 14,175 | 19,488 |
Market capitalisation at year end | Rbn | 71 | 127 | 138 | 175 |
- The selected historical consolidated financial data set out above have been derived from Sibanye-Stillwater's consolidated financial statements for those periods and as at those dates which have been prepared in accordance with IFRS Accounting Standards taking into account any changes in accounting principles. Headline earnings per share is calculated in terms of the guidance issued by the South African Institute of Chartered Accountants (SAICA), see - Consolidated financial statements - Notes to the consolidated financial statements - Note 12.3 Headline earnings per share
- This represents total borrowings as per the consolidated financial statements, see - Consolidated financial statements - Notes to the consolidated financial statements - Note 28 Borrowings and derivative financial instrument
- The adjusted EBITDA is based on the formula included in the facility agreements for compliance with the debt covenant formula. Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Adjusted EBITDA is not a measure of performance under IFRS Accounting Standards and should be considered in addition to, and not as a substitute for, other measures of financial performance and liquidity. For a reconciliation of (loss)/profit before royalties and tax to adjusted EBITDA, see - Consolidated financial statements - Notes to the consolidated financial statements - Note 28.9 Capital management
- Net debt/(cash) 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. Net debt excludes cash of Burnstone. Where cash and cash equivalents exceed borrowings and bank overdraft this represents a net cash position and the negative amount is shown in brackets
- Net debt/(cash) to adjusted EBITDA (ratio) is defined as net debt/(cash) as at the end of a reporting period divided by adjusted EBITDA of the last 12 months ending on the same reporting date. Where a net cash position arises the Net debt/(cash) to adjusted EBITDA (ratio) is negative and the amount is shown in brackets
- Net asset value per share (ratio) is defined as total assets as at the end of a reporting period minus total liabilities as at the end of a reporting period divided by the total number of shares in issue on the same reporting date
- The average exchange rate during the relevant period as reported by Equity RT/IRESS. The average exchange rate for the period through 19 April 2024 was R18.79/US$. The table below sets forth the high and low exchange rates for each month during the previous six months
SIBANYE-STILLWATER ANNUAL FINANCIAL REPORT 2023 | 3 |
OVERVIEW
ACCOUNTABILITY
CONSOLIDATED | ANCILLARY |
FINANCIAL STATEMENTS | INFORMATION |
FOUR-YEAR FINANCIAL PERFORMANCE continued
Table of high and low exchange rates for six months from October 2023 to March 2024
Month ended | High | Low | |
31 | October 2023 | 19.64 | 18.65 |
30 November 2023 | 18.96 | 18.10 | |
31 December 2023 | 19.14 | 18.21 | |
31 | January 2024 | 19.21 | 18.22 |
28 | February 2024 | 19.38 | 18.53 |
31 | March 2024 | 19.24 | 18.52 |
Through 19 April 2024 | 19.38 | 18.41 | |
- The closing exchange rate at period end. The closing exchange rate on 19 April 2024, as reported by EquityRT, was R19.14/US$. Fluctuations in the exchange rate between the rand and the US dollar will affect the US dollar equivalent of the price of the ordinary shares on the JSE, which may affect the market price of the American Depositary Shares (ADSs) trading on the NYSE. These fluctuations will also affect the US dollar amounts received by owners of ADSs on the conversion of any dividends paid in rand on the ordinary shares
2023 | 2022 | 2021 | 2020 | ||
Group operating statistics | |||||
US PGM operations1 | |||||
Production | |||||
Ore milled | '000t | 1,174 | 1,154 | 1,469 | 1,487 |
Platinum produced | '000oz | 98 | 97 | 129 | 135 |
Palladium produced | '000oz | 330 | 325 | 441 | 468 |
PGM produced | '000 2Eoz | 427 | 421 | 570 | 603 |
PGM sold | '000 2Eoz | 425 | 419 | 548 | 594 |
PGM recycled | '000 3Eoz | 310 | 599 | 755 | 840 |
Price and costs | |||||
Average basket price | R/2Eoz | 22,890 | 30,482 | 31,021 | 31,373 |
US$/2Eoz | 1,243 | 1,862 | 2,097 | 1,906 | |
R/3Eoz | 42,981 | 50,202 | 51,987 | 36,821 | |
US$/3Eoz | 2,334 | 3,067 | 3,515 | 2,237 | |
Operating cost2 | R/t | 7,837 | 6,811 | 5,174 | 5,203 |
US$/t | 426 | 416 | 350 | 316 | |
R/2Eoz | 21,539 | 18,671 | 13,324 | 12,829 | |
US$/2Eoz | 1,170 | 1,141 | 901 | 779 | |
Revenue | Rm | 23,812 | 46,090 | 59,053 | 45,154 |
Adjusted EBITDA3 | Rm | 1,317 | 7,604 | 12,256 | 13,083 |
Adjusted EBITDA margin4 | % | 6 | 16 | 21 | 29 |
All-in sustaining cost5 | R/2Eoz | 34,465 | 25,951 | 14,851 | 14,385 |
US$/2Eoz | 1,872 | 1,586 | 1,004 | 874 | |
All-in cost5 | R/2Eoz | 36,277 | 29,145 | 19,078 | 18,339 |
US$/2Eoz | 1,970 | 1,781 | 1,290 | 1,114 | |
Capital expenditure | |||||
Total capital expenditure | Rm | 6,841 | 5,416 | 4,556 | 4,419 |
SA PGM operations6 | |||||
Production | |||||
Ore milled | '000t | 36,048 | 36,644 | 38,307 | 32,416 |
Platinum produced | '000oz | 1,054 | 1,028 | 1,123 | 939 |
Palladium produced | '000oz | 526 | 517 | 566 | 471 |
PGM produced | '000 4Eoz | 1,673 | 1,667 | 1,836 | 1,526 |
PGM sold including PoC | '000 4Eoz | 1,720 | 1,662 | 1,886 | 1,576 |
Price and costs7 | |||||
Average basket price | R/4Eoz | 28,979 | 42,914 | 47,066 | 36,651 |
US$/4Eoz | 1,574 | 2,622 | 3,182 | 2,227 | |
Operating cost2 | R/t | 986 | 860 | 781 | 816 |
US$/t | 54 | 53 | 53 | 50 | |
R/4Eoz | 21,951 | 19,543 | 16,780 | 18,019 | |
US$/4Eoz | 1,192 | 1,194 | 1,135 | 1,095 | |
Revenue | Rm | 55,593 | 71,665 | 85,154 | 54,912 |
Adjusted EBITDA3 | Rm | 17,620 | 38,135 | 51,608 | 29,074 |
SIBANYE-STILLWATER ANNUAL FINANCIAL REPORT 2023 | 4 |
OVERVIEW
ACCOUNTABILITY
CONSOLIDATED | ANCILLARY |
FINANCIAL STATEMENTS | INFORMATION |
FOUR-YEAR FINANCIAL PERFORMANCE continued
2023 | 2022 | 2021 | 2020 | ||
Adjusted EBITDA margin4 | % | 32 | 53 | 61 | 53 |
All-in sustaining cost5 | R/4Eoz | 20,054 | 19,313 | 16,982 | 17,792 |
US$/4Eoz | 1,089 | 1,180 | 1,148 | 1,081 | |
All-in cost5 | R/4Eoz | 20,726 | 19,916 | 17,108 | 17,830 |
US$/4Eoz | 1,125 | 1,217 | 1,157 | 1,083 | |
Capital expenditure | |||||
Total capital expenditure | Rm | 5,647 | 5,104 | 3,799 | 2,197 |
SA gold operations | |||||
Production | |||||
Ore milled | '000t | 31,941 | 36,172 | 44,402 | 41,226 |
Gold produced | kg | 25,212 | 19,301 | 33,372 | 30,561 |
'000oz | 811 | 621 | 1,073 | 983 | |
Gold sold | kg | 25,429 | 18,859 | 33,374 | 30,136 |
'000oz | 818 | 606 | 1,073 | 969 | |
Price and costs | |||||
Gold price | R/kg | 1,146,093 | 946,073 | 849,703 | 924,764 |
US$/oz | 1,936 | 1,798 | 1,787 | 1,747 | |
Operating cost2 | R/t | 752 | 573 | 503 | 470 |
US$/t | 41 | 35 | 34 | 29 | |
R/kg | 953,118 | 1,074,400 | 669,723 | 634,596 | |
US$/oz | 1,610 | 2,042 | 1,408 | 1,199 | |
Revenue | Rm | 29,143 | 17,842 | 28,358 | 27,869 |
Adjusted EBITDA3 | Rm | 3,523 | (3,546) | 5,113 | 7,771 |
Adjusted EBITDA margin4 | % | 12 | (20) | 18 | 28 |
All-in sustaining cost5 | R/kg | 1,127,138 | 1,268,360 | 803,260 | 743,967 |
US$/oz | 1,904 | 2,410 | 1,689 | 1,406 | |
All-in cost5 | R/kg | 1,230,328 | 1,341,588 | 821,358 | 756,351 |
US$/oz | 2,078 | 2,549 | 1,727 | 1,429 | |
Capital expenditure | |||||
Total capital expenditure | Rm | 6,708 | 4,559 | 4,380 | 2,997 |
SIBANYE-STILLWATER ANNUAL FINANCIAL REPORT 2023 | 5 |
OVERVIEW
ACCOUNTABILITY
CONSOLIDATED | ANCILLARY |
FINANCIAL STATEMENTS | INFORMATION |
FOUR-YEAR FINANCIAL PERFORMANCE continued | |||
2023 | 2022 | ||
Sandouville nickel refinery8 | |||
Volumes produced | |||
Nickel Salts9 | tonnes | 1,411 | 2,003 |
Nickel Metal | tonnes | 5,714 | 4,839 |
Total Nickel production | tNi | 7,125 | 6,842 |
Nickel Cakes10 | tonnes | 320 | 284 |
Cobalt Chloride (CoCl2)11 | tonnes | 127 | 153 |
Ferric Chloride (FeCl3)11 | tonnes | 1,214 | 1,399 |
Volumes sales | |||
Nickel Salts9 | tonnes | 1,134 | 1,860 |
Nickel Metal | tonnes | 5,721 | 4,987 |
Total Nickel sold | tNi | 6,855 | 6,847 |
Nickel Cakes10 | tonnes | 21 | - |
Cobalt Chloride (CoCl2)11 | tonnes | 116 | 164 |
Ferric Chloride (FeCl3)11 | tonnes | 1,214 | 1,399 |
Price and costs | |||
Nickel equivalent average basket price12 | R/tNi | 441,138 | 458,595 |
US$/tNi | 23,955 | 28,019 | |
Revenue | Rm | 3,024 | 3,140 |
Adjusted EBITDA3 | Rm | (1,328) | (492) |
Adjusted EBITDA margin4 | % | (44) | (16) |
Nickel equivalent sustaining cost13 | R/tNi | 653,246 | 527,676 |
US$/tNi | 35,474 | 32,239 | |
Capital expenditure | |||
Total capital expenditure | Rm | 248 | 90 |
2023 | |||
Century zinc retreatment operation14 | |||
Production | |||
Ore mined and processed | kt | 6,097 | |
Zinc metal produced (payable)15 | kt | 76 | |
Zinc sold (payable)16 | kt | 77 | |
Price and costs | |||
Average equivalent zinc concentrate price17 | R/tZn | 31,815 | |
US$/tZn | 1,728 | ||
Revenue | Rm | 2,251 | |
Adjusted EBITDA3 | Rm | (285) | |
Adjusted EBITDA margin4 | % | (13) | |
All-in sustaining cost5 | R/tZn | 36,361 | |
US$/tZn | 1,975 | ||
All-in cost5 | R/tZn | 39,359 | |
US$/tZn | 2,137 | ||
Capital expenditure | |||
Total capital expenditure | Rm | 165 | |
SIBANYE-STILLWATER ANNUAL FINANCIAL REPORT 2023 | 6 |
OVERVIEW
ACCOUNTABILITY
CONSOLIDATED | ANCILLARY |
FINANCIAL STATEMENTS | INFORMATION |
FOUR-YEAR FINANCIAL PERFORMANCE continued
Figures in tables below may not add as they are rounded independently | |||||
Unit operating cost2: US underground PGM operations | |||||
2023 | 2022 | 2021 | 2020 | ||
Cost of sales, before amortisation and depreciation | R'mil | 9,680 | 7,458 | 7,567 | 7,586 |
Inventory change | R'mil | (477) | 405 | 33 | 151 |
Total operating cost | R'mil | 9,203 | 7,863 | 7,600 | 7,737 |
Tonnes milled/treated | 000't | 1,174 | 1,154 | 1,469 | 1,487 |
PGM production | 000 2Eoz | 427 | 421 | 570 | 603 |
Operating cost2 | R/t | 7,837 | 6,811 | 5,174 | 5,203 |
US$/t | 426 | 416 | 350 | 316 | |
R/2Eoz | 21,539 | 18,671 | 13,324 | 12,829 | |
US$/2Eoz | 1,170 | 1,141 | 901 | 779 | |
Unit operating cost2: SA PGM operations (excluding Mimosa and | |||||
2023 | 2022 | 2021 | 2020 | ||
Purchase of Concentrate (PoC)) | |||||
Cost of sales, before amortisation and depreciation | R'mil | 36,699 | 32,281 | 31,972 | 24,723 |
Inventory change | R'mil | 1,938 | 2,315 | 1,294 | 3,039 |
Less: Chrome cost of sales | R'mil | (1,715) | (1,528) | (1,286) | (804) |
Less: Purchase cost of PoC | R'mil | (2,753) | (2,738) | (3,170) | (1,667) |
Total operating cost excluding third party PoC | R'mil | 34,169 | 30,330 | 28,810 | 25,290 |
Tonnes milled/treated | 000't | 36,048 | 36,644 | 38,307 | 32,416 |
Less: Mimosa tonnes (equity accounted) | 000't | (1,392) | (1,387) | (1,422) | (1,414) |
PGM tonnes excluding Mimosa and third party PoC | 000't | 34,656 | 35,257 | 36,885 | 31,002 |
PGM production (excluding PoC) | 000 4Eoz | 1,673 | 1,667 | 1,836 | 1,526 |
Less: Mimosa production (equity accounted) | 000 4Eoz | (116) | (116) | (119) | (123) |
PGM production excluding Mimosa and third party PoC | 000 4Eoz | 1,557 | 1,552 | 1,717 | 1,404 |
Operating cost2 | R/t | 986 | 860 | 781 | 816 |
US$/t | 54 | 53 | 53 | 50 | |
R/4Eoz | 21,951 | 19,543 | 16,780 | 18,019 | |
US$/4Eoz | 1,192 | 1,194 | 1,135 | 1,095 | |
Unit operating cost2: SA Gold operations | |||||
2023 | 2022 | 2021 | 2020 | ||
Cost of sales, before amortisation and depreciation | R'mil | 24,080 | 20,175 | 22,256 | 19,050 |
Inventory change (Gold in process) | R'mil | (50) | 562 | 94 | 344 |
Total operating cost | R'mil | 24,030 | 20,737 | 22,350 | 19,394 |
Tonnes milled/treated | 000't | 31,941 | 36,172 | 44,402 | 41,226 |
Gold Production | kg | 25,212 | 19,301 | 33,372 | 30,561 |
000'oz | 810,584 | 620,541 | 1,072,934 | 982,559 | |
Operating cost2 | R/t | 752 | 573 | 503 | 470 |
US$/t | 41 | 35 | 34 | 29 | |
R/kg | 953,118 | 1,074,400 | 669,723 | 634,596 | |
US$/oz | 1,610 | 2,041 | 1,408 | 1,199 | |
- The US PGM operations' underground production is converted to metric tonnes and kilograms, and performance is translated into SA rand. In addition to the US PGM operations' underground production, the operation processes recycling material which is excluded from the 2E PGM production, 2E average basket price, operating cost, total capital expenditure, All-in sustaining cost and All-in cost statistics shown. PGM recycling represents palladium, platinum, and rhodium ounces fed to the furnace
SIBANYE-STILLWATER ANNUAL FINANCIAL REPORT 2023 | 7 |
OVERVIEW
ACCOUNTABILITY
CONSOLIDATED | ANCILLARY |
FINANCIAL STATEMENTS | INFORMATION |
FOUR-YEAR FINANCIAL PERFORMANCE continued
- Operating cost is a non-IFRS measure see pages AFR-44 for additional information. Operating 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 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 gold kilograms produced or platinum group metals (PGM) 2E or 4E ounces produced in the same period
- The 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. Adjusted EBITDA is a non-IFRS measure see pages AFR-43 for additional information. Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Adjusted EBITDA is not a measure of performance under IFRS Accounting Standards and should be considered in addition to, and not as a substitute for, other measures of financial performance and liquidity. For a reconciliation of profit/(loss) before royalties and tax to adjusted EBITDA, see - Consolidated financial statements - Notes to the consolidated financial statements - Note 28.9 Capital management
- Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue. Adjusted EBITDA margin is a non-IFRS measure see pages AFR-43 for additional information
- Sibanye-Stillwaterpresents the financial measures "All-in sustaining costs", "All-in costs", "All-in sustaining cost per kilogram", "All-in sustaining cost per ounce", "All-in sustaining cost per tonne","All- in cost per kilogram", "All-in cost per ounce" and "All-in cost per tonne", which were introduced during the year ended 31 December 2013 by the World Gold Council (the Council). The Council is a non-profit association of the world's leading gold mining companies established in 1987 to promote the use of gold from industry, consumers and investors and is not a regulatory organisation. The Council has worked with its member companies to develop a metric that expands on IFRS Accounting Standards measures such as cost of goods sold and currently accepted non-IFRS measures to provide relevant information to investors, governments, local communities and other stakeholders in understanding the economics of gold mining operations related to expenditures, operating performance and the ability to generate cash flow from operations. This is especially true with reference to capital expenditure associated with developing and maintaining gold mines, which has increased significantly in recent years and is reflected in this metric
All-in sustaining costs, All-in costs, All-in sustaining cost per kilogram, All-in sustaining cost per ounce, All-in sustaining cost per tonne, All-in cost per kilogram, All-in cost per ounce and All-in cost per tonne metrics are intended to provide additional information only, do not have any standardised meaning prescribed by IFRS Accounting Standards and should not be considered in isolation or as alternatives to cost of sales, (loss)/profit before tax, (loss)/profit for the year, cash from operating activities or any other measure of financial performance presented in accordance with IFRS. All-in sustaining costs, All-in costs, All-in sustaining cost per kilogram, All-in sustaining cost per ounce, All-in sustaining cost per tonne, All-in cost per kilogram, All-in cost per ounce and All-in cost per tonne as presented in this document may not be comparable to other similarly titled measures of performance of other companies. Other companies may calculate these measures differently as a result of differences in the underlying accounting principles, policies applied and accounting frameworks such as in US GAAP. Differences may also arise related to definitional differences of sustaining versus development capital activities based upon each company's internal policies. All-in costs 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 costs is made up of All-in sustaining costs, being the cost to sustain current operations, given as a sub-total in the All-in costs calculation, together with corporate and major capital expenditure associated with growth. For a reconciliation of cost of sales, before amortisation and depreciation to All-in costs and Nickel equivalent sustaining cost, see - Overview - Management's discussion and analysis of the financial statements - 2023 financial performance compared with 2022 - Cost of sales - All-in sustaining cost, All-in cost and Nickel equivalent sustaining cost
- SA PGM operations excludes the production and costs associated with the purchase of concentrate (PoC) from third parties from 1 January 2020 onwards. During 2023, the SA PGM operations produced 96,403 4Eoz (2022: 63,344 4Eoz; 2021: 60,532 4Eoz; 2020: 50,136 4Eoz) of PoC at a cost of R2.8 billion (2022: R2.7 billion; 2021: R3,2 billion; 2020: R1.7 billion)
- The total SA PGM operations unit cost benchmarks (including capital expenditure) exclude the financial results of Mimosa, which is equity accounted, and excluded from revenue and cost of sales
- Amounts included since effective date of the acquisition on 4 February 2022
-
Nickel salts consist of anhydrous nickel, nickel chloride low sodium, nickel chloride standard, nickel carbonate and nickel chloride solution
10 Nickel cakes occur during the processing of nickel matte and are recycled back into the nickel refining process
11 Cobalt chloride and ferric chloride are obtained from nickel matte through a different refining process on an order basis
- The Nickel equivalent average basket price per tonne is the total nickel revenue adjusted for other income less non-product sales divided by the total nickel equivalent tonnes sold
- The Nickel equivalent sustaining cost, is the cost to sustain current operations. Nickel equivalent sustaining cost per tonne nickel is calculated by dividing the Nickel equivalent sustaining cost, in a period by the total nickel products sold over the same period. Nickel equivalent sustaining cost and Nickel equivalent sustaining costs per tonne are intended to provide additional information only, do not have any standardised meaning prescribed by IFRS and should not be considered in isolation or as alternatives to cost of sales, profit before tax, profit for the year, cash from operating activities or any other measure of financial performance presented in accordance with IFRS. Nickel equivalent sustaining cost and Nickel equivalent sustaining costs per tonne as presented in this document may not be comparable to other similarly titled measures of performance of other companies. Other companies may calculate these measures differently as a result of differences in the underlying accounting principles, policies applied and accounting frameworks such as in US GAAP. Differences may also arise related to definitional differences of sustaining versus development capital activities based upon each company's internal policies. For a reconciliation of cost of sales, before amortisation and depreciation to Nickel equivalent sustaining cost, see - Overview - Management's discussion and analysis of the financial statements - 2023 financial performance compared with 2022 - Cost of sales - All-in sustaining cost, All-in cost and Nickel equivalent sustaining cost
- Century zinc tailings retreatment operation (Century) is a leading tailings management and rehabilitation company that currently owns and operates the Century zinc tailings retreatment operation in Queensland, Australia. Century was acquired by the Group on 22 February 2023
- Zinc metal produced (payable) is the payable quantity of zinc metal produced after applying smelter content deductions
- Zinc sold (payable) is the payable quantity of zinc metal sold after applying smelter content deductions
- Average equivalent zinc concentrate price is the total zinc sales revenue recognised at the price expected to be received excluding the fair value adjustments divided by the payable zinc metal sold
SIBANYE-STILLWATER ANNUAL FINANCIAL REPORT 2023 | 8 |
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Sibanye Stillwater Limited published this content on 26 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 April 2024 14:36:19 UTC.
