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OPERATING AND
FINANCIAL RESULTSfor the six months and financial year
ended 31 December 2017
22 February 2018
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2
Disclaimer
NOT FOR RELEASE, PRESENTATION, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.
This presentation is for informational purposes only and does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in theUnited States or any other jurisdiction nor a solicitation of any vote of approval, nor shall there be any sale of securities in any jurisdiction in which such offer,solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
The shares to be issued in connection with the offer for Lonmin plc (“Lonmin” and the “New Sibanye Shares”, respectively) have not been and will not be registeredunder the US Securities Act of 1933 (the “Securities Act”) and, accordingly, may not be offered or sold or otherwise transferred in or into the United States exceptpursuant to an exemption from the registration requirements of the Securities Act. The New Sibanye Shares are expected to be issued in reliance upon theexemption from the registration requirements of the Securities Act provided by Section 3(a)(10) thereof.
This presentation is not a prospectus for purposes of Directive 2003/71/EC (and amendments thereto, including Directive 2010/73/EU, to the extent implemented inany relevant Member State) (the “Prospectus Directive”). In any EEA Member State that has implemented the Prospectus Directive, this presentation is onlyaddressed to and is only directed at qualified investors in that Member State within the meaning of the Prospectus Directive. This presentation is not directed to, orintended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where suchdistribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction.
No statement in this presentation should be construed as a profit forecast.
Forward looking statements
This presentation contains forward-looking statements within the meaning of the “safe harbour” provisions of the United States Private Securities Litigation ReformAct of 1995. These forward-looking statements, including, among others, those relating to Sibanye Gold Limited trading as Sibanye-Stillwater (“Sibanye-Stillwater”)’sfinancial positions, business strategies, plans and objectives of management for future operations, are necessarily estimates reflecting the best judgment of thesenior management and directors of Sibanye-Stillwater and Lonmin. All statements other than statements of historical facts included in this Presentation may beforward-looking statements. Forward-looking statements also often use words such as “will”, “forecast”, “potential”, “estimate”, “expect” and words of similarmeaning. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances and should beconsidered 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 and Lonmin’s actual results, performance or achievements to differ materially from those in the forward-looking statements include, among others, economic, business, political and social conditions in the United Kingdom, South Africa, Zimbabwe and elsewhere;changes in assumptions underlying Sibanye-Stillwater’s and Lonmin’s estimation of their current mineral reserves and resources; the ability to achieve anticipatedefficiencies and other cost savings in connection with past, ongoing and future acquisitions, as well as at existing operations; the success of Sibanye-Stillwater’s andLonmin’s business strategy, exploration and development activities; the ability of Sibanye-Stillwater and Lonmin to comply with requirements that they operate in asustainable manner; changes in the market price of gold, PGMs and/or uranium; the occurrence of hazards associated with underground and surface gold, PGMsand uranium mining; the occurrence of labour disruptions and industrial action; the availability, terms and deployment of capital or credit; changes in relevantgovernment regulations, particularly environmental, tax, health and safety regulations and new legislation affecting water, mining, mineral rights and businessownership, including any interpretations thereof which may be subject to dispute; the outcome and consequence of any potential or pending litigation orregulatory proceedings or other environmental, health and safety issues; power disruptions, constraints and cost increases; supply chain shortages and increases inthe price of production inputs; fluctuations in exchange rates, currency devaluations, inflation and other macro-economic monetary policies; the occurrence oftemporary stoppages of mines for safety incidents and unplanned maintenance; their ability to hire and retain senior management or sufficient technically skilledemployees, as well as their ability to achieve sufficient representation of historically disadvantaged South Africans’ in management positions; failure of informationtechnology and communications systems; the adequacy of insurance coverage; any social unrest, sickness or natural or man-made disaster at informal settlementsin the vicinity of some of Sibanye-Stillwater’s operations; and the impact of HIV, tuberculosis and other contagious diseases. These forward-looking statements speakonly as of the date of this Presentation. Sibanye-Stillwater and Lonmin expressly disclaim any obligation or undertaking to update or revise any forward-lookingstatement (except to the extent legally required).
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1. Safety
2. Strategic review
3. Operating review
4. Financial performance
5. Path to appropriate value recognition
6. Conclusion
3
Agenda
Safety
4
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VISION:
SUPERIOR VALUE CREATION
FOR ALL OUR STAKEHOLDERS
Th rough min ing ou r mu l t i -commodi ty re sou rces
in a sa fe and hea l thy env i ronment
Sibanye-Stillwater cares 5
Our vision and purpose dictates our actions
PURPOSE: Our mining improves lives
Underpinned by our C.A.R.E.S. VALUES
Commitment Accountability Respect Enabling Safety
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6
2017 Safety performance – SA region
3.503.88
4.684.16
3.59
0.00
2.00
4.00
6.00
8.00
2013 2014 2015 2016 2017
Serious Injury Frequency Rate*
0.100.12
0.06
0.10
0.07
0.00
0.05
0.10
0.15
0.20
2013 2014 2015 2016 2017
Fatality Injury Frequency Rate*
Note: Rates are measured per million hours
• All safety metrics significantly
improved across the SA region
compared with 2016
• Prior to recent safety incidents in
the gold division, the SA gold
operations had achieved 154
fatality free days
• In Q4 2017, the SA region
achieved its best quarterly safety
performance in the last three
years
Better than our peers in both the SA gold and platinum sectors in terms of FIFR
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World-class safety record at the US PGM operations 7
Safety performance of US operations
16.8 16.5
15.1
12.9 12.7
10
15
20
2013 2014 2015 2016 2017
Total Recordable Injury Frequency Rate*
4.8
6.2
2.6 2.82.0
-
2
4
6
8
2013 2014 2015 2016 2017
Serious Injury Frequency Rate*
Sibanye-Stillwater acquired the US operations in May 2017 while previous years are only included for comparative purposes as it represents safety statistics under Stillwater Mining Company
Note: Rates are measured per million hours
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• A tornado level storm at 02:00 on Thursday 1 February 2018, destroyed both the
main and secondary (backup) Eskom power lines feeding Beatrix shafts
– Caused total power outages at Beatrix 1,3 and 4 shafts
– Damage to critical technical equipment due to the massive power surge
• Eskom was quick to supply backup power to Beatrix 4 shaft and the 272
employees were safely hoisted to surface shortly after the incident
• Emergency generators were used to hoist the 64 people underground at
Beatrix 1 shaft to surface safely
• The Beatrix 3 shaft generator and critical software in the winder were damaged
by the power surge. All 955 employees were hoisted safely to surface when
Eskom power was restored
Compliant in all respects 8
The Beatrix power failure in perspective
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Alternative escape way at Beatrix 1 shaft available and able to hoist 9
Schematic of Beatrix 3 and second escape
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• No one was trapped and at no point were any employees in danger:
– the secondary extraction route (via 1 shaft) was available
throughout
– in the interests of safety, management decided to keep
employees on the shaft stations at 3 shaft where:
• It was well ventilated
• communications had been re-established
• potable water and food was available
• Electrical generators are in place at all our operations
– Kloof and Harmony provided assistance
• Eskom worked tirelessly through the day and night and restored
power at approximately 02:30 on Friday 2 February 2018
• All 955 employees were safely brought to surface without any serious
injuries
A good example of effective and deliberate crisis management 10
The Beatrix power failure in perspective
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• The safety, health and wellbeing of our employees is paramount
• To continue the journey to zero harm new thinking is required to break
through the safety plateau
• Industry investigations reveal that in recent years most fatalities are the result
of non compliance to procedures and standards for which employees are
trained
• Safety Reps and employees are not using their right to withdraw from unsafe
conditions or practices suggesting that an intervention around attitudes and
behaviours is urgently required
• Our employees are mostly unionised suggesting that unions have a significant
role to play in improving safety instead of standing on the sidelines criticizing
• The DMR has a critical role in supporting safety improvement instead of issuing
counter-productive, disproportionate or unwarranted instructions
• Zero harm can be achieved but this will require joint problem solving and
sharing responsibility to implement effective solutions
• Unless all stakeholders make a difference to safety performance the
sustainability of RSA labour intensive mining industry is questionable
A call to action for a common purpose towards zero harm 11
Health & safety stakeholder compact required
Strategic review
12
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Delivering growth and value while diversifying risk at the bottom of the cycle 13
We have transformed significantly
2013¹ Market
cap: R10 billionPerceived high
cost, short life SA gold company
Value accretive and high quality PGM acquisitions
A major, global precious metal
company
• Reduced costs
• Improved flexibility and quality of mining
• Substantial increase in reserves enhanced by synergistic acquisitions
• Significantly extended operating life
• Reduced debt/gearing
• Delivered consistent, industry leading returns
• Significant PGM acquisitions at the bottom of the PGM price cycle
• Innovatively financed strategic growth enhancing value
• Implementation of operating model and realisation of consolidation synergies yielding superior value ahead of schedule
• Stillwater transaction transformative, creating a globally competitive and unique SA mining company
• Unique commodity mix and global geographic presence
• Proposed Lonmin Transaction concludes 4th step in PGM strategy
• Will secure entire beneficiation chain in SA as well as providing significant optionality to PGM prices
• Well positioned for further success
2018² Market
cap: ~R30 billion
¹ 11 February 2013, Source: IRESS² 21 February 2018, Source: IRESS
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• Concluded acquisition of Stillwater in May 2017
• Successfully refinanced US$2.65 billion bridge loan
– Oversubscribed US$1 billion rights issue
– Competitively priced US$1.05 billion Eurobond (two tranches)
– US$450 million flexible, low cost convertible instrument
• Proposed sale of certain WRTRP assets to DRDGold
– Realises immediate value and ensures continued exposure to the WRTRP
• Proposed acquisition of Lonmin
– Downstream processing business with a replacement value significantly higher than
acquisition cost
– Significant synergies between Sibanye-Stillwater and Lonmin’s contiguous PGM assets
– Sizeable PGM Resources with potential upside from advanced brownfield projects
and greenfield project pipeline
Significant, value accretive transactions at an attractive point in the commodity price cycle 14
2017 – a transformative year
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15
A value accretive PGM strategy
Aquarius
Rustenburg
Stillwater
Lonmin
• First entry into the SA PGM sector – April 2016
• Lean, well run company
• Operational performance has increased further to record levels
since acquisition
• Effective from November 2016
• Smart transaction structure aligned with expectations of platinum
market outlook
• Significant synergies with Aquarius and the gold central services
• Realised synergies of ~R1bn pa in 14 months, well ahead of
previous target of R800m over a 3-4 year period
• Tier one US PGM producer acquired in May 2017
• High grade, low cost assets with Blitz, a world class growth
project
• Provides geographic, commodity and currency diversification
• 78% palladium content provides upside to robust
palladium market
• Attractive acquisition price at low point in platinum price cycle
• Combination with Sibanye-Stillwater SA PGM assets results in
significant potential synergies
• Aligns with Sibanye-Stillwater’s mine-to-market strategy in SA and
adds commercially attractive smelting and refining
• Sizeable resources provide long-term optionality
A unique, leading precious metals mining company offering scale and sustainability
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Large, low cost South African PGM acquisitions
16
Lonmin: Afriore
Mvela: Booysendal &
Northam
Nkwe: Garatau/Tubatse
Anooraq: Bokoni
Jubilee: Tjate Project
Platmin: Sedibelo West
Anglo: AnooraqZambezi: Northam
Hebei: Eastplats
Sibanye-Stillwater:
Aquarius
Sibanye-Stillwater:
Rustenburg
Lonmin: Pandora
Northam: Tumela
Northam: Eland
RBPlats: Maseve
Implats: Waterberg
Sibanye-Stillwater:
Lonmin
0
5
10
15
20
0 100 200 300 400 500 600 700
De
al va
lue
(U
S$/R
eso
urc
e o
z)
Deal value (US$m)
Historic SA PGM transactions
A sizeable resource base at a compelling price
Source: Various companies’ disclosures
Note: Bubble size represents PGM Resources
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-20
0
20
40
60
80
100
Re
lative
pri
ce
pe
rfo
rma
nc
e (
%)
Gold $/oz Palladium $/oz Platinum $/oz
Stillwater Transaction
ConcludedDiscussions with Stillwater begin
Stillwater Transaction
announced
Fundamental outlook for palladium remains robust 17
Well-timed acquisition at low’s in the price cycle
Source: Inet BFA
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A value accretive and well timed acquisition 18
Stillwater CPR – confirms value
200 000
300 000
400 000
500 000
600 000
700 000
800 000
900 000
300
400
500
600
700
800
900
1 000
1 100
2018 2019 2020 2021 2022 2023 2024 2025 2026
2Eo
z
US$
/2Eo
z
US PGM Operations production and cost profile
2E production (oz) AISC AIC Spot prices for 2E basket
50%
Spot 2E basket price ~ US$1,000/2Eoz
Source: Stillwater CPR 2017
Note: Production and costs are in line with the published CPR for the Stillwater operations (available on https://www.sibanyestillwater.com/investors/documents-circulars)
The Stillwater operations have a PGM 2E prill split of 3.4 palladium: 1 platinum ounce
12%
30%
• CPR released in November 2017
– NPV of US$2.7 billion vs acquisition price of US$2.2 billion confirmed, at assumed
palladium price of US$704/oz and platinum price of US$1,047/oz
– AISC and AIC converge to approximately US$530/2Eoz from 2021 as capital at
Blitz declines and production builds up
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• 2E PGM Mineral Reserves of 21.9Moz and Mineral Resources of 80.5Moz1
• Lower East Boulder and lower Blitz projects offer additional production growth
potential
• 12.2 kilometres of undeveloped mineralised section between Stillwater and
East Boulder mines
Quality reserves with further upside 19
Stillwater offers significant growth potential
Stillwater Mine
90
89
212310
191
89
Livingston
Big Timber
McLeod
NYE
Fishtail
Red Lodge
Absarokee
Columbus Laurel
Billings
Sweet Grass
Park
Carbon
Big Horn
298
420
419
78
72
Yellowstone
East Boulder
Mine
87
Metallurgical Complex,
Recycling Facilities
Stillwater Mine
Source: Stillwater Mining1. At 31 December 2017
12.2km
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• Sibanye-Stillwater has made an all
equity offer to acquire 100% of Lonmin
• Value accretive to Sibanye-Stillwater
shareholders
• Neutral to Sibanye-Stillwater debt
profile – will not add debt to the
balance sheet
• R1.5 billion in annualised pre-tax cost
and operational synergies* expected
by 2021
• Should Sibanye-Stillwater shareholders
not approve the transaction,
agreement in principle to discuss asset
acquisition
A logical value accretive transaction
The proposed Lonmin acquisition
20
1. Northam
2. Anglo America
Platinum
3. Siyanda Resources
4. Sedibelo Platinum
5. Wesizwe Platinum
6. Royal Bafokeng
Platinum
7. Impala Platinum
8. Eastern Platinum
9. Glencore Xstrata
Sibanye-Stillwater
Lonmin
12
3
2
4
6
Western Bushveld
Joint Venture
Pandora Joint
Venture
7
7
66
5
9
18
*For further information in relation to the expected synergies, please refer to page 17 and pages 58 to 60 of the offer announcement dated 14 December 2017, available on
https://www.sibanyestillwater.com/investors/transactions/lonmin/documents.
Sable project
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• The political environment in South Africa has recently undergone significant
change and we anticipate this will be complemented by tangible actions
• While the strong rand creates short term headwinds we have confidence in
the longer term benefits
• Starting to see an improvement in relations in contrast to the fractious
environment of recent years
• A policy and regulatory environment conducive to business competitiveness
will promote investment and growth in the South African mining industry which
remains a critical part of the national economy and a significant employer
• Sibanye-Stillwater is committed to support inclusive growth in South Africa
through mining
• Our recent South African investments provide significant exposure to South
Africa and our company and its stakeholders stand to benefit significantly from
this improving environment
A vastly more favourable outlook for investment 21
South African “green shoots”
Operating review
22
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• Smooth integration of Stillwater
– Solid operational performance sustained
– Blitz project commissioned 3 months ahead of schedule
– Record recycling rates achieved
• Integration of Rustenburg exceeding expectations
– Over R1 billion annual synergies realised over 14 months
– Operational results continue to improve – profitability
restored
– Sustainable move into lower half of industry cost curve
• Gold operations restructured for sustainability
– Cooke closed, Beatrix West on watch list
– Expected R15,000/kg (U$S36/oz) (in 2017 terms) reduction in
total SA gold operation’s AISC in 2018
Transformational acquisitions balancing and de-risking the business 23
2017 – a transformative year operationally
*Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) is based on the formula included in the facility agreements for compliance with the debt covenant
formula. Full detail is contained in Sibanye-Stillwater’s 2016 Annual Financial Report
SA Gold; 51%
SA PGM; 19%
US PGM; 30%
Adjusted Ebitda* contribution (H2 2017)
SA Gold SA PGM US PGM
SA Gold; 44%
SA PGM; 38%
US PGM; 18%
Production contribution (H2 2017)
SA Gold SA PGM US PGM
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Clear cost benefits realised at Kroondal and Rustenburg operations from integration with Sibanye-Stillwater
Moving down the PGM AIC curves ‘16 – ‘17
24
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
18 000
20 000
Co
st R
/Oz
Two
riv
ers
Mo
toto
lo
Ea
st B
ou
lde
r
Stillw
ate
r
Zim
pla
ts
Kro
on
da
l
Un
ion
Ma
rula
Mo
dik
wa
Am
an
de
lbu
lt
Mo
ga
lakw
en
a
Lon
min
Mim
osa
Bo
oyse
nd
al
Ru
ste
nb
urg
Imp
ala
Bo
sch
ko
pp
ie
Un
ki
Zo
nd
ere
ind
e
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
18 000
20 000
Co
st R
/Oz
Two
riv
ers
Ea
st B
ou
lde
rStillw
ate
r
Mo
toto
lo
Kro
on
da
l
Zim
pla
ts
Ru
ste
nb
urg
Mo
ga
lakw
en
a
Mo
dik
wa
Mim
osa
Un
ion
Lon
min
Am
an
de
lbu
lt
Un
ki
Bo
oyse
nd
al
Imp
ala
Bo
sch
ko
pp
ie
Zo
nd
ere
ind
e
Ma
rula
Avg. basket price R12,128/ounce (6E)Avg. all-in costs = R12,589/ounce (6E)
Avg. basket price R12,699/ounce (6E)Avg. all-in costs = R12,277/ounce (6E)
Source: Citi Research, Company reports,
Note:
1. Includes cash costs, all capex exploration, corporate costs, cash taxes and other operating costs
2. Excluding base metal credits
3. Mines acquired by Sibanye-Stillwater in the Aquarius acquisition include Kroondal and Mimosa
Jun-16 all-in costs1 chart, by mine (R/6E ounce)2
Jun-17 all-in costs1 chart, by mine (R/6E ounce)2
Sibanye-Stillwater mines3 Other PGM mines
www.sibanyestillwater.com
500
600
700
800
900
1000
1100
1200
10 000
12 000
14 000
16 000
18 000
20 000
22 000
24 000
US$/o
z
R/o
z
Gold R/oz (LHS) PGM Basket R/4Eoz (LHS) PGM Basket US$/2Eoz (RHS)
AU R/oz YTD ave = 1% lower than H1 2017
Ave H1 2017:
R12,063/4Eoz
Ave H1 2017:
R16,331/oz Ave 2018 YTD:
R13,058/4Eoz
Ave 2018 YTD:
R16,119/ozAve H2 2017:
R17,087/oz
Ave H2 2017:
R13,074/4Eoz
US$/2Eoz PGM basket YTD ave = 26% higher than H1 2017
R/4Eoz PGM basket YTD ave = 8% higher than H1 2017
Ave H1 2017:
US$830/2Eoz
Ave 2018 YTD:
US$1,048/2Eoz
Ave H2 2017:
US$946/2Eoz
Dollar metal prices gains partially offset by rand strength – Stillwater basket price benefiting 25
Clear benefits from recent diversification
Source: Inet BFA
*2E and 4E basket prices are based on Sibanye-Stillwater SA PGM and US PGM prill split
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US region highlights1
• Integration of US region proceeding smoothly
• Strong operational and financial performance sustained since acquisition
– Mined production of 376,356 2Eoz at AISC of US$651/2Eoz as guided
– Blitz project commissioned 3 months ahead of schedule
– Record recycling volumes
• Achieved record throughput of approx. 517,148oz/ average of 64,644 oz per month fed
• EBITDA contribution of US$15 million
US region operations continue to perform well 26
43 300
51 400
56 600 58 300 56 400
64 644
30 000
55 000
80 000
Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 8 months ended
31 Dec 2017
Ou
nc
es
Monthly average PGM Recycle ounces fed
Source: Company
1. Results for the 8 months since acquisition in 2017
www.sibanyestillwater.com
• Integration exceeding expectations
• Implementation of Sibanye-Stillwater operating model yielding positive
results
– 2017 4E PGM production of 1,194,348oz exceeded guidance
– AISC of R10,432/4Eoz (US$778/4Eoz) in lower half of industry cost curve
• R1,034 million of synergies achieved in 14 months
– 25% more than the originally expected R800 million savings in 3-4 years
Successful integration ahead of schedule 27
SA PGM operations
*Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) is 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 cmtained in Sibanye-Stillwater’s Annual Financial Report 2016
327 990
590 712 603 636
289 200
465 600
1 128 400
0
200 000
400 000
600 000
800 000
1 000 000
1 200 000
H2 2016 H1 2017 H2 2017
SA PGMs_Production and adjusted EBITDA*
4E Production (oz) Adjusted Ebitda (R'000)
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23 805 21 418 22 216
451 352
485 441 480 010
400 000
410 000
420 000
430 000
440 000
450 000
460 000
470 000
480 000
490 000
500 000
-
5 000
10 000
15 000
20 000
25 000
30 000
H2 2016 H1 2017 H2 2017
R/k
g
kg
SA gold production and AISC
Production (oz) AISC
• H2 2017 production of 22,216kg (714,300oz) was 4% higher than for H1
and above guidance, despite the cessation of mining at Cooke
• AISC of R480,010/kg (US$1,114/oz) reflected the benefit of higher
production and the actions taken to address loss making operations
– Resilient to a strong rand environment
• Proposed vending of certain WRTRP assets to DRDGOLD for a 38%
shareholding, realises immediate value and while retaining upside
exposure
Ongoing monitoring of operations to protect profitability 28
SA gold operations
Source: Company financials
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Sibanye-Stillwater is the lowest cost major gold producer in South Africa 29
We have a proven operating model
Source: Company reports for 12 months ended 31 December 2017
3 344
2 466
2 224 2 111
1 500
1 700
1 900
2 100
2 300
2 500
2 700
2 900
3 100
3 300
3 500
Anglogold Gold Fields (South
Deep)
Harmony Sibanye-Stillwater
R/t
on
ne
2017 SA gold industry UG operating unit costs (SA only)
1 340
1 242
1 195
1 128
1000
1050
1100
1150
1200
1250
1300
1350
1400
Gold Fields (South
Deep)
Anglogold Harmony Sibanye-Stillwater
US$/o
z
2017 SA gold industry all-in sustaining costs (SA only)
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Positive operational outlook
2018 Guidance
Source: Company forecasts¹ Estimates are converted at an exchange rate of R13.05/US$
30
Production All-in sustaining costs Total capital
SA Gold operations¹38,500 - 40,000 kg
(1.24 - 1.29 Moz)
R475,000 - 495,000/kg
(US$ 1,130 - 1,180/oz)
R3,500 million
(US$268 million)
SA PGM operations¹ 1,100 - 1,150 koz (4E PGMs)R10,750 - 11,250/4Eoz
(US$825 - 860/4Eoz)R1,500 million
(US$115 million)
US PGM operations580 – 610 koz (2E PGMs
mine production)US$650 - 690/oz ~US$220 million
Financial performance
31
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US dollar SA rand
Six months ended Six months ended
Dec 2016 Dec 2017 KEY STATISTICS Dec 2017 Dec 2016 % change
SOUTHERN AFRICA (SA) REGION
Gold operations
1,268 1,274 US$/oz Average gold price R/kg 549,064 569,535 (4)
334.5 228.0 US$m Adjusted EBITDA Rm 3,052.5 4,673.5 (35)
35 25 % Adjusted EBITDA margin % 25 35 (28)
1,005 1,114 US$/oz All-in sustaining cost R/kg 480,005 451,352 6
PGM operations1
874 975 US$/4Eoz Average basket price R/4Eoz 13,064 12,204 7
20.7 84.6 US$m Adjusted EBITDA Rm 1,128.4 289.2 290
9 16 % Adjusted EBITDA margin % 16 9 72
730 779 US$/4Eoz All-in sustaining cost R/4Eoz 10,432 10,195 2
UNITED STATES (US) REGION
PGM operations2
947 US$/2Eoz Average basket price R/2Eoz 12,699
133.1 US$m Adjusted EBITDA Rm 1,774.5
25 % Adjusted EBITDA margin % 25
660 US$/2Eoz All-in sustaining cost R/2Eoz 8,899
GROUP
355.2 445.7 US$m Adjusted EBITDA Rm 5,955.4 4,962.7 20
214.9 30.6 US$m Basic earnings Rm 366.3 3,140.3 (88)
98.5 148.4 US$m Headline earnings Rm 1,957.9 1,393.8 41
110.7 39.9 US$m Normalised earnings Rm 522.2 1,526.1 (48)
32
Salient features
1 The SA PGM operations’ results for the six months ended 31 December 2016 include the Rustenburg Operations for two months since acquisition2 The Platinum Group Metals (PGM) production in the SA Region 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)
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33
Income statement
Six months ended
KEY STATISTICS
31 Dec
2017
31 Dec
2016
Revenue 26,692.4 16,536.0
Cost of sales (23,699.0) (13,493.8)
2,940.0 3,042.2
Net finance expense (1,311.5) (348.3)
(Loss)/gain on financial instruments (853.1) 144.2
Care and maintenance (128.7) (218.2)
Change in estimate of environmental rehabilitation
related payables and receivables (193.6) (97.5)
Impairments (1,615.0) (562.0)
Restructuring costs (581.8) (148.8)
Net other (246.7) (37.8)
Gain on acquisition - 2,178.6
(Loss)/profit before royalties and tax (1,937.0) 3,952.4
Royalties (225.6) (301.1)
Mining and income tax 2,532.2 (696.7)
(Loss)/profit 369.6 2,954.6
Loss on financial instruments
• The expected free cash flows to repay certain obligations were revised, and the carrying value of the net payables related to the Rustenburg Operations acquisition increased by R1,052 million.
• Derivative financial instrument related to the US$450 million Convertible Bond was revalued, and decreased by R116 million.
Impairments
• WRTRP assets, and allocated goodwill impaired by R1,344 million due to low uranium price. Sibanye-Stillwater will still retain full exposure to the Cooke TSFs following the completion of the DRDGOLD Transaction.
• De Bron-Merriespruit exploration and evaluation asset impaired by R227 million, as no further exploration expenditure is planned for 2018.
Restructuring costs
• The cessation of mining at the Cooke operations and other restructuring - R582 million.
Mining and income tax
• Deferred tax decrease - a credit of R2,995 million (US$225 million) from a charge of R79 million (US$5 million, which mainly due to the impact of the Tax Cuts and Jobs Act in the United States, signed into legislation on 22 December 2017.
• Deferred tax rate changed from 37.7% to 24.2% and a deferred tax benefit of US$205 million (R2,532 million) was recognised.
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• 22 December 2017 - new federal tax reform legislation enacted in the United
States, resulting in significant changes from previous tax law.
• Effective from 1 January 2018 the 2017 Tax Act reduces the federal corporate
income tax rate to 21% from 35%.
• The rate change, together with other immaterial changes, resulted in a
decrease in our US Region net deferred tax liabilities of R2,532 million (US$205
million) and a corresponding deferred tax benefit in 2017.
• Federal income tax expense 2018 will be based on the new rate.
• Still in the process of fully understanding the implications of the tax reform
changes, however, early indications are that the changes will be net-positive
for the US Region and net positive for the Group earnings, assuming the US
Region delivers on its targets over the short, medium and long term.
Providing possible, additional value 34
Positive outcome of revised US Tax laws
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• Refinancing and upsizing of US$350 million RCF has begun
– Anticipate closing of syndication during March 2018
– Initial indication is that terms and conditions will be largely the same
– Liquidity position will be enhanced
35
Liquidity position
(R1 545)
(R4 124)
R1 137
R5 537 R5 945 R5 451 R6 651
(R10 000)
(R5 000)
R 0
R5 000
R10 000
2018 2019 2020 2021 2022 2023 2024 2025
Debt Maturity Ladder - R millions
Net Cash (incl GBF's) Available Facilities USD RCF ($350m) ZAR RCF (R6bn)
2022 Bonds ($500m) 2023 Convertible ($450m) 2025 Bonds ($550m)
Source: Company data
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• Deleveraging manageable under a number of scenarios.
• Profile under current strong rand environment approximates Sibanye-Stillwater
budget assumptions.
• Covenants extended to 3.5x net debt: EBITDA until end 2018, 2.5x thereafter.
• Various levers available due to sustained strong R/$ exchange rate.
36
Deleveraging profile
2017 2018 2019 2020 2021
Consensus - Jan 2018 2.56 x 2.14 x 1.78 x 1.02 x 0.45 x
Spot 30 Jan 2018 2.56 x 2.27 x 1.96 x 1.64 x 1.02 x
Spot 13 Feb 2018 2.56 x 2.49 x 2.22 x 1.95 x 1.28 x
Budget 2018 2.56 x 2.48 x 2.22 x 1.94 x 1.24 x
0.00 x
0.50 x
1.00 x
1.50 x
2.00 x
2.50 x
3.00 x
Exp
ec
ted
ND
:EB
ITD
A
Expected gearing evolution at & exchange rates
Source: Bloomberg, Company forecasts
Path to appropriate
value recognition
37
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87%
(46%)(60%)
(25%)
(79%)
14%
(40%)
(98%)-100%
0%
100%
200%
300%
400%
500%
2013 2014 2015 2016 2017 2018
South African precious metal peers
Sibanye-Stillwater AngloGold Gold Fields Harmony AngloPlats
Impala Northam RBPlat Lonmin
Outperforming and rerating against peers through period of significant growth 38
Relative peer share price performance
Source: Bloomberg
Note: Share prices have been adjusted for spin-offs, stock splits/consolidations, stock dividend/bonus, and rights offerings/entitlements
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205%
(43%)(61%)(76%)
52%
(29%)(32%)
(90%)-100%
0%
100%
200%
300%
400%
500%
600%
2013 2014 2015 2016 2017 2018
Selected South African mining company market capitalisations
Sibanye-Stillwater AngloGold Gold Fields Harmony AngloPlats
Impala Northam RBPlat Lonmin
Sibanye-Stillwater has significantly grown its market value while returning to shareholders, R4bn* in dividends 39
Relative peer market capitalisation
Source: Bloomberg
* Cash dividends declared from listing in 2013 to end 2016, source: company
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77%
23%
2016A
Sibanye-
Stillwater
Africa Gold
peers
International
Gold Majors
SA PGM
40
But, is it fairly valued by the investor community?
Source: Company guidanceNotes: Year 2021 Includes revenues and PGM production from Lonmin*2021 forecast assumptions: R/US$15.15 exchange rate, Pt:US$1249/oz, Pd: US$917/oz, Rhodium: US$1220/oz, Gold: US$1 216/oz, Ruthenium: US$/oz 39/oz; Iridium: US$ 548/oz, Cobalt US$20/lb, NickelUS$7/lb, Copper US$ 3 /lb; Uranium US$42/lb; Chrome (Met) US$ 180 /t, Chrome (chemical) US$250/t
…reflected in ratings?
• PGM vs gold?
• International vs Africa?
• Further upside from pending transactions?
18e
19e
Is the transformation…
• Diversification in stable jurisdiction
• Broadening portfolio to include PGM
4 5
100%
0%
2016A
80%
20%
0%
2017A
Revenue by geography (%)
Production by metal (%)
Source: Illustrative based on Bloomberg data3) Data as of 20 February 20184) Includes AngloGold and Gold Fields5) Includes Newmont, Barrick, Newcrest, Goldcorp, Agnico-Eagle and Randgold6) Includes Amplats, Impala, Northam and Royal Bafokeng
6
Illustrative EV/EBITDA 2018e and 2019e3
47%53%
0%
2017A
61%21%
18%
2021F*
28%
18%54%
2021F
Conclusion
41
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42Well positioned to benefit from any upside in metal prices
Maintaining
our focus on
operational
excellence
Deleveraging
our balance
sheet
Improving
our position
on the
global
industry cost
curves
Addressing
our SA
discount
Consistently
delivering on
our market
commitments
Pursuing value
accretive
growth based
on
strengthened
equity rating
Strengthen our position as a
leading international precious
metals mining company by:
Focussed on our three-year strategic goal
Contacts
James Wellsted/ Henrika Ninham
Tel:+27(0)83 453 4014/ +27(0)72 448 5910
Website: sibanyestillwater.com43
Appendix
44
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Aquarius and Rustenburg realised synergies
Integration of Aquarius and the Rustenburg operations has exceeded expectations
Category Summary of key initiatives Initial benefits
identified (Rm)
Realised
benefits
At 30 June
2017 (Rm)
Realised
benefits
since
acquisition at
31 Dec 2017
(Rm)
Resource optimisation
• Employees and management configured to reflect the Sibanye-Stillwater operating model 200
246 456• Consolidation of duplicated production and support functions 237
Sourcing and stores management
• Improved procurement and supply chain management
26 166
137
• Owner Maintenance 98
Closure of corporate offices
• Rosebank, Centurion and Perth offices 69 62 62
Optimisation
• Property• Consolidation of training footprint• Engineering• Other
268 68 164
Total Operating cost synergies R800m (over 3 years)
R542m (over 8 months)
R918m (over 14months)
Additional savings • Real capital savings realised (not deferred) 98 116
Realised integration synergies R800m(over 3 years)
~ R640m(over 8 months)
~ R1,034m (over 14months)
*Source: Company data
Kroondal baseline was 2016 actual (July 2015 to June 2016),Rustenburg: Baseline was the PFS – re-based as a standalone company
Savings identified include those related to decrease in labour numbers
45
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• Overhead costs (R730m per annum by 2021)
– Corporate office rationalisation (closing
the London office and delisting)
– Regional shared services
– Operational (mining) services
– One-off R80m cost required to achieve
these synergies
• Processing synergies
– Differential cost benefits of R780m by
2021 and an average of approximately
R550 per annum from 2021
– Approximately R1bn of capex required
for the purchase of a new furnace
Quantified synergies 2 Incremental synergy potential 2
• Ability to mine through existing mine boundaries
• Optimal use of surface infrastructure
• Optimising the mining mix
• Prioritisation of projects and new growth capital
• Capital reorganisation in line with new consolidated regional plan
46
Material synergies with Lonmin operations
Pre-tax synergies of approx. R1.5bn per annum by 20211
Note:
1. For further information in relation to expected synergies, please refer to page 17 and pages 58 to 60 of the offer announcement,
dated 14 December 2017, available at https//sibanyestillwarer.com/investors/transactions/lonmin/documents
2. For overhead synergies, total savings anticipated when fully implemented in FY21; varies per toll agreement production
throughput for processing synergies with average calculated between 2021 and 2032
3. Synergies which are unquantifiable at this point in time
Realisation of synergies will ensure operational viability
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• Vending selected gold surface processing assets and tailings storage facilities
(TSFs) into DRDGOLD for a 38% stake worth c.R1.3 billion*
• Option to increase ownership in DRDGOLD to 50.1% within 24 months
• Ownership of the Cooke and Ezulwini plants and associated uranium and gold
TSFs retained
• DRDGOLD will develop the West Rand Tailings Retreatment Project (WRTRP) in
phases, culminating in the development of a Central Processing Plant (CPP)
and RTSF
• Timeline and approvals– Competition commission approval has been received
– DRDGOLD shareholder approval required - estimate closing within H1 2018
47
DRDGOLD transaction
An innovative and value accretive partnership
* DRDGOLD’s closing share price of R4.96 on 20 November 2017 multiplied by the 265 million shares to be issued to Sibanye-Stillwater
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Ample mine life to sustain the Group in the long-term 48
Production profile for the next 20 years
Note: Profile is based on reserves declared as at 31 December 2017 and excludes the Burnstone project and the West Rand Tailings Retreatment Project
0
500 000
1 000 000
1 500 000
2 000 000
2 500 000
3 000 000
3 500 000
4 000 000
4 500 000
5 000 000
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037
Ou
nc
es
Expected gold and PGM life of mine production (Next 20 Years)Gold Operations, Gold oz
SA PGM operations, 4E PMG oz
US PGM operations (US), 2E PGM oz
Recycling (US), 2E PGM oz
Lonmin Operations, 4E PGM oz
Gold Fields Plan, Gold oz
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Mineral Resources Mineral Reserves31 Dec 2017 31 Dec 2016 31 Dec 2017 31 Dec 2016
GoldTonnes
(Mt)
Grade
(g/t)
Gold
(Moz)
Gold
(Moz)
Tonnes
(Mt)
Grade
(g/t)
Gold
(Moz)
Gold
(Moz)
SA region 991.1 2.7 85.111 102.035 807.4 1.0 25.737 28.694
US region 2,614.0 0.1 6.321
Total gold 3,605.1 0.8 91.432 102.035 807.4 1.0 25.737 28.694
PGMsTonnes
(Mt)
Grade
(g/t) (Moz) (Moz)
Tonnes
(Mt)
Grade
(g/t) (Moz) (Moz)
Total SA PGMs
(4E)837.2 4.5 122.095 126.478 249.4 2.8 22.358 23.186
PGMsTonnes
(Mt)
Grade
(g/t) (Moz) (Moz)
Tonnes
(Mt)
Grade
(g/t) (Moz) (Moz)
Total US PGMs
(2E)300.9 8.7 84.447 41.8 16.3 21.903 21.198
Uranium
Operations
Tonnes
(Mt)
Grade
(kg/t)
U3O8
(Mlb)
U3O8
(Mlb)
Tonnes
(Mt)
Grade
(kg/t)
U3O8
(Mlb)
U3O8
(Mlb)
Total Uranium 682.2 0.082 123.051 159.507 670.8 0.065 96.083 113.226
Copper ProjectsTonnes
(Mt)
Grade
(%)
Copper
(Mlb)
Copper
(Mlb)
Tonnes
(Mt)
Grade
(%)
Copper
(Mlb)
Copper
(Mlb)
Total Copper 2,765.7 0.306 18,661.1
Quality Resources and Reserves 49
Summary of Mineral Reserves and Resources
Note: Please refer to the announcement for a full update to the Mineral Resources and Reserves including pricing assumptions, issued on 19 February 2018, at
https://www.sibanyestillwater.com/investors/news/company-announcements/2018