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29.10.2020
Sibanye Stillwater: Operating Update Quarter Ended 30 September 2020

 

Johannesburg, 29 October 2020: Sibanye Stillwater Limited (Sibanye-Stillwater or the Group) (JSE: SSW & NYSE: SBSW - https://www.commodity-tv.com/ondemand/companies/profil/sibanye-stillwater-ltd/ ) is pleased to provide an operating update for the quarter ended 30 September 2020. Financial results are only provided on a six-monthly basis.

 

 

SALIENT FEATURES FOR THE QUARTER ENDED 30 SEPTEMBER 2020

 

-          Record quarterly adjusted EBITDA3 of R15,592 million (US$922 million)

-          Production build-up at SA operations post lockdown restrictions delivered ahead of schedule

-          Leverage 40% lower compared to H1 2020 with net debt: adjusted EBITDA reducing to 0.33x at end Q3 2020

-          Net debt reduced by further R11,164 million (US$666 million) following conversion of convertible bond during October 2020

-          Another solid performance from the SA PGM Operations

 

 

 

 

 

 

 

 

 

 

US dollar

 

 

 

 

 

SA rand

Quarter ended

 

 

 

 

 

Quarter ended

Sep 2019

Jun 2020

Sep 2020

 

KEY STATISTICS

 

Sep 2020

Jun 2020

Sep 2019

 

 

 

 

UNITED STATES (US) OPERATIONS

 

 

 

 

 

 

 

 

PGM operations1,2

 

 

 

 

147,353

156,155

147,835

oz

2E PGM production2

kg

4,598

4,857

4,583

202,141

175,674

202,661

oz

PGM recycling1

kg

6,303

5,464

6,287

1,388

1,733

1,898

US$/2Eoz

Average basket price

R/2Eoz

32,095

31,116

20,362

123.4

219.7

190.8

US$m

Adjusted EBITDA3

Rm

3,226.7

3,943.5

1,810.0

27

24

34

%

Adjusted EBITDA margin3

%

34

24

27

791

838

875

US$/2Eoz

All-in sustaining cost4

R/2Eoz

14,803

15,038

11,603

 

 

 

 

SOUTHERN AFRICA (SA) OPERATIONS

 

 

 

 

 

 

 

 

PGM operations2

 

 

 

 

518,623

239,756

427,715

oz

4E PGM production2

kg

13,303

7,457

16,131

1,385

1,724

2,179

US$/4Eoz

Average basket price

R/4Eoz

36,840

30,942

20,316

199.7

56.1

549.2

US$m

Adjusted EBITDA3

Rm

9,287.1

1,007.0

2,930.3

25

18

58

%

Adjusted EBITDA margin3

%

58

18

25

1,104

1,338

1,004

US$/4Eoz

All-in sustaining cost4

R/4Eoz

16,985

24,011

16,190

 

 

 

 

Gold operations

 

 

 

 

287,330

165,544

288,938

oz

Gold production

kg

8,987

5,149

8,937

1,451

1,685

1,845

US$/oz

Average gold price

R/kg

1,002,945

972,396

684,172

57.4

31.0

190.3

US$m

Adjusted EBITDA3

Rm

3,218.2

557.1

842.6

14

12

37

%

Adjusted EBITDA margin3

%

37

12

14

1,386

1,543

1,316

US$/oz

All-in sustaining cost4

R/kg

715,345

890,444

653,666

 

 

 

 

GROUP

 

 

 

 

377.4

299.8

922.1

US$m

Adjusted EBITDA3

Rm

15,592.1

5,382.3

5,536.1

14.67

17.95

16.91

R/US$

Average exchange rate using daily closing rates

 

 

 

 

 

1   The US PGM operations’ underground production is converted to metric tonnes and kilograms, and performance is translated to SA rand (rand). In addition to the US PGM operations’ underground production, the operation treats recycling material which is excluded from the 2E PGM production, average basket price and All-in sustaining cost statistics shown. PGM recycling represents palladium, platinum, and rhodium ounces fed to the furnace

2   Platinum Group Metals (PGM) production in the SA operations is principally platinum, palladium, rhodium and gold, referred to as 4E (3PGM+Au), and in the US operations is principally platinum and palladium, referred to as 2E (2PGM)

3   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. For a reconciliation of profit(loss) before royalties and tax to adjusted EBITDA see “Adjusted EBITDA reconciliation – quarters”. Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue

4   See “salient features and cost benchmarks quartersfor the definition of All-in sustaining cost

 

 

 

 

 

Stock data for the quarter ended 30 September 2020

JSE Limited - (SSW)

Number of shares in issue1

 

Price range per ordinary share (high/low)

R36.75 to R57.59

- at 30 September 2020

2,924,560,172

Average daily volume

19,276,266

- weighted average

2,676,024,386

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

Free Float

99%

Price range per ADR (high/low)

US$8.64 to US$13.44

Bloomberg/Reuters

SSW SJ/SSWJ.J

Average daily volume

3,390,990

1 The number of shares in issue at 30 September 2020 includes 248 430 319 shares block listed which were issued post the September 2020 quarter pursuant to the convertible bond conversions

 

 

OVERVIEW FOR THE QUARTER ENDED 30 SEPTEMBER 2020 COMPARED TO QUARTER ENDED 30 SEPTEMBER 2019

 

The operational recovery from the severe lockdown in SA in response to the COVID-19 pandemic has progressed well. The proactive and decisive response by the Group to address the COVID-19 challenges, while ensuring the integrity of the operating environment and the safety of all our employees has been pleasing. Comprehensive health and safety protocols, which were developed and implemented early on, have proven to be effective. In the interests of employee safety and operational continuity a more measured and phased production build up was deemed appropriate, particularly as employees from neighbouring countries and other provinces in South Africa were recalled.

 

The build-up to normalised production levels at the SA operations has progressed better than planned and the manner in which employees have been reintegrated into the operations without a notable increase in infection rates or operational disruptions, validates the more gradual recall and production build-up strategy.

 

By the end of Q3 2020, the SA gold operations had recalled approximately 92% of the workforce and achieved a production run rate of approximately 99% of planned levels, with the SA PGM operation having recalled approximately 88% of the workforce with a production run rate of 93% of planned levels achieved. By mid-October 2020, both the SA gold and PGM operations were operating at close to planned production rates with the employee complement close to pre-COVID-19 levels.

 

While the US PGM operations have continued to operate throughout the year, COVID-19 protocols, particularly compliance with social distancing requirements, has had an ongoing negative impact on productivity. The social distancing impact is most prevalent on transport to and from work, with employees living throughout the state of Montana and travelling longer distances to work than in SA. Restricted access to the operations has also affected shift arrangements and blasting schedules, resulting in a negative 8% impact on productivity.

 

COVID-19 infection rates at the SA operations, have declined significantly after peaking in July 2020 and while there has been a slight increase in infections in recent weeks, we do not anticipate a significant rise in cases or significant risk of the operations being closed. There has been a sharp spike in infections in the US and the state of Montana, and there has been a corresponding increase in positive cases at the US PGM operations. Again, we believe that our protocols are effective to manage the situation and ensure the safety of employees as well as the integrity of the operations insofar as practicable.

 

Elevated precious metal prices for Q3 2020, together with the 15% depreciation of the rand against the dollar during 2020 year-to-date, has ensured record prices for the basket of metals produced in SA and close to record levels in the US. Despite still being impacted by COVID-19 constraints during Q3 2020, the consistent operational performance coupled with high commodity prices, underpinned an exceptional financial result for the Group for Q3 2020.

 

Group adjusted EBITDA for Q3 2020 increased by 182% (or R10,056 million/US$545 million) to R15,592 million (US$922 million), compared with the same period in 2019. This represents another record quarterly financial result, surpassing the full-year Group adjusted EBITDA of R14,956 million (US$1,034 million) for 2019. This outstanding result reflects the significant value accretive PGM acquisition strategy embarked on from 2016.

 

Strong cash flow generation drove a further reduction in net debt during the period, despite the payment of the R1.4 billion H1 2020 dividend. Net debt: adjusted EBITDA (ND: adjusted EBITDA) at the end of Q3 2020, decreased by 40% to 0.33x from 0.55x at the end of June 2020. Subsequent to quarter end, the soft call option on the Convertible Bond (CB) was exercised and the CB was fully redeemed by 19 October 2020. On a proforma basis there is thus a further reduction in net debt of R11,164 million (US$666 million), resulting in ND: adjusted EBITDA declining on a proforma basis to 0.05x* at 30 September 2020.

 

Available funding increased by 19% from R23,799 million (US$1,372 million) at 30 June 2020 to R28,202 million (US$1,683 million) at 30 September 2020, comprising cash on hand of R15,151 million (US$904 million) (30 June 2020: R12,041 million (US$694 million)), committed undrawn facilities of R11,869 million (US$708 million) (30 June 2020: R9,000 million (US$519 million)), and available uncommitted overnight facilities of R1,182 million (US$71 million) (30 June 2020: R2,758 million (US$159 million)).

 

The strategic deleveraging which has been a primary focus since 2017 is now complete. At current commodity prices and the prevailing exchange rate, and with the SA operations having attained normalised production run rates, the Group is likely to continue generating significant cash flow. Following the resumption of the dividend in August 2020, the Group is well positioned to deliver superior total returns to shareholders. We will continue to maintain a disciplined approach to capital allocation, with the primary focus on securing the future of the company and delivering on our vision of superior value creation for all our stakeholders by prioritising dividends, share buy backs when appropriate, and smart, value accretive growth.

 

* Certain information presented in this quarterly update constitutes pro forma financial information. The responsibility for preparing and presenting the pro forma financial information, its completeness and accuracy is that of the directors of Sibanye Stillwater. The information is presented for illustrative purposes only. Because of its nature, the pro forma financial information may not fairly present the Company’s financial position, changes in equity, and results of operations or cash flows. The information has not been audited or reviewed or reported on by external auditors of the Company

 

SAFE PRODUCTION

 

The safe production performance for Q3 2020 was mixed, with another good quarterly safety performance from the SA PGM operations, offset by a decline in the safety performance of the SA gold operations.

 

The SA PGM operations delivered another fatality free quarter (mirroring the zero fatalities for Q2 2020), relative to two fatalities experienced in Q3 2019. On 13 October 2020, the SA PGM operations achieved a milestone of four million fatality free shifts with the last fatality recorded at Siphumelele shaft in March 2020.

 

Regrettably, after over 13 million shifts and almost two years without any fatal incidents, the SA gold operations suffered two fatalities during Q3 2020. On 8 August 2020, Mr Mfuneka Manikela, a contractor employee at Kloof Thuthukani shaft, was struck by ore flowing down the raise towards the tip while he was travelling in a centre gully to collect equipment. Mr Manikela was 36 years old and is survived by his wife. On 13 August 2020 Mr Bonginkosi Hlophe, a learner miner at Driefontein Hlanganani shaft, was struck by a gravity fall of ground while travelling above the strike gully. Mr Hlope was 38 years old and is survived by his fiancée and three dependents. Our heartfelt condolences go out to the family, friends and colleagues of Mr Manikela and Mr Hlophe. Both incidents are being investigated together with the relevant stakeholders and appropriate support has been provided to both families.

 

Despite these fatalities we believe that our safety strategy remains appropriate and we will continue to work towards our goal of zero harm. An improvement in serious injury frequency rate (SIFR), lost day injury frequency rate (LDIFR) and the total injury frequency rates of 12%, 20% and 23% respectively was achieved for the quarter, compared to the same period in 2019 for the SA gold operations. The focus on proactively managing leading indicators, in line with our Safe Production Strategy, will remain key in achieving ongoing continual improvement.

 

The US PGM reported a total reportable injury frequency rate (TRIFR) of 13 per million hours for Q3 2020, compared to 8.5 per million hours for Q3 2019. The majority of incidents were due to slips, trips and falls, which primarily resulted in minor lacerations.

 

OPERATING REVIEW

 

US PGM operations

 

Compliance with COVID-19 protocols continued to affect productivity at the US PGM operations. Logistical constraints (transport of employees) and the need to stagger shift arrangements and blast cycles to accommodate social distancing has resulted in productivity declines of approximately 8% versus pre-COVID-19 levels. For 2020 this is equivalent to a loss of approximately 20,000 2Eoz of mined production. Mined 2E PGM production for Q3 2020 of 147,835 2Eoz was in line with the comparable period in 2019. Production from the Stillwater mine (including Stillwater West and Stillwater East) of 91,940 2Eoz for Q3 2020, was 1% lower than for the comparable period in 2019. The East Boulder mine (EB) produced 55,895 2Eoz, 3% higher than for Q3 2019. Mined tonnes milled for Q3 2020 increased to 370,201 tonnes, 7% higher than for Q3 2019. Plant head grade was 13.6 g/t in Q3 2020, 6% lower than for Q3 2019. Head-grade challenges were largely attributed to lower than expected availability of higher grade stopes. Remedial action has been taken, and a recovery in grade is anticipated for Q4 2020. PGM sales for Q3 2020 of 143,716 2Eoz were 3% higher than for Q3 2019, largely due to the timing of production deliveries in Q3 2020.

 

All-in sustaining cost (AISC) of US$875/2Eoz for Q3 2020 was 11% higher than for Q3 2019, due to lower than planned 2E PGM production from the Stillwater mine complex and higher royalties and insurance. The average 2E PGM basket price for Q3 2020, was approximately 96% higher than the average basket price used for planning, with a consequential increase in royalties and insurance accounting for approximately US$51/2Eoz (6%) of the increase in AISC year-on-year.

 

The recycling operation fed an average of 25tpd of spent catalyst for Q3 2020. Recycling inventory normalised at approximately 200 tonnes following the accelerated processing of inventory in Q2 2020, although has increased subsequent to quarter end due to planned maintenance at the smelter early in Q4 2020. Ongoing COVID-19 related logistical and liquidity constraints constraining the global recycling industry, continued to affect recycle receipts during Q3 2020 although recycle receipts have begun normalising and are trending back to pre-COVID-19 levels. It should be noted that recycle receipts are region specific, with COVID-19 continuing to constrain global supply from some regions.

 

The 2E PGM basket price for Q3 2020 averaged US$1,898/2Eoz, 37% higher than for Q3 2019, driving the mined adjusted EBITDA margin to 62% from 57% in Q3 2019. Adjusted EBITDA for the US PGM operations increased by 55% year-on-year to US$191 million (R3,227 million), with the recycling operation contributing US$10 million (R170 million). After accounting for recycling, the blended adjusted EBITDA margin for the US PGM operations increased from 27% in Q3 2019 to 34% in Q3 2020.

 

Total capital expenditure for Q3 2020 amounted to US$69 million and was mainly spent on the Blitz and Fill the mill (FTM) growth projects (54% or US$37 million).

 

The Blitz project has been reviewed following the suspension of growth capital activities due to COVID-19 during Q1 and Q2 2020, which, as signalled in our H1 2020 results, further delayed the project schedule. The project review has indicated a delay of up to two years, with production from Blitz now expected to reach a steady state run rate of approximately 300,000 2Eoz per annum by 2024. Further detail on the project will be provided in Q1 2021, following the completion of the annual production planning cycle.The FTM project is on schedule and on budget, building up to an annualised production run rate of approximately 40,000 2Eoz per annum from December 2020. This project yields an estimated net present value of over US$460m at spot 2E PGM prices.

 

SA PGM operations

 

Despite ongoing COVID-19 related constraints at the SA PGM operations during Q3 2020, the ongoing production build-up was well managed, with costs kept under control. Primarily due to the progressive production build up during the quarter, 4E PGM production of 427,715 4Eoz for Q3 2020 was 18% lower than for the comparable period in 2019.

 

Costs were well managed with AISC increasing by only 5% year-on-year to R16,985/4Eoz (US$1,004/4Eoz), despite lower production and above inflation electricity tariffs and wage adjustments. Higher state royalty tax arising from the increase in revenue and profitability were partly offset by financial benefits accruing to the Marikana smelting and refining operations from the processing of Purchase of Concentrate (PoC) from Rustenburg, Kroondal and Platinum Mile following the declaration of Force Majeure (FM) by Anglo American Platinum (Anglo Platinum) during March 2020 after breakdowns at its converter plants (ACP).

 

The average 4E PGM basket price of R36,840/4Eoz (US$2,179/4Eoz) for Q3 2020 was 81% higher than for Q3 2019. This was primarily driven by significant price gains in rhodium (166%) and palladium (41%) period-on-period and a 15% weaker rand exchange rate. Rhodium and palladium respectively contributed approximately 42% and 30% of the spot 4E PGM basket revenue for Q3 2020, despite comprising just 8% and 30% of the 4E prill split. The record average 4E basket price combined with the steady increase in production post the COVID-19 lockdown, enabled a 217% increase in adjusted EBITDA for the SA PGM operations to R9,287 million (US$549 million) for Q3 2020, with the adjusted EBITDA margin more than doubling from 25% for Q3 2019 to 58% for Q3 2020.

 

Notably, the R9,287 million adjusted EBITDA generated during this quarter accounts for 72% of the R12.8 billion aggregated initial acquisition cost of Kroondal, Rustenburg and Marikana. Considering the higher prevailing average PGM basket price in Q4 2020 to date, combined with the return to normalised production rates during October, the outlook for Q4 2020 is extremely positive.

 

PGM production of 154,904 4Eoz from the Rustenburg operation was 14% lower than for Q3 2019. Underground production was 17% lower due to the ongoing build-up of production post the COVID-19 lockdown. This was partly offset by an 18% increase in production from the surface operations, which were less affected by COVID-19 related restrictions. AISC for the Rustenburg operation increased by 19% year-on-year to R18,864/4Eoz (US$1,116/4Eoz), primarily due to lower production, compounded by above inflation increases in wages and electricity tariffs, with higher royalty tax adding approximately R1,624/4Eoz (US$96/4Eoz). At normalised production levels and adjusting for the higher royalty tax, AISC would have been R14,813/4Eoz (US$876/4Eoz), well within SA inflation. The combined AISC margin for the Rustenburg operation increased from 31% for Q3 2019 to 59% for Q3 2020.

 

The Kroondal operation delivered another solid operational performance despite COVID-19 constraints. Despite being a primarily mechanised operation, a relatively higher proportion of Kroondal’s labour complement comes from neighbouring countries and other SA provinces which, due to COVID-19 travel restrictions on travel, resulted in a more delayed recall of employees, compounded by the need to quarantine or isolate returning employees. As a result, 4E PGM production of 53,299oz was 21% lower for Q3 2020 than for Q3 2019. Absolute costs were well managed, with above inflationary electricity tariff and wage increases being absorbed, but due to the lower production volumes, AISC increased by 18% to R12,805/4Eoz (US$757/4Eoz) year-on-year, considerably less than the 93% year-on-year increase in the average PGM basket price.

 

PGM production from the Marikana operation for Q3 2020 of 177,717 4Eoz was 26% lower than for Q3 2019. The production decline was again primarily due to the gradual production build, with the buildup at the conventional Marikana shafts slower than at the more mechanised Rustenburg operation. The Marikana operation also employs a higher proportion of foreign nationals and employees from other provinces than the Rustenburg operations, which further delayed the production build up. Restructuring of the Marikana operations and closure of three Generation 1 shafts, which produced 10,537 4Eoz for Q3 2019, also contributed to the decline in production year-on-year. AISC of R16,779/4Eoz (US$992/4Eoz) was 7% lower than R17,955/4Eoz (US$1,224/4Eoz) for Q3 2019 despite significantly lower production. This partly reflects the ongoing realisation of cost synergies from the integration of the Marikana operation into the SA PGM operations, as well as one-off benefits from processing of PoC from Rustenburg, Kroondal and Platinum Mile (due to the Anglo Platinum ACP FM) at the Marikana smelting and refining operations.

 

Revenue from chrome sales amounted to R309 million for Q3 2020, 6% lower than revenue of R330 million for Q3 2019 due to lower volumes produced and lower prices year-on-year. Chrome sales of 429kt for Q3 2020, compared with 591kt for Q3 2019 with the average chrome price for Q3 2020 of US$138/t, 6% lower than the Q3 2019 average price of US$147/tonne.

 

Mimosa was largely unaffected by COVID-19 and continued to perform steadily. Attributable 4E PGM production of 31,572 4Eoz was 23% higher than for Q3 2019.

 

SA gold operations

 

The post lockdown production build up at the SA Gold operations progressed smoothly and ahead of plan. Gold production of 8,987kg (288,938oz) for Q3 2020 was flat year-on-year, with production building up during both Q3 2020 and Q3 2019 following significant operational disruptions in prior periods. During H1 2020 operations were suspended due to COVID-19 and during H1 2019, the production was significantly affected by the five-month AMCU strike. AISC of R715,345/kg (US$1,316/oz) remained elevated due to lower production, above inflation electricity tariff and wage increases.

 

Gold production (excluding DRDGOLD) of 7,473kg (240,262oz) was similar to the comparable period in 2019, with AISC of R746,127/kg (US$1,372/oz), 9% higher than for Q3 2019.

 

The average gold price for Q3 2020 of US$1,845/oz was 27% higher than for the comparable period in 2019, which together with the 15% depreciation of the average rand: dollar exchange rate year-on-year boosted the average rand gold price received for Q3 2020 by 47% to a record level of R1,002,945/kg. The inherent leverage of the SA gold operations to the rand gold price was clearly evident with the adjusted EBITDA margin for the SA Gold operations expanding to 37% compared with 14% for Q3 2019 and adjusted EBITDA increasing 282% to R3,218 million (US$190 million) for Q3 2020.

 

Underground production from the Driefontein operation of 2,424kg (77,933oz) increased by 17% due to a 14% increase in the average yield to 6.26g/t compared with 5.51g/t for the comparable period in 2019. The higher average yield during the period was a planned consequence of the phased recall of employees since May 2020, with returning crews initially directed to high grade areas, in order to build production and revenue as fast as possible. Underground yields have naturally normalised as the employee complement has increased. AISC declined by 5% to R741,525/kg (US$1,364/oz).

 

Underground production from the Kloof operation increased by 11% to 2,881kg (92,626oz) compared to Q3 2019, due to a 14% increase in the underground yield for the same reason outlined above. The Kloof surface operation was less impacted by COVID-19 constraints and spare capacity at the underground plants was utilised to accelerate surface throughput in order to offset lower throughput from underground. Surface production for Q3 2020 increased by 23% compared with Q3 2019, to 457kg (14,693oz). Considering the additional cost associated with COVID-19, costs were well controlled, with AISC for Q3 2020 of R718,630/kg (US$1,322/oz) being similar to Q3 2019. As mentioned above total AISC for Kloof is14% higher than the total AISC for the comparative period as a result of higher sales in the current quarter compared to the same period in 2019 (higher GIP and gold on hand in Q3 2019 compared to Q3 2020).

 

In contrast to the Driefontein and Kloof operations, underground gold production from the Beatrix operation of 1,319kg (42,407oz) declined by 36% compared with Q3 2019. Beatrix employs a higher proportion of foreign nationals than Kloof and Driefontein, with lower crew availability delaying the production build up. Gold production from surface sources increased by 56% to 64kg (2,058oz) due to utilisation of spare plant capacity. AISC for Q3 2020 of R847,561/kg (US$1,559/oz) was 53% higher than for the comparable period in 2019 due to the high fixed cost nature of the operations offset by the lower wage costs of employees not recalled, with lower production in the period.

 

OUTLOOK

 

Mined 2E PGM production from the US PGM operations for 2020 is forecast at between 620,000 2Eoz and 650,000 2Eoz, although due to ongoing COVID-19 constraints, is likely to be at the lower end of guidance. AISC is forecast to be between US$830/2Eoz and US$860/2Eoz, after accounting for the price driven royalties and taxes detailed previously. Capital expenditure is forecast to be between US$250 million to US$270 million, with the majority of this spend project in nature.

 

4E PGM production for 2020 from the SA PGM operations is forecast at between 1.35 million 4Eoz and 1.45 million 4Eoz with AISC between R19,700/4Eoz and R21,000/4Eoz (US$1,159/4Eoz and US$1,235/4Eoz). Given the smooth recovery in production, the upper end of production guidance and lower end of AISC guidance are very achievable. Capital expenditure is forecast at approximately R2,000 million (US$117 million).

 

Gold production from the managed SA gold operations (excluding DRDGOLD) for 2020 is forecast to be at the upper end of the production guidance of between 23,500kg and 24,500kg (756,000oz and 812,000oz) and as a result AISC is anticipated to be at the lower end of the cost guidance of between R805,000/kg and R840,000/kg (US$1,473/oz and US$1491/oz). Capital expenditure is expected to be marginally lower than the guidance of R2,850 million (US$168 million).

 

The 2020 dollar guidance is based on an average exchange rate of R17.00/US$.

 

Neal Froneman

Chief Executive Officer

 

SALIENT FEATURES AND COST BENCHMARKS - QUARTERS

US and SA PGM operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US OPERATIONS

SA OPERATIONS

 

 

 

Total SA and US PGM operations

Total US PGM

Stillwater

Total SA PGM

Rustenburg

Marikana

Kroondal

Plat Mile

Mimosa2

Attributable

 

Under - ground1

Total

Under-

ground

Surface

Under-

ground

Surface

Under-

ground

Surface

Attributable

Surface

Attributable

Production

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tonnes milled/treated

000't

Sep 2020

9,570

371

9,199

4,229

4,970

1,546

1,446

1,526

976

795

2,548

362

 

 

Jun 2020

6,035

380

5,655

2,298

3,357

692

1,102

801

725

449

1,530

356

 

 

Sep 2019

9,936

345

9,591

5,402

4,189

1,848

1,161

2,227

925

1,032

2,103

295

Plant head grade

g/t

Sep 2020

2.42

13.62

1.96

3.31

0.82

3.25

0.98

3.72

0.87

2.49

0.71

3.60

 

 

Jun 2020

2.64

14.09

1.87

3.19

0.97

3.12

1.07

3.49

0.85

2.42

0.95

3.59

 

 

Sep 2019

2.71

14.54

2.28

3.34

0.92

3.47

1.24

3.60

0.90

2.46

0.75

3.59

Plant recoveries

%

Sep 2020

77.30

91.02

73.67

84.40

36.82

86.14

34.59

85.26

41.98

83.75

17.58

75.35

 

 

Jun 2020

77.29

89.57

70.56

82.48

43.71

82.43

32.69

85.01

37.17

82.95

14.87

76.85

 

 

Sep 2019

76.93

91.10

73.77

83.04

29.79

81.04

29.01

85.91

24.50

82.91

8.22

75.37

Yield

g/t

Sep 2020

1.87

12.40

1.44

2.79

0.30

2.80

0.34

3.17

0.37

2.09

0.12

2.71

 

 

Jun 2020

2.04

12.62

1.32

2.63

0.42

2.57

0.35

2.97

0.32

2.01

0.14

2.76

 

 

Sep 2019

2.08

13.25

1.68

2.77

0.27

2.81

0.36

3.09

0.22

2.04

0.06

2.71

PGM production3,8

4Eoz - 2Eoz

Sep 2020

575,550

147,835

427,715

379,478

48,237

139,144

15,760

155,463

22,254

53,299

10,223

31,572

 

 

Jun 2020

395,911

156,155

239,756

194,100

45,656

57,221

12,393

76,326

26,314

28,977

6,949

31,576

 

 

Sep 2019

665,976

147,353

518,623

481,715

36,908

166,882

13,387

221,635

19,375

67,600

4,146

25,598

PGM sold

4Eoz - 2Eoz

Sep 2020

510,194

143,716

366,478

349,285

17,193

115,662

6,970

149,149

53,299

10,223

31,175

 

 

Jun 2020

438,050

191,903

246,147

229,480

16,667

79,514

9,718

108,036

28,977

6,949

12,953

 

 

Sep 2019

684,771

140,201

544,570

529,538

15,032

156,974

10,886

279,366

67,600

4,146

25,598

Price and costs4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average PGM basket price5

R/4Eoz - R/2Eoz

Sep 2020

35,416

32,095

36,840

37,605

30,453

37,878

26,818

36,141

40,595

22,541

31,936

 

 

Jun 2020

31,021

31,116

30,942

31,580

28,228

32,120

23,432

30,018

34,428

27,798

28,878

 

 

Sep 2019

20,314

20,362

20,316

20,405

17,314

20,337

17,016

20,287

21,053

18,098

19,326

 

US$/4Eoz - US$/2Eoz

Sep 2020

2,094

1,898

2,179

2,224

1,801

2,240

1,586

2,137

2,401

1,333

1,889

 

 

Jun 2020

1,728

1,733

1,724

1,759

1,573

1,789

1,305

1,672

1,918

1,549

1,609

 

 

Sep 2019

1,385

1,388

1,385

1,391

1,180

1,386

1,160

1,383

1,435

1,234

1,317

Operating cost6

R/t

Sep 2020

1,072

5,192

899

1,953

79

1,558

183

1,772

892

51

1,204

 

 

Jun 2020

1,292

5,468

992

2,525

106

2,048

246

1,968

1,076

55

1,212

 

 

Sep 2019

937

4,381

809

1,395

94

1,321

290

1,250

721

27

1,075

 

US$/t

Sep 2020

63

307

53

115

5

92

11

105

53

3

71

 

 

Jun 2020

72

305

55

141

6

114

14

110

60

3

68

 

 

Sep 2019

64

299

55

95

6

90

20

85

49

2

73

 

R/4Eoz - R/2Eoz

Sep 2020

18,148

13,030

20,058

21,706

8,170

17,314

16,751

24,947

13,302

12,716

13,800

 

 

Jun 2020

20,138

13,307

25,262

30,172

7,784

24,771

21,835

29,257

16,679

12,203

13,659

 

 

Sep 2019

14,101

10,258

15,249

15,619

10,675

14,632

25,188

16,342

11,003

13,700

12,384

 

US$/4Eoz - US$/2Eoz

Sep 2020

1,073

771

1,186

1,284

483

1,024

991

1,475

787

752

816

 

 

Jun 2020

1,122

741

1,407

1,681

434

1,380

1,216

1,630

929

680

761

 

 

Sep 2019

961

699

1,039

1,065

728

997

1,717

1,114

750

934

844

All-in sustaining cost7

R/4Eoz - R/2Eoz

Sep 2020

16,392

14,803

16,985

 

 

18,864

16,779

12,805

13,880

15,450

 

 

Jun 2020

20,166

15,038

24,011

 

 

22,766

27,596

16,927

13,081

15,420

 

 

Sep 2019

15,134

11,603

16,190

 

 

15,844

17,955

10,877

15,195

13,267

 

US$/4Eoz - US$/2Eoz

Sep 2020

969

875

1,004

 

 

1,116

992

757

821

914

 

 

Jun 2020

1,123

838

1,338

 

 

1,268

1,537

943

729

859

 

 

Sep 2019

1,032

791

1,104

 

 

1,080

1,224

741

1,036

904

All-in cost7

R/4Eoz - R/2Eoz

Sep 2020

17,543

18,997

17,001

 

 

18,864

16,814

12,805

13,880

15,450

 

 

Jun 2020

21,996

19,183

24,106

 

 

22,766

27,714

16,927

14,160

15,420

 

 

Sep 2019

15,963

15,195

16,192

 

 

15,844

17,957

10,877

15,412

13,267

 

US$/4Eoz - US$/2Eoz

Sep 2020

1,037

1,123

1,005

 

 

1,116

994

757

821

914

 

 

Jun 2020

1,225

1,069

1,343

 

 

1,268

1,544

943

789

859

 

 

Sep 2019

1,088

1,036

1,104

 

 

1,080

1,224

741

1,051

904

Capital expenditure4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ore reserve development

Rm

Sep 2020

607.1

301.7

305.4

 

 

107.1

198.3

-

-

-

 

 

Jun 2020

447.4

352.5

94.9

 

 

14.4

80.5

-

-

-

 

 

Sep 2019

677.4

235.1

442.3

 

 

135.9

306.4

-

-

-

Sustaining capital

 

Sep 2020

444.3

238.4

205.9

 

 

57.1

102.9

37.8

8.1

129.5

 

 

Jun 2020

346.3

215.6

130.7

 

 

40.1

65.4

20.9

4.2

78.4

 

 

Sep 2019

537.4

116.0

421.4

 

 

91.9

269.9

57.0

2.6

72.9

Corporate and projects

 

Sep 2020

620.0

620.0

-

 

 

-

-

-

-

-

 

 

Jun 2020

654.7

647.2

7.5

 

 

-

-

-

7.5

-

 

 

Sep 2019

531.6

530.5

1.1

 

 

-

0.2

-

0.9

-

Total capital expenditure

Rm

Sep 2020

1,671.4

1,160.1

511.3

 

 

164.2

301.2

37.8

8.1

129.5

 

 

Jun 2020

1,448.4

1,215.3

233.1

 

 

54.5

145.9

20.9

11.7

78.4

 

 

Sep 2019

1,746.3

881.6

864.7

 

 

227.8

576.5

57.0

3.4

72.9

 

US$m

Sep 2020

98.8

68.6

30.2

 

 

9.7

17.8

2.2

0.5

7.7

 

 

Jun 2020

80.7

67.7

13.0

 

 

3.0

8.1

1.2

0.7

4.4

 

 

Sep 2019

119.0

60.1

58.9

 

 

15.5

39.3

3.9

0.2

5.0

 

Average exchange rates for the quarters ended 30 September 2020, 30 June 2020 and 30 September 2019 were R16.91/US$, R17.95/US$ and R14.67/US$, respectively

Figures may not add as they are rounded independently

1   The US PGM operations’ underground production is converted to metric tonnes and performance is translated into rand. In addition to the US PGM operations’ underground production, the operation treats various recycling material which is excluded from the statistics shown above

2   During Q2 2020, sales were affected by the COVID-19 pandemic, however Mimosa continued production of PGM concentrate that resulted in a build up of concentrate stockpile. A difference arose whereby the Mimosa 4Eoz sold during Q2 2020 were included as equal to the produced 4Eoz in the Q2 2020 salient feature tables. The effect of this difference resulted in sold 4Eoz for Q2 2020 being reported as 31,576 4Eoz compared to an actual of 12,953 4Eoz. The AISC and AIC per 4Eoz for Mimosa were reported as R8,741/4Eoz compared to R15,420/4Eoz due to the inventory change not adjusted in these calculations

3   Production per product – see prill split in the table below

4   The Group and total SA PGM operations’ unit cost benchmarks and capital exclude the financial results of Mimosa, which is equity accounted and excluded from revenue and cost of sales

5   The average PGM basket price is the PGM revenue per 4E/2E ounce, prior to a purchase of concentrate adjustment

6   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/treated in the same period, and operating cost per ounce (and kilogram) is calculated by dividing the cost of sales, before amortisation and depreciation and change in inventory in a period by the PGM produced in the same period. The operating cost of Marikana operation includes the purchase of concentrate from Rustenburg, Kroondal and Platinum Mile

7   All-in cost is calculated in accordance with the World Gold Council guidance. All-in cost excludes income tax, costs associated with merger and acquisition activities, working capital, impairments, financing costs, one-time severance charges and items needed to normalise earnings. All-in cost is made up of All-in sustaining cost, being the cost to sustain current operations, given as a sub-total in the All-in cost calculation, together with corporate and major capital expenditure associated with growth. All-in sustaining cost per ounce (and kilogram) and All-in cost per ounce (and kilogram) are calculated by dividing the All-in sustaining cost and All-in cost, respectively, in a period by the total 4E/2E PGM produced in the same period. For a reconciliation of cost of sales before amortisation and depreciation to All-in costs, see “All-in costs – quarters”

8   The Marikana PGM production includes the processing of 10,781 4Eoz, 18,949 4Eoz and 12,790 4Eoz third party concentrate purchases for the quarters ended 30 September 2020, 30 June 2020 and 30 September 2019, respectively

 

Mining – Prill split excluding recycling operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GROUP

SA OPERATIONS

US OPERATIONS

 

Sep 2020

Jun 2020

Sep 2019

Sep 2020

Jun 2020

Sep 2019

Sep 2020

Jun 2020

Sep 2019

 

 

%

 

%

 

%

 

%

 

%

 

%

 

%

 

%

 

%

Platinum

288,406

50%

178,071

45%

340,943

51%

255,268

60%

143,313

60%

307,777

59%

33,138

22%

34,758

22%

33,166

23%

Palladium

241,852

42%

192,641

49%

270,059

41%

127,155

30%

71,244

30%

155,872

30%

114,697

78%

121,397

78%

114,187

77%

Rhodium

35,600

6%

18,554

5%

46,079

7%

35,600

8%

18,554

8%

46,079

9%

 

 

 

 

 

 

Gold

9,692

2%

6,645

1%

8,895

1%

9,692

2%

6,645

2%

8,895

2%

 

 

 

 

 

 

PGM production 4E/2E

575,550

100%

395,911

100%

665,976

100%

427,715

100%

239,756

100%

518,623

100%

147,835

100%

156,155

100%

147,353

100%

Ruthenium

56,991

 

31,192

 

74,264

 

56,991

 

31,192

 

74,264

 

 

 

 

 

 

 

Iridium

14,039

 

7,788

 

18,731

 

14,039

 

7,788

 

18,731

 

 

 

 

 

 

 

Total 6E/2E

646,580

 

434,891

 

758,971

 

498,745

 

278,736

 

611,618

 

147,835

 

156,155

 

147,353

 

 

Recycling operation

 

 

 

 

 

 

Unit

Sep 2020

Jun 2020

Sep 2019

Average catalyst fed/day

Tonne

24.5

22.8

25.3

Total processed

Tonne

2,254

2,071

2,327

Tolled

Tonne

103

347

354

Purchased

Tonne

2,151

1,725

1,973

PGM fed

3Eoz

202,661

175,674

202,141

PGM sold

3Eoz

113,225

220,838

178,685

PGM tolled returned

3Eoz

24,585

32,074

49,317

 

 

SA gold operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SA OPERATIONS

 

 

 

 

Total SA gold

Driefontein

Kloof

Beatrix

Cooke

DRDGOLD

 

Total

Under-

ground

Surface

Under-

ground

Surface

Under-

ground

Surface

Under-

ground

Surface

Under-

ground

Surface

Surface

Production

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tonnes milled/treated

000't

Sep 2020

11,399

1,213

10,186

387

-

472

1,450

354

165

-

1,311

7,260

 

 

Jun 2020

8,763

533

8,230

139

-

205

1,401

189

93

-

999

5,737

 

 

Sep 2019

10,907

1,446

9,461

376

-

485

1,286

558

72

27

948

7,155

Yield

g/t

Sep 2020

0.79

5.46

0.23

6.26

-

6.10

0.32

3.73

0.39

-

0.25

0.21

 

 

Jun 2020

0.59

6.31

0.22

7.08

-

7.60

0.36

4.34

0.24

-

0.23

0.18

 

 

Sep 2019

0.82

4.65

0.23

5.51

-

5.33

0.29

3.69

0.57

0.44

0.32

0.21

Gold produced

kg

Sep 2020

8,987

6,624

2,363

2,424

-

2,881

457

1,319

64

-

328

1,514

 

 

Jun 2020

5,149

3,361

1,788

984

-

1,557

498

820

22

-

227

1,041

 

 

Sep 2019

8,937

6,730

2,207

2,072

-

2,587

373

2,059

41

12

300

1,493

 

oz

Sep 2020

288,938

212,966

75,972

77,933

-

92,626

14,693

42,407

2,058

-

10,545

48,676

 

 

Jun 2020

165,544

108,059

57,485

31,636

-

50,059

16,011

26,364

707

-

7,298

33,469

 

 

Sep 2019

287,330

216,374

70,956

66,616

-

83,174

11,992

66,198

1,318

386

9,645

48,001

Gold sold

kg

Sep 2020

8,726

6,349

2,377

2,230

-

2,865

463

1,254

58

-

334

1,522

 

 

Jun 2020

4,887

3,192

1,695

920

-

1,509

493

763

21

-

230

951

 

 

Sep 2019

8,510

6,295

2,215

1,856

-

2,485

412

1,943

35

11

258

1,510

 

oz

Sep 2020

280,547

204,125

76,422

71,696

-

92,112

14,886

40,317

1,865

-

10,738

48,933

 

 

Jun 2020

157,120

102,625

54,495

29,579

-

48,515

15,850

24,531

675

-

7,395

30,575

 

 

Sep 2019

273,604

202,390

71,214

59,672

-

79,895

13,246

62,469

1,125

354

8,295

48,548

Price and costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold price received

R/kg

Sep 2020

1,002,945

 

 

1,004,843

1,001,683

962,652

1,025,749

1,031,406

 

 

Jun 2020

972,396

 

 

809,783

900,899

873,597

974,783

971,083

 

 

Sep 2019

684,172

 

 

651,940

663,583

660,971

683,643

697,483

 

US$/oz

Sep 2020

1,845

 

 

1,848

1,842

1,771

1,887

1,897

 

 

Jun 2020

1,685

 

 

1,403

1,561

1,514

1,689

1,683

 

 

Sep 2019

1,451

 

 

1,382

1,407

1,401

1,449

1,479

Operating cost1

R/t

Sep 2020

473

3,383

127

3,683

-

3,626

190

2,732

207

-

149

108

 

 

Jun 2020

483

5,973

127

7,978

-

6,513

201

3,926

185

-

142

106

 

 

Sep 2019

463

2,686

123

3,499

-

3,221

216

1,793

131

200

165

101

 

US$/t

Sep 2020

28

200

8

218

-

214

11

162

12

-

9

6

 

 

Jun 2020

27

333

7

444

-

363

11

219

10

-

8

6

 

 

Sep 2019

32

183

8

239

-

220

15

122

9

14

11

7

 

R/kg

Sep 2020

600,033

619,520

545,408

587,995

-

594,030

604,376

733,131

532,813

-

594,817

517,437

 

 

Jun 2020

821,829

947,248

586,074

1,126,931

-

857,482

564,458

905,000

781,818

-

624,229

583,958

 

 

Sep 2019

564,709

577,043

527,096

634,990

-

603,788

746,113

485,867

229,268

450,000

522,333

483,255

 

US$/oz

Sep 2020

1,104

1,140

1,003

1,082

-

1,093

1,112

1,348

980

-

1,094

952

 

 

Jun 2020

1,424

1,641

1,016

1,953

-

1,486

978

1,568

1,355

-

1,082

1,012

 

 

Sep 2019

1,197

1,223

1,118

1,346

-

1,280

1,582

1,030

486

954

1,107

1,025

All-in sustaining cost2

R/kg

Sep 2020

715,345

 

 

741,525

718,630

847,561

648,503

591,393

 

 

Jun 2020

890,444

 

 

1,239,565

837,363

976,403

678,261

643,428

 

 

Sep 2019

653,666

 

 

777,532

726,096

552,679

565,056

509,868

 

US$/oz

Sep 2020

1,316

 

 

1,364

1,322

1,559

1,193

1,088

 

 

Jun 2020

1,543

 

 

2,148

1,451

1,692

1,175

1,115

 

 

Sep 2019

1,386

 

 

1,649

1,539

1,172

1,198

1,081

All-in cost2

R/kg

Sep 2020

726,782

 

 

741,525

729,447

847,561

648,503

608,016

 

 

Jun 2020

890,853

 

 

1,239,565

845,654

976,403

678,261

648,160

 

 

Sep 2019

671,293

 

 

777,532

738,971

552,932

565,056

517,285

 

US$/oz

Sep 2020

1,337

 

 

1,364

1,342

1,559

1,193

1,118

 

 

Jun 2020

1,544

 

 

2,148

1,465

1,692

1,175

1,123

 

 

Sep 2019

1,423

 

 

1,649

1,567

1,172

1,198

1,097

Capital expenditure

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ore reserve development

Rm

Sep 2020

529.8

 

 

233.1

215.2

81.5

-

-

 

 

Jun 2020

155.5

 

 

71.3

57.5

26.7

-

-

 

 

Sep 2019

560.3

 

 

216.8

251.1

92.4

-

-

Sustaining capital

 

Sep 2020

257.9

 

 

54.9

88.0

19.9

-

95.1

 

 

Jun 2020

144.0

 

 

17.8

32.7

9.1

-

84.4

 

 

Sep 2019

143.1

 

 

65.3

55.8

16.5

-

5.5

Corporate and projects3

 

Sep 2020

69.8

 

 

 -

36.0

-

-

25.3

 

 

Jun 2020

21.3

 

 

 -

16.6

-

-

4.5

 

 

Sep 2019

75.7

 

 

 -

37.3

0.5

-

11.2

Total capital expenditure

 Rm

Sep 2020

857.5

 

 

288.0

339.2

101.4

-

120.4

 

 

Jun 2020

320.7

 

 

89.1

106.8

35.7

-

88.9

 

 

Sep 2019

779.0

 

 

282.0

344.1

109.5

-

16.7

 

US$m

Sep 2020

50.7

 

 

17.0

20.1

6.0

-

7.1

 

 

Jun 2020

17.9

 

 

5.0

5.9

2.0

-

5.0

 

 

Sep 2019

53.1

 

 

19.2

23.5

7.5

-

1.1

 

Average exchange rates for the quarters ended 30 September 2020, 30 June 2020 and 30 September 2019 were R16.91/US$, R17.95/US$ and R14.67/US$, respectively

Figures may not add as they are rounded independently

1   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/treated in the same period, and operating cost per kilogram (and ounce) is calculated by dividing the cost of sales, before amortisation and depreciation and change in inventory in a period by the gold produced in the same period

2   All-in cost is calculated in accordance with the World Gold Council guidance. All-in cost excludes income tax, costs associated with merger and acquisition activities, working capital, impairments, financing costs, one time severance charges and items needed to normalise earnings. All-in cost is made up of All-in sustaining cost, being the cost to sustain current operations, given as a sub-total in the All-in cost calculation, together with corporate and major capital expenditure associated with growth. All-in sustaining cost per kilogram (and ounce) and All-in cost per kilogram (and ounce) is calculated by dividing the All-in sustaining cost and All-in cost, respectively, in a period by the total gold sold over the same period. For a reconciliation of cost of sales before amortisation and depreciation to All-in costs, see “All-in costs – quarters

3   Corporate project expenditure for the quarters ended 30 September 2020, 30 June 2020 and 30 September 2019 was R8.5 million (US$0.5 million), R0.2 million (US$0 million) and R26.7 million (US$1.8 million), respectively

 

ALL-IN COSTS - QUARTERS

SA and US PGM operations

Figures are in millions unless otherwise stated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US OPERATIONS

SA OPERATIONS

 

 

 

Total US and SA PGM

Total US PGM1

Total SA PGM

Rustenburg

Marikana

Kroondal

Plat Mile

Mimosa2

Corporate

Cost of sales, before amortisation and depreciation3

 

Sep 2020

8,374.5

1,865.4

6,509.1

2,479.1

3,424.7

760.9

130.0

462.5

(748.1)

 

 

Jun 2020

7,313.2

2,677.8

4,635.4

1,899.0

2,698.8

498.9

84.8

220.4

(766.5)

 

 

Sep 2019

9,871.5

1,302.5

8,569.0

2,468.7

5,241.8

801.7

56.8

317.0

(317.0)

Royalties

 

Sep 2020

444.2

-

444.2

326.7

114.1

3.4

-

30.6

(30.6)

 

 

Jun 2020

55.0

-

55.0

33.5

21.0

0.5

-

18.1

(18.1)

 

 

Sep 2019

112.8

-

112.8

75.0

36.0

1.7

-

14.9

(14.8)

Carbon tax

 

Sep 2020

0.7

-

0.7

0.1

0.5

0.1

-

-

-

 

 

Jun 2020

1.3

-

1.3

0.1

1.1

0.1

-

-

-

 

 

Sep 2019

-

-

-

-

-

-

-

-

-

Community costs

 

Sep 2020

46.0

-

46.0

(4.7)

50.7

-

-

-

-

 

 

Jun 2020

13.4

-

13.4

5.8

7.6

-

-

-

-

 

 

Sep 2019

14.6

-

14.6

14.6

-

-

-

-

-

Inventory change4

 

Sep 2020

1,654.8

60.9

1,593.9

265.1

1,043.1

-

-

(26.8)

312.5

 

 

Jun 2020

203.1

(599.8)

802.9

(76.0)

332.7

-

-

210.9

335.3

 

 

Sep 2019

(660.4)

209.0

(869.4)

361.4

(1,230.8)

-

-

-

-

Share-based payments5

 

Sep 2020

41.0

20.0

21.0

8.6

10.6

1.8

-

-

-

 

 

Jun 2020

13.2

0.9

12.3

4.7

4.7

2.9

-

-

-

 

 

Sep 2019

13.3

13.3

-

-

-

-

-

-

-

Rehabilitation interest and amortisation6

 

Sep 2020

67.5

7.4

60.1

1.2

38.9

20.0

-

1.0

(1.0)

 

 

Jun 2020

66.2

8.5

57.7

0.4

36.3

21.1

-

0.7

(0.8)

 

 

Sep 2019

56.9

1.9

55.0

(0.5)

36.1

19.4

-

0.8

(0.8)

Leases

 

Sep 2020

14.8

0.6

14.2

3.5

8.5

2.2

-

-

-

 

 

Jun 2020

15.7

1.9

13.8

3.5

8.1

2.2

-

-

-

 

 

Sep 2019

13.8

1.6

12.2

3.7

10.6

(2.1)

-

-

-

Ore reserve development

 

Sep 2020

607.1

301.7

305.4

107.1

198.3

-

-

-

-

 

 

Jun 2020

447.4

352.5

94.9

14.4

80.5

-

-

-

-

 

 

Sep 2019

677.4

235.1

442.3

135.9

306.4

-

-

-

-

Sustaining capital expenditure

 

Sep 2020

444.3

238.4

205.9

57.1

102.9

37.8

8.1

129.5

(129.5)

 

 

Jun 2020

346.3

215.6

130.7

40.1

65.4

20.9

4.2

78.4

(78.3)

 

 

Sep 2019

537.3

116.0

421.3

91.9

269.9

57.0

2.6

72.9

(73.0)

Less: By-product credit8

 

Sep 2020

(2,777.9)

(306.0)

(2,471.9)

(321.7)

(2,010.3)

(143.7)

3.8

(109.0)

109.0

 

 

Jun 2020

(1,127.8)

(309.1)

(818.7)

(340.7)

(423.7)

(56.1)

1.9

(41.6)

41.5

 

 

Sep 2019

(945.6)

(169.7)

(775.9)

(294.5)

(342.6)

(142.4)

3.6

(66.0)

66.0

Total All-in-sustaining costs7

 

Sep 2020

8,917.0

2,188.4

6,728.6

2,922.1

2,982.0

682.5

141.9

487.8

(487.7)

 

 

Jun 2020

7,347.0

2,348.3

4,998.7

1,584.8

2,832.5

490.5

90.9

486.9

(486.9)

 

 

Sep 2019

9,691.6

1,709.7

7,981.9

2,856.2

4,327.4

735.3

63.0

339.6

(339.6)

Plus: Corporate cost, growth and capital expenditure

 

Sep 2020

626.2

620.0

6.2

-

6.2

-

-

-

-

 

 

Jun 2020

666.8

647.2

19.6

-

12.1

-

7.5

-

-

 

 

Sep 2019

530.6

529.3

1.3

-

0.4

-

0.9

-

-

Total All-in-costs7

 

Sep 2020

9,543.2

2,808.4

6,734.8

2,922.1

2,988.2

682.5

141.9

487.8

(487.7)

 

 

Jun 2020

8,013.8

2,995.5

5,018.3

1,584.8

2,844.6

490.5

98.4

486.9

(486.9)

 

 

Sep 2019

10,222.2

2,239.0

7,983.2

2,856.2

4,327.8

735.3

63.9

339.6

(339.6)

PGM production

4Eoz - 2Eoz

Sep 2020

575,550

147,835

427,715

154,904

177,717

53,299

10,223

31,572

-

 

 

Jun 2020

395,911

156,155

239,756

69,614

102,640

28,977

6,949

31,576

-

 

 

Sep 2019

665,976

147,353

518,623

180,269

241,010

67,600

4,146

25,598

-

 

kg

Sep 2020

17,902

4,598

13,303

4,818

5,528

1,658

318

982

-

 

 

Jun 2020

12,314

4,857

7,457

2,165

3,193

901

216

982

-

 

 

Sep 2019

20,714

4,583

16,131

5,607

7,496

2,103

129

796

-

All-in-sustaining cost

R/4Eoz - R/2Eoz

Sep 2020

16,392

14,803

16,985

18,864

16,779

12,805

13,880

15,450

-

 

 

Jun 2020

20,166

15,038

24,011

22,766

27,596

16,927

13,081

15,420

-

 

 

Sep 2019

15,134

11,603

16,190

15,844

17,955

10,877

15,195

13,267

-

 

US$/4Eoz - US$/2Eoz

Sep 2020

969

875

1,004

1,116

992

757

821

914

-

 

 

Jun 2020

1,123

838

1,338

1,268

1,537

943

729

859

-

 

 

Sep 2019

1,032

791

1,104

1,080

1,224

741

1,036

904

-

All-in-cost

R/4Eoz - R/2Eoz

Sep 2020

17,543

18,997

17,001

18,864

16,814

12,805

13,880

15,450

-

 

 

Jun 2020

21,996

19,183

24,106

22,766

27,714

16,927

14,160

15,420

-

 

 

Sep 2019

15,963

15,195

16,192

15,844

17,957

10,877

15,412

13,267

-

 

US$/4Eoz - US$/2Eoz

Sep 2020

1,037

1,123

1,005

1,116

994

757

821

914

-

 

 

Jun 2020

1,225

1,069

1,343

1,268

1,544

943

789

859

-

 

 

Sep 2019

1,088

1,036

1,104

1,080

1,224

741

1,051

904

-

 

Average exchange rates for the quarters ended 30 September 2020, 30 June 2020 and 30 September 2019 were R16.91/US$, R17.95/US$ and R14.67/US$, respectively

Figures may not add as they are rounded independently

1   The US PGM operations’ underground production is converted to metric tonnes and kilograms, and performance is translated into rand. In addition to the US PGM operations’ underground production, the operation processes various recycling material which is excluded from the 2E PGM production, All-in sustaining cost and All-in cost statistics shown

2   During Q2 2020, sales were affected by the COVID-19 pandemic, however Mimosa continued production of PGM concentrate that resulted in a build up of concentrate stockpile. A difference arose whereby the Mimosa 4Eoz sold during Q2 2020 were included as equal to the produced 4Eoz in the Q2 2020 salient feature tables. The effect of this difference resulted in sold 4Eoz for Q 2 2020 being reported as 31,576 4Eoz compared to an actual of 12,953 4Eoz. The AISC and AIC per 4Eoz for Mimosa were reported as R8,741/4Eoz compared to R15,420/4Eoz due to the inventory change not adjusted in these calculations

3   Cost of sales, before amortisation and depreciation includes all mining and processing costs, third party refining costs, corporate general and administrative costs, and permitting costs. Corporate relates to the elimination of concentrate sales by Rustenburg, Kroondal and Platinum Mile to Marikana and the associated unrealised profit

4   Inventory adjustment in Corporate includes the elimination of concentrate sales by Rustenburg, Kroondal and Platinum Mile to Marikana and the associated unrealised profit

5   Share-based payments are calculated based on the fair value at initial recognition and do not include the adjustment of the cash-settled share-based payment obligation to the reporting date fair value

6   Rehabilitation includes the interest charge related to the environmental rehabilitation obligation and the amortisation of the related capitalised rehabilitation costs. The interest charge related to the environmental rehabilitation obligation and the amortisation of the capitalised rehabilitation costs reflect the periodic costs of rehabilitation associated with current PGM production

7   All-in cost is calculated in accordance with the World Gold Council guidance. All-in cost excludes income tax, costs associated with merger and acquisition activities, working capital, impairments, financing costs, one-time severance charges and items needed to normalise earnings. All-in cost is made up of All-in sustaining cost, being the cost to sustain current operations, given as a sub-total in the All-in cost calculation, together with corporate and major capital expenditure associated with growth. All-in sustaining cost per ounce (and kilogram) and All-in cost per ounce (and kilogram) are calculated by dividing the All-in sustaining cost and All-in cost, respectively, in a period by the total 4E/2E PGM produced in the same period

8   The Q3 2020 and Q2 2020 by-product credit for Marikana includes the benefit from the sale of concentrate purchased from Rustenburg, Kroondal and Platinum Mile of R1,546 million and R128 million, respectively. The cost associated with the purchase and processing of the intercompany concentrate is included in the Marikana cost of sales, before amortisation and depreciation

 

SA gold operations

Figures are in millions unless otherwise stated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SA OPERATIONS

 

 

 

Total SA gold

Driefontein

Kloof

Beatrix

Cooke

DRDGOLD

Corporate

Cost of sales, before amortisation and depreciation1

 

Sep 2020

5,305.5

1,330.6

2,018.3

960.4

201.0

795.2

-

 

 

Jun 2020

3,950.8

1,029.5

1,551.9

695.2

137.7

536.5

-

 

 

Sep 2019

4,714.8

1,140.7

1,763.8

949.7

139.0

721.6

-

Royalties

 

Sep 2020

35.8

11.2

41.8

14.2

1.7

-

(33.1)

 

 

Jun 2020

17.2

3.7

9.0

3.4

1.1

-

-

 

 

Sep 2019

21.6

5.6

9.0

6.1

0.9

-

-

Carbon tax

 

Sep 2020

0.5

-

0.1

0.4

-

-

-

 

 

Jun 2020

0.7

-

0.1

0.4

-

0.2

-

 

 

Sep 2019

-

-

-

-

-

-

-

Community costs

 

Sep 2020

24.9

3.4

7.8

13.7

-

-

-

 

 

Jun 2020

36.5

3.2

7.5

13.5

-

12.3

-

 

 

Sep 2019

14.4

4.2

5.3

4.3

0.6

-

-

Share-based payments2

 

Sep 2020

19.7

5.4

6.2

4.4

-

3.7

-

 

 

Jun 2020

(20.0)

2.7

3.3

2.2

-

(28.2)

-

 

 

Sep 2019

41.1

-

-

-

-

41.1

-

Rehabilitation interest and amortisation3

 

Sep 2020

58.5

15.5

11.5

15.2

10.3

4.7

1.3

 

 

Jun 2020

53.0

11.2

10.6

12.1

13.2

4.5

1.4

 

 

Sep 2019

56.8

8.3

14.1

21.7

8.3

3.4

1.0

Leases

 

Sep 2020

17.5

2.0

4.4

3.5

3.9

3.7

-

 

 

Jun 2020

17.5

2.0

4.6

3.6

4.3

3.0

-

 

 

Sep 2019

17.6

3.6

6.0

3.8

4.2

-

-

Ore reserve development

 

Sep 2020

529.8

233.1

215.2

81.5

-

-

-

 

 

Jun 2020

155.5

71.3

57.5

26.7

-

-

-

 

 

Sep 2019

560.3

216.8

251.1

92.4

-

-

-

Sustaining capital expenditure

 

Sep 2020

257.9

54.9

88.0

19.9

-

95.1

-

 

 

Jun 2020

144.0

17.8

32.7

9.1

-

84.4

-

 

 

Sep 2019

143.1

65.3

55.8

16.5

-

5.5

-

Less: By-product credit

 

Sep 2020

(8.0)

(2.5)

(1.7)

(1.2)

(0.3)

(2.3)

-

 

 

Jun 2020

(3.6)

(1.0)

(0.8)

(0.7)

(0.3)

(0.8)

-

 

 

Sep 2019

(7.0)

(1.4)

(1.6)

(1.3)

(1.0)

(1.7)

-

Total All-in-sustaining costs4

 

Sep 2020

6,242.1

1,653.6

2,391.6

1,112.0

216.6

900.1

(31.8)

 

 

Jun 2020

4,351.6

1,140.4

1,676.4

765.5

156.0

611.9

1.4

 

 

Sep 2019

5,562.7

1,443.1

2,103.5

1,093.2

152.0

769.9

1.0

Plus: Corporate cost, growth and capital expenditure

 

Sep 2020

99.8

-

36.0

-

-

25.3

38.5

 

 

Jun 2020

2.0

-

16.6

-

-

4.5

(19.1)

 

 

Sep 2019

150.0

-

37.3

0.5

-

11.2

101.0

Total All-in-costs4

 

Sep 2020

6,341.9

1,653.6

2,427.6

1,112.0

216.6

925.4

6.7

 

 

Jun 2020

4,353.6

1,140.4

1,693.0

765.5

156.0

616.4

(17.7)

 

 

Sep 2019

5,712.7

1,443.1

2,140.8

1,093.7

152.0

781.1

102.0

Gold sold

kg

Sep 2020

8,726

2,230

3,328

1,312

334

1,522

-

 

 

Jun 2020

4,887

920

2,002

784

230

951

-

 

 

Sep 2019

8,510

1,856

2,897

1,978

269

1,510

-

 

oz

Sep 2020

280,547

71,696

106,998

42,182

10,738

48,933

-

 

 

Jun 2020

157,120

29,579

64,366

25,206

7,395

30,575

-

 

 

Sep 2019

273,602

59,672

93,141

63,594

8,649

48,548

-

All-in-sustaining cost

R/kg

Sep 2020

715,345

741,525

718,630

847,561

648,503

591,393

-

 

 

Jun 2020

890,444

1,239,565

837,363

976,403

678,261

643,428

-

 

 

Sep 2019

653,666

777,532

726,096

552,679

565,056

509,868

-

 

US$/oz

Sep 2020

1,316

1,364

1,322

1,559

1,193

1,088

-

 

 

Jun 2020

1,543

2,148

1,451

1,692

1,175

1,115

-

 

 

Sep 2019