Thursday, 11 August 2022 @ 15h00 (CAT) / 14h00 BST / 08h00 (EST) / 07h00 (MDT)
Prevailing macro environment and changing palladium market conditions have prompted a strategic revision of the US PGM operations and expansion plans. Sibanye-Stillwater discusses its prudent plan to defer capital investment on original growth project and re-engineer the operations to protect margins and long-term value.
Programme
Context to the repositioning Neal Froneman A fresh perspective Charles Carter Technical review Wayne Robinson Cost and financial aspects Pieter Henning Conclusion Neal Froneman
REPLAY OF LIVE CONFERENCE CALL, ACCESS CODE #42758 South Africa 010 500 4108 UK 0 203 608 8021 USA 1 412 317 0088 Australia 073 911 1378 International +27 10 500 4108
RepositionING for delivery of sustainable value through the commodity cycle
Delivered on strategic intent Return on investment secured – optimising future value for all stakeholders Robust, de-risked plan – greater flexibility Prudent response to changing environmentElevated global inflation Skills shortage Positioning through the commodity cycles Production growth to 700,000+ 2Eoz by 2027 Focus on sustainable cost management – AISC below US$1,000/2Eoz in medium/long term Long life assets with great optionality
*NPV– Reserve Life of Mine model at 30 June 2022 assuming long term pricing of Pd US$1,250/oz, Pt US$1,250/oz and discounted at 6.2%
Sequence of macro economic and operating challenges
Build-up in mined 2E PGM production to 700k+ 2Eoz pa by 2027
East Boulder ~230k 2Eoz pa from 2024
Planned hiring, training and supervision of additional miners and geologists supports turnaround in productivity in 2022 Production expected to normalise to historical levels by end 2022 and then build to 230koz annual rate Sustain ~ 18 month developed state (ORD) Increased SIB capitalEarlier investment in fleet replacement and upgrades to support improved safety technology and the long life production profile Current TSF expansion transitions to new waste rock dump, followed by new tailings facility (previously planned post 2030)
Stillwater West ~300k 2Eoz pa from 2027
Investment in advanced proximity detection to remove standard operating procedures’ constraints Increased development investment re-establishes two additional mining fronts beyond Depression zone & Stillwater FaultDeveloped state to ~12 months by 2024 Greater flexibility drives improved productivity and mining selectivity Increase developed state to ~18 months
Stillwater East (Blitz) ~170k 2Eoz pa from 2026
Temporarily suspend mining in areas that require engineered (cemented) backfill solution until new plant is commissioned (2025 ~3yrs @ US$30m) ~40k 2Eoz impact in 2022 Allows for restructuring - cost and productivity benefits Increase developed state to ~12 months by end 2024 Increase developed state to ~18 months in the long term
REPLAY OF LIVE CONFERENCE CALL, ACCESS CODE #42758 South Africa 010 500 4108 UK 0 203 608 8021 USA 1 412 317 0088 Australia 073 911 1378 International +27 10 500 4108
