Mineral Resources and Mineral Reserves update: further increase in gold and uranium Mineral Reserves
Westonaria, 24 February 2016: Sibanye Gold Limited (JSE: SGL & NYSE: SBGL) is pleased to report updated Group Mineral Resources and Mineral Reserves, declared as at 31 December 2015.
- Group gold Mineral Reserves increased by 9% to 31.0Moz from 28.4Moz declared at 31 December 2014. This is despite depletion of 1.6Moz from mining activities during 2015 and is the third consecutive increase annual increase in gold mineral reserves;
- Uranium Mineral Reserves for the Group increased by 11% to 113.8Mlb, with a maiden Mineral Reserve declared at Beatrix’s Beisa Project;
- Gold Mineral Reserves at the underground operations increased by 0.7Moz (4%) to 20.2Moz, net of depletion in 2015, following:
- optimisation of two significant underground growth projects at Beatrix (Beisa Project) and Driefontein (Depth Extension Project);
- continued assessment of previously unmined areas ("white areas") for safe, economic extraction, resulting in additional 1.1Moz of gold Mineral Reserves; and
- the secondary reef exploration programme at Kloof and Driefontein which contributed an additional 0.4Moz to gold Mineral Reserves.
- A maiden gold Mineral Reserve of 1.8Moz has been declared at the Burnstone project, following completion of the detailed feasibility study, and the subsequent commencement of the project development phase.
- As per SEC guidelines, Mineral Reserves were declared at approximately the historic two to three year average commodity prices. Gold Mineral Reserves were declared at R430,000/kg and gold Mineral resources at R470,000/kg, a 10% premium. This is substantially lower than the average rand gold price for the year to date.
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Sponsor: J.P. Morgan Equities South Africa (Pty) Ltd
FORWARD LOOKING STATEMENTS
Certain statements in this document constitute "forward-looking statements" within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of 1934.
These forward-looking statements, including, among others, those relating to Sibanye’s future business prospects, revenues and income, wherever they may occur in this document and the exhibits to this document, are necessarily estimates reflecting the best judgment of the senior management and directors of Sibanye, and involve a number of known and unknown risks and uncertainties that could cause actual results, performance or achievements of the Group to differ materially from those suggested by the forward-looking statements. As a consequence, these forward-looking statements should be considered in light of various important factors, including those set forth in this document. Important factors that could cause the actual results to differ materially from estimates or projections contained in the forward-looking statements include, without limitation, economic, business, political and social conditions in South Africa, Zimbabwe and elsewhere; changes in assumptions underlying Sibanye’s estimation of its current Mineral Reserves and Resources; the ability to achieve anticipated efficiencies and other cost savings in connection with past and future acquisitions, as well as at existing operations; the ability of Sibanye to successfully integrate acquired businesses and operations (whether in the gold mining business or otherwise) into its existing businesses; the success of Sibanye’s business strategy, exploration and development activities; the ability of Sibanye to comply with requirements that it operate in a sustainable manner; changes in the market price of gold, platinum group metals ("PGMs") and/or uranium; the occurrence of hazards associated with underground and surface gold, PGMs and uranium mining; the occurrence of labour disruptions and industrial action; the availability, terms and deployment of capital or credit; changes in relevant government regulations, particularly environmental, tax health and safety regulations and new legislation affecting water, mining, mineral rights and business ownership, including any interpretations thereof which may be subject to dispute; the outcome and consequence of any potential or pending litigation or regulatory proceedings or other environmental, health and safety issues; power disruptions, constraints and cost increases; supply chain shortages and increases in the price of production inputs; fluctuations in exchange rates, currency devaluations, inflation and other macro-economic monetary policies; the occurrence of temporary stoppages of mines for safety incidents and unplanned maintenance; Sibanye’s ability to hire and retain senior management or sufficient technically skilled employees, as well as its ability to achieve sufficient representation of historically disadvantaged South Africans’ in its management positions; failure of Sibanye’s information technology and communications systems; the adequacy of Sibanye’s insurance coverage; any social unrest, sickness or natural or man-made disaster at informal settlements in the vicinity of some of Sibanye’s operations; and the impact of HIV, tuberculosis and other contagious diseases. These forward-looking statements speak only as of the date of this document.
The Group undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events.