Management re-organisation for multi-commodity operations
Westonaria, 18 April 2016: Sibanye (JSE: SGL & NYSE: SBGL) is pleased to advise stakeholders that it has revised and is implementing its organisational structures in order to ensure that it is optimally positioned for its entry into the PGM mining sector in 2016.
In order to ensure the sustained focus on safe, cost-effective delivery of production from its underground mining and surface processing operations as it becomes a multi-commodity business, Sibanye will be re-structured into separate, commodity specific divisions focused on operational delivery. Sibanye’s Group Services functions will provide all non-core, production support services required by the different Commodity Operating Divisions, thereby eliminating duplication of support services. The re-organisation will ensure that there is minimal disruption to operating activities and provides that our experienced operations management are positioned closer to the mining face, with the aim of promoting operational effectiveness.
Wayne Robinson has been appointed as the Chief Executive Officer (CEO) of the Gold and Uranium Division. The Gold and Uranium Division executive management team supporting Wayne, will largely be consistent with Sibanye’s current gold operational management. Adam Mutshinya will continue in his role as Senior Vice President: Human Capital, with Pieter Henning, formerly Vice President: Corporate Finance appointed as Senior Vice President: Finance for the division. William Osae, formerly Vice President of Driefontein Underground Operations, has been promoted to Senior Vice President: Technical Services in the division.
”I have every confidence that the Gold and Uranium Division’s executive management team will provide the effective leadership needed to maintain the current operational focus and maintain the momentum at the Gold and Uranium operations. I have no doubt that they will continue to deliver the excellent safety and operating results which underpin Sibanye’s strong cash flow generation on a sustainable basis.” Neal Froneman, CEO of Sibanye, said.
The Platinum Division executive management team will have a similar executive structure. Jean Nel, previously CEO of Aquarius Platinum Limited, has recently been appointed CEO of the Platinum Division, with Bheki Khumalo appointed as Senior Vice President: Human Capital and Peter Turner will assume the position of Senior Vice President: Technical Services. This follows the appointment of Justin Froneman in 2015 as Senior Vice President: Finance and Shadwick Bessit, previously Senior Vice President: Underground Operations, Kloof and Driefontein, as Senior Vice President: Mining.
Jean acted as CEO of Aquarius from November 2012 until the acquisition of Aquarius by Sibanye and prior to that had more than 12 years’ experience providing corporate finance advice to various mining and resources companies in South Africa. Bheki obtained significant experience in the mining industry working for: BHP Billiton Limited’s South African aluminium division and Great Basin Gold Limited, the previous owner of the Burnstone mine. Shadwick has extensive platinum mining experience from his role as Executive Director of Operations at Impala Platinum Limited from 2005 to 2010, and Justin gained significant experience and insight into the platinum sector during his role as a sell side analyst covering the sector for over 8 years. The balance of the Platinum Division executive management is expected to primarily consist of existing management from the Rustenburg and Aquarius operations, with specific executive roles and responsibilities to be finalised once the transactions have been concluded. The combination will establish a leadership team optimised for continuity, effective integration.
John Wallington has been appointed Executive Vice President of the Energy and Coal Division and will drive Sibanye’s energy strategy. John has more than 30 years’ experience in various operational and corporate roles in the mining industry with a specific focus on coal. He worked for Anglo American for more than 25 years, ultimately leading the coal division for three years. He has subsequently held a number of leadership positions in the South African mining industry, including CEO of Coal of Africa Limited and Miranda Mineral Holdings Limited before joining Sibanye.
The Sibanye Group strategy will continue to be driven by a Group executive committee, which will to be headed up by the CEO, Neal Froneman. Existing Sibanye Prescribed Officers, Charl Keyter (Chief Financial Officer), Dawie Mostert (Commercial Services), Hartley Dikgale (Corporate Affairs), Richard Stewart (Business Development) and Robert van Niekerk (Organisational Effectiveness), together with the Divisional CEOs will comprise the rest of the Group Executive Committee, with a Group Executive: Human Capital portfolio expected to be appointed in the near future. Sibanye’s Group Executive will be complemented by members of the CEO’s Office, which will house key strategic functions including Communications (Thabisile Phumo), Protection Services (Nash Lutchman), Investor Relations (James Wellsted) and Safety, Health and Environment, which is currently vacant but will be filled in due course.
“The Sibanye Group Executive assembles an experienced array of relevant mining industry experience, including strong technical capacity to deliver the leadership required for Sibanye to continue on its strategic path, and ensure delivery of superior value to all stakeholders,” Neal Froneman commented.
Sibanye’s revised leadership structures have been established to provide Sibanye with a seamless transition into a multi-commodity business, in particular facilitating the effective integration of the Rustenburg and Aquarius operations into a Platinum Division.
According to Neal Froneman; “The organisational arrangements will provide for effective management of our operations, particularly with regard to unit cost management, which is critical to prolonging the economic lives of our gold, uranium and platinum assets. We see these developments as central to realisation of our vision, which remains, ‘superior value creation for all of our stakeholders.’”
SVP Investor Relations
Sibanye Gold Limited
+27 83 453 4014
Sponsor: J.P. Morgan Equities South Africa Proprietary Limited
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 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 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 existing operations; the success of exploration and development activities; changes in the market price of gold and/or uranium; the occurrence of hazards associated with underground and surface gold and uranium mining; the occurrence of labour disruptions and industrial action; the availability, terms and deployment of capital or credit; changes in government regulations, particularly environmental regulations and new legislation affecting water, mining and mineral rights; the outcome and consequence of any potential or pending litigation or regulatory proceedings or other environmental, health and safety issues; power disruptions and cost increases; fluctuations in exchange rates, currency devaluations, inflation and other macro-economic factors; the occurrence of temporary stoppages of mines for safety incidents and unplanned maintenance reasons; Sibanye’s ability to hire and retain senior management or sufficient technically skilled employees, as well as its ability to attract sufficient historically disadvantaged South Africans representation 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.