MINERAL RESERVES AND RESOURCES Update

Transcription

1 MINERAL RESERVES AND RESOURCES Update Wayne Robinson Chief Executive Officer: Gold Division 28 July 2016

2 Disclaimer The information in this presentation may include forward-looking statements, which are based on current expectations and projections about future events. These statements may include, without limitation, any statements preceded by, followed by or including words such as target, expect, may, anticipate, estimate, will, and other words and terms of similar meaning or the negative thereof. These forward-looking statements, as well as those included in any other material discussed at the meeting, are subject to risks, uncertainties and assumptions, including, among other things, the development of Sibanye s business, general economic conditions and actions of regulators. In light of these risks, uncertainties and assumptions, the events in the forward-looking statements may not occur. No representation or warranty is made that any forward-looking statement will come to pass and no reliance should be placed on any forward-looking statement. No one undertakes to publicly update or revise any such forward-looking statement. In accordance with the requirements imposed by the JSE, Sibanye Gold reports its reserves using the terms and definitions of the SAMREC Code (2007 edition). There are differences between the SAMREC Code and the Security and Exchange Commission s Industry Guide 7. Mineral or ore reserves, as defined under the SAMREC Code, are divided into categories of proved and probable reserves and are expressed in terms of tonnes to be processed at mill feed head grades, allowing for estimated mining dilution, recovery and other factors. The lead Competent Person designated in terms of SAMREC, who take responsibility for the consolidation and reporting of Sibanye Gold s Mineral Resources and Mineral Reserves and of the overall regulatory compliance of these figures is Mr. Gerhard Janse van Vuuren, who gave his consent for the disclosure of the 2015 Mineral Resource and Mineral Reserve Statement. Mr Janse van Vuuren [BTech (MRM), GDE (Mining Eng.), MBA and MSCoC] is registered with Plato (PMS No 243) and has 27 years experience relative to the type and style of mineral deposit under consideration. He is the current Vice President: Mine Technical Services and is a full time employee of Sibanye Gold. Mr. van Vuuren consents to the inclusion of all information in this release relating to mineral resources and mineral reserves in the form in which it appears. The respective business unit based Mineral Resource Managers, relevant project managers and the respective Mineral Resource Management discipline heads have been designated as the Competent Persons in terms of SAMREC and take responsibility for the reporting of Mineral Resources and Mineral Reserves for their respective area(s) of responsibility. Additional information regarding these personnel, as well as the teams involved with the compilation of the Mineral Resource and Mineral Reserve declaration is incorporated in the Mineral Resources and Mineral Reserves Supplement that was published in conjunction with the 2015 Sibanye Gold Integrated Report. 2

3 Location of gold operations and projects Focused on the Wits Basin 3

4 Driefontein Commissioned 1952 Production to date 108Moz Resources 19.8Moz Reserves 8.2Moz Production (2016F)* 553koz AISC (2016F) US$780/oz LOM 27 years * at average R15.7/US$ year to date One of the most productive gold mines ever 4

5 Kloof Commissioned 1968 Resources Resource grade Reserves Reserve grade Production (2016F) AISC (2016F) 28.2Moz 15.4g/t 6.5Moz 7.5g/t 488koz US$825/oz LOM 18 years * at average R15.7/US$ year to date A high grade, long life operation 5

6 Beatrix Commissioned 1983 Resources (gold) 9.6Moz Reserves (gold) 4.3Moz Production (2016F) 315koz AISC (2016F)* US$865/oz LOM 14 years Resources (uranium) 26.0 Mlb Reserves (uranium) 11.7Mlb * at average R15.7/US$ year to date Gold projects provide opportunities to extend life + Uranium potential 6

7 Cooke Commissioned 1961 Resources (gold) 15.9Moz Reserves (gold) 1.5Moz Production (2016F) 252koz AISC (2016F)* US$890/oz LOM 8 years Resources (uranium) 95.4Mlb Resources (uranium) 14.7Mlb * at average R15.7/US$ year to date Significant surface tailings resources with high uranium content 7

8 RESERVES AND RESOURCES Overview 8

9 Sibanye Gold Division 2016 R&R declaration Gold Mineral Reserves increased by 9% to 31.0Moz, despite depletion of 1.6Moz in 2015 Depth extension projects at Driefontein 5 Shaft, Kloof 4 Shaft and Beatrix South were included Maiden Gold Reserve at Burnstone and gold and uranium reserves at the Beisa Project were included Continued conversion of secondary reefs and white areas at operations (1.4Moz) increased expenditure on exploration R65.1m in 2015 to R77.5m in 2016 Quality reporting Investment Analyst Society 'Squirrel Award' for reporting in 2013 and 2015 Organic growth projects have increased mineral Resources and Reserves 9

10 Mineral Reserves and Resources: assumptions Item Unit 31 Dec Dec 2014 Reserve gold price R/kg 430, ,000 Resource gold price R/kg 470, ,000 Reserve uranium price R/kg 1,140 1,110 Current operations Weighted pay limit cm.g/t 1,188 1,187 Average mined value cm.g/t 1,484* 1,529 Mill width cm Stoping width cm Mine call factor % Plant recovery factor % * Average mined value excludes the Beisa Project, which is a high grade U3O8, low gold grade project Gold price of R430,000/kg in accordance with SEC guidelines for a three-year average Year to date gold price R605,000 Year to date uranium contract price R1,500/kg Three-year average long-term contract price R1,140/kg applied from 2020 onwards for uranium Organic growth drives Reserve increase 10

11 Gold Mineral Resources and Reserves: operations Resources Reserves Gold 31 Dec 2015 total 31 Dec Dec 2015 total 31 Dec 2014 Tons (Mt) Grade (g/t) Gold (Moz) Gold (Moz) Tons (Mt) Grade (g/t) Gold (Moz) Gold (Moz) Underground Beatrix Cooke Driefontein Kloof Total underground Surface rock dumps (SRD) Beatrix Cooke Driefontein Kloof Total SRD Total operations Significant addition to operation s reserves through organic growth projects 11

12 Gold Mineral Resources and Reserves: major projects Resources Reserves Gold 31 Dec 2015 total 31 Dec Dec 2015 total 31 Dec 2014 Tons (Mt) Grade (g/t) Gold (Moz) Gold (Moz) Tons (Mt) Grade (g/t) Gold (Moz) Gold (Moz) Underground Beisa North Bloemhoek Burnstone De Bron Merriespruit Total underground TSFs Cooke surface (RSO) Driefontein Kloof Total TSF Projects Total Sibanye Gold 1, Maiden Reserves declared at Burnstone and Beisa 12

13 Uranium Mineral Resources and Reserves: operations Resources Reserves Uranium 31 Dec 2015 total 31 Dec Dec 2015 total 31 Dec 2014 Tons (Mt) Grade (kg/t) U 3 O 8 (Mlb) U 3 O 8 (Mlb) Tons (Mt) Grade (kg/t) U 3 O 8 (Mlb) U 3 O 8 (Mlb) Underground Beatrix Cooke Driefontein Kloof Total underground Surface rock dumps (SRD) Beatrix Cooke Driefontein Kloof Total SRD Total operations Significant underground and surface uranium resources 13

14 Uranium Mineral Resources and Reserves: major projects Resources Reserves Uranium 31 Dec 2015 total 31 Dec Dec 2015 total 31 Dec 2014 Tons (Mt) Grade (kg/t) U 3 O 8 (Mlb) U 3 O 8 (Mlb) Tons (Mt) Grade (kg/t) U 3 O 8 (Mlb) U 3 O 8 (Mlb) Underground Beisa North Bloemhoek Burnstone De Bron Merriespruit Total underground TSFs RSO Driefontein Kloof Total TSF Projects Total Sibanye Gold Significant underground and surface uranium reserves 14

15 Delivering a sustainable Gold Division kg Forecast of gold produced based on LoM profiles Gold Fields plan Pre-feasibilities studies undertaken De Bron Beisa Pending capital approval WRTRP Projects in development Burnstone Below infrastructure projects Kloof Driefontein Surface reserves in LoM Kloof Driefontein Cooke Beatrix Underground reserves in LoM Kloof Driefontein Cooke Beatrix 0 Note: Project profile is based on pre-feasibility and feasibility studies as at December 2015 Based on Reserves declared as at 31 December 2015 Assumptions: Gold price: R430,000/kg, Uranium R1,455/lb (real 2015 terms) Extending the operating life 15

16 2016 LOM REVIEW Current operations and organic projects

17 Operations LoM profiles: square metres Kloof and Driefontein DE Projects start production Average m²/month Beatrix Cooke Driefontein Kloof Based on current mine plan, production stable until

18 Operations LoM profiles: tons milled Current Cooke surface and Driefontein SRD complete in Average t/month Kloof SRD complete in Beatrix Cooke Driefontein Kloof Surface Surface TSF and SRD mining to be replaced by WRTRP 18

19 Operations LoM profiles: forecast gold produced Average kg/month Beatrix Cooke Driefontein Kloof Surface Gold production stable for five years 19

20 Operations LoM profiles: average value mined cm.g/t Beatrix increase in value due to West Section comprising majority of tail Increase in average due to Driefontein below infrastructure forming largest % of remaining mining 0 Group Beatrix Cooke Driefontein Kloof LoM profiles based on stable geological models and in line with current values 20

21 Operations LoM profiles: development Average m/month Beatrix Cooke Driefontein Kloof Development excludes opening up and secondary development required to access white areas 21

22 LoM profiles: development replacement rate m²/m Standard replacement ratio (with allowance for flexibility) is ~12m 2 /month for Cooke and between 20-30m²/month for the other operations The ratio increases as the development grid is completed and required development declines The historical replacement rate is ~20m²/month 22

23 Development requirement Gold required/planned (input) Gold rec. 316kg All development is calculated from ratios as per standard layout. Flexibility is added to the minimum amount required Tons milled 40,000 Stoping m 2 6,137 Ledging m Tons and square metres are calculated from ore flow parameters (input) Ledging calculated from ratio of stoping to ledging as per standard layout Main Reef metres Secondary Main 195 Waste metres 195 Secondary 0 Main 282 Total metres 282 Secondary 0 Planning pyramids are used to scientifically calculate development required 23

24 Access to secondary reefs Development required to access secondary reef horizon is significantly less than original development required to access the primary reef ORD capex is significantly lower As a result, pay limits for the secondary reefs will be lower than average Existing infrastructure Planned development Existing infrastructure reduces capital cost 24

25 Developed ore reserves: months per mine Developed ore reserves (DOR) are available for mining in the short term, pending sequencing and/or equipping of individual panels 35 Months of mining available Beatrix Kloof Driefontein Cooke Cooke DOR months 2014 DOR months present Present The continued focus on cost reduction and development maintains flexibility 25

26 Addressing operational underperfomance Cooke 4 has continued to underperform operationally and losses have accumulated Section 189 notification given on 11 July 2016 Underperformance largely volume related driven by: complex geology and structure seismic activity affecting access to high grade panels section 54 stoppages Closure of Cooke 4* would: reduce annual production by between 1.5t to 2t reduce AISC costs at the Cooke Operations by R32,000/kg reduce Sibanye Gold Divison AISC by R7,800/kg Resulting in a more profitable Group *Using 2015 reported numbers Sibanye will not subsidise loss-making production 26

27 QUESTIONS