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Sibanye Stillwater Limited (JSE:SSW) News - Operating update - Quarter ended 31 March 2022
SIBANYE STILLWATER LIMITED
(SIBANYE-STILLWATER)
Incorporated in the Republic of South Africa
Registration number 2014/243852/06
Share code: SSW and SBSW
Issuer code: SSW
ISIN: ZAE000259701
OPERATING UPDATE
QUARTER ENDED 31 MARCH 2022
Johannesburg, 5 May 2022: Sibanye Stillwater Limited (Sibanye-Stillwater or the Group) (JSE: SSW and NYSE: SBSW) is pleased to provide an
operating update for the quarter ended 31 March 2022 (Q1 2022). The Group's financial results are only provided on a six-monthly basis.
SALIENT FEATURES - QUARTER ENDED 31 MARCH 2022 COMPARED TO QUARTER ENDED 31 MARCH 2021 (Q1 2021)
- Solid Group financial performance with Group adjusted EBITDA of R13.7 billion (US$898 million)
- Consistent operating performance across all PGM segments
- US PGM recycling operations deliver solid performance
- Lockout at SA gold operations continues
- Keliber definitive feasibility study (DFS) completed
US dollar SA rand
Quarter ended KEY STATISTICS Quarter ended
Mar 2021 Dec 2021 Mar 2022 UNITED STATES (US) OPERATIONS Mar 2022 Dec 2021 Mar 2021
PGM operations(1,2)
154,350 127,774 122,389 oz 2E PGM production(2) kg 3,807 3,974 4,801
2,128 1,729 2,058 US$/2Eoz Average basket price R/2Eoz 31,323 26,661 31,835
920 1,120 1,244 US$/2Eoz All-in sustaining cost(4) R/2Eoz 18,940 17,265 13,763
PGM recycling(1,2)
195,474 172,511 190,871 oz 3E PGM recycling(2) kg 5,937 5,366 6,080
2,909 3,459 3,061 US$/3Eoz Average basket price R/3Eoz 46,588 53,338 43,519
SOUTHERN AFRICA (SA) OPERATIONS
PGM operations(2)
425,484 441,900 410,848 oz 4E PGM production(2,5) kg 12,779 13,745 13,234
3,524 2,470 2,961 US$/4Eoz Average basket price R/4Eoz 45,061 38,094 52,722
1,186 1,182 1,175 US$/4Eoz All-in sustaining cost(4) R/4Eoz 17,886 18,230 17,738
Gold operations
249,392 260,325 137,091 oz Gold production kg 4,264 8,097 7,757
1,782 1,784 1,873 US$/oz Average gold price R/kg 916,351 884,643 857,126
1,606 1,682 2,420 US$/oz All-in sustaining cost(4) R/kg 1,183,944 833,848 772,572
GROUP
1,325 855 898 US$m Adjusted EBITDA(3,6) Rm 13,664 13,180 19,826
14.96 15.42 15.22 R/US$ Average exchange rate using daily closing rate
(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) and US PGM recycling is principally platinum, palladium and rhodium referred to as 3E (3PGM)
(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. Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Adjusted EBITDA is not a measure of performance under IFRS and should be
considered in addition to and not as a substitute for other measures of financial performance and liquidity. For a reconciliation of profit/loss before royalties and tax to adjusted EBITDA, see
"Adjusted EBITDA reconciliation - Quarters"
(4) See "Salient features and cost benchmarks - Quarters" for the definition of All-in sustaining cost (AISC)
(5) The SA PGM production excludes the production associated with the purchase of concentrate (PoC) from third parties. For a reconciliation of the production including third party PoC, refer to
the "Reconciliation of operating cost excluding third party PoC for Total US and SA PGM, Total SA PGM and Marikana - Quarters"
(6) Group Adjusted EBITDA includes Sibanye-Stillwater Sandouville Refinery (Sandouville Refinery) for the two months since acquisition (4 February 2022)
Stock data for the quarter ended 31 March 2022 JSE Limited - (SSW)
Number of shares in issue Price range per ordinary share (High/Low) R49.12 to R75.40
- at 31 March 2022 2,829,789,481 Average daily volume 14,998,316
- weighted average 2,813,863,510 NYSE - (SBSW); one ADR represents four ordinary shares
Free Float 99% Price range per ADR (High/Low) US$12.52 to US$20.32
Bloomberg/Reuters SSWSJ/SSWJ.J Average daily volume 4,938,199
OVERVIEW FOR THE QUARTER ENDED 31 MARCH 2022 COMPARED TO QUARTER ENDED 31 MARCH 2021
The strategic benefits of the Group's growth and diversification are evident in the solid financial performance delivered for Q1 2022. The
operating environment during 2022 has been characterised by socio-political and economic uncertainty, however the Group remains
well positioned to navigate through these challenges, both in the internal and the external environment.
Restrictions relating to COVID-19 have reduced significantly in most of the world with the chip shortage affecting global auto production
during H2 2021 alleviating during the quarter. The continued pursuit of a zero COVID strategy in China and the conflict in Ukraine,
combined with the economic sanctions imposed on Russia have however heightened economic uncertainty, resulting in significant
commodity price volatility. In South Africa the socio-economic and labour environment remains challenging, with the lockout of the
Association of Mineworkers and Construction Union (AMCU) and the National Union of Mineworkers (NUM) at our SA gold operations,
following extended wage negotiations, currently entering the third month. We continue to engage with organised labour in order to
secure a fair and sustainable agreement, but will not be coerced into above inflation wage demands which may impact on the
sustainability of our operations and negatively impact other stakeholders.
Notwithstanding the prevailing global geopolitical uncertainties, precious metal prices have remained robust, albeit with significant
volatility, and, underpinned by a strong operating performance from our SA PGM operations, Group adjusted EBITDA of R13.7 billion
(US$898 million) for Q1 2022 was strong, albeit 31% lower than for Q1 2021 (which at the time was a record quarterly financial result). On an
annualised basis, Q1 2022 adjusted EBITDA equates to approximately R55 billion (US$3.6 billion). This is well above adjusted EBITDA for 2020
of R49.4 billion (US$3 billion) and R15 billion (US$1 billion) for 2019. Other than the record adjusted EBITDA of R68.6 billion (US$4.6 billion)
for 2021, the Q1 2022 annualised adjusted EBITDA is the highest since the inception of the Group, signaling a significant and sustainable
transformation in the financial position and outlook of the Group.
Our value creation journey and solid financial position, was recently confirmed by a meaningful upgrade in the Group's credit rating by
Moody's Investors Service at the end of April 2022 from Ba3 to Ba2 with a positive outlook.
Another highlight for the quarter, was Sibanye-Stillwater's re-inclusion in the Bloomberg Gender-Equality Index (GEI) at the end of January 2022,
an affirmation of progress in our inclusivity journey. Subsequent to the inclusion in the GEI, our senior leadership was further diversified
and strengthened with two out of three executive-level promotions awarded to women from historically disadvantages backgrounds
during the period.
SAFE PRODUCTION
Following the implementation of additional targeted safety initiatives, including our "Rules of Life" campaign during H2 2021 and decisive
actions taken during Q4 2021 to address the occurrence of fatal incidents, including suspending operations across the Group and halting
production at high incident shafts, we have seen a pleasing improvement in the Group safety performance.
The consistent improvements in all safety injury indicators observed during H2 2021, were maintained during Q1 2022, with the overall
Group Total Recordable Injury Frequency Rate (TRIFR) reducing from 7.84 (per million hours) for Q1 2021 to 5.71 for Q1 2022, a notable 27%
improvement year-on-year.
Similar trends were observed in other safety indicators including a 23% improvement in the Serious Injury Frequency Rate (SIFR), and a 30%
improvement in the Lost Day Injury Frequency Rate (LDIFR) for Q1 2022 compared with Q1 2021.
While the focus on continued improvement in all aspects of safety will be maintained, the primary focus during 2022, will be on the
continued implementation of the "Fatal elimination strategy", which was developed in conjunction with independent experts during Q4
2021. The focus of the strategy is to operationalise and institutionalise the commitment and responsibility for safety among line
management of operations and to mitigate high energy risks.
The tragic occurrence of three fatalities during Q1 2022 (compared with three fatalities experienced during Q1 2021), has again
underscored the importance of implementing this campaign which is well advanced in its roll out throughout the Group. On 19 January 2022,
Mr Thabile Cele (age 36), a locomotive operator at Driefontein Pitseng shaft, was fatally injured in a tramming accident, and on
14 February 2022, Mr Mhahapile Mphaphuli (age 52), a train driver assistant at the Rustenburg Central Service Railway Operations was fatally
injured in a surface railway accident. Regrettably, after an extended period in hospital after a scraper related incident on 21 October 2021
at Beatrix South shaft, on 27 February 2022, Mr Makatisi Madie (age 47) a winch operator succumbed to injuries he incurred during the incident.
As a result of these unfortunate events, the fatal injury frequency rate (FIFR) increased from 0.079 in Q1 2021 to 0.084 in Q1 2022.
The Board and Management of Sibanye-Stillwater extend their sincere condolences to the family, friends and colleagues of our three
departed colleagues. We remain committed to the continuous improvement in health and safety at our operations and we have
enhanced our risk approach to make fatality prevention our main priority.
OPERATING REVIEW
US PGM operations
2E PGM production from the US PGM operations was in line with Q4 2021 (due to the operational stoppages in June 2021 and subsequent
operating restrictions, it is more meaningful to compare the US PGM operations with Q4 2021 rather than Q1 2021) with production
stabilising. The US PGM operations remained constrained by the Mine Safety and Health Administration (MSHA) section 103(k) order
imposed after the fatal incident which occurred in June 2021, which was only lifted on 1 March 2022 (after 265 days). Despite the lifting of
the MSHA order, production from the Stillwater West mine will remain restricted due to the current self-imposed rail operating procedures
which will remain in place until collision avoidance systems have been implemented at the operations, at which point these procedures
will be reviewed in consultation with MSHA.
The operational review to optimise operating output to ensure an appropriate sustainable return on capital from the US PGM operations is
currently being undertaken considering: operating, inflation, supply chain and human resources constraints currently being experienced
(e.g. increased reliance on contract labour due to a skills shortage in Montana), as well as the medium and longer term outlook for the
palladium market. The review is expected to be completed by mid-year. Since the acquisition of Stillwater, the world-class high-grade
orebody has repaid its acquisition cost and further prudent allocation of capital is expected to continue to deliver superior returns over
more than three decades of operating life.
Mined 2E PGM production from the US PGM operations of 122,389 2Eoz for Q1 2022 was negatively impacted by the constraints
mentioned above. In addition, certain blocks at the East Boulder mine encountered poor ground conditions which are having a short
term impact on both grade and productivity at this operation.
AISC of US$1,244/2Eoz (R18,940/2Eoz) for Q1 2022 was 11% higher than for Q4 2021 (US$1,120/2Eoz, R17,265/2Eoz), primarily due to lower
grades and the operational challenges at the East Boulder mine and higher ore reserve development expenditure (ORD). ORD increased
by 36% to US$42 million (R637 million) due to an increase in primary development quarter on quarter and a change in the accounting
classification of growth capital expenditure (see below*) resulted in sustaining capital increasing by 14% quarter on quarter to
US$11 million (R166 million). AISC was also impacted by higher royalties, insurance and taxes which combined accounted for US$177/2Eoz in
Q1 2022 compared to US$153/2Eoz for Q4 2021, a 16% increase.
Total capital expenditure for Q1 2022 declined by 8% to US$74 million (R1.1 billion) quarter on quarter with project capital declining by
47% to US$21 million (R319 million) due to the change in accounting classification of ORD.
*The change in the classification of Stillwater East development from growth capital to sustaining capital (ORD) during the quarter,
resulted in an increase in ORD expenditure (and corresponding decrease in Project capital) which contributed to the increase in AISC.
Part of the operational review involves reassessing the rate of development at Stillwater East in the light of significant development costs
arising from premiums on contractor costs. As a result, the completion of the 56 level holing to the Benbow decline later this year will be
the only remaining Stillwater East expansion project in the short term.
US PGM recycling operations
The global autocatalyst recycling market remains constrained due to ongoing logistics, transport (port congestion and truck shortage)
and fuel cost challenges, which affected receipt rates for our US PGM recycling operation during Q1 2022. Despite these constraints, the
US PGM recycling operation delivered a solid operational and financial performance. The US PGM recycling operations fed an average
of 23.7 tonnes per day (tpd) of spent autocatalyst material for Q1 2022, consistent with the 23.8 tpd fed for Q1 2021. During Q1 2022,
recycling operations fed 190,871 3Eoz, marginally less than the 195,474 3Eoz fed in Q1 2021.
PGM recycling ounces sold declined by 32% to 147,571 3Eoz with the average basket price received for Q1 2022 of US$3,061/3Eoz, 5%
higher than for Q1 2021. The marginal pipeline build during the quarter, largely due to the timing of customer receipts, is expected to be
released during Q2 2022.
SA PGM operations
The SA PGM operations continued to perform strongly, producing 421,540 4Eoz in Q1 2022 (including third party purchase of concentrate
(PoC)), 5% lower than for Q1 2021. Underground production of 370,272 4Eoz was 5% lower year-on-year but partly offset by 15% higher
surface production of 40,576 4Eoz.
4E PGM production from the SA PGM operations (excluding PoC) of 410,848 4Eoz, was 3% lower year-on-year, primarily due to a slower
than planned return to work at the Marikana and Rustenburg operations after the Christmas break.
Cost management excellence, despite inflationary pressures was again evident from the 6% reduction in AISC compared to Q1 2021
(including third party PoC purchases) to R18,600/4Eoz (US$1,222/4Eoz), primarily due to reduced third party PoC material purchases. AISC
(excluding PoC) for Q1 2022 was only 1% higher year-on-year at R17,886/4Eoz (US$1,175/4Eoz), despite marginally lower production. This
consistently good cost management from the SA PGM operations was maintained despite the impact of inflationary pressures affecting
the mining industry globally, partially offset by higher credits received from the by- products sold as result of increased metal prices
and is in stark contrast to the double-digit cost increases reported by PGM industry peers during the past 12 months.
The Marikana operation continued to deliver consistently good operating results. Production of 169,102 4Eoz (excluding PoC) was 3%
lower year-on-year with production from surface sources down 2% to 6,562 4Eoz and underground production 3% lower at 162,540 4Eoz,
due to a slower than expected ramp-up in January 2022. Costs for Q1 2022 were again well managed with AISC (excluding PoC)
R17,806/4Eoz (US$1,170/4Eoz) 5% lower year-on-year. PGM production of 179,794 4Eoz in Q1 2022 (including PoC) was 7% lower than Q1
2021 primarily due to 44% lower third party PoC production of 10,692 4Eoz due to the wind down of two third party PoC contracts during
Q4 2021. AISC (including PoC) of R19,372/4Eoz (US$1,273/4Eoz) was 17% lower year-on-year due to a significant reduction in PoC purchase
costs due to the lower levels of PoC material purchased.
4E PGM production from the Rustenburg operation for Q1 2022 of 149,041 4Eoz was 5% lower year-on-year. Underground production of
130,171 4Eoz declined by 6% also due to the slower than expected start-up in January 2022, temporary operational challenges at
Siphumelele and Khuseleka conventional shafts and at the Bathopele mechanised mine which is currently mining through the Hex River
fault. This was partly offset by 6% higher surface production of 18,870 4Eoz. AISC for the Rustenburg operation increased by only 5%
year-on-year to R20,041/4Eoz (US$1,317/4Eoz) driven by lower underground production and inflationary cost pressures, partly offset by
lower royalties and the impact on inventory movement caused by the 4E basket mix included in the period end inventory valuation.
PGM production of 49,518 4Eoz from the Kroondal operation, was 7% lower than for Q1 2021 due to adverse ground conditions at both
Kroondal East and West which led to lower yields, particularly in March 2022 and is expected, as planned to continue for the remainder of
the year. AISC of R14,863/4Eoz (US$977/4Eoz), was 22% higher than for Q1 2021 as a result of lower production and additional
underground support required for the adverse ground conditions. The open pit Klipfontein project is now fully ramped up and produced
around 3,000 4Eoz (metal in concentrate) in March 2022 on a 100% basis. The final project capital expenditure of R10 million (https://www.keliber.fi/en/news. A summary of the DFS outcomes (all
figures are in real terms) are as follows:
Key figures (100% basis)* Unit DFS Value 2022
Financial
Total project capital expenditure EUR million 475
Post-tax NPV (8% discount rate) EUR million 1,228
Post-tax Internal Rate of Return (IRR) % 31
Payback period (from the start of production) Years 3.5
Annual average EBITDA (FY2030) EUR million 253
Other
Life of mine Years 16
Total Ore reserves million tonnes 12.3
Annual production battery-grade lithium hydroxide monohydrate (own ore) tonnes/year 15,000
Cash cost (per LiOH tonne from own ore in 2030) EUR/tonne 4,198
*In the updated DFS, Keliber has used a price estimate for the battery-grade lithium hydroxide prepared by Roskill - Wood Mackenzie. The
average LiOH price used in Keliber's financial model is US$24,936/tonne, significantly below the current price of around US$70,000/tonne.
The forecasted demand for lithium hydroxide remains robust, which is reflected in the price outlook of lithium hydroxide.
On 27 April 2022, Keliber was granted the Building permit for its Lithium Chemical plant by the city of Kokkola. The lithium chemical plant
will be built in the Kokkola Industrial Park (KIP) in Finland. At the chemical plant, Keliber's spodumene concentrate is converted to
battery-grade lithium hydroxide monohydrate, used in electric vehicles batteries, among other things.
OPERATING GUIDANCE FOR 2022*
4E PGM production from the SA PGM operations for 2022 remains unchanged at between 1,750,000 4Eoz and 1,850,000 4Eoz with AISC
between R18,500/4Eoz and R19,200/4Eoz (US$1,233/4Eoz and US$1,280/4Eoz). Capital expenditure is forecast at R4,800 million (US$317 million)
including R950 million (US$63 million) of project capital expenditure on the K4 project.
Forecast mined 2E PGM production from the US PGM operations for 2022 currently remains unchanged at between 550,000 2Eoz and
580,000 2Eoz, with AISC of between US$980/2Eoz to US$1,030/2Eoz. Capital expenditure is forecast to be between US$290 million and
US$310 million (including US$70 million of project capital). As mentioned, management is currently undertaking an optimisation planning
process to ensure an appropriate ongoing return on capital invested is achieved in the current and medium-term environment. The results
of this study are expected by mid year 2022 and will inform future guidance.
The US Recycling operations are forecast to feed between 750,000 and 800,000 3Eoz. Capital expenditure is forecast at approximately
US$3 million.
Annual guidance for the SA gold operations is suspended due to the ongoing lockout. Guidance will be revised and updated on the
lifting of the lockout.
*The dollar costs of the SA operations quoted as part of the guidance, are based on an average exchange rate of R15.00/US$.
NEAL FRONEMAN, CHIEF EXECUTIVE OFFICER
SALIENT FEATURES AND COST BENCHMARKS - QUARTERS
US and SA PGM operations
US OPERATIONS SA OPERATIONS
Total US
and SA
PGM(1) Total US PGM Total SA PGM(1) Rustenburg Marikana(1) Kroondal Plat Mile Mimosa
Under- Under- Under- Under-
Attributable ground(2) Total ground Surface ground Surface ground Surface Attributable Surface Attributable
Production
Tonnes milled/treated 000't Mar 2022 9,291 328 8,963 4,131 4,832 1,420 1,422 1,538 928 833 2,482 340
Dec 2021 9,614 326 9,288 4,219 5,069 1,442 1,478 1,610 999 811 2,592 356
Mar 2021 9,319 389 8,930 4,219 4,711 1,505 1,330 1,536 892 830 2,489 348
Plant head grade g/t Mar 2022 2.38 12.74 2.00 3.29 0.89 3.29 1.11 3.78 0.85 2.28 0.77 3.57
Dec 2021 2.42 13.46 2.03 3.45 0.85 3.52 1.00 3.90 0.87 2.39 0.75 3.57
Mar 2021 2.49 13.54 2.01 3.34 0.81 3.24 1.11 3.89 0.88 2.38 0.63 3.60
Plant recoveries(3) % Mar 2022 75.15 90.08 71.42 84.74 29.35 86.66 37.18 86.96 25.87 81.09 24.65 71.86
Dec 2021 76.20 89.26 72.86 85.44 30.35 87.41 36.98 86.93 27.01 83.37 27.08 72.85
Mar 2021 77.72 90.07 73.73 86.15 28.68 88.79 37.42 87.55 26.51 83.52 21.29 74.18
Yield(3) g/t Mar 2022 1.79 11.48 1.43 2.79 0.26 2.85 0.41 3.29 0.22 1.85 0.19 2.57
Dec 2021 1.84 12.01 1.48 2.95 0.26 3.08 0.37 3.39 0.23 1.99 0.20 2.60
Mar 2021 1.94 12.20 1.48 2.88 0.23 2.88 0.42 3.41 0.23 1.99 0.13 2.67
PGM production(3,4) 4Eoz - 2Eoz Mar 2022 533,237 122,389 410,848 370,272 40,576 130,171 18,870 162,540 6,562 49,518 15,144 28,043
Dec 2021 569,674 127,774 441,900 399,853 42,047 142,642 17,572 175,492 7,547 51,952 16,928 29,767
Mar 2021 579,834 154,350 425,484 390,298 35,187 139,194 17,762 168,180 6,691 53,046 10,734 29,878
PGM sold(5) 4Eoz - 2Eoz Mar 2022 563,328 111,153 452,175 155,095 17,167 187,611 49,518 15,144 27,640
Dec 2021 644,419 144,925 499,494 167,506 15,592 222,295 51,952 16,928 25,221
Mar 2021 596,486 129,900 466,586 164,689 16,970 193,783 53,046 10,734 27,364
Price and costs(6)
Average PGM basket price(7) R/4Eoz - R/2Eoz Mar 2022 42,210 31,323 45,061 46,559 29,993 45,007 48,327 36,793 34,514
Dec 2021 35,418 26,661 38,094 38,904 26,850 38,071 41,043 31,693 30,074
Mar 2021 47,954 31,835 52,722 52,982 31,114 53,663 58,377 37,944 38,383
US$/2Eoz - US$/4Eoz Mar 2022 2,773 2,058 2,961 3,059 1,971 2,957 3,175 2,417 2,268
Dec 2021 2,297 1,729 2,470 2,523 1,741 2,469 2,662 2,055 1,950
Mar 2021 3,205 2,128 3,524 3,542 2,080 3,587 3,902 2,536 2,566
Operating cost(8) R/t Mar 2022 977 5,704 797 1,820 155 1,277 945 53 1,203
Dec 2021 993 5,755 819 1,879 164 1,305 980 63 1,180
Mar 2021 948 5,061 762 1,581 163 1,287 853 43 1,050
US$/t Mar 2022 64 375 52 120 10 84 62 3 79
Dec 2021 64 373 53 122 11 85 64 4 77
Mar 2021 63 338 51 106 11 86 57 3 70
R/4Eoz - R/2Eoz Mar 2022 17,306 15,287 17,952 19,858 11,659 18,616 15,893 8,716 14,585
Dec 2021 17,020 14,682 17,744 18,992 13,829 18,597 15,303 9,570 14,110
Mar 2021 15,465 12,755 16,521 17,093 12,211 17,865 13,351 10,043 12,233
US$/2Eoz - US$/4Eoz Mar 2022 1,137 1,004 1,179 1,305 766 1,223 1,044 573 958
Dec 2021 1,104 952 1,151 1,232 897 1,206 992 621 915
Mar 2021 1,034 853 1,104 1,143 816 1,194 892 671 818
All-in sustaining cost(9) R/4Eoz - R/2Eoz Mar 2022 18,142 18,940 17,886 20,041 17,806 14,863 7,462 13,979
Dec 2021 18,001 17,265 18,230 20,148 18,379 15,437 6,971 16,394
Mar 2021 16,621 13,763 17,738 19,002 18,755 12,137 10,369 13,401
US$/2Eoz - US$/4Eoz Mar 2022 1,192 1,244 1,175 1,317 1,170 977 490 918
Dec 2021 1,167 1,120 1,182 1,307 1,192 1,001 452 1063
Mar 2021 1,111 920 1,186 1,270 1,254 811 693 896
All-in cost(9) R/4Eoz - R/2Eoz Mar 2022 19,177 21,546 18,419 20,041 19,012 14,863 7,462 13,979
Dec 2021 19,400 22,047 18,579 20,148 19,165 15,437 6,971 16,394
Mar 2021 17,678 17,523 17,739 19,002 18,757 12,137 10,369 13,401
US$/2Eoz - US$/4Eoz Mar 2022 1,260 1,416 1,210 1,317 1,249 977 490 918
Dec 2021 1,258 1,430 1,205 1,307 1,243 1,001 452 1,063
Mar 2021 1,182 1,171 1,186 1,270 1,254 811 693 896
Capital expenditure(6)
Ore reserve development Rm Mar 2022 1,021 637 384 142 242 - - -
Dec 2021 864 476 388 148 240 - - -
Mar 2021 657 306 351 146 205 - - -
Sustaining capital Rm Mar 2022 552 166 386 156 183 46 1 113
Dec 2021 1,050 147 903 271 519 107 6 181
Mar 2021 499 250 249 112 96 35 6 114
Corporate and projects Rm Mar 2022 523 319 204 - 204 - - -
Dec 2021 751 611 140 - 140 - - -
Mar 2021 580 580 - - - - - -
Total capital expenditure Rm Mar 2022 2,096 1,122 974 298 629 46 1 113
Dec 2021 2,665 1,234 1,431 419 899 107 6 181
Mar 2021 1,736 1,136 600 258 301 35 6 114
US$m Mar 2022 138 74 64 20 41 3 - 7
Dec 2021 173 80 93 27 58 7 - 12
Mar 2021 116 76 40 17 20 2 - 8
Average exchange rate for the quarters ended 31 March 2022, 31 December 2021 and 31 March 2021 was R15.22/US$, R15.42/US$ and R14.96/US$, respectively
Figures may not add as they are rounded independently
(1) The Total US and SA PGM, Total SA PGM and Marikana excludes the production and costs associated with the purchase of concentrate (PoC) from third parties. For a reconciliation of the
Operating cost, AISC and AIC excluding third party PoC, refer to "Reconciliation of operating cost excluding third party PoC for Total US and SA PGM, Total SA PGM and Marikana - Quarters"
and "Reconciliation of AISC and AIC excluding third party PoC for Total US and SA PGM, Total SA PGM and Marikana - Quarters"
(2) 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 treats various recycling material which is excluded from the statistics shown above and is detailed in the PGM recycling table below
(3) The Eastern Tailings Treatment Plant (ETTP) processing facility ounce production resulting from the processing of material from the Marikana underground operation was previously reported under
the surface operation. These produced ounces are now appropriately included in the Marikana underground production resulting in a revision of March 2021 reported plant recoveries and yield
for the Marikana underground and surface operations
(4) Production per product - see prill split in the table below
(5) PGM sold includes the third party PoC ounces sold
(6) The Group and total SA PGM operations' unit cost benchmarks and capital expenditure exclude the financial results of Mimosa, which is equity accounted and excluded from revenue and cost of sales
(7) The average PGM basket price is the PGM revenue per 4E/2E ounce, prior to a purchase of concentrate adjustment
(8) 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
(9) 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"
Mining - PGM Prill split including third party PoC, excluding recycling operations
GROUP SA OPERATIONS US OPERATIONS
Mar 2022 Dec 2021 Mar 2021 Mar 2022 Dec 2021 Mar 2021 Mar 2022 Dec 2021 Mar 2021
% % % % % % % % %
Platinum 278,259 51% 297,498 51% 299,695 50% 250,401 59% 268,519 59% 264,712 60% 27,858 23% 28,979 23% 34,983 23%
Palladium 220,820 41% 234,266 40% 251,570 42% 126,289 30% 135,471 30% 132,203 30% 94,531 77% 98,795 77% 119,367 77%
Rhodium 36,738 7% 39,815 7% 38,485 6% 36,738 9% 39,815 9% 38,485 8%
Gold 8,112 1% 10,097 2% 9,209 2% 8,112 2% 10,097 2% 9,209 2%
PGM production 4E/2E 543,929 100% 581,676 100% 598,959 100% 421,540 100% 453,902 100% 444,609 100% 122,389 100% 127,774 100% 154,350 100%
Ruthenium 58,777 72,993 60,996 58,777 72,993 60,996
Iridium 14,566 16,561 15,436 14,566 16,561 15,436
Total 6E/2E 617,272 671,230 675,391 494,883 543,456 521,041 122,389 127,774 154,350
Figures may not add as they are rounded independently
Recycling at US operations
Unit Mar 2022 Dec 2021 Mar 2021
Average catalyst fed/day Tonne 23.7 23.0 23.8
Total processed Tonne 2,132 2,114 2,139
Tolled Tonne - - 14
Purchased Tonne 2,132 2,114 2,125
PGM fed 3Eoz 190,871 172,511 195,474
PGM sold 3Eoz 147,571 176,433 218,450
PGM tolled returned 3Eoz - 1,951 9,203
SA gold operations
SA OPERATIONS
Total SA gold Driefontein Kloof Beatrix Cooke DRDGOLD
Under- Under- Under- Under-
Total ground Surface ground Surface ground Surface ground Surface Surface Surface
Production
Tonnes milled/treated 000't Mar 2022 8,748 492 8,256 236 200 256 623 - - 774 6,659
Dec 2021 10,641 1,125 9,516 328 358 451 831 346 204 1,078 7,045
Mar 2021 11,150 1,206 9,944 338 - 429 1,331 439 198 1,143 7,272
Yield g/t Mar 2022 0.49 4.95 0.22 5.95 0.40 3.89 0.30 - - 0.21 0.21
Dec 2021 0.76 5.17 0.24 6.51 0.47 4.95 0.36 4.20 0.45 0.26 0.20
Mar 2021 0.70 4.60 0.22 6.57 - 4.69 0.37 3.00 0.31 0.24 0.19
Gold produced kg Mar 2022 4,264 2,437 1,827 1,404 79 996 189 37 9 159 1,391
Dec 2021 8,097 5,818 2,279 2,134 170 2,232 297 1,452 91 284 1,437
Mar 2021 7,757 5,547 2,210 2,220 - 2,010 487 1,317 61 280 1,382
oz Mar 2022 137,091 78,351 58,739 45,140 2,540 32,022 6,076 1,190 289 5,112 44,722
Dec 2021 260,325 187,053 73,272 68,610 5,466 71,760 9,549 46,683 2,926 9,131 46,201
Mar 2021 249,392 178,340 71,052 71,375 - 64,623 15,657 42,343 1,961 9,002 44,432
Gold sold kg Mar 2022 4,746 2,829 1,917 1,494 100 1,185 224 150 9 207 1,377
Dec 2021 8,426 6,148 2,278 2,330 176 2,289 282 1,529 91 266 1,463
Mar 2021 7,536 5,348 2,188 2,204 - 1,966 479 1,178 61 285 1,363
oz Mar 2022 152,587 90,954 61,633 48,033 3,215 38,099 7,202 4,823 289 6,655 44,272
Dec 2021 270,902 197,663 73,239 74,911 5,659 73,593 9,067 49,158 2,926 8,552 47,037
Mar 2021 242,287 171,942 70,345 70,860 - 63,208 15,400 37,874 1,961 9,163 43,821
Price and costs
Gold price received R/kg Mar 2022 916,351 916,562 915,543 924,528 913,043 916,485
Dec 2021 884,643 885,874 883,703 883,333 879,699 886,535
Mar 2021 857,126 855,399 858,364 853,592 870,526 858,107
US$/oz Mar 2022 1,873 1,873 1,871 1,889 1,866 1,873
Dec 2021 1,784 1,787 1,783 1,782 1,774 1,788
Mar 2021 1,782 1,778 1,785 1,775 1,810 1,784
Operating cost(1) R/t Mar 2022 511 6,486 155 5,301 295 5,637 254 - - 183 135
Dec 2021 519 3,695 143 4,223 274 3,787 148 3,075 230 191 126
Mar 2021 459 3,220 124 3,765 - 3,716 196 2,315 116 145 108
US$/t Mar 2022 34 426 10 348 19 370 17 - - 12 9
Dec 2021 34 240 9 274 18 246 10 199 15 12 8
Mar 2021 31 215 8 252 - 248 13 155 8 10 7
R/kg Mar 2022 1,048,077 1,309,397 699,507 891,026 746,835 1,448,795 835,979 13,432,432 2,111,111 893,082 647,017
Dec 2021 681,857 714,507 598,508 649,016 576,471 765,233 414,141 732,782 516,484 725,352 619,346
Mar 2021 659,688 700,090 558,281 573,288 - 793,134 535,524 771,830 375,410 593,929 567,149
US$/oz Mar 2022 2,142 2,676 1,430 1,821 1,526 2,961 1,708 27,450 4,314 1,825 1,322
Dec 2021 1,375 1,441 1,207 1,309 1,163 1,544 835 1,478 1,042 1,463 1,249
Mar 2021 1,372 1,456 1,161 1,192 - 1,649 1,113 1,605 781 1,235 1,179
All-in sustaining cost(2) R/kg Mar 2022 1,183,944 1,080,928 1,462,030 4,188,679 908,213 712,418
Dec 2021 833,848 822,426 908,207 869,753 819,549 684,211
Mar 2021 772,572 731,851 844,744 882,082 658,596 648,129
US$/oz Mar 2022 2,420 2,209 2,988 8,560 1,856 1,456
Dec 2021 1,682 1,659 1,832 1,754 1,653 1,380
Mar 2021 1,606 1,522 1,756 1,834 1,369 1,348
All-in cost(2) R/kg Mar 2022 1,224,821 1,080,928 1,486,870 4,213,836 908,213 729,121
Dec 2021 865,061 822,426 933,100 872,840 819,549 700,615
Mar 2021 784,554 731,851 865,440 882,082 658,596 648,129
US$/oz Mar 2022 2,503 2,209 3,039 8,611 1,856 1,490
Dec 2021 1,745 1,659 1,882 1,761 1,653 1,413
Mar 2021 1,631 1,522 1,799 1,834 1,369 1,348
Capital expenditure
Ore reserve development Rm Mar 2022 468 252 185 31 - -
Dec 2021 622 290 220 112 - -
Mar 2021 603 272 209 123 - -
Sustaining capital Rm Mar 2022 270 61 94 35 - 80
Dec 2021 480 119 223 68 - 70
Mar 2021 186 41 58 10 - 78
Corporate and projects(3) Rm Mar 2022 183 - 35 4 - 23
Dec 2021 243 - 64 5 - 24
Mar 2021 61 - 51 - - -
Total capital expenditure Rm Mar 2022 921 313 314 70 - 103
Dec 2021 1,345 409 507 185 - 94
Mar 2021 850 312 317 133 - 78
Total capital expenditure US$m Mar 2022 61 21 21 5 - 7
Dec 2021 87 27 33 12 - 6
Mar 2021 57 21 21 9 - 5
Average exchange rates for the quarters ended 31 March 2022, 31 December 2021 and 31 March 2021 was R15.22/US$, R15.42/US$ and R14.96/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) are 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 cost, see "All-in costs - Quarters"
(3) Corporate project expenditure for the quarters ended 31 March 2022, 31 December 2021 and 31 March 2021 was R121 million (US$8 million), R150 million (US$10 million) and R10 million
(US$1 million), respectively, the majority of which related to the Burnstone project and various IT projects
ALL-IN COSTS - QUARTERS
SA and US PGM operations
Figures are in millions unless otherwise stated
US OPERATIONS SA OPERATIONS
Total US
and SA Total US Total SA
R' million PGM(1) PGM(2) PGM(1) Rustenburg Marikana(1) Kroondal Plat Mile Mimosa Corporate
Cost of sales, before amortisation and
depreciation(3) Mar 2022 10,927 1,797 9,130 3,451 4,709 838 132 430 (430)
Dec 2021 10,986 2,396 8,590 3,306 4,251 871 162 394 (394)
Mar 2021 9,133 1,618 7,515 2,797 3,845 765 108 372 (372)
Royalties Mar 2022 638 - 638 365 269 4 - 31 (31)
Dec 2021 401 - 401 242 156 3 - 23 (23)
Mar 2021 829 - 829 440 385 4 - 44 (44)
Carbon tax Mar 2022 - - - (1) 1 - - - -
Dec 2021 1 - 1 - 1 - - - -
Mar 2021 1 - 1 - 1 - - - -
Community costs Mar 2022 40 - 40 - 40 - - - -
Dec 2021 (5) - (5) 3 (8) - - - -
Mar 2021 34 - 34 3 31 - - - -
Inventory change Mar 2022 (1,297) 74 (1,371) (476) (895) - - (21) 21
Dec 2021 (884) (520) (364) (138) (226) - - 26 (26)
Mar 2021 843 351 492 (92) 584 - - (6) 6
Share-based payments(4) Mar 2022 35 14 21 8 10 3 - - -
Dec 2021 47 19 28 11 13 3 - - -
Mar 2021 28 16 12 5 6 2 - - -
Rehabilitation interest and amortisation(5) Mar 2022 55 13 42 2 19 21 - 1 (1)
Dec 2021 79 8 71 1 42 28 - 1 (1)
Mar 2021 70 8 62 1 43 18 - 1 (1)
Leases Mar 2022 16 2 14 3 9 2 - - -
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