WEST RAND TAILINGS RETREATMENT PROJECT Unlocking value and creating sustainability Grant Stuart Vice President: Projects 28 July 2016
WEST RAND TAILINGS
RETREATMENT PROJECT Unlocking value and
creating sustainability
Grant Stuart
Vice President: Projects
28 July 2016
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.
2
WRTRP: introduction
• The West Rand Tailings Retreatment Project (WRTRP) is a large-scale, long-life
surface tailings retreatment opportunity, the economic viability of which was
secured through the acquisition of the Cooke assets by Sibanye in 2014
• The WRTRP will turn to account sizeable surface gold and uranium resources
at Sibanye's Kloof, Driefontein and Cooke operations
– realising significant long-term value for shareholders
– benefitting all stakeholders by creating sustainable employment, facilitating community development, contributing to the revenue
and delivering environmental benefits
• The project’s inherent flexibility and the extensive, detailed technical studies
undertaken, allow for phased development and staging of capital, substantially
reducing project risk
• Process design has been historically proven at similar, existing operations
– incorporating modern technology and world-leading environmental
standards
• Possible use of existing surface processing infrastructure provides
additional flexibility
3Creating superior value for all our stakeholders
Project history
Cooke surface resources were consolidated within Sibanye in 2014, creating the
necessary critical mass and scale
4WRTRP has an eight-year history of development with ~R800m spent on technical studies
2009 2012 2013 20142007
Harmony Rand Uranium Gold One
Gold Fields
Sibanye Gold
2015
West Wits
DFS
West Wits
PFS
Mega
Tailings
Gold only
study
WRTRP
FEED
WRTRP
DFS
WRTRP
PFS
WRTRP
concept
Cooke Uranium Project
Review
Cooke Uranium Project
FEED
Cooke Uranium Project
DFS
Cooke Uranium Project
PFS
Background
Independently, the Sibanye (ex. Gold Fields) and Cooke surface projects were not
economically or environmentally viable
5Tailings retreatment projects have complementary synergies
Gold Fields (West Wits Project)* Cooke Uranium Project
Drivers • Gold recovery
• Environmental remediation
Drivers • Uranium recovery
• Uranium
consolidation/growth
Characteristics • Sizable, high grade gold
resources
• Uranium and sulphuric acid
by-products
Characteristics • High grade uranium
resources
• Gold and sulphuric acid
by-products
Pros • Scale and gold grade
• Existing gold processing
infrastructure
Pros • Scale and uranium grade
• Uranium processing
infrastructure at Cooke 4
Cons • Removal of uranium and
sulphur from final tailings
• Not economic due to low
uranium grades
Cons • Limited life due to lower
resource volumes
*Excluding South Deep
Combined project: synergies
Integrating projects and leveraging synergies
• High-grade Driefontein surface facilities deliver early cash flows
• High uranium grade and size of Cooke resources underpin value and justify
construction of uranium processing plant
• Scale of combined West Wits surface resources can support a long
life-annuity operation
• Phased development of central, high-volume processing facilities and single
deposition site reduce risk
• Existing gold and uranium processing infrastructure can be used
when appropriate
• Central positioning of metallurgical processing facility and deposition site
relative to resources is cost effective
• Possible consolidation of district resources in the future – improving project
Return On Invested Capital (ROIC) and providing regional environmental solution
6Complementary assets reduce execution risk and unlock value
Social and environmental benefits
WRTRP – leveraged organic growth to deliver economic value with concurrent
rehabilitation and provide sustainable social and environmental benefits
• Removal and remediation of existing tailings deposits currently located on
sensitive dolomitic aquifers reduces future environmental liability and risk
– single 1,350ha central tailings facility to be constructed away from
sensitive dolomitic areas on less permeable substrate
– removal of tailings facilities will reduce health risks for surrounding
communities from possible exposure to dust
• Removal of sulphides by sulphuric acid plant to reduce acid mine drainage risk
• Currently impacted mine water to be re-used in the hydraulic mining process
• Excess water to be treated to potable drinking water standards
7Early rehabilitation and closure reduces future environmental liabilities
WRTRP infrastructure plan
8200km of pipeline infrastructure
Central processing plant (CPP) location
9Modular design of CPP facilitates phased expansion
Regional tailings storage facility (RTSF) layout
10RTSF to be developed in phases enabling phasing of capital
Full project implementation: conceptual profile
Plant modules developed in 1Mtpm
stages to treat Driefontein, Kloof
and Cooke clusters simultaneously
• Production of 3.5Moz of gold
and 48Mlbs of uranium
over LoM
• Peak production:
– Gold: 210koz
– Uranium: 2.5Mlbs
• Deposition site: capable of
receiving peak throughput
of up to 4Mtpm
11Staged full approach consumes Sibanye’s own resources in 26 years
-
500 000
1 000 000
1 500 000
2 000 000
2 500 000
3 000 000
-
50 000
100 000
150 000
200 000
250 000
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
Gold (LHS) Uranium (RHS)
Stage 11.4Mtpm
113koz Au
2mlbs U3O8
Capital: R9.6bn
Stage 33.4Mtpm
182koz Au
2.3mlbs U3O8
Capital: R1bn
Stage 22.4Mtpm
160koz Au
2.3mlbs U3O8
Capital: R2bn
oz lbs
0.000
0.020
0.040
0.060
0.080
0.100
0.120
0.140
0.160
0.180
0.200
0.220
Resource portfolio
Uranium grade (x axis), gold grade (y axis), tonnage (bubble)
Average grade
Lower grade
Four 'anchor resources'
(30% of the Sibanye resource)
fund initial capital
High grade
Four “anchor” resources underpin project value
12Capital recovered during phase one; potential 35-year annuity income thereafter
Cooke surface assets
Driefontein and Kloof surface assets
Bubble size – tonnage (30Mt)
Cooke to ‘cover' uranium capital
Driefontein to ‘cover' gold capital
Balance of resource provides sustainability and scale; annuity
income for 35+ years possible
Pay limit dependent on metallurgical recoveries per dam
Ura
niu
m g
rad
e (
kg
/t)
Gold grade (g/t)
WRTRP Preferred integrated gold
and uranium approach
Integrated approach
Total Sibanye resource of 715Mt includes ~6.5Moz Au and ~99Mlb U3O8
• “Get into business” approach focusing on four anchor resources reduces
capital and risk:
– 210Mt resource containing 2.4Moz gold and 53Mlbs uranium
– Cooke Dump (CD) reclaimed simultaneously with Driefontein 3 and 5
facilities (DRI3 and DRI5) and Cooke 4 facility (C4S) over 18 years
• Monthly throughput of 1Mt from DRI3, DRI 5 and C4S and 400,00t from CD
• Annual steady state gold production: 100,000oz potentially peaking at
115,000oz
• Annual steady state uranium production: 2.2Mlbs potentially peaking at 2.5Mlbs
• Total expected production of 1.3Moz of gold and 33.4Mlbs of uranium
over 18 years
• Combined expected capital investment of ~R9.6bn over three years
14A smart execution “get-into-business” option utilising 37% of the gold resource
Note: DRI3, DRI5 - Driefontein 3/5 Dams, C4S – Cooke 4 South Dam and CD - Cooke Tailings Dams
Integrated approach (cont’d)
• R9.6bn initial regional financial investment
• Treat DRI3, DRI5 and C4S TSFs at 1Mtpm
through the Central Processing Plant (CPP)
– 50kt/m of high-grade gold and uranium
concentrate from flotation of DRI3, DRI5
and C4S treated at CPP
• Treat uranium rich CD at 400ktpm
• Deposition onto RTSF at 1.4Mtpm
15Significant social and environmental investment into declining West Rand
Reclamation line
Deposition line
Surface plants
Sand dumps
Surface rock dumps
Historical tailings
Pits (old open cast workings
Current deposition facility
Regional tailings facility (RTSF)
Sibanye lease area
Neighbouring mines
Uranium
Cooke Dump
(CPP)
(Gold flotation and processing plant)
RTSF
Cooke 4 South TSFs
Note: DRI3, DRI5 - Driefontein 3/5 Dams, C4S – Cooke 4 South Dam and CD - Cooke Tailings Dams
Driefontein 3/5
TSFs
Driefontein 3/5
TSFs
Integrated approach (cont’d)
16Plug and play optionality; option to delay uranium integration
Note: DRI3, DRI5 - Driefontein 3/5 Dams, C4S – Cooke 4 South Dam and CD - Cooke Tailings Dams
~18ktpm (Recleaner conc)
1,000ktpm DRI3, DRI5 and C4S
Sulphide flotation
Cooke 4 U and Au plant
Oxide flotation
New goldplant
150ktpm
Sulphide flotation
Roaster and acid
plant Acid storage
Uranium plant
Gold design
RTSF
50ktpm
Rougher/ cleaner
Rougher tail
450ktpm
Polish /
fine
grindCleaner
tails
400ktpm Cooke TSF
Uranium design
Production profile – integrated approach
• Additional Sibanye-owned resources offer further life and leverage
annuity potential
• Initial investment of R9.6bn (2017-2019) with first production expected in 2020
17Anchor resources cover the capital
~210Mt containing 2.4Moz Au and ~54Mlbs U3O8
-
500 000
1 000 000
1 500 000
2 000 000
2 500 000
3 000 000
-
50 000
100 000
150 000
200 000
250 000
300 000
350 000
Driefontein 3,5, Old 4 Dam and Cooke Dam (Anchor Resources)
Gold Production LHS (Oz) Acid Production LHS (t) Uranium Production RHS (lbs)
Go
ld p
rod
ucti
on
(o
z)
Acid
pro
du
cti
on
(t)
Ura
niu
m P
rod
ucti
on
(lb
s)
Costs – integrated approach
18Allocation of indirect capital costs offers funding flexibility
Opex Gold Uranium Sulphuric acid
Production over lifeMoz 1.32* Mlbs 33.37* Mt 5.07*
kg 41,057
CapexRbn 4.02 Rbn 3.34 Rbn 2.20
$m 277 $m 230 $m 152
OpexRm 5.10 Rm 13.16 Rm 2.35
$m 351 $m 907 $m 162
Metrics
CapexR/kg 97,962 R/lb 100 R/t 435
US$/oz 210 US$/lb 7 US$/t 30
OpexR/kg 124,121 R/lb 394 R/t 463
US$/oz 266 US$/lb 27 US$/t 32
TotalR/kg 222,084 R/lb 494 R/t 898
US$/oz 476 US$/lb 34 US$/t 62
* Shared capex (indirect costs) allocated to gold, uranium and acid modules
Exchange Rate: ZAR14.5: 1 US$
Funding solution – integrated approach
• Potential funding structure: 'Uranium off-take' solution with equity investor (EI)
and 'build, own and operate' model for sulphuric acid with EPCM and third
party distributor (TPD)
19Execution option dependent on final funding solution
Cooke dump
Driefontein 3
RTSF
Uranium plant Gold plant
Sulphuric acid plant
Central Process Plant
R3.3bn* R4.02bn*
R2.2bn*
1.3Moz
5.1Mt
33.7Mlbs
EI funding
EPCM and TPD
Au
conc
Au
Calcine
30%
Sulphide
Sulphur
* Shared capex (indirect costs) allocated to gold, uranium and acid modules
Sensitivity of financed integrated approach
“Get into business” design for 37% of the Sibanye-owned gold resource is
significantly enhanced if uranium and sulphuric acid plants are funded by
third parties
20Securing financing significantly improves financial returns and viability of project
• Project valuation considers
standalone project NPV;
upside through annuity
resource, tax shields and
debt funding
• NPV of R4bn and IRR of 33%
at a gold price of
R600,000/kg with funding
solution in place
Assuming Uranium price of US$45/lb from 2021 exchange rate: ZAR14.5: 1 US$
0%
5%
10%
15%
20%
25%
30%
35%
40%
-
1 000 000
2 000 000
3 000 000
4 000 000
5 000 000
6 000 000
NPV
(R
000)
NPV and IRR sensitivity to gold price with
funding solution in place
NPV (LHS) IRR (RHS)
IRR
%
R/kg
WRTRP Delayed uranium
capital execution
Delayed uranium capital execution
Total Sibanye resource of 715Mt includes ~6.5Moz Au and ~99Mlb U3O8
• “Get into business” approach focusing on three anchor resources reduces
capital and risk:
– 124Mt resource containing 1.6Moz gold and 18.7Mlbs uranium
– DRI3 reclaimed first, followed by DRI5 and C4S over 11 years
• Throughput of 1Mtpm from DRI3, DRI 5 and C4S and delayed 400,00tpm from CD
• Annual steady state gold production: 90,000oz
• Annual steady state uranium production: 300,000lbs ramping up to 1Mlbs
with C4S
• Total expected production of 860,000oz of gold and 6.1Mlbs of uranium
over 11 years
• Combined capital investment of ~R4.6bn expected over two-year period
– an expected delay to uranium and acid plant capital investment for 8 years
until the life of the Cooke 4 North tailings dam reaches final height
22A gold focused 'get-into-business' strategy utilising 17% of the resource
Note: DRI3, DRI5 - Driefontein 3/5 Dams, C4S – Cooke 4 South Dam and CD - Cooke Tailings Dams
Delayed uranium capital execution (cont’d)
Prioritise the high-gold Driefontein
complex
• Driefontein 3 and 5 TSFs and C4S
reclaimed @ 1Mtpm
• 124Mt Sibanye resource contains 1.6Moz gold and
18.7Mlbs uranium
• Delay uranium and acid plant
capital
• Opportunity to use existing
surface infrastructure:
– 180ktpm recently upgraded
CIL plant currently treating
surface rock material
– Cooke 4 metallurgical plant
23Phased uranium development and staging of capital
950ktpm
to RTSF
50ktpm
Sulphide
flotation
Fine grind
Oxide
flotation
New Au
plant CPP
150ktpm
Gold execution strategy
1,000ktpm
DRI3, DRI5 and C4S
50ktpm
to Ezulwini TSF
Cooke 4
U and Au plantDP2/3 Au plant
Delayed uranium capital execution (cont’d)
24Delay of uranium execution is expected to reduce the execution timeframe to 24 months
• R4.6bn initial regional financial investment
• Treat DRI3, DRI5 and C4S TSFs at 1Mt/m
through the CPP
– 50ktpm of high grade gold and
uranium concentrate from flotation of
DRI3, DRI5 and C4S treated at CPP
• Deposition onto RTSF at 950ktpm and
50ktpm onto active facility Cooke 4 Plant
(Integrated metallurgical complex)Uranium
Central Gold
Plant
Driefontein 3/5
TSFs
Reclamation line
Deposition line
Surface plants
Sand dumps
Surface rock dumps
Historical tailings
Pits (old open cast workings
Current deposition facility
Regional tailings facility
Sibanye lease area
Neighbouring minesRTSF
Note: DRI3, DRI5 - Driefontein 3/5 Dams, C4S - Cooke 4 South Dam and CD - Cooke Tailings Dams
C4S
Driefontein 3/5
TSFs
Cost of sales – delayed uranium capital execution
25Allocation of indirect capital costs offers funding flexibility
Opex Gold Uranium
Production over lifekoz 860 Mlbs 6.1
kg 26,749
CapexRbn 4.43* Rbn 116*
$m 306 $m 8
OpexRm 5.07 Rm 1.64
$m 349 $m 113
Metrics
CapexR/kg 165,610 R/lb 19
US$/oz 355 US$/oz 1
OpexR/kg 189,353 R/lb 269
US$/oz 406 US$/oz 19
TotalR/kg 354,963 R/lb 288
US$/oz 761 US$/lb 20
* Shared capex (indirect costs) allocated to gold, uranium and acid modules
Exchange Rate: ZAR14.5: 1 US$
Delayed uranium capital execution: production profile
• Additional Sibanye-owned annuity offers additional life
• Initial investment of R4.6bn (2017-2018) with expected production in 2019
26“Anchor resources” cover the capital
-
200 000
400 000
600 000
800 000
1 000 000
1 200 000
-
20 000
40 000
60 000
80 000
100 000
120 000
Driefontein 3,5, Old 4 Dam (Anchor Resources)
Gold Production LHS (Oz) Uranium Production RHS (lbs)
Go
ld P
rodu
ction
(o
z)
Ura
niu
m P
rodu
ction
(lb
s)
Conclusion
• Combined, the Cooke and Sibanye surface resources and infrastructure
enhance the economic viability and development of long-life,
environmentally-beneficial surface retreatment project
• Low technical risk project with flexible design and implementation routes that
provide valuable optionality pending commodity prices and funding solution
– potential to phase uranium and acid plant later
• First phase of integrated approach covers 75% of total project capital
requirement (30% of the resource)
• Project valuation considers standalone project; upside through potential of
annuity resources, tax shields and debt funding
• Expected name plate production of 100,000oz gold and 2Mlbs uranium annually
by the end of Q1 2020
• Continuation of front-end engineering design (FEED) while permitting and
funding strategy continue
– permits including approval from the NNR, DMR and DWS expected by Q3
2016
– investigating alternative funding options that have the potential to enhance
equity valuations
27Creating superior value for all stakeholders