Sibanye Stillwater (SBSW)

[goldenpolarbear]

"... Sibanye Gold is totally reliant on Eskom for Electricity supply
• Sibanye Gold is one of Eskom’s largest clients, utilizing 1.6% of Eskom output per annum and will increase further with Platinum acquisitions to 2.1% of output.
• In order to remain financially viable and sustainable, Sibanye Gold requires reliable, affordable power
• The South African gold mining industry faces significant challenges:
– Ageing mines
– Electricity tariffs above inflation
– Labour costs, and
– Productivity.
• Margins under pressure due to rising costs and declining production
• Mine planning is affected by surprise RCA adjustments within the agreed period (MYPD3)...."

"South Rand Burnstone Project ... & New Level 2 Burnstone Project"

http://www.nersa.org.za/Admin/Document/Editor/file/Consultations/Electricity/Presentations/Sibanye%20Gold%20Ltd.pdf
The negative impact of ESKOM R22.8b RCA Application
Peter Turner Senior Vice President : Technical Services

Conclusion
• Ensuring the sustainability of, and unlocking value from South African gold resources will require stable/reliable supply and affordable input costs.
• Sibanye Gold is committed to investing capital for growth in South Africa however, unsustainable electricity price increases will lead to:
– Diminished operating performance – Early closure of mines
– Increasedunemployment
– Reduced capital investment.
• Repeated RCA increases will negatively affect the South African gold mining industry.
Sibanye Gold – “we are one”