Name of the Project
Burnstone gold project.

Location
Balfour area, in Mpumalanga, South Africa.

Project Owner/s
Sibanye-Stillwater.

Project Description
The Burnstone project is a low-cost, extensively predeveloped gold asset, which was previously operated under Great Basin Gold.

Existing infrastructure includes a functional metallurgical facility; an established tailings storage facility; an equipped and functional decline shaft and trackless decline; surface infrastructure, such as offices, workshops and compressors; and extensive underground development and infrastructure.

The relatively shallow underground mining operation will mine the Kimberley reef to an average depth of about 550 m below surface (deepest 1.05 km).

The life-of-mine (LoM) is estimated at 22 years.

The project will produce about 138 000 oz/y of gold at steady state with a LoM to 2044.

Potential Job Creation
At the end of the first half of 2023, there were 740 people on site.

Net Present Value/Internal Rate of Return
The latest optimised project evaluation generates a 20% internal rate of return and a net present value of R1.3-billion at a gold price of R800 000/kg (2022 real terms).

Capital Expenditure
Total project capital of R2.8-billion (from 2021 onwards) and preproduction capital of R1.5-billion is forecast.

In Sibanye’s operating results for the third quarter ended September 30, 2023, project capital guidance remains unchanged at R1.6-billion, with R1.1-billion spent in 2023 to date, and R330-million spent in the quarter ended September 30, 2023, 5% higher than the third quarter of 2022.

Planned Start/End Date
The timeline to steady-state production has been delayed from December 2025 to August 2026.

Latest Developments
Capital investment has been deferred, with stoping and development activities ceasing, apart from the main shaft decline development.

All construction has also been suspended, except for the completion of the surface conveyors, and the support of Settler No 1 and Clearwater Dam No 1 and 2.

In the quarter ended March 31, 2024, R210-million was spent on the project. For 2024, planned project capital for Burnstone is unchanged at R390-million.

The project, following the deferral of capital expenditure as announced in February 2024, also requires restructuring to align with the reduction in planned capital activities. An S189 (retrenchment) consultation process on the restructuring of the Burnstone operations is in progress.

Key Contracts, Suppliers and Consultants
Read, Swatman & Voigt, or RSV (engineering design team for the balance of the engineering design); DLC Town Plan (access surveying and registration of the new servitudes for the new access road to Burnstone); and DTS (appointed for the design change to remove the skips from the shaft using the rock winder bank area).

Contact Details for Project Information
Sibanye-Stillwater executive VP: investor relations James Wellsted, ir@sibanyestillwater.com.