Name of the Project
K4 platinum group metals (PGMs) project.

Location
North West, in South Africa.

Project Owner/s
Primary producer of platinum Sibanye-Stillwater.

Project Description
The K4 project is a tier one, low-cost, brownfield PGM expansion project at the Marikana mine operations.

The project entails the completion of the project, which was significantly advanced by previous owner Lonmin before it suspended the project, owing to capital constraints. The project is expected to reach sustainable production of about 250 000 oz/y platinum, palladium, rhodium and gold (4E) in about seven years.

About 11.5-million 4E ounces are expected to be produced over a 50-year life-of-mine, mining Merensky and upper group two reefs to a depth of 1 287 m.

Potential Job Creation
4 380 jobs will be created at steady state.

Net Present Value/Internal Rate of Return
The project has an estimated net present value (NPV), at a 15% discount rate, of R3-billion and an internal rate of return (IRR) of 33%, with a six-year payback using conservative project price assumptions. The NPV increases sevenfold to R21-billion, with an IRR of 80% and a four-year payback at current 2021 spot metal prices.

Capital Expenditure
R3.9-billion over eight years. Lonmin invested R4.4-billion in the project before it suspended the development of the project.

Planned Start/End Date
The project was approved in February 2021 and is expected to be brought into production within 12 months.

Latest Developments
In the year to December 31, 2021, the project setup phase, which entailed the approval of the scheduling and costing systems, and completing the development of the required management plan documentation for K4.

Contracts for building, and electrical work for the upgrade and completion of the industrial change-houses while onboarding these contractors, were completed and work has started.

Tenders for the underground infrastructural work and the electrical and instrumentation work have been adjudicated; onboarding has started.

Upgrades for the winder control systems design work has been completed and contracts placed.

Various underground equipment orders have been placed and majority of the equipment has been delivered.
The engineering design and compiling of scope of works and procurement are  proceeding as scheduled.

The K4 project is on target to start capital development during the second quarter of 2022.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Sibanye-Stillwater senior VP: investor relations James Wellsted, tel +27 10 493 6923 or email ir@sibanyestillwater.com.