Integrated Annual Report 2014 SCOPE OF THE REPORT GUIDE TO OUR 2014 REPORTS Sibanye Gold Limited (Sibanye or the Group) to relevant discipline heads and interviews is listed on the Main Board of the JSE Limited based broadly on GRI systems already in place, (JSE) in terms of its stock exchange licence for the provision of the quantitative information (ordinary shares) and on the New York Stock included in this document. Exchange (NYSE) American Depositary Receipts Sibanye currently collates and reports sustainable (ADRs). Sibanye reports in compliance with development performance on an annual basis. the JSE Listing Requirements, the International Financial Reporting Standards (IFRS), as issued ASSURANCE by the International Accounting Standards Board Sibanye’s internal audit function is conducted (IASB), the South African Institute of Chartered in-house, and is required to provide an Accountants (SAICA) Financial Reporting independent evaluation of the Group’s internal Guides, the South African Companies Act, 2008 control processes and systems in order to (Act No 71 of 2008) (the Companies Act), the mitigate any business risks. Code of and Report on Governance Principles for South Africa (King III), and in terms of the Independent assurance provider KPMG Services South African Code for Reporting of Exploration Proprietary Limited (KPMG Services) provided Results, Mineral Resources and Mineral limited assurance on selected sustainability Reserves (SAMREC) guidance on the reporting performance indicators in accordance with of Mineral Resources and Mineral Reserves. the International Standards on Assurance Engagements (ISAE) 3000. The period under As such, this integrated report for the This report should be read in review was 1 January 2014 to year ended 31 December 2014 provides conjunction with the Summarised 31 December 2014 for the selected shareholders with an overview of the context, Report and Notice of Annual General sustainability performance indicators. performance and objectives of the business; Meeting 2014 and the Mineral the resources and capacity it has at its disposal; The KPMG Services Statement of Assurance can Resources and Mineral Reserves and how these are used to deliver value for all be found on page 121. Supplement to the Integrated of its stakeholders. Report 2014. The sustainability performance data selected by REPORT CONTENT Sibanye for assurance by KPMG Services can be In determining the content of the report, Sibanye found on page 124. has identified certain financial and non- The reporting guideline used by Sibanye financial issues that are most important to the includes the GRI G4 Sustainability Reporting sustainability of the Group. The report takes into Guidelines, the Broad-based Socio-economic Summarised Report and Notice of account the International Integrated Reporting Annual General Meeting 2014 Empowerment Charter for the South African <IR> Framework published by the International Mining and Minerals Industry (Mining Charter) Integrated Reporting Council (IIRC) in (2002) and related scorecard (2004) and the December 2013 and the G4 guidelines (“core” amendments to the Mining Charter (2010) and format) of the Global Reporting Initiative (GRI) related scorecard (2010), as well as Sibanye’s to provide insight into the Group’s resources internally developed guidelines. and relationships (“the capitals”: financial, human, manufactured, intellectual, social and KPMG Inc (KPMG Inc) has audited the relationship, and natural) that create value over consolidated financial statements, and its time at Sibanye’s operations, which include report and opinion can be found on page 153 Beatrix, Cooke, Driefontein, Kloof and projects. of this report. Sibanye’s consolidated financial statements are available on page 160. Mineral Resources and Mineral Reserves Supplement to the Integrated Report 2014 Sibanye focuses on sustainability issues deemed most important to the Group and its stakeholders. For more information on sustainability reporting In determining these material issues, relating to at Sibanye, please contact: G4, cognisance was taken of the guidance on James Wellsted materiality provided by the IIRC and the GRI. Senior Vice President: Investor Relations The content-gathering and data-collation Tel: +27 11 278 9656 process for the report included questionnaires E-mail: [email protected] FORWARD LOOKING STATEMENTS Certain statements in this document constitute “forward looking statements” within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of 1934. These forward looking statements, including, among others, those relating to Sibanye’s future business prospects, revenues and income, wherever they may occur in this document and the exhibits to this document, are necessarily estimates reflecting the best judgment of the senior management and directors of Sibanye, and involve a number of known and unknown risks and uncertainties that could cause actual results, performance or achievements of the Group to differ materially from those suggested by the forward looking statements. As a consequence, these forward looking statements should be considered in light of various important factors, including those set forth in this document. Important factors that could cause the actual results to differ materially from estimates or projections contained in the forward looking statements include, without limitation, economic, business, political and social conditions in South Africa and elsewhere; changes in assumptions underlying Sibanye’s estimation of its current Mineral Reserves and Resources; the ability to achieve anticipated efficiencies and other cost savings in connection with past and future acquisitions, as well as existing operations; the success of exploration and development activities; changes in the market price of gold and/or uranium; the occurrence of hazards associated with underground and surface gold and uranium mining; the occurrence of labour disruptions and industrial action; the availability, terms and deployment of capital or credit; changes in government regulations, particularly environmental regulations and new legislation affecting water, mining and mineral rights; the outcome and consequence of any potential or pending litigation or regulatory proceedings or other environmental, health and safety issues; power disruptions and cost increases; fluctuations in exchange rates, currency devaluations, inflation and other macro-economic factors; the occurrence of temporary stoppages of mines for safety incidents and unplanned maintenance reasons; Sibanye’s ability to hire and retain senior management or sufficient technically skilled employees, as well as its ability to attract sufficient historically disadvantaged South Africans’ representation in management positions; failure of Sibanye’s information technology and communications systems; the adequacy of Sibanye’s insurance coverage; any social unrest, sickness or natural or man-made disaster at informal settlements in the vicinity of some of Sibanye’s operations; and the impact of HIV, tuberculosis and other contagious diseases. These forward looking statements speak only as of the date of this document. The Group undertakes no obligation to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events. CONTENTS CONTENTS SCOPE OF THE REPORT OVERVIEW Objectives 03 Group profile 04 External context 08 Business overview 14 Key features – Financial and IFC 02 non-financial performance 16 Guide to our 2014 reports STRATEGIC LEADERSHIP Perspective from the Chair 20 BUSINESS Board 22 PERFORMANCE Chief Executive’s report 26 CFO’s report 32 Management 34 Managing risk, identifying opportunities 36 18 Engaging with stakeholders 40 44 Material issues 42 ACCOUNTABILITY ANNUAL FINANCIAL Financial capital 46 STATEMENTS Human capital 50 Manufactured capital and Intellectual capital 74 Social and relationship capital 88 Natural capital 100 Statement of Mineral Resources and 136 160 Mineral Reserves 125 Management’s discussion Statement of responsibility by Independent assurance and analysis of the the Board of Directors 137 report: page 121 Corporate governance report 138 financial statements 162 Report of the Risk Committee 144 Consolidated income statement 174 Report of the Social Consolidated statement and Ethics Committee 145 of financial position 176 Report of the Audit Committee 146 Consolidated statement of changes in equity 178 Directors’ report 148 Consolidated statement Share capital statement 152 of cash flows 179 Independent auditor’s report 153 Notes to the consolidated Remuneration report 154 financial statements 180 ADMINISTRATIVE DETAILS Shareholder information 235 Administration and 235 corporate information IBC Sibanye Gold Integrated Annual Report 2014 01 OVERVIEW Overview Our vision: Superior value creation for all stakeholders through a culture of caring CONTENTS OBJECTIVES Group profile 04 External context 08 Business overview 14 Key features – Financial and 03 non-financial performance 16 02 Sibanye Gold Integrated Annual Report 2014 OVERVIEW OBJECTIVES OBJECTIVES 2014 KEY PERFORMANCE OBJECTIVE PERFORMANCE INDICATORS • Fatal injury frequency rate 0.12 (2013: 0.10) Improve • Lost time injury frequency rate 5.87 (2013: 6.13) safety, operational focus and Integration and restructuring of Cooke acquisition • Productivity productivity (2013: