Name of the Project
Marikana 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 PGMs expansion project at the Marikana mine operations.

The project entails the completion of a project significantly advanced by previous owner Lonmin before it suspended operations, owing to capital constraints.

K4 will access the Merensky and upper group two (UG2) reefs to average 250 000 oz/y at steady state, with its main shaft extending down 1 332 m and its vertical shaft to a depth of 1 078 m.

Associated surface infrastructure is largely in place, with only minor refurbishments required, and K4’s concentrator plant fully operational at a nameplate capacity of 130 000 t a month of Merensky and UG2 reef.

About 11.5-million platinum, palladium, rhodium and gold (4E) PGM ounces are expected to be produced over a 50-year life-of-mine.

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

More than 1 000 employees were on site as December 31, 2022, which is set to double in the next year.

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 and the IRR to 80%, with 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
Not stated.

Latest Developments
K4 started stoping and development outside of the shaft infrastructure footprint in the six months to June 30, 2023, resulting in ore reserve development (ORD) ramping up.

Since K4 started stoping and development operations outside the main shaft infrastructure in March 2023, on-reef development was expended in working costs, with off-reef development capitalised as ORD.

Sibanye reports that the project is about 43% complete. Underground infrastructure development and electrical work is progressing well, and surface infrastructure is on track. K4 produced 7 063 4E ounces in the first half 2023, with production expected to accelerate in the second half of 2023 as further ore drawpoints (boxholes) are recommissioned.

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.