Sibanye Gold Ltd (NYSE:SBGL) Q2 2020 Earnings Conference Call - Final Transcript

Aug 27, 2020 • 09:00 am ET


Sibanye Gold Ltd (NYSE:SBGL) Q2 2020 Earnings Conference Call - Final Transcript


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Good day ladies and gentlemen, and welcome to the Sibanye Stillwater Interim Results Presentation. All participants will be in listen-only mode. There will be an opportunity to ask questions later during the conference. [Operator Instructions] Please note that this call is being recorded.

I'd now like to turn the conference over to Neal Froneman. Please go ahead, Neal.

Neal Froneman

Good morning to those in America, and good afternoon to those in South Africa and Europe. It's indeed a pleasure to welcome you to the presentation of our H1 2020 results, which I've the pleasure of presenting. As always, moving onto the second slide, that's a safe harbor statement and I would urge you to take note of the forward-looking risks related to this presentation.

Moving on to the next slide and the foundation of any business is, of course, strategy, and we constantly measure ourselves according to our strategy and our strategy is simply strengthening our position as a leading international precious metals mining Company by doing the following and that really starts with -- and I'm looking at the 12 o'clock position. Building a values-based culture; ensuring safe production and operational excellence; deleveraging our balance sheet; addressing our South African discount, and then based on strengthened equity rating pursuing value-accretive growth. Of course, all of that is hold together by embedding our environmental, social, and governance excellence as a way we do business.

And I would like to move on to the next slide and actually just look at how we're progressing related to each one of those strategic goals. I'm not going to go through the slide in detail. But first of all, looking at building a values-based organizational culture, we made good progress during COVID. We actually used the opportunity to accelerate our program. That's still work in progress. And as you can see, we think we're about halfway there.

Ensuring safe production and operating excellence, I personally think that as a Company, we did extremely well, considering the COVID disruptions. And from an operating point of view and the progress point of view, we've given ourselves a big tick. Embedding ESG excellence in the way we do work -- we do business, and again, this is work in progress, will probably always be work in progress. We've put in a huge amount of effort, but I think again, we could -- we can give ourselves half a tick. In terms of progress in deleveraging our balance sheet, I think this is one of the highlights of the quarter. We are well below our interim target of one times, and we are close to the top of leverage levels before we embarked on any acquisitions. And with a net debt-to-EBITDA -- adjusted EBITDA of 0.55 times, we can give ourselves a big green tick there. Addressing our South African discount, this is probably going to be something that is ongoing, and again, I think we can give ourselves half a tick. We've had very good engagements in South Africa