Sibanye retains its appetite for gold
CEO Neal Froneman says Sibanye likes gold and does not intend to be a platinum group metals company
Gold and platinum miner Sibanye Gold, which has rebranded as Sibanye-Stillwater after the substantial $2.6bn acquisition of US platinum group metals (PGM) producer Stillwater, still has an appetite for acquisitions in the gold sector. CEO Neal Froneman said on Wednesday that Sibanye liked gold and it was not its intention to be a PGM company. It made the Stillwater acquisition because PGMs were at an attractive point in the cycle. It had been difficult to find value-accretive gold transactions, but management was still looking. Sibanye has grown from a market capitalisation of R10bn in 2013 to a R44.9bn after a series of acquisitions, including the Cooke shafts, Burnstone, Rustenburg Platinum, Aquarius Platinum and Stillwater. It has also been widely speculated that Sibanye held talks with PGM producer Lonmin in 2016, but there was no deal. Sibanye initially funded the Stillwater deal with a bridging loan and Stillwater’s own cash. It has refinanced this through a $1bn rights issue ...
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