Sibanye-Stillwater makes surprise R1.3bn move on DRDGold
The gold and platinum miner is still chewing on the Stillwater acquisition
Gold and platinum group metals miner Sibanye-Stillwater will take a 38% stake in DRDGold worth R1.3bn, by vending a number of its surface assets into the tailings retreatment specialist. It could take a controlling stake within two years. Sibanye, the largest producer of South African gold and a major platinum group metals producer, had put its West Rand Tailing Retreatment Project (WRTRP) on the backburner. It cited an uncertain mining environment and uncertain returns for the project but some analysts said the company had overextended its finances by buying America’s Stillwater for $2.2bn cash and placing a large debt burden on itself. One of the options was to bring in DRDGold, which was openly hunting fresh tailings for its enormous ERGO plant near Brakpan, east of Johannesburg. Sibanye said on Wednesday the transaction with DRDGold would create an immediate R1.3bn worth of value for the assets it was vending into the company and keep its exposure to the WRTRP. "We are excited a...
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