MINING
How Sibanye-Stillwater aims to cut costs and raise cash
After losing R16bn of its market capitalisation so far in 2018 in a precipitous fall of its shares, Sibanye-Stillwater has outlined plans to generate cash and cut costs. The company wants to generate up to $500m and cut R1bn from costs in SA where its gold mines have a poor safety performance in May. In the same update, Sibanye confirmed its belief in the success of its nearly R5bn all-share acquisition of platinum miner Lonmin, reiterating the cost and operational benefits of combining the world’s third-largest platinum miner’s assets with its own mines and plants near Rustenburg. Sibanye’s board was acutely aware of the "accelerated" drop in its already reduced share price and it was tackling the concerns behind the 47% fall in its stock in the year to date, giving it a capitalisation of R18bn. This made it the worst performer of the JSE’s major gold and platinum producers.
Only Lonmin has matched the fall, giving up 47% too. Sibanye’s net debt of R23bn, surpassing the value...
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