PGM profit helps Sibanye survive strike in gold mines
Gold production losses from Amcu’s strike, which began after the competition tribunal approved Sibanye’s acquisition of Lonmin, has been mitigated by palladium’s rally
Sibanye-Stillwater’s diversification into platinum has helped mitigate losses from labour disruptions at its gold mines. Sibanye objected to an earlier version of this article which interpreted a strategic update it released on January 10 as saying the strike was not hurting its profits. “The lost revenue during the strike will definitely hurt the bottom line, but as per our statement, the strong performance of the platinum group metal (PGM) operations has mitigated this impact to some extent,” Sibanye investor relations senior vice-president James Wellsted said in an e-mail. “The strategic benefits of the group’s commodity and geographic diversification are clearly evident, with operational disruptions in the gold division offset by rising platinum group metal (PGM) prices and the solid operational performance of the PGM operations,” Sibanye said in its strategic update. Members of the Association of Mineworkers and Construction Union (Amcu) have been striking since November 21 201...
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