Sibanye's Neal Froneman risking his reputation on Stillwater
Success of Sibanye purchase hinges on precious-metals prices
Sibanye's deal to buy Stillwater Mining is the first time investors and shareholders have stopped to think twice about CEO Neal Froneman's strategy for the company since its listing in 2013. Froneman has led Sibanye since its unbundling from Gold Fields in 2012, and was lauded as the man who was going to turn around South Africa's "sunset" mining industry, with commentators describing him as a good negotiator and able to get the best price for good assets. Rightly so, as he turned around Gold Fields' dying gold mines and, with the acquisition of Aquarius and later Anglo American's Rustenburg mines, he boosted Sibanye's portfolio. The Stillwater deal, once finalised, will elevate Sibanye to third place in the global ranking of palladium producers and make it the fourth-largest platinum group metals producer. Stillwater will produce around 20% of the precious metals that Sibanye is producing now. The North American company produces about 550,000 ounces of PGM and mines a reef that con...
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