Tuesday, September 27, 2022

Sibanye Stillwater CEO says market situations not very best for gold M&A

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A mine shaft is seen on the Sibanye gold mine in Westonaria, west of Johannesburg, April 6, 2016. REUTERS/Siphiwe Sibeko/File Photograph

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  • It’s not a purchaser’s market – Froneman
  • Sibanye critiques U.S PGM operations after flood affect
  • U.S. manufacturing steerage lowered on Montana floods
  • Floods to chop 60,000oz manufacturing from 2022 manufacturing

Aug 11 (Reuters) – South African gold miner Sibanye Stillwater (SSWJ.J) is concentrated on operational stability and containing prices as market situations should not conducive for gold mergers and acquisitions, Chief Government Neal Froneman stated on Thursday.

Sibanye’s South African rival Gold Fields(GFIJ.J)stated in Could it could purchase Canada’s Yamana Sources in an all-share deal that valued the Toronto-listed miner at $6.7 billion in Could. learn extra

Gold Fields shares fell 20% on the day of the announcement on issues about dilution and a major premium on Yamana’s valuation.

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Requested if Sibanye would take into account buying extra gold belongings, Froneman, who has urged gold miners to consolidate, stated “the market is simply not conducive at this stage to doing value-accretive transactions.”

“It isn’t a purchaser’s market, which is why we have been quiet. There’s nonetheless an excessive amount of froth,” Froneman stated throughout an investor name.

Gold stays a key mineral in Sibanye’s basket of commodities, he added. “We’re shifting right into a recession and that type of signifies that there is going to be alternatives.”

On Thursday, Sibanyecut the manufacturing forecast for its U.S platinum group metals (PGM) mines after floods in Montana compelled a seven-week suspension of operations at its Stillwater mine, slicing an estimated 60,000 ounces from 2022 manufacturing.

Sibanye now expects its U.S PGM mines to provide 445,000-460,000 ounces of platinum and palladium this 12 months, down from 550,000-580,000 ounces anticipated beforehand.

Sibanye stated it was reviewing its U.S operations within the face of rising inflation, provide chain constraints, affect of the battle in Ukraine, and altering market situations for palladium, the dominant mineral in its American mines.

Sibanye stated it could step up mine improvement and give attention to coaching and retaining workers to scale back its reliance on costly contract labor that has pushed prices up not too long ago.

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Reporting by Nelson Banya and Helen Reid; Modifying by Kirsten Donovan and Richard Chang

Our Requirements: The Thomson Reuters Belief Ideas.

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