Johannesburg - Sibanye Gold, South Africa’s second-biggest gold producer, is on its way to making a purchase of assets in the platinum belt.
“We have approached most of the producers who have assets which we believe could enhance our portfolio and support our dividend strategy… At least one of the producers has made it clear that they will be selling assets,” spokesman James Wellsted said yesterday.
This comes after Deutsche Bank speculated on Tuesday that Anglo American may sell its strike-hit platinum mines valued at about $1.4 billion (R15.1bn) next year as it reviews its global assets.
Sibanye might be interested in acquiring Anglo American Platinum’s (Amplats) three Rustenburg mines, Deutsche Bank analyst Rob Clifford said in a note on Monday.
Sibanye was formed after Gold Fields unbundled its ageing assets – the Kloof, Driefontein and Beatrix mines, following labour strife in mid-August 2012 in which 34 people where killed. The stock listed on the JSE in February last year and has grown 109 percent year-to-date.
Output has been crippled since January 23 at Amplat’s Rustenburg, Amandelbult and Union mines, as well as Impala Platinum and Lonmin’s operations.
Anglo indicated on Monday that it was open to all options to create value for shareholders.
It also said it was examining how to reconfigure the portfolio to drive returns, particularly taking into account the opportunities of its Mogalakwena open-pit mine.
As part of a restructuring plan, Amplats reconfigured its Rustenburg production operations to 320 000 ounces from 350 000 ounces out of three platinum mines last year.
In addition, Amplats placed four unsustainable high-cost shafts – Khuseleka 1 and 2 and Khomanani 1 and 2 – on long-term care and maintenance last year.
Impala spokesman Johan Theron said yesterday that he was not aware of formal negotiations with Sibanye.
He indicated the longer the strike, the more likely it was that shafts would be placed on long-term care and maintenance.
At the same time, Impala is a long-term investor in the sector and is developing new shafts 16, 17 and 20.
Earlier this month, Sibanye told the market of its plans to acquire assets in the platinum industry, provided all internal investment criteria were met.
In a trading update, it said growth in the platinum sector was consistent with Sibanye’s strategy to grow the business in order to sustain its dividend profile and with its focus.
The company noted that the platinum industry shared many similarities with the gold industry and provided an opportunity to leverage Sibanye’s operating model and proven deep-level mining capability.
Sibanye’s operating profit increased by 19 percent to R4bn in the half-year to June from R3.4bn during the same period last year.
Shares gained 3.66 percent to close at R25.79 yesterday.