Sibanye Gold share price increasesComment on this story
Johannesburg - Sibanye Gold rose on the first day of trading in Johannesburg.
The stock was at 13.42 rand by 9:21 a.m. in the city compared with the opening trade of 13.20 rand, according to data compiled by Bloomberg.
The shares will also start trading on the New York Stock Exchange today.
Investors in Gold Fields, now the fourth-largest producer of the metal, on February 18 will receive one Sibanye share for each Gold Fields security, or one Sibanye American depositary receipt for every four in Gold Fields.
Gold Fields on November 29 said it would place its deeper, more labor-intensive South African mines into Sibanye.
South Deep, a mechanised operation and the company’s second-biggest mine, along with facilities in Peru, Ghana and Australia, will remain within Gold Fields.
The company is partly reacting to strikes that began in South Africa’s platinum industry, before spreading to other operations.
About 29,000 workers at mines that will be part of Sibanye walked out last year, winning pay gains that added to rising power costs and capital spending.
Employees who are members of the National Union of Mineworkers on February 8 marched to Gold Fields’ Libanon mine in Carletonville, west of Johannesburg, to protest against the spinoff and to demand that management stop transferring workers between operations.
Sibanye, which will be the biggest South African producer of bullion after AngloGold Ashanti, will comprise the KDC and Beatrix mines.
Neal Froneman, the former chief executive officer of Gold One International, Goliath Gold Mining and Uranium One, is CEO.
Gold Fields declined 11 percent to 93.99 rand. Gold rose was little changed at $1,667.70 an ounce. - Bloomberg