JOHANNESBURG - Sibanye-Stillwater will pay R1 billion to boost its shareholding in DRDGold, the JSE-listed specialist in gold recovery, to 50.1 percent from 38 percent after being the company’s controlling shareholder for more than a year.
Sibanye-Stillwater, the precious metal producer, said on Friday it would buy an additional 12 percent stake in DRDGold by subscribing for 168 million new ordinary shares later this month as part of its consolidation of the South African mining industry.
It said the acquisition was part of a 2017 deal in which it sold selected gold processing and tailings plants to DRDGold in exchange for a 38 percent stake in the company. At the time, Sibanye-Stillwater was given an option to acquire an additional 12 percent in DRDGold within two years.
Sibanye-Stillwater chief executive Neal Froneman said on Friday that, by securing the majority holding in DRDGold, the company would continue to create value for all its stakeholders.
“We are thrilled that the value of our initial shareholding has already increased by 147 percent over 17 months. The DRDGold team has a proven track record and has successfully implemented the Far West Rand Gold Recoveries (FWGR) project, having reached its 500000 ton per month planned capacity for Phase 1,” Froneman said. Sibanye-Stillwater has previously said the partnership with DRDGold aimed to grow an international, industry-leading, surface retreatment business.