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

South African gold miner Sibanye Stillwater is concentrated on operational stability and containing prices as market situations aren’t conducive for gold mergers and acquisitions, chief government Neal Froneman mentioned on Thursday, 11 August.

Source: Reuters/Siphiwe Sibeko

Supply: Reuters/Siphiwe Sibeko

Sibanye’s South African rival Gold Fields mentioned in Could it might purchase Canada’s Yamana Sources in an all-share deal that valued the Toronto-listed miner at $6.7bn in Could. Gold Fields shares fell 20% on the day of the announcement on considerations about dilution and a major premium on Yamana’s valuation.

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

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

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

Zimbabwe to double royalty rate on platinum group metals

US PGM mines manufacturing forecast

On Thursday, Sibanye reduce the manufacturing forecast for its US 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 US PGM mines to supply 445,000-460,000 ounces of platinum and palladium this 12 months, down from 550,000-580,000 ounces anticipated beforehand.

Sibanye mentioned it was reviewing its US operations within the face of rising inflation, provide chain constraints, impression of the struggle in Ukraine, and altering market situations for palladium, the dominant mineral in its American mines.

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Sibanye mentioned it might step up mine improvement and concentrate on coaching and retaining employees to cut back its reliance on costly contract labor that has pushed prices up just lately.

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