Sibanye Gold Limited (Sibanye-Stillwater)
Sibanye Gold Limited (Sibanye-Stillwater)
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Aquarius, heading for takeover by Sibanye Gold, posted on-mine EBITDA of $US2.5M for the Sept qtr (Q1 FY16), down from $15.8M in Q1 FY15, as platinum prices plunged to their lowest qtr since 2008.
Q1 production rose 8% to 93,513oz PGM. Cash costs rose 1% in Rand terms and improved 15% in $US due to the weaker Rand. Net operating cash outflow was $9M.
Sibanye Gold will become a top-tier platinum producer after reaching agreement to acquire Aquarius Platinum in a $249M all-cash deal.
South African gold major Sibanye has reached agreement with Aquarius Platinum on a $US294M takeover that will further strengthen its PGM portfolio following last month's acquisition of Anglo American Platinum's Rustenburg operations.
Aquarius directors have unanimously recommended shareholders accept the $0.195ps offer, a 56% premium to its Oct 5 closing price and 62% over the weighted average. Subject to Aquarius shareholders' approval, the transaction should be completed in the March 2016 quarter.
Sibanye Gold will be forced to seek more talks with the radical Association of Mineworkers and Construction Union despite reaching agreement on a three-year pay deal and peace pact with its other major unions.
Major South African producers AngloGold Ashanti and Harmony have approved 3-year wages deals after unions representing the majority of their workers accepted offers ranging from 6% to 10.4%.
Sibanye Gold says it can't sign the deal agreed with the National Union of Mineworkers, Solidarity and the United Association of South Africa because of the continuing opposition of the Association of Mineworkers and Construction Union. It's seeking more talks with the radical union.
Sibanye Gold has lined up an alternative power supply source to cover for the failings of national supplier Eskom through a financing and off-take deal with near-term producer Waterberg Coal.
South African major Sibanye has stepped up with a financing restructure for Waterberg Coal Co and its partners in the Waterberg thermal and coking coal project in Limpopo Province.
Sibanye signed a term sheet to buy WCC’s $A22.5M secured convertible note and inject $8.5M working capital. It may subscribe for a 51% shareholding in the project and enter a coal off-take agreement.
Anglo American Platinum is likely to sell its Union operations in a similar fashion to the $331M sale of Rustenburg to Sibanye Gold
Anglo American Platinum (Amplats) is more likely to sell its Union platinum mine rather that list it separately on the Johannesburg bourse, CEO Chris Griffith says, Reuters reports.
The indication follows Amplats confirmation it has sold its labour-intensive Rustenburg mining and concentration operations in South Africa to gold miner Sibanye Gold for R4.5B ($US331M) to focus on newer, mechanised mines.
Anglo American Platinum and Sibanye Gold have separately confirmed they are in talks on the possible acquisition by Sibanye of Amplats’ Rustenburg mining and concentration operations in South Africa.
Amplats says the talks are in line with its public strategy of exploring sale or separate listing options for Rustenburg. Both companies refused to give details of the discussions, and caution they may not lead to a transaction.