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ADAM Fleming’s Witwatersrand Consolidated Gold Mining Company (Wits Gold) has been identified as low-hanging fruit for Neal Froneman’s Sibanye Gold, according to Macquarie Research in a note published last month.
Sibanye Gold, a company established after Gold Fields unbundled its mature South African assets, would have significant cash generation ability that would position it to become a new consolidating force in the local gold industry, as intended by Gold Fields.
Certainly, Sibanye is highly leveraged to the gold price as well as the rand. “Now you’re talking my language,” said Neal Froneman, CEO of Sibanye Gold, when asked if he thought the overvalued rand would provide some lift to his company’s prospects.
“We are of the view that Sibanye Gold is highly leveraged to the gold price and to the potential gain in efficiencies management can achieve,” said David Davis, an analyst for SBG Securities.
Said James Oberholzer, an analyst for Macquarie Research: “Sibanye is likely to have a substantial production profile with significant cash generation ability. This, in conjunction with a South African focused mandate … may provide an opportunity for further merger and acquisition in the industry.
Apart from “… bucking the trend of negligable ‘new project’ investment in the South African gold mining industry”, it would also create opportunities for like-minded gold juniors such as Wits Gold which has assets close to Sibanye Gold’s Beatrix mine.
“Given the proximity of these assets to the Beatrix mine, an
Read Full Article>>>
Sibanye Gold, a company established after Gold Fields unbundled its mature South African assets, would have significant cash generation ability that would position it to become a new consolidating force in the local gold industry, as intended by Gold Fields.
Certainly, Sibanye is highly leveraged to the gold price as well as the rand. “Now you’re talking my language,” said Neal Froneman, CEO of Sibanye Gold, when asked if he thought the overvalued rand would provide some lift to his company’s prospects.
“We are of the view that Sibanye Gold is highly leveraged to the gold price and to the potential gain in efficiencies management can achieve,” said David Davis, an analyst for SBG Securities.
Said James Oberholzer, an analyst for Macquarie Research: “Sibanye is likely to have a substantial production profile with significant cash generation ability. This, in conjunction with a South African focused mandate … may provide an opportunity for further merger and acquisition in the industry.
Apart from “… bucking the trend of negligable ‘new project’ investment in the South African gold mining industry”, it would also create opportunities for like-minded gold juniors such as Wits Gold which has assets close to Sibanye Gold’s Beatrix mine.
“Given the proximity of these assets to the Beatrix mine, an
Read Full Article>>>
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“Biggest Ponzi Scheme in U.S. History to Crash,”
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