Wrap Text
Sibanye takes ownership of the Rustenburg Platinum Mines and implements management changes
Sibanye Gold Limited
Incorporated in the Republic of South Africa
Registration number 2002/031431/06
Share code: SGL
ISIN – ZAE000173951
Issuer code: SGL
(“Sibanye Gold”, “Sibanye” or “the Group”)
Sibanye takes ownership of the Rustenburg Platinum Mines and
implements management changes
Westonaria, 1 November 2016: Sibanye is pleased to announce that the
acquisition by a wholly owned subsidiary company, Sibanye Rustenburg
Platinum Mines Proprietary Limited (“SRPM”), from Rustenburg Platinum
Mines Limited (“RPM”), of the Bathopele, Siphumelele (incl. Khomanani),
and Thembelani (incl. Khuseleka) mining operations, two concentrating
plants, an on-site chrome recovery plant, the Western Limb Tailings
Retreatment Plant, associated surface infrastructure and related assets
and liabilities on a going concern basis, including normalised levels of
working capital (the “Rustenburg Operations”) (the “Transaction”) has
become effective today, 1 November 2016.
The Transaction has now been fully implemented, following settlement of
the Initial Upfront Purchase Price of R1.5 billion in cash, from
Sibanye’s existing cash resources and debt facilities.
Sibanye is also pleased to announce that the broad based black economic
empowerment (“BBBEE”) ownership of SRPM has been agreed and implemented
from 1 November 2016 such that Sibanye holds 74% of SRPM, with the
remaining 26% held through Newshelf 1335 Proprietary Limited (“BBBEECo
SPV”). The shareholders of BBBEECo SPV are: Rustenburg Mine Employees
Trust (30.4%), Rustenburg Mine Community Development Trust (24.8%)
Bakgatla-Ba-Kgafela Investment Holdings (24.8%) and Siyanda Resources
Proprietary Limited (20%).
“We are pleased to have concluded the Transaction and look forward,
together with our BBBEE partners, to making a positive contribution to
the sustainability of the Rustenburg Operations. We are confident that
we will realise meaningful cost and operational synergies by
consolidating the Rustenburg Operations and Kroondal Operations and
secure a sustainable and rewarding future for all stakeholders” said
Neal Froneman, CEO of Sibanye.
The full details of the Transaction announced on 9 September 2015 are
available on Sibanye’s website on the following link:
https://www.sibanyegold.co.za/investors/news/company-
announcements/2015/item/174-sens-acquisition-of-rustenburg-mining-and-
concentrating-operations.
Management appointments at Sibanye’s Platinum Division
Following the successful integration of the platinum assets previously
owned by Aquarius Platinum Limited into Sibanye, Jean Nel has tendered
his resignation as CEO of the Platinum Division, effective 1 November
2016. Robert van Niekerk, previously EVP: Organisational Effectiveness
at Sibanye, has been appointed as CEO of the Platinum Division. Robert
has significant operating and integration experience across the mining
industry, including 5 years in senior operational roles at Anglo
American Platinum’s Rustenburg operations.
Dawie van Aswegen has also been appointed SVP: Technical Services for
the Platinum Division. Dawie has 20 years’ experience working for AAP in
the Rustenburg Operations in various roles. Between January 2012 and
September 2015, he was the General Manager (GM) of the Bathopele mine
(mechanised section) and from September 2016, the GM of RPM’s East Mine,
which consisted of the Bathopele and Siphumelele mechanised sections and
the Siphumelele conventional sections.
Neal Froneman commenting on the appointments said: “I would like to
thank Jean for leading the successful integration of the Aquarius
Operations into Sibanye, and I wish him good fortune with his future
endeavours. I am very pleased, to welcome Dawie to the Sibanye Platinum
Division executive team. His experience and understanding of the
Rustenburg Operations will add further depth to an already strong
platinum executive team. I am confident that this team, under Robert’s
leadership, and experience will realise significant value for
stakeholders as we integrate these operations into the Group”.
Corporate Advisor: Qinisele Resources Proprietary Limited
Financial Advisor: HSBC Bank plc
Sponsor: J.P. Morgan Equities South Africa Proprietary Limited
South African Legal Advisor: ENSAfrica
US Legal Advisor: Linklaters LLP
ENDS
Contact
James Wellsted
SVP Investor Relations
Sibanye Gold Limited
+27 83 453 4014
james.wellsted@sibanyegold.co.za
FORWARD-LOOKING STATEMENTS
Certain statements in this document constitute “forward-looking
statements” within the meaning of Section 27A of the US Securities Act
of 1933 and Section 21E of the US Securities Exchange Act of 1934.
These forward-looking statements, including, among others, those
relating to Sibanye’s future business prospects, revenues and income,
wherever they may occur in this document and the exhibits to this
document, are necessarily estimates reflecting the best judgment of the
senior management and directors of Sibanye, and involve a number of
known and unknown risks and uncertainties that could cause actual
results, performance or achievements of the Group to differ materially
from those suggested by the forward-looking statements. As a
consequence, these forward-looking statements should be considered in
light of various important factors, including those set forth in this
document. Important factors that could cause the actual results to
differ materially from estimates or projections contained in the
forward-looking statements include, without limitation: economic,
business, political and social conditions in South Africa, Zimbabwe and
elsewhere; changes in assumptions underlying Sibanye’s estimation of its
current Mineral Reserves and Resources; the ability to achieve
anticipated efficiencies and other cost savings in connection with past
and future acquisitions, as well as at existing operations; the ability
of Sibanye to successfully integrate acquired businesses and operations
(whether in the gold mining business or otherwise) into its existing
businesses; the success of Sibanye’s business strategy, exploration and
development activities; the ability of Sibanye to comply with
requirements that it operate in a sustainable manner; changes in the
market price of gold, platinum group metals (“PGMs”) and/or uranium; the
occurrence of hazards associated with underground and surface gold, PGMs
and uranium mining; the occurrence of labour disruptions and industrial
action; the availability, terms and deployment of capital or credit;
changes in relevant government regulations, particularly environmental,
tax health and safety regulations and new legislation affecting water,
mining, mineral rights and business ownership, including any
interpretations thereof which may be subject to dispute; the outcome and
consequence of any potential or pending litigation or regulatory
proceedings or other environmental, health and safety issues; power
disruptions, constraints and cost increases; supply chain shortages and
increases in the price of production inputs; fluctuations in exchange
rates, currency devaluations, inflation and other macro-economic
monetary policies; the occurrence of temporary stoppages of mines for
safety incidents and unplanned maintenance; Sibanye’s ability to hire
and retain senior management or sufficient technically skilled
employees, as well as its ability to achieve sufficient representation
of historically disadvantaged South Africans’ in its management
positions; failure of Sibanye’s information technology and
communications systems; the adequacy of Sibanye’s insurance coverage;
any social unrest, sickness or natural or man-made disaster at informal
settlements in the vicinity of some of Sibanye’s operations; and the
impact of HIV, tuberculosis and other contagious diseases. These
forward-looking statements speak only as of the date of this document.
The Group undertakes no obligation to update publicly or release any
revisions to these forward-looking statements to reflect events or
circumstances after the date of this document or to reflect the
occurrence of unanticipated events.
Date: 01/11/2016 09:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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