Sibanye CEO floats merger idea with Gold Fields, AngloGold Ashanti -report

DrdGOLD

08/03/2021 17:51

JOHANNESBURG, March 8 (Reuters) - Sibanye-Stillwater
 SSWJ.J  should merge with peers Gold Fields and AngloGold
Ashanti to create a gold mining leader which would beat Newmont
to the top spot, the miner's CEO Neal Froneman told South
African newspaper Business Day on Monday. 
    "I think there are three high quality SA companies that
should be put together," the article quoted Froneman as saying.
Consolidation was necessary if South Africa-domiciled companies
were to compete at a global level, he said. 
    Sibanye, the world's biggest platinum producer, also
produces gold from three mines in South Africa, and has a
majority stake in gold miner DRDGOLD. Sibanye's own mines
produced 809,877 ounces of gold in 2020.
    "We've been saying for some time that we've been looking to
expand our gold portfolio internationally," said
Sibanye-Stillwater spokesman James Wellsted. 
    "To achieve proper diversification, we need to buy something
of 1 million ounces plus," he said, declining to comment on
AngloGold Ashanti or Gold Fields specifically. 
    AngloGold Ashanti  ANGJ.J  exited South Africa last year and
operates in Democratic Republic of Congo, Ghana, Guinea, and
Tanzania, as well as Australia and South America. It produced
3.05 million ounces of gold in 2020. 
    An AngloGold Ashanti spokesman said: "We have outlined our
growth plan to unlock value from our global portfolio of gold
assets. We are focused on delivering on this strategy, which we
believe will deliver the most value for our shareholders."
    A Gold Fields  GFIJ.J  spokesman said the company would not
comment on market speculation. Gold Fields, which mines in South
Africa, Ghana, Australia, and Peru, produced 2.236 million
ounces of gold in 2020. 
    Based on 2020 production, a three-way combination would
create the world's biggest gold miner, ahead of sector leader
Newmont  NEM.N , which produced 5.9 million ounces last year. 
    

 (Reporting by Helen Reid; editing by David Evans)
 ((Helen.Reid@thomsonreuters.com; +27 66 156 5214;))