Sibanye-Stillwater CEO shrugs off gold mega-merger (updated)

Ioneer

06/02/2023 14:57

(Adds detail, quotes)
       CAPE TOWN, Feb 6 (Reuters) - Sibanye-Stillwater  SSWJ.J 
is not interested in gold mergers and acquisitions, CEO Neal
Froneman said on Monday, after Newmont's $16.9 billion bid for
Newcrest increased the pressure on gold miners to consolidate. 
    Froneman, a seasoned dealmaker, said he had "moved on" from
the idea he floated two years ago of merging Sibanye with South
African peers Gold Fields and AngloGold Ashanti to create a
South African gold mining "champion". 
    Speaking on the sidelines of the Investing in Africa Mining
Indaba in Cape Town, Froneman said he was focused on building a
"geographically diverse green metals company".
    A platinum and gold miner, Sibanye has acquired nickel and
lithium projects over the past three years to get exposure to
the battery metals.
    Sibanye could be more active in M&A this year thanks to an
improving economic backdrop, Froneman said, adding that the
miner is looking at lithium projects in Africa, though it is
more focused on North America and Europe. 
    The recently announced massive incentive packages from the
U.S. and Europe aimed at boosting domestic production of battery
materials have "vindicated" Sibanye's focus on those regions,
Froneman said.
    The U.S. Inflation Reduction Act adds an estimated $200
million to $300 million to the value of the Rhyolite Ridge
lithium mine project over its lifetime, Froneman said. Sibanye
has a 50% stake in the Nevada project being built by ioneer Ltd.
 INR.AX .
    Froneman also said permitting in the United States, which
has been a major bottleneck for new mining projects, seemed to
be getting smoother.
    "I'm not saying environmental laws or standards are going to
be lowered or dropped...but there's a willingness by the U.S.
administration to see their resources being developed so that
they can be less dependent on China," he said.
 (Reporting by Helen Reid; Editing by Kirsten Donovan)
 ((Helen.Reid@thomsonreuters.com; +27 66 156 5214;))