Sibayne Gold may pick up SA platinum mines from distressed miners
After a crippling mining strike, large miners like Anglo American Platinum Ltd. (AMS), Impala Platinum Holdings Ltd. and Lonmin Plc (LMI) may be forced to sell some operations and Sibayne Gold told Bloomberg it is open to buying.
"There’s nothing specific on the table right now, but we’re open to the idea . . ." of buying platinum mines, said Sibayne Gold (NYSE:SBGL) spokesperson James Wellsted.
Sibayne Gold was formed in late 2012 by Gold Fields. The company has thrived relative to its competitors. Over the last year the company has increased 64% to $9.14 a share.
The company has taken aging mines and restructured operations to make them more cost efficient. It has also negotiated wage agreements to limit disruption.
According to its website, Sibayne Gold is the largest producer of gold in South Africa and amongst the top ten largest gold producers globally.
Sibayne operates the Kloof, Driefontein and Beatrix gold mines as well as various service companies.
Creative Commons image by John Beagle