Sep. 9, 2015, 7:52 AM
- Sibanye Gold (NYSE:SBGL) agrees to acquire the Rustenberg platinum mining and concentrating operations in South Africa from Anglo American Platinum (OTCPK:AGPPY, OTCPK:AGPPF) for at least 4.5B rand ($331M).
- The deal involves an upfront payment of 1.5B rand, with a minimum deferred payment of 3B rand, equal to 35% of cash flow generated by the operations, making 20B rand the maximum potential value of the deal.
- The sale allows Amplats, which had considered separately listing the mines, to focus on shallower, lower cost and more mechanized operations as platinum prices fall to multi-year lows.
- For SBGL, the deal will boost future cash flow to pay dividends if the miner can lower costs and raise production as has happened at four aging gold mines.
- SBGL +3.9% premarket.
Sep. 12, 2012, 12:32 PM
Anglo American Platinum (AGPPY.PK -2.7%) says it is suspending operations at its Rustenburg platinum mines in South Africa to protect the safety and security of its employees from outside intimidation. The mines are located in the same area where 45 people have died so far in a month-long wildcat strike.| Sep. 12, 2012, 12:32 PM