Sibanye Buys Gold One’s Cooke Mine in South Africa in Stock Deal
Stock Chart for Sibanye Gold Ltd (SGL)
Sibanye Gold Ltd. (SGL), the South African miner spun off from Gold Fields Ltd. this year, will acquire a majority stake in Gold One International Ltd. (GDO)’s Cooke Operations west of Johannesburg in an all-share transaction.
Sibanye will issue new shares accounting for 17 percent of its total issued stock to Gold One, which is 90 percent owned by a group of Chinese investors known as the BCX Consortium, it said in a statement today. The 150 million shares Sibanye will issue to Gold One were valued at about 1.5 billion rand ($148 million), based on yesterday’s close in Johannesburg.
“Gold One and its 90 percent shareholder, the Chinese BCX Consortium, will be an anchor shareholder with a long-term investment horizon, which will support Sibanye Gold’s long-term growth strategy,” the company said in a regulatory filing.
South African gold miners are confronting an 18 percent drop in the spot gold price this year and wage talks with labor unions, which have rejected a 5 percent increase in salaries. The National Union of Mineworkers, which represents 64 percent of gold miners, has called for a 61 percent jump in entry-level salaries.
The Cooke operations target average production of 260,000 ounces of gold and 570,000 pounds of uranium in the next five years, Sibanye said. The shares climbed 4 percent to 10.33 rand by 9:20 a.m. in Johannesburg.
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