|Bid||7.53 x 3100|
|Ask||7.54 x 3200|
|Day's range||7.45 - 7.66|
|52-week range||2.32 - 7.69|
|Beta (3Y monthly)||0.61|
|PE ratio (TTM)||134.64|
|Forward dividend & yield||N/A (N/A)|
|1y target est||12.30|
(Bloomberg) -- Sign up to our Next Africa newsletter and follow Bloomberg Africa on TwitterSouth Africa’s largest platinum mining labor union said it may conclude a wage deal with producers as early as next week if “minor” outstanding issues can be resolved.Members of the Association of Mineworkers and Construction Union may accept revised offers from Anglo American Platinum Ltd., Impala Platinum Holdings Ltd., and Sibanye Gold Ltd., Jimmy Gama, the union’s chief negotiator and treasurer, said on Thursday. Settling the wage dispute without disruption could pave the way for Sibanye and Implats to resume paying dividends.“There is a prospect for general acceptance from those workers we have met so far,” Gama said. “We will have a clearer picture next week after we have met the companies.”Gama declined to say what issues remained to be resolved. The largest platinum miners sought state-sponsored mediation last month in a bid to break an impasse in negotiations that started in June. AMCU led the nation’s longest-ever platinum-mine strike in 2014.Platinum Giants Seek Mediation After Union Declares DisputeWorkers at Sibanye’s Marikana platinum mines backed the company’s latest wage offer, according to a Twitter post by AMCU. Further meetings at Sibanye are planned on Thursday, Gama said.Implats said Tuesday that it had raised its wage offer to workers in a bid to break the deadlock. The company said it offered to boost minimum basic monthly pay by 1,100 rand ($75) over each of the next three years, compared with AMCU’s demand for a 1,500 rand increase.Investors will remain cautious about the prospects for concluding the three-year pay deal after AMCU led a five-month strike over wages at Sibanye’s gold mines earlier this year. The terms of the settlement agreed in April were little changed from those earlier rejected by the labor union.Above-inflation wage settlements and rising electricity costs “pose the greatest risk” to the profitability of South Africa’s platinum miners, RMB Morgan Stanley analysts, including Christopher Nicholson, said in a note on Wednesday.(Updates with analyst comment in last paragraph)To contact the reporter on this story: Felix Njini in Johannesburg at email@example.comTo contact the editors responsible for this story: Lynn Thomasson at firstname.lastname@example.org, Dylan Griffiths, Nicholas LarkinFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Sign up to our Next Africa newsletter and follow Bloomberg Africa on TwitterZimbabwe’s government is banking on a platinum-mining boom to help revive its collapsing economy. The world’s biggest platinum companies say it isn’t going to happen.Since Emmerson Mnangagwa took over as leader of the country following a coup in late 2017, platinum projects valued at more than $8 billion have been announced by Cypriot and Russian investors. Still, two decades of political and economic instability and a government with a track record of seizing privately owned assets makes many in the industry skeptical about the new ventures.“The sort of things being thrown around are all smoke and mirrors,” said Neal Froneman, chief executive officer of Sibanye Gold Ltd., the world’s largest platinum producer, which part owns a mine in Zimbabwe. “It’s not easy to raise capital for all those projects and you have a huge amount of regulatory uncertainty.”In addition to a history of changing ownership rules, miners are likely to be deterred by Zimbabwe’s failing currency regime that’s caused hyperinflation, chronic shortages of fuel and power and U.S. sanctions on government officials and companies. The southern African nation is facing the first contraction in gross domestic product since 2008.Insurmountable HurdlesWhile record prices for sister metal palladium are buoying the market, the longer-term outlook for platinum remains uncertain, making it difficult to justify expensive capital investments, said Nico Muller, CEO of Impala Platinum Holdings Ltd. The new investors face “insurmountable hurdles,” he said.Implats, which produces most of its platinum in South Africa, owns the biggest mine in Zimbabwe and has previously had concessions seized and given to other investors.Still, Zimbabwe has the world’s third-biggest deposits of platinum-group metals after South Africa and Russia and the shallow depth of its deposits makes mining cheaper and easier than in neighboring South Africa, the site of the biggest deposits. The government has ambitious mining plans.The country’s mines ministry earlier this month forecast platinum-group metals output at 2.79 million ounces in 2024, almost triple the 979,000 ounces currently produced by Implats, Sibanye and Anglo American Platinum Ltd.Almost half that target production will come from a $4.2 billion mine being built by Cyprus’s Karo Mining Holdings Ltd. Karo is 26.8% owned by Tharisa Plc, a publicly traded South African platinum and chrome miner run by the Pouroulis family. Tharisa has the right to acquire the rest of the Zimbabwe project.A second $4 billion project is being developed by Great Dyke Investments, a venture between Russia’s Vi Holding and Zimbabwean investors. Great Dyke has appointed African Export-Import Bank to raise $500 million to fund the first phase of a mine that will produce 290,000 ounces of platinum-group metals by 2023.The project, which was until recently part owned by companies linked to the Zimbabwean military, expects to start construction on a processing plant in April, said Great Dyke CEO Alex Ivanov. The venture is also in negotiations with potential equity partners, he said.The new investors haven’t raised concerns about Zimbabwe’s risk, said Mazai Moyo, secretary for the ministry of mines.Still, to ensure a mining renaissance, the government will need to convince big producers to start spending, said Charles Laurie, head of country risk at Bath, England-based Verisk Maplecroft. That will require substantial revisions to the nation’s mining code, he said.“If the Zimbabwe government is serious about attracting credible, well capitalized, A-list mining investors, it needs to do much more than give mining regulations a facelift,” Laurie said. “Investors want speed to capitalize on the very substantial opportunities, but they also need stability and clarity.”For the moment, Implats and Sibanye remain to be convinced about Zimbabwe, with both diversifying their investments through acquisitions in North America. Sibanye bought Stillwater Mining Co. for $2.2 billion three years ago, while Implats earlier this month agreed to pay $758 million for North American Palladium Ltd., in its first move out of southern Africa.“Maybe when the sanctions are lifted, and there is a real commitment from government in terms of rules of investing there, it might be a great place to do business,” Froneman said.(Updates with ease of mining in seventh paragraph)\--With assistance from Godfrey Marawanyika.To contact the reporters on this story: Felix Njini in Johannesburg at email@example.com;Antony Sguazzin in Johannesburg at firstname.lastname@example.orgTo contact the editors responsible for this story: Lynn Thomasson at email@example.com, Dylan GriffithsFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Sign up to our Next Africa newsletter and follow Bloomberg Africa on TwitterSibanye Gold Ltd. Chief Executive Officer Neal Froneman is considering moving the South African miner’s primary listing to New York from 2021, after he curbs the company’s debt.The surge in palladium and rhodium prices has put Sibanye on track to meet its debt-to-earnings target by the end of 2020, Froneman said in an interview at Bloomberg’s office in Johannesburg on Friday. While the rally has strengthened South Africa’s platinum industry, power and water shortages, rising crime and onerous regulations are deterring investment, the CEO said.The plan to move Sibanye’s primary listing isn’t immediate and could still be two years out, after the company has sufficiently paid down its debt. The move is driven by commercial considerations and shouldn’t be construed as leaving South Africa, where some of Sibanye’s platinum mines could operate for more than 40 years, Froneman said.“Looking offshore for growth is just a logical extension of where we are now,” Froneman said. “No firm decision has been made, but I think if we are to grow, we would have to change our primary listing because there is no real growth in South Africa.”Shifting Sibanye’s primary listing would expose the miner to a wider pool of investors and could also allow it to tap cheaper capital, said the CEO, who completed the acquisition of Lonmin Plc in May, less than three years after buying Stillwater Mining Co. in the U.S. Record palladium prices have made the Montana-based asset Sibanye’s “crown jewel,” Froneman said.“If you have a decent international portfolio of assets and you change primary listing, I daresay you get a re-rating because you become more acceptable,” he said.Palladium broke above $1,800 an ounce on Monday as stricter air-quality rules increase demand for the metal used in vehicle pollution-control devices. Sibanye’s shares have surged more than 160% this year.Froneman’s deliberations come as AngloGold Ashanti Ltd. sells its remaining gold assets in South Africa, viewed as a final step before moving its primary listing from Johannesburg. Anglo American Plc CEO Mark Cutifani has said there is no shortage of opportunities in South Africa, but to attract mining investment requires political stability and regulatory clarity.Miners are challenging aspects of the country’s revised mining charter -- which seeks to address inequalities resulting from apartheid -- in court. While Sibanye has no intention to exit South Africa, some of the charter’s provisions are sending “investors running away,” Froneman said.“While we have the dispute in court, guess what, no one is going to invest,” he said.\--With assistance from Gordon Bell, Amogelang Mbatha, Liezel Hill, Antony Sguazzin and John McCorry.To contact the reporter on this story: Felix Njini in Johannesburg at firstname.lastname@example.orgTo contact the editors responsible for this story: Lynn Thomasson at email@example.com, Dylan Griffiths, Liezel HillFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Yamana Gold (AUY) is at a 52-week high, but can investors hope for more gains in the future? We take a look at the company's fundamentals for clues.
“Companies must ensure there is a balance in what they do in respect of shareholder expectations and societal expectations,” Gordhan said at a dinner hosted by South Africa’s minerals council in Johannesburg on Tuesday.