Sibanye-Stillwater eyes DRDGOLD in pivot to surface mining

SIBANYE-Stillwater is considering increasing its stake in its 50.1%-owned tailings miner DRDGOLD as it pivots away from deep-level gold mining over the next five years.“We normally focus on the three big three deep-level mines, and they’ll run their course,” said Richard Stewart, CEO of Sibanye-Stillwater in an interview. “They’ve got between four years and ten years left – Driefontein being the longest, and Beatrix three or four years [of mining left],” he said.“We also have DRDGOLD. We obviously have the majority of that. That’s our asset. If anything, I’d like more exposure to DRDGOLD at some point in time,” said Stewart.Sibanye-Stillwater’s major gold assets has repeatedly extended the operating lives of its major gold assets Kloof and Driefontein on the West Rand in the last 13 years. But they are showing signs of age with the firm twice changing production guidance, predominantly owing to seismicity at Kloof mine.Sibanye-Stilwater’s latest gold output forecast for this year is between 480,000 to 514,000 ounces which compares to production of 1.3 to 1.4 million oz about 10 years ago.Stewart says the group’s strategy is to build out mining of tailings and surface gold resources including the Cook assets, in the far west of Johannesburg, which contains both gold and uranium. Stewart also points to “quite a few shallow projects” including Burnstone – a mothballed R5bn project in Mpumalanga province.Stewart’s predecessor, Neal Froneman told Miningmx in June that a decision on restarting Burnstone’s development was “just weeks away”. While Stewart remains open to its development, he says Sibanye-Stillwater is examining how it could be restarted.“That’s where my view is a little bit different. It’s a phenomenal gold project: it’s a shallow, good gold project. But if you look at it holistically for the portfolio, when we look at our capital allocation, are there other ways to fund this?,” he said. A partnership is a possibility, he added.“So I can almost see a shift in our gold business in South Africa going from a pure deep-level, thin marginal, high-cost—that sort of phase — to a smaller business footprint that is much higher margin, much more sustainable,” said Stewart.There will also be changes in the group’s portfolio. Sandouville, Sibanye-Stillwater’s sally into nickel production is set to be closed. Although Stewart did not comment on New Century, the zinc tailings business in Australia, it might also be cut.“I think we can simplify the portfolio a little bit, for sure,” said Stewart. “I wouldn’t come in right now and say exactly what I think [but] there’s room to simplify. “We’ve also got some projects and other potential areas that I don’t think we would see as core going forward.”Stewart is set to preside over a significant year-on-year improvement in Sibanye-Stillwater’s balance sheet and profitability when the group reports its 2025 financial year in February. In line with the group’s dividend policy, a payout is also in the offing. That is thanks to a barnstorming recovery in platinum prices since May – up 84% this year – and the gravity-defying performance of gold.“I would like to get our gross debt down. I’d like to pay dividends, and I would like to invest in the most quality growth opportunities,” he said.The post Sibanye-Stillwater eyes DRDGOLD in pivot to surface mining appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com