This could be the case for Sibanye-Stillwater should some conventional shafts in the Rustenburg area remain unprofitable, and that the company would make a final decision on the viability of these conventional business units post September 2017.
Sibanye-Stillwater is now pleased to advise that as a result of the realisation of substantial synergies, post the successful integration of Rustenburg and Aquarius into the larger Sibanye-Stillwater group, the closure of these conventional business units has been averted.
[quote]The Southern African region’s PGM operations have delivered solid operational results in H1 2017, and this prompted an upward revision to our 2017 production forecast and a downward revision to guided costs.
In addition, realisation of cost and operational synergies has exceeded expectations and has been significantly ahead of initial forecasts.
As disclosed in Sibanye-Stillwater’s H1, 2017 results, benefits of approximately R550 million of the initially identified R800 million annual synergies, have already been achieved, with forecast annualised benefits by the end of 2017 of approximately R1 billion.
This is significantly earlier than the three year period Sibanye-Stillwater had initially guided to, to realise these benefits.
“I am very pleased with the outcome of the review, which has been driven by the results of the efforts of our colleagues in the Rustenburg region,” comments Sibanye-Stillwater group CEO, Neal Froneman.
“While we anticipate further opportunities to reduce costs and unlock operational synergies over time, the South African PGM operations are now well positioned to benefit from firmer PGM prices.
“I would also like to note the role that the Competition Commission played in ensuring this outcome, by approving upfront, the initial and very necessary restructuring of the operations, effectively saving many thousands of jobs.”
Feature image credit: Sibanye-Stillwater