Johannesburg, South Africa — 11 October 2012 – Gold One International is likely to push back its proposed listing on the Hong Kong Stock Exchange (HKSE), which was pencilled in for March 2013, saying that it would wait for operating conditions in South Africa to normalise.
Miningmx reports that the company dismissed 1,435 of the total 1,900 employees at its recently acquired Ezulwini operations earlier this week, following last week’s unprotected strike at the mine. Appeal hearings are taking place until today.
Gold One is the first gold miner to dismiss striking workers during the current spate of unprotected strikes that have paralysed major sections of the industry. In June, it also dismissed 1,035 workers at its Modder East mine on the East Rand, following an illegal strike there.
Spokesperson Grant Stuart said the South African Police Service was maintaining a strong presence at Ezulwini, and that the company would embark on a recruitment process as soon as possible.
“The reality is that we’re losing money by not producing at Ezulwini,” Stuart said, warning that the ramp-up period could take some time. Modder East is only expected to reach its pre-strike output levels by the end of October.
Gold One has been on an acquisition drive since April 2011 and has spent more than US$330 million on acquisitions, backed by the strength of its 89% Chinese state-owned shareholders. It is aiming to become a 1Mozpa producer and has said that it would in future eye the prime assets of other South African players whose growth ambitions were based abroad.
Earlier this year CEO Neal Froneman embarked on a road show to do the groundwork for a listing on the HKSE for early 2013. He said that the foremost aim of the listing would be to improve liquidity of the stock, a strategy that could incorporate a fund-raising. But Stuart acknowledged that current South African operating conditions would impact on the timing of the listing.
Source: Miningmx. For more information, click here.