Johannesburg - Sibanye Gold‚ formerly known as GFI Mining‚ a wholly-owned subsidiary of Gold Fields [JSE:GFI]‚ successfully listed on the JSE on Monday.
The new counter began trading at around R14/share‚ giving it a market capitalisation of approximately R10bn. The stock closed at R13.56/share.
Gold Fields shares closed at R105.80 on Friday 8 February and started trading at R93 this morning‚ making its market capitalisation approximately R68bn.
The listing on the New York Stock Exchange (NYSE) of Sibanye Gold’s ADR Programme commenced this afternoon when the NYSE opened for trading.
The distribution will result in the current Gold Fields’ shareholders subsequently holding two separate shares‚ the newly distributed Sibanye Gold share as well as their original Gold Fields’ share.
Gold Fields retains secondary listings of ADRs on the NYSE and secondary listings on the Dubai‚ Brussels and Swiss stock exchanges.
Gold Fields mining operations now comprise open-pit or shallow underground operations and‚ in the case of the South Deep project in South Africa‚ a deep-level‚ bulk underground mechanised operation together with the international exploration and development projects.
Nick Holland explained Gold Fields’ strategy: "Our operations will no longer focus solely on the number of ounces of gold produced‚ but rather on the costs associated with the production. Cash generation is to be a core focus with priority given to low risk‚ high return brownfields opportunities. Greenfields projects will only be pursued if they will provide superior returns. M&A will be considered only where there is clear value with regard to production."
He added: "2013 needs to see South Deep‚ moving from the construction phase to ore body development and build-up. On the financial side‚ we will look to leverage the balance sheet for growth on a per share basis. We are committed to delivering value to shareholders‚ with dividends having first call on cash flows. It is our intention to pay out 25-35% of normalised earnings."
Holland said Gold Fields would make a point of setting realistic production targets. "It’s not about ounces‚ it’s about cash‚" he concluded.
Gold Fields will be releasing Q4 2012 and full-year 2012 financials on Thursday‚ which will be the last time that the results will include the Sibanye Gold operations.
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