Loading...

Sibanye Gold opens at rock bottom

Feb 11 2013 09:36
Reuters

Company Data

ANGLOGOLD ASHANTI LIMITED [JSE:ANG]

Last traded 128
Change 4
% Change 3
Cumulative volume 2817721
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

GOLD FIELDS LIMITED [JSE:GFI]

Last traded 56
Change 1
% Change 1
Cumulative volume 943528
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Sibanye to list on JSE in February

Game changer

Sibanye Gold could be 'industry catalyst'

Sibanye appoints corporate affairs boss

Gold Fields takes $1.5bn demerger loans

Gold Fields to unbundle SA assets

 

Johannesburg - Shares of Sibanye Gold, a new company hived off from the world's fourth-largest bullion producer, Gold Fields [JSE:GFI], opened on Monday at R13.05, near the bottom end of market expectations.

Analysts had expected the shares to trade anywhere from R8 to R52, so its debut will hardly inspire other major South African gold producers such as AngloGold Ashanti [JSE:ANG] to follow suit.

Gold Fields shares fell nearly 12% to R94.00, a drop that roughly mirrored the value of the new entity.

Gold Fields is spinning off two of its three South African mines, both of which were hit by labour unrest last year. It is holding on to its South Deep mine, which has avoided recent labour conflict due to its high level of mechanisation.

By unloading the older assets, Gold Fields hopes to make itself more attractive to investors who are uncomfortable with the labour risk associated with South Africa. Other companies could eventually follow suit.

South Africa was pounded by waves of violent labour unrest last year that started in the platinum industry and spread into gold, diamonds and later trucking and agriculture.

More than 50 people were killed, hitting investor confidence and raising questions about President Jacob Zuma's management of the continent's biggest economy.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

gold fields  |  sibanye gold

NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
4 comments
Comments have been closed for this article.
 

Company Snapshot

We're talking about...

Calling all social entrepreneurs - apply for The Venture now!

Are you running an innovative social business that's helping to create a better future? Then pitch for a share of The Venture’s $1m fund and receive world-class mentorship to help accelerate your business growth.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

New SAA board now has an aviation expert

Previous results · Suggest a vote

Loading...