Fin24

Gold Fields to unbundle SA assets

2012-11-29 08:34

Johannesburg - Gold miner Gold Fields [JSE:GFI] on Thursday announced the creation of a new South African gold mining company through the proposed unbundling of its 100% owned subsidiary‚ Sibanye Gold - formerly known as GFI Mining South Africa Proprietary Limited (GFIMSA) - which holds the KDC and Beatrix gold mines as well as various service companies.

Subject to approval by the JSE and the NYSE‚ Sibanye Gold will be listed as a separate and independent company on both exchanges in February 2013‚ it said.

Sibanye Gold shares will then be distributed to existing Gold Fields shareholders.

Both Gold Fields and Sibanye Gold will be domiciled in SA with their primary listing of shares on the JSE and a secondary listing of American depository receipts on the NYSE. The other existing secondary listings on the Swiss‚ Dubai and Brussels stock exchanges for Gold Fields will remain unchanged.

Following the unbundling‚ Gold Fields will retain the balance of its current portfolio of assets‚ including the developing South Deep Gold Mine located in South Africa

Neal Froneman‚ currently Chief Executive Officer of Gold One International [JSE:GDO]‚ will become CEO of Sibanye Gold and Charl Keyter‚ currently Head of Finance for Gold Fields' international operations‚ will become the Chief Financial Officer.

Gold Fields said there would be no direct job losses as a result of the transaction. 

Besides South Africa, now the world's fifth biggest gold producer, Gold Fields has mines in Peru, Ghana and Australia.

 

Comments
  • Montagnes.Bleues - 2012-11-29 08:54

    In Africa never place all your eggs in one bag and learn from the millions of refugees and trends of investment, how to quickly FLEE. At least the YL proponents of nationalisation will still be able to grope around and take the rocks away from the mines when they soon falter and leave the proverbial 'golden goose' slaughtered on the bed of collectivism.

  • george.craigson - 2012-11-29 09:36

    This makes perfect sense. Get rid of the South African assets (which can be toxic as evidenced by what has happened over the past few months in the mining sector) and protect the core of the company for the benefit of investors in the company. I will not be surprised if more mining companies started doing this. Then SA will have its own mining sector that no international investors will want a piece of.

  • Dennis - 2012-11-29 10:01

    And so Goldfields starts throwing in the towel in this banana republic. Can't blame them at all can you.

  • jay.vyas.984 - 2012-11-29 10:19

    I wonder if Gold Fields will also "UNBUNDLE" their closely kept secrets of the BBBEE Fiasco Benefactors - As was exposed on the recent Carte Blanche Episode. People mentioned as BBBEE Benefactors also included High Level Govt Officials, Top Sports Commentators, Ex Cons & Certain Shady Characters! I Rest My Case! By The Way..... Do Not Buy an e-Tag! EVER!

      DrGonzoSA - 2012-11-29 10:26

      Sounds pretty much like every single BEE deal.

  • john.deponte.9 - 2012-11-29 13:45

    Yeah! This is a vote of no confidence in SA operations! Just look at the positive up tick in the share. And many more Gold company to follow - specially ANGLO Gold!

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