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Sibanye-Stillwater delivers phenomenal 260% return – JSE

19th February 2020

By: Martin Creamer

Creamer Media Editor

     

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JOHANNESBURG (miningweekly.com) – Top-performing Sibanye-Stillwater delivered a phenomenal return of 260% on the Johannesburg Stock Exchange in 2019, JSE CEO Dr Leila Fourie stated on Wednesday when the company relisted to the accompaniment of a rapid 5.3% early-afternoon soaring of its share price.

From a Gold Fields spinoff with an uncertain future seven years ago, Sibanye-Stillwater is now a Top Twenty company on the JSE, which hosts more than R3-trillion worth of mining equity, Fourie added to strong applause, at the function at which Sibanye-Stillwater CEO Neal Froneman blew the horn for the third time – and Sibanye-Stillwater’s impressive mineworker choir sang songs about the huge importance of mine safety and industry sustainability.

Sibanye-Stillwater reached a safety high by achieving a superlative ten-million fatality-free shifts at its gold operations, which received analyst acclaim at the company's presentation of outstanding results.

Sibanye-Stillwater, which first listed as Sibanye Gold in 2013, as a Witwatersrand Basin gold mining company, has since grown “exponentially, enormously presciently and impressively”, said Fourie of the company’s rapid success in platinum group metals (PGMs) mining in Southern Africa and North America.

“It’s been very pleasing to see that there has been significant growth in this sector. The mining industry has been truly paramount in building our country and particularly and most importantly, in supporting communities and thereby growing the economy.

“The South African mining sector has experienced some enormous challenges over the last decade, but the sector, however, maintains the appeal of a safe haven play, and this was really evidenced over the past year with the very stellar performance during 2019,” said Fourie.

In December 2019, the JSE’s general mining index rose to its highest level since July 2008. In 2019, it registered performance of an increase of 38%.

“We also saw the mining sector outperform the JSE All-Share Index for the first time in two years, with the PGM producers enjoying the majority of the recovery,” she said.

In the six months to the end of December, Sibanye-Stillwater recorded a 44% increase in revenue to R73-billion and R432-million profit for 2019. Its earnings grew 79% to R14.9-billion.

“There’s a bullish view that is driven by earnings growth and by strong momentum, particularly in the PGMs area. The JSE is very much an exchange of choice that is maintaining its relevance in the global markets.

“We’ve worked really well to connect investors of companies to growth opportunities, both locally and abroad. As an exchange, we want to continue to provide a platform for growth, with innovative products to grow investment into our economy,” Fourie said.

The JSE, which competes with both developed and emerging markets, is currently ranked nineteenth in the world by market capitalisation.

It is recognised by the World Federation of Exchanges as being a world-class venue for  capital raising in investing.

“We’re genuinely committed to rebuilding and growing our markets and also supporting economic growth and development. We’re always looking for ways to build better markets and grow our markets for our investors and our clients.

“This means that we focus on improving our products and services, our technology and also our pricing,” added Fourie.

Edited by Creamer Media Reporter

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