9th Sep 2015 06:47
LONDON (Alliance News) - Anglo American PLC on Wednesday said its Rustenberg Platinum Mines Ltd arm has entered into a deal to sell the Rustenberg mine and concentrating operations in South Africa to Sibanye Gold Ltd.
The FTSE 100-listed Anglo-South African miner said it has sold the stake for at least ZAR4.5 billion, or about GBP215.6 million at current exchange rates.
The payment for the mine will be split between an upfront payment of cash or Sibanye shares totalling ZAR1.5 billion in value, plus a deferred consideration calculated as being equal to 35% of the distributable cash flow from the Rustenberg mine over a defined period, with the minimum amount payable set at ZAR3.0 billion.
Anglo said the sale comes following the repositioning of its portfolio in 2012, which resulted in the Rustenberg mine being consolidated from five to three mines. In 2014, Anglo repositioned its portfolio again to focus on low-cost production and decided it needed to focus on certain operations, of which Rustenberg was not one.
"We are pleased to announce a significant milestone in the repositioning of our portfolio with the disposal of the Rustenburg Operations to Sibanye. The Rustenburg Operations are quality assets with long-term and sustainable potential under Sibanye's control, given their proven and successful track record of operating conventional mines in South Africa," said Chris Griffith, Anglo American Platinum's chief executive.
By Sam Unsted; [email protected]; @SamUAtAlliance
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