Today's Labour News

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Sibanye StillwaterMiningmx reports that Sibanye-Stillwater will be placing shares worth R1.8bn in an effort to minimise the impact on its balance sheet of the ongoing strike at its gold mines and to head-off possible disruptions flowing from the upcoming platinum sector wage negotiations.  

Up to 108.9 million shares are to be placed by means of an accelerated book-build with institutions, equal to 5% of the company’s share capital and the maximum it is allowed to sell for cash.  The proceeds will be put to debt reduction.  The precious metals producer said the strike being waged by the Association of Mineworkers and Construction Union (Amcu) at its gold mines since November and the commencement of upcoming platinum group metals (PGM) wage negotiations at the end of the second quarter, “pose potential risks that require due consideration.”  In the event there were no disruptions from wage negotiations, the share placement would be a segue to the resumption of dividends in line with the existing dividend policy, the company indicated.  “The new proceeds from the placing will enhance balance sheet flexibility and ensure that group leverage is appropriately reduced,” the company stated.  

  • Read the full original of David McKay’s report on the above at Miningmx

Read too, Sibanye to raise R1.8bn in case of platinum strike, at BusinessLive

And also, Sibanye tackles balance sheet woes with cash placing of R1.8bn in new ordinary shares, at Fin24

Get other news reports at the SA Labour News home page