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Rastuss yes it could get nasty but think election will be decisive for ANC, albeit slightly reduced seats. Not sure EFF will support AMCU leadership as he could be a liability! So think risk of a nasty spat low in financial terms, lots of rhetoric though! I think a deal was done at the Feb conference re industrial relations, so road map has been worked out, hoping so!
Agree re legal system could be more effective and efficient but that's democracy.
Jabba knows he needs to keep institutional investors on board and dividend payments do that. If underlying profitability there this year and cashflow good expect a divi! Whilst debt an issue as long as it's be pared back ahead of schedule not an issue. Yes investment required but if profitability of PGM operations good not an issue its all about cashflow!
Whilst not disagreeing about SBGL investment and Jabba's track record as serial empire builder, he has vision and ambition and knows how to get things done.
It is quite possible he is creating a highly successful mining company to rival the big boys, you, never know! Stillwater transaction good, LMI transaction good, gold transactions goodish, he has not any major mistake yet that I can see! I am no cheerleader for SBGL by the way, they have a lot of issues but I still view takeover best for LMI, I also suffer broken record syndrome! Takeover odds down to evens, new race SBGL pay divi (or equivalent) this financial year 11/2!
Rastuss Cyril needs to have a good industrial relations framework as a cornerstone of attracting new and maintaining existing investment in SA. How hard they are on AMCU will become apparent in next few weeks, if Uncle Joe tries to resist, an audit of AMCU accounts could be enlightening! The date can always be moved again don't think any problem.
Suspect SBGL has done it for window dressing, it nearly mitigates the share placement for LMI shareholders! Still think an SBGL dividend on cards, gold strike finished, positive PT wage negotiation outcome, higher PGM bp, underlying profits good, updates will shed light.
It is window dressing, real issue is SBGL sp in coming months. I remain confident it will rise to plus 18 Zar with subsequent LMI benefit, maybe more if underlying SBGL profits look good, update next month should be informative! Good move by Cyril to have a proper industrial relations framework in place, that means having proper union representation for workers, not cabals!
I was quite enjoying the quiet news week but its LMI/SBGL!
Shouldn't the Sibanye share price fall by something more on the order of 3.3% * 0.1 = 0.33% given that this is only a 10% dilution to their share count?
It will be interesting to see if they manage to get the 75% of votes needed as the increase is meaningless in the scheme of things.
The mention of the rising PGM's for the increase is an insult to anyones intelligence. This goes to show how the LMI Board are inept in negotiating. Do they not realise that SGL has just raised $120m through a share placement, the fact that SGL issued a scrip dividend and lets not forget that the SGL share price has fallen since the offer was made. He can go and shove it where the sun doesn't shine... The deal is a complete and utter joke and highlights the complete incompetance of the Boards decision making or lack of it...
What a joke...
As part of the agreement, management and Amcu leadership would engage in a “facilitated, post-strike relationship building programme”.
https://www.businesslive.co.za/bd/companies/mining/2019-04-17-sibanye-stillwater-says-five-month-gold-strike-is-over/
The settlement has one other major consequence. Both sides pointed to the upcoming wage negotiations in the platinum sector. Mathunjwa said the agreement meant that these talks would be “more constructive”.
https://www.dailymaverick.co.za/article/2019-04-17-five-month-strike-at-sibanye-stillwater-gold-mines-has-ended-after-amcu-decided-to-cut-its-losses/
Rastuss I do get the sense that LMI negotiations may not be bad! Don't know why! One thing that bothers me is why are wage negotiations carried out separately? You would slso
and think the basic wages would be similar in each company for platinum workers but maybe not, due to historical reasons! We will find out soon enough after the election as think if EFF do not make significant gains e.g. 12.5% plus share of vote then it could be uncle Joe who has no pants on when tide goes out!
Rastuss doubt Jabba has agreed to drop offer but you never know! However the potential synergies of the PT operations of SBGL and LMI is compelling and will make them very efficient wirhin a few years!
Good to see gold strike finally over. Not a lot of change to peace and stability offer. Hopefullly they will be able to ramp up production asap and Q2 update verifies this. If update good SBGL shares should fly and consequently LMI. Wonder if this will impact on PGM wage talks? or will it be round 2! I wonder what caused Uncle Joe to agree this, not like him, waivering membership support, deal re jobs, single union agreement? Good news though.
https://thevault.exchange/?get_group_doc=245/1555501673-sibanye-stillwater-amcu-conclude-gold-strike-17-apr-2019.pdf
Wrong again rastuss lol
Does anybody have an idea of how Jabba will use the money he has just raised? I wouldn't put it past him to try and pick up another company on the cheap. Perhaps on similar terms to the LMI takeover, ie offer shares. He could then use the money to pay down the targets debt.
Certainly would be odd we will know soon enough!
Its on the SGL website.
Joint statement something up end of strike!
At least the rise in LMI is hotting up a little...
Dry stane dykes are walls in Scotland, no cement used, stones from locality, used to seperate field's! A highly skilled job by all accounts. You don't have to slip into a drainage ditch in Scotland to be cold and wet its normal weather! Sun shining today at last, might even get heating off soon! Yes looking forward to Q2 figures from both think it will shed light on a few things, state of LMI in particular as update was not good!
Fortunately I haven't as yet slipped into a dyke. Are you talking from experience Rastuss?
It's a Scottish saying, not sure science behind it but assume because dry stone dykes are uneven in construction so when the sun shines the stone heats up and the snow falls of quickly! We will find out soon enough re Q2 SBGL figures which will be dragged down by gold, but expect Stillwater to be very positive unless 100notout correct and something up at Stillwater! Even at a PD price suggested Stillwater EBITDA circa $400m for year. Probably wrong again but think Stillwater a very good investment with low COP it will be hard not to make a lot, if only LMI had such figures!
The Q2 figures should make interesting reading. If PD price keeps holding up the EBITDA for year would increase by circa $180m to circa $0.5bn all things being equal. Impressive stuff for SBGL that and additional production coming on line in next few years could mean SBGL sitting pretty. If they get gold sorted debt mountain will disappear like snow off a dyke! Good spot Rastuss.
Wolfman - The production was down and the costs were elevated. This is worrying as they have given no detail as to why. Also the fact that they have raised money from a placement and a gold stream deal, I don't buy their reasons for it with the rising PGM basket. It's a hunch but something seems afoot...
100notout, can you please elaborate on your concerns about Stillwater? To me this is their prized asset.
Rastuss - The Smurfs told me that Pt will rise but it will be in the next 18 months. Apparently they were told by the Fairies and they are always right. I am also less relaxed about SGL too. Strangely enough it was the gold operations that I was concerned about before but now its the Stillwater element. Something is not right there mark my words...
LMI Board better do a bit of digging because I feel they will be in trouble if they recommend their shareholders to accept the deal from SGL.