Sibanye-Stillwater nears decision to revive its 281 million Burnstone gold project, paused in 2021 amid a downturn in platinum group metal prices.
Strong gold prices and solid project fundamentals make Burnstone viable without new funding partners, according to CEO Neal Froneman.
As Froneman plans to retire in 2025, Sibanye grapples with platinum losses despite a rebound in gold earnings and recent cost-cutting gains.
Sibanye-Stillwater, the mining group led by South African executive Neal Froneman , is preparing to restart its 281 million Burnstone gold project in South Africa. A final decision is just weeks away. Theres no question, its a good project, Froneman said, noting that the company had already invested R4 billion 223.3 million before pausing development in 2021.
Gold prices revive Burnstone mine planThe decision to halt wasnt about viability, he explained, but about managing cash during a downturn in platinum group metal prices. We just had to slow the outflow, and Burnstone was something we could put on hold and return to later.
Now, with gold prices showing strength, Froneman says theres no funding obstacle. The project no longer needs a joint venture to move forward. Its shallow, the grade is solid, and its got a 20-year life. That makes a big difference to how people look at our risk profile, he said. At these gold prices, it should be very profitable because its not expensive to run.
Fronemans stake reflects long-term betUnder Fronemans leadership, Sibanye-Stillwater has shifted from a local gold miner into a global metals group, with operations in platinum, palladium, and beyond. The Public Investment Corporation, one of its major backers, appears to believe theres still value to unlock, even as the company prepares for life after Froneman.
Froneman, who has been at the helm since the companys creation in 2013, owns more than 3.2 million shares, roughly 0.12 percent of Sibanye-Stillwater. He expanded the company into platinum and palladium markets, building it into a major force in global mining.