So GFI

[SimonPB]

to split it's local and international assets (albeit keeping South Deep in international) .. I been saying that for ages, next will be HAR and ANG ..

[kwagga]

Local is a sinking ship.

[#3]

Ja, but I don't know if it makes a huge amount of sense. It means that their international and local SA assets can get evaluated separately, which is good for shareholders, but if the balance sheet is now split - how do you raise the kind of capital you need for new projects? Personally, I think it is an over-reaction to the Marikana issue (and hey, I am not downplaying Marikana!)

[SimonPB]

fair shout, but well GFI rating currently at junk, this move will enable GFI international to get credit rating that will enable borrowing .. local is toast ..

[klapka]

The market likes it.

[Preston]

that is actually a very good point Simon. Cost of borrowing will definately be cheaper than SA.

[SimonPB]

yip, an then when those Sibanye shares hit the market they going to get sold off to nothing me thinks ..

[phd]

There won't be any new projects in SA. Period. And this applies even more firmly to Anglo.... none, nada, v...k..ol. It's all over.

[kwagga]

...and very, very quickly.

[klapka]

Yep!

[Rams]

ja but who going to lend them money despite the international division getting a good credit rating, Europe is also toast and USA is burned toast...south africa, well the bread is already black(or brown), so a bit of toasting does not matter much

[#12]

Suppose it will then make nationalising them so much easier - won't have the European and US govt's shouting about theft.

[Rams]

transaction does not require shareholder approval...listing of Sibanye gold in Feb 2013...SENS

[keng]

Why do I have the feeling that Sibanye will not be issuing dividends in order to recoup capital costs asap and then dump and run. Maybe I'm a pessimist.

[Wino]

Phew!! The negativity that surrounds this post! Those 2 mines produce more than 45% of GFI's cashflows. They need little additional capital near to medium term and can be self funding, have good reserves and ore bodies that are well understood. These mines can continue for some time before requiring further development. Whatsmore, they have appointed a good operator, Neal Froneman, to be in charge. Not my favourite but, he gets things done. To me, there is less risk to Sibanye then Pan Af which trades ona PE of 8. If this the case then a rough calc tells me that Sibanye, with less risk should be on a PE of 10 and the share should be worth between R30 to R45 imo. If anybody has calcualted different numbers, I will be glad to know.

[SimonPB]

sure 45% of current cash flows, but future cash flows ?? especially when South Deep comes on stream .. they are leaving the dregs in the local operation ..

[Penny_Pincher]

Amazing how quick the mine bosses are to find a counter strategy for all the drama. Perhaps this was the strategy all along and Marikana simply fast tracked the execution of the strategy. Just shows you ala Cosatu..cut your nose to spite your face.

[Wino]

Sure, but these assets perform better than both HAR & ANG's local assets. If one is looking for local exposure and depending on the value the market places on these shares, they may just be worth considering.

[#19]

and they are bringing in the dregs to manage it - I for one still think the man got off lightly with the hold first uranium debacle

[kwagga]

Nice way to unlock value for shareholders. Think its' worth a punt.