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.
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