Sibanye-Stillwater to Restart $281M Burnstone Gold Project in South Africa

Sibanye-Stillwater plans to restart its $280M Burnstone gold project in South Africa, with a decision expected within weeks. CEO Neal Froneman stated that the project's restart is "weeks away." The project has a 120K oz/year capacity and was previously suspended due to the COVID-19 pandemic. The restart is expected to boost the company's gold production in the country.

Sibanye-Stillwater, a leading precious metals miner, is set to restart its R5 billion Burnstone gold project in South Africa's Mpumalanga province. CEO Neal Froneman confirmed that a decision on the project is "weeks away," as reported by Miningmx.com [1]. The project, with a capacity of 120,000 ounces of gold per year, was previously suspended in 2021 due to the need to conserve cash amid a downturn in platinum group metal prices.

Froneman emphasized that the project's fundamentals were sound, and the suspension was primarily due to cash flow management. He noted that the project's feasibility study, launched last year, focused on specific ramp-up issues such as staffing, rather than the project's core viability. The CEO stated that the project's location, being "in the middle of nowhere," posed no significant challenges.

Sibanye-Stillwater has already invested R4 billion in Burnstone. The restart will require additional capital, including R1 billion in outstanding project capital. Froneman expressed confidence in funding the project as a standalone venture, attributing this to the strong performance of gold prices in the past year, which have increased by 44%. The CEO noted that the project's shallow depth, decent grade, and long life of 20 years significantly alter the company's risk profile, especially at current gold prices.

The Burnstone project is expected to boost Sibanye-Stillwater's gold production in South Africa. With the Driefontein and Kloof mines, which are currently producing gold, nearing the end of their operational life, the Burnstone project will play a crucial role in maintaining the company's gold production levels.

Froneman is scheduled to retire from Sibanye-Stillwater in September, with Southern African COO Richard Stewart set to succeed him. The CEO's tenure has been marked by significant challenges, including the failure to merge Sibanye-Stillwater's gold mines with AngloGold Ashanti and Gold Fields, which he now views as a missed opportunity.

References:
[1] https://www.miningmx.com/top-story/61553-sibanye-stillwater-to-restart-r5bn-burnstone-gold-project/
[2] https://seekingalpha.com/news/4462318-sibanye-stillwater-set-to-restart-280m-burnstone-gold-project-in-south-africa