Sibanye changes trading name to Sibanye-Stillwater

Sibanye Gold Limited has officially changed its trading name to Sibanye-Stillwater, marking a new chapter in the company's history. The CEO, Neal Froneman, joined CNBC Africa to discuss the rebranding and the company's recent performance. Froneman explained that the decision to combine the names Sibanye and Stillwater was rooted in the strong brand recognition of both entities. He likened it to successful mergers like SAB Miller or BHP Billiton, highlighting the value and recognition associated with the brands. The rebranding reflects a strategic move to leverage the strengths of both companies and position Sibanye-Stillwater as a prominent player in the mining industry. Despite the challenges posed by the recent financial results, Froneman remains optimistic about the company's future prospects. He emphasized that while the numbers may be distorted due to significant transactions and capital raising activities, the underlying operational performance has been robust. The company's PGM operations have delivered positive results, with significant cost savings from synergies. Froneman also highlighted the strong performance of the gold operations, particularly the Driefontein and Kloof mines. However, he acknowledged that certain underperforming operations are under review, with potential job cuts on the horizon. Sibanye-Stillwater is reportedly considering cutting approximately 7,000 jobs as part of its restructuring efforts. Froneman admitted that it is a difficult decision, but necessary to sustain the company's overall employment levels. The CEO emphasized that previous attempts to turnaround the struggling operations through other means have been unsuccessful, making job cuts a last resort. Despite the challenges, the company recently made a significant acquisition of a PGM miner for $400 million, positioning Sibanye-Stillwater in a new geographical region with high-quality assets. The acquisition is seen as a transformative opportunity for the company, enhancing its global presence and competitiveness. Froneman expressed optimism about the prospects of the new asset, noting the strong fundamentals of palladium as a key driver of growth. Looking ahead, Froneman remains committed to exploring opportunities in South Africa, despite the challenging investment environment. He stressed the need for a conducive investment climate to support the mining industry and drive growth. While acknowledging the difficulties, Froneman signaled the company's intentions to pursue strategic investments in the country, albeit cautiously. Overall, the rebranding to Sibanye-Stillwater signals a new era for the company, reflecting its ambitions to become a leading player in the global mining sector.