Sibanye mine puts up R1.8bn worth of shares
Sibanye-Stillwater has offered five percent of equity to raise R1.8 billion in capital in an effort to improve it's balance sheet.
According to Sibanye-Stillwater's James Wellsted, the move allows the company to put itself in a stronger financial position.
"And essentially it was done to bolster to our balance sheet to give us greater finacial flexibility."
Wellsted says it is common practise for businesses to do equity capital raises to improve their financial position, but he admits the timing may have caught the market by surprise.
The mining giant has been locked in wage negotiations since last year November, with strikes adding to the strain.
"We have had a five month strike at our gold operations and they have been unable to operate at full run rate and that has impacted on our financial position to some extent."
Management announced on Tuesday it plans to approach the Labour Court in a bid to declare a strike by the Association of Mineworkers and Construction Union (Amcu) unprotected.
Wellsted adds the protracted strike had a severe impact on operations.
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