Mining guru Peter Major on Sibanye-Stillwater's $1bn acquisition
Mining guru Peter Major dissects Sibanye-Stillwater’s $1bn dollar acquisition of the Santa Rita nickel mine and Serrote copper mine in Brazil. The acquisition, which is an inflection point in terms of Sibanye’s direction going forward, is aimed at targeting metals that will play an influential role in the ‘green’ economy of the future. Renowned deal-maker and Sibanye CEO, Neal Froneman, previously made his intentions clear on BizNews – and Tuesday’s shareholder conference call – that ‘green’ metals are commodities that will bear fruit for the diversified miner in the years to come. Major, however, has a different view. He’s concerned the ESG (environment, social and governance) mania has possibly pushed these metals to above fair value, suggesting Froneman may be overpaying for these assets. A similar theme played out at the end of the previous commodity boom, where miners were bullish on M&A activity, only to be left in the dust when the frenzy settled.