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Harare Bureau
SOUTH Africa’s largest gold producer Sibanye Gold Ltd is set to take over Aquarius Platinum’s shareholding in the Zvishavane-based Mimosa Platinum after agreeing to acquire the parent company. Sibanye Gold has agreed to buy Aquarius Platinum for $294 million.

Mimosa Platinum was Aquarius’ 50-50 joint venture with Impala Platinum, and is one of the most cost efficient and safest platinum group metals (PGM) producers in Zimbabwe.

“Sibanye is pleased to announce a cash offer of $0,195 per share for the entire issued share capital of Aquarius, valuing Aquarius at an equity value of $294 million.

“At the current exchange rate, the offer equates to 2,66 rand per Aquarius share.

“The board of directors of Aquarius have unanimously recommended that Aquarius shareholders vote in favour of the offer at an Aquarius Special General Meeting, subject to the receipt of a favourable independent experts report.

“The Aquarius board intends to vote in favour of the offer with respect to their own beneficial holdings,” said Sibanye in a statement yesterday.

In the full year to June 2015, Mimosa recorded a seven percent increase in production to 236,067 ounces of PGMs from 221,358 ounces the previous year.

Revenue for the period was up five percent to $272 million due to higher metal sales.

Earnings before interest, taxes, depreciation, and amortisation attributable to Aquarius were $42 million.

It is not yet clear what the acquisition will mean for Mimosa’s planned expansion.

In its June 2015 full year interims, Aquarius had said its expansion plans for Mimosa remained on course, stating that the “bankable feasibility study is currently underway and is due to be completed in time for the FY16 half year release in February 2016.”