Now looking at Lonmin?
Sibanye has completed its bond-raising exercise, which is the final leg in the acquisition of Stillwater Mining. The bond was twice oversubscribed with $1.05bn being raised. Now that this is done we can turn our attention to my idea about what Sibanye is going to do with the extra almost half a billion dollars that it has raised. I still think it may make an offer for Lonmin and with the share trading just off all-time lows at slightly above 1 000c, the R3bn market cap is easily covered by the extra money raised. Lonmin is in dire straits; yet the management team at Sibanye not only seemingly enjoys the challenge of generating profits where other miners can’t but is also very good at it.