PIC takes new shares worth $11.85 million in Neal Froneman-led Sibanye

Key Points

• PIC raises Sibanye stake to 15.409%, investing R218 million ($11.85 million), signaling confidence as CEO Neal Froneman prepares to exit.
• The investment follows Sibanye’s narrowed 2024 loss and early restructuring efforts amid recovering gold prices and easing commodity pressures.
• PIC’s move aligns with a broader strategy backing high-potential South African firms, including recent investments in Northam, Grindrod, and Clicks.

Africa’s largest asset manager, the Public Investment Corporation (PIC), has increased its stake in Sibanye-Stillwater with a share purchase worth R218.04 million ($11.85 million), reinforcing confidence in the Johannesburg-based mining group as its longtime CEO Neal Froneman prepares to step down.

The transaction, disclosed on May 13, raised PIC’s stake in Sibanye from 15.048 percent to 15.409 percent, a modest but telling increase. It comes shortly after Sibanye narrowed its net loss in 2024 to R5.7 billion ($311 million), a notable improvement from the $2.03 billion loss it posted last year due to lower commodity prices and asset impairments.

After being weighed down by falling prices for platinum group metals (PGMs) and nickel, as well as operational setbacks, Sibanye has recently begun to turn a corner. A rebound in gold prices and early 2024 restructuring efforts have helped the company stabilize. This progress comes as Froneman, who has led Sibanye through a decade of bold acquisitions and tough market conditions, prepares to retire in September.

More than just a one-off investment

PIC’s move is not just about Sibanye, it fits into a broader effort to back South African companies it sees as having long-term value. In January, the fund added R49.82 million ($2.6 million) worth of shares to its stake in Northam Holdings, now valued at nearly R9 billion ($469 million).

In February, PIC increased its investment in Grindrod Ltd., a logistics and financial services firm, to R1.89 billion ($102.8 million). A month later, it put R275.13 million ($14.89 million) into Clicks Group, lifting its stake by over two percentage points to 20.135 percent. With this latest investment, PIC’s holding in Sibanye is now valued at R9.31 billion ($504.46 million).

Backing Sibanye through change

Sibanye-Stillwater, a leading global producer of platinum, palladium, and gold, has spent the past decade expanding aggressively under Froneman’s leadership.

The company’s transformation from a gold-focused South African miner into a diversified global player has been closely watched. PIC’s continued support suggests it sees value not just in Sibanye’s recent progress, but in its future beyond Froneman.

Founded in 1911 and corporatized in 2005, the PIC manages pension funds for government workers and oversees more than R3 trillion ($173.27 billion) in assets. As the largest investor on the JSE, it holds more than 10 percent of the JSE’s total market capitalization and is a major shareholder in companies like Investec, Tiger Brands, and Clicks Group.