Integrated Annual Review 2012 Annual Financial Report 2012 Mineral Resources and Mineral Reserves Regional overview  

1.3.2 Benefits of separation

The split will enable the new Gold Fields to:

  • Give greater attention to cash flow and margin per ounce
  • Give greater attention to delivering South Deep and the international asset portfolio
  • Create a portfolio that is more resilient to fluctuations in the gold price and exchange rates
  • Establish a fit-for-purpose organisational structure given the smaller portfolio

Meanwhile, the separation was aimed at helping Sibanye Gold to:

  • Establish its own fit-for-purpose and dedicated management team to focus on Beatrix and KDC
  • Ringfence cash flows from its mature, deep underground mines to invest in related development projects or pay out in dividends
  • Increase efforts to reverse declining production trends
  • Optimise the extraction of its substantial Mineral Resources and Mineral Reserves – and so extend the life of both mines
  • Pursue technological solutions to help meet the challenges posed by deep underground, narrow reef mining
  • Explore potential synergies to be gained through the consolidation of the South African gold mining sector