At a Glance
- PIC’s Sibanye stake now worth $1.7 billion amid share price rebound.
- The asset manager holds 20.4% in Sibanye, showing long-term confidence.
- Rising gold prices help offset lower output from aging deep-level mines.
Africa’s largest asset manager, the Public Investment Corporation (PIC), has deepened its exposure to Sibanye-Stillwater, lifting the value of its stake in the Johannesburg-based miner to about $1.7 billion.
The increase reflects both PIC’s expanded holding and a steady rebound in Sibanye’s share price, which recently climbed to R48.90 on the Johannesburg Stock Exchange amid renewed investor appetite for South African mining stocks.
Output pressures amid aging gold mines
The development comes as Sibanye signals plans to boost its interest in DRDGOLD, where it already owns 50.1 percent, as part of a gradual shift away from its aging deep-level gold mines.
Over the past decade, Sibanye has worked to extend the lifespan of its flagship Kloof and Driefontein operations. But both mines are showing signs of fatigue.
The company revised its production guidance twice this year, citing seismic disruptions at Kloof and weaker output across its gold division. Its latest forecast, between 480,000 and 514,000 ounces, marks a sharp drop from the 1.3 to 1.4 million ounces it produced roughly ten years ago.
Still, rising bullion prices, which recently crossed $4,000 per ounce, have helped cushion the impact of lower production.
PIC deepens stake in Sibanye
In a regulatory filing on October 10, PIC confirmed that it now holds 20.423 percent of Sibanye-Stillwater, valuing its position at about R28.39 billion ($1.65 billion).
The move underscores the state-owned investor’s long-term approach to key South African companies, even as the mining sector faces weaker prices for platinum group metals (PGMs) and nickel.
The increased holding follows a leadership transition at Sibanye, with long-time CEO Neal Froneman, who steered the group through a decade of acquisitions and market volatility, retiring in September 2025.
The PIC’s decision to expand its stake at this point signals confidence in the miner’s new leadership team and its strategic direction.
The corporation’s mining exposure extends beyond Sibanye. It has also raised its stake in Thungela Resources, with its interest in the coal producer now valued at roughly R1.21 billion ($70.1 million).
Backing Sibanye through change
Sibanye-Stillwater, one of the world’s leading producers of platinum, palladium, and gold, has evolved over the past decade from a local gold miner into a diversified multinational group with assets spanning North America and Europe.
PIC’s sustained investment reflects confidence in Sibanye’s long-term prospects and its ability to adapt to changing market conditions. The asset manager’s backing is also a vote of confidence in South Africa’s mining sector at a time when investor sentiment has been mixed due to energy constraints, labor costs, and global commodity swings.
Founded in 1911 and corporatized in 2005, the PIC manages pension funds for South Africa’s public servants and oversees assets exceeding R3 trillion ($173 billion). As the largest institutional investor on the Johannesburg Stock Exchange, it holds stakes in many of the country’s leading firms, including Investec, Tiger Brands, and Clicks Group.
The growing value of its Sibanye investment not only reinforces its position as a cornerstone of South Africa’s financial markets but also highlights the enduring ties between state-backed capital and the country’s biggest mining players.
