South African mogul Neal Froneman gains $4.7 million in 56 days from Sibanye-Stillwater

South African businessman Neal Froneman, saw a significant increase in the market value of his holding in Sibanye-Stillwater over the past 55 days, as investors renewed their interest in purchasing shares of the multinational precious metal mining company.

According to recent research by Billionaires.Africa, the market value of his shareholding has risen by R812 million ($4.7 million) in the past 56 days due to a surge in the company’s shares on the Johannesburg Stock Exchange.

Sibanye-Stillwater is a multinational precious metal mining company with operations in South Africa. It is involved in gold and base metal mining, as well as projects in South Africa and the Americas.

Froneman, who was instrumental in Sibanye-Stillwater’s development into one of the world’s leading primary producers of platinum, palladium, and gold, holds a 0.074-percent stake in the precious metal mining group.

As of press time on Nov. 18, shares in the mining group were trading at R45.16 ($2.587), giving the group a market capitalization of R127 billion ($7.24 billion).

Sibanye-Stillwater’s shares on the Johannesburg Stock Exchange have increased by more than 26 percent in the last 56 days, from R35.74 ($2.05) per share on Sept. 23 to R45.16 ($2.587) per share on Nov. 18.

The market value of Froneman’s stake in the group has risen from R310.94 million ($17.8 million) on Sept. 23 to R392.9 million ($22.5 million) at the time of writing this report, owing to the recent surge in the company’s shares.

This equates to a total R812 million ($4.7 million) gain for the multimillionaire businessman, who received $18.9 million in remuneration in 2021

The surge in Sibanye-Stillwater’s share price comes as the company is restructuring its gold operations, which may result in the company terminating connections with 465 contractors and laying off 2,000 people.

According to Richard Stewart, chief regional officer of Sibanye-Stillwater’s Southern Africa operations, the restructuring move will reduce all shafts and operating plants that are no longer sustainable but continue to operate at a loss, threatening the mine’s and other South African gold operations’ remaining life, and ultimately the employees of the broader group.