Scamming for gold


Scamming for gold

Top mining executives commit fraud with impunity, confident their highly paid lawyers will make criminal charges ‘go away’. By Barry Sergeant

As ANC voters continue to show little concern for the corrupt doings of their party’s leadership, so the fund managers that direct the bulk of investments on the JSE apparently choose to ignore the blatant dishonesty and corrupt dealings of the executives of major companies in which they continue to invest pension and other trust funds.

If the terrible saga of Gold Fields and South Deep (nose192 “Digging into South Deep” and, before that, noses179,181&183) is not a sufficiently powerful symbol of South Africa’s inexorable loss of innocence – since Nick Holland took the CEO seat in May 2008, Gold Fields’ executives have earned more than R700 million in return for shamelessly spinning a plainly impossible future-production profile for South Deep – consider the scandalous goings-on at JSE-listed Sibanye, which was spun out of Gold Fields early in 2013.

Like to see more ?


Subscribe to our on-line edition !

For a mere R298.00 per year you get the convenience of our online version including:
  • Twelve monthly issues of Noseweek delivered to your browser
  • A searchable archive
  • Access to every back issue since 1993 !
  • A downloadable PDF version

If it’s just the article you are after, you can purchase it by clicking here.

Tempted ?


For a taste of what awaits you, you are welcome to browse this free issue.

Share this article:

 or .....


Sharing is caring

Reader's comments

Like to add your own comment ? Please click here to subscribe - OR -
 
Submitted by : Neil Van Der Westhuizen of Johannesburg on 2016-02-24 09:33:23
Thanks Barry. I'm aware Mr Froneman was never CEO of Harmony and that Bernard Swanepoel has a good reputation in the industry. I quote my correspondence with a mining Engineer: "I do not really know Froneman, but his claim to fame is the success at Harmony. Do not underestimate the positive effect that B. Swanepoel had during that time." So I'm not sure what that statement refers to.

I also attended a presentation by Mr. Froneman about two years ago where he made it clear the ambitions of Sibanye were to extract what's remaining of Gold Field's old SA assets and pay out a meaty dividend to that end.

It is now common cause he has done a 180 on his original promise/plan. Perhaps he has seen an opportunity to pick up cheap assets in a bear market? (I'm sure that's at least what the fund managers believe).

At any rate what signs would you look for that it's time to short the stock? He seems to be able to destroy value a lot faster than Holland.
 
Submitted by : Barry Sergeant on 2016-02-23 15:18:36
Mr Froneman - like Mr Holland at Gold Fields - has a long, documented history of over-promising ad nauseam and under-delivering. He clearly has no regard for the consequences of what he says. At the same time, investors, not least those in the institutional field, do not care an iota. To quote Mark Twain, “Be careful about reading health books. You may die of a misprint.”
 
Submitted by : Neil Van Der Westhuizen of Johannesburg on 2016-02-21 08:54:35
Barry, did Froneman not have some actual success at Harmony? Was that accidental?
 
Submitted by : Marinda Valentin of Pretoria on 2016-02-02 13:09:12
"Neal Froneman made it clear that the foundation of sustainable business is profit! At the same time the Sibanye Executive is confident that it can prolong the 'Life of Mine Plan' of Rustenburg Platinum Mines (RPM(R)) with up to 25 years!" This is a direct quote from an article published in the Rustenburg Herald, page 3, 29 January 2016. "Deon Farmer, Chairperson of the Rustenburg Chamber of Commerce, responded by pledging on behalf of the RCC to support Sibanye's application with the Competition Commission of South Africa to approve the acquisition of RPM(R)." Another direct quote. In the accompanying photograph it is interesting to note that Mr Froneman, CEO of Sibanye Gold, is the only one with his hands in his pockets! How much is he holding onto this time?

Disclaimer

While every reasonable effort is taken to ensure the accuracy and soundness of the contents of this publication, neither the authors nor the publishers of this website bear any responsibility for the consequences of any actions based on the information contained therein.