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Neal Froneman, CEO of the precious metals miner said in an interview on the sidelines of the London Indaba, a conference, that a decision on the project was “weeks away”.

There was “no question” the 120,000 ounce a year project was “a good one,” said Froneman. A feasibility study into it, launched last year, was focused not on the project’s fundamentals but on specific ramp-up issues such as staffing. “It’s in the middle of nowhere,” said Froneman.

The group had already spent R4 billion on Burnstone before halting it in 2021 as it sought to conserve cash amid a heavy correction in platinum group metal prices.

“It wasn’t because the project didn’t work at all. There was no problem. We just had to limit cash outflow, and we felt that Burnstone was something we could switch on and switch off,” he said.

“We know exactly what we’re going to be committing to and how long it’s going to take, and what it’s going to cost exactly,” Froneman added. There will be some ramp-up capital as well as the outstanding R1 billion in project capital to complete Burnstone.

Froneman said there would be “no issue” funding the project as a standalone project, rather than via a joint venture as previously explored owing to the performance of gold in the last 12 months, up 44%.

Of R4.1 billion in Sibanye-Stillwater’s first quarter adjusted Ebitda, R1.16 billion was generated from its gold assets Driefontein and Kloof mines in which the group booked an average price received of R1.68m per kilogram. This compares to a spot rand gold price of R1.89m/kg.

“It’s shallow, and it’s decent grade and it’s long life. It’s not a short-life asset: it has 20 years of life. So, it changes the risk profile of the company a lot. At these gold prices, it’ll make a lot of money because it’s not a high-cost operation,” said Froneman.

Asked during a conference presentation to reflect on his career, Froneman said failing to merge Sibanye-Stillwater’s gold mines with AngloGold Ashanti and Gold Fields was a missed opportunity. He forecast that the Driefontein and Kloof mines had about five years of life left in them before adding: “Possibly 10 years”.

Froneman is due to retire from Sibanye-Stillwater in September. He will be succeeded by Southern African COO, Richard Stewart.