Gold Fields Creates New Gold Company by Unbundling Subsidiary

Gold Fields Limited  (JSE:GFI,NYSE:GFI )  announced the creation of a new South African gold mining company by the unbundling of its 100% owned subsidiary, Sibanye Gold Limited.

As quoted in the press release:

Subject to approval by the JSE and the NYSE, Sibanye Gold will be listed as a separate and independent company on both exchanges in February 2013. Sibanye Gold shares will then be distributed to existing Gold Fields shareholders (whether held in the form of ordinary shares or depository receipts).

Gold Field’s CEO, Nick Holland, said:

By unbundling the cash-generative KDC and Beatrix mines into Sibanye Gold, its cash flows can be utilised to extend the life of the mines and improve dividend payouts to shareholders. The first priority, however, will be to achieve stable and safe production.

To view the whole press release, click here.