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DRDGold strikes while the SA iron is cold

The combination of DRDGold (SJ:DRD) and Sibanye-Stillwater’s (SJ:SGL) West Rand Tailings Retreatment project (WRTRP) looks like providing the sort of re-rating the South Africa-focused company has been chasing. Yet, it admits it would probably not have such options if the country was the foreign investment hotbed it previously was.

DRDGold strikes while the SA iron is cold DRDGold strikes while the SA iron is cold DRDGold strikes while the SA iron is cold DRDGold strikes while the SA iron is cold DRDGold strikes while the SA iron is cold

The WRTRP assets' Driefontein 4 tailings dam

The assets in the greater Carletonville/Randfontein area of South Africa could be exchanged for 38% of DRD's share capital, if its shareholders approve the transaction later this month.

As part of the deal, the company will acquire selected surface processing plants and tailings assets, while Sibanye-Stillwater will have the option to boost its DRD holdings to 50.1% and add a director to its board.

DRD received approval from...