Agitated investors are applying the screws to mining industry

The mining industry is under increasing pressure to deliver returns from agitated investors who want improved capital discipline. File Photo: IOL
JOHANNESBURG – The mining industry is under increasing pressure to deliver returns from agitated investors who want improved capital discipline, the Joburg Indaba held in Johannesburg heard yesterday.

American Platinum chief executive Chris Griffith told the Joburg Indaba that investors were no longer interested in seeing companies chasing deals that destroyed capital.

“Investors are sending a message. They’re critical of us and our ability to generate returns. They do not want us to generate volumes, they want us to generate returns,” said Griffith.

Griffith said the company was asked a lot of questions on whether it was looking for additional mergers and acquisitions and whether it would move to invest outside of South Africa.

“The best resources for platinum group metal (PGM) are in South Africa, We are a company that is generating good returns. While we are getting enquiries, we are not getting pressure to move outside of South Africa,” he said.

Source: iol.co.za