South Africa's four biggest gold producers are hoarding cash and lining up access to more as the companies prepare for what would be the first industrywide strike since 2011.
Sibanye Gold boosted its cash balance sevenfold to 2.09 billion rand ($223 million) by June from December, AngloGold Ashanti has arranged to borrow more from banks if needed, filings show. Like their peers, Gold Fields and Harmony Gold Mining have scrapped dividends this month as unions prepare to ballot members over work stoppages.
''If we are, let's say, bullied into a situation that we don't like, we can ride out the storm for a very long period of time,'' Sibanye CEO Neal Froneman said. ''That was the reason behind putting cash in the bank.''
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