Sibanye CEO Neal Froneman.  Picture: MARTIN RHODES
UPBEAT: Sibanye CEO Neal Froneman addresses the media on the group’s results in Sandton on Thursday. Picture: MARTIN RHODES

A DAY after Sibanye Gold’s CEO Neal Froneman sold a personal stake worth R65m in the company’s shares, he was on Wednesday awarded a further R35m worth of stock as a performance incentive.

Mr Froneman’s sale of 1.2-million shares, potentially for a gross profit of R49m, puts him at odds with investors who have been increasing their holdings in the entity.

The Public Investment Corporation (PIC) and Investec recently raised their respective stakes.

Sibanye has in the past year splashed out more than R8.5bn to acquire all of Aquarius Platinum and the Rustenburg operations of Anglo American Platinum.

These transactions, approved by Sibanye’s investors in January, were quickly followed by large institutional fund managers raising their stakes in the gold mining company.

The PIC raised its stake to 10.1%, while Investec increased shareholding to more than 5%.

At an average sale price of R54.46 per share, Mr Froneman made a gross profit of R49m, based on the average R13.20 per share that Sibanye traded at when he was awarded the options in May 2013, according to data provided by Sibanye to the JSE.

Shareholder activist Chris Logan of Opportune Investments praised Mr Froneman’s acumen.

"Gold shares have run hard. It’s probably a good sale," he said.

Sibanye sees no contradiction in its chief selling personal shares.

Spokesman James Welsted said: "The shares Neal is trading are largely stock he received when he joined the company and were part compensation for the shares in Gold One that were still due to him."

Sibanye acquired the Cooke operations of Gold One, of which Mr Froneman was CE.

In 2013 Mr Froneman and other company executives were awarded the performance incentive shares upon joining Sibanye Gold, which had been unbundled from Gold Fields.