Alec Hogg: Capital allocation – the reason Froneman is bearish on SA

Mining veteran Neal Froneman and his board at Sibanye are capital allocators par excellence. Since the company's 2013 creation through cast-offs from the once-venerable GoldFields Limited, the gold mining orphan has been transformed into a R150bn global giant. Achieved, Froneman says, by following a clear strategy and disciplined capital allocation.

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In Monday's Rational Radio webinar, Froneman lived up to his billing as one of the most forthright of all South African CEOs. It was a distressing discussion for the naturally optimistic. But one stemming from the most rational of foundations – the benefits of efficient allocation of capital. Take time to reflect on Froneman's pessimistic view of South Africa, and much of it will resonate.

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