Sibanye CEO says may close metals streaming deal in third quarter
LONDON - Sibanye Stillwater CEO Neal Froneman said on Tuesday it may close a metals streaming, or prepayment, deal to raise the cash it needs to boost its balance sheet in the third quarter.
The Johannesburg-based platinum-group metals producer is seeking to raise more than $500-million to shore up its balance after earnings plunged due to a rout in metal prices.
Potential financiers are currently conducting due diligence at Sibanye, Froneman told Reuters on the sidelines of a mining conference in London.
"We've got a number of parties on site doing due diligence so I'm confident within the third quarter we'll certainly be able to complete that process," Froneman said in an interview.
"It could be multiple parties but most likely one."
The metals producer's profits tumbled $2-billion last year due to lower prices and after it reported $2.6-billion of impairments at its US palladium mines, a nickel operation in France and at a gold operation in South Africa.
Sibanye and its South African rivals including Anglo American Platinum and Impala Platinum are cutting thousands of jobs and halting spending on new projects to survive one of the worst price routs in more than 30 years.
Earlier this month, Sibanye said all of its lenders have agreed to raise the debt threshold on all facilities, in a move that could help it strengthen its balance sheet.
The CEO said Sibanye "isn't short of money", adding it has about six months of working capital.
Sibanye's earnings are being squeezed by low metal prices and spending on its Keliber lithium project in Finland, which Froneman said, would continue to advance despite falling prices of the battery metal.
RBC Capital Markets is aiding Sibanye on the deal, he said.
"We've run a process and a number of streamers have shown an interest and have made indicative proposals which we have considered and they are on site doing due diligence," he added.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Avlock International is a leading manufacturer and distributor of Specialized Fastening Systems.
VISIT SHOWROOM
Supplier & Distributor of the Widest Range of Accurate & Easy-to-Use Alcohol Breathalysers
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
