JSE- and NYSE-listed Sibanye-Stillwater has refinanced and upsized its rand revolving credit facility (RCF) from R5.5-billion to R6-billion and has also concluded a R1.8-billion gold prepayment arrangement, which it says strengthens and enhances balance sheet flexibility.

The rand RCF was previously due to mature on November 11. The refinanced facility will mature in August 2027 but may be extended through two further one-year extensions.

The RCF was agreed with a syndicate of banks led by Nedbank Corporate and Investment Banking and FirstRand Bank, acting through its Rand Merchant Bank division.

It also includes an option for Sibanye to increase the rand RCF by a further R1-billion later in the term, through the inclusion of additional lenders.

The borrowers and guarantors are the same as those under the existing RCF, being Sibanye-Stillwater, Sibanye Gold, Sibanye Rustenburg Platinum Mines, Kroondal Operations, Western Platinum and Eastern Platinum.

The facility is guaranteed by Stillwater Mining Company, Keliber Oy and Keliber Technology Oy.

Further, group subsidiary Sibanye Gold has concluded a prepayment arrangement to deliver, to an undisclosed offtaker, 1 497 kg of gold in equal monthly tranches from October this year to November 2026.

The gold delivered will be subject to a floor price of R1.35-million per kilogram and a cap price of R1.74-million per kilogram.

The funding will be applied toward partially repaying the group’s rand RCF.

“The gold prepayment is a proactive, strategic financing alternative, that improves the group’s liquidity and strengthens the balance sheet while retaining leverage to potential increases in the gold price.

“We are also pleased to have refinanced and upsized the rand RCF, which is a strong signal of confidence and support from our South African lenders,” CEO Neal Froneman says.

He adds that these financing agreements significantly mitigate the group’s financial risk and provide additional financial flexibility and optionality.

“We have also made good progress on other initiatives designed to strengthen our balance sheet without resorting to equity and we look forward to providing the market with more detailed information in due course,” he says.