Sibanye-Stillwater’s move to chip away at its debt mountain found favour with the market on Tuesday, with analysts saying the company was now better positioned to weather difficult trading conditions. Sibanye now intends to clear 31% of its long-term debt through existing cash resources, something the company expects will reduce annual interest costs by about R378m a year. In the six months to June, Sibanye’s net debt grew to R25bn from R22bn a year earlier. The gold producer’s recent string of aggressive acquisitions has left it highly geared, with the company grappling with falling gold prices even as it continues to eye Lonmin, the world’s third-largest platinum producer. The debt repurchase would be funded through the proceeds of a financing recently concluded with Wheaton Precious metals, Sibanye CEO Neal Froneman said. Sibanye had announced a streaming deal with Wheaton in July, which saw the latter advance $500m upfront for Sibanye’s gold and palladium production in the US. C...
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