Sibanye-Stillwater gets endorsement from lenders
The company says its multi-currency US dollar and rand revolving credit facility has been extended on the same terms for 2019
Precious metal miner Sibanye-Stillwater has received a vote of confidence from its key stakeholders in the form of the rollover of its debt facilities on the same terms for another year.
The company announced via SENS on Friday morning that its multi-currency US dollar and rand revolving credit facility (RCF) with a consortium of 13 local and international banks had been extended on the same terms for 2019.
“The headroom resulting from the extension provides sufficient financial flexibility and should provide the market with additional confidence,” Sibanye CEO Neal Froneman said in the statement.
The announcement comes despite a strike at its local gold division led by the Association for Mineworkers and Construction Union (Amcu). The strike began on November 21 2018.
Much of the debt on the company’s balance sheet originated from the acquisition of North American platinum and palladium miner Stillwater, which was part of a broader diversification strategy to lessen reliance on Sibanye’s old and costly local gold mines.
The company initiated a $395m buyback of its corporate debt in 2018 following the conclusion of a streaming deal to sell its palladium and platinum from the Stillwater operations.
Sibanye’s next major debt repayment is only in mid-2022.