Sibanye to raise R1.8bn in case of platinum strike
Sibanye to raise R1.8bn to protect itself from a potential platinum strike as gold stoppage drags on, costing more than R1.5bn
Sibanye-Stillwater is raising R1.8bn in a share placement to position itself for platinum sector wage talks and to restructure its gold mines. The placement with “certain institutional investors” will represent 5% of the company’s issued shares and an accelerated book building exercise will be conducted by JP Morgan Securities.
The price for platinum group metals (PGMs) that Sibanye produces are high, but the company noted “the ongoing strike at the SA gold operations and the commencement of upcoming SA PGM wage negotiations at the end of the second quarter 2019, pose potential operational risks that require due consideration”.Sibanye had net debt of R21.3bn at the end of December 2018 and it has extended the upper limits of its debt covenants to the end of 2019 to ensure these were in no danger of being breached because of the financial consequences of the ongoing gold strike.Having additional cash on its balance sheet will give Sibanye the flexibility and firepower to ride o...
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