Fresh from a rights placement for R1.7bn, Sibanye-Stillwater will raise a similar amount by selling forward gold production to Citibank, giving it protection from a potential platinum strike and funds to repay debt. Sibanye-Stillwater, with the equivalent of two thirds of its R32bn market capitalisation as net debt, has said it is reinforcing its balance sheet in case of a strike at its SA platinum division, the protracted industrial action at its local gold mines, as well as to prepare for any “exogenous event”. Sibanye, the largest producer of SA gold, said on Thursday it had struck an agreement with Citibank to deliver 105,906oz, or nearly 3.3 tonnes of gold, during the fourth quarter of this year for an upfront payment of R1.75bn. Sibanye had net debt of R21.3bn at the end of December 2018 and has extended the upper limits of its debt covenants to the end of 2019 to ensure these are in no danger of being breached because of the financial consequences of the ongoing gold strike....

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