Sibanye shareholders ‘need their eyes wide open’
But the company has faced difficulties before, and CEO Neal Froneman dismisses the criticism against it
If platinum group metal (PGM) prices stay at their current levels this year, one bleak forecast says, Sibanye-Stillwater will break its lender covenants. To keep them afloat it would then be confronted with a decision to either close its projects or raise $500m-$1bn, possibly through a rights offer, the argument goes.
Before you reach for the Valium, however, it’s worth recalling recent history — because this is not the first time the company has been tipped for oblivion. It passed the dividend in 2017 to cope with net debt of R22bn. The market didn’t approve. Critics accused Sibanye-Stillwater CEO Neal Froneman of overspending after buying assets worth 1.6-million ounces in annual PGM production in less than three years...
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