Sibanye-Stillwater’s board has resolved to provide emergency funding of up to A$30 million (R400m) to Australian zinc and tailings mining company New Century Resources, which the local group is in the process of acquiring.
In an update on the locally-based international mining and metals processing group’s debt refinancing yesterday, Sibanye said the funding had followed a request from New Century “for emergency financial support.”
New Century’s share price is currently suspended on the Australian stock exchange while Sibanye’s offer to acquire all of New Century’s shares in an off the market takeover, remains open until May 15, 2023.
New Central has the biggest tailings, and remaining and processing operation in Australia, and is also developing underground and open pit mining operations. In the year to June it reported an earnings per share loss of A25.5 cents, which had fallen 75.1% from the previous year.
Sibanya said yesterday it had successfully refinanced and increased its US Revolving Credit Facility from $600m to $1 billion (R18.3bn), enhancing the liquidity of the group.
“We are delighted with the interest from numerous financial institutions and strong support from the group of banks who are financing the facility. The increase in the size of the facility, especially considering the uncertain macro-environment, from our perspective, is a strong vote of confidence in the group…” Sibanye CEO Neal Froneman said in a statement.
He said the larger facility enhanced liquidity and flexibility, accommodated the growth that has taken place in the group, and supported its delivery of value to all stakeholders.
He said additionally, Sibanye-Stillwater had secured working capital and trading facilities for the Sibanye Stillwater Sandouville Refinery, a subsidiary of Sibanye Battery Metals. Sibanya would guarantee the obligations of Sandouville Refinery.
Apart from its platinum group and gold mining and metals processing operations across five continents, Sibanye is also a global recycler of PGM autocatalysts and has interests in leading mine tailings retreatment operations.
The group has recently begun to build and diversify its asset portfolio into battery metals mining and processing, and is increasing its presence in the circular economy by growing and diversifying its recycling and tailings reprocessing operations globally.
Sibanye’s share price gained 2.77% to R38.15 on the JSE yesterday morning, a price well down from. R61,49 that it traded at a year before.
Online sources showed platinum traded at a spot price of $1007.25 per ounce yesterday morning, up from $934.23 over a very volatile year for the price. The gold price was trading at $2003.7 per ounce, up from $1949 per ounce a year ago.
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