In October 2021, Sibanye-Stillwater acquired a 19.99% shareholding in New Century Resources, a leading tailings management and rehabilitation company which currently owns and operates the New Century zinc tailings retreatment operation in Queensland, Australia, the largest tailings retreatment operation in the country. New Century is among the top 15 global zinc producers with annual zinc production of 128,000t (FY2021).
On February 21, 2023, we launched an off-market takeover offer for all of the shares in New Century that we do not already own. The proposed takeover is in line with our strategy to invest in the circular economy and be a global leader in tailings retreatment and recycling. The offer price implies an equity value for New Century of US$103 million (A$149 million) on a fully diluted basis. In the event that Sibanye-Stillwater acquires all of the securities in New Century that it does not already own, Sibanye-Stillwater will pay up to US$83 million (A$120 million), at AUD/USD: 0.69, under the transaction.
The investment in New Century signifies further geographic diversification for Sibanye-Stillwater, providing a foothold in Australia, a high-quality international mining jurisdiction. The acquisition will potentially enable the sharing of technological best practice and synergy realisation across Sibanye-Stillwater’s various investment platforms, further advancing the company as a global, ESG-focused industry leader in tailings reprocessing. New Century’s investment in the Mt Lyell copper mine in Tasmania will also provide an opportunity for sustainable green copper production, large-scale tailings reprocessing and rehabilitation.
At 31 December 2021, New Century contained an attributable Mineral Resource of 1,106.3Mlb of zinc (at 3.5%) and an attributable Mineral Reserve of 710.9Mlb of zinc (at 3.1%).
REFERENCES
- Australian Mining: New Century board accepts Sibanye takeover offer
- ASX market release: Off-Market Takeover Offer for New Century – Offer Opens and Despatch Complete
- ASX market release: Update to Sibanye-Stillwater and Sibanye Australia’s voting power in New Century – now increased to 51.41%
- ASX market release: Update to Sibanye-Stillwater and Sibanye Australia’s voting power and On-Market Purchases
- Market release: Sibanye-Stillwater off-market takeover offer for New Century Resources Limited at A$1.10 per share
- Bidder’s Statement: Sibanye-Stillwater off-market takeover bid for New Century Resources Limited (ASX: NCZ)
- New Century presentation: Transformational ESG Focused Growth Transaction
- Market release: Sibanye-Stillwater invests further in the circular economy as it expands its tailings retreatment exposure through a 19.99% investment in New Century Resources
