All conditions for the transaction to proceed having been satisfied, the acquisition of Reldan was successfully concluded on 15 March 2024 for a final cash purchase consideration of US$155.9 million. The consideration was paid from the proceeds of the US$500 million senior unsecured guaranteed convertible bond due in 2028, completed in November 2023, with a coupon of 4.25%
Investment rationale
The acquisition of Reldan complements our US PGM recycling business in Montana and enhances our global exposure to the circular economy, providing a solid base for further expansion. Between Reldan (using gold equivalent ounces for silver) and the US PGM recycling business in Montana, around 170koz of secondary gold (based on Reldan’s 2022 actual) and 400-450koz of secondary PGM production (based on US PGM 2023 recycling guidance and Reldan’s 2022 actual platinum and palladium produced) will be produced.
The acquisition is expected to be value accretive and positively contribute to the Sibanye-Stillwater Group earnings and cash flow from day one.
Sibanye-Stillwater Chief Executive Officer Neal Froneman commented, “The strategic acquisition of Reldan is a further pivotal step in our company’s commitment to sustainability and our journey toward net zero.
Reldan’s exceptional environmental, governance, and safety standards position them as an industry leader, providing us with an exemplary platform to amplify our recycling efforts. We are excited to work alongside the Reldan management team and employees to seamlessly integrate and scale our operations, reinforcing our dedication to the advancement of green metals and recycling.”
Related media
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