“We thank our shareholders for their support for this transaction which represents a unique and transformative opportunity to acquire world class, low-cost international PGM assets. Stillwater offers near-term organic production growth through the Blitz project, further enhancing Sibanye’s asset portfolio and will create in Sibanye, a globally competitive South African mining champion with a unique commodity mix” Neal Froneman, CEO of Sibanye
Strong transaction rationale
Enhance Sibanye’s asset base and create a globally competitive South African mining champion by:
- Adding two low-cost, low-risk, steady state producing PGM mines to its portfolio
- Expanding its portfolio with high-grade reserves that support over 25 years of mine life
- Providing near term, organic and low-cost growth through the Blitz Project
- Providing significant upside and growth potential through extensive regional resources
- Creating a mine-to-market PGM business with a metallurgical processing complex
- Significant PGM recycling business provides a steady margin and strategic insight into the market
- Further operational optimisation potential through transfer of “best practices”
Position Sibanye shareholders for potential valuation re-rating by:
- Being value accretive, per detailed management due diligence
- Balancing its portfolio operationally and geographically with the addition of a world class operation in an attractive mining jurisdiction
- Positioning its Platinum Division further down the global cost curve, with potential for further cost reductions
- Enhancing its cash flow generation to sustain its industry-leading dividend
- Improving its access to lower-cost global financing
