South African mogul Neal Froneman-led mining group launches $500-million bond to fuel growth

Sibanye-Stillwater, the precious metal mining group led by South African mogul Neal Froneman, made a landmark financial move on Tuesday as one of its many subsidiaries, Stillwater Mining Company, successfully priced its offering of $500 million senior, unsecured, guaranteed convertible bonds, maturing in Nov. 2028.

The proceeds from the convertible bonds offering will be deployed in line with the strategic efforts to support the group’s growth strategy — including financing the recently unveiled Reldan acquisition on Nov. 9, 2023. This pivotal move will strengthen the company’s position and financial stability amid challenges posed by the low commodity prices in recent times.

Neal Froneman applauds strong investor response to Sibanye-Stillwater’s convertible bond offering

Froneman the CEO of Sibanye-Stillwater, expressed satisfaction with investors’ subscription to the bond offering, saying, “We are very pleased that it was multiple times oversubscribed. The Convertible Bond offering is one of various available financing options, which provides financial flexibility at a reasonable cost under current market conditions, and will enable further delivery on our strategic growth objectives at an opportune time in the commodity cycle, whilst maintaining balance sheet resilience and liquidity.”

The convertible bonds — designed to convert into new or existing Sibanye-Stillwater ordinary shares — are scheduled to be issued on Nov. 28, 2023. The payments will be guaranteed by Sibanye-Stillwater and its subsidiaries — including Sibanye Gold Proprietary, Sibanye Rustenburg Platinum Mines Proprietary, Kroondal Operations Proprietary, Western Platinum Proprietary, and Eastern Platinum Proprietary.

Global mining powerhouse Sibanye-Stillwater’s innovative financing strategy

The facility carries a 4.25-percent per annum coupon, payable semi-annually on May 28 and Nov. 28 each year, starting May 28, 2024. The initial conversion price will be set at a 32.5 percent premium to the volume-weighted average price of Sibanye-Stillwater shares on the Johannesburg Stock Exchange between the opening and closing of trading on Nov. 21, 2023.

Sibanye-Stillwater, a multinational precious metal mining company with operations in South Africa and involvement in gold and base metal mining projects in South Africa and the Americas, plays a pivotal role in the global precious metals industry.

Froneman — a driving force behind Sibanye-Stillwater’s transformation into a primary producer of platinum, palladium, and gold — holds a 0.3-percent stake in the precious metal mining group, equivalent to 8,382,849 ordinary shares.