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South African executive Neal Froneman, CEO of Sibanye Stillwater (Sibanye), has successfully led the multinational precious metal mining group to finalize the acquisition of Reldan, a US-based platinum group metal (PGM) recycling business, in a deal valued at $155.9 million.
The completion of the deal, which was initially announced in November 2023, will see Sibanye take over Reldan as part of its aggressive acquisition strategy to enhance shareholder value and expand its operational footprint. All conditions for the acquisition were concluded on March 15, 2024, with a final cash purchase consideration of $155.9 million.
Froneman, commenting on the latest development, highlighted the significance of embracing resource stewardship through secondary mining and recycling. He expressed confidence that the addition of Reldan, particularly during this opportune time in the recycling business cycle, would unlock substantial value for the group.
Strategic acquisition: Sibanye’s sustainability focus bolstered by Reldan deal
Reldan, known for its expertise in processing industrial and electronic waste, reported impressive financials for the 2022 fiscal year, producing 145,000 ounces of gold, along with significant quantities of palladium, platinum, and copper.
With revenue of $39 million and $28 million in free cash flow, Reldan’s commitment to responsible urban mining and sustainable waste management aligns closely with Sibanye’s ethos and business purpose. According to Froneman emphasizes that the acquisition aligns with Sibanye’s commitment to global sustainability and expanding in recycling.
The $155.9-million cash purchase consideration for Reldan was financed through a $500-million senior unsecured guaranteed convertible bond issued in November 2023. This bond carries a 4.25-percent annual coupon rate and matures in 2028, giving Sibanye the financial leeway for future strategic investments and expansion plans.
Navigating market challenges: Sibanye’s resilience amidst financial struggles
Under Froneman’s leadership, Sibanye has emerged as a top global player in precious metal mining, operating in South Africa and involved in projects across South America. Froneman’s strategic vision has propelled the company to become a leading producer of platinum, palladium, and gold.
Despite financial challenges in 2023, including a $2-billion net loss due to an impairment charge and falling metal prices, Sibanye Stillwater remains focused on diversification and resilience in the global metals market. The company’s emphasis on battery metals and cost-cutting measures reflects its commitment to navigating market fluctuations and ensuring long-term viability.
Looking forward, Sibanye aims to capitalize on its expanded portfolio, including the recent acquisition of Reldan, to drive innovation, improve efficiency, and deliver sustainable value to stakeholders. With ongoing projects like the lithium venture in Finland and plans for a new lithium mine in the United States, the company is poised for continued growth and success under Froneman’s leadership.
