Multinational precious metal mining company Sibanye-Stillwater, under the leadership of South African magnate Neal Froneman, is deliberating a potential $500-million funding endeavor through metals streaming and prepayment arrangements.
Speaking exclusively to Reuters during a platinum mining conference in Johannesburg, Froneman, the CEO of Sibanye-Stillwater unveiled the company’s strategic move to reinforce its cash reserves, despite the current positive trajectory of metal prices and market sentiment.
Metals streaming, which involves the forward sale of future metals production in exchange for an immediate cash infusion, is being considered by the company. Froneman emphasized that while they are exploring the market, the decision to raise funds is not yet final but is ideally aimed at the $500-million mark.Â
Froneman underscored the importance of fortifying liquidity buffers to mitigate potential downturns. He explicitly ruled out equity issuance as a means of capital procurement.
Sibanye-Stillwater eyes acquisitions for growth
Sibanye-Stillwater, headquartered in Johannesburg, suffered a $2-billion loss in 2023, weighed down by weak metal prices and a further $2.52-billion impairment charge. The writedowns primarily stemmed from the company’s palladium mines in the United States, its nickel venture in France, and a South African gold operation.
Despite the headwinds, CEO Neal Froneman has steered Sibanye-Stillwater to become a global leader in precious metals. The company boasts operations across South Africa and various projects in South America, solidifying its position as a top producer of platinum, palladium, and gold.
In a separate development, Sibanye-Stillwater closed its previously announced $155.9-million acquisition of U.S.-based Reldan Metals, underscoring Froneman’s aggressive growth strategy. The deal is expected to boost shareholder value and broaden the company’s operational footprint.
Through its expansion into Australia, Europe, and the United States, Sibanye-Stillwater has transcended its South African roots, evolving from a gold and platinum miner into a diversified mining group. Froneman emphasized the success of restructuring initiatives at the company’s South African mines, which included targeted workforce reductions.
