Sibanye/Stillwater acquisition deal concluded
Stillwater, located in Montana in the United States, produces high-grade platinum group metals (PGM), and is the lowest cost PGM producer in the world (on an all-in sustaining cost basis which includes sustaining capital expenditure requirements).
“This combination and the fact that it is the only primary palladium producer in the world, makes it unique and strategically positions Sibanye as a unique investment case. Stillwater currently produces approximately 550,000 ounces of 2E PGM per annum (PGM split of approximately 78% palladium and 22% platinum) from two operating mines. The company is also developing a low-risk organic growth project, Blitz, which is expected to add between 270,000oz and 330,000 ounces 2E PGM per annum by 2021. This is a substantial production increase of over 50%, which is fully funded from internal cash flow.
Stillwater also recycles about 668,000 ounces of PGMs during 2016. This business will provide Sibanye with important strategic insights into the secondary PGM markets.
“We are very pleased to add Stillwater into the Sibanye Group, thereby creating a unique, high quality, global precious metals company. We look forward to integrating Stillwater into Sibanye and are confident that this transaction will realise significant value for Sibanye shareholders and its other stakeholders for many years,” said Neal Froneman, CEO: Sibanye.