Sibanye-Stillwater Finalizes $1.2 Billion Gold Prepayment Deal
South African mining company inks major deal to raise cash
Key Takeaways:
- Sibanye-Stillwater has finalized an 18 billion rand ($1.2 billion) gold prepayment deal.
- The company will deliver 1,497 kg of gold in monthly installments from October 2024 to November 2026.
- The prepayment will provide Sibanye-Stillwater with much-needed cash to fund its operations.
Sibanye-Stillwater, a South African mining company, has finalized an 18 billion rand ($1.2 billion) gold prepayment deal to raise cash. The company will deliver 1,497 kg of gold in equal monthly tranches from October 2024 to November 2026 in return for the prepaid funds.
The prepayment will provide Sibanye-Stillwater with much-needed cash to fund its operations. The company has been struggling with rising costs and declining gold prices in recent years. The prepayment will give Sibanye-Stillwater some financial flexibility to invest in new projects and expand its operations.
Sibanye-Stillwater is one of the world's largest gold producers. The company has operations in South Africa, the United States, and Canada. Sibanye-Stillwater also produces platinum, palladium, and rhodium.
The gold prepayment deal is the latest in a series of financial transactions that Sibanye-Stillwater has undertaken in recent years. In 2022, the company acquired Lonmin, a South African platinum producer, for $2.2 billion. Sibanye-Stillwater also raised $1 billion in a bond offering in 2021.
Sibanye-Stillwater's financial transactions are a sign of the company's commitment to growth. The company is investing heavily in its operations and expanding its portfolio of assets. Sibanye-Stillwater is well-positioned to benefit from a recovery in the gold price and continued demand for platinum and palladium.
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