https://www.engineeringnews.co.za
Flow|Gold|Infrastructure|Platinum|PROJECT|Surface|Underground|Flow|Infrastructure|Operations
Flow|Gold|Infrastructure|Platinum|PROJECT|Surface|Underground|Flow|Infrastructure|Operations
flow-company|gold|infrastructure|platinum|project|surface|underground|flow-industry-term|infrastructure|operations

Sibanye enters into $500m streaming deal with Wheaton International

16th July 2018

By: Anine Kilian

Contributing Editor Online

     

Font size: - +

JOHANNESBURG (miningweekly.com) – JSE-listed Sibanye-Stillwater has raised $500-million in a streaming deal with Wheaton Precious Metals International.

The agreement provides Sibanye-Stillwater with a long-term funding instrument that is linked to the operational performance of its US platinum-group metals operations, namely the Stillwater and East Boulder operations, and to the performance of the underlying commodities.

Sibanye’s obligations under the stream are limited to the delivery of a percentage of actual production, without repayment of the $500-million under any circumstances, and without minimum deliveries.

This introduces a funding instrument with limited obligations, minimising any potential for default.

The effective streaming date is July 1.

The agreement stipulates that Sibanye will sell to Wheaton all of the gold produced at Sibanye’s East Boulder and Stillwater mines for the life of their operations.

In addition, it will also get a percentage of the palladium produced at the mines, which will be staggered based on certain milestones, moving from 4.5% to 2.5%, and 1% for the life of the operations.

Wheaton will pay Sibanye 18% of the market price of palladium and gold for each ounce of metal delivered up to the advanced amount.

After that, it will pay 22% of the market palladium and gold price for each ounce of metals.

The stream includes a completion test on the development of the Blitz project, including completion of underground development, critical surface infrastructure and expansion of the concentrator production output. 

“The transaction results in a significant reduction in group leverage, improving flexibility and reducing financing costs and risk,” CEO Neal Froneman said in a statement.

The transaction crystalises significant value from gold by-product production from the US PGM operations, reducing the amount of primary PGM production required to raise the advance amount.

Gold production over the life-of-mine plan represents about 43% of the stream value, while palladium contributes the remaining 57% of the stream value.

Platinum production is excluded from the streaming agreement.

“Stillwater is another accretive addition to Wheaton's portfolio of assets that is expected to contribute both production and cash flow for decades to come," commented Wheaton president and CEO Randy Smallwood.

Edited by Creamer Media Reporter

Comments

Showroom

John Thompson
John Thompson

John Thompson, the leader in energy and environmental solutions through value engineering and innovation, provides the following: design, engineer,...

VISIT SHOWROOM 
AutoX
AutoX

We are dedicated to business excellence and innovation.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.102 0.159s - 164pq - 2rq
Subscribe Now