Sibanye settles Marikana streaming deal
Dual-listed Sibanye-Stillwater’s subsidiaries, Western Platinum, Eastern Platinum and Lonmin – collectively known as the Marikana operations – have entered into a release and cancellation agreement with RFW Lonmin Investments regarding the early settlement of a prior streaming agreement.
The long-term streaming facility, which is valued at $81-million, was settled by a cash payment of $50-million, funded through a new short-term platinum prepay facility secured from Merrill Lynch International.
Sibanye on Wednesday noted that the transaction would “extinguish a high-cost, secured, long-term financing instrument, and replace it with a significantly lower-cost, unsecured, short-term facility”.
This would provide operational flexibility for the Marikana operations while enabling the immediate sale of uncommitted palladium and rhodium metals to realise “optimal pricing opportunities”.
The early settlement has been financed using a forward platinum group metals sale agreement with Merrill Lynch whereby Western Platinum would receive a prepayment amount of $50-million, or about R764-million, in exchange for delivering 72 886 oz of platinum between June and December this year.
The funding is expected to be accounted for as deferred revenue.
The delivery obligation amounts to about 10% of Western Platinum’s, and 3% of the Sibanye Group’s planned 2020 platinum, palladium, rhodium and gold production.
The early settlement extinguishes Western Platinum’s commitment to deliver about 62 000 oz of platinum, palladium, rhodium, iridium, ruthenium and gold over the next six years, at an estimated price of about $255/oz.
The prepay facility is only linked to platinum, and the Marikana operations are released of all security obligations to RFW.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...
VISIT SHOWROOM
For over 30 years, Werner South Africa Pumps & Equipment (PTY) LTD has been designing, manufacturing, supplying and maintaining specialist...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
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?
Receive 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)
➕
Recieve 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
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
