Metals prepayment preparations permit miners to promote their future manufacturing in return for an upfront money cost.
The metals producer’s earnings tumbled $2 billion final 12 months as a consequence of decrease costs and after it wrote down $2.6 billion within the carrying worth of its US palladium mines, a nickel operation in France and a gold mine in South Africa.
Sibanye Stillwater CEO Neal Froneman mentioned in an announcement on Wednesday the prepayment deal was a “proactive, strategic financing various that improves the group’s liquidity and stability sheet”.
Sibanye mentioned it could ship 1,497 kg of gold in equal month-to-month tranches from October 2024 to November 2026 in return for the pay as you go money. The money will assist to repay the group’s loans, it mentioned.
The miner mentioned it had additionally reached an settlement to refinance and enhance its 5.5 billion rand revolving credit score facility with South African lenders, which was as a consequence of mature in November 2024.
Refinancing permits a borrower to exchange an present debt obligation with a brand new one on extra beneficial phrases.
The refinanced 6 billion rand facility will now mature in August 2027, with an choice to increase it by an additional two years, Sibanye mentioned.
($1 = 17.8542 rand)
(By Nelson Banya; Modifying by Emelia Sithole-Matarise)