Sibanye issued the convertible bonds final November, partly to fund the $156 million acquisition of a US-based recycling enterprise in addition to to enhance the corporate’s liquidity.
The vote to transform the bonds means Sibanye will challenge as much as 524 million new shares, equal to about 19% of the shares at the moment in challenge, the corporate mentioned forward of the vote.
A pointy decline in platinum group metallic (PGM) costs has harm Sibanye, leading to adjusted earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) plunging 72% to 2.137 billion rand within the quarter to March 31, from 7.755 billion rand final yr.
The miner slumped to a $2 billion loss within the full yr to December 2023.
On Might 10, CEO Neal Froneman mentioned declining earnings might affect Sibanye’s debt covenants – formal agreements between a borrowing firm and its lenders that the corporate will function inside sure limits.
The corporate, which has diversified past PGMs and gold into battery minerals lithium, nickel and zinc property in the USA, Finland, France and Australia is negotiating a short lived leisure of the borrowing restrictions with lenders.
(By Eva Mathews, Anandita Mehrotra and Nelson Banya; Modifying by Tasim Zahid, Invoice Berkrot and Susan Fenton)