JSE- and NYSE-listed precious metals miner Sibanye-Stillwater has concluded its gold and palladium stream agreement with Wheaton Precious Metals International.
Sibanye has received $500-million from Wheaton in exchange for an amount of gold and palladium equal to a percentage of gold and palladium produced from Sibanye’s US platinum group metals operations.
The amount arising from the transaction is competitively priced relative to existing Sibanye debt and alternative financing available in international capital markets.
The $500-million payment reduces Sibanye’s leverage, decreasing the net debt to earnings before interest, taxes, depreciation and amortisation ratio by between 0.6 and 0.7 times.
This ensures a Sibanye leverage ratio which is well below current and future covenant levels and facilitates a reduction in group financing costs.