Sibanye-Stillwater raises R1.7 billion in new share placement

The capital raised will enhance the flexibility of its balance sheet.

Diversified platinum group metals company Sibanye-Stillwater said it has raised R1.7 billion in an oversubscribed share placement, the company announced on Wednesday.

On Tuesday, Sibanye placed 108 932 356 new ordinary with existing and new institutional investors at a price of R15.50 per share, representing a two percent discount to the 30-day volume weighted average price on April 9.

The placement represents five percent of its issued shares.

The amount raised is slightly lower than its initial target of raising R1.8 billion as the company is in the throes of restructuring its gold mines.

“While we remain confident that the current operating and economic conditions will support our deleveraging plans during the course of the year, the enhanced balance sheet flexibility provided by this transaction, will ensure that the company is appropriately positioned and sufficiently robust to endure any exogenous socio-economic challenges,” said Neal Froneman (pictured), CEO of Sibanye-Stillwater, in a statement.

The company had net debt of R21.3 billion at the end of December 2018 and has extended the upper limits of its debt covenants to the end of 2019.

“It is pleasing to note the significant oversubscription of the transaction which is testament to the strong market support for our company,” he added.