News Bureau

The largest PGM Transaction globally

According to the Sibanye Gold, following overwhelming approval from both Sibanye and Stillwater Mining Company shareholders at their respective General Meetings this week, it has successfully concluded the acquisition of Stillwater.

Stillwater, located in Montana in the United States, owns the highest grade Platinum Group Metals (PGM) mines in the world. In addition it is the lowest cost PGM producers in the world. This combination and the fact that it is the only primary palladium producer in the world, makes it unique and strategically positions Sibanye as a unique investment case.

Stillwater currently produces approximately 550,000 ounces of 2E PGM per annum (PGM split of approximately 78% Palladium and 22% Platinum) from two operating mines. The company is also developing a low risk organic growth project the Blitz project, which is expected to add between 270,000oz and 330,000 ounces 2E PGM per annum by 2021.

This is a substantial production increase of over 50%, which is fully funded from internal cash flow. Stillwater is also the biggest PGM recycling business in the world, recycling about 668,000 ounces of PGMs during 2016. This business will provide Sibanye with important strategic insights into the secondary PGM markets.

This transformative transaction uniquely positions Sibanye as a global precious metals company with a unique mix of commodities. Sibanye is now the third largest producer of palladium (and only primary producer of palladium) and the third largest producer of platinum in the world and also features in the top ten global gold companies.

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