Sibanye-Stillwater Shares Hit 3-Year Low After Bond Offering, Platinum Report
By Dean Seal
Sibanye-Stillwater's American depositary shares hit a three-year low following the company's launch of a $500 million bond offering and a report on challenges in the platinum market next year.
The stock fell 23% to a low of $4 in early trading. Shares haven't traded this low since the spring of 2020.
The South African platinum miner disclosed early Tuesday that it has launched an offering of $500 million in senior, unsecured convertible bonds due November 2028 and convertible into Sibanye-Stillwater shares.
The proceeds of the offering will be used to preserve the company's balance sheet while accelerating growth, in part by funding the acquisition of U.S. metals recycler Reldan. Sibanye-Stillwater said earlier this month that it would acquire Reldan with a cash purchase consideration of $155.4 million.
The Wall Street Journal also reported Tuesday morning that the platinum market is likely to record its second consecutive year of deficit in 2024 amid strained supply from the mining sector, citing a new report from the World Platinum Investment Council.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
November 21, 2023 11:20 ET (16:20 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
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