Sibanye-Stillwater gets cash upfront for gold

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Sibanye-Stillwater gets cash upfront for gold

Published Date: 2019-04-12 | Source: Stephen Gunnion | Author: Stephen Gunnion | Comments

Sibanye-Stillwater gets cash upfront for gold

Combined with this week's equity raise, the gold and platinum producer has access to about R10 billion of undrawn credit.

Sibanye-Stillwater has received $125 million in a forward gold sale arrangement with Citibank in exchange for the delivery of 105,906 ounces of gold during the fourth quarter of the year.

The approximately R1.75 billion cash prepayment comes on top of the R1.7 billion it raised in a share placement with institutional investors earlier this week as it builds a capital buffer to protect it from any unexpected events and ahead of wage negotiations in the SA platinum sector.

The arrangement is subject to a floor price of $1,200 per ounce for the gold and a cap price of $1,323. Gold traded around $1,293 yesterday.

The funding is expected to be accounted for as deferred revenue under IFRS accounting standards and will be used to pay down its revolving credit facility. It said the transaction complemented the equity raise and builds its liquidity to about R10 billion of undrawn facilities.

Its shares declined 1.1% to R13.84 yesterday.





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