Sibanye-Stillwater, a leading diversified miner, has announced the completion of its acquisition of the Reldan Group of Companies. This acquisition, finalized with a cash purchase consideration of $155.9 million, marks a significant milestone in Sibanye-Stillwater’s expansion strategy and its commitment to fostering sustainable practices within the sector.
The journey to this acquisition began in November 2023 when Sibanye entered into a purchase agreement with Reldan. The funding for this significant investment was sourced from the proceeds of a $500-million senior unsecured guaranteed convertible bond, which was issued in November 2023. This bond, set to mature in 2028, carries a yearly coupon of 4.25%, highlighting the financial prudence and strategic planning underpinning Sibanye-Stillwater’s growth initiatives.
Reldan, known for its innovative processing of industrial and electronic waste, aligns perfectly with Sibanye-Stillwater’s existing operations, particularly its US platinum group metals (PGM) recycling business based in Montana. This acquisition not only diversifies Sibanye’s portfolio but also significantly bolsters its position within the circular economy—a testament to the company’s forward-thinking approach to resource management and environmental stewardship.
In the financial year 2022, Reldan showcased its prowess in the recycling domain, producing notable quantities of precious metals including 145,000 ounces of gold, 19,000 ounces of silver, 22,000 ounces of palladium, 25,000 ounces of platinum, and 3.4 million pounds of copper. These impressive figures underscore the potential value Reldan brings to Sibanye-Stillwater’s operations, promising a lucrative future in the ever-evolving market of metal recycling.
Neal Froneman, CEO of Sibanye-Stillwater, expressed enthusiasm about the acquisition, stating, “We are embracing resource stewardship through secondary mining and recycling. The addition of Reldan, at an opportune time in the recycling business cycle, is set to unlock significant value for the group.” Froneman further highlighted Reldan’s commitment to responsible urban mining and sustainable waste management as key factors that resonate with Sibanye’s ethos, aligning closely with the company’s overarching mission to safeguard global sustainability through its metal production and recycling efforts.
This acquisition is more than just a business transaction; it represents a strategic partnership that merges Sibanye-Stillwater’s mining expertise with Reldan’s innovative recycling capabilities. Together, they stand at the forefront of promoting sustainable practices within the industry, setting a new standard for environmental responsibility and resource efficiency. As Sibanye-Stillwater integrates Reldan into its operations, the future looks promising for both companies and their stakeholders. This partnership not only signifies a pivotal advancement in Sibanye-Stillwater’s strategic objectives but also reaffirms its role as a leader in promoting sustainability and innovation within the global mining and recycling industries.
