Sibanye-Stillwater Secures R6bn Credit Facility and Gold Prepay Deal
Sibanye-Stillwater has refinanced its rand revolving credit facility (RCF), increasing it to R6 billion, and secured R1.8 billion through a gold prepay arrangement to enhance its financial position.
CEO Neal Froneman described the gold prepayment as a “proactive, strategic financing alternative” that boosts liquidity while maintaining exposure to potential gold price increases.
The RCF refinancing, which includes an option to expand by an additional R1 billion, signals strong support from South African lenders.
These measures follow June’s agreement to adjust debt covenants, allowing the company to carry net debt up to 3.5 times its adjusted EBITDA.
The gold prepayment involves the delivery of 1,497 kg of gold between October 2024 and November 2026, with a floor price of R1.35 million per kg and a cap of R1.736 million per kg.
The current gold price is approximately R1.4 million per kg. The RCF has a three-year maturity, with options for two additional one-year extensions, and an interest margin tied to leverage.
