Sibanye-Stillwater seals R1.45 billion deal to buy U.S-based Metallix

Stephen Grootes speaks to Peter Major, director of mining at Modern Corporate Solutions about Sibanye-Stillwater’s R1.45 billion deal to buy US-based Metallix.

Listen to the interview in the audio player below.

Confirmation coming through on Monday morning from Sibanye-Stillwater that it's acquired U.S-based Metallix for around R1.45 billion.

Sibanye-Stillwater, one of the world’s largest platinum producers explained that the acquisition will complement its existing US recycling operations.

Metallix produces recycled precious metals, including gold, silver and platinum group metals from industrial wasre streams in North Carolina.

Speaking to Stephen Grootes on The Money Show, Peter Major, director of mining at Modern Corporate Solutions says the move aims to boost Sibanye-Stillwater's U.S recycling operations by adding a long-established precious metals recycler to its portfolio.

"At least they're buying something that's very similar to something they already have. They already have a big PGM recycling business, so there will be synergies there. They don't have to use smoke and mirrors to justify it"

- Peter Major, director of mining - Modern Corporate

"I don't know how much of this is paid in cash or shares, but it's still a chunk of money. It says it's paid in cash, but when your share price has gone up, three-fold in the last six months, it's not hard to raise tht kind of cash."

- Peter Major, director of mining - Modern Corporate

"The fact that they've got the PGM metal price, all of them turning now and going in their favour for the last few months, it's really given a great supercharge to the share, to the company.

- Peter Major, director of mining - Modern Corporate

Scroll to the top of the article to listen to the interview.