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Sibanye Stillwater (NYSE:SBSW) may close a metals streaming deal during Q3 that would raise cash to help boost its balance sheet, CEO Neal Froneman said Tuesday.
Potential financiers are conducting due diligence at Sibanye (SBSW), Froneman told Reuters at a mining conference in London.
“We’ve got a number of parties on site doing due diligence so I’m confident within the third quarter we’ll certainly be able to complete that process,” Froneman said.
The South African miner is seeking to raise more than $500M to shore up its balance after earnings plunged due to a rout in prices for platinum group metals.
Sibanye (SBSW) “isn’t short of money,” and has roughly six months of working capital, but earnings are under pressure from weak metal prices and spending on its Keliber lithium project in Finland, which Froneman said will continue to advance despite falling lithium prices.
Earlier this month, the company won some breathing space for its balance sheet after lenders of its revolving credit facilities agreed to raise leverage covenant limits for all facilities.