Sibanye-Stillwater completes R1.4bn acquisition of Metallix Refining

Sibanye-Stillwater has successfully completed the acquisition of Metallix Refining, marking a significant milestone in the company’s expansion of its recycling operations in the United States.

Originally announced in July, the deal was finalised last week with the provisional equity cash purchase consideration set at $78 million (around R1.4 billion). The total purchase, which is arranged on a debt-free basis, amounts to $129m.

The acquisition is poised to enhance Sibanye-Stillwater’s existing recycling framework in the US, and is expected to create considerable value through cost and operational synergies across both businesses.

By integrating Metallix Refining’s capabilities, Sibanye-Stillwater aims to bolster its position in the recycling sector, leveraging the combined expertise to drive operational efficiencies and increase profitability.

Sibanye-Stillwater described Metallix as a firm that produces recycled precious metals, including gold, silver and PGM, primarily from industrial waste streams. 

The company operates two processing and recycling operations in Greenville, North Carolina and has a global customer base, which it services from the United Kingdom and South Korea, in addition to those in the US.

Sibanye-Stillwater’s strategic focus on recycling aligns with its commitment to sustainable practices and responsible resource management.

This acquisition not only strengthens the company’s operational footprint, but it also reflects a growing trend in the industry towards more sustainable operations amid increasing demand for recycled materials.

Many analysts have noted that the synergies expected from this acquisition could translate into substantial long-term financial benefits, enabling Sibanye-Stillwater to remain competitive in the ever-evolving commodities market.

As global demand for recycled precious metals rises, the integration of Metallix Refining presents an opportunity for enhanced revenue streams and a more environmentally-friendly business model.

The completion of this acquisition signifies Sibanye-Stillwater’s proactive approach to expanding its operations and asserting its leadership in the recycling sector. The company is now well-positioned to capitalise on new opportunities while contributing to a more sustainable future.

BUSINESS REPORT