Stillwater Mining Company with headquarters in Columbus, Montana, announced last week that it has entered into an agreement with Sibanye Gold Limited, under which Sibanye will acquire Stillwater for $18.00 per share or a total value of $2.2 billion. Sibanye Gold Limited is a South African Company, and Stillwater Mining Co., is the only producer of platinum and palladium in the US.
Following a thorough review of Stillwater’s strategic opportunities, the company’s Board of Directors unanimously approved the transaction, which will close second quarter, 2017.
The $18.00 per share transaction price represents a 61% premium over Stillwater’s average sales price over the past 52 weeks – “a testament to the significant operational and productivity improvements that Stillwater has achieved over the past several years,” said Mic McMullen, CEO of Stillwater Mining Company.
McMullen said, “Sibanye has indicated its commitment to maintaining and investing in Stillwater’s Montana operations and will look to leverage our best practices, industry leading mining expertise and proven ability to drive improvements and efficiencies whilst improving safety across their entire business.”
The all-cash transaction will deliver “immediate value to shareholders and appropriately recognizes the value of Stillwater’s high-grade and long-life assets and world-class metallurgical and PGM recycling complex, as well as Stillwater’s potential for brown field expansions through the development of our Blitz and Lower East Boulder projects,” said McMullen.
Sibanye’s two largest shareholders, Gold One International Ltd. and Public Investment Corporation Ltd., which in aggregate represent 29% of Sibanye’s issued share capital, have confirmed their support of the Transaction.
Besides being the only U.S. miner of platinum group metals (PGMs), Stillwater is the largest primary producer of PGMs outside of South Africa and the Russian Federation. PGMs are rare precious metals used in a wide variety of applications, including automobile catalysts, fuel cells, hydrogen purification, electronics, jewelry, dentistry, medicine and coinage. The Company is engaged in the development, extraction and processing of PGMs from a geological formation in south-central Montana recognized as the J-M Reef. The J-M Reef is the only known significant source of PGMs in the U.S. and the highest-grade PGM resource known in the world. The Company also recycles PGMs from spent catalytic converters and other industrial sources. Stillwater owns the Marathon PGM-copper deposit in Ontario, Canada, and the Altar porphyry copper-gold deposit located in the San Juan province of Argentina. The Company’s shares are traded on the New York Stock Exchange under the symbol “SWC”.

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