Listing of Sedibelo Platinum Mines back on the radar after shareholder stake simplified

THE listing of Sedibelo Platinum Mines (SPM) is back on the radar after one of its shareholders, Gemfields, simplified the structure through which it held shares in SPM. The platinum group metal (PGM) firm could go public this year.

Gemfields, the UK-listed ruby and emerald miner and marketing firm, said in an announcement today it now held a 6.54% direct stake in SPM which it wanted to sell. It asked interested parties to contact its financial advisor, Liberum Capital.

Arne Frandsen, chairman of SPM, said in December 2020 that the company was expanding and was consequently interested in a listing, especially as PGM prices were improving. However, the complicated nature of Gemfields stake had to be clarified first.

Gemfields held its stake in SPM through Pallinghurst Ivy Lane Capital which had a 27.64% stake in SPM. The critical development is that Pallinghurst Ivy Lane Capital’s stake has now been unbundled therefore accounting for Gemfields direct stake.

SM sold 128,800 4E PGM ounces consisting of platinum, palladium, rhodium and gold and generated earnings before interest, tax, depreciation and amortisation of about $113m in its financial year ended December 31.

“Gemfields understands that SPM is planning an IPO in 2022,” the company said. “As previously announced, SPM is not considered a core part of Gemfields’ strategy. Gemfields invites interested parties to contact Liberum Capital Limited, who have been appointed by Gemfields to manage an orderly disposal of Gemfields’ SPM shares,” it said.