SIBANYE-Stillwater, the gold and platinum mining firm criticised by investors following a spate of fatalities at its West Rand mines, and its high debt levels, was recognised for its “solid business profile” by Moody’s Investors Service which maintained its long term Ba2 rating on the stock.
Moody’s noted Sibanye-Stillwater’s “… solid business profile underpinned by diversified metal production revenues, as well as the company’s track record of setting and maintaining conservative financial policies,” according to an announcement by Sibanye-Stillwater on July 6.
Shares in Sibanye-Stillwater are down about 46% on a 12-month basis on concerns that lower production from its gold division in South Africa, partly a function of stoppages related to the fatalities, would result in slower-than-anticipated deleveraging of debt on its balance sheet.
The company is working on a metals streaming deal in which it hopes to raise about $500m to be allocated towards debt reduction. In terms of this arrangement, Sibanye-Stillwater will sell forward a portion of metals, normally by-products such as rhodium, from its platinum group metals producing mines.
