The Boards of Sibanye-Stillwater and Lonmin have announced that they have reached agreement on the terms of a recommended all-share offer pursuant to which Sibanye-Stillwater, and/or a wholly-owned subsidiary of Sibanye-Stillwater, will acquire the entire issued and to be issued ordinary share capital of Lonmin. The Lonmin Group is major mine-to-market producer of PGMs with core operations in South Africa.

In line with the Sibanye-Stillwater Group’s strategy to grow its precious metals business by enhancing and sustaining its position as a sustainable, strong dividend-paying company, the Sibanye-Stillwater Group has completed three separate transactions to build its PGM operations and capabilities, specifically via acquisitions of the platinum assets of the Rustenburg Operations and Aquarius Platinum in 2016 and Stillwater in 2017.

Sibanye-Stillwater has developed a conservative Lonmin operating plan, which is not contingent on the development of new major capital projects and therefore limits downside risk while providing full upside optionality in a higher South African Rand PGM price environment.