Sibanye-Stillwater, the globally diversified precious metals miner, has recently made substantial additions to its transition metals portfolio. The company acquired Vedanta (NYSE:VEDL)'s Mt Lyell copper mine in Tasmania for $10 million via its recent acquisition of New Century Resources (NCR (NYSE:VYX)). Notably, the Mt Lyell mine holds a rich history, having produced copper and gold by-products since 1894. However, due to safety and environmental concerns, operations at the mine were suspended in 2014.
The company is currently evaluating the potential for a restart at the mine. CEO Neal Froneman indicated that Mt Lyell could be a source of low-cost copper, a critical element in the transition to clean energy. To facilitate this acquisition, Sibanye-Stillwater has restructured its internal financing related to NCR and provided loan funding and guarantees.
In addition to the Mt Lyell acquisition, Sibanye-Stillwater will also gain full ownership of the Kroondal platinum operation ahead of schedule. This follows their prior agreement to acquire Anglo American (JO:AGLJ) Platinum's 50% interest in this economically efficient mine, an initiative that is expected to extend the mine's productive life. As part of this arrangement, Sibanye-Stillwater has committed to taking on all liabilities, including responsibilities for rehabilitation.
InvestingPro Insights
Based on the valuable insights from InvestingPro, it's clear that Sibanye-Stillwater (SSWJ) is a prominent player in the Metals & Mining industry, which aligns with the company's recent acquisitions and strategic focus on transition metals.
InvestingPro data shows that SSWJ yields a high return on invested capital and trades at a low EBITDA valuation multiple, making it an attractive investment option. Despite a declining trend in earnings per share, SSWJ has been profitable over the last twelve months and is expected to remain profitable this year according to InvestingPro Tips.
Furthermore, the company's liquid assets exceed its short-term obligations, indicating strong financial health. This is particularly noteworthy given Sibanye-Stillwater's recent acquisitions and commitments to environmental responsibility and sustainable practices.
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