Sibanye-Stillwater announced today that it will acquire Reldan, a US-based metals recycler, for around R4 billion ($211.5 million), making this its second acquisition outside the country in one month following restructuring at its South Africa operations.
The mining company informed shareholders that it had entered into a purchase agreement to acquire the Reldan Group of Companies.
The acquisition is being concluded at an enterprise value of $211.5 million (R3.94 billion), with a cash purchase consideration of $155.4 million (R2.89 billion).
The transaction is expected to close during the first quarter of 2024, the company said.
Reldan is a Pennsylvania-based recycling group which reprocesses various waste streams, including industrial waste and electronic waste to recycle green precious metals.
Sibanye said Reldan has a seasoned management team with over four decades of operational experience.
In addition to its US operations, Reldan has established a presence in Mexico and India, where it has forged strategic joint ventures with local partners.
For 2022, Reldan generated $371 million in revenue, $42 million in EBITDA, $39 million in earnings and $28 million in free cash flow.
“The acquisition of Reldan complements our US PGM recycling business in Montana and enhances our global exposure to the circular economy, providing a solid base for further expansion,” Sibanye said.
“Between Reldan – using gold equivalent ounces for silver – and the US PGM recycling business in Montana, around 170 koz of secondary gold and 400 to 450 koz of secondary PGM
production will be produced.”
Sibanye CEO Neal Froneman said, “The strategic acquisition of Reldan is a further pivotal step in our company’s commitment to sustainability and our journey toward net zero.”
“Reldan’s exceptional environmental, governance, and safety standards position them as an industry leader, providing us with an exemplary platform to amplify our recycling efforts.”
This announcement comes less than a month after the mining company announced it would acquire the Mt Lyell copper mine in Australia.
Sibanye recently informed shareholders that it had exercised the option to acquire the Mt Lyell copper mine in Tasmania, Australia, before its expiry on 5 November 2023.
Sibanye obtained the option to acquire 100% of Copper Mines of Tasmania for a consideration of $10 million (R187.23 million) from Vedanta Limited through its acquisition of New Century Resources Limited in 2021.
Mt Lyell is a previously operated underground copper mine with gold by-products that commenced production in 1894 and operated until it was put on care and maintenance in 2014.
These two acquisitions come shortly after the company announced retrenchments at four of its South African shafts.
Sibanye announced that it would enter into Section 189 consultations to retrench over 4,000 workers amid the company’s restructuring.
The company said that above-inflation increases in key cost components such as electricity, water, wages, and fuel, combined with the recent decline in PGM prices, have significantly impacted the global PGM industry’s profitability, including Sibanye’s South African operations.
It said certain operating shafts are now loss-making and pose a risk to the sustainability of the remaining operations.
Therefore, Sibanye will enter into discussions with organised labour and other affected non-unionised employees through their representatives regarding the possible restructuring of four shafts at its Southern Africa PGM operations.
The proposed restructuring and shaft closures could potentially affect 4,095 South African employees and contractors – 3,500 employees and 595 contractors – including support services employees.