In wrapping up its acquisition of US-based Metallix Refining, Sibanye-Stillwater marked a major step in its push to expand its global recycling and circular economy footprint.
The deal was completed on September 4 after all conditions were met, with the transaction finalised for a provisional equity cash purchase of $US78 million, bringing the total purchase consideration to $US129 million on a debt-free basis.
“The acquisition of Metallix strengthens and complements Sibanye-Stillwater’s existing US recycling operations and is expected to unlock significant value through cost and operational synergies across the combined businesses,” Sibanye-Stillwater said.
The final purchase price was slightly lower than the $US82 million initially discussed in July, a change attributed to working capital movements since the announcement.
Metallix specialises in the recovery of precious metals, a capability that dovetails with Sibanye-Stillwater’s growing recycling platform.
The deal is set to boost operational efficiencies, reduce costs, and extend Sibanye-Stillwater’s presence in the high-value metals recovery sector.
By bringing Metallix under its fold, Sibanye-Stillwater is expected to expand its global recycling reach and internal logistics capabilities, increase its ability to source materials from multiple regions, and enable the delivery of end-to-end solutions to customers.
“We are excited to be adding Metallix to our existing recycling footprint. The scale, technology and know-how adds positively to our existing recycling operations and advances our urban mining strategy,” Sibanye chief executive officer Neal Froneman said.
“We expect significant value uplift through the large number of synergies with our existing recycling operations.”
The acquisition is expected to enhance Sibanye’s US recycling operations in the states of Montana and Pennsylvania by providing processing capacity, proprietary technology and extensive knowledge and experience.
During the 12 months ending December 31, 2024, Metallix processed approximately 4200 pounds of precious metals bearing waste materials. It also produced approximately 21,000 ounces (oz) of gold, 874,000oz of silver, 48,000oz of palladium, 48,000oz of platinum, 4000oz of rhodium, 3000oz of iridium and 263 kilopounds of copper via its two processing and recycling operations in Greenville, North Carolina.