Sibanye-Stillwater expands reach with R1.4bn Metallix acquisition

Acquisition poised to strengthen Sibanye-Stillwater’s foothold in precious metals recycling market

- TAWANDA KAROMBO

SIBANYE-Stillwater has made a strategic move by acquiring Metallix Refinery, a US-based precious metals recycler, for an impressive $82 million (just above R1.4 billion).

This acquisition is poised to not only strengthen Sibanye-Stillwater's foothold in the precious metals recycling market but also to drive additional revenue worth approximately R4bn, bolstering its financial performance as it navigates the complexities of the current market.

Bruce Williamson, mining analyst at Integral Asset Management, told Business Report on Monday that at spot refined prices, revenues from Metallix’s financial year ending 31 December 2024 production would likely top R4.2bn, which would be fairly significant for Sibanye-Stillwater.

“I think that it is strategic for the dominant SA platinum group metals (PGM) miners to maintain control over the +-30% of recycled material (and moreover) SA PGM miners are part of a small number of PGM refineries. The other benefit is that recycling gives Sibanye-Stillwater an important insight into the scrapped auto market,” said Williamson.