Sibanye Stillwater bids for Aquarius Platinum

South African mining group Sibanye Stillwater announced on October 6, 2015, a recommended cash offer for the entire issued share capital of Aquarius Platinum. The offer is set at USD 0.195 per share, valuing the company at approximately USD 294 million.

The acquisition is seen as strategically and financially sound for Sibanye, particularly in conjunction with its recently announced agreement to acquire Anglo American Platinum's Rustenburg PGM operations. The company anticipates significant synergies and cost savings from combining these assets.

Aquarius Platinum holds stakes in the Kroondal mine and Platinum Mile retreatment facilities near Rustenburg, South Africa, and a joint venture with Mimosa in Zimbabwe. The board of directors of Aquarius has unanimously recommended that shareholders vote in favour of the offer.

According to Sibanye Stillwater CEO Neal Froneman, the acquisition aligns with the company's strategy to secure value-accretive, cash flow-enhancing opportunities that support its dividend policy. He highlighted the potential to unlock further value by optimizing regional and operational synergies between Aquarius' Kroondal mine and Sibanye's adjacent Rustenburg operations.

Aquarius Platinum is a significant producer of platinum group metals (PGMs), with attributable production of 349,426 oz of 4E PGMs for the financial year ended June 30, 2015. The transaction also provides Sibanye Stillwater with an entry into Zimbabwe, which holds the world's second-largest platinum reserves.