Sibanye-Stillwater Acquisition of Lonmin Doesn’t Correct a Beleaguered Platinum Price

The Sibanye-Stillwater acquisition of struggling miner Lonmin may have also been perceived as supportive of the South African economy but doesn’t do much to correct a beleaguered platinum price. Lonmin had platinum sales of 706,000 ounces in fiscal 2017. The R5 billion all-share offer which was announced in December is expected to be completed in late-2018, making Sibanye the world’s third-largest platinum producer with group annual production of some 1.5 million ounces. Sibanye had previously purchased certain Rustenburg properties from Anglo, the mining operations of Aquarius Platinum and US palladium-producer Stillwater Mining.

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Also in this week’s Platinum Market Review:

-Palladium prices set a new 17-year high at $1,080 an ounce in the New Year...

-Platinum prices increased more than 6%

-Rhodium prices soared to a fresh six-year high

Click HERE to read the January 3, 2018 Platinum Market Review

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Material contained in this report is based upon publicly available market data believed to be accurate and reliable and is presented for informational purposes only. KMR assumes no warranty or liability for its completeness, nor guarantees future market performance. Further, KMR assumes no liability for direct or indirect loss or damage from the use of information contained in this report, or from any unforeseen errors or omissions.

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About the author

Patrick Magilligan

PGM sales veteran Pat Magilligan is the Director of PGM Marketing at Key Metal Refining LLC. Magilligan has over three decades of experience in commodities trading, sales, and research, working with the likes of Merrill Lynch, Prudential Securities, and A-1 Specialized Services & Supplies Inc.