South Africa’s Sibanye-Stillwater (JSE: SSW) (NYSE: SBSW) has announced the acquisition of Metallix Refining, a prominent US-based precious metals recycler, for a sum of $82 million. This strategic acquisition, set to be finalised in the September quarter, marks a pivotal step in Sibanye’s ongoing expansion into the recycling sector.
Metallix, renowned for its recovery of gold, silver, and platinum group metals (PGMs) from industrial waste, has operations including two processing and recycling plants located in North Carolina. Last year alone, the company made a remarkable contribution to the metals market, producing 21,000 ounces of gold, 874,000 ounces of silver, and a combined total of 103,000 ounces of palladium and platinum, alongside other valuable metals such as rhodium, iridium, and copper.
This acquisition is positioned to augment Sibanye’s existing operations in the United States, specifically in Montana and Pennsylvania. According to Sibanye-Stillwater Chief Executive Officer, Neal Froneman, integrating Metallix’s proprietary technology, additional processing capacity, and technical expertise is expected to significantly elevate the company’s operations.
“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,” Froneman stated in a news release. He also highlighted the potential for the acquisition to unlock “significant value” through synergies with their current operations.
Investors have reacted positively to the announcement, with shares in Sibanye-Stillwater witnessing a rise of more than 5% mid-morning in New York, pushing the stock to $9.57. This increase elevates the company’s market capitalisation to an impressive $6.8 billion, signalling market confidence in Sibanye’s strategic direction.
The acquisition of Metallix is a continuation of Sibanye’s strategic push into the recycling domain, further solidified by its earlier acquisition of the Reldan Group earlier this year. The move underscores Sibanye’s commitment to enhancing its footprint in urban mining and valuable metal recovery processes, shifting from traditional mining to more sustainable and technologically advanced operations.