Wrap Text
Sibanye-Stillwater retains favourable debt covenant for 2019
Sibanye Gold Limited
Trading as Sibanye-Stillwater
Incorporated in the Republic of South Africa
Registration number 2002/031431/06
Share code: SGL
ISIN – ZAE000173951
Issuer code: SGL
(“Sibanye-Stillwater” or “the Group” or “the Company”)
Sibanye-Stillwater retains favourable debt covenant for 2019
Johannesburg. 11 January 2019. Sibanye-Stillwater (Tickers JSE: SGL and NYSE: SBGL)
is pleased to report that all lenders of its US dollar and rand revolving credit
facilities (RCF), comprising 13 leading South African and international banks, have
agreed to retain the upper limit of the RCF, Net debt: Adjusted EBITDA* (ND:Adj
EBITDA) covenant at 3.5x, for a further 12 months (until 31 December 2019), and on
the same terms as the previous covenants. In terms of the previous covenants, the
ND:Adj. EBITDA limit on the RCFs was scheduled to step down from 3.5x to 2.5x from
31 December 2018.
The extension of the covenants at higher limits, will provide the Group with
additional flexibility during a period where the group expects more operational
stability and continuing value creation from the entry into the Platinum Group Metals
Sector. As per the strategic update issued yesterday, Group liquidity remains sound
following the early settlement of some of the long term debt during 2018, and with
the next major debt repayment only due in mid-2022.
Neal Froneman, CEO of Sibanye-Stillwater commented: “The extension of the existing
RCF covenant limits on the same terms as before, is a significant vote of confidence
in the fundamental outlook for the group by our 13 lending banks. The headroom
resulting from the extension provides sufficient financial flexibility and should
provide the market with additional confidence.”
* The Group reports adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA)
based on the formula included in the facility agreements for compliance with the debt covenant formula.
Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Adjusted EBITDA
is not a measure of performance under IFRS and should be considered in addition to and not as a
substitute for, other measures of financial performance and liquidity.
Ends.
Investor relations contact:
James Wellsted
Head of Investor Relations
+27 (0) 83 453 4014
Email: ir@sibanyestillwater.com
Sponsor: J.P. Morgan Equities South Africa Proprietary Limited
FORWARD LOOKING STATEMENTS
This announcement contains forward-looking statements, including “forward-looking
statements” within the meaning of Section 27A of the U.S. Securities Act of 1933 and the
“safe harbour” provisions of the United States Private Securities Litigation Reform Act of
1995. Forward-looking statements may be identified by the use of words such as “target”,
“will”, “would”, “expect”, “can”, “unlikely”, “could” and other similar expressions that
predict or indicate future events or trends or that are not statements of historical matters.
These forward-looking statements, including among others, those relating to our future
business prospects, financial positions, debt position and our ability to reduce debt
leverage, plans and objectives of management for future operations, plans to raise capital
through streaming arrangements or pipeline financing, our ability to service our Bond
Instruments (High Yield Bonds and Convertible Bonds), our ability to achieve steady state
production at the Blitz project and the anticipated benefits and synergies of our acquisitions
are necessarily estimates reflecting the best judgement of our senior management and involve
a number of known and unknown risks, uncertainties and other factors, many of which are
difficult to predict and generally beyond the control of Sibanye-Stillwater, that could cause
Sibanye-Stillwater’s actual results and outcomes to be materially different from historical
results or from any future results expressed or implied by such forward-looking statements.
As a consequence, these forward-looking statements should be considered in light of various
important factors, including those set forth in the Group’s Annual Integrated Report and
Annual Financial Report, published on 2 April 2018, and the Group’s Annual Report on Form
20-F filed by Sibanye-Stillwater with the Securities and Exchange Commission on 2 April 2018
(SEC File no. 001-35785). These forward-looking statements speak only as of the date of this
announcement. Sibanye-Stillwater undertakes no obligation to update publicly or release any
revisions to these forward-looking statements to reflect events or circumstances after the
date of this announcement or to reflect the occurrence of unanticipated events, save as
required by applicable law.
Date: 11/01/2019 10:14:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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