Archive | Platinum Group Metals

NEWS RELEASE: North American Palladium and Impala Platinum Announce Completion of Arrangement and Creation of Impala Canada

TORONTO, Dec. 13, 2019 (GLOBE NEWSWIRE) — North American Palladium Ltd. (“NAP” or the “Company”) (TSX:PDL) (OTC PINK:PALDF) is pleased to announce the successful completion of its previously announced plan of arrangement under the Canada Business Corporations Act (the “Arrangement”) with Impala Platinum Holdings Limited (“Implats”). Pursuant to the Arrangement, Implats has acquired 100% of the outstanding common shares of the Company for a total cash consideration of approximately C$1.0 billion.

Upon completion of the Arrangement, NAP became a wholly-owned subsidiary of Implats. With the acquisition of NAP, Implats has strengthened its competitive position by adding the Lac des Iles Mine to its asset portfolio. The low-cost Lac des Iles Mine immediately boosts Implats’ value and strengthens cash flow to advance its journey toward delivering sustainable shareholder returns. It also diversifies the group’s production base with a palladium-rich operation in an established, low-risk mining jurisdiction. Going forward, NAP will operate in Canada under the name Impala Canada Ltd. (“Impala Canada”).

“Impala Canada will accelerate our progress against a number of key strategic imperatives,” stated Nico Muller, CEO and Executive Director of Implats. “The acquisition is an important development in the evolution of the Implats Group into a sustainable PGM producer. Continue Reading →

Palladium Tops $1,900 as South Africa Power Cuts Fuel Supply Woe – by Elena Mazneva and Justina Vasquez (Bloomberg/Yahoo – December 10, 2019)

https://finance.yahoo.com/

(Bloomberg) Palladium surged to a record, topping $1,900 an ounce, after South African mining companies halted operations in response to the country’s power cuts. Platinum also rose.

South Africa, the world’s biggest producer of platinum and No. 2 palladium supplier, faced a sixth day of rolling blackouts Tuesday. State utility Eskom Holdings SOC Ltd. is struggling with breakdowns at plants and heavy rains that have soaked coal used as fuel.

“Tight supply that potentially could get even tighter due to production problems in South Africa helps provide the underlying support,” said Ole Hansen, head of commodity strategy at Saxo Bank A/S. Continue Reading →

South Africa’s platinum mining firms, top union end ‘titanic battle’ as they seal wage deal – by Helen Reid (Reuters U.S. – November 15, 2019)

https://www.reuters.com/

JOHANNESBURG (Reuters) – South Africa’s biggest platinum mining union sealed three-year wage hike agreements with Anglo American Platinum, Impala Platinum, and Sibanye-Stillwater on Friday, ending months of negotiation over pay.

The deal comes as a relief to the sector, where officials were fearful of a repeat of a five-month platinum strike in 2014-2015 which crippled production and hurt the economy.

The mood was celebratory as the Association of Mineworkers and Construction Union (AMCU) signed deals which union president Joseph Mathunjwa said increased workers’ monthly wages by at least 1,000 rand ($67.19). Continue Reading →

Precious metal prices drive northwest mining activity – by Ian Ross (Northern Ontario Business – November 12, 2019)

https://www.northernontariobusiness.com/

Soaring gold and platinum prices continue to build the economic case for mine development activity in northwestern Ontario and for a global player to make its entry into the region.

With gold hovering between $1,500 and $1,520 per ounce this fall and palladium surging to $1,800 per ounce in early November, John Mason, project manager of mining services for the Thunder Bay Community Economic Development Commission (CEDC) expects to see more interest in precious and base metal properties in the region.

The big news in September was the acquisition of North American Palladium (NAP) by South African base metal heavyweight Impala Platinum Holdings in a $1-billion share and cash deal. Shareholder approval could come by early December. Continue Reading →

Impala’s Zimbabwe Mine Is Said to Be in Talks on Amplats Land – by Godfrey Marawanyika and Brian Latham (Bloomberg News – November 11, 2019)

https://www.bnnbloomberg.ca/

(Bloomberg) Impala Platinum Holdings Ltd. is in talks to buy land in Zimbabwe from rival Anglo American Platinum Ltd. as the world’s second-biggest producer of the precious metal seeks to boost output from the southern African country, according to people familiar with the negotiations.

The purchase of the claims by the Mimosa mine, which is jointly owned by Impala and Sibanye Gold Ltd., could be finalized by the end pf the year, according to the people who asked not to be identified because the discussions aren’t public.

Impala and Amplats mine most of their platinum group metals in neighboring South Africa, which has the world’s biggest reserves of platinum. But Zimbabwe’s deposits, second only to South Africa’s, are shallower and therefore cheaper to mine. Continue Reading →

Sibanye Gold CEO Says New York Listing Possible in 2021 – by Felix Njini (Yahoo Finance/Bloomberg – October 29, 2019)

https://ca.finance.yahoo.com/

(Bloomberg) – Sibanye Gold Ltd. Chief Executive Officer Neal Froneman is considering moving the South African miner’s primary listing to New York from 2021, after he curbs the company’s debt.

The surge in palladium and rhodium prices has put Sibanye on track to meet its debt-to-earnings target by the end of 2020, Froneman said in an interview at Bloomberg’s office in Johannesburg on Friday. While the rally has strengthened South Africa’s platinum industry, power and water shortages, rising crime and onerous regulations are deterring investment, the CEO said.

The plan to move Sibanye’s primary listing isn’t immediate and could still be two years out, after the company has sufficiently paid down its debt. The move is driven by commercial considerations and shouldn’t be construed as leaving South Africa, where some of Sibanye’s platinum mines could operate for more than 40 years, Froneman said. Continue Reading →

Zimbabwe Unveils Plan for $12 Billion in Mineral Revenue by 2023 – by Godfrey Marawanyika (Bloomberg News – October 14, 2019)

https://www.bloomberg.com/

Zimbabwe is targeting a fourfold increase in revenue from minerals by 2023 but an ambitious plan unveiled by Mines Minister Winston Chitando on Monday gave little detail on how the government would achieve this.

The policy document, known as the Strategic Road to the Achievement of US$12 Billion By 2023, sees gold exports at $4 billion and platinum at $3 billion as the government focuses on “value addition, enhanced investment within the sector, increased productivity and employment creation and increased exports and foreign-currency generation.”

However, the document makes no mention of an eagerly awaited overhaul of the country’s mining legislation that would be crucial in attracting foreign investment to the industry. Continue Reading →

Hunt for Palladium Riches Sends South African Miners Abroad – by Felix Njini (Bloomberg News – October 8, 2019)

https://finance.yahoo.com/

(Bloomberg) — Southern Africa is home to the world’s richest platinum deposits, but when Impala Platinum Holdings Ltd. pondered how to invest its windfall profits it chose North America instead.

The acquisition of North American Palladium Ltd. is partly a bet on platinum’s sister metal palladium continuing to rally, while Implats Chief Executive Officer Nico Muller has also stressed the appeal of a relatively quick payback from low-cost, mechanized assets. However, the deal is also a geopolitical play as the Johannesburg-based miner seeks to balance exposure to its more volatile home region.

“The diversification into North America provides a hedge against some of the socio-economic, political and structural risks the company faces in South Africa and Zimbabwe,” said Christopher Nicholson, an analyst at RMB Morgan Stanley. Continue Reading →

Brookfield unit to sell North American Palladium in $1-billion deal – by Niall McGee and David Milstead (Globe and Mail – October 8, 2019)

https://www.theglobeandmail.com/

Canadian palladium miner North American Palladium Ltd. agreed to a $1-billion takeover in an unusual deal that sees its biggest shareholder, Brookfield Business Partners LP, accept a discount in order to get the transaction done.

Toronto-based North American Palladium said Monday that it had reached a friendly agreement with South Africa’s Impala Platinum Holdings Ltd. Public shareholders of North American Palladium will get $19.74 a share, exactly the level the shares closed at on Friday. Brookfield Business Partners and the institutions that invested alongside it, however, will receive only $16 a share for the 81-per-cent stake they hold – a 19-per-cent discount.

Brookfield appears eager to lock in its gains from a turnaround at the mining company and strong prices for the metal, which is used in vehicles to minimize toxic emissions. Takeover talks with Impala intensified in July and shares in North American Palladium ran up by 35 per cent over the next few months. Continue Reading →

[North American Palladium] With palladium rising to record highs, a $1-billion deal for a darling of the Canadian exchange – by Gabriel Friedman (Financial Post – October 8, 2019)

https://business.financialpost.com/

Toronto-based North American Palladium on Monday presented shareholders with a $1 billion buyout proposal from a larger South African rival just as its namesake metal touches record high prices.

Under the deal, Johannesburg-based Impala Platinum Holdings Ltd. struck an agreement to pay the private equity firm Brookfield Business Partners $570 million for its 81 per cent stake in the company, or $16 per share.

Meanwhile, it is offering $19.74 per share to minority shareholders, which the company called a 15 per cent premium on the 30-day weighted average price, but was exactly the price the stock closed at on Friday. Continue Reading →

South Africa’s Impala to buy North American Palladium for about $750 million – by Tanisha Heiberg (Reuters U.S. – October 7, 2019)

https://www.reuters.com/

(Reuters) – South Africa’s Impala Platinum Holdings Ltd (Implats) (IMPJ.J) said on Monday it would buy Canada-based North American Palladium Ltd (PDL.TO) for about C$1 billion ($751.77 million), marking the miner’s first purchase outside of Africa.

Prices for Palladium XPD=, widely used in vehicle exhausts to reduce harmful emissions, have doubled from a low in August last year as tighter environmental regulations force carmakers to buy more of the precious metal.

“(The acquisition) not only signals our confidence in the prevailing platinum group metals (PGM) market but it also expedites our transition to a high-level multinational producer,” Implats Chief Executive Officer Nick Muller said on a media call. Continue Reading →

Sibanye plans to cut over 5,000 jobs in Marikana restructuring (Reuters U.S. – September 25, 2019)

https://www.reuters.com/

JOHANNESBURG (Reuters) – South African miner Sibanye-Stillwater (SGLJ.J) said on Wednesday it planned to cut around 5,270 jobs, or about 6% of its workforce, as it restructures its loss-making Marikana operations that it acquired this year.

Sibanye said the restructuring was aimed at returning the mine to profit and protecting its remaining shafts, driving its share price up 6% to 21.28 rand.

Sibanye took over the mine as part of a deal to buy out struggling platinum miner Lonmin. It first proposed buying Lonmin in 2017, in a deal touted as the only way to save its 29,000-strong workforce. Lonmin had previously planned to close shafts and cut around 12,600 jobs. Continue Reading →

Platinum giant wants to create new battery to replace cobalt, nickel demand – by Rupert Rowling and Felix Njini (Bloomberg News – August 14, 2019)

https://www.bnnbloomberg.ca/

LONDON/JOHANNESBURG — The world’s top platinum and palladium supplier has an answer to the electric-car boom that may pose a long-term threat to its biggest market: invent a new battery.

Anglo American Platinum wants to develop a lithium battery that uses platinum-group metals instead of cobalt and nickel. The aim is to create a new multi-billion dollar source of demand for the metals as electric vehicles reduce the need for traditional fuel autocatalysts.

Platinum miners have good reason to be worried. Electric-car sales are forecast to reach 56 million by 2040, making up about 57 percent of the overall car market versus 2 percent now, according to Bloomberg. Continue Reading →

Platinum Giants Bolster Positions Before Wage Talks Begin – by Felix Njini (Bloomberg/Yahoo – July 8, 2019)

https://ca.finance.yahoo.com/

(Bloomberg) — When the world’s biggest platinum miners sit down to hammer out a wage deal with one of South Africa’s most militant labor unions this week, they’ll hold two potentially winning cards in reserve: the cash and metal stockpiles to endure a strike.

Those buffers may prove crucial as Anglo American Platinum Ltd., Impala Platinum Holdings Ltd. and Sibanye Gold Ltd. meet with the Association of Mineworkers and Construction Union on successive days from July 9.

While the producers will be conscious that AMCU led the country’s longest ever platinum mining strike in 2014, none can meet its demand for a pay increase of as much as 48% without undermining their businesses. Continue Reading →

Thunder Bay junior miner zeros in on platinum, palladium – by Staff (Northern Ontario Business – July 3, 2019)

https://www.northernontariobusiness.com/

Benton Resources swings deal on two high-grade properties in northwest

A Thunder Bay gold exploration company is picking up two high-grade platinum group metals (PGM) properties, west of the city.

In two separate deals, Benton Resources announced July 2 of its impending acquisition of the Escape Lake Discovery from Rio Tinto Exploration Canada for $6 million, and the Thunder Bay North deposit from Australia’s Panoramic Resources for $9 million.

The two properties are 60 kilometres south of North American Palladium’s (NAP) Lac des Iles Mine and 10 kilometres east of NAP’s Sunday Lake property. The acquisitions should be finalized within the next two to three months. Continue Reading →