Sibanye-Stillwater buys US precious metals recycler Metallix
South Africa’s Sibanye-Stillwater (JSE: SSW) (NYSE: SBSW) will acquire Metallix Refining, a US-based precious metals recycler with two processing and recycling plants in North Carolina, for $82 million.
Metallix recovers gold, silver and platinum group metals (PGMs) primarily from industrial waste. Last year, it produced 21,000 ounces of gold, 874,000 ounces of silver, 48,000 ounces of palladium, 48,000 ounces of platinum, 4,000 ounces of rhodium, 3,000 ounces of iridium, and 263,000 pounds of copper.
The company services a global customer base from additional facilities in the United Kingdom and South Korea.
Shares in Sibanye-Stillwater jumped on the news, trading more than 5% higher in New York to $9.57 mid-morning. That leaves the company’s market capitalization at $6.8 billion.
Sibanye-Stillwater says the acquisition will enhance its US operations in Montana and Pennsylvania by adding proprietary technology, processing capacity, and technical expertise.
“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,” Sibanye-Stillwater Chief Executive Officer, Neal Froneman, said in a news release.
Froneman noted the deal is expected to unlock “significant value” through synergies with Sibanye’s current operations.
The move follows Sibanye’s 2023 acquisition of the Reldan Group, which marked its first major expansion into the recycling sector.
The Metallix acquisition is expected to close in the September quarter.