Northam Platinum has announced plans to sell its 34.5% shareholding in Royal Bafokeng Platinum (RBPlat) to rival Impala Platinum (Implats), citing the low platinum group metals (PGM) price environment and adverse market developments.
Northam’s sudden withdrawal from the boardroom battle for full control of RBPlat marks a victory for Implats.
Northam CEO Paul Dunne said on Thursday the PGM basket price had fallen materially from when it made a mandatory offer to acquire RBPlat shares in 2022. Adverse market developments have resulted in a contraction in profit margins and cash generation capacity across the PGM industry.
“The prevailing PGM market conditions and the material decline in the PGM basket price during, in particular, the past four months may signal a potentially protracted cyclical downturn.”
Northam said the disposal will boost its balance sheet and liquidity and result in the company reducing third party debt, implementing a formal dividend policy and share buy backs, among other things.
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Northam pulls out of battle for RBPlat
Northam Platinum has announced plans to sell its 34.5% shareholding in Royal Bafokeng Platinum (RBPlat) to rival Impala Platinum (Implats), citing the low platinum group metals (PGM) price environment and adverse market developments.
Northam’s sudden withdrawal from the boardroom battle for full control of RBPlat marks a victory for Implats.
Northam CEO Paul Dunne said on Thursday the PGM basket price had fallen materially from when it made a mandatory offer to acquire RBPlat shares in 2022. Adverse market developments have resulted in a contraction in profit margins and cash generation capacity across the PGM industry.
“The prevailing PGM market conditions and the material decline in the PGM basket price during, in particular, the past four months may signal a potentially protracted cyclical downturn.”
Northam said the disposal will boost its balance sheet and liquidity and result in the company reducing third party debt, implementing a formal dividend policy and share buy backs, among other things.
TimesLIVE
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