The effective date of completion is 1 February 2018, when Siyanda Resources will take over ownership, control and management of these former Anglo American Platinum (Amplats) operations.
[quote]“In addition to the sales of Pandora and Rustenburg, with the completion of Union, Amplats has executed a core part of its strategy of repositioning the portfolio,” comments Amplats CEO, Chris Griffith.
“This transaction will allow us to focus on our most competitive assets, which are largely open-pit and mechanized operations which will result in higher margin production, a smaller and more highly skilled workforce, safer operations and a less complex organisation.
“Our core operations will benefit from dedicated management attention, technical expertise as well as enabling us to focus our capital allocation,” continues Griffith.
“Siyanda’s management team has extensive mining experience including experience at Union Mine. This transaction is mutually beneficial for all parties involved and, through our partnership with the Bakgatla-Ba-Kgafela and our employees, we believe that we will create a sustainable future for the operations.”
The upfront disposal proceeds of R400 million will be received in the form of cash on 1 February 2018 and used to reduce net debt and further strengthen Amplats’ balance sheet.
In addition, a deferred consideration based on 35% of cumulative positive distributable free cash flow will be paid annually as an earn-out for a period of ten years from the effective date of the transaction.
The maximum cap on the deferred consideration is R6 billion. Amplats has no obligation to contribute towards any negative cash flow that may be generated by the assets post the disposal.
Feature image credit: Wikimedia