Sibanye-Stillwater's stock is experiencing a decline in after-hours trading following the company's announcement of plans to issue $500 million in bonds. The proceeds from this bond sale are intended to finance the acquisition of Reldan, a precious metal refiner. This move has raised concerns among investors about the potential financial burden and dilution of shareholder value, leading to a negative reaction in the market.
Additionally, the broader mining sector has been under pressure, which has also contributed to the downward movement of Sibanye-Stillwater's stock. Despite a recent share buyback announcement that initially boosted the stock, the overall sentiment in the mining index has dragged it back down.
Sibanye-Stillwater (SBSW) shares fell 0.74% to $4.05 in after-hours trading, following a 3.77% decline to close at $4.08 on December 4, 2024.