Sibanye-Stillwater Ends Month-Long Strike with New Wage Deal at U.S. Mines
SBSW sits 24% above its 52-week low of $7.87.
Summary
Sibanye-Stillwater confirmed ratification of a new three-year collective bargaining agreement at its Stillwater East mine and Columbus metallurgical facility, ending a strike that began September 3. The deal includes a 4.5% wage increase in year one, followed by the greater of 3.5% or CPI in year two and 3% or CPI in year three. Employees are expected to return to work October 9. CEO Richard Stewart said the agreement sets a path for lowering costs through mechanization at the U.S. platinum group metal operations, though the company will need time to rebuild from the disruption. This follows the 6-K filed earlier today announcing the ratification, and adds specific wage terms and the resumption date. The strike's end removes a significant operational overhang, but the company's comments suggest a longer-term restructuring of the U.S. operations is underway.
At the time of this announcement, SBSW was trading at $9.75 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $7B. The 52-week trading range was $7.87 to $21.29. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.