Sedibelo Resources Limited
(Note: This is an IPO with a placeholder amount of $100 million for estimated IPO proceeds, according to the S-1 dated July 29, 2022. From the prospectus: No public market currently exists for our ordinary shares. We intend to apply to have our ordinary shares listed on the New York Stock Exchange (“NYSE”) under the symbol “SED” and an inward secondary listing on the Main Board of the securities exchange operated by JSE Limited (the “JSE” or the Johannesburg Stock Exchange) under the symbol “SDB.” This prospectus also comprises a pre-listing statement prepared in accordance with the applicable JSE Listings Requirements and is subject to approval by the JSE.)
We are an established South African producer of platinum group metals (“PGMs”), with a portfolio of high-quality PGM growth projects and an exclusive license within a majority of the Southern African Development Community (“SADC”) region for a next-generation processing technology that we believe will facilitate the production of finished metal with a lower environmental impact than traditional smelting. (Incorporated on the Island of Guernsey)
For the three months ended March 31, 2022, and 2021, we produced and sold 17.3 koz and 23.8 koz, respectively, of platinum, palladium, rhodium and gold (collectively “4E”), and for the years ended Dec. 31, 2021, and 2020, we produced and sold 98 koz and 129 koz, respectively, of 4E. According to the Technical Report Summaries, our production is forecast to grow by 326% to 417 koz 4E per annum in 2030 (100% basis).
We currently operate the Pilanesberg Platinum Mine on the Western Limb of the Bushveld Complex, an open pit mining operation which commenced production in March 2008. The Bushveld Complex is a well-established producing region for PGMs, which according to CRU contained approximately 91% of the world’s PGM-bearing ore in 2020 and represented 70%, 34%, and 78% of global platinum, palladium and rhodium production in 2020, respectively.
We are advancing two high quality PGM expansion projects: (1) the development of the Triple Crown Properties, a wholly owned brownfield expansion of the Pilanesberg Platinum Mine, including a new underground section of the mine to allow us to access attractive mineral resources (collectively with our existing operations referred to as the “P-S-M Project”); and (2) the greenfield Mphahlele Project on the Eastern Limb of the Bushveld Complex, in which we hold a 75% interest. We believe these projects are high quality as they are higher grade than our existing operations and shallower than the underground mines of our competitors. Further, we believe that our ability to leverage our existing Pilanesberg Platinum Mine footprint and regional (third party and owned) infrastructure will make these new projects very capital efficient. According to the Technical Report Summaries, our Western Limb properties (excluding Kruidfontein) and Eastern Limb properties are forecast to result in steady-state average production of 278 koz and 152 koz 4E per annum from 2030 to 2040, respectively (100% basis). Based on the SFA (Oxford) Cost Curve Charts and the P-S-M Technical Report Summary estimates on the Triple Crown Properties, the development of the Triple Crown Properties will reposition us as one of the lowest cost producers in the PGM sector.
Historically, substantially all of our PGM in concentrate has been sold to a third party for conversion into finished metal through an energy intensive traditional smelting process. Going forward, we plan to forward integrate to refine our PGMs independently. Through our 50% holding in Kelltech, we are in the process of developing a 110 ktpa Kell Processing Plant to be located near our existing Pilanesberg Platinum Mine operations. We expect that the Kell Processing Plant will process our concentrate as of 2025, as well as refine third party concentrate, into metal using a more environmentally-clean hydrometallurgical process as compared to traditional smelting. The Kell process follows four basic sequential steps, all of which are well-proven and commonly used in the metallurgical industry and provide high recoveries of base and precious metals. Our Kell Processing Plant will be the first of its kind at commercial scale, but we believe the capabilities of the technology have already been well established.
We believe the Kell Process Technology offers a number of environmental and financial benefits as compared to traditional smelting and may be adopted by other producers in the SADC region, which would provide us with future royalty revenue or other income. We believe that these benefits may include: (1) higher metal recoveries providing improved revenue; (2) reduction in capital costs for equivalent production capacity; (3) reduction in operating costs; (4) reduction in electricity consumption; (5) lower CO2 emissions (up to 80%) and no SO2 emissions (6) cyanide free, lower water-intensive process; and (7) scalable, modular design that can be scaled to suit marketing and site location requirements.
We are committed to operating our business and engaging with our community in line with industry best-practice Environmental, Social and Governance (“ESG”) principles.
**Note: We generate all of our revenues from sales of our metals. Sales of 4E (platinum, palladium, rhodium and gold) contributed 87% and 93% to our total revenue from contracts with customers during the three months ended March 31, 2022, and 2021, respectively.
**Note: Revenue and net income figures are for the 12 months that ended March 31, 2022.
|Industry:||Platinum Metals - Mining|
|Address||Sedibelo Resources Limited Oak House, Hirzel Street St Peter Port, Guernsey, GY1 3RH|
|Phone Number||+44 (0) 1481 740521|
|View Prospectus:||Sedibelo Resources Limited|
|Revenues||$222.78 mil (last 12 months)|
|Net Income||$4.8 mil (last 12 months)|
|Price range||$0.00 - $0.00|
|Est. $ Volume||$100.0 mil|
|Manager / Joint Managers||Evercore ISI/ J.P.Morgan/ RBC Capital Markets|
|Expected To Trade:|
|Quiet Period Expiration Date:||Available only to Subscribers|
|Lock-Up Period Expiration Date:||Available only to Subscribers|
|SCOOP Rating||Available only to Subscribers|
|Rating Change||Available only to Subscribers|