CBx Arrow.png

Hi Fam

Welcome to CultureBanx, where we bring you fresh business news curated for hip hop culture!

Platinum Loses a Bit of Shine in Lonmin Acquisition

Platinum Loses a Bit of Shine in Lonmin Acquisition

  • Sibanye-Stillwater is acquiring platinum miner Lonmin for $422 million
  • Platinum prices peaked at $2,308 per ounce in 2008

Sibanye-Stillwater (SBGL +/-&), South Africa’s largest gold producer, recently submitted a bid to acquire Lonmin (LNMIY +/-%), the world’s third largest platinum miner, for $422 million in an all-equity deal. Will the deal help Lonmin find its way in a market no longer enamored by platinum?

Why This Matters: The metal of choice for early 2000s hip-hop has had a rough decade. Peaking at $2,308 per ounce in 2008, platinum is currently trading at $956. Lonmin has struggled under falling demand for platinum down 7% year-over-year in 2017. The precious metal primarily used in diesel engines is losing its luster as gasoline and electric-powered engines take center stage.

The deal with Sibanye-Stillwater would buy the company more time to restructure, cut more than 12,000 jobs, and figure out a way to repay a billion dollars in debt. “The proposed transaction remains in the best interest of stakeholders and will create a leading mine-to-market producer of [platinum group metals] in South Africa,” said Lonmin CEO Ben Magara and Sibanye-Stillwater CEO Neal Froneman in a joint statement.

Situational Awareness: Sibanye-Stillwater is controlled by a Chinese consortium, yet secured approval to acquire Colorado-based Stillwater Mining Company for $2.2 billion in 2017. Look to see how the U.S. government treats Sibanye-Stillwater platinum imports as a sign of how serious the Trump administration is about protecting the U.S. economy from China.

CBx Vibe: “New Freezer” by Rich the Kid feat. Kendrick Lamar

Chocolate Easter Bunnies Are Safe From Rising Cocoa Prices

Chocolate Easter Bunnies Are Safe From Rising Cocoa Prices

Solar Power Rising in Africa With Econet’s New Venture

Solar Power Rising in Africa With Econet’s New Venture