- World's No. 2 platinum producer places 102.6 million shares
- Platinum price has declined 51% since August 2011 peak
Impala Platinum Holdings Ltd., the world’s second-biggest producer of the precious metal, raised about 4 billion rand ($297 million) through a share sale.
The company placed 102.6 million shares at 39 rand each, or 7.1 percent less than Tuesday’s closing price, Johannesburg-based Impala said in a statement Wednesday. The stock represents about 16 percent of the producer’s issued ordinary share capital before the placement.
Impala is raising the money as margins for the world’s largest platinum producers have been squeezed by a 51 percent decline in the price of the metal since August 2011. The company said last month it will close shafts and cut jobs to preserve cash and that it expects the metal’s price to remain “lower for longer.”
The proceeds will go toward completing two shafts at Impala’s Rustenburg operation over the next three years, it said Tuesday. The placing was underwritten by UBS Group AG.