Dec 19 (Reuters) - South African miner Sibanye

Stillwater has entered into a $500 million streaming

agreement with Franco-Nevada Corp ( FNV ), the company said on

Thursday, as it seeks to boost its balance sheet after the

collapse of platinum group metal (PGM) prices.

Sibanye has said it will pursue metals streaming and

prepayment arrangements, which involve selling future metals

production in return for an upfront cash payment, to bolster its

financial position. This is after its earnings plunged due to

the collapse in metal prices.

"The group's financial position has been reinforced at a

competitive cost of capital," Sibanye CEO Neal Froneman said in

a statement.

The company and its industry peers are battling the impact

of low prices of PGMs, which are used to curb emissions in

vehicles.

PGM prices fell sharply in 2023 amid high inventory levels

and concerns that the growth of battery-powered electric

vehicles, which do not use PGMs, would reduce demand in future.

The diversified miner will receive the cash in exchange for

gold and platinum from its South African operations, Sibanye

said in a statement.

(Reporting by Aby Jose Koilparambil in Bengaluru and Nelson

Banya in Harare; Editing by Mrigank Dhaniwala)