May 28 (Reuters) - Shareholders of South Africa's

Sibanye Stillwater voted on Tuesday in favour of a

resolution to convert $500 million worth of bonds issued last

year into shares.

The Johannesburg-based precious metals producer said 98.74%

of votes cast during an online general meeting were "for" the

proposal presented at the company's general meeting.

Sibanye issued the convertible bonds last November, partly

to fund the $156 million acquisition of a U.S.-based recycling

business as well as to improve the company's liquidity.

The vote to convert the bonds means Sibanye will issue up to

524 million new shares, equivalent to about 19% of the shares

currently in issue, the company said ahead of the vote.

A sharp decline in platinum group metal (PGM) prices has

hurt Sibanye, resulting in adjusted earnings before interest,

taxes, depreciation, and amortisation (EBITDA) plunging 72% to

2.137 billion rand in the quarter to March 31, from 7.755

billion rand last year.

The miner slumped to a $2 billion loss in the full year to

December 2023.

On May 10, CEO Neal Froneman said declining earnings could

impact Sibanye's debt covenants - formal agreements between a

borrowing company and its lenders that the company will operate

within certain limits.

The company, which has diversified beyond PGMs and gold

into battery minerals lithium, nickel and zinc assets in the

United States, Finland, France and Australia is negotiating a

temporary relaxation of the borrowing restrictions with lenders.