Sibanye-Stillwater finalizes Beatrix 4 Shaft sale deal
Sibanye-Stillwater has finalized an agreement to sell its Beatrix 4 Shaft and the Beisa Uranium Project, located in South Africa’s Free State Province, to Neo Energy Metals for R500 million.
Sibanye-Stillwater will retain exposure to uranium production from the Beisa project through a royalty on all uranium sold. The royalty rate will fluctuate based on the spot price of uranium. The Beatrix 4 shaft was placed on care and maintenance in 2023 due to declining gold reserves and low uranium prices.
Uranium prices have since rebounded, reaching a peak of $106 per pound in January 2024, renewing interest in the Beisa project. Neo Energy Metals will assume all rehabilitation and environmental liabilities associated with the Beatrix 4 shaft.
Strategy
The sale aligns with Sibanye-Stillwater’s strategy to unlock value from non-core uranium assets. Through its equity stake in Neo Energy Metals, Sibanye-Stillwater retains indirect exposure to the uranium price and Beisa project development while avoiding further capital expenditure. The transaction strengthens the balance sheet, allowing Sibanye-Stillwater to focus on priority projects.
Neal Froneman, CEO of Sibanye-Stillwater, emphasized that the transaction provides immediate value for shareholders and supports the Group’s broader strategic objectives.
“Through our direct shareholding in Neo Energy, we retain exposure to the uranium price and the future development of the project, while prioritising allocation of capital for projects currently under development.”
Sibanye-Stillwater has been actively advancing other projects, including the Keliber lithium project in Finland, where it recently secured a €500 million green loan for development. This sale allows Neo Energy Metals the opportunity to accelerate the development of the Beisa Uranium Project, capitalizing on current market conditions, while Sibanye-Stillwater reduces direct operational and financial risk.
