Sibanye-Stillwater to sell Beatrix 4 shaft in South Africa

Sibanye-Stillwater has finalized an agreement to sell its Beatrix 4 shaft, including the Beisa uranium project, to Neo Energy Metals for R500 million.

The deal includes a R250 million cash payment and an equivalent value in Neo Energy shares. Additionally, Sibanye-Stillwater will benefit from a royalty structure tied to uranium sales from the project, with rates varying based on the spot price of uranium.

The Beisa uranium project, located in South Africa’s Free State Province, accesses the Beisa uranium reef via the Beatrix 4 shaft infrastructure. The Beisa North and Beisa South Uranium and Gold Projects (the ‘Beisa Projects’) contains one of the largest and currently undeveloped uranium resources in South Africa. The uranium-bearing Beisa Reef, on both the Beisa North Uranium Project and Beisa South Uranium Project, is considered the shallowest deposit in the well-known Welkom Goldfield in the Witwatersrand Basin.

While Sibanye-Stillwater placed the shaft on care and maintenance in 2023 due to declining gold reserves and low uranium prices, a significant rebound in uranium prices, peaking at $106 per pound in early 2024, has renewed interest in the asset.

Strategy

The transaction aligns with Sibanye-Stillwater’s strategy to unlock value from non-core uranium assets, allowing Neo Energy Metals to focus on developing the project while Sibanye retains exposure to uranium production through its Neo Energy shareholding and royalty arrangement. Furthermore, Neo Energy will assume responsibility for all environmental and rehabilitation obligations associated with the Beatrix 4 shaft.

Sibanye-Stillwater CEO Neal Froneman emphasized that the sale allows the company to realize immediate value for shareholders and reallocate capital to priority projects, including the €500 million green loan-funded Keliber lithium project in Finland.