Sibanye-Stillwater has reached an agreement to sell the Beatrix 4 shaft, which includes the Beisa uranium project in South Africa, to Neo Energy Metals for R500m.
The consideration consists of approximately R250m in cash and an equal amount in newly issued shares in Neo Energy.
In addition to the upfront payment, Sibanye-Stillwater will receive a royalty on all uranium sold from the Beisa project.
The royalty rates will vary according to the spot price of uranium.
The Beisa uranium project, situated at the Beatrix 4 shaft in South Africa's Free State Province, taps into the Beisa uranium reef via the upper levels of the Beatrix 4 shaft infrastructure.
In 2023, Sibanye-Stillwater placed the Beatrix 4 shaft on care and maintenance, mainly due to declining gold reserves and a low uranium price. However, the uranium price has since rebounded, reaching a peak of $106 per pound in January 2024.
While the Beisa uranium project is not a capital priority for Sibanye-Stillwater, the transaction offers Neo Energy the chance to develop the project, while enabling Sibanye-Stillwater to retain exposure to uranium production.
Neo Energy will take on responsibility for all rehabilitation and environmental liabilities associated with the Beatrix 4 shaft.
The deal instantly realises value for Sibanye-Stillwater shareholders and accelerates the potential development of the Beisa uranium project, without adding pressure to the group's balance sheet.
Sibanye-Stillwater CEO Neal Froneman said: “The sale of this strategic uranium asset is in line with Sibanye-Stillwater’s strategy to unlock value from our uranium assets. The sale of Beatrix 4 shaft and the Beisa uranium project realises immediate value for the Group.
“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 from the Group balance sheet for projects currently under development.”
In August this year, Sibanye-Stillwater said that it will receive a €500m ($556m) green loan for its Keliber lithium project in Finland through Keliber Technology Oy.
