at Santa Rita (the Transaction).
Commenting on the Transaction, Neal Froneman, CEO of Sibanye-Stillwater said: "The Transaction is a
CEO of Mubadala's bauxite operation in Guinea and CEO of Anglo American's phosphates and niobium
business in Brazil). The teams, which have a well-established track record of operating in Brazil and have
been responsible for successfully developing and optimising the assets, have committed to joining
Sibanye-Stillwater ensuring continuity of expertise, knowledge, and proven mining experience. Santa Rita
and Serrote, alongside the world-class management team, represent a strong platform for Sibanye-
Stillwater to explore further growth opportunities in Brazil and throughout the Latin America region.
Sibanye-Stillwater has entered into two separate inter-conditional Transaction Agreements for the
acquisition of 100% of the shares in, and Appian group loans against, the 100% owned Appian subsidiary
companies which are the sole owners of Santa Rita and Serrote, for a purchase price to be settled as
follows:
•
subject to customary adjustments for net debt and working capital on implementation of the
Transaction
pounds of nickel equivalent metal, which is only expected to be payable once production from the
underground mine commences. The 5.0% NSR is currently valued at US$218 million based on a
preliminary economic assessment stage underground project which may be advanced by Sibanye-
Stillwater in the future following the completion of further detailed studies
Santa Rita
Santa Rita is a top ten global producing nickel sulphide mine in the world2. The operation is a conventional
underground resources, extending the mine life by a further 27 years. Following the restart of the mine in
2019, the current management team has undertaken a number of operational improvements, and as a
result Santa Rita is now generating strong free cash flow.
production of 16 kt per annum nickel equivalent
thickening and filtration producing a saleable nickel concentrate, with 13.50% Ni, 4.57% Cu, 0.25% Co
and 1.17g/t Au
containing approximately 134 kt of nickel, 49 kt of copper and 5 kt of cobalt4
containing approximately 1,383 kt of nickel, 446 kt of copper and 25 kt of cobalt5,6
Serrote is an advanced and pre-developed open pit copper mine with a current reserve life of 13 years
and significant resource and optimization potential. The mine is currently in a ramp up phase of
approximately 18 months and is on track to achieve commercial production in the fourth quarter of 2021,
having completed construction in May 2021, with world class safety records.
production of 20 kt per annum copper equivalent
thickening and filtration producing a saleable copper concentrate
approximately 299 kt of copper and 159 koz of gold7
approximately 609 kt of copper and 347 koz of gold8
The combined net asset value of Santa Rita and Serrote, in the accounts, as at the year ended December
2020 is US$258 million. The Combined profit / (loss) attributable to Santa Rita and Serrote, in the accounts,
for the year ended December 2020 is US$(143) million.
Implementation of the Transaction is expected in the fourth quarter of 2021, being the effective date and
will be funded from internal reserves.
The Transaction is both subject to and conditional on the fulfilment of conditions precedent customary for
a transaction of this nature, including approval of the Financial Surveillance Department of the South
African Reserve Bank.
The Transaction constitutes a Category 2 transaction for Sibanye-Stillwater in terms of Section 9 of the JSE
Limited Listing Requirements and accordingly no Sibanye-Stillwater shareholder approval is required.
Withdrawal of Cautionary
Shareholders are further advised that the cautionary is accordingly withdrawn following the publication
of this announcement.
Sibanye-Stillwater will host a virtual presentation later today at 15:00 CAT (09:00 EST / 07:00 MDT) on the
acquisitions of the Santa Rita and Serrote mines as well as a review of its recent progress on delivery of
the Group's green metal strategy. The presentation will be shared via webcast
(https://themediaframe.com/mediaframe/webcast.html?webcastid=U7OnxwXA)
and on a conference call at (pre-register at
https://services.choruscall.za.com/DiamondPassRegistration/register?confirmationNumber=4050358&linkSecurityString=703334288).
For more information about the transaction, please refer to
https://www.sibanyestillwater.com/news-investors/news/transactions/brazil-santa-rita-serrote.
Investor relations contact:
Email: ir@sibanyestillwater.com
James Wellsted
Head of Investor Relations
Tel: +27 (0) 83 453 4014
Website: www.sibanyestillwater.com
Sponsor: J.P. Morgan Equities South Africa Proprietary Limited
Sibanye-Stillwater retained Moelis & Company LLC as financial advisor and Clifford Chance, Machado Meyer and
Cliffe Dekker Hofmeyr as legal advisors in connection with the Transaction.
respect to development of the Santa Rita underground
1.4% of the tonnage and a 6% reduction in the Ni contained metal with no reduction in other contained metals. Mineral Reserves are based on
US$20.00/lb cobalt, US$1,000/oz palladium, US$800/oz platinum and US$1,250/oz gold and are constrained within an optimized pit shell that uses
39-46° overall wall slopes, and process recoveries of 83% nickel, 70% copper and 30% cobalt with no credit for palladium, platinum or gold. An NSR
cut-off value of US$8.91/t is estimated to differentiate ore from waste. The NSR is based on cost assumptions of US$5.17/t processing, US$1.71/t
by metal prices, US$/BR$ exchange rate, environmental, permitting, legal, title, taxation, soci-political, marketing, infrastructure development or
other relevant issues.
Resources are reported inclusive of those Mineral Resources converted to Mineral Reserves. Mineral Resources that are not Mineral Reserves do
not have demonstrated economic viability. Open pit Mineral Resources were constrained within a conceptual pit shell that included the following
input parameters: metals prices of US$6.50/lb Ni, US$3.00/lb Cu, US$20.00/lb Co; metallurgical recoveries of Ni = 83%; Cu = 70%; Co = 29%; mining
parameters that range from 70-75°. Mineral Resources are reported above a net smelter return (NSR) cut-off US$8.91/t.
US$30.00/t
Cu, and US$1,250/Au oz. 84% Cu processing recovery and 65% Au processing recovery. The estimates were carried out using a cut-off in-situ NSR
value of US$9.55/t.
not Mineral Reserves do not have demonstrated economic viability. Mineral Resources are reported inside a conceptual put shell that uses the
processed; sustaining capital costs of US$0.31/t processed, general & administrative costs of US$0.94/t processed; copper selling cost of US$0.45/lb;
gold refining cost: US$6.00/oz troy; metallurgical recoveries of 86% Cu and 67% Au; and pit slope angles by rock-mass class, ranging from 28-40°
(overall). Mineral Resources are reported above a cut-off grade of 0.15% Cu.
the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements, including, among others, those
relating to Sibanye Stillwater Limited's ("Sibanye-Stillwater" or the "Group") financial positions, business strategies, plans and
objectives of management for future operations, are necessarily estimates reflecting the best judgment of the senior
management and directors of Sibanye-Stillwater and involve a number of risks and uncertainties that could cause actual results
to differ materially from those suggested by the forward-looking statements. As a consequence, these forward-looking statements
should be considered in light of various important factors, including those set forth in this report.
All statements other than statements of historical facts included in this report may be forward-looking statements. Forward-looking
statements also often use words such as "will", "forecast", "potential", "estimate", "expect", "plan", "anticipate" and words of
similar meaning. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and
circumstances and should be considered in light of various important factors, including those set forth in this disclaimer. Readers
are cautioned not to place undue reliance on such statements.
The important factors that could cause Sibanye-Stillwater's actual results, performance or achievements to differ materially from
estimates or projections contained in the forward-looking statements include, without limitation, Sibanye-Stillwater's future
financial position, plans, strategies, objectives, capital expenditures, projected costs and anticipated cost savings, financing
plans, debt position and ability to reduce debt leverage; economic, business, political and social conditions in South Africa,
Zimbabwe, the United States and elsewhere; plans and objectives of management for future operations; Sibanye-Stillwater's
ability to obtain the benefits of any streaming arrangements or pipeline financing; the ability of Sibanye-Stillwater to comply with
loan and other covenants and restrictions and difficulties in obtaining additional financing or refinancing; Sibanye-Stillwater's
ability to service its bond instruments; changes in assumptions underlying Sibanye-Stillwater's estimation of its current mineral
reserves; any failure of a tailings storage facility; the ability to achieve anticipated efficiencies and other cost savings in
connection with, and the ability to successfully integrate, past, ongoing and future acquisitions, as well as at existing operations;
the ability of Sibanye-Stillwater to complete any ongoing or future acquisitions; the success of Sibanye-Stillwater's business strategy
and exploration and development activities; the ability of Sibanye-Stillwater to comply with requirements that it operate in ways
that provide progressive benefits to affected communities; changes in the market price of gold and PGMs; the occurrence of
hazards associated with underground and surface mining; any further downgrade of South Africa's credit rating; a challenge
regarding the title to any of Sibanye-Stillwater's properties by claimants to land under restitution and other legislation; Sibanye-
Stillwater's ability to implement its strategy and any changes thereto; the occurrence of labour disruptions and industrial actions;
the availability, terms and deployment of capital or credit; changes in the imposition of regulatory costs and relevant government
regulations, particularly environmental, tax, health and safety regulations and new legislation affecting water, mining, mineral
rights and business ownership, including any interpretation thereof which may be subject to dispute; the outcome and
consequence of any potential or pending litigation or regulatory proceedings or environmental, health or safety issues; the
concentration of all final refining activity and a large portion of Sibanye-Stillwater's PGM sales from mine production in the United
States with one entity; the identification of a material weakness in disclosure and internal controls over financial reporting; the
effect of US tax reform legislation on Sibanye-Stillwater and its subsidiaries; the effect of South African Exchange Control
Regulations on Sibanye-Stillwater's financial flexibility; operating in new geographies and regulatory environments where Sibanye-
Stillwater has no previous experience; power disruptions, constraints and cost increases; supply chain shortages and increases in
the price of production inputs; the regional concentration of Sibanye-Stillwater's operations; fluctuations in exchange rates,
currency devaluations, inflation and other macro-economic monetary policies; the occurrence of temporary stoppages of mines
for safety incidents and unplanned maintenance; Sibanye-Stillwater's ability to hire and retain senior management or sufficient
technically skilled employees, as well as its ability to achieve sufficient representation of historically disadvantaged South Africans
in its management positions; failure of Sibanye-Stillwater's information technology and communications systems; the adequacy
of Sibanye-Stillwater's insurance coverage; social unrest, sickness or natural or man-made disaster at informal settlements in the
vicinity of some of Sibanye-Stillwater's South African-based operations; and the impact of HIV, tuberculosis and the spread of
other contagious diseases, such as the coronavirus disease (COVID-19). Further details of potential risks and uncertainties affecting
Sibanye-Stillwater are described in Sibanye-Stillwater's filings with the Johannesburg Stock Exchange and the United States
Securities and Exchange Commission, including the Integrated Annual Report 2020 and the Annual Report on Form 20-F for the
fiscal year ended 31 December 2020.
or undertaking to update or revise any forward-looking statement (except to the extent legally required). These forward-looking
statements have not been reviewed or reported on by the Group's external auditors.
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Sibanye Stillwater Limited published this content on 26 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2021 12:45:03 UTC.