Sibanye-Stillwater signs $500 million streaming deal with Franco-Nevada

Sibanye-Stillwater announced on December 19, 2024, that it has finalized a $500 million streaming agreement with Franco-Nevada (Barbados) Corporation, a subsidiary of Franco-Nevada Corporation. This transaction grants Franco-Nevada rights to a portion of the company's gold and platinum output.

The agreement specifically covers Sibanye-Stillwater's Marikana, Kroondal, and Rustenburg operations in South Africa, referred to as the "Stream Area." In exchange for these streaming rights, Sibanye-Stillwater receives an upfront payment of $500 million.

The terms of the streaming agreement outline a multi-tiered approach for both gold and platinum. For gold, the stream starts at 1.1% of 4E PGM ounces until 87,500 ounces are delivered, then drops to 0.75% until 237,000 ounces, before settling at 80% of contained gold for the remainder of the life of mine. The platinum stream involves 1.0% and 2.1% of contained platinum, respectively. Sibanye-Stillwater will receive production payments at 5% of the spot price initially, increasing later.

The transaction is subject to approval from the South African Reserve Bank. Additionally, the companies have agreed to convert Franco-Nevada's existing 5% net profit interest on the Pandora property into a 1% net smelter return royalty.

Sibanye-Stillwater is a global precious metals mining group with operations in South Africa, the United States, and Canada. Franco-Nevada Corporation is a leading royalty and streaming company.