Sibanye Stillwater, a worldwide precious metal mining corporation managed by South African executive Neal Froneman, has been ordered by the London High Court to reimburse investment firm Appian Capital Advisory for the termination of a $1.2-billion transaction.
The court’s ruling follows Sibanye’s unsuccessful acquisition of Brazilian nickel and copper mines, notably the Santa Rita and Serrote assets.
According to Appian, the court determined that Sibanye was compelled to complete the transaction, which included obtaining a 100% ownership in the Santa Rita nickel mine and the Serrote copper mine in Brazil.Sibanye initially stated its intention to complete the acquisition by the end of 2021, with a definitive purchase agreement announced on October 26, 2021, for $1 billion in cash.
The arrangement fell apart in January 2022, when Sibanye terminated the agreement, prompting Appian to seek compensation. Judge Christopher Butcher presided over the case and determined that Sibanye had no reasonable grounds for abandoning the acquisition, requiring the business to reimburse Appian. A separate hearing to decide damages is scheduled for November 2025.
Appian, an investment advisor specializing in metals and mining, is seeking full recovery of its losses, including accrued interest, as a result of the unsuccessful transaction. Sibanye responded by acknowledging the trial date but declining to speculate on potential compensation sums.
This verdict comes as Sibanye Stillwater faces serious financial issues. Under Froneman’s leadership, the firm, a leading producer of platinum, palladium, and gold, reported a loss of R7.14 billion ($379 million) in the first half of 2024, compared to a profit of R7.8 billion ($427 million) in the same period in 2023.
Despite problems, the Public Investment Corporation (PIC) purchased a 15.048 percent share in Sibanye Stillwater for R8.58 billion ($494 million), demonstrating confidence in the company’s recovery prospects.
The Santa Rita mine is one of the world’s largest nickel-cobalt sulphide open-pit mines, generating concentrates for battery precursor processing. Meanwhile, the Serrote mine has an 18-year reserve life and can be optimized as an advanced open-pit copper mine.