Sibanye-Stillwater Secures $500 Million Streaming Deal with Franco-Nevada

Multinational metals and mining group Sibanye-Stillwater has finalized a $500-million streaming agreement with Franco-Nevada (Barbados) Corporation, a subsidiary of Franco-Nevada Corporation.

The deal grants Franco-Nevada access to gold and platinum streams from Sibanye-Stillwater’s Marikana, Kroondal, and Rustenburg operations in South Africa, in exchange for an upfront payment of $500 million.

Under the terms of the agreement, Sibanye-Stillwater will deliver:

• Gold: 1.1% of platinum, palladium, rhodium, and gold (4E) PGM ounces contained in concentrate as gold until 87,500 ounces are delivered, and 0.75% of 4E PGM ounces until 237,000 ounces are delivered. Thereafter, 80% of gold production will be delivered.
• Platinum: 1% of platinum ounces until 48,000 ounces are delivered, increasing to 2.1% until 294,000 ounces are delivered, with no further obligations beyond this point.

Sibanye-Stillwater will also receive a production payment equal to 5% of the spot price of the respective metals during the initial delivery periods, increasing to 10% for gold once 237,000 ounces have been delivered.

The transaction, pending approval from the South African Reserve Bank, includes converting Franco-Nevada’s 5% net profit interest on the Pandora property into a 1% net smelter return royalty.

Sibanye-Stillwater CEO Neal Froneman described the agreement as a value-accretive transaction, enabling the company to raise non-debt capital at competitive rates.

Froneman highlighted that the deal monetizes gold—a minor component of Sibanye-Stillwater’s production—and a limited amount of platinum without significantly reducing its exposure to future price increases.

“This agreement validates the quality and long-term viability of our PGM assets, which continue to generate value for stakeholders,” Froneman said.

The $500 million will enhance Sibanye-Stillwater’s capital structure, improve liquidity, and lower the net debt-to-adjusted earnings ratio by up to 0.7 times.

Importantly, the deal imposes no repayment obligations or minimum delivery requirements, ensuring financial flexibility.

The streaming agreement applies to production from Marikana, Kroondal, and Rustenburg operations, including potential underground growth and replacement projects.

These operations possess substantial underground resources, offering opportunities for low-cost brownfield developments and mine-life extensions.

Feasibility studies are underway for several projects within the streaming area, including the Kroondal depth extension projects and the Saffy and E3/E4 initiatives. These developments depend on commercially viable outcomes, with updates expected after study completion.

Sibanye-Stillwater emphasized that the agreement provides long-term financing while retaining the potential upside from rising PGM prices.

“This strategic partnership marks a significant milestone as we continue to optimize our financial structure and pursue long-term growth opportunities within our South African PGM operations,” the company concluded.