Sibanye pays Appian $215M to settle dispute

Core Viewpoint - Sibanye-Stillwater has agreed to pay $215 million to settle a legal dispute with Appian Capital Advisory regarding a cancelled acquisition of two Brazilian assets, allowing the company to focus on growth and operational delivery [1][4][5]. Settlement Details - The settlement comes just before a trial was set to begin, following a UK court's ruling that Sibanye unlawfully abandoned the deal and was liable for compensation [3]. - Appian initially sought damages exceeding $1.2 billion, which included the $1 billion cash consideration of the deal and $218 million in estimated royalties [2]. Market Reaction - BMO Capital Markets views the settlement as a slight positive for Sibanye, noting that the company can comfortably pay the settlement from its current treasury [5]. - Following the announcement, Sibanye's US-listed shares rose by 6.5%, with a current market capitalization of nearly $12 billion [5]. Strategic Implications - The acquisition was intended to diversify Sibanye's mining portfolio by increasing exposure to battery metals, alongside its existing gold and PGM operations [6]. - Sibanye has also been involved in other battery metals deals, including a scrapped investment in the Rhyolite Ridge lithium-boron project in Nevada earlier this year [8]. Asset Overview - The Santa Rita mine, part of the cancelled acquisition, is one of the largest open-pit nickel sulphide mines nearing depletion, transitioning to underground operations [7]. - Mineração Vale Verde's Serrote copper mine is expected to produce approximately 20,000 tonnes of copper-equivalent annually over a 14-year period [7].