SENS announcement for JSE listed company: SSW

SIBANYE STILLWATER LIMITED – Sibanye-Stillwater secures entry into the battery metals sector

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Sibanye-Stillwater secures entry into the battery metals sector

Sibanye Stillwater Limited
Incorporated in the Republic of South Africa
Registration number 2014/243852/06
Share codes: SSW (JSE) and SBSW (NYSE)
ISIN – ZAE000259701
Issuer code: SSW
(“Sibanye-Stillwater” or “the Group” or “the Company”)

Sibanye-Stillwater secures entry into the battery metals sector through a
partnership with and investment into Keliber, a leading European lithium

Johannesburg, 23 February 2021. Sibanye-Stillwater (Tickers JSE: SSW and NYSE: SBSW)
is pleased to announce that it has entered into an investment agreement with Keliber
Oy (“Keliber”)(the “Transaction”). The Transaction is expected to be implemented in
March 2021, subject to the approval by the South African Reserve Bank.


Keliber’s wholly owned, advanced lithium project, the Keliber project, is located
in the Kaustinen region of Finland, one of the most significant lithium-bearing
areas in Europe. Finland represents an attractive low risk mining jurisdiction (top
five jurisdiction in the Fraser Institute) and has developed a National Battery
Strategy that outlines the objectives for the country to become a competitive,
competent and sustainable player in the international battery industry. Europe is
rapidly becoming a leading hub for the manufacture of batteries for electric vehicles
and Keliber’s location in Finland enables efficient transport of lithium hydroxide
to European customers.

The Finnish Minerals Group (“FMG”), which manages the Finnish State’s mining industry
shareholdings, is the largest shareholder in Keliber and is focused on creating
partnerships and co-investments with a view to developing the Finnish battery
electric vehicle supply chain. Sibanye-Stillwater shares this vision and in
partnership with Keliber, FMG and other shareholders, will progress the project to
be the first vertically integrated lithium producer in Europe.

The Keliber project consists of several advanced stage lithium spodumene deposits,
with significant exploration upside in close proximity to the existing project.
Based on a feasibility study completed in 2019 and improved in 2020, Keliber
currently has 9.3 million tonnes of ore reserves, sufficient for more than 13 years
of operation. Planned annual production is 15,000 tonnes of battery grade lithium
hydroxide. Production is anticipated to start in 2024. The project includes the
development of a chemical plant in Kokkola, approximately 50 kilometres from the
mining area, which will produce battery grade lithium hydroxide. Future lithium
hydroxide production has not been committed to any offtake party.


Sibanye-Stillwater will make an initial phased equity investment of EUR30 million,
for an approximate 30% equity shareholding into Keliber. In addition a further
EUR10 million equity issuance will simultaneously be offered to the existing
Keliber shareholders, on the same terms as Sibanye-Stillwater’s EUR30 million

This financing, together with a combination of Sibanye-Stillwater’s extensive mining
expertise that will complement the skills and local knowledge of the experienced
Keliber team, will ensure the continued progress of the project to a build ready
phase. The EUR40 million investment will allow for the completion of further
detailed mining optimisation studies, permitting, metallurgical test work and
detailed engineering design. In addition, the Kaustinen region is highly prospective
and further exploration work to increase the current Mineral Resource and Reserve
base will be undertaken. The initial project work will be overseen by a joint
technical committee, working under the guidance of the Keliber Board, on which
Sibanye-Stillwater will have representation.

An updated and enhanced definitive feasibility study will be completed within 18 to
24 months, with a view to achieving successful project financing of a currently
estimated EUR340 million by H2 2022. The project financing would include both a debt
and equity component.

In addition to the initial investment, Sibanye-Stillwater has a guaranteed option
to achieve a majority shareholding in Keliber, following the completion of the
updated feasibility study, should it wish to do so, by contributing further equity
financing for the development of the project.

This investment into Keliber represents the first strategic step by Sibanye-
Stillwater’s into the “battery metals” sector, which is complementary to its leading
PGM position, with both battery metals and PGMs essential to achieving a “greener”

For more information on the transaction, refer to

Sibanye-Stillwater Chief Executive Officer Neal Froneman commented, “In line with
our strategic objective of entering the battery metals industry, lithium is viewed
as one of the core metals to benefit from the significant growth forecast for the
electric vehicle sector. Our investment in Keliber represents a strategic partnership
of complementary skills and capabilities and a shared vision to be a preferred
provider of responsibly sourced battery grade materials for the market. The
investment offers the opportunity for further geographic diversification in an
attractive mining destination and the opportunity to forge long term relationships
with established lithium industry players that have a shared vision of supplying the
electric vehicle supply chain. Together with FMG we have committed to make this a
showcase ESG operation.”


Investor relations contact:
James Wellsted
Head of Investor Relations
Tel: +27 (0) 83 453 4014

Sponsor: J.P. Morgan Equities South Africa Proprietary Limited


The information in this announcement may contain forward-looking statements within the meaning
of the “safe harbour” provisions of 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.
All statements other than statements of historical facts included in this announcement may be
forward-looking statements. Forward-looking statements also often use words such as “will”,
“forecast”, “potential”, “estimate”, “expect” 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 those in the forward-looking statements include, among
others, our future business prospects; financial positions; debt position and our ability to
reduce debt leverage; business, political and social conditions in the United States, South
Africa, Zimbabwe and elsewhere; plans and objectives of management for future operations; our
ability to obtain the benefits of any streaming arrangements or pipeline financing; our ability
to service our bond instruments; changes in assumptions underlying Sibanye-Stillwater’s estimation
of their current mineral reserves and resources; the ability to achieve anticipated efficiencies
and other cost savings in connection with past, ongoing and future acquisitions, as well as at
existing operations; our ability to achieve steady state production at the Blitz project; the
success of Sibanye-Stillwater’s business strategy; exploration and development activities; the
ability of Sibanye-Stillwater to comply with requirements that they operate in a sustainable
manner; changes in the market price of gold, PGMs and/or uranium; the occurrence of hazards
associated with underground and surface gold, PGMs and uranium mining; the occurrence of labour
disruptions and industrial action; the availability, terms and deployment of capital or credit;
changes in relevant government regulations, particularly environmental, tax, health and safety
regulations and new legislation affecting water, mining, mineral rights and business ownership,
including any interpretations thereof which may be subject to dispute; the outcome and consequence
of any potential or pending litigation or regulatory proceedings or other environmental, health
and safety issues; power disruptions, constraints and cost increases; supply chain shortages and
increases in the price of production inputs; 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; the ability to hire and retain
senior management or sufficient technically skilled employees, as well as their ability to achieve
sufficient representation of historically disadvantaged South Africans in management positions;
failure of information technology and communications systems; the adequacy of insurance coverage;
any social unrest, sickness or natural or man-made disaster at informal settlements in the
vicinity of some of Sibanye-Stillwater’s operations; and the impact of HIV, tuberculosis and the
spread of other contagious diseases, such as coronavirus (“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.

These forward-looking statements speak only as of the date of the content. Sibanye-Stillwater
expressly disclaims any obligation or undertaking to update or revise any forward-looking
statement (except to the extent legally required).

Date: 23-02-2021 10:05:00
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