Sibanye-Stillwater sells Beisa uranium project to Neo Energy
South Africa’s Sibanye-Stillwater has agreed to sell its Beatrix 4 shaft, which includes the Beisa uranium project, to UK-based Neo Energy Metals in a deal valued at about $28 million (R500 million).
The move grants Sibanye-Stillwater a 40% equity stake in Neo Energy, positioning it as the company’s largest shareholder and ensuring continued exposure to the uranium market.
As part of the deal, Sibanye-Stillwater will also receive royalties on all uranium sold from the Beisa project, with payments capped at $5 per pound, depending on the spot uranium price.
Sibanye-Stillwater chief executive, Neal Froneman, said the transaction was part of the company’s broader strategy to extract value from its uranium assets.
“The sale of Beatrix 4 shaft and the Beisa uranium project is in line with Sibanye-Stillwater’s strategy to unlock value from our uranium assets,” Froneman said in the statement.
The company placed Beatrix 4 shaft on care and maintenance in 2023 due to dwindling gold reserves and weak uranium prices. Since then, uranium prices have rebounded, reaching a peak of $106 per pound in January 2024.
Despite this recovery, Sibanye-Stillwater did not prioritize capital investment in the Beisa project, viewing the sale as a strategic opportunity to allow Neo Energy to advance the asset’s development.
Neo Energy’s ambitious plans
Neo Energy Metals, now responsible for the rehabilitation and environmental liabilities of Beatrix 4 shaft, said it plans to revitalize the Beisa project. Executive chairman Jason Brewer emphasized the acquisition’s potential to drive shareholder value and benefit local economic development.
The company intends to update development studies for the Beisa project, targeting an annual production of 1-3 million pounds of uranium and up to 100,000 ounces of gold over an initial 20-year mine life. Neo Energy expects to release a detailed development plan in the second half of 2025.