JOHANNESBURG (miningweekly.com) – The board of directors of the Johannesburg- and New York-listed Sibanye-Stillwater has decided not to proceed with the Rhyolite Ridge lithium-boron joint venture (JV) project in North America.

Rhyolite Ridge was to be developed under a JV agreement with ioneer, a minerals exploration and development company, which in October last year provided Sibanye-Stillwater with updated project and technical information that included a technical report summary and other updated technical reports.

Sibanye-Stillwater was to acquire a 50% interest in the JV, with ioneer maintaining a 50% interest and retaining the operational management responsibility. The Rhyolite Ridge deposit is located 362 km north of Las Vegas, in Esmeralda County, Nevada.

Based on the results of a management review and due diligence on that information, the board has resolved not to proceed with Rhyolite Ridge owing to the project not meeting its investment hurdle rates at prudent pricing assumptions.

This was stated by the Johannesburg- and New York-listed Sibanye-Stillwater in a JSE stock exchange news service announcement and media release to Mining Weekly on Wednesday, February 26.

The completion of the JV was subject to various conditions precedent including a final investment decision from the board affirming its commitment to proceed with the project.

Outgoing Sibanye-Stillwater CEO Neal Froneman, who in September hands over to incoming CEO and current chief regional officer South Africa Richard Stewart, emphasised during last Friday’s presentation of half-year results that the company’s focus remained on optimising operations for profitability and protecting the group balance sheet.

The restructurings that have been undertaken over the last 18 months were described as having secured greater operational stability, amid South Africa’s platinum group metals (PGM) mines being profitable in 2024 and the group also benefiting significantly from its South African gold assets.

Leverage to the higher gold price drove a 216% increase in earnings before interest, taxes, depreciation and amortisation (Ebitda) to R3.6-billion for Sibanye-Stillwater in the last six months of last year, the company reported on Friday, February 21. 

Group Ebitda of R6.4-billion for the second half (H2) of 2024 was in line with the R6.4-billion Ebitda for H2 2023.

Sibanye-Stillwater is a top-tier gold producer and one of the world's largest primary producers of platinum, palladium, and rhodium. It also refines iridium and ruthenium, nickel, chrome, copper and cobalt and has recently begun to diversify its asset portfolio into battery metals mining and processing and increase its presence in the circular economy by growing its recycling and tailings reprocessing exposure globally.

Restructuring of PGM operations in the US and ongoing restructuring of the Sandouville nickel processing facilities in France are underpinning a firmer 2025 earnings outlook.