Response to Sibanye-Stillwater’s termination of agreement to purchase Brazil assets
Appian notes Sibanye-Stillwater’s surprising announcement today, 24 January 2022, and believes there to be no basis for Sibanye-Stillwater to lawfully terminate the Atlantic Nickel SPA and the MVV SPA.
The geotechnical event that Sibanye is referencing amounts to a localized fracture that occurs in normal course open pit operations. To remedy the condition of the area in question, some amount of additional waste will need to be mined earlier in the mine plan which equates to less than 1% of the mine’s volume over a 34 year mine life. Appian does not agree that this constitutes a material adverse event.
Santa Rita is expected to have strong operational and financial performance in 2022 and generate significant free cash flow. Santa Rita is a high-quality asset that Appian successfully restarted with a first quartile cost position and an extended life of mine.
Appian is currently assessing all of its legal options and will take all necessary action to enforce its legal rights.