Sibanye elects not to up stake in Canada palladium

The announcement sent the Toronto-listed junior’s share price down 15%.

However, president and CEO Jamie Levy said the company was “thrilled” to have clarity on this issue, which removed a perceived encumbrance on the Marathon project. He added that the decision would ultimately benefit shareholders.

“The project’s time has come to be developed and being a Canadian-based company looking to produce critical minerals and green metals is a very exciting place for all our stakeholders,” Levy said.

Marathon is a large, undeveloped platinum group metals mineral resource in north-western Ontario. A March 2021 feasibility study estimated that at $1 725/oz palladium and $3.20/lb copper, Marathon’s net present value, at a 6% discount, is about C$1.07-billion with a payback of 2.3 years and an internal rate of return of 30%.

Upfront capital of C$665-million is needed to build a mine that will produce 245 000 palladium-equivalent ounces a year over 13 years at an all-in sustaining cost of $809/palladium-equivalent ounce.

Sibanye holds 19.3% of the JV.