Stillwater

Operator: Sibanye-Stillwater
Location: USA
Term of Stream: Life of Mine
Stream Parameters: 100% of gold production and 4.5% of palladium production, decreasing to 2.25% and then 1% based on defined delivery thresholds
Upfront Consideration: US$500M
Cost Quartile: 1st
Primary Metal: Platinum Group Metals

Project Overview

Stillwater is the only US-based mine for platinum group metals ("PGM"s) and the largest primary producer of PGMs outside of South Africa and the Russian Federation. Located in Montana, US, Stillwater's operations consist of two underground PGM mines (the Stillwater Mine and East Boulder Mine), the Blitz Project and the Columbus metallurgical complex. The mining assets are located in the front range of the Beartooth Mountains with elevations exceeding 1,500 metres above mean sea level.

The Stillwater Mine and East Boulder Mine have been in operation since 1986 and 2002, respectively. The mines produce from the J-M Reef, the world's highest-grade PGM deposit. Each mine has its own milling and concentrator infrastructure on site. The Blitz Project, part of the Stillwater mine, started ore production in 2017 and is expected to ramp up to full production in 2021.

The Columbus metallurgical complex is a state-of-the-art operation that is capable of providing smelting and refining processes for mine concentrates. The complex produces a PGM-rich filter cake that is shipped to a third-party precious metal refinery.

Precious Metals Purchase Agreement

On July 16, 2018, Wheaton agreed to pay Sibanye-Stillwater upfront cash consideration of US$500 million for a fixed percentage of production from the Stillwater and East Boulder mines, collectively "Stillwater." Effective July 1, 2018, Wheaton will be entitled to receive an amount equal to 100% of gold production for the life of mine and 4.5% of palladium production, decreasing to 2.25% and then 1% based on defined delivery thresholds, for the life of mine. Wheaton will make ongoing payments equal to 18% of the spot gold price and spot palladium price until the reduction of the advanced payment to nil, and 22% of the spot gold price and spot palladium price thereafter.

More Information

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