A High Court in London has ruled that Sibanye-Stillwater, listed on the JSE and NYSE, is liable for damages following the termination of a $1.2-billion agreement with investment adviser Appian Capital regarding two nickel mines in Brazil.

The termination, which occurred in January 2022, was based on Sibanye-Stillwater's claim that a geotechnical event at Atlantic Nickel’s Santa Rita mine, in November 2021, constituted a material adverse effect under the sale and purchase agreement (SPA).

In the ruling, Justice Butcher concluded that the geotechnical event “would not reasonably have been expected to be material”, and noted that the grounds cited by Sibanye-Stillwater did not justify the termination of the SPAs. Furthermore, the court found no other valid reasons for the defendants' actions.

Sibanye-Stillwater highlighted in a statement to the JSE that the court dismissed Appian’s claim of wilful misconduct, affirming that the company's management genuinely believed they had the right to terminate the agreement in what they viewed as the best interests of the business.

The case will now move to a second phase, with a trial scheduled for November 2025 to determine the potential damages that Sibanye-Stillwater may owe to Appian.

Appian said it would seek to recover these losses in full, including the “significant interest” that would have accrued since January 2022. The organisation stated: “If Sibanye cannot pay in full the damages awarded in the quantum trial, Appian will pursue all enforcement options available.”

Sibanye-Stillwater, for its part, said its case on quantum was that Appian could have sold the Santa Rita and Serrote mines to another purchaser for a similar purchase price once the SPAs were cancelled and therefore could not recover any loss it had suffered from Sibanye-Stillwater.

The judgment reportedly noted that Appian received multiple offers for the mines after Sibanye-Stillwater terminated the SPAs.

"Sibanye-Stillwater will continue to defend the claim vigorously at the quantum trial in November 2025," the South Africa-headquartered group said.

Atlantic Nickel’s Santa Rita project is one of the few long-life nickel sulphide mines globally, producing nickel along with by-products such as copper, cobalt, and platinum group metals. The company is actively progressing the asset's underground extension development, transitioning from openpit to underground mining. This shift to higher-grade nickel is expected to increase production rates and extend the mine's lifespan to over 20 years.