SBSW - Sibanye Stillwater: Not Yet Out Of The Woods

2024-03-13 17:02:45 ET

Summary

• While immediate liquidity concerns are not present, H2 2023 results show that Sibanye continues to struggle. I believe the company should have stayed focus on its core business.
• The South African PGM operations are profitable, but face challenges such as load curtailments and rising costs.
• The South African gold operations turned profitable, thanks to record-high gold prices, but are very high-cost and unlikely to matter in the long-term.
• The US PGM operations at Stillwater continue to underperform and have been subject to a massive impairment.
• The most recent initiatives related to battery metals remain of dubious profitability.

Introduction

In a previous article , I discussed Sibanye's stock ( SBSW ), highlighting its cheap valuation and potential for revaluation when PGM prices recover. However, I criticized the company's strategy, pointing out significant strategic mistakes in recent times. Ultimately, I concluded that there are better options for investors looking to speculate on PGM prices....

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