SBSW - Sibanye Stillwater: Time To Test The Waters (Rating Upgrade)

2024-06-12 08:55:13 ET

Summary

• We have decided to upgrade Sibanye Stillwater Limited's stock on the basis of an enhanced operational and commodity pricing outlook.
• Upward-sloping PGM and Gold futures curves provide a reason to be positive about precious metals prices, especially considering gold's tail hedge properties.
• Sibanye's U.S. PGM production has improved after a series of externally-driven delays.
• South African operations might improve amid various project expansions and favorable election results.
• A non-dividend-paying Sibanye might discourage many. However, we think it is time to test the waters before a recovery is fully in motion.

Today's article focuses on Sibanye Stillwater Limited ( SBSW ) , a global precious metals miner headquartered in South Africa. We've covered Sibanye extensively during our tenure on Seeking Alpha. However, Sibanye stock's volatility dictates frequent revision.

We last covered Sibanye's stock in February, reiterating our hold rating on the premise of a doubtful valuation and questionable acquisition activities. However, we revised Sibanye's key variables in recent weeks, deeming the stock is aligned toward the upside.

Here's why we are bullish about Sibanye Stillwater's prospects.

A Quick Overview of Sibanye Stillwater

I wanted to provide a quick description of Sibanye Stillwater to those unfamiliar with the firm....

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