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....
Read the full article on Seeking Alpha
For further details see:
Sibanye Stillwater: Not Yet Out Of The Woods