Sibanye Gold: Still A Buy Following Massive Rally

|
About: Sibanye Gold Limited (SBGL)
by: BOOX Research
This article is exclusive for subscribers.
BOOX Research
Contrarian, long/short equity
Summary

SBGL is up 125% in the past six months supported by surging palladium and platinum prices along with an overall bullish environment for precious metals miners.

We think the stock still has value as it trades at a discount to peers by some valuation metrics.

Firming profitability, declining leverage, and the potential for a dividend initiation in 2020 support a positive outlook.

Sibanye Gold Limited (NYSE:SBGL) is the world’s largest producer of platinum, the second-largest producer of palladium, and number three in terms of gold output. The company, based in South Africa along with major