Entering text into the input field will update the search result below

Sibanye Stillwater: Not A Simple Case

Jun. 01, 2020 10:53 AM ETSibanye Stillwater Limited (SBSW)412 Comments


  • Total US Production and recycling were excellent in the first quarter.
  • The company reported a record adjusted EBITDA of $724 million, a significant improvement compared with the prior-year period of $57.7 million.
  • SBSW is an excellent long-term company. However, it is better to trade the stock short term due to potential disruptions.
  • Looking for a helping hand in the market? Members of The Gold And Oil Corner get exclusive ideas and guidance to navigate any climate. Get started today »

Stillwater mine, near Nye, Montana. (Image courtesy of Stillwater Mining)

Investment Thesis

The Johannesburg-based company Sibanye Stillwater (NYSE:SBSW) provided its production update for the first quarter of 2020. Like many other gold and precious metals producers, Sibanye did very well this quarter.

The South African mines were on their way to normal after experiencing mining restrictions last month due to the COVID-19. On April 14, 2020, the company indicated that it had restarted its precious metals operations which were put on care & maintenance the previous month:

received approval for limited mining and processing at its South Africa operations from April 14, "subject to the implementation of agreed protocols to address COVID-19 related health and safety risks".

Ramaphosa had imposed a 21-day nationwide lockdown which was due to end at midnight on April 16.

Sibanye Stillwater acquired the East Boulder and Stillwater mines in the USA and has been an excellent boost to the company. The US operations have experienced some disruptions.

The platinum group metal and gold producer said in a statement today that it had also taken a wider decision to reduce the number of people working at all its US sites whilst maintaining output from current operations.

However, despite those inconveniences, the company provided an excellent operating update for the quarter ending March 31, 2020. As we all know, the financial results are indicated every six months, which means we will have to wait until the next quarter to get the full picture.

The investment thesis is quite simple. The company is an excellent long-term investment, and I recommend adding SBSW to your premium portfolio, especially after the company decided to diversify and add valuable producing assets in the US. However, it is also essential to trade short term about 30% to 40% of your portfolio to take advantage of the metal prices

ChartData by YCharts

Join my "Gold and Oil Corner" today, and discuss ideas and strategies freely in my private chat room. Click here to subscribe now.

You will have access to 57+ stocks at your fingertips with my exclusive Fun Trading's stock tracker. Do not be alone and enjoy an honest exchange with a veteran trader with more than thirty years of experience.

"It's not only moving that creates new starting points. Sometimes all it takes is a subtle shift in perspective," Kristin Armstrong.

Fun Trading has been writing since 2014, and you will have total access to his 1,988 articles and counting.

This article was written by

Fun Trading profile picture
As an experienced investor, I will help you stay on task more efficiently.

I am a former test & measurement doctor engineer (geodetic metrology). I was interested in quantum metrology for a while.

I live mostly in Sweden with my loving wife.

I have also managed an old and broad private family Portfolio successfully -- now officially retired but still active -- and trade personally a medium-size portfolio for over 40 years.

“Logic will get you from A to B. Imagination will take you everywhere.” Einstein.

Note: I am not a financial advisor. All articles are my honest opinion. It is your responsibility to conduct your own due diligence before investing or trading.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.