Sibanye: Why We're Buying The Dip

Summary

  • Sibanye's labor union issues are in the balance from an anecdotal vantage point.
  • The company's longer-term trajectory suggests that it could absorb rising input costs.
  • The stock's undervalued on a normalized basis, suggesting that it's far from reaching its cyclical peak.
  • The market's geared towards dividend, quality, and value stocks, which suits Sibanye stock.
  • A quantitative risk analysis implies that the stock is a risky bet, but we remain optimistic.

Yellow large dump truck in Utah copper mine seen from above

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Sibanye (NYSE:SBSW) has been a victim of mining stocks facing a systemic downturn due to decreasing metal prices and slowing economic activity in China. Additionally, Sibanye-Stillwater has faced significant union pressure, which has added an idiosyncratic

This article was written by

Pearl Gray is a proprietary investment fund and independent market research firm specialising in systematic analysis.Our latest work on SA primarily covers: Bonds, Preferreds, REITs, with an occasional drift.Primary Sectors: Financials and Real Estate.Mission: To discover actionable total return ideas at the nexus of rigorous academic theories, practical experience, and common sense.Kindly note that our published content is dispensed as Independent Analysis and Doesn't Constitute Financial Advice. For any content-related concerns, contact our Head of Research: Steve Booyens, CFA or leave a message in the comments section.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of SBSW either through stock ownership, options, or other derivatives. 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.

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