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The following True Vine Letter is an excerpt of a Premium True Vine Letter which was originally published on March 23, 2022. Valuation metrics have been updated.
Last year I listened to the audiobooks of
Sibanye Stillwater: Leveraging Its Skills
Summary
- Sibanye Stillwater is leverage its mining and processing know-how to expand into other metals with more promising fundamental outlooks than gold.
- Sibanye Stillwater has earned strong returns on the capital it invested in its 2016 to 2019 acquisition spree. This sets a strong precedent for its current expansion efforts.
- Sibanye Stillwater's core economic assets all have very long lives remaining.
- Sibanye Stillwater is trading for only 4.5 times my 2022 free cash flow estimate.
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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. I have no business relationship with any company whose stock is mentioned in this article.
The True Vine Letter is a publication of True Vine Investments, the investment advisory business of Joshua S. Hall, ChFC, and a Registered Investment Advisor in the U.S.A. The information presented in the True Vine Letter is general in nature and designed for do-it-yourself and professional investors. It does not have regard to the investment objectives, financial situation, and the particular needs of any person who may read this Letter. Recommendations are not personalized investment advice specific to the situation of any one individual, family, or organization. In no way should it be construed as personalized investment advice. True Vine Investments will not be held responsible for the independent financial or investment actions taken by readers.True Vine Letter content is never an offer to buy or sell any security. True Vine Letters include a disclosure of any relevant securities held by Joshua S. Hall or his immediate family. Client portfolios managed by True Vine Investments may hold positions in securities covered in the Letter. Securities in these portfolios may be bought or sold at any time in order for True Vine Investments to satisfy its fiduciary obligations to clients. All data presented by the author is regarded as factual, however, its accuracy is not guaranteed. Investors are encouraged to conduct their own comprehensive evaluation of financial strategies or specific investments and consult a professional before making any decisions. Positive comments made regarding this Letter should not be construed by readers to be an endorsement of Joshua Hall’s abilities to act as an investment advisor.
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