Sibanye Stillwater: Why We Think It's A Risk Worth Taking

Summary

• Investors could chase Sibanye's high-dividend, high-quality attributes to fight inflation.
• Although the floods in Montana pose a renewed challenge, Sibanye's general operations have time to reset after a series of headwinds.
• South African Platinum Group Metals is well-positioned.
• A high dividend payout has likely restrained Sibanye's price appreciation. However, there's a key inflection point arising.
• Global midstream operations remain a concern, but there's some cause for optimism.

Anton Opperman/iStock via Getty Images

In our previous article on Sibanye Stillwater Limited (NYSE:SBSW), we argued that the asset had faced an exaggerated drawdown and that we were buying the dip. Unfortunately, our call was inaccurate, as the stock has lost nearly

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.