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Sibanye Stillwater Limited Sponsored ADRSibanye Stillwater Limited Sponsored ADRSibanye Stillwater Limited Sponsored ADR

Sibanye Stillwater Limited Sponsored ADR

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Our opinion on the current state of SIBANYE-S(SSW)Sibanye (SSW) is a dynamic mining house on an aggressive acquisition spree, accumulating assets in the platinum and gold sectors both in South Africa and the United States, and now expanding into base metals and so-called "green" metals crucial for modern technologies like electric vehicle batteries. Led by Neal Froneman, a respected figure in the mining industry known for his tenacity and deep expertise, the company is under guidance to potentially double in size before his projected retirement around 2024/5. Sibanye has expressed interest in expanding into crucial battery metals such as vanadium, copper, nickel, and lithium. On 1st June 2021, Sibanye announced a share buy-back program to repurchase up to 5% of its issued shares. The company furthered its investment in green technology by increasing its stake in Keliber, a Finnish lithium producer, to 80% for about R7.7 billion on 30th June 2022. On 9th November 2023, Sibanye also ventured into metal recycling by acquiring Reldan, a U.S.-based company, for $211.5 million. Despite recent fluctuations in share price, which some investors see as a buying opportunity, the company's strategic maneuvers are generally viewed positively, bolstered by Froneman's belief that the shares are undervalued—a sentiment echoed by some market analysts. However, its financial performance has shown vulnerabilities linked to volatile metal prices. On 25th October 2023, the company initiated section 189 consultations for retrenching 4,095 employees, and on 6th November 2023, it secured a five-year deal with AMCU at its Kroondal PGM operation that includes a minimum 6% per annum wage hike. Further financial maneuvers included a $500 million convertible bond issued on 21st November 2023, intended to pay 4% to 4.5% interest until 2028, which unfortunately led to a 20% drop in the share price due to shareholder turnover. For the year ending 31st December 2023, Sibanye reported an 18% decline in revenue and a significant loss of R37.4 billion, with Froneman commenting on the temporary nature of the PGM price weakness and an optimistic view on future demand. As of 11th April 2024, the company announced another section 189 process, planning to retrench 3,107 employees and about 900 contractors from its gold mines. Despite these challenges, the first quarter of 2024 showed a 3% increase in 4E PGM production, significant gains in Sandouville nickel production, and steady progress in the Keliber lithium project. Technically, Sibanye's shares have been in a downward trend since March 2022, largely due to falling commodity prices. However, a significant turnaround occurred on 2nd April 2024 when the shares broke through the downward trendline at a price of 2230c, subsequently rising to 2290c. This movement suggests a potentially volatile yet opportunistic future for investors, contingent on continued strategic management and market conditions.
JSE:SSW
by PDSnetSA
Our opinion on the current state of SIBANYE-S(SSW)Sibanye is a prominent mining house that has been aggressively expanding its portfolio, acquiring platinum and gold mines in South Africa and the United States, and is now diversifying into base metals and minerals, particularly those essential for green technologies. The company, under the leadership of Neal Froneman, known for his robust expertise and experience in the mining industry, is on a mission to double its size before his planned retirement around 2024/5. Sibanye has shown interest in crucial minerals for electric vehicle batteries, such as vanadium, copper, nickel, and lithium, aligning its operations with future market demands. Notably, on 1st June 2021, Sibanye announced a share buy-back program to repurchase up to 5% of its issued shares. Further solidifying its position in the lithium market, it increased its stake in Keliber, a Finnish lithium producer, to 80% on 30th June 2022, for about R7.7 billion. Additionally, the acquisition of Reldan, a US-based metals recycler, for $211.5 million on 9th November 2023, underscores its strategic expansion into recycling essential metals. Despite these strategic moves, Sibanye has faced challenges, including a significant share price drop, which has been viewed by the company’s leadership as a buying opportunity. Froneman has expressed that the shares are undervalued, a sentiment supported by their aggressive expansion and diversification strategy. However, the volatile prices of the metals they extract remain a pivotal factor in the company's financial health. In the latter part of 2023, Sibanye initiated Section 189 consultations to retrench 4095 employees, reflecting ongoing restructuring efforts within the company. Moreover, it secured a five-year deal with AMCU at its Kroondal PGM operation on 6th November 2023, ensuring a minimum 6% annual wage increase. In a move to bolster its finances, Sibanye announced on 21st November 2023 the issuance of a $500 million convertible bond, although this led to a 20% drop in the share price as some investors exited their positions. For the year ending 31st December 2023, Sibanye reported an 18% decrease in revenue and a significant loss of R37.4 billion. Despite these figures, Froneman remains optimistic about the non-structural nature of the PGM price weakness and anticipates a recovery based on favorable demand indicators. As of 11th April 2024, further restructuring was announced with Section 189 inquiries for the retrenchment of 3107 employees and around 900 contractors in its gold mines, indicating continued challenges in maintaining operational efficiency. Technically, Sibanye’s shares have been in a downward trend since March 2022, primarily due to falling commodity prices. However, an upward trend break on 2nd April 2024 at 2230c suggested a potential turnaround, with the share price subsequently rising to 2495c. Despite this recent uplift, the stock remains a volatile investment tied closely to the fluctuations of commodity markets.
JSE:SSW
by PDSnetSA
SSWPart of my note for tomorrow: SSW Sibanye Stillwater was not included in yesterday’s (published) Tactical Trading Guide as it was not one of the largest 40 in terms of market capitalization. It did however appear on the technical summary as ‘high bearish momentum/approaching oversold’. In terms of the Tactical Trading Guide (my raw/sorted data), I noticed that yesterday’s pre-market reading (Tuesday end of day) stated the following for the short term (1 to 10 days) time frame: ““Reward-to-risk becoming attractive for a small buy/long position”. Yesterday we saw the share being bought up(at the previous swing lows to end the day with a +4.5% gain. From a price momentum perspective, there is lot’s of work/repair to be done however, the candle structure is encouraging and may be the start of the development of a technical base. Yesterday's short term reading (1 to 10 days) is as follows: "Attempting a rebound following a downward trend. May stabilize (consolidate) further before continuing higher."
JSE:SSW
by techpers
Our opinion on the current state of SSWSibanye Stillwater (SSW), under the leadership of Neal Froneman, has embarked on an aggressive expansion strategy, diversifying its portfolio from traditional gold and platinum mining operations in South Africa and America to include base metals and minerals, particularly those essential for "green" technologies like vehicle batteries. Froneman, renowned for his toughness and expertise in the mining sector, has expressed ambitions to double the company's size before his anticipated retirement around 2024/25. This ambition is reflected in the company's strategic acquisitions and investment in minerals such as vanadium, copper, nickel, and lithium, crucial for the burgeoning electric vehicle (EV) market. The company's proactive measures, including a share buy-back program announced on 1st June 2021 and strategic investments in lithium production through increasing its stake in Finnish producer Keliber to 80% for approximately R7.7 billion on 30th June 2022, underscore its commitment to growth and adaptation to market demands. Further, the acquisition of Reldan, a US-based metals recycler, for $211.5 million on 9th November 2023, highlights Sibanye's expansion into recycling, a key component of sustainable metal supply chains. Despite these strategic initiatives, Sibanye has faced challenges, including workforce retrenchments and the impact of wage agreements, such as the five-year deal with AMCU at its Kroondal PGM operation announced on 6th November 2023. The company's financial performance for the year ending 31st December 2023, which reported an 18% decrease in revenue and a significant loss of R37.4 billion, reflects the volatile nature of commodity markets and the operational challenges faced by the mining sector. The issuance of a convertible bond to raise $500 million on 21st November 2023, coupled with a subsequent 20% drop in share price, further exemplifies the financial market's sensitivity to corporate financing strategies and their potential impact on shareholder value. Despite these setbacks, the CEO's confidence in the temporary nature of PGM price weaknesses and the anticipated recovery in demand underscores a positive outlook for the company's core operations. Given the downward trend in Sibanye's share price since March 2022, largely attributed to falling commodity prices, potential investors are advised to exercise caution. Waiting for a breakout above the downward trendline could offer a more strategic entry point, considering the cyclical nature of commodity markets and the company's ongoing efforts to adapt and grow its diversified mining and processing operations. Sibanye's strategic vision and its execution, particularly in expanding into green metals and recycling, position it as a forward-thinking player in the global mining industry, with potential for recovery and growth as market conditions evolve.
JSE:SSW
by PDSnetSA
Our opinion on the current state of SSWSibanye-Stillwater (SSW) has emerged as a formidable force in the mining sector under the leadership of Neal Froneman, known for his strategic acumen and industry expertise. The company's aggressive acquisition strategy has significantly expanded its portfolio, making it the world's largest producer of platinum group metals (PGMs) and positioning it as a major player in the production of metals crucial for the green economy, such as lithium, vanadium, copper, and nickel. The acquisition of Stillwater Mining Company in the United States was a pivotal move, enhancing Sibanye's presence in the palladium market but also increasing its debt burden, which has since been substantially managed. Sibanye's growth trajectory includes strategic investments in green metal production, such as its intention to increase its stake in the Finnish lithium producer Keliber, and the acquisition of Reldan, a U.S.-based metals recycler. These moves align with global trends towards electrification and sustainability, potentially securing the company's future in the evolving energy landscape. The company's proactive approach to labor relations and operational efficiency, as evidenced by its share buy-back program and negotiations with labor unions, underscores its commitment to sustainable growth and stakeholder engagement. However, the recent announcement of significant job retrenchments and the issuance of a convertible bond to raise $500 million have impacted its share price and investor sentiment. Sibanye's financial performance has been affected by the fluctuating prices of PGMs, leading to a considerable decline in headline earnings per share (HEPS) in the period ending December 2023. This highlights the inherent volatility of the commodities market and the challenges of maintaining profitability in a fluctuating economic environment. Investors considering Sibanye-Stillwater should be mindful of the company's ambitious expansion into base and green metals, its strategic management, and its efforts to reduce debt and enhance operational efficiency. However, the company's future performance will largely depend on commodity prices and its ability to integrate and optimize its acquisitions. As the share price is currently experiencing a downward trend, potential investors may want to wait for a positive break in this trend as a more favorable entry point.
JSE:SSW
by PDSnetSA
Our opinion on the current state of SSWSibanye Stillwater (SSW) has emerged as a significant force in the global mining industry, primarily known for its strategic acquisitions that have expanded its portfolio into platinum group metals (PGMs) and gold, both in South Africa and the United States. Under the leadership of Neal Froneman, a figure renowned for his strategic acumen in the mining sector, Sibanye has made notable strides, including the acquisition of the Stillwater palladium mine in America. This move significantly increased the company's debt but also positioned it as a major player in the palladium market. The subsequent acquisition of Lonmin expanded its PGM operations, though it came with considerable job losses. Sibanye's ambition doesn't stop at precious metals; it's also venturing into base metals and minerals crucial for green technologies, including vanadium, copper, nickel, and lithium. This strategic diversification aligns with global trends towards sustainable energy and electric vehicles, positioning Sibanye to capitalize on future demand for battery metals. In addition to its operational expansions, Sibanye has actively engaged in shareholder-friendly actions, such as a share buy-back program announced in June 2021. Its investment in Keliber, a Finnish lithium producer, further underscores its commitment to becoming a significant player in the battery materials market. The acquisition of Reldan, a US-based metals recycler, for $211.5 million in November 2023, adds to its portfolio of recycling operations, highlighting its focus on sustainability and the circular economy. The company's labor relations strategies, including a 5-year wage deal with the Association of Mineworkers and Construction Union (AMCU), demonstrate its ability to manage operational risks and ensure stability. However, the necessity for retrenchments, as seen at Kloof mine, and the issuance of a convertible bond in November 2023, which led to a significant share price drop, indicate the complex challenges it faces in maintaining financial health amid fluctuating metal prices. Despite a stark decline in HEPS for the year ending December 2023, attributed to lower metal prices and substantial impairments, Sibanye's operational performance remains robust, with PGM production aligning with guidance. This resilience, coupled with strategic management and diversification into future-facing metals, suggests potential for long-term growth. However, the share's performance, influenced by broader commodity price trends, suggests caution. The recommendation to wait for a breakout from its current downward trend before considering further investment reflects the need for clear signals of a turnaround. With Sibanye's strategic positioning and management's bullish outlook on its valuation, the company represents a compelling, albeit cautious, investment opportunity, particularly for those looking to leverage the anticipated growth in green technologies and sustainable mining practices.
JSE:SSW
by PDSnetSA
$JSESSW - Sibanye: Looking More Bullish On Technical IndicatorsSee link below for previous analysis. It's been tough going for Sibanye since reaching an all time high in March 2022. A 78% drop saw price plummet to 1756 before bulls came in to nibble. The question is, has the stock bottomed at 1756? Here are a few technical reasons to be bullish: *Elliott Wave count suggests wave (C) is complete having unfolded in an impulse. *Price has broken the upper trendline with wave (C). *Wave (C)/MACD made a double convergence which is a bullish sign implying downward momentum is waning. With all these indications one can never be certain so I will keep a close eye on 1756 as my invalidation level.
JSE:SSWLong
by Loyiso_BlaqueSoros_Mpeta
Our opinion on the current state of SSWSibanye (SSW) is a mining house which has been on a rapid acquisition trail accumulating platinum and gold mines in South Africa and America and is now broadening its scope to include base metals and minerals, especially so-called "green" metals. The company is run by Neal Froneman who is well-known in the mining industry for his toughness, expertise, and experience. The acquisition of the Stillwater palladium mine in America was a brilliant move, but it added $2,2bn of debt to SGL's balance sheet which left it very highly geared. That debt has now been substantially cleared. Sibanye also bought Lonmin for shares which gave it a very valuable extraction plant but resulted in more than 13 300 job losses. Sibanye is now the world's largest producer of platinum group metals (PGMs). Froneman has said that he intends to retire in about 2024/5 but intends to double the size of the company before he does. Sibanye is also considering moving into the base minerals used in motor vehicle batteries like vanadium, copper, nickel, and lithium. On 1st June 2021 the company announced a share buy-back program to repurchase up to 5% of its issued shares. On 30th June 2022 the company announced its intention to increase its stake in Keliber, a Finnish lithium producer to 80% at a cost of about R7,7bn. On 9th November 2023 the company announced that it is to acquire Reldan, a US-based metals recycler, for $211,5m. In its results for the six months to 30th June 2023 the company reported headline earnings of R5,89bn compared to R11,94bn in the previous period. The company said, "The impacts of the precipitous decline in PGM prices and operational disruptions at our US and European regions, were cushioned by a significantly improved financial contribution from the SA gold operations". In an update on the 3 months to 30th September 2023 the company reported, "SA gold operations generated R344m (US$19m) adjusted (Adj) EBITDA, a R1.2bn (US$67m) turnaround; ongoing S189 process at Kloof 4. US PGM operations resume planned mine production run rate in October 2023 driving improved outlook for production for Q4 2023". Technically, the upward trend which was in place since July 2018 came to an end in March 2021 reflecting weaker commodity prices, loadshedding and the flooding at Stillwater. A notable achievement was the 5-year wage deal which locks in wage increases of 6,3%. We believe that in time Sibanye will continue to make new all-time record highs in time in due to superb strategic management - so this drop in the share price is probably a buying opportunity. Froneman believes that Sibanye shares are undervalued and we agree with him, but everything will depend on the prices of the metals which he sells. On 14th September 2023 the company announced that it had commenced section 189 consultations for the retrenchment of 2389 employees at Kloof mine. On 6th November 2023 the company announced that it had made a five-year deal with AMCU at its Kroondal PGM operation for a minimum 6% per annum wage hike. On 21st November 2023 the company announced that it would raise $500m by issuing a convertible bond that will pay 4% to 4,5% until it can be converted in 2028. The news caused some shareholders to switch out of the shares resulting in a 20% drop in the share price.
JSE:SSW
by PDSnetSA
UPDATE: Sibanye drops another 23% almost at targetYes we made a probability prediction on this large move down. It's close to the target of R16.89. But it's never good betting or hoping for a stock to crash and burn. There is no scrip to short, so the only good thing about this analysis is brining awareness to investors who think it's cheap to buy and then they wake up 23% down... This is a reminder that when markets are dropping, they are dropping for a reason. They aren't falling to go back up - They aren't roller coasters... So don't think you've caught the bottom when the bottom is still a while away. We can expect more downside and with Sibanye-Stillwater launching a US$500 million senior unsecured guaranteed convertible bonds coming in 2028. We can expect more turbulence. Be careful out there. It's a moshpit for those who aren't risk averse.
JSE:SSWShort
by Timonrosso