Comment on Sibanye Stillwater
People have been asking me if I have any comments here
Sibanye Stillwater dipped below my entry price of $4.60 today. As I write this, there is a bid of 164,200 shares (just under $750k) on the bid.
So, to answer your questions.
Am I still bullish?
Yes
Why is the stock price falling?
Gold / palladium / platinum price is falling
When will gold / palladium / platinum stop falling?
I have no idea
What will the company do about this?
They started shutting down higher cost shafts / mines months ago
Do they have any balance sheet stress?
No
*****
Cyclical companies are volatile. That’s just how it is. Either accept it or buy something that’s not volatile but may also carry a higher valuation and provide lower returns. There are a lot of risks in Sibanye. Balance sheet is not currently one of them. Basket pricing for their products and political developments in South Africa are the risks. I am comfortable with these risks.
