Sibanye Stillwater Limited (NYSE:SBSW)
Number of Hedge Fund Holders: 18
Share Price as of the close of March 7: $3.88
Sibanye Stillwater Limited (NYSE:SBSW) is an international precious metals mining company that operates across multiple regions, such as South Africa, Europe, Australia, and the United States. The company yields various metals, including gold and platinum group metals, such as palladium, platinum, rhodium, chrome, nickel, silver, cobalt, and copper.
The company recorded 11.45% year-on-year growth in revenue to roughly $3.17 billion for the second half of 2024, which was fueled by higher gold prices and the inclusion of the Reldan operation. Yet, year-long revenue dropped by 1% to $6.12 billion. The company faced a net loss of $311 million, and the adjusted EBITDA for the year stood at $715 million; however, it would have recorded a profit of $191 million, if the impact of impairment is excluded.
However, Sibanye Stillwater Limited (NYSE:SBSW)'s South African gold segment’s adjusted EBITDA soared 216% due to its strong performance in the second half of 2024. Simultaneously, there was a 27% reduction in total costs due to restructuring its US PGM operations. But, due to weaker metal prices, the South African PGM operations faced headwinds, with EBITDA declining by 60%. Irrespective of these fluctuating annual results, the company’s cash climbed to $880 million, bolstering its liquidity position. At the same time, its total borrowing grew from $1.85 billion to $2.17 billion.
Going forward, within 36 months, Sibanye Stillwater Limited (NYSE:SBSW) plans to lower its total costs for Stillwater operation down to $1,000 per ounce. Moreover, particularly in the U.S., by aligning with government projects, the company expects to benefit from the demand for strategic metals. Hence, it is one of the best penny stocks to buy now.
Overall SBSW ranks 6th on our list of the best mining penny stocks to buy now. While we acknowledge the potential of SBSW as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SBSW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.