Sibanye Stillwater Limited (SSW) Earnings Call Transcript & Summary

Wonderful good day to the update of Sibanye Stillwater gold, platinum and palladium on Commodity-TV ladies and gentlemen. The share price of Sibanye Stillwater has been under brutal pressure for some time now. Also, the company is profitable. Some analysts have downgraded the company, but in the long-term, one is rather positive. This opens an entry opportunity in this diversified great company that is fully on the future metals such as nickel, copper in recycling, soon again, uranium, but also, they are in gold, rhodium, ruthenium, chrome and possibly soon copper. Also, they made a profit of over $427 million in the first 6 months this year. Of course, the lower platinum and palladium prices had a negative impact. But the gold business in South Africa stabilized and turned around for the better with $332 million EBITDA. The company has a strong financial position with just point 0.01x net debt to adjusted EBITDA, which equates to just $14 million net debt. For a company of this size, an incredibly great ratio and almost 0 debt. Not to mention that they also paid a half year dividend of USD 11.2 on the ADR, which equated to just under USD 0.03 per share. The PGM business in South Africa is one of the cost [ leaders ] in the industry and the U.S. PGM business is slowly recovering. It is still bought a West mine. The shaft has been repaired and they are looking much better for the second half of the current year. Also, they just reported that the caliber leasing project in Finland is on schedule and developing great. If we produce battery grade lithium hydroxide starting in 2025 and the capital is fully funded for construction. Sibanye Stillwater is in a great position and has had a lot to deal with in the past. However, we are positive about the future and are taking advantage of the low prices to rebuy. The chart of the ADR has now arrived at our lower price target calculation at around USD 5.5. We see the bottom bridge and view this as a favorable entry price. The stock is trading around EUR 1.30 to EUR 1.35, EUR 1.36, which is in line with that. Gold has left its artificially depressed level and made up for everything within a week. The chart looks great, and we could imagine that it can go further into the direction of $2,360 per ounce now. Ruthenium has reached our lower price target around $860 per ounce and turned up. Prices of $980 to $1,000 should be in here soon. Palladium has touched down exactly at $1120 per ounce, which corresponds exactly to our lower price target. Here, we have reached a double bottom, which should hold here to a price turnaround could be in the offing of price targets of $1,300 per ounce. All this should be positive for Sibanye Stillwater. If there is further relief in the operational area, then the share price should move quickly upwards again in 2024. The dividend provides downside support for the stock. We see a 100% share price potential for 2024 in both categories. You can also find all the information on our Commodity-TV up in German and English as well as everything about commodities. We appreciate the like. And more importantly, subscribe to our TV channel. Thanks for that. Please note the following disclaimer. The stock discussed is part of the SSC mining Special Situation certificate. And of course, I'm a shareholder in this great company. Thanks for watching us and bye-bye from Switzerland.