Sibanye Stillwater’s stock has heavily underperformed despite strong gold prices, primarily due to struggles in the platinum group metals (PGM) market, rising costs, and labor risks. While it trades at a significant discount to its net asset value, US investors face high risk, betting on PGM recovery, successful restructuring, and stable South African operations. The company’s dividend is also less reliable, making it a speculative play for those comfortable with high volatility and emerging market risks.
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Sibanye Stillwater Stock Sinks Again: Bargain Gold Play or Value Trap for US Investors?
Sibanye Stillwater’s stock has heavily underperformed despite strong gold prices, primarily due to struggles in the platinum group metals (PGM) market, rising costs, and labor risks. While it trades at a significant discount to its net asset value, US investors face high risk, betting on PGM recovery, successful restructuring, and stable South African operations. The company’s dividend is also less reliable, making it a speculative play for those comfortable with high volatility and emerging market risks.