Sibanye-Stillwater

SBSW

Market cap $12.2B

Does Sibanye Gold Limited (SBSW) have what it takes to be a top stock pick for momentum investors? Let's find out.

After years of waiting, Sibanye Stillwater's cycle finally turned; since September 2025, the stock has returned 84%, yet I think the recovery is early and undervaluation persists. The operating update showed ~$560M EBITDA, triple last year, plus accelerating cash generation; that magnitude suggests SBSW has exited the trough and margins are expanding. South African PGM became the engine: 4E basket price +36%, production +4%, and adjusted EBITDA +213% YoY, offsetting weaker surface output from tailings depletion.

FNY Investment Advisers initiated 429,100-share position in Sibanye Stillwater; estimated trade size ~$4.82 million based on quarterly average pricing. Quarter-end value of the new stake was $4.82 million, reflecting the purchase of 429,100 shares as a new position.

Sibanye Stillwater is reiterated as a Buy, with a unique multi-commodity portfolio and strong Q3 results. SBSW's EBITDA tripled on higher realized prices; a robust cash position and manageable net debt underpin financial strength. The company benefits from elevated precious and industrial metal prices, proactive power security, and a better-than-expected $215M settlement.

Sibanye Stillwater is a diversified global commodity producer, offering exposure to gold, PGMs, silver, lithium, nickel, copper, and more. Despite tripling YTD, SBSW's stock still undervalues its potential, with strong financials, strategic assets, and upcoming catalysts like a likely dividend resumption. SBSW's commodity mix provides a natural hedge for various economic scenarios, benefiting from both precious and industrial metal demand.

I maintain my Buy rating on Sibanye Stillwater as its strategic repositioning and financial turnaround are gaining traction, supported by strong 1H 2025 results. Sibanye Stillwater delivered 127% YoY EBITDA growth to $818M in H1 2025, beating consensus expectations while generating strong free cash flow performance. Management's willingness to restructure low-margin operations and pursue trade remedies against Russian palladium could further enhance SBSW's market position.

Sibanye Stillwater Limited (NYSE:SBSW ) Q2 2025 Earnings Conference Call August 28, 2025 8:00 AM ET Company Participants Charl A. Keyter - CFO, Interim Chief Commercial & Development Officer and Executive Director Charles Carter - Chief Regional Officer of Americas Grant Stuart - Corporate Participant James R.

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Sibanye Stillwater's transformation into a global, diversified metals producer positions it to benefit from rising platinum and gold prices, tax credits, and operational discipline. U.S. platinum operations are now profitable due to higher prices, cost-cutting, and government tax breaks, while South African gold mines have become the company's earnings engine. The balance sheet is stronger thanks to streaming deals and cash flow improvements, even as the company navigates palladium headwinds and volatile commodity prices.

I think that the self-inflicted turmoil and pivot from Europe by Norilsk Nickel (SBSW's rival) creates a massive market vacuum that Sibanye Stillwater is uniquely positioned to capture. Sibanye Stillwater's turnaround is driven by cost cutting, U.S. PGM operations, and surging South African gold profits, with government incentives boosting cash flow. Sibanye's internal turnaround is firing on all cylinders: US operations are cutting costs by 27% while its South African gold division's EBITDA surged 216%.