Van Eck Associates Corp. announced on Tuesday it has reduced its ownership of Sibanye-Stillwater Ltd. (SBGL, Financial) by 16.6% to approximately 199.6 million ordinary shares.
Van Eck now holds about 8.81% of the company's outstanding shares.
Sibanye-Stillwater closed at $2.5 a share on Tuesday, down 0.4% at the end of regular trading hours. The stock lost 40% for the 52 weeks through Sept. 25 and underperformed the Van Eck Vectors Gold Miners exchange-traded fund (GDX, Financial) by 22%.
According to GuruFocus, the stock is trading slightly above the 50-day simple moving average line, near the 100-day SMA line and far below the 200-day SMA line.
Other indicators on Sibanye-Stillwater:
- Market capitalization is $1.34 billion.
- The 52-week range is $2.02 to $5.66.
- The 14-day relative strength indicator is 53.27, suggesting it is neither overbought nor oversold.
- The price-book ratio is 0.21 times, below the industry median of 1.74 times.
- The trailing 12-month EBITDA margin is 18%, below an industry average of 23%.
- GuruFocus has assigned a financial strength rating of 4 out of 10.
The recommendation rating is 1 out of 5, which is the result of two buy and one hold recommendations.
One analyst assigned a price target of $5.90 per share.
Sibanye-Stillwater has about 2.26 billion shares outstanding.
According to GuruFocurs, Institutions hold about 14.3% of the company's total outstanding shares.
Among the top fund holders of Sibanye-Stillwater, Van Eck has the largest position. The second-largest fund holder is Exor Investments with a 7.81% stake.
Over the last 10 days of trading, the company also reported:
- A reduction in the company’s leverage. Sibanye-Stillwater has repurchased approximately $415 million worth of high-yield notes and convertible bonds, retiring about 30% of its long-term debt. With the transaction, the South African miner expects to achieve a reduction of $25 million in annual interest costs.
- An agreement with Regulus Resources (RGLSF, Financial) for the Altar copper-gold project in Argentina. The deal will unlock value for Sibanye-Stillwater and its shareholders. The company will receive upfront payments of up to $15 million and retain specific interest stakes into the Argentinian project, both directly and indirectly, through Aldebaran Resources Inc., which was recently spun off of Regulus.Â
Sibanye-Stillwater is a precious metal mining company. The miner produces 4E platinum group metals and gold in South Africa and 2E platinum group metals in the U.S.
The 4E platinum group metals includes platinum, palladium, rhodium and gold. The 2E platinum group metals includes platinum and palladium.
For full fiscal 2018, Sibanye-Stillwater is projecting a 4E PGM production of 1.15 million ounces at an all-in sustaining cost of $825 to $860 per ounce of metal sold. The gold production guidance from South African operations is between 1.17 million and 1.21 million ounces at an AISC of $1,227 to $1,263 per ounce of metal.
In the U.S., Sibanye-Stillwater is projecting a 2E PGM production of 580,000 ounces to 610,000 ounces at an AISC of $640 to $680 per ounce of metal.
Sibanye-Stillwater guided for approximately $544 million in capital expenditures.
Disclosure: I have no positions in any security mentioned in this article.
