Last Updated: 14 Nov 2024
Executive Summary
Sibanye Gold Ltd ADR (SBSW) is a precious metals mining company with operations in South Africa, the United States, Zimbabwe, Canada, and Argentina. The company has a market capitalization of $29.71 billion and an enterprise value of $42.15 billion. The stock is currently trading at $4.03, below its 52-week high of $5.92 and above its 52-week low of $3.08.
Company Overview
Sibanye Gold was formed in 2013 through the merger of Gold Fields and Sibanye Gold. The company is the world's largest producer of gold and the second-largest producer of platinum. Sibanye Gold has a diversified portfolio of operations, including mines in South Africa, the United States, Zimbabwe, Canada, and Argentina. The company also has a number of exploration projects in various countries.
Fundamental Analysis
Sibanye Gold's financial performance has been mixed in recent years. The company has been impacted by a number of factors, including the COVID-19 pandemic, rising costs, and geopolitical uncertainty. In 2021, Sibanye Gold reported revenue of $11.37 billion and net income of $1.13 billion. The company's earnings per share were $1.60.
Sibanye Gold's financial leverage is relatively high, with a debt-to-equity ratio of 0.75. The company's interest coverage ratio is 5.0x, which is adequate. Sibanye Gold's return on equity is -5.25%, which is below the industry average.
Technical Analysis
Sibanye Gold's stock price has been in a downtrend since early 2022. The stock is currently trading below its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is 35.43, which is in oversold territory.
Short Term Outlook
Sibanye Gold's stock price is likely to remain under pressure in the short term. The company is facing a number of challenges, including rising costs, geopolitical uncertainty, and a strong US dollar. The stock's technical indicators are also bearish.
Long Term Outlook
Sibanye Gold's long-term outlook is more positive. The company has a diversified portfolio of operations and a strong track record of production. The company is also well-positioned to benefit from the growing demand for precious metals.
Analyst Recommendations
The consensus analyst rating for Sibanye Gold is "Hold." The average analyst target price is $4.92.
Disclaimer
This report is for informational purposes only and should not be considered investment advice.
