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. Although 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 six 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 0.01 x 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 zero debt. Not to mention that they also paid a half-year dividend of $0.112 on the ADR, which equated to just under $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. At the Stillwater 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 Keliber lithium project in Finland is on schedule and developing great.
It will 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 $5.50. We see the bottom reached and view this as a favorable entry price. The stock is trading around EUR 1.30-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 in the direction of $2,160 per ounce now.
Platinum has reached our lower price target, around $860 per ounce, and turned up. Prices of $980-$1,000 should be in here soon. Palladium has touched down exactly at $1,120 per ounce, which corresponds exactly to our lower price target. Here, we have reached a double bottom, which should hold. Here, too, a price turnaround could be in the offing, with 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.
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