Is it a Good Choice to Invest in Sibanye Stillwater (SBSW)?

Desert Lion Capital, an investment management firm, recently published its second-quarter 2022 investor letter – a copy that can be downloaded here. The Fund returned -0.8% for the month of August, compared to -5% by the JSE All Share Index (J203). Currency was a drag with the USD/ZAR detracting by -3%. . Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Desert Lion Capital mentioned Sibanye Stillwater Limited (NYSE:SBSW) and explained its insights for the company. Founded in 2012, Sibanye Stillwater Limited (NYSE:SBSW) is a South Africa-based gold mining company with a $6.1 billion market capitalization. Sibanye Stillwater Limited (NYSE:SBSW) delivered a -34.93% return since the beginning of the year, while its 12-month returns are down by -35.95%. The stock closed at $8.16 per share on September 26, 2022.

Here is what Desert Lion Capital has to say about Sibanye Stillwater Limited (NYSE:SBSW) in its Q2 2022 investor letter:

“Sibanye Stillwater is one of the largest PGM (platinum group metal) producers in the world with major operations in South Africa and the U.S. On top of its additional gold mining operations in SA, the business has significant upside optionality in its growing lithium and nickel operations which are not yet contributing to earnings and remain unrecognized by the market in SSW’s price.

PGM and gold prices are lower than a year ago and Sibanye Stillwater’s earnings followed suit. Gold operations made a loss during the period due to a wage negotiation labor strike (see chart on next page). Notwithstanding all these headwinds, the company reported H1 2022 earnings per share of R4.23 which was in line with the six months ended December 2021 EPS…” (Click here to see the full text)

Image by Tshekiso Tebalo from Pixabay

Our calculations show that Sibanye Stillwater Limited (NYSE:SBSW) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Sibanye Stillwater Limited (NYSE:SBSW) was in 16 hedge fund portfolios at the end of the second quarter of 2022, compared to 21 funds in the previous quarter. Sibanye Stillwater Limited (NYSE:SBSW) delivered a -23.45% return in the past 3 months.

In December 2021, we also shared another hedge fund’s views on Sibanye Stillwater Limited (NYSE:SBSW) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

Disclosure: None. This article is originally published at Insider Monkey.