I have been pounding the table on gold and platinum, and a bull on the stock of Sibanye-Stillwater. Yes, there was a remarkable and recent opportunity to buy this stock in the low $3 range. It was a giveaway. Today, SBGL is $4.8, near the top of its range over the past few years. It is my largest position, and I am not a seller. In fact, I do believe that the combination of being a very large, albeit high cost gold producer, the 2nd largest palladium producer, and the world's largest platinum miner, all fully integrated, suggests a dramatically higher price for the stock.
While the market has concerns with South African assets, a looming negotiation with the local platinum miner's union, and SBGL's debt load, my judgement is that CEO Neal Froneman is a terrific, insightful, disciplined and wise leader who will navigate the union demands in a way that is fair and pay down debt. He has already managed the South African exposure with the prescient investment in the Stillwater mine, in Montana.
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