10 Best Gold Penny Stocks to Buy Now

7. Sibanye Stillwater Limited (NYSE:SBSW)

Number of Hedge Fund Holders: 18

Sibanye Stillwater Limited (NYSE:SBSW) is a multinational mining company specializing in precious metals like gold, platinum, palladium, and rhodium. The company runs operations across South Africa, the US, Europe, and Australia, using its global presence to boost growth.

During the latter half of 2024, Sibanye Stillwater Limited (NYSE:SBSW) saw a revenue increase of 7%, mainly from higher gold prices and the addition of Reldan operations. Yet, full-year revenue dipped 1% to $6.12 billion. The company posted $715 million in adjusted EBITDA but suffered a $311 million net loss due to impairments. Excluding impairments, Sibanye reported a profit of $182 million, showing strong core performance.

There were varying trends across the key sites. South African gold units excelled, with EBITDA rising 216% in the second half of 2024. Meanwhile, South African PGM operations struggled, with EBITDA dropping 60% due to weaker metal prices. Sibanye Stillwater Limited (NYSE:SBSW) responded by restructuring US PGM operations, cutting costs by 27%. U.S. recycling operations (PGM and Reldan) added $32 million to adjusted EBITDA. These moves helped the company finish with $853 million in cash at the year-end.

Going forward, Sibanye Stillwater Limited (NYSE:SBSW) aims to cut U.S. PGM production costs to $1,000 per ounce within three years. The company stands to gain from the rising demand for strategic metals, especially in the U.S. market. Yet, challenges remain, including potential legal costs of up to $522 million from a canceled Brazilian mine deal. This liability could affect future cash flow. With strong cash reserves, ongoing restructuring, and exposure to key precious metals markets, Sibanye ranks as one of the best penny stocks.