10 Most Undervalued Silver Mining Stocks to Buy According to Analysts

4. Sibanye Stillwater Limited (NYSE:SBSW)

Average Upside Potential: 36.44%

Number of Hedge Fund Holders: 18

Forward P/E ratio: 4.99

Sibanye Stillwater Limited (NYSE:SBSW), a global precious metals producer, operates across Europe, the U.S., Australia, and South Africa. In addition to expanding into recycling operations through the Reldan acquisition, the company mines nickel, silver, copper, gold, chrome, and platinum group metals (PGMs). It is one of the most undervalued stocks to buy.

Fueled by higher gold prices and contributions from Reldan, revenue rose 11.45% year-over-year to $3.17 billion for the second half of the year. Despite this, adjusted EBITDA stood at $715 million as full-year revenue dropped by 1% to $6.12 billion. Sibanye Stillwater Limited (NYSE:SBSW) could have posted a $191 million profit if impairments had been excluded; however, it reported a net loss of $311 million.

Furthermore, production results differed across segments. Backed by the Kroondal acquisition, South African PGM production grew 4% year-over-year to 1.83 million 4E ounces. Additionally, due to mine closures and seismic activity, total gold production dropped 16% to 543,000 ounces. Sibanye Stillwater Limited’s (NYSE:SBSW) total revenue from silver amounted to $53 million, and it also sold 804,429 ounces of silver in the second half of 2024. Its newly acquired Reldan recycling unit generated $15 million in adjusted EBITDA, increasing annual production and contributing to the sale of 1.7 million ounces of silver and other metals.

Moreover, by aiming to reduce total costs for Sibanye Stillwater Limited (NYSE:SBSW) operations to $1,000 per ounce within 36 months, the company seeks to optimize expenses. To support Sibanye Stillwater’s broader strategic initiatives, Reldan’s operations are forecasted to produce between 2 and 2.3 million ounces of silver in 2025. However, it faces potential legal liabilities of up to $522 million due to a canceled Brazilian mine deal, and the company will not issue a final dividend for 2024.