5 Best African Stocks to Buy Now

2. Sibanye Stillwater Limited (NYSE:SBSW)

Number of Hedge Fund Holders: 18

Sibanye Stillwater Limited (NYSE:SBSW) is a Roodepoort, South Africa-based mining company. The company is considered the biggest producer of platinum, the second biggest producer of palladium, and the third biggest producer of gold globally.

Sibanye Stillwater Limited (NYSE:SBSW) also owns a 50.1% stake in DRDGOLD Limited (NYSE:DRD). Experts believe that the South African operations of the company are a bright spot in its global portfolio. Furthermore, the company has a solid balance sheet and is focused on growing its presence in the raw materials segment for batteries through acquisitions. Sibanye Stillwater Limited (NYSE:SBSW) is considering the precious metals required for batteries as the next growth frontier. Furthermore, it is also believed that the share price of metal mining companies has already priced in the impact of a mild recession along with many other recent developments.

Here’s what Desert Lion Capital said 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)