We recently published a list of 10 Best Gold Penny Stocks to Buy Now. In this article, we are going to take a look at where Sibanye Stillwater Limited (NYSE:SBSW) stands against other best gold penny stocks to buy now.
The global precious metals market is influenced by economic uncertainty, inflation, and shifting supply and demand patterns. The Business Research Company projects that the global metals market will grow at a CAGR of 5.9% through 2025. The mining sector is expanding at a CAGR of 6.2%, outpacing the broader metals market, and is expected to reach $2,401.85 billion.
Gold prices set new records in 2025, with Reuters reporting spot gold at $2,936.38 per ounce on March 3 and U.S. gold futures at $2,956.10. Central banks are stockpiling gold, which is driving up demand at record rates. Furthermore, investors seek gold as a safe haven during periods of inflation. S&P Global reports that gold futures grew by 34.6% year-over-year as of March 7, 2025, outpacing broader market indices. These trends are reshaping the gold market’s role in finance.
Supply and demand patterns are also shifting as gold now flows from Asian hubs such as Dubai and Hong Kong to the U.S., driven by higher premiums in U.S. futures markets and fears of import tariffs. U.S. Comex gold inventories have jumped 80% since late 2024, and investors are responding to better pricing and arbitrage opportunities.
Meanwhile, silver prices have also surged, reaching $30 per ounce in 2024, the highest since 2011. This increase was driven by inflation, geopolitical instability, and a weaker U.S. dollar. The Silver Institute expects the total silver demand to reach 1.20 billion ounces in 2025 while fabrication demand will exceed 700 million ounces for the first time. Additionally, silver recycling is expected to rise 5% to over 200 million ounces, the highest since 2012.
Platinum supply remains tight, with global production forecast to rise marginally by 0.76% in 2025, reaching 7.32 million ounces, leaving a supply gap of 539,000 ounces. Refined platinum production is expected to fall by 1%, reaching 5.55 million ounces versus 5.63 million in 2024. South Africa’s declining output worsens this shortfall.
Despite these obstacles, technological advances offer some hope. AI-driven exploration has cut mine development time from 16 years to nine. According to KPMG Mining Outlook 2024, geophysical data analysis now takes weeks instead of years. New refining technologies like bioleaching and cyanide-free processing improve efficiency and sustainability, ensuring more secure long-term precious metal supplies.
Our Methodology
To compile a list of the 10 Best Gold Penny Stocks to Buy Now, we first sifted through ETFs and stock screener to gather the top mining stocks under $5. We then selected the 10 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database, which tracks the moves of over 1,000 elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A mining truck loaded with precious metals in an open pit mine.
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.
Overall, SBSW ranks 7th on our list of best gold penny stocks to buy now. While we acknowledge the potential of SBSW, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SBSW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
