We recently compiled a list of the 10 Best Mining Penny Stocks to Buy Now. In this article, we are going to take a look at where Sibanye Stillwater Limited (NYSE:SBSW) stands against the other mining penny stocks.
The global demand for essential metals and materials has been on the rise, helping the mining industry expand. The global mineral market is forecasted to grow at a compound annual growth rate (CAGR) of 6.2%, as per The Business Research Company. The market is forecasted to grow to $3 trillion by 2029, driven by infrastructure upgradation, foreign direct investment (FDI), and automation. Capital inflows to mining projects are potentially growing due to government incentives and technological advancements.
As the metals and mining industry mitigates earnings pressure, it remains financially stable due to flexible shareholder returns and lower debt levels. On one end, due to increasing costs, gold has crossed the $2,000 per ounce mark, and metallurgical coal has surpassed $200 per ton, according to a report by S&P Global. Moreover, as North American producers of steel look to rationalize capacity, Chinese exports have seen an increase regardless of decreasing output.
On the other hand, lithium miners are facing price headwinds, whereas aluminum demand remains stable due to the demand from the transportation and packaging industries. Although M&A remained controlled within the industry, steelmakers were able to continue acquisitions, while miners, on the other hand, are putting efforts toward efficiency and cost-cutting, as technology and capital requirements shape profitability.
Key metals have seen strong price movements in 2025, which reflect the sector’s bullish outlook. Accordingly, gold and silver demand has risen as safe-haven assets due to economic uncertainty. Gold futures have seen a 38.63% increase, year-on-year, as of writing this article, while silver futures recorded an increase of 37.63%. Furthermore, Gold ETFs have seen a record gain of 26% in 2024 since 2010. Due to inflationary pressures and global trade tensions, as well as President Donald Trump’s tariffs, this pattern is expected to continue, fueling investor demand for metals.
On the other hand, industrial metals are also witnessing a growing demand. Lithium demand is expected to reach $9.01 billion by 2025, up from $7.75 billion in 2024, largely due to its use in battery production. As reported in one of the previous Insider Monkey articles, 80% of mined lithium goes toward the production of batteries, which is expected to grow to 95% by 2030. Furthermore, copper demand remains stable, with the market valued at $176.88 billion in 2024, bolstered by China and India’s infrastructure projects. Similarly, according to Zinc.org, Zinc demand is also rising in the renewable energy sector, with consumption of 568,000 tons expected by the solar industry by 2030.
Thus, the mining industry is revolutionizing due to technological advancements, bolstering efficiency and lowering costs. Mine development time has been brought down to nine years from 16, driven by AI and advanced analytics. Likewise, the time to perform geophysical data analysis has been reduced to mere weeks from two years. Furthermore, according to KPMG Mining Outlook 2024, core sample evaluations now take 12 minutes, compared to 45 days previously. Moreover, innovations have helped enhance sustainability for metal recycling. Accordingly, new methods now achieve a 95% recovery rate from steel mill waste, transforming waste into reusable materials used in construction and manufacturing.
However, the industry faces challenges in terms of geopolitical instabilities and changing trade policies. The U.S.-China tariff dispute, including potential policies against American goods, can potentially disrupt the global supply chains, especially those of critical minerals. Moreover, market volatility is still a risk as China holds around 90% of global rare earth refining capacity.
Nevertheless, the mining industry looks toward long-term growth, driven by strong demand for major metals, infrastructure development, and cost-cutting through automation.
Methodology
To curate our list of the 10 Best Mining Penny Stocks to Buy Now, we looked into ETFs, and a stock screener to come up with several top mining stocks trading below $5, as of the time of writing this article. Out of this list, 10 stocks were shortlisted based on their popularity among top hedge funds and positive outlook from analysts. Accordingly, the stocks are ranked in ascending order based on the number of hedge funds holding stakes in the respective stocks, as of Q4 2024. The data for hedge funds was extracted from Insider Monkey’s database, which tracks over 1000 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
Share Price as of the close of March 7: $3.88
Sibanye Stillwater Limited (NYSE:SBSW) is an international precious metals mining company that operates across multiple regions, such as South Africa, Europe, Australia, and the United States. The company yields various metals, including gold and platinum group metals, such as palladium, platinum, rhodium, chrome, nickel, silver, cobalt, and copper.
The company recorded 11.45% year-on-year growth in revenue to roughly $3.17 billion for the second half of 2024, which was fueled by higher gold prices and the inclusion of the Reldan operation. Yet, year-long revenue dropped by 1% to $6.12 billion. The company faced a net loss of $311 million, and the adjusted EBITDA for the year stood at $715 million; however, it would have recorded a profit of $191 million, if the impact of impairment is excluded.
However, Sibanye Stillwater Limited (NYSE:SBSW)’s South African gold segment’s adjusted EBITDA soared 216% due to its strong performance in the second half of 2024. Simultaneously, there was a 27% reduction in total costs due to restructuring its US PGM operations. But, due to weaker metal prices, the South African PGM operations faced headwinds, with EBITDA declining by 60%. Irrespective of these fluctuating annual results, the company’s cash climbed to $880 million, bolstering its liquidity position. At the same time, its total borrowing grew from $1.85 billion to $2.17 billion.
Going forward, within 36 months, Sibanye Stillwater Limited (NYSE:SBSW) plans to lower its total costs for Stillwater operation down to $1,000 per ounce. Moreover, particularly in the U.S., by aligning with government projects, the company expects to benefit from the demand for strategic metals. Hence, it is one of the best penny stocks to buy now.
Overall SBSW ranks 6th on our list of the best mining penny stocks to buy now. While we acknowledge the potential of SBSW as an investment, 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.
