Holding the faith
NEWS ANALYSIS: Looking beyond Sibanye-Stillwater’s bad news
Investor sentiment remains positive on Sibanye-Stillwater — despite some looming costs in the short term
By the end of a week in which Sibanye-Stillwater announced the retrenchment of almost 7,000 employees and contractors at loss-making operations, a proposal to allow bondholders to convert to equity and a warning that it would report a loss of at least R4.6bn for the year to December, its shares rose 10.9% to R19.84. In the same week, the Public Investment Corp raised its stake in the group to 10.83% from 8.02%, VanEck increased its stake to 10.1% from 7% and Investec from 4.1% to above 5%. Of 16 analysts polled by Bloomberg, six rate the shares a "buy" and 10 rate them a "hold". It may look as if shareholders weren’t listening to the bad news, but most of it was already known and investors are looking beyond it.
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