Sibanye Stillwater Ltd. (SBSW), an operator of a precious metals mining company, has seen a decline of 5.75% in the pre-market trading session. As a result that, SBSW stock is changing hands at $13.43. The decline has come despite the absence of any stimulating factor or pushing force, like SEC filing or press release. On Wednesday, the stock of SBSW closed the day at $14.25 after increasing some 1.86%. Let us discuss some of the major developments related to SBSW stock.
1H FY 2021 financial results
On the 26th of August, SBSW reported the results for the first half of the fiscal year 2021, which ended on 30th June 2021. According to the details, the company generated revenue of $6,182 million during the first half of fiscal 2021. That depicts an increase of 63% when compared with the results for the first half of the fiscal year 2020. The increased revenue was mainly due to the higher sales volume as well as higher precious metal prices. The cost of sales was about $3,309 million during the period, an increase of 28% when compared with the stats of the previous year. The increase was driven by higher sales volume and higher prices of precious metals. The company’s adjusted EBIDTA was $2,787 million during the period, an increase of 146% when compared with the similar period of 2020. The company generated a profit of $1,740 million for the period, as compared to a profit of $548 million for the equivalent period of 2020. The earnings per basic and diluted share for the six-month period were $0.58 and $0.57. During the first half of fiscal 2020, the basic and diluted earnings per share were $0.21 and $0.19. The company had cash and cash equivalents of $1,829 million at the end of the six-month period. The total assets the company had at the end of the six-month period were $10,262 million. Commenting on the results, Neal Froneman, Chief Executive Officer of Sibanye-Stillwater, praised the performance of the company. He went on to say that the disciplined implementation of the capital allocation framework supported the continued delivery of strategic imperatives.
SBSW partnership with Johnson Matthey
In mid of March, SBSW announced to have entered into a partnership with Johnson Matthey. The partnership was aimed at identifying the mechanism to drive decarburization. It also aimed at the more efficient use of critical metals. The challenge of climate change has forced countries around the world to seek net zero-emission targets. Johnson Matthey is known to be the vanguard for carrying out this mission. SBSW said that the partnership would focus on the development of opportunities to drive tech innovations. It would also ensure more sustainable supply chains for customers.
What’s next for SBSW stock?
The recent past performances of SBSW stock have not been up to the mark. It was primarily due to the impact created by the pandemic on economies around the globe. SBSW stock has declined by some 26% during the previous half-year. But analysts are hopeful that SBSW would bounce back in near future. So, potential investors should keep a close watch on SBSW stock.
