ABOUT SIBANYE GOLD
📊 Sibanye Gold Ltd. (trading as Sibanye-Stillwater) is an independent multinational precious metal mining group that operates gold and platinum group metals operations in South Africa and the United States. It is the third-largest producer of platinum and palladium globally and counts among the world’s top-10 gold companies.
📊 The company’s Gold Division includes the Cooke, Kloof and Driefontein operations in the Witwatersrand of Gauteng, and the Beatrix operation in the Free State of South Africa. This segment also owns and operates extraction and processing facilities at which gold-bearing ore is treated and beneficiated. The Platinum Division was formed when the company purchased Aquarius Platinum in April 2016.
📊 Its assets comprise 50% stakes in the Mimosa and Kroondal mines, and a 91% stake in Platinum Mile. The group bought the Stillwater Mining Company in 2017. The latter owns platinum producing operations in Montana in the U.S. This acquisition represents the biggest PGM transaction in more than a decade.
📊 The company’s projects are grouped into two regions: The Southern Africa region and the Americas region. Sibanye Gold Ltd. produces a mix of metals than includes gold and platinum group metals (PGMs).Sibanye’s product portfolio comprises gold, PGMs and by-products.
📊 The company trades on the Johannesburg Stock Exchange (JSE) under the stock symbol “SGL”. Its market capitalization on the JSE is R40 billion. The company’s major shareholders are Gold One International Ltd., Public Investment Corporation, Van Eck Associates Corporation and Old Mutual.
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VISION & VALUES OF SIBANYE GOLD
- Sibanye Gold Ltd. has made huge strides in its efforts to diversify into the PGM sector through acquiring Aquarius Platinum and Stillwater Mining. The decision to purchase these companies came amongst volatile market conditions in the South African mining sector and production disruptions due to strikes. The company’s high quality gold mining assets makes it an attractive proposition for serious investors.
- Stillwater Mining also has a proud history of being the lowest-cost PGMs producer globally. It also owns the highest grade PGM mines in the world. Some of the largest financial institutions on the globe supported these acquisitions. The company’s shareholders also welcomed these purchases. This is testimony to the support Sibanye Gold Ltd. enjoys from its investors and partners.
- The acquisition of Stillwater Mining has cemented the company’s position as a globally competitive precious metals company. This boosts investor confidence and shareholders can therefor buy or sell company shares in the expectation of sound dividends and returns.
- Aquarius Platinum’s integration of operations in South Africa is progressing well. Sibanye Gold’s operating model has already produced positive financial results and increased performance. The company has also managed to reduce operating costs by 12% and platinum production is being sustained at the planned levels.
In the company’s Gold Division the closing of Cooke 4 shaft in September 2016 resulted in slightly lower gold production in the first quarter of 2017.
- The depreciation in the rand-dollar exchange rate also impacted negatively on the gold price, which dropped by 14%. The appointment of two new senior managers boasting collective experience of more than 30 years in the industry has significantly strengthened this division.
MARKET PERFORMANCE OF SIBANYE GOLD
- The company’s live online financial charts reflect a considerable increase in its gold share price since the completion of the Stillwater transaction. This purchase produces very positive results for the company and its shareholders.
- Analysts forecast that the share price will continue to strengthen in the foreseeable future. They all agree that Sibanye Gold shares are currently a very lucrative buy.
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Before buying any stock or share one has to consider a few factors.
STEP 1: PROPER RESEARCH IS ESSENTIAL
Upon deciding you want to buy SIBANYE GOLD Stocks / Shares, it is critical for the serious investor to do proper research into the said company. Its values should align with those of the investor’s current portfolio. An investor needs to familiarise himself with the basics and history of the company, as well as its leadership and performance in the market. Its company reports should also be scrutinized.
Consultation with a brokerage firm can also assist in determining whether investing in a specific company will complement the investor’s current portfolio. The investment “risk ladder”, which identifies asset classes based on their relative riskiness, is another useful tool when determining which company’s stock / share is the best to buy.
STEP 2: CALCULATE THE AMOUNT OF INVESTMENT IN SIBANYE GOLD STOCKS / SHARES
It is important for an investor to monitor his total investment in stock in order to keep his portfolio aligned to his investment strategy. The overall value of his holdings will change with the fluctuation in stock prices, which can throw his portfolio off balance. To determine the amount to invest, multiply the number of shares of each stock by its current market price to determine the total investment in that specific stock. For example, if you own 100 shares of a $5 stock, multiply 100 by $5 to get $500.
STEP 3: DECIDE ON THE STOCK / SHARE ORDER TYPE
Investors can choose from a market order, a limit order, a stop order (also referred to as a stop-loss order) or a buy/sell stop order. It is important to familiarise yourself with each type’s pros and cons before deciding which one will suit your current stock profile best. An investor should be guided in this choice by his investment objective.
STEP 4: OPEN A BROKERAGE ACCOUNT
A brokerage account – also known as taxable investment account – is similar to a retirement account, but more flexible. Where a retirement account has limitations on the amount of money that can be contributed annually, and restrictions on when funds can be withdrawn, a brokerage account is more flexible. The latter has no income or contribution limit and the investor can withdraw his money at any given time. This flexibility, together with its potential investment gains, makes a brokerage account more attractive to serious investors. Brokerage accounts are ideal for goals or savings that are further than five years away, but closer than retirement. It can also supplement an investor’s emergency savings.
STEP 5: COMMIT AND PURCHASE SIBANYE GOLD STOCKS / SHARES
Lastly, commit to the stock. Pro Tip: Monitor the value of your stock to ensure you have a growing stock value and dividend pay-out. Regularly check the share price online to ensure your investment delivers a positive return on investment. You are now a proud owner of SIBANYE GOLD stocks / shares.
5 Questions to ask yourself before purchasing any stocks or shares.
- Is it the best time to buy this stock / share?
- Should I buy SIBANYE GOLD stocks / shares in the current economic climate?
- Can I afford to buy this stock / share?
- What is the forecast of the stock / share growth?
- What is the current price per earning ration on the stock / share?
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