Sibanye-Stillwater Limited (SBSW)

(A Top Pick Apr 29/21, Down 29.5%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with SBSW has triggered its stop at $13.50. To remain disciplined, we recommend covering the position at this time. We will look for better opportunities.

Stockchase Research Editor: Michael O'Reilly SBSW is a $14 billion market cap miner of gold, platinum (world's largest producer), and palladium (world's 2nd largest producer). The company is based in South Africa with operations extending into the US and Finland. It trades at 7x earnings (compared to peers at 26x), has a return on equity over 68%, and a five year annual sales growth over 40%. It's dividend is based on an earnings formula that triggered a payment this year amounting to $0.98 per share -- an excellent yield with an estimated payout ratio under 40% of cash flow -- if commodity prices hold. We would buy this with a stop loss at $13.50, looking to achieve $25.00 -- upside potential exceeding 28%. Yield 5.02% (Analysts’ price target is $25.00)