Value Microcaps Junior Miners

[Bobwins]

SBGL +.55 to $11.39 Big 5% pop in Sibanye Stillwater. Company gave Q4 and 2019 operating results today.

https://thevault.exchange/?get_group_doc=245/1581675808-sibanye-stillwater-trading-statement-year-ended-31-december2019-14feb2020.pdf

Improved PGM and gold prices made top line revs grow 44% for 2019 to US$5.043billion. Adjusted EBITDA increased 79% to US$1.034 billion.

2nd half performance was a huge improvement over 1st half 2019. Revs up 110% and EBITDA up 541% over 1st half. EBIDTA up 189% over comparable period in 2018. EBIDTA in Q3 was a greatly improved $377million but Q4 was an even better $504million.

Improved performance was used to pay down debt. Net Debt to Adjusted EBITDA ratio dropped in HALF! to 1.25 from previous year. This is significant because company said that when they reach a ratio of 1, they would consider reinstating a dividend. They had earlier said that might happen by mid year 2020 but 1 could happen soon at this rate.

I was a little disappointed that profits were a tiny $30million but this is much better than the loss of $191million for 2018.

Overall a very good report and I think the market is rewarding the company for continued good production results, gold division coming back online and dividends in the near future.