I like SBSW a lot BUT production is split between gold, platinum, palladium and rhodium. Market doesn't quite know what to do with them. On some days, they treat them like a gold producer(they produce close to 1million oz/yr) but other days when platinum or palladium is down, they seem to forget the significant gold production.
In terms of PGM, SBSW is a giant. Biggest platinum producer in the world, 2nd in palladium and #1 in rhodium. IF/when auto production comes back, SBSW will be raking in the money. Before CV-19, there were actual shortages in palladium and rhodium, with little likelihood of increased production for several years. BUT demand destruction will definitely impact PGM pricing and availability. How much?? Don't know.
That unknown will affect market perception and enthusiasm for SBSW. Mine closures in South Africa could lower total industry production and help balance out demand destruction but we need more info. Market will "assume" much lower car sales until proven otherwise.
I like SBSW mgmt and geographic diversification but lately market hasn't agreed with me. Good luck.
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