Sibanye Stillwater Ltd, known by the ticker symbol SBSW, is a large-cap other industrial minerals and mining company, operating in the materials business sector. This is my first report on Sibanye Stillwater Ltd for this Viital portfolio or any of my previous six dividend dog portfolios.

Sibanye Stillwater Ltd is a South Africa-focused mining company. The Group currently owns and operates five underground and surface gold operations in South Africa: the Cooke, DRDGOLD, Driefontein, and Kloof operations in the West Witwatersrand region, and the Beatrix Operation in the southern Free State province. 

In addition to mining, the company owns and manages extraction and processing facilities at its operations, where gold-bearing ore is treated and beneficiated to produce gold dore. The gold dore is further refined at Rand Refinery into gold bars with a purity of at least 99.5% and is then sold on international markets. Sibanye holds a 44% interest in Rand Refinery, global refiners of gold, and the largest in Africa. Rand Refinery markets gold to customers around the world.

In addition, it owns an interest in surface tailings retreatment facilities; the Marathon PGM project in Ontario, Canada; the Altar and Rio Grande copper gold projects in the Andes in north-west Argentina; the Hoedspruit and Zondernaam PGM projects in South Africa; and the Burnstone and southern Free State gold projects in South Africa. 

Sibanye Stillwater Limited was founded in 2013 and is based in Weltevreden Park, South Africa.

Three key data points gauge any dividend equity or fund such as Sibanye Stillwater Ltd:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money. 

SBSW Price

Sibanye's price per share was $16.83 as of yesterday's market close. One year ago its price was $18.95. Therefore, Sibanye Stillwater Ltd's share price fell $2.12 or about 11% in the past year. 

If Sibanye's stock trades in the range of $10.00 to $25.00 this next year, its recent $16.83 share price might rise by $4.67 to reach $21.50 by April 13, 2023. My $4.67 upside estimate is $0.33 under the median of six analysts annual target prices for brokerage houses tracking SBSW. 

SBSW Dividends 

Sibanye's most recently declared semi-annual dividend of $0.4836 was paid April 7th to shareholders on record as of March 24th.  Assuming an Annual payout of $1.30 holds true in the coming year, the payout per share yields 7.72% at yesterday's $16.83 closing price. 

Sibanye Stillwater Ltd has paid variable semi-annual payouts since October, 2013. That stretch marks 9 years come October. 

SBSW Returns

Adding the $1.30 Sibanye Stillwater Ltd annual dividend to the estimated one-year price upside of $4.67 shows a $5.97 potential gross gain, per share, to be reduced by any costs to trade Sibanye shares.  

At yesterday's $16.63 price per share, a little UNDER $1000 would buy 59 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.17 per share.

Subtract that maybe $0.17 brokerage cost from my estimated $5.97 gross gain estimate per share results in a net gain of $5.80 X 59 shares = $342.20 for a 34.2% net gain on a $992.97 investment.

Photo by Yiorgos Ntrahas on Unsplash

So it is that Sibanye Stillwater Ltd (SBSW): shows a possible 34.2% net gain including a 7.72% forward looking dividend yield. 

Over the next year at this time our $1000 investment in Sibanye Stillwater Ltd might generate $77.20 in cash dividends alone. Note that a single share of SBSW stock bought at yesterday's price of $16.83 is OVER 4.5 times less than the anticipated dividend income from our $1000.00 invested. So, by my dogcatcher ideal, this may be the time to buy SBSW shares. The estimated next-year dividend from $1K invested is currently  4.59 times greater than yesterday's single share price. Consider yourself alerted. It's a sign. Go for the dividend! 

All of the estimates above are speculation based on the past history of Sibanye Stillwater Ltd. Only time and money invested in this stock will determine its market value.