Sibanye Stillwater share price: Q1 results update and trading view
In the below article we summarize Q1 2021 results from Sibanye Stillwater and take a look at how the share price is reacting to the news.
Sibanye Stillwater Q1 results
Sibanye Stillwater has posted a strong set of first quarter results which highlighted a near 80% increase in core profit (vs Q1 2020). Supply disruptions coupled with increasing demand has lifted metal prices for the group’s core commodities which include gold and Platinum Group Metals (PGMs - platinum, palladium and rhodium). The average basket price of PGMs rose by around 60% for the period leading gains, while the average gold price increase by around 8% in the quarter. The group earnings have further benefitted from an increase in operational efficiencies over the period.
Q1 production was slightly slower than expected at 6% year on year for PGMs and 5% year on year for gold, although the group says that it remains on track to meet full year guidance.
Sibanye Stillwater: technical analysis
The long term trend for Sibanye remains up, despite the short term weakness underway. In the medium term the share price trades within a broad range considered between levels 6330 (support) and 7405 (resistance).
Traders respecting the longer term trend bias might look for long positions on a bullish reversal near a confluence of both trend line and horizontal support around the 6330 level. In this scenario medium term range resistance at 7405 becomes the upside target favoured. Should the share price instead move to close below the 5800 support level, the bullish trade scenario would be deemed to have failed.
In Summary
- Q1 2021 profit has surged nearly 80%
- Earnings have been boosted predominantly by a sharp rise in the average basket price of PGMs
- Q1 production was slightly softer than expected although full year guidance remains unchanged
- The long term trend for Sibanye remains up, despite short term weakness
- A long trade scenario suggests a favourable risk to reward of roughly 1:2
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