The best and worst JSE Top 40 listed platinum shares in August 2022
We take a look at miners of platinum group metals: Anglo American Platinum, Impala Platinum , Northam Platinum and Sibanye Stillwater in terms of total returns, peer valuations as well as broker ratings and price targets
In this article we take a look at miners of platinum group metals: Anglo American Platinum (Amplats), Impala Platinum (Implats), Northam Platinum and Sibanye Stillwater in terms of total returns, peer valuations as well as broker ratings and price targets.
Rand platinum
The above chart of the New Gold Platinum (NGPLT) ETF (Exchange Traded Fund), represents 100ths of a troy ounce of platinum in ZAR terms. Over the short to medium term, we see that the rand platinum price has been rangebound in nature.
The medium term range and habit of NGPLT suggests looking for long entry on oversold signals and near range support between levels 13550 and 13790.
Total returns
| Security | Total Return: 1 Month | Total Reurn: 3 Month | Total Return: Year to Date |
|---|---|---|---|
Anglo American Platinum |
1.69 |
-18.88 |
-27.68 |
Impala Platinum |
13.26 |
-5.91 |
-19.25 |
Northam Platinum |
10.74 |
-4.49 |
-19.50 |
Sibanye Stillwater |
-2.17 |
-19.08 |
-19.78 |
The above table highlights the total returns over a 1 month, 3 month and year to date look back period for major JSE listed miners of platinum group metals. The total returns figures include both capital gains and dividend returns.
For the year to date, all four counters have yielded a negative total return of at least 19%. Anglo American Platinum has been the worst performer in 2022 having produced a negative return of more than 27%.
We have however started to see a partial rebound in most of these counters over the last month, led by Implats, who along with Northam Platinum have managed to achieve double digit gains over the shorter loo back period. Amplats has produced only marginal gains in the last month, while Sibanye has continued to produce a negative total return for investors.
Peer valuations
| RIC | Company Name | Trailing P/E LTM | Forward P/E FY1 | Dividend Yield Latest (%) |
|---|---|---|---|---|
AMSJ.J |
Anglo American Platinum Ltd |
5.16 |
5.72 |
7.76 |
SSWJ.J |
Sibanye Stillwater Ltd |
3.44 |
3.67 |
12.43 |
IMPJ.J |
Impala Platinum Holdings Ltd |
3.91 |
4.49 |
9.88 |
NPHJ.J |
Northam Platinum Holdings Ltd |
5.89 |
5.70 |
NULL |
Peer Average |
4.60 |
4.90 |
10.02 |
|
In terms of a basic fundamental view, all four mining counters covered trade on conservative valuations in terms of trailing and forward looking Price to Earnings (P/E) multiples. It should be noted that volatility in earnings relative to that of commodity cycles can however make these valuations appear more attractive than they seem in the current climate.
In terms of dividends paid, Sibanye has offered the highest historical yield, while Northam Platinum does not currently return cash to shareholders this way.
Broker ratings and long term price targets
| Security | Analyst Reccomendation | No. of Analysts | Price Close | Price Target | Discount/Premium |
|---|---|---|---|---|---|
Anglo American Platinum |
HOLD |
11 |
1168.06 |
1458.82 |
-19.93 |
Impala Platinum |
BUY |
10 |
177.64 |
226.44 |
-21.55 |
Northam Platinum |
BUY |
9 |
168.65 |
226.00 |
-25.38 |
Sibanye Stilllwater |
BUY |
12 |
38.29 |
66.00 |
-41.98 |
Implats, Northam and Sibanye all currently carry long term buy ratings, as per a consensus view from analysts surveyed by Refinitiv. Amplats is the only share covered which carries a hold rating.
While all four shares trade at deep discounts to what is considered a longer term fair value, the Sibanye share price currently sees the broadest discount to it consensus long term price target.
How to trade platinum stocks in South Africa
If you want to trade any of the JSE listed platinum stocks we have discussed today, you can utilise IG’s CFD trading platform to speculate on the share price movements of the underlying asset – to buy (long) or sell (short) following these simple steps:
- Create an IG Trading Account or log in to your existing account
- Enter the company name or ticker in the search bar and select it
- Choose your position size
- Click on ‘buy’ or ‘sell’ in the deal ticket
- Confirm the trade
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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