Sibanye-Stillwater Limited (JSE: SSW), the multinational mining company, is treading water after it released its operating update for the first quarter on Tuesday.
The operational update showed that the mining giant’s gold mines had returned to profitability due to surging precious metal prices and an acceptable wage settlement with its employees. Its gold mine metrics across SA increased significantly from a year ago due to the above factors. However, the challenging operating environment in South Africa and the significant losses across the SA platinum group metal operations brought the celebrations firmly to a halt. The platinum group’s EBITDA fell close to 43%, and a 19% decrease in the rand price of the basket of four PGM metals (4E) it produces.
Technicals
Looking at the 1-day chart of Sibanye-Stillwater, we can see those significant moves lower as investors continue to digest the latest operational update. The significant support level at R35.52 (solid red line) a share will be watched closely for an intraday bounce as short-term traders look for opportunities. If this considerable support level does not hold, then we could potentially see the bears firmly in control and look to lower levels around R33.00. Price needs to close above the psychological R40.00 (purple dotted) level to negate the current downtrend.
Summary
The possibility could exist that the significant support at R35.52 holds, and short-term traders drive prices higher from there. If investor sentiment continues to deteriorate, then we could possibly see lower price levels targeted.
Sources: Sibanye-Stillwater Limited, JSE SENS, News24, Reuters, TradingView.
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