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Sibanye still water (NYSE:SBSW) and Dong Nam Bo (NYSE:SCCO) traded lower on Wednesday after Deutsche Bank downgraded the shares of both miners, Hold from Buy and Sell from Hold, respectively.
The company said Sibanye’s (SBSW) South Africa The asset was the only bright spot in the portfolio and cited the miner’s continued underperformance across US palladium, platinum and gold mining operations.
While Sibanye’s (SBSWDeutsche Bank believes the balance sheet is in a solid position, unlikely to deliver higher cash returns as the company’s focus remains on acquisitions and growth in the battery materials space, which will is the overhang of the stock.
Dong Nam Bo (SCCO) shares have soared in recent weeks as copper prices have risen, but the company said the updated guidance shows the miner is having a hard time getting its operations on track following disruptions related to related to COVID, due to downgraded copper and zinc production while cash cost guidance increased ~10%.
Deutsche Bank believes the problems are not “one-off” and expects an increased step in capital maintenance and operating costs to acquire Southern Copper’s (SCCO) works back on track.
Sibanye Stillwater’s (SBSW) The business of the South African platinum group was affected by power shortages in the third quarter, partly because Disappointing earnings.
