Van Eck Associates Corp. announced it has purchased another stake in the common stock of Sibanye Gold (NYSE:SBGL), enhancing its interest in the South African miner by as much as 10.03%.
Shares of Sibanye-Stillwater are expected to jump further following the announcement. In late morning trading on Thursday, Sibanye-Stillwater reached $2.86 a share, up 3.25%. The stock lost 42% for the 52-weeks period through June 6 and underperformed the Van Eck Vectors Gold Miners by about 39%.
The stock is trading below the 200, 100 and 50-SMA lines.
Sibanye-Stillwater's market capitalization is $1.46 billion. Its relative strength indicator IRSI 14-days) is 42.54 on a range of 30 to 70. Its price-book ratio is 0.83 times versus an industry median of 2.06 times.Ă‚ The enterprise value to earnings before interest, taxes, depreciation and amortization (EBITDA) ratio is 11.41 versus an industry median of 9.90 times. The trailing 12-month Ebitda margin is about 16.6% versus an industry average of 24.9%.
The recommendation rating is 3 out of 5. It has two Buys and one Hold recommendation. One analyst assigned a price target of $5.04 per American Depositary Shares of Sibanye-Stillwater.
As of June 6, Sibanye Gold has a total volume of 2,178,647,129 shares issued and outstanding or about 544.66 million American Depositary Shares. GuruFocus indicates that 17.09% of the total volume of Sibanye Gold’s shares have institutional ownership.
Among the top institutional holders, Van Eck Associates Corp. is the top owner. The second largest shareholder of Sibanye Gold is Exor Investments with 5.63% interest. Exor Investments is an investment company controlled by the Agnelli family. Agnelli is the owner of the Fiat Motor Company.
(Disclosure: I have no positions in any security mentioned in this article.)
