Sibanye-Stillwater Shares Soar 1.48% on Recycling Expansion

Sibanye-Stillwater (SBSW) shares surged 1.48% today, marking the 10th consecutive day of gains, with a 28.25% increase over the past 10 days. The stock price reached its highest level since May 2023, with an intraday gain of 2.33%.

The strategy of buying SBSW shares after they reach a recent high and selling them a week later yielded poor results over the past five years. The strategy had a -4.72% return, underperforming the benchmark by 63.68%. With a maximum drawdown of 0.00% and a Sharpe ratio of -0.04, the strategy also indicated a high level of risk and volatility.

Sibanye-Stillwater has been actively expanding its recycling operations, which has had a notable impact on its stock price. The company recently acquired US-based metals recycler Metallix Refining for $82 million. This strategic move enhances Sibanye-Stillwater's global recycling footprint and internal logistics capabilities, enabling the company to source materials from multiple regions. The acquisition has been well-received by investors, contributing to the positive sentiment surrounding the stock.

Investor interest in Sibanye-Stillwater has also been bolstered by the substantial increase in the value of NIA's Sibanye-Stillwater call option. Since March 27th, the call option has gained 311.29%, indicating strong investor confidence and potential future gains in the stock. This heightened interest has further driven the stock price upward, reflecting the market's optimism about the company's prospects.