The best performing JSE listed platinum mining shares in 2023

Total returns

The following table highlights total returns for locally listed platinum counters over a one month, three month and year to date look back period. Total returns reflect capital gains and dividends paid over the respective periods.

The platinum sector has been amongst the worst performing sectors over a one month, three month and year to date look back period.

For the most part, Anglo Platinum has been the worst performing stock amongst these counters, while Sibanye has been the relative outperformer, albeit still posting negative total returns as well.

Platinum share price targets and broker ratings

The below table shows locally listed platinum counters, highlighting long term price targets and broker ratings as of the 21^st of February 2023, sourced from Refinitiv Workspace.

Anglo American Platinum, Impala Platinum all currently carry hold recommendations in consensus, although also trade at significant price discounts to the mean of their respective long term price targets.

Sibanye Stillwater is the only one of these counters covered that currently carries a long term buy rating. The company also trades at the steepest discount to its long-term price target mean.

Peer valuation

The recent share price weakness within the sector has made historical yields for these counters (excluding Northam) as well as price earnings valuations looking more attractive than perhaps, they are. However, resource counters are subject to extreme volatility in earnings and at the mercy of commodity cycles. Platinum counters are also at the mercy of the automotive industry which is a primary industrial demand driver for PGMs

Earnings for these companies are in decline, most notably that of Sibanye Stillwater and Anglo-American Platinum.

At face value, Impala Platinum trades on the most conservative trailing price to earnings valuation of these companies, while offering the highest historical dividend yield.

Northam Platinum trades on the most conservative forward-looking price to earnings multiple although has not been paying out a dividend.

Recent news

Anglo American Platinum profit for FY22 declined by 38% from the prior year’s (FY21) comparative period. The decline in earnings was in part due to a two-month delay in its smelter rebuild which negatively impacted sales of platinum group metals (PGMs).

Impala Platinum's refined platinum group metal (PGM) production declined by 9% year on year in the second half of 2022. The lower output figure is largely attributable to ongoing Eskom power cuts as well as a furnace rebuild which adversely impacted the group’s smelter operations.

Sibanye Stillwater expects FY22 profit to have declined by around 51% from the previous year. The drop in earnings is largely attributable to the impact of a three-month strike at its South African gold mines and floods affecting its U.S palladium operations.