It’s been almost 2 months since our last public update. We have been busy finalizing our sale of Akorn, identifying new investment candidates and developing new backend software.
The Manivest fund year to date performance is at 54,11%, due to the sale of Akorn to german Fresenius – a move we had anticipated, but not expected so soon.
The Manivest criteria has been running in our screening software, and we have manually evaluated a lot of possible investment candidates since our exit in Akorn.
Our newest investment is Sibanye Gold. Sibanye is an independent mining group domiciled in South Africa, which owns and operates a portfolio of high-quality gold operations in South Africa and platinum group metals (PGMs) operations in South Africa and the United States of America. The Company is involved in underground and surface gold mining and related activities, including extraction, and processing. Sibanye has been transformed into a global precious metals company with a unique mix of commodities. Sibanye is the third largest producer of palladium and platinum and features in the top ten global gold companies.
Manivest has invested significantly in Sibanye since the beginning of May, and it is one of our largest holdings at the moment. Sibanye meets all Manivest criteria, and has just finalized the acquisition of Stillwater Mining Company, which has palladium and platinum producing operations in Montana in the United States, representing the largest PGM transaction globally in over a decade. The Stillwater operations have the highest grade PGM mines in the world. In addition, it is the lowest cost PGM producer in the world (on an all-in sustaining cost basis which includes sustaining capital expenditure requirements). This combination and the fact that it is the only primary palladium producer in the world, makes it unique and strategically positions Sibanye as a unique investment case.
Manivest has set a target price of 7,5 USD, and believe this target can be met in 2017. Development of new mining activities until 2023 is believed to represent a significant upside potential for the company, and we believe the stock is undervalued at the current price (around 5 USD). More information on https://finance.yahoo.com/quote/SBGL?p=SBGL
Read more on Sibanye’s homepage: https://www.sibanyegold.co.za
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