Why Sibanye-Stillwater Stock Jumped 12% in Early Trading Today
Shares of gold and platinum miner Sibanye-Stillwater (NYSE: SBSW) rose 12% in the first hour or so of trading on Oct. 21. The jump comes on the heels of news from the precious metals company that it redeemed a convertible note. But there's a little more to this story.
Sibanye-Stillwater is the result of the $2.2 billion acquisition of Stillwater by Sibanye in 2017. The purpose of the move was to shift Sibanye's portfolio toward platinum group metals, which was Stillwater's main product. It was a material transformation of the company, but it was an expensive deal. Long-term debt increased by around 180% in 2017 alone, and the company's debt-to-equity ratio more than doubled.
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Source Fool.com
