Costly acquisitions ahead ! Analysts believe Sibanye-Stillwater faces the risk of costly acquisitions as battery metals prices are hovering around record highs.
“Given where nickel, copper and lithium prices sit today, its going to be a lot more difficult to find cheaper assets,” Mandi Dungwa, an analyst at Kagiso Asset Management in Cape Town, said. “Clearly those metals are worth a whole lot more given where we are in commodities prices than two years ago.”
Nickel’s usage has grown over the past two years in lithium-ion batteries. The accelerated roll-out of EVs is making certain types of the metal popular among investors, as it can be processed into battery precursor materials.
The more traditional use of nickel is in the processing of stainless steel for appliances and utensils.
Analysts expect shortages of copper, cobalt, nickel and other industrial materials needed for the shift to a low carbon world, partly due to underinvestment in the mining sector and accelerating demand.