Dallas, Texas 11/01/2013 (Financialstrend) – South Africa based $795 million market capped Sibanye Gold Limited (NYSE:SBGL) has posted a smart 2.55% rally in its share price during trading yesterday. This was a welcome break from the close to 1.4% dip in market value over the past week of trading. The gold mining firm has managed to get the buy in from difficult to please Metals Channel analysts and has been ranked #3 among the more than 50 metal stocks that were covered for this period to be featured on “Metals Channel Global Mining Titans Index”.
In the trailing 12 months period, the gold producer has managed to post sales of $757 million with net accumulated loss of $242 million. Its sales had dropped by a significant 21% and correspondingly, its earnings per share had plummeted by 83% in comparison to 3Q12. This weakness in the operations had been overlooked to a large extent by investors when you look at the impressive 82% growth in market value the stock had seen in the past 90 days.
During trading as close of business on October 31, the stock was trading at $5.62, 30% lower than its 52 week high valuation of $8.07 per share. This deficit in the valuation is of recent making when once considers that that current valuation is 30% above the 200 day trading average of the stock. Analysts had pegged the price target at $4 which translates to a 28% discount on current trading price.
In spite of the hard operating conditions, the gold producer had managed to payout dividend payout of $0.11 per share. This translates to a dividend payout of 1.96% per share. The dividend payout along with the 63% appreciation in its market value over the past 180 days is a good indicator of the solid return on investment the stock has provided to its share holders.