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S.Africa’s Sibanye Stillwater to buy nickel, copper mines in Brazil

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(The Southern African Times) – South Africa’s Sibanye Stillwater SSWJ.J said on Tuesday it would buy Santa Rita nickel mine and Serrote copper mine in Brazil for $1 billion.

The precious metals miner said it has signed agreements with affiliates of funds advised by Appian Capital Advisory to buy both the mines for a cash consideration and a 5% net smelter return royalty over potential future underground production at Santa Rita. 

In February trading, shares of Sibanye Stillwater Ltd (Symbol: SBSW) have crossed above the average analyst 12-month target price of $18.31, changing hands for $18.85/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.

There are 4 different analyst targets contributing to that average for Sibanye Stillwater Ltd, but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $14.75. And then on the other side of the spectrum one analyst has a target as high as $21.50. The standard deviation is $3.023.

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