America’s largest bank, JPMorgan, has been steadily growing its stake in precious metal miner Sibanye-Stillwater as the group’s share price slumps in the wake of the Iran war.
At the start of this week JPMorgan’s share of Sibanye reached 5.66% of its total issued capital, prompting a declaration to the JSE news service in accordance with takeover regulations.
The move comes just a few months after BlackRock, the world’s largest asset manager, also increased its stake in Sibanye beyond the 5% mark in a vote of confidence for the platinum group metal (PGM) sector.
The continued buying of PGM miners by Wall Street banks and institutional funds suggests major investors see room for mining shares to rebound once the pressure imposed by soaring oil prices subsides.
Shares in Sibanye were down more than 5% on Monday, extending a nearly 30% drop since the start of the Iran war. This pressure makes it an attractive time to buy for investors with a bullish medium-term view.
Markets expect that inflation stemming from ongoing disruptions to shipping through the Strait of Hormuz will force central bankers to hold or hike interest rates in the coming months, strengthening bonds and weakening precious metal prices.
Against this backdrop, platinum prices have slid more than 18% since February 28. March 2026 was the metal’s worst month since 2011 and the worst month since the 2008 global financial crisis for the JSE precious metals & mining index.
The PGM selling has continued in recent weeks as markets eye the fragile ceasefire between the US and Iran. In the past week, Valterra, Impala and Northam Platinum were each down more than 10%.
Still, the tone within the PGM industry remains upbeat, as a persistent market deficit continues to support the demand outlook.
Stats SA data shows South Africa’s PGM output jumped by more than 50% year on year in February, with all major miners reporting soaring profits in recent months. Sibanye’s latest interim results showed the group’s revenue jump by 14% year on year to R129.7bn amid surging prices.
For Sibanye, whose geographically diversified operations in both gold and PGMs make it an attractive source of precious metal exposure, optimism around the group’s cost-cutting strategy has also buoyed hopes.
Earlier this month, Moody’s upgraded the group’s outlook from negative to stable for the first time since May 2024, citing Sibanye’s “conservative financial policies”, particularly the goal of halving net debt and achieving a 1.0x net debt-to-ebitda ratio through the cycle.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.