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Sibanye Stillwater (NYSE:SBSW) surged over the past year as demand for metals rose from the booming EV industry and investors bet on stocks exposed to these assets. While the US economic recovery outlook makes the stock less attractive from the safe-haven point of view, will the demand for silver from the EV space allow SBSW to retain its operational margins? Read more to find out.Based in South Africa, precious metals mining company Sibanye Stillwater Limited (SBSW) has mining operations across the African continent and the Americas. Given its extensive operations in metal-rich regions across the world, SBSW is one of the biggest mining companies in the world, with a market capitalization of $13.50 billion. Shares of SBSW have risen 197.9% over the past year, and 17.2% year-to-date.
The rising demand for silver in 2020 from multiple avenues has been the key driver for the stock. With numerous start-ups emerging in the electric vehicle (EV) space, as well as rising demand for semiconductors, silver has accrued significant demand from the industrial sector even amid the pandemic. With the EV companies expanding their product portfolio to attract customers in a highly competitive market, as well as semiconductor factories operating at full capacity, the demand for silver is projected to keep rising in 2021.
Here’s what could drive SBSW’s performance in the near term:
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