Shares in Sibanye Gold gained yesterday for the third day since it started trading in Johannesburg, and the firm said it was still undervalued.

The stock rose 2.65 percent to R15.10, after rising 8.5 percent on Tuesday. Sibanye has risen 14 percent from its opening price of R13.20 on the JSE on Monday, when it also listed in New York, lifting its market capitalisation to R11 billion.

“We still believe the fundamental value in the company is not yet fully reflected in the share price, but expect a period of volatility and… uncertainty for the next week or so,” spokesman James Wellsted said.

SBG Securities analyst David Davis said on Monday that Sibanye shares were worth R10 to R15. AngloGold Ashanti and Harmony Gold also had mature assets and might follow Gold Fields by unbundling, selling or downsizing units to preserve value, Davis said.

Gold Fields rose 0.9 percent to R92.04 yesterday. The stock closed at R105.80 on Friday, the last trading day before the spin-off. - Bloomberg