Ann: Funds Under Management - January 2024, page-9

There are plenty of retail holders, but most have been reduced to silent and solitary pain for investing in PTM. It has been a train wreck.

I have a 7 digit holding that I have managed to reduce to an average cost of $1.52 as a result of the weakness last year, the 20% bounce offering a chance to sell a portion to raise cash and now the 20% decline on which I have loaded up again.

Naturally over the last couple of years, this has called on a large sum of capital, which was conveniently contributed by the exit from lithium in 2022 and some really nice movement in nuclear, precious metals and othr positions.

I am convinced the current model is broken, but the Balance Sheet value, ongoing cash flows (that simply demand cost management) and net debt of nil, lock up an enterprise value of at least $1.50 per share PLUS.

Being in the company of Kerr gives me some comfort as he has the common goals all shareholders have. That is to extract value via a MBO or merger or tuck in or takeover.

I hate seeing the price in the rubbish bin, and take note that there has been no attempt to support the price via the active buy back. Reading the tea leaves, that suggests more bad news is coming (earnings wise) with the half yearly. So be it. This has been a long game for most of us, and I am feeling feeling more relaxed than ever that the exit door, whenever it comes, will return my capital in full.

I usually don't care too much about dividends, and the next one IMO may be cut savagely to either 4c or 5c. However, on a largish holding, PTM will throw out a reasonable amount ofcash for me to continue to play in the biotech and battery metal spaces that have been obliterated for various short term factors.

I may have to wait 2 or 3 years to see them pay off, but that is my modus operandi. I am always in too early and out too early, but except on a few occassions where I have been wiped out, 3 to 5 bag outcomes are common enough to keep my little ship rolling.

I must condemn the pig headedness of the Platinum investment team that so vehemently backed themselves against Western markets in favour of China. It was a roll of the dice that will cost them the business and has burned their credibility for the last 5 years. That's the danger of the early investment success that was enjoyed under Kerr's stewardship compounded by employing like minded staff unable to break the mould when conditions changed.

Let's see where this goes. There are still many innings to play out yet in this game.

GLTASH