nkp 2012

As the year comes to an end without positive news I decided to communicate my disappointment to.......



Dear Sharif and Maredi,

First may I wish you and your family a safe and happy festive season. May you all enjoy good health during 2013.

As a shareholder since 2004 I wish to express my disappointment at the lack of progress during 2012.

Another year is about to end and Nkwe is still no closer of becoming a platinum producer. Year after year of promises to shareholders but here we are with the share price at sub 10cents and no joint venture partner, no resolution with Anglo/ARM, no interest from institutions, fund managers nor the general public. Nkwe is at an all time low on every aspect.

The year opened up with extensive commentary on negotiations continuing with Anglo/ARM and the DMR. However it ended with no resolution and whispers (but no confirmation) that there is no issue at stake. During the year word was that both Paramount and Matrix were to be our saviours and would resolve the Anglo claim. But now we hear that there is no urgency in resolving the dispute as it appears to be a fabrication by those with vested interests.

The announcement of the Mining Right over Garatau in February caught Anglo by surprise. However it still did nothing to spur potential investors from becoming shareholders. It was the only highlight for 2012.

Announcements on progress of BFS’s, DFS etc attempted to stimulate focus on the company. However since news of a final BFS has continued for many years it mattered little to shareholders. It was the same old news of Nkwe’s potential prospects without detail of who would join the company in delivering financial success.

During the year we read yet another announcement regarding an offer of compensation for the lapsed options. However still nothing has been finalised and option holders live in hope.

Several trading halts occurred during 2012. The company has a history of trading halts and lack of positive announcements. The trading halts were as a direct result of the company’s shares being dumped by Gleneagles who was mooted to be our saviour and commissioned to seek a joint partner. What a disaster of a relationship that turned out to be with millions of Genorah’s shares in Nkwe dumped as a show of strength. The share price has not recovered from that episode.

Currently both Genorah and Nkwe live on borrowings(loans). They have a wanted platinum asset but still cannot find a suitable partner. Xstrata disappeared from the scene without a word from the Nkwe Board to its shareholders and the investment community. After appearing year after year in annual reports the Xstrata joint venture option is now dead and buried. No indication as to why Xstrata lost faith in Nkwe after promising DFS and BFS reports.

We conclude the year with news that Paramount and Matrix are in the background with insulting low offers for a stake in Nkwe shares. We hear that AMED is in the foreground attempting to negotiate a deal but has concerns arising from its Due Diligence. What hidden agendas are in the background that shareholders have not been told about? No news and silence for two months regarding the negotiation process. Again and again the company fails to communicate to shareholders.

After many years of communicating via private emails to some shareholders that the future looks great we still have made no progress. The share price will end the year at sub 10cents and shareholders will continue to have substantial papers losses in their portfolio. The company still does not have a joint venture partner. There is no positive indication that Nkwe will secure funding for Garatau. There is talk of a lack of unity within Genorah our major shareholder. The Genorah and Nkwe Boards have nothing to be proud of for their efforts to date. A very disappointing state of affairs.

January 2013 commences with Nkwe and Genorah due to appear in Court confronting the Bengwenyama Tribe on Appeal over the disputed Tubatse farms. Obviously the judge believes that the Tribe has a reasonable case otherwise the Appeal would have been dismissed last October. Let’s hope that we are not to suffer yet again at the hands of the Court.

I sincerely hope that you will not continue to disappoint Nkwe shareholders during 2013. You may recall that the share price during most of 2010 was between 50cents and 70cents and that was a year when we had no Mining Right. Surely with a global shortage of platinum looming and an asset exceeding $1.5 billion the Nkwe share price should be substantially higher?

Let’s see whether you can restore value and faith for us long suffering shareholders.


Best Wishes