I have been keeping to the sidelines but cant believe how certain posters have very amateur expectations of NKP. These include imminent buyout at $2-$5 per share. Exaggerated fears of nationalisation, BEE complications, not meeting self imposed BFS deadlines. Fears that the Court case is holding up Xstrata or that this could lead to NKP losing its mining rights etc.
There have been some excellent posts on the the in-ground value so no need repeating, however what needs to be remembered is that Africa is not Australia. Investors need to change their mindset and expectations. Many Australian miners have learnt to do this are are hugely successful in gold, uranium and iron ore.
BEE is a fact of life for all businesses in SA. Xstrata has just invested billions in a Chrome smelter, did power put them off? Did BEE put them off ? Did the water shortage stop them? Did nationalisation talk stop them?
Anglo are investing, Impala Platinum are investing, the Chinese are investing in Wesizwe, savvy OZ miners are investing, ...follow the money!
The BFS is taking time, yes its frustrating if you expected to be retiring off NKP before Christmas! South African government departments are slow, liaising with parastatals on water & power is frustrating beyond belief...but ultimately it gets done and the rewards are what keeps the big boys in Africa.
The asset is huge , the potential for long term holders will be massive so please adapt your expectations or sell out.
NKP Price at posting:
56.0¢ Sentiment: LT Buy Disclosure: Held
