NKP (ASX) Anglo Facts

Originally posted by jmcotseeya ↑

Poor mac. The CEO's "this is not a fire sale" taken at face value, explains your personal predicament.

This is a good article
http://www.moneyweb.co.za/moneyweb-soapbox/anglo-may-struggle-to-make-clean-platinum-break

"The challenge for Anglo will be to extract itself fully. The country's influential National Union of Mineworkers has already signaled its opposition to a sale. Further, Amplats intends to keep its lower-cost platinum production, so will remain vulnerable to strikes and other worker actions."

The writer correctly implies a long term strategy of divestment from SouthAfrica. This is all about industrial relations.

Even if the government and unions bless an eventual sale, there's a risk Anglo ends up on the hook if a new owner ever runs into financial trouble. An example from the oil industry could be instructive. Anadarko Petroleum acquired Kerr-McGee after its smaller rival had separated itself from another subsidiary with environmental liabilities. When the spinoff went bankrupt, Anadarko wound up later agreeing to pay more than $5 billion to settle litigation that traced back to Kerr-McGee. Anglo is selling mines as going concerns, not offloading toxic waste, so Anadarko isn't a precise comparison. The general idea, though, that the disposal of troubled assets could eventually come back to haunt Anglo is the same. Platinum may be among the least reactive metals on the periodic table, but for Anglo it could be explosive.

Begins to put NKP in context, doesn't it? This is why previously quoted analysts believed many SA platinum mines to be worthless. They come fully stocked with liabilities. But they are mines with mining licences..........................

Expand

Another article that spells it out
copyright link/finance/newsbysector...-mines-is-a-smart-move-by-Anglo-American.html

Opportunities
Anglo American may opt to exit the platinum business and focus on coal, iron ore, copper and diamonds
Amplats unit could be sold entirely to raise cash