beat the bots

Now is the time to beat the Bots.

Price of PLA has been held back using a number of issues;
1. Difficult ramp up at Smoky Hills.
2. Lightning strike
3. Industrial action

The lightning strike and industrial action are only a momentary drop in the ocean. The difficult ramp up is a real issue but fully expected for PGM production, which is the most difficult of metals to mine and therefore its high price. The trend with new mines is a big boost when the resource is first defined, a further boost when the BFS is completed and funding in place and then a fall back when the mining ramp up difficulties arise. With Smoky Hills we have gone through the ramp up difficulties but going forward things should improve and the next sp price phase is up. Just see Equinox to see a good example!

In my view the Kalplats project has been ignored and probably the people behind the bots want to entrench the idea that PLA is going nowhere. I am not about to ignore Kalplats even if to date the market has. There is a huge upside here not matched by many mining projects at the moment. Yes it needs 2-3 years to start bringing cash flows but you cannot wait for that as by then the sp will be fully valued or possibly overvalued. Now is the time.

PLA also has many other projects so it is not a one trick pony. Allready there is positive comment about the 50% JV extension area around kalplats and more Kalplats area gold horizons than initially expected (could we have a kalplats 2)? There is also Rooderand where first results seem encouraging and we should not forget that Panton is also on the books. Low Palladium prices were one of the reasons this was shelved but I think these have recovered to levels where the project is again a possibility. The A$ is still high but in that case so is the rand. Also to keep in mind that SA electricity costs are rising fast and that will support higher PGM prices going forward.

I have built up a significant Holding in PLA but see that it is time for one further top up next week

BR
Max