What counts now the most with todays high PGM prices is producers, and they are going to make the BIG money.
PLA will be a producer at any time now and will make a huge profit at todays high PGM prices.
And thats one of the reasons why PLA is being re-rated as we speak with major large funds falling over eachother trying to to be a part of it.
Another great positive for PLA are the very low production costs, much lower then most projects in the bushveld which again means higher profits.
NKP has an excellent resource but as you say much higher production costs then PLA at Smokey hills and also compared with Kalplats.
At the end, higher margins mean higher profit and if PLA keeps extending the Kalplats resource they could even outdo NPK in the longer term purely because of the low production costs.
The power issue is another problem and who knows for sure where SA is in two years time, the opencut mines will be the winners in this scenario.
Kalplats will be another opencut mine and could look after itself, when it comes to power although at a higher production cost. But being a low cost producer like Smokey , PLA will still have some real good margins in this scenario.
I like NPK, but for now I like PLA more.
Good luck
jojo
PLA Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
