The PLA research report issues by Eagle Research last week made for very interesting reading.
The companies they write on often do very well...in fact, it was one of their reports taht made me accumualte so many IGOs when it was in the 30-40c range...
IGO and PLA may look like relatively different companies, but they have one thing in common...both 'HAD' projects that were previously considered not feasible.
In the case of IGO it was due to a depressed nickel price...look at the Ni price, and of course, IGO now.
In the case of PLA, both its Sth African project and its Austrailan project had question marks over feasibility...in particular in respect of the Aussie project taht was in Aug 03 when PGM prices were WELL below current.
PLA is starting to get recognised and rerated by the market...I would expect this to continue much as happened with IGO.
The one significant risk of PLA in comparison with IGO, is that its most potential projects are in Sth Africa.
But that didnt stop AQP now did it.
Admittedly I have just started looking at this company now, due to the research report, so yet to do full evaluation of it...but i like what i see...enough to buy a small initial lot of options (there appears to be a potential arbitrage opportunity here too.)
Cdchi1
PLA Price at posting:
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