PGM prices are shooting up, funding issues resolved, Kalplats PFS was positive and now we have a tie up with Jogmec to develop Stellex which could over time become another Kalplats type prospect (PLA are involved in multiple km's of PGM mineralisation in what could be a major new South African PGM belt)
All this and sp is only about 20% up from when I first bought in late summer, compared to PGM and other platinum miners such as AQP which are flying.
PLA is being held back by slow progress at Smoky Hills. What we need to see is a good production report for 4Q 2010 and unit costs of production coming down towards the target levels. Once we get this then I see huge upside and will be looking to buy in before end January announcemnet as I beleive that it will be significantly more positive that previous quarters (although not yet reacing maximum targets)
Also the US Platinum / Palladium ETF looks like it will give rise to significant investment demand and will take physical ounces off the market, worsening the supply shortfall. PGM's have lacked the Investment demand that Gold has had, but this is now changing and prices should continue to rise significantly through 2010
I will be Holding PLA for a good few years as I see here the opportunity to make mouthwatering long term gains as Kalplats and later Rooderand start up. We got to $3 previously and now I see that the company has more going for it with multiple projects and PGM prices steadily rising and could well again reach pre GFC levels.
BR Max
PLA Price at posting:
$1.05 Sentiment: LT Buy Disclosure: Held
