nkwe platinum: between the jse and xstrata , page-8

Razoo,

For me the key positives in this statement (implicit);

1. Xstrata may be gearing up to acquite 100% of NKP (or the maximum allowed to be in compliance with BEE). This would be in line with the statement about going silent on a JSE listing. Why list if you are expecting to be bought out soon?

2. Tubatse synergies with Xstrata ferrochrome business. Question is if Xstrata would go ahead even with court cases unresolved. I would bet that they are not that concerned about the court case but would raise the risk as a bargaining tool to push the final price down.

The stage is set for a surge in PGM prices while synergies need to be squeezed out to drive further profitability in ferrochrome. If xstrata are serious in developing significant PGM capacity then I do not see what other resource could be a better fit.

BR
Max