I cannot see why we are talking about a little channel in a chart between 50c and 70c. This stock will have to be at least $1.80 within a few months just to match the funds that XS are putting in to Garatau alone. This is not considering Tubutse which would more than double the MC again.
I ask anyone to look at the numbers on the option XS has once the BFS is out in a few weeks. Without any bias even if the capex ends up at the high end I would take the Garatau JV over a bid for Lonmin if it was my money. I believe PL is correct that they will definitely take one of these two paths.
The longer this stock stays down the faster it will climb after the BFS.
All this, ofcourse, is my honest opinion so please look at the numbers to confirm before investing.
NKP Price at posting:
48.5¢ Sentiment: Buy Disclosure: Held
