xstrata isnt silly in buying lonmin. they are doing the deals while the price is down and the platinum price is down too.
How funny it is that the lonmin deal occur at the same time as nkwe? They want platinum, lonmin produced around 750000oz last year and if the 5 farms in south africa goes at 1000000oz per year. Xstrata would end up with around a 1250000 and if they take over the other 50% that would be around 1750000.
Now think about this, the top 3 platinum producers control 80% of market and the world only produces around 6500000oz per year. With xstrata at more than 1500000oz, it gives them a big share of the market.
IGC Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
