soros in...

Soros in at Platinum Australia
12/10/2009 Robert Tyerman

The Quantum Fund, managed by legendary investor George Soros, has taken a big chunk of South Africa-focused Platinum Australia.

Based in Western Australia and quoted Down Under and on AIM, Platinum Australia (PA) launched a A$30 million (£17 million) placing the other day at the equivalent of 49p to fund its existing projects and facilitate a prospective acquisition of another, also in South Africa. The company, steered by managing director John Lewins and best known for its Kalahari Platinum (‘Kalplats’) project in the Republic, has subsequently received notice that Quantum has subscribed to a hefty slice of the placing, giving it 8.8 per cent of PA, whose advisers say Quantum has also been buying more in the open market.

PA, whose Smokey Hills platinum mine in South Africa projects annual production of 100,000 oz of platinum group metals and gold, hopes to produce 130,000 oz a year of platinum group metals from Kalplats and will soon produce the results of a feasibility study on the project. The company had previously agreed to raise the placing money from a Chinese investor, but that deal fell through.

Originally highlighted by Growth Company Investor at the equivalent of 6p ahead of their AIM launch in 2005 and again at 38p the following year, PA shares hit 114p in October 2007, when GCI suggested partial profit taking. They later plunged to 17.5p, but have now rallied to 51.25p, where Quantum’s backing may provide some medium-term support.