AQP is a great story. It took off in the early stages of the current commodity bull cycle and has succeeded on the back of low quality resources, as Stuart Murray himself admitted in the 2007 AR presentation.
PLA as we now know is sitting on better resources at Kalplats than AQP ever had (with the possible exception of Mimosa - which is going to be a slow burner because of Zimbabwe's problems) and the bull run in PGMs continues. If John Lewins continues to play his hand well, PLA should be every bit as good as AQP. The country risks may arguably be greater now than say 8 years ago and there has to be a fair chance that PLA will be bought out before it realises its full potential - not that you could say that would be a discouragement for investors.
PLA now have prospecting rights over the major portion of the western limb of the Kraaipan belt where Kalplats is located. The upside for growing Kalplats is potentially enormous. Also, there is a case for arguing that RBC Capital and others' estimates of the medium term outlook for PGM prices is way too low and that they are unrealistically optimistic about the amount production able to come to market in the face of infrastructure constraints in SA. IMHO demand will outstrip supply for several years and I think the price of Pt can only continue to rise.
Buy PLA now for one of the best geared plays on Pt futures.
PLA Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
