NKP 0.00% 9.9¢ nkwe platinum limited

the perfect storm

  1. 5,356 Posts.
    lightbulb Created with Sketch. 287
    I posted on here some time ago and vowed not to post again until the shares rose above 20c.
    To all concerned on this forum I apologise; and as a gesture of humility and goodwill will vow never try to predict NKP share price ever again. The developments which looks fairly straightforward have been painfully slow. The only important price really is that negotiated between Zinjin and minority Australian shareholders which have a blocking stake.
    So I now enter this forum again with a different hat on looking at the interesting political scenario presenting itself
    1) Increased demand. Besides it's value as a precious metal platinum is in demand. China needs catalytic converters. The air pollution in their major cities is now often at intolerable levels. There is also increased demand from the increased use of Fuel Cells. The anode catylst requies platinum. Look at CFU fly.
    2) There is increasing supply constraints with PGM's exaggerated by striking miners working in undermechanized mines operating at depths approaching 2000m deep. The platinum industry has been hit by intermittent strikes since 2011, in a country that contains about 80% of the world’s known platinum reserves in mines with out-dated processes dependent on manual labour.
    When I was in Kalgoolie recently we went to visit the Great Pit. and realised here was an entirely computerized operation moving driverless trucks bringing ore up from depths ¾ of that required to access Garatau’s Merenski reef. I’m not suggesting that the reef could be mined using the methods of the Great Pit but I’m sure labour intensive areas of the Opex are under scrutiny for automated technology.
    3) South African mines have had a history of ownership disputes and hundreds of PAJA review cases. The DMR is very close to getting a High Court decision to resolve all disputes which will obviously be a huge boost to the S.A. mining industry. This means that the legal issues with Anglo/ARM will be resolved.
    Zinjin have a huge opportunity to use up-to-date technology do develop one of the richest undeveloped resources on the planet.

    All factors coming together in the perfect storm.

    My sentiment is really medium term (few months) sell to Zinjin.
 
watchlist Created with Sketch. Add NKP (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.