Hi AgainYeah, I know I said I was moving on, but in line with...

Hi Again

Yeah, I know I said I was moving on, but in line with Parmenio's frustration, the article below does resonate in favour of PLV and helps to set the scene going forward.

I have no doubt that PLV will be back on track shortly, in an operating environment much more conducive to the stocks prospects.

Full demand recovery for steel expected in 2010

- World Steel Association

China expected to show an 18.8% jump in apparent consumption this year

Monday , 12 Oct 2009

LINK:
http://www.mineweb.co.za/mineweb/view/mineweb/en/page39?oid=90586&sn=Detail

Click Here

Global steel consumption will rebound by more than 9% next year, recovering after this year's 8.6% decline, which was less severe than earlier expected thanks to strong China growth, a global body said on Monday.

China, by far the world's biggest producer of steel, will show an 18.8% jump in apparent consumption to 526 million tonnes this year, the World Steel Association said on Monday. The body previously expected China's demand to fall 5%.

In April, the group had forecast that global apparent consumption -- which does not make any adjustments for possible changes in stock levels -- would fall 14.1% this year.

"The global recovery is stronger than we predicted in April. According to our current forecast, China will rebound 19 percent in 2009 and 5 percent in 2010," Daniel Novegil, chairman of the World Steel Economics committee, said in a statement.

Global demand will rise 9.2 percent to 1.206 billion tonnes next year from 1.104 billion tonnes, the group said in its first forecast for 2010.

The recession slashed global steel demand deeply this year, cutting into earnings for industry leaders such as ArcelorMittal (ISPA.AS: Quote), but Chinese production has boomed as Beijing embarked on an infrastructure-focused stimulus plan.

But analysts have raised questions about the sustainability of China's unexpectedly strong growth, questioning how much of it is speculative demand versus end-use.

"Emerging economies will slow down 17% in 2009 but grow 12% in 2010. Apparent steel use in developed economies that contracted 34 percent in 2009 will rebound 15% in 2010. Therefore the World Steel Association forecasts that global steel demand will return to growth in 2010."

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COMMENT:

The washup to the recent "premium financing deal" not getting over the line, could mean that a few traders have deserted the ship, but other than that, the company will re-adjust and get on with the business of developing its core businesses.

In 12 months time, it will be interesting to review where PLV sits and to contrast its progress against the vague and unsubstantiated negativity that has dominated the threads of late.

I'm predicting that the company will be successful in growing its resource inventory close to the levels predicted, that native title will progress satisfactorily for all concerned, that strategic alliances will be secured that guarantees the company's funding requirements, and that government approvals for mining will be well advanced.

All of the above is eminently achievable and it all starts with a successful SPP or Rights Offer, presumably to be announced in the near future.

Cheers
Nev