why is nkp so cheap??, page-9

Thanks for your replies.

Does NKP end up with 40% of the 1 million oz pa forecast platinum production or 50%?

I was under the impression that if the BFS demonstrates an acceptable ‘internal hurdle rate’ then Xstrata would earn a 37% interest and would then acquire a further 13% from Genorah Resources to take its overall interest to 50%. Nkwe at this point would be diluted to 47% but would acquire a 3% interest from Genorah Resources thus reaching 50% as well.

The final ownership would then stand at 50:50 between Xstrata and Nkwe. At that stage Nkwe’s share of concentrate would be free to be sold to any third party. Is the 50:50 partnership correct or does Nkwe end up as a junior partner?

Seems that if everything goes to plan that Genorah Resources will control > 50% of NKP share capital which I understand would be greater than BEE legislative requirements.

Is that maybe seen as a problem for the company by the market?


Stagman