This share action is an excellent example of how the current stock market works. With a 40 pence base price for about 15 years, the stock has recently been shorted down to 6.5 & 5.5 pence. With Pro’s primarily focused on shorting & fear of investment, continually shorting to extracting money off each other & everyone else. There has been no attempt to ‘invest’ with a long term view of increasing the share price. The result is that ever one involved will receive a fraction of what the company could have been worth. In this case shorting stands for short sightedness & short changed.
12.9p for the worlds 4th largest platinum producer. Pro’s commonly achieve 100% on their high risk investment, so not surprising to see the offer at 100% above the 6.5p low. Also interesting that there is still massive buying @ 11.25, is this short covering or is there the possibility of a counter offer ?
platinum price is at the bottom at the moment, however, this price will not stay at the bottom for long.many are expecting the price will recover and hence there are several platinum junior minors sitting on huge assets and yet being cheaply valued. AQP is one example, where Sibanye sees this as a bargain and worth buying (and no burden of debt, unlike LMI).
so, this should crush those punters who were falsely saying nobody will be interested to buy platinum miner due to low profitability as platinum price too low. in fact, several major players who are deep pocket will be acquiring smaller companies (like AQP, JLP) while they remain cheap.
another to watch is JLP, where JLP has massive platinum assets worth around NPV $4bn and yet their mcap only 28m. perhaps all eyes are waiting for the mining licence before they put their offer.
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