takeover??30 Aug 2018 11:55
this is massive news for JLP as it shows that Northam is committed and may do more deal and even wont be surprised if Northam will start taking % stake in JLP or even do takeover/assets buyout.
- Northam wants to expand tailing process, of which JLP is heavily involved.
"In recycling it’s the opposite – you need a large collection network. So we need a relationship with a party that have that large collection network.”
- so takeover may come sooner rather than later, but they want to make sure the process/project is working first imho
"While the immediate priority is project execution, Dunne (Northam) doesn’t exclude further acquisitions in South Africa."
- since JLP is also in ZINC/Kabwe, so potentially JLP can sell all our platinum/chrome/pgm tailing to Northam for premium. that will generate cash multiple of our mcap
"... it is one of bolt-on, asset-level purchase, 100% ownership, cash-type transactions, That’s our preferred methodology, and of course, there aren’t many left to do."
- and JLP is one of the remaining small player in the market that Northam can easily buy all for cash. even for 100m is still cheap for Northam imho (and Northam is billion dollar mcap)
buy while still unloved by the massess
https://www.miningmx.com/special-reports/mining-yearbook/mining-yearbook-2018/34128-northams-dunne-undaunted-by-surprising-platinum-price/