AQP Potential winner26 Jan 2013 07:48
Aquarius Platinum: "Potential winner"
Aquarius Platinum had a tough 2012, having been impacted by the South African strikes, as well as the resignation of chief executive Stuart Murray, resulting in the stock losing over half its value. It also appears that Aquarius is being discounted due to its Zimbabwean exposure, overshadowing the growth expected to come from its South African operations.
But the company appears to be on the right track. In August, the company closed the period with $180 million (£112 million) in cash and announced it would place all its unprofitable operations, including Marikana and Everest in South Africa, on care and maintenance, and focus on a turnaround at Kroondal (South Africa) and Mimosa (Zimbabwe) and its tailings operations.
"In addition to benefiting from the improved platinum market, Aquarius also stands to be a potential winner from the 'rationalisation of farm boundaries' which Anglo Platinum continues to explore in relation to its joint venture operations," commented Turner.