Ba*****eng Rasimone Platinum IPO

[kwagga]

Has anyone considered taking part in this IPO ? Barry, have you has a look at this ? They must have something good to offer if Implats wanted to buy them for $2.9bn bn (R20 bn) while analysts value them at between R9-11 bn. Simon, could we partake in this IPO via OST ?

[barry_1]

Hi Kwagga,have been watching for some time.Unlike other Start up this tribe through their finesse have always done very well with most of their assets.Merafe with occasional bursts of better results ,cannot by any means be said to be a roaring success.So they have had their failures as well.I myself am not thinking of buying unless the m PGM market takes off in a big way.It is possible they are pricing this share just too high and if you think of entering it might be better to wait as the price is likely to decline at this stage.Pity there is a spat with Angloplat as there really too many plat compqnies out there at the moment.OMO

[kwagga]

Barry, I was quite surprised to see the number of assets under control including Metrafe. My question is this - Are they likely to be overpriced in a market like this? PGM's are hardly in a massive bull run and has in fact underperformed the market. How much is the fact that they are fully black empowered worth in a country where growing empowerment targets in the mining industry continue to dilute shareholder value via additional share issues, financing etc? Is it just me but are many shareholders and potential shareholders tired of waiting for the SA mining industry and the DMR to get its act together. I really can't make up my mind about this one..

[SimonPB]

if it is offered, then yes ..

[#5]

I personally think that platinum in the ground, with no plant to pull it out, is very difficult to evaluate. The risks involved for greenfield operations are way, way too high. First you have to do your BFS - (hopefully this is done already?), that takes about 1 year, I think. Then you have to strip mine the surface, then you have to build the plant. The value of the mineral rights is cool, if you intend selling them, but if you intend pulling it out hte ground and processing it, then the value is more related to the ROCE, so then a whole lot of factors come into play e.g. 1) how quickly they can bring the plant up to speed, 2) how accurate the BFS is 3)what kind of mine management skills do they employ 4) will they be sufficiently capitalized (has anyone ever found a startup that was adequately capitalized from the word go?) 5) will they hit production targets 6) will they keep their costs in check, etc. Look at the problems Platmin is facing, and they have some of the best brains in the business driving them

[john_1]

I want you to know I really value your considered opinion..

[#7]

seriously? or tongue in cheek - never can tell with you (lol)?

[kwagga]

They are already a 270 000oz platinum company. Everything is there it to grow to 420 000oz per year in 2017 with additional funding. That's why this is the largest mining listing in 10 years in SA. You're buying into a going concern and not an exploration or third tier mining company. They currently make a few hundred million profits annually. What I don't like is the fact that the listing price is not predetermined. There is a huge difference between R56 and R65 per share. Why can't they fix the price before they list. Is this a game of we'll wait for the demand for the IPO first and then determine what premium we place on the share price. That's nonsense in my books. That's like intruducing a new Merc on the market and then, based on the demand determine the price. Never heard of something like this.

[john_1]

Skaap...serriously I do usually look for lighter angle, but you often really take the time to contribute..You must have caught me on a good day!