CLOBBERED

[#1]

Again WEZ is being clobbered more than the general market...any ideas why??????

[#2]

i don't track this share specifically, but in general I read that platinum producers breakeven point is $1000 per ounce. Small players better have deep cash reserves to survive since infrastructure finance is not available. Also, most mines are advised to cut production to reduce surplus. In the light of htis, there is large risk of small players going bankrupt Hope this helps

[Mr_S]

iv kissed my investment goodbye, im jus watching it deminish! im not even gon bother to sell..

[#4]

None of my business, but what price did you get in Mr S?

[Mr_S]

think abount 6 bucks! lol dont ask abt my stop loss, i decided to cancell all stops and ride the storm, but this is way too much!

[_nova]

WEZ is in a unique position to weather the storm. They do not have the kind of operational costs that producers currently face. They're sitting on a high grade, shallow asset. The breakeven costs for PT producers is between USD1100 and USD1400 based on ZAR7.00 to ZAR8.00. WEZ can slow down capex or even shelve the project until such time as the PT price corrects on demand and supply. MrS, I strongly recommend you contact Fred Cornet (WEZ Investor Relations) and have a chat with him.

[chas]

What shocking about this share - was that Investec did a report in April last year - 07 - ( it is on the WEZ site ) - targeting about R 14 - 50!I appreciate Platnuim price has dropped a 100% odd but this share has dropped approx 700%.Painful indeed.

[Running_bull]

Only thing considering is they still need some funding, and at the moment this is difficult to come by. Other than that, a good share for the long term.

[_nova]

They already raised the 200 bars they needed to fund the project. Whether they'll spend it right now is debatable. I'd expect them to go into hibernation mode until the markets stabilise. No point in doing a capex before the volatility settles. On the other hand, their strength is very much in that they're not running the risk of building up operational losses like the other PT producers. WEZ is in fact in a much more comfortable position than the operational guys. The only thing supporting these guys right now is the weak ZAR. If the ZAR strengthens and PT stays below USD800 then you're going to see small and some big producers fold. The big guys are also going to shelve many projects and lower grade deposits. It's a cycle, this in turn will create a supply vacuum within the medium term say 2 to 3 years. At some point there will be demand again and the price will correct to sustainable levels. At current resource price levels it's not just the small guys who are at risk, frankly 'RSA Inc' is at risk of insolvency

[#10]

another good slap. when is this going to stop taking punishment????any thoughts

[chas]

So much for the recommendation which is a "BUY' - from the broking community - also see Money Web interview last night by Alex Hog. Hennie even u must be taking strain?

[#12]

Up 34% today can it regain it previous strenght upwards, saw a high of R11 not so long ago. Any thoughts??

[Mr_S]

After reading their SENS announcement today (which i believe they always try sweeten up) i am begining to have confidence that the company is set to weather the storm, theres something bugging me about the amount of cash they have on hand though..i do agree with their approach (continue with capex either at a slower rate etc, due to the fact that the market is bound to correct according to fundamentals..ill do a little research into their cash reserves etc and maybe will throw some bucks in, cos i always did like the company (fundamentally)

[_nova]

long term you won't go wrong. WEZ is very lucky in that it's uniquely positioned to weather the storm. It doesn't have nearly the operational costs of other small operators and it has no production costs right now. It can also easily stretch out the capex period by quite a bit. In fact, the current conditions are in WEZ's favour. You are going to see smaller operators go under or get taken over by bigger players since the current PT price is simply unsustainable even for AMS. The net effect is going to be that production will reduce and a supply vacuum will emerge once the recession ends, which should be in 18 to 24 months time, exactly when WEZ is set to go into production. Also consider that a recession begets deflation and that in itself will likely reduce some of the capex costs for WEZ. Anyway, go look on www.wesizwe.co.za under Media Centre > Market News and read the transcript of Mike Solomon's interview with Alec Hogg on 27 Oct 08. This is exactly what Mike says and he's a pretty savvy CEO.