Is this a dip in line with the rest of the market ?

[krust]

Can anyone give their two cents worth on what is happening ? I cannot see anything fundamentally but maybe someone knows something.

[Wino]

This is a Gilbertson play. Not much is known about Faberge, interims will be illuminating. Platmin is still battling to get to production, once open cast is running, then have to sink shafts and waiting for approval to change in environment plan. Iron ore interests in Kalahari still requires a railway line amongst other things. Gems doing ok. In short a long, long term play. If you have shares, put them away, if you don't, and you believe the Gilbertson magic will pull it off, then accumulate on weakness and put away.

[krust]

Thanks for the info. However OST have this share on a 45% NAV discount ? If there are things up in the air then how can they value it like they do ?

[Wino]

Probably based on balance sheet asset values. That is one thing, getting those assets to production will take a lot of mullah. Therefore, whatever cash is generated will be directed towards capitalising their assets, therefore little chance of income for you and me and also bring into the equation the high risk factor, hence the discount on NAV. This is normal for developmental plays.

[partridge]

I agree with Wino - the issues are all about the cost of recovery and value add - you can see where the Faberge link comes in if they are mining exotic coloured gemstones..But despite what some marketing tyros have said on this site about Faberge its a top end brand BUT its not like RCH with boutiques on every Shanghai street corner - and so its not going to be able to be a volume outlet - it offers value and therefore massive markup potential. I think you buy this share as a mining share and enjoy the bonus of Faberge - I think they will sell it in due course.....