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Online Share Trading

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PAN and Wits

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232926
Frequent Contributor
Anyone know what this announcement is later today. Wits trading under cautionary at the moment?
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18 REPLIES 18
klapka
Super Contributor
So are PAN. My guess, they are going to spend a lot of cash buying Evander from Harmony.
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232926
Frequent Contributor
But wouldnt harmony also be under cautionary then?
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cheapcheap
Regular Contributor
Ithink a joint venture of some sort.Wits mentioned joint ventures in their last results and the ceo of pan mentioned 3 aquisitions that they were busy with.The management of pan are good and like the ceo said, they dont jusy buy anything ,just for the sake of buying...anyway i think it will be a positive.
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partridge
Super Contributor
This could be the "asset test" - its one thing to pan in your backyard its another to tame a ...? They have a record of managing down risk - and that in this field is a PLUS.
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SimonPB
Valued Contributor
@klapka .. yip for R1.7bn .. hmmm, on hold for conference call, lets see how they spin it ..
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SimonPB
Valued Contributor
I suspect rights issue for both to raise capital
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klapka
Super Contributor
Yep, I was thinking the same thing. I have an entry in my little notebook, Harmony Oct 2011, 'Mr Briggs said Evander needs R1 billion to develop further.' That is on top of R1.7b.
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232926
Frequent Contributor
a good thing or a bad buy though?
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Not applicable
And I have never known a gold miner, or any other miner for that matter, to correctly state upfront how much money they need to develop a mine. Whatever they state, you can for sure double it.
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royandroy
Contributor
Nice one klapka! Re: buying now? I'm holding on to what I've got for the medium term but I think a buy now would need a year or more to show real profit. Any other thoughts?
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Not applicable
Well, it would be a good thing if someone was donating around R1.5bn to the cause, and not asking for the shirt off their backs in return. Otherwise, where will PAN get the money? This changes the entire profile of PAN completely, if it goes ahead, IMO. PAN is a cash positive, value stock, a low risk gold miner (if these things can actually be considered low risk). Now they are entering into the high risk - cash hungry - future reward scenario.
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klapka
Super Contributor
Probably out on a limb but I was expecting nearer R3 billion. If I'm right, they got it cheap.................assume WITS can pay their half, don't know enough about them. (my failing) I don't think PAN will need a rights offer so I'm happyish. Must admit I expected a share price knock down today on buyers remorse...........you never can tell.
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SimonPB
Valued Contributor
I think PAN can escape without a rights issue, Wits can't .. Almost PAN levergaing the Wits balance sheet, clever ..
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232926
Frequent Contributor
So Simon in your would you be buying more of PAN shares at this level for future reward?
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SimonPB
Valued Contributor
me ?? no, but then I never bought a gold share in my life ..
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cheapcheap
Regular Contributor
anyone catch " hot stox"? ,the one okes choice,says PAN will get away without a rights issue,price target of 350c and expecting a div of 9cents....
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partridge
Super Contributor
Hotstoxx - well what can one say about those views( on Pan or...)? The saving grace is that this is not a group of "newwies" with cup outstretched and some kind of a harebrained plan. These fellows have SOME kind of a track record - and especially when it comes to getting things done - albeit in in different though related field. Do you want to be part of a small group which is just a cash cow - or do you want to venture abroad. Buy Spur if the former.
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klapka
Super Contributor
It was 350 in 2007.
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