Platinum Group recently completed a $ 180 million equity funding and a credit approval for $ 260m for the WBJV Project 1 mine and exploration at Waterberg. What has taken place over the past month is money flow from the offering, when the company issued 225,000,000 common shares at C$0.80 per common share.
The bookrunners on this offering are pushing for an additional 15% of the offering. Thishey did their is a time to be selling. PLG did their funding and now the stock will resume it's downward path. It was pumped up for the offering. It won't be a buy again until it goes back under $0.97.
PLG still has no assuance that a mining right will be granted. The money flow from the offering, when the company issued 225,000,000 common shares at C$0.80 per/share will be unwound.
I'll post a reminder when this is back under $0.99.
bullish- There isno way that a miningrigt won't be granted. 1) SAfrica needs revenue, they are ambitios in all their promises and they need rev. to get reelected.2) Unemployment is high is SA-need evey job they can get.3) Amplats will close at least several mines in the next quarter especially with Plat. dropping in price. PLG has been given rights for exploration on Waterburg(additional). The mineral and resource heads as well as the unions need more mines not less. If the secondary offeing was used for A&G or general coorperate expenses I wouldbe suspect bu its not. Remember the offering was same size as outstanding shares- Means valuation should havebeen cut in half. Why didn't price of offering be in the .60 cent level? Because that was the high valuation ($1.20) pre secondary. Read some of your othr posts, intelligentin nature buton this one you did no homework and are looking 2 dimentionally at the company. Price of Platinum drop has caused this pullback.
Nice try but your analysis makes no sense. I really don't see below a buck
ever again...if you do keep shorting and have your butt handed to you. It's
all about cash flow and keeping costs in line. You obviously did not get
the Annual Report..why would you?
I've never shorted this company and that was a simple assumption that was wrong on your part.
That pruice spike came from the 'offering'. Wait and watch. You'll see PLG back under $0.97 before too long.
His post betrays a lack of knowledge. The increase from enthusiastic buying, has all been post financing which was completed (done...sold...money raised). The shares were bought by big institutional investors such as Blackrock, JP Morgan Asset Mgnt, and the largest block was bought by another mining company. I believe there was interested money on the sidelines, waiting for confirmation that the Waterberg strike continued to rise toward the surface to the north as speculated. It was publicly confirmed Monday with additional potential found. This is very meaningful in terms of reducing risk on the existing expectations of future open pit, high margin, mining. This was reported Monday Feb 4th and this is when we had our recent initial jump to 1.25 and ensuing week long accumulation. I think there may be a little profit taking but realize there is still buying on the other end of that supporting us in the 1.40 range. I think we should have good support here and will see it move higher from here. But don't trade based on my speculation. It is just an opinion, but I feel PLG is worth more to the broader market due to the confirmation of the strike being so near the surface and continuing to rise (even better because in this new area to the north their percentage of ownership increases from 49% to (I believe) 87%. So this news was important to those following developments at Waterberg. I think as they continue to drill there is a good chance PLG's tangible asset value will increase substantially. If this proves correct, is confirmed with further drilling and assessments, PLG's share value should rise further, possibly into the $2 and $3 dollar range. After their mining operations begin in late 2014 and through 2016 (and no doubt more when they begin operations at Waterberg) I expect their value to double from there. Because I assign a good chance of Waterberg being further proved out as they hope it does (others may want to wait and see) I am continuing to hold my shares.
Srry but your analysis doesn't takeinto account many many tail winds to this stock. Sorry you got stuck on your short that your holding. 1) Amplats is butting heads with SA govt but will close at least 2 mines. PLG will use less human labor because of the depth of discovery at W. Reason why stock was so low ($1-1.20) was because of financing-they have that in place now. China is now investing in SAfrican Platinum,enough said. Glencore has applied for listing in SA. Thy are about to buy some properties and mines in SA.
Sentiment: Strong Buy