Wesizwe Pt's cautionary tale

[miningmx.com] -- WESIZWE Platinum (Wesizwe) is still trading under a cautionary “with respect to potential transactions”, but Impala Platinum (Implats) is no longer involved according to its CEO, David Brown.

Implats was named in court papers late last year as one of two suitors that put an offer on the table for Wesizwe with the other being Chinese gold miner, Jinchuang.

Brown told Miningmx after the recent Implats’ interim results briefing that: “I am not sure we made an offer. We expressed interest in exploring possibilities with Wesizwe.

“From our perspective Wesizwe is interesting because it’s close enough to our existing operations near Rustenburg to have synergies that would enhance the economics of the project.”

However, Brown says Implats is no longer in discussions with Wesizwe because the group has its hands full with other projects – specifically the Zimplats phase two expansion, completing the turnaround at its Rustenburg mines and rightsizing the Marula operation.

Sources maintain Implats did make an offer and that it was a “low ball” one aimed at taking advantage of the mess Wesizwe found itself at the time with civil war underway between CEO Mike Solomon and various board members and between various shareholders.

What is undeniable is that market speculation continues to swirl over the possible consolidation of the platinum juniors in that region.

These include TSX-listed Platinum Group Metals and the Bafokeng Rasimone mine now controlled by the Royal Bafokeng Holdings which intends listing it this year and has major ambitions of its own in the platinum sphere.

A very busy man

THERE'S no doubt Arthur Mashiatshidi is well qualified to serve on the board of junior platinum company Wesizwe.

From what Miningmx can garner Mashiatshidi serves (or has served) as MD of Bhekisizwe Computer Services, CEO of Decorum Capital Partners, a non-executive director of Howden, CEO of Thebe, chairman of Acc-Ross (now part of Pinnacle Point) and as the chairperson of Moribi Leisure.

Perhaps most important, in the Wesizwe context, is his role as chairperson of the New Africa Mining Fund.

None of this CV information was presented in a Sens announcement earlier this week, when Mashiatshidi was appointed as Wesizwe financial director, with immediate effect.

But the lack of background information on Mashiatshidi (and two other newly appointed directors) is not our main issue.

Mashiatshidi, with the greatest respect to his achievements, hardly looks like your typical financial director. If anything Mashiatshidi (who appears to have endured a tenure at Anglo American as an auditor) looks much more like an entrepreneurial spirit and business leader than a number cruncher.

Whether Mashiatshidi, who clearly is a busy man, will be a full-time employee at Wesizwe may be a question shareholders might want to raise.