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Eastplats may be JSE's next platinum 'sleeper' Posted: Wed, 09 Jul 2008 [miningmx.com] -- PLATINUM juniors have fallen out of favour as part of the market’s current broad disenchantment with mining junior stocks in general. But that could have set up a buying opportunity in TSX and JSE-listed Eastern Platinum (Eastplats). Eastplats’s price actually dropped on the JSE to R19.30/share from R20/share following the release of last week’s production update confirming the company was targeting production of 530,000 ounces of platinum group metals (PGMs) by end-2012. The key point is that Eastplats is already in operation: it will produce 128,500 ounces of PGMs this year from its Crocodile River mine. Yet the market continues to rate the company as if it were merely an explorer. As CEO Ian Rozier told the RBC Capital Markets platinum conference in London in May: “We’ve taken the risk out of Eastplats. We’re getting the production and the recoveries we said we would.” Following the production update, RBC Capital Markets commented: “Eastplats is unusual among junior companies in actually being able to reap the benefits of the record metal price environments. Consequently, RBC retains its positive view on the company and reiterates its average risk ratings.” Click Here to subscribe to our daily newsletter
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