[miningmx.com] – GAINS in the shares of Anglo American Platinum (Amplats) may be sharply reversed once the costs of returning strike-hit production are computed, said Bloomberg News citing Imara SP Reid.
“The market is under-estimating the costs to the mines of the strike,” Stephen Meintjes, head of research at Imara told Bloomberg News. “It is going to take a long time to ramp those back up into production,” he said.
Amplats climbed 18% this year, the most of all shares in the FTSE/JSE Africa Top40 Index after AngloGold Ashanti, said Bloomberg News.
Simon Hudson-Peacock, a money manager at Momentum Asset Management, said however the gains were related to potential corporate action.
“It’s not the platinum price, not the rand. It’s more along the expectations for value unlock at some stage, in one form or another,” he said referring to possible proposals by Amplats’ 80% shareholder, Anglo American, to sell its shares in its subsidiary.
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