Impala goes for it
But share price movements indicate possible problems for Implats’s bid for Northam/Mvela
IF IMPALA PLATINUM (Implats) succeeds in the acquisition of Mvelaphanda Resources (Mvela) and Northam Platinum (Northam) then it will have pulled off a monumental coup. Getting hold of the 103m oz of platinum group metals (PGMs) hosted in the Booysendal deposit that Northam owns will solve Implats’s main problem – to ensure long-term growth from its South African operations.
Implats will be able to start mining at Booysendal from surface, which will make it a far more profitable operation to run than the proposed deep level Leeuwkop mine near Rustenburg. Not only that, Implats could actually end up producing more platinum in total than arch-rival Anglo Platinum – depending on how quickly it develops Booysendal and how Anglo Platinum deals with its own production problems and growth plans.
Acquiring Booysendal also reduces the perceived risk posed to Implats by its Zimbabwean mining operations. The flip side of that is, should Zimbabwe stabilise, then Implats’s growth could be explosive if it goes ahead with