Im­pala goes for it

But share price move­ments in­di­cate pos­si­ble prob­lems for Im­plats’s bid for Northam/Mvela

Finweek English Edition - - News -

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

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