PETMIN

Finweek English Edition - - INVESTMENT -

Stock­bro­ker­age Imara SP Reid is bullish on the out­look for this small-cap re­source stock, in par­tic­u­lar on the back of its Somkhele project and its North At­lantic Iron Cor­po­ra­tion (NAIC) link. An­a­lyst Percy Takunda ad­vised: “Somkhele lost ap­prox­i­mately 30 days of pro­duc­tion days due to labour un­rest and un­usu­ally high rain­fall. Capex is largely com­plete, and man­age­ment be­lieves FY13 will be the first year to ben­e­fit from the sig­nif­i­cant in­vest­ment of the last two years. NAIC will report an up­dated re­source, which will en­hance its value. We ex­pect the as­set to be spun-off and ul­ti­mately to be listed sep­a­rately. The eco­nom­ics of an­thracite are quite sound with new in­ter­est coming from SA fer­rochrome pro­duc­ers.”

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