As was the case when I wrote about South African platinum producer Aquarius (OTCPK:AQPTY), I can't help but feel a little sorry for management Impala Platinum (OTCQX:IMPUY)
(also known as "Implats"). Dealing with the rapacious government in
Zimbabwe was more than enough of a headache, and now the top three South
African platinum producers are dealing with an extended strike that is
running down their inventories and threatening significant cost
increases over the coming years.
At some point the strike in South Africa will end and Implats, Anglo American Platinum (OTCPK:AGPPY), and Lonmin plc (OTCPK:LNMIY)
will get back to business. The strike is likely running down global
platinum inventories, but there is certainly the risk that higher wage
costs at notoriously labor-intensive mines will weigh on the sector for
years. Barring yet another attempt from the government of Zimbabwe to
shake down the platinum miners, I would argue that Implats offers an
investors a rocky short-term road, but decent value for the long-term.
Read the full article here:
Impala Platinum Seeing Short-Term Pain For Uncertain Gains
No comments:
Post a Comment