Australian (ASX) Stock Market Forum

PLA - Platinum Australia

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tezz said:
yeah they are going very well, upgraded their resource and will be mining soon, I got in at $1.85 and with the bear market starting in August they are one of the few that never fell heavely like most of the other stocks, I wish I had bought more of them now with PT over $2000 plus PD and AU and such a huge resource, It may go to $10 in a couple of years who knows
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I agree. This stock has also shown some stability since the market crash. I personally bought in at 2.55, so not nearly as lucky as you (i.e just before the market crash I didn't predict that well). Not one of my strongest trades but still I can see upside. They keep to their targets, and they seem to have everything covered in terms of their projects.

Lets hope that by the end of July we see some action from their Smokey Hills project.
 
PLA.ASX

Any views on Platinum Australia. Looks as thought they need China to start buying cars and Sount Africa to fix thier power problems. HAd this compnay recommended by Fat Prophets, so i guess they have some positives. NOt at present though
 
Hopefully the oil price retrace will encourge new buyers into the car market with a autocatalyst in there mind when purchasing
Short term blip.
 
Anyone have any thoughts on this stock?

Just a couple days ago saw high volume on a turning point. However didn't take it (have to admit fear paralysed me quite a bit with my recent losses on this one).

Has any TA guys taken a look at this one? There are still downside risks to platinum not including the US automakers, Chinese demand for auto's in the short term down, etc. However that hasn't stopped it from rising 100% in the last few days. Still below what I sold it at though.
 
PLA Platinum Australia

The name is a misnomer - their platinum assets are in South Africa. They are bringing one project on line now and have another at BFS stage.

Smokey Hills is commissioning currently (69.75% interest)
1 Moz resource - open pit and shallow underground targeting 95,000 oz per year of 4E PGM. 15% hedged at 2000USD/oz Pt and 500USD/oz Pd. Expected cash cost of 190 USD/oz which is at the seriously low end of industry production cost curve. Life of mine offtake agreements etc, etc... All good stuff.

Kalahari Platinum project (49% JV)
4.2 Moz PGM resource
targeting 120koz to 300koz per year at 200 to 300 USD/oz from multiple open pits
head grade expected at 2.5 to 3.5 g/t
Expected production by 2011 BFS due by end of 2008 (very soon???)

Platinum price is in a bit of a hole at present on fears over reduced demand for automotive catalytic converters but, as with so many commodities, price is now below average cost of production suggesting an overshoot that will correct given a little time. In any case appears to be very profitable at curent prices...

Looks like it has the goods and the market has started to move them up in recent days.
 
PLA-An ideal investment in these times

I am surprised that this thread is not a lot more active when you start to look at this company. I acquired a reasonable holding several months ago when, going by the market indices, all was doom and gloom.

Consider the attributes of PLA:

a) It has moved from explorer to producer status having already started shipping concentrate.

b) The beauty of platinum is a natural hedge. It has industrial applications and is a precious metal, so it benefits from a rush havens such as gold and also benefits when industrial production picks up ie there is a move away gold.

c) It is one of the cheapest platinum producers about.

d) One of its major applications is in the auto industry which is being hammered right now, yet consider that with increasing controls over pollution its use in things such as catalytic converters is a necessity in pollution control. (Note there are alternatives but my understanding is these are not as efficient.)

e) In the third quarter of 2008 platinum fell from a high of over USD 2000 to be virtually on a par with gold and the two matched each other up to nearly USD1000. Since then gold has fallen back to about USD 850 and platinum has moved to about USD1200. Maybe this is a sign of an increase in investor confidence as traditional safe havens are deserted

f) Smokey Hills is currently producing (PLA interest in cashflows 85%) and PLA has a second project called Kalahari Platinum which is in the discovery phase, it seems to me that no value has been attributed to the potential of the latter project.

I bought into PLA at 55cents, it is now about 80 cents and IMO has the potential to easily reach $1.40 plus over the next 12 months. I think that the key risk to PLA is that it will be eyeballed by some of the big players before its full value can be unlocked.

Have a look at the Dec 2008 financials which are available on the ASX site and you may like what you see.

Disclosure-I hold and paid my budgie 2 packets of birdseed for the above analysis, so it is its fault, not mine

Cheers:D
 
Re: PLA -Update

The price of PLA has moved up by 14 cents from 80 to 94 and the announcement a few days ago indicates the Kalahari tenement looks exceptionally promising.

Cheers:D
 
I luv to see what kinda cash flow they are expecting in the next 12 months. They are expecting payment for their 1st shipment in April, I wonder how much?? Could be $10k, could be $100k, it make 1 hell of a difference.

I have doubled my holdings in PLA and could like to buy more but not until I know if they will be cashflow positive. Anyone got any information?
 
Hello :), New tothis forum - have been with HC. Just checking PLA for medium to long term (12mth+). Appreciate any tips on PLA. :D
 
yeah

i got in at .14 and sold out at $3.. it was one hell of a ride..

its a share that needs close scrutiny, as things have changed politically in SA..
 
PLA is now $1.05, I still think it has some upside but todays movement tends to indicate that the market has woken up to it now that it is a producer. Also the release on the Kalahari resource in late April no doubt gave it a bit of a positive boost.

Cheers:D
 
I like the look of this stock and think I might take a small parcel over the next few days even after yesterdays strong performance and announcement.

Doing a little research on it I think the fundamentals are there for a reasonable investment.

Would be interested in any further thoughts on PLA.

Thanks

Gusto
 
PLA is definetly a good stock with plenty of potential. South Africa hold more than 90% of the world's known deposits of platinum. PLA has a good deposit in Smokey Hill and it is a credit to the Company to bring Smokey Hill into production in less than 2 years.

They are very smart to bring the Smokey Hill which is a smaller deposit on-line first to start producing cash flow. They are now working on the bigger deposit in Kalpat. If they can emulate Smokey Hill, Kalpat should start producing within 2 years.

PLA is showing charateristics of becoming a good low cost mid size producer. Traditionally Platinum is about twice the price of gold but lately it is only fetching a 30% premium. This is because of the down turn in the car industry. Modern petrol car catalsyt convertors use platinum but paladin can be used as a substitue. The convertors for diesel cars still needs platinum, there is no substitute.

When the car market turns around and more people turn to diesel, the demand for platinum will increase. PLA is well placed to take full advantage of this. The timing of PLA reaching full production and the recovery of world markets seems to compliment each other.

My personal prediction is for PLA to push $1.60 by end of 2009. Beyond that is blue sky. As always dyor.
 
I bought some of these yesterday. The recent cap raising was a little deterrent
but promising announcement this week was enough to entice me. The HOA signed with Atla in SA.

I agree with most recent posts on this thread, very important to have moved from ex/dev to prod now.

Also, looks to be the most smashed of all the precious metals and there appears plenty of room for upside with this one. JMO
 
I have been watching this one for a while now.

Quite frustrated that I didnt buy in when it was languishing around 50c and then around 80c about a month or two ago.

The capital raising has not been detrimental effect on the share-price which is a good sign!
 
PLA spiked up 14% today on no real news. I heard Nick Radge advise to sell PLA last night on sky business because its already had its run and that there is no real upside from here. Today has disproven his advice. What are everyone's thoughts on where this is headed? Is it good to get in/out?:confused:
 
Personally I just bought in last week so I wont be selling!

In today's fat prophets trading report they said they anticipate further gains in the weeks ahead with PLA, as the fact that there is no recent chart resistance above current prices could result in a quick rally to the upside...

Also, a possible takeover target as the Platinum industry looks to consolidate...
 
I expect a maiden profit to be announced soon. They will be repaying the bank loan and realise a hugh fx hedging profit. Plus the smokey hill project should reach it's planned production level. It is all blue sky provide platinum prices continue it's slow but steady climb as the global economies recover. The next 12 months is very exciting for this stock.
 
Fantastic volume today and announcement of two resource upgrades.

Apparently there is a rather large general strike in SA ATM. Didn't deter this one from going up today :D Nice!

Still hold

DYOR
 
JWR said:
PLA spiked up 14% today on no real news. I heard Nick Radge advise to sell PLA last night on sky business because its already had its run and that there is no real upside from here. Today has disproven his advice. What are everyone's thoughts on where this is headed? Is it good to get in/out?:confused:
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So it turned out that day was the last swing high for PLA at ~$1.25. Yesterday it closed $0.83...although a little sign of life on the chart now.
 
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