Platinum Group Metals: Junior Explorer Gaining Steam

With platinum at record highs, I had to go digging in my blog archives to find my original post on platinum plays. One of those plays that I still like today and reacquired in my simulation portfolio is Platinum Group Metals (PLG).

Back in June, I mentioned how Platinum Group Metals was the next platinum company to be bought out. In their last press release on October 16th, Platinum Group Metals was still on track to complete their feasibility study on Project 1 of their Western Bushveld Joint Venture [WBJV] by the end of the year. The mine plan for the WBJV Project 1 has steady-state production targets of 155,000 ounces of platinum and 100,000 ounces combined of palladium, rhodium and gold in concentrate per year. The mine life of the mine is projected to be around 18 years. My feelings still are, when the feasibility study is released, Platinum Group Metals'' partners in their joint venture, Anglo Platinum (AGPPY.PK) and Wesizwe Platinum, will take a serious look at buying out Platinum Group Metals interest in the project.

With platinum at record highs, and platinum companies such as Anglo Platinum having trouble meeting their output forecasts, quality projects such as the WBJV won't be in the hands of junior explorers very long.

Comments

[JSF]

This article says essentially the same, that Platinum Group Metals is the next platinum company to get bought out:

www.zacks.com/blog/com...

The best way to follow this stock is at the Stockhouse forum at:

beta.stockhouse.com/Bu...

[Dimitri]

PLG should be revisited. At US$ 2.93 one is buying almost $200 of PGM's.Co. will most likely prove resources of 7 million ozs on three projects. PT selling for $2,000/oz and RBC has a target of US$ 6.60 though values are probably much higher. If one discounts the value of the metal in the ground (US$14 billion) by 90%, one arrives at a share value of $21.