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WEZ sitting at R0.55 is basically giving away the platinum story. Yeah the funding's been messy and the timeline keeps sliding, but palladium and platinum aren't going anywhere. If they ever get Limpopo into production properly, this thing is a 10-bagger from here. But patience is the killer, not the price.
Wesizwe still sitting on massive pgm reserves but the funding story is the real one. Debt levels are chunky and capex to bring Choppie into production is not a small ask. Argonaut and Impala had to sweat it out too when they were in dev mode, difference is commodity prices were kinder to them. At R0.55 though, if they pull off the funding without diluting the pants off existing holders, could be interesting further out.
been digging through the latest MD&A and man the capex burn is real, they're funding the selebi project almost entirely through dilution and debt at the moment. compare that to impala or northam who at least have operating cashflow to lean on and it's night and day. the thesis works if selebi comes online and pgm prices stay decent but that's a lot of ifs when the rand's under pressure too.
Man WEZ at R0.55 is basically penny stock territory now. Thing is, if they actually get that mine going the upside is stupid big, but we're talking years and a ton of capex they gotta find. Compare that to Impala or Anglo's plat division, those guys are actually producing, WEZ is still in development mode. I'm holding but not adding, can't afford to throw more at this if it goes sideways again.
Wesizwe at R0.64 is basically a bet on when they actually get into production at Bakubung. Right now you're paying for a hole in the ground and management's track record on delivery, which hasn't exactly been smooth sailing. Platinum's still got fundamentals but you need this thing operational and actually printing cash, not just burning it on development.
Interesting numbers on the capex burn, fwiw. They're still R billions away from production and the rand's been hammering them on the conversion side. Compare that to Implats or Northam already generating cash and it's a different animal. Long term thesis is solid if they get to steady state but this is basically a construction project priced like a miner, imo.
Been digging through the latest SENS filings, balance sheet's stretched tight
honestly wez has been beaten down so hard that the upside is there if they can just get the mine into production, but thats a big if. platinum prices are holding up ok and thats the tailwind, but this company still needs to execute and thats where im nervous. holding because the risk reward makes sense at 64c but not adding.