Emerging precious metals exploration and mining company Platfields Limited says that it plans to list on the JSE Limited (JSE) soon, “fulfillment of the regulatory requirements and market conditions permitting”.
CEO Bongani Mbindwane told journalists at a media briefing today that the company has spent much of the past six months:
“Our listing timetable has been governed both by the diligence with which we have sought to meet the JSE’s listing requirements and by the global economic crisis,” Mbindwane said.
“We believe it would have been foolhardy to have pressed ahead with a listing at the time of extreme market volatility at the end of 2008 even had we crossed all of the regulatory hurdles in time; we have drawn some encouragement from the recent strengthening in the platinum price and stabilisation in the palladium and rhodium prices.”
Mbindwane stressed that the raising of capital was not Platfields’ primary motivation for a JSE listing but said he had been encouraged by the level of interest seen in the sector in spite of the global downturn.
“We have been motivated more by a desire to fulfill an undertaking given to our very patient private shareholders to list and to enhance the attractiveness of our share in our pursuit of new assets.”
He said that – market conditions depending – the company would seek to raise R200 million around July 2009 and a further R250 million during 2010, primarily to advance its exploration programme.
Mbindwane said the company had added a third project, Tigerpoort, to its PGM portfolio.
“In November 2008, we were awarded a prospecting right over the 500-hectare farm Tigerpoort 426KS, which is adjacent to our 1 000-hectare, near-surface Leeuwkop PGM Project at the north-western end of the Eastern Limb of the Bushveld Complex.
“Still very much an early-stage project, we believe Tigerpoort could be either a logical extension to Leeuwkop, which has a mean exploration target of up to 1.95 million ounces, or indeed a stand-alone project.”
Mbindwane said that – in the medium term, in addition to exploration, development and mining – Platfields intended to assemble a range of complementary but diversified services – specifically consulting and processing and smelting – in order to become a true ‘value-chain’ business.
“Our purpose would be to reduce input and operational costs; ensure uninterrupted delivery and security of services; increase business and operational flexibility; generate multiple but separate revenue streams; and attract and retain a diversity of skills.”
Platfields’ Director of Operations, Joshua Hattingh, said the company was “half-way” towards completion of a 12-month exploration drilling programme to define a resource at its 6 000-hectare Berg PGM Project located at the southern end of the Eastern Limb. Berg exploration data to date indicates a total potential target of up to 16 million ounces.
At Leeuwkop, the first phase of a two-phase drilling programme comprising 29 boreholes had begun in December 2008, Hattingh said, while at the Grootfonteinberg Gold Project in the Transvaal Drakensberg Goldfields, a two-phase drilling programme comprising 13 boreholes had been initiated. Grootfonteinberg exploration data indicates a target of up to 3.43 million ounces.
Mbindwane said that, looking ahead, Platfields anticipated continuing market volatility and would consequently “go with the flow”, charting a “cautious and considered” course forward.
“We will look to possibilities for generating earlier cash flows, controlling costs and acquiring and retaining the skills we need; maintaining disciplined, phased exploration planning and conservative capital raising; and accelerating growth across the value chain through acquisitions and strategic ventures.”
James Duncan
Russell and Associates
+27 11 880-3924
+27 82 892-8052
Bongani Mbindwane
Chief Executive
E-mail: bongani@platfields.co.za
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