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Aquarius Platinum (AQP)

Business description

Aquarius Platinum is the world's fourth largest producer of platinum group metals and operates four mines in South Africa and one in Zimbabwe. These include Kroondal (50% interest), Marikana (50%), Blue Ridge (50%) Everest (100%) and Mimosa (50%). The company also owns two tailings retreatment operations.

Fund-raising

Company Comment - Fund-raising | Mining | 30/03/2009

The recent fund-raising by Aquarius Platinum removes the uncertainty surrounding its debt repayment obligations and provides the company with the necessary capital expenditure to restart its (temporarily suspended) Everest mine. The remaining funds will be applied to the Blue Ridge mine, assuming Aquarius’s acquisition of Ridge Mining completes. On the basis of a discounted dividend flow and a minor (-0.2%) revision to our production forecast for FY09, we derive a value for the combined Aquarius/Ridge entity of 209p/share, excluding the additional Aquarius shares to be issued. Taking these into account, this value reduces to 153p/fully diluted share. It appears, therefore, that the market is ascribing a 57p premium to the shares on the basis of the company’s improved cash position.

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Stock data

Market cap.£181.1m
Last close12.000p
High / Low (52 weeks)15.2p / 5.7p
Stock market listing
Forecast net debt (m)N/A
Forecast gearing ratio (%)N/A
TeamResources - Mining
SectorMining

Price performance

%1m3m12m
Actual14.36.7(20)
Relative *14.913.4(14.6)

* % Relative to local index