PTM - buyout after BFS?
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I hear Xstrata is looking...
http://www.busrep.co.za/index.php?fSectionId=&fArticleId=4285575
Xstrata needs an acquisition to meet platinum target, say analystsMarch 4, 2008
By Justin Brown
Johannesburg - Xstrata would need to make a major acquisition and find alternative sources of power to achieve its very ambitious target of raising annual platinum output above 1 million ounces by 2018, analysts said yesterday.
Xstrata acquired Eland Platinum for $1 billion (R7.9 billion) last year. Eland had earlier forecast annual output of 160 000 ounces of all platinum group metals in concentrate, rising to 270 000 ounces by 2012 and to 1 million ounces by 2015.
Mick Davis, Xstrata's chief executive, said yesterday the Elandfontein mine was set to double output to 366 000 ounces.
Stephen Roelofse, resources analyst at Sanlam Investment Management, said Xstrata's target was "very ambitious".
To achieve it, Xstrata would need access to more platinum resources via acquisitions.
South Africa's power shortage was expected to last for up to six years, and Xstrata would also need to put in place its own refining and smelting facilities, Roelofse said. "Xstrata must have something up its sleeve."To help expand platinum output from just less than 48 000 ounces to 1 million by 2018, Xstrata plans to develop a 500 000-ton-a-month underground mine and double the Eland concentrator's capacity.
Davis said Xstrata would spend $26 million over two years to explore the Beestkraal area near Elandfontein.
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