How Northam became the top PGM pick
The cost of its failed RBPlat bid aside, not emerging victorious in the battle against Implats makes the miner a far surer bet, say analysts
Northam Platinum ended more than 18 months of high-stakes corporate theatre when it reversed out of a potentially balance sheet-destroying bid for Royal Bafokeng Platinum (RBPlat) in April. Yet instead of leaving shareholders ragged, the company is now the preferred share of the platinum group metals (PGM) sector.
“Compared with peers, Northam is most able to sustain earnings at spot prices and will continue to improve its balance sheet,” says Adrian Hammond, an analyst for SBG Securities. “For these reasons, we reiterate Northam as our top pick.” ..
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