Our opinion on the current state of WESIZWE(WEZ)
Wesizwe (WEZ) is a miner of platinum group metals (PGMs) through its development of the Bakubung Platinum Mine (BPM). The mine is being developed to access the Merensky and Upper Group 2 (UG2) resources, located near Rustenburg on the Western Limb of the Bushveld Complex. In addition to BPM, the company owns 17.1% of projects 1 and 3 of Maseve Investments.
In its results for the six months to 30th June 2024, Wesizwe reported headline earnings per share (HEPS) of 7.36c per share, a significant improvement compared to a loss of 59.63c in the previous period. The company stated, "Administration expenditure increased by 749% to R35.05 million, from R4.13 million in the prior corresponding period. - Net foreign exchange gains of R170 million due to the strengthening of the Rand against the US Dollar (2023: R1.783 billion loss)."
The share trades about R145,000 worth on average every day, making it viable for small private investors. However, Wesizwe is a marginal precious metals company, and its performance is heavily dependent on PGM prices, which makes it a risky investment. The share price has fallen from a high of 197c in October 2021 to around 53c following recent results.
Given its volatility and risk profile, there are likely better options available in the PGM market for investors.
In its results for the six months to 30th June 2024, Wesizwe reported headline earnings per share (HEPS) of 7.36c per share, a significant improvement compared to a loss of 59.63c in the previous period. The company stated, "Administration expenditure increased by 749% to R35.05 million, from R4.13 million in the prior corresponding period. - Net foreign exchange gains of R170 million due to the strengthening of the Rand against the US Dollar (2023: R1.783 billion loss)."
The share trades about R145,000 worth on average every day, making it viable for small private investors. However, Wesizwe is a marginal precious metals company, and its performance is heavily dependent on PGM prices, which makes it a risky investment. The share price has fallen from a high of 197c in October 2021 to around 53c following recent results.
Given its volatility and risk profile, there are likely better options available in the PGM market for investors.
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