I've been watching this stock for a while. This is my opinion. I...

I've been watching this stock for a while.

This is my opinion. I like to follow the smart money and George Soros' Fund invested in this company during the GFC for a reason. (He also invested in MGO, which I hold) Partly a hyper inflaton protection pay but also because out of all the other resource stocks PLA must have passed the sniff test, must have had sound resources and at the time a sound plan. Losing Soros last year was a real red flag. Since then its been the play toy of the robots.

I believe management whom have now back the company with there own funds (a good sign) can turn this company around and change its fortunes. Its not going to happen this quarter, this will be a patient play.

Another bull point is the inflation outlook which will boost the underlying resource worth.

Industry consolidation or mearly someone big seeing the value in assets is another point at this level.

That said this is South Africa which increasingly is going backwards, it has a history of labour issues, the CapEx spend to correct the external managements shortcuts could be large.

From my analysis I've got a share valuation in 9-12 months of 38c provided things can incrementally go right. A lot of things can go wrong but the share price has tested the limits of its downside. Short term it could go to 8c.

I've bought in at 10c yesterday and will allocate more funds if it heads to 8c. This is a small slice of my portfolio but the risk/return probability is manageable in my view.

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Holds - BHP, COK, LYC, MGO, OGC, PLA, SLR