Hi Jojo. Excellent post. Now ZIM have 107.6 million shares in issue and the last price was A$10.05 giving a market cap of US1.14 billion. With their only asset, as far as I can see, in Zimbabwe in which they may lose at least 49% and possibly 100%, I wonder how long this market cap can be sustained. Impala own 87%.
I think a lot will depend where ownership of the Zimbabwe operations is vested as to which vehicle might be used to acquire projects outside Zimbabwe. i.e why acquire anything if Zimabwe takes 51%.
One route might be to distribute the last years profit of S 200 million as a dividend (if allowed to) and this would give Impala extra cash to acquire PLA if it wants to.
Data given above, if not stated fact in ZIM's last annual report, is pure speculation without any basis whatsover. None of the postulated scenario's may happen. ZIM might continue to make millions for its shareholders for years to come as it is obviouly a well run company. Please do your own research.
PLA Price at posting:
24.0¢ Sentiment: None Disclosure: Held
