RE:RE:RE:RE:platreef economicsSo given the fact that no comments here will have the remotest impact on the market, why not spare the ad hominem and take the opportunity to have a rational and constructive debate about the facts and the numbers?
Management is not naive, but highly competent. However, this is a risky sector. There is a return asymmetry. You own the downside but not the upside. All officers of the company have been exercising options and selling all stock immediately, even at these prices. One director has accumulated, and the others have stayed put.
You are correct to point to the only apparent catalyst for the company, which is much higher metal prices. Some of the projects are high grade, and will be profitable anyway, but not enough to bring generalist funds in or to entice majors to take so much risk on green field projects in difficult jurisdictions. The direction of metal prices depends on global growth. Valuations will be lower with higher interest rates, unless there is a boom in commodities, to attract sentiment. In cyclical industries a super cycle is seldom followed by one of the same magnitude. And the China super cycle was one of the great booms in commodities in the past century.