Northam Platinum Holdings Ltd., operator of the world’s deepest platinum mine, rose after Bank of America Corp.-Merrill Lynch & Co. advised investors to buy the stock on the prospects of adding capacity at low cost.
Northam climbed as much as 5.18 rand, or 17 percent, to 34.88 rand, the biggest jump in intraday trading since Oct. 9, and traded up 4.5 percent at 31.03 rand as of 12:22 p.m. in Johannesburg. The brokerage resumed coverage of the stock with a “buy” rating and price estimate of 46 rand.
The 103 million-ounce Booysendal deposit provides the company with potential to add extraction capacity at low cost, Johannesburg-based analysts Lazar Naiker and Bruce Always wrote in a note to clients today. “The Booysendal project provides Northam with a convincing growth opportunity,” the note said.
Northam Platinum said in February that second-half profit would fall as the global recession curbs demand for the metal. Platinum prices are 48 percent lower than the high reached on March 5 last year.
(Source)
Comments are closed.