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.
