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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Aquarius Platinum - Profits jump on rising PGM prices

March 2006

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • AQP
  • Price:
  • 612p
The shares have stormed up 129p in just two months since our main recommendation in January and not surprisingly, the six months ending 31 December were very strong. Revenues increased 62% to nearly US$160m and pretax profit rose more than four-fold from US$6m to US$25.9m, with the 23% rise in the South African PGM price to US$966 an ounce being a key factor. The other main reason was the 47% increase in gross on-mine production while the net increase was still an excellent 36% to 198,426 ounces, reflecting the implementation of its second pool and share agreement at Marikana, which halved its holding to 50%. High points included Kroondal’s 67% rise in net production to 116,269 ounces while its newest project, Everest South, deliv ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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