VANCOUVER, BRITISH COLUMBIA–(Marketwire – Dec. 12, 2012) - Platinum Group Metals Ltd., (TSX:PTM)(NYSE Amex:PLG)(NYSE MKT:PLG) (the “Company” or “Platinum Group Metals”) has priced its previously announced public offering of common shares (the “Offering”). Pursuant to the Offering, the Company will issue 225,000,000 common shares at a price of C$0.80 per common share, for aggregate gross proceeds of C$180,000,000. The Company will file an amended and restated preliminary short form prospectus with the securities commissions in all provinces of Canada, and will file an amendment to the registration statement with the United States Securities and Exchange Commission. Closing of the Offering is expected to occur on or about January 4, 2013.
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Dave have you updated your base case value for PLG? Do you have any PGM plays in your watchlist?
I usually prefer the PGM dog SWC because it is the only company with significant platinum reserves and production outside Africa but I am also beginning to be tempted by Eastern Platinum now that this ugly mid-tier PGM producer trades at about its net cash level… Did you know ELR is now a cash king? Any comments about this situation?
@Giuseppe
No base case value, sorry. As far as a watchlist, probably nothing of immediate interest but we might have a few names to offer in a non-public post if you’re really anxious for exposure.
Was not aware Eastern Platinum was so beaten up, but not really that surprising. Decreasing production, guiding 60k oz for 2013 so not really sure it qualifies as mid-tier any longer. Loss from operations of $6 million in Q3 2012 plus $24 million spent on plant, property and equipment ($80 million for the 9 months ended Sept 30th so not unusual). At this pace their cash is more like $100 million now vs $150 million market cap. Can’t get too excited, but clearly leveraged to success and without a debt load putting them in any immediate danger of bankruptcy … though again at the pace of 2012 operating losses + capital spending they’re running out of time.