Stock data
| Market cap. | ZAR1241.7m |
| Last close | ZAR36.00 |
| High / Low (52 weeks) | ZAR52.0 / ZAR35.6 |
| Stock market listing | JSE, TSX |
| Forecast net debt (ZARm) | 364 |
| Forecast gearing ratio (%) | 59 |
| Team | Resources - Mining |
| Sector | Mining |
Price performance
| % | 1m | 3m | 12m |
|---|---|---|---|
| Actual | (10) | (16.76) | (30.77) |
| Relative * | (10.36) | (16.75) | (34.13) |
* % Relative to local index
Other companies covered in sector
| Y/E Dec | Revenue (ZARm) | EBITDA (ZARm) | PBT (ZARm) | EPS (c) | P/E (x) | P/CF (x) |
|---|---|---|---|---|---|---|
| 2011A | 0.0 | (19.7) | (14.9) | (50.1) | N/A | N/A |
| 2011A | 0.0 | (19.7) | (14.9) | (50.1) | N/A | N/A |
| 2012E | 0.0 | (26.2) | 63.8 | 146.5 | 24.6 | 23.3 |
| 2013E | N/A | N/A | N/A | N/A | N/A | N/A |
Last updated on 18/04/2012
Latest research
Not what it was…
Update | Mining | 09/03/2012
Cheap acquisition
Update | Mining | 03/02/2012
DBM on fast track
Outlook | Mining | 19/09/2011
Investment summary
In January, Wits Gold and Pan African Resources jointly announced that they had formed a consortium to buy Evander Gold Mines from Harmony for a headline price of ZAR1.7bn, equivalent to US$6.37 per resource ounce at the then ZAR/US$ exchange rate. Wits will equity account for its acquisition after the transaction closes after Department of Mineral Resources' approval (estimated end-October). We estimate that Evander has the ability to contribute over ZAR500m and ZAR7.17 (attributable) annually to Wits Gold’s free cash-flows and cash EPS, respectively.
Last updated on 23/04/2012
Industry outlook
At a long-term gold price of US$1,350/oz, we calculate the NPV of the next 15-year development plan for Evander to be ZAR967m cf the net present value of the purchase price of ZAR1,036m. As such, Pan African and Wits Gold can be considered as having bought Evander for the value of the next 15 years of low tonnage, high grade mining. They will have brought the remaining 33.2Moz of reserves and resources effectively for free.
Last updated on 23/04/2012
Key management
| Adam Fleming, Chairman |
| Philip Kotze, CEO |
| Derek Urquhart, CFO |
Company address
| 70 Fox Street Johannesburg South Africa 12th Floor View website |
