Atlatsa Resources Corporation. JSE: ATL

Atlatsa shares

Background of Atlatsa

  • Incorporated in the Province of British Columbia, Canada, Atlatsa Resources Corporation is a black-empowered mining company with a primary listing on the Toronto Stock Exchange and a secondary listing on the Johannesburg Stock Exchange (JSE).

  • The company is principally involved in the exploration and mining of Platinum Group Metals (PGM) through mineral property interested in the Bushveld Complex of South Africa.

  • Atlatsa main operations are run through a wholly-owned subsidiary called Plateau Resources, which has control over the group’s mineral property interests and conducts Atlatsa’s business in South Africa. The group’s key asset is a 51% stake in the Bokoni Platinum Mine, which is a joint venture with Anglo American Platinum (Amplats). The mine exploits a large, high-quality, long-life orebody with a resource base of 154 million ounces of PGM.

  • Atlatsa also owns a 51% in the Kwanda Project, 12 properties that have been earmarked for exploration in the Bushveld Complex.

  • The group derives it’s revenues from PGM production by selling metal in concentrate, to Amplats in terms of a dedicated sale agreement. This concentrate contains various payable metals, most prominently, platinum, rhodium, palladium and gold, along with base metals such as nickel and copper. On delivery, metal assays are performed to assess the metal content. Such metal in concentrate is then purchased by Amplats based on a formula relating to spot metal pricing, refining charges and penalties, if applicable.

Atlatsa Share Growth Driver

  • As with many mining companies in its sector, Atlatsa has experienced heavy revenue losses due to a prolonged period of depressed PGM commodity prices, which has coincided with falling Atlatsa share prices. In 2015, the group introduced an operational and financial restructuring plan at the Bokoni Mine in order to weather the storm and streamline performance with reduced costs and increased production volumes of higher grade ore.

  • Operational costs have since been reduced by an average of 15% per month, largely due to a substantial job cuts. The restructuring will result in the mine operating from two shaft complexes instead of the current four, movement from older, high cost shaft operations to lower cost, new generation operations and reducing overall capital expenditure.

  • Revenue in 2015 decreased by 13.4% to US$ 205.7 million in 2015. Weakening of the exchange rate could not offset the negative impact caused by a continued decline in PGM prices.

Atlatsa Group Investor Tip

  • Bokoni remains an operation in development, with the Brakfontein Merensky and Middelpunt shafts remaining in their ramp-up phase. These are both anticipated to achieve their targeted production state by the end of 2016 and 2019 respectively.

  • The challenging economic environment for South African PGM producers is forcing mine management to continue focusing on initiatives to improve operational efficiency and discipline capital allocation and costs.

  • Atlatsa share prices have reached new lows recently, particularly with news that Amplats is trying to exit the Bokoni joint venture. Amplats has said it will provide financial support of R 422 million is Bokoni does not meet planned cash forecast, but the massive challenges posed by the mining sector today make Atlatsa shares something that most investors will not be willing to buy.

Atlatsa Major Shareholders

Pelawan Trust, Rustenburg Platinum Mines Ltd and ESOP & Community Trust.

  • Sector

    Materials

  • Industry

    Metals & Mining
  • Sub industry

    Precious Metal Mining

How to buy Atlatsa Group Shares

  • Atlatsa : How to buy Atlatsa Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy Atlatsa Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Atlatsa Holdings and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase Atlatsa Group shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in Atlatsa.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
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