Central African Mining & Exploration (Camec) has released an independent estimate for two platinum prospects in Zimbabwe that it bought 15 months ago, stating that there is enough metal there to support a mine for 20 years.
Camecs 120 million purchase of the prospects from a secretive company called Lefever sparked accusations from the then opposition party led by Morgan Tsvangirai that it was funding Robert Mugabes regime. Now that Mr Tsvangirai is Prime Minister in a power-sharing deal with the dictator, he may change his view. He scrapped a punitive tax on foreign companies last week.
Brock Salier, an analyst with Ambrian, who visited the site last month said: Tenure is always a sensitive issue in Zimbabwe. However, he added that he was confident that Mr Tsvangirai was unlikely to jeopardise foreign investment by nationalising mining assets. Mr Salier gives buy advice and has an 18p target price.
Camec aims to start building the mine this autumn, with production by 2012. Its shares rose 0.79p to 10.75p, but are far off the 60p they reached last year before the collapse of metal prices.
The Times (UK)
Post published in: Economy