Our opinion on the current state of WEZ

Wesizwe (WEZ) is engaged in platinum group metals mining, primarily through the development of the Bakubung Platinum Mine (BPM), located near Rustenburg on the Western limb of the Bushveld complex. The company's focus includes accessing the Merensky and Upper Group 2 (UG2) resources. Additionally, Wesizwe owns a 17.1% stake in projects 1 and 3 of Maseve Investments.

In its financial results for the six months ending June 30, 2023, Wesizwe reported a loss per share of 59.63 cents, a significant increase compared to a loss of 4.09 cents in the previous period. The company attributed the total comprehensive loss of R981.5 million to higher total administration expenses, which included both administration expenses and capitalized costs.

In a trading statement for the fiscal year ending December 31, 2023, Wesizwe estimated a headline loss ranging between 0.95 cents and 1.77 cents per share, compared to a loss of 8.24 cents in the previous period.

Despite being viable for private investors with an average daily trading volume of about R176,000 worth of shares, Wesizwe is considered a marginal precious metals company. Its performance is subject to the volatility of platinum group metals (PGM) prices, making it inherently risky. The share price has declined from a high of 197 cents in October 2021 to levels around 47 cents following the recent results. Given its risk profile, investors may find better opportunities in other PGM market options.