Our opinion on the current state of WEZ

Wesizwe (WEZ) is a miner of platinum group metals through its development of the Bakubung Platinum Mine (BPM). The company is developing a mine to access the Merensky and Upper Group 2 (UG2) resources. The mine is near Rustenburg on the Western limb of the Bushveld complex. The company also owns 17,1% of projects 1 and 3 of Maseve Investments. In its results for the year to 31st December 2022 the company reported a headline loss per share of 8,24c compared with a loss of 1,48c in the previous period. In a trading statement for the six months to 30th June 2023 the company estimated that it would make a headline loss of between 59,22c and 60,04c compared with a loss of 4,09c in the previous period. The share trades about R200 000 worth on average every day and so is viable for private investors. It is, however, a marginal precious metals company which is subject to the vagaries of PGM prices - which makes it risky. The share has fallen from a high of 197c in October 2021 to levels around 76c on the recent results. We think that there are better options in the PGM market.