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 six months to 30th June 2023 the company reported a loss per share of 59,63c compared with a loss of 4,09c in the previous period. The company said, "The total comprehensive loss for the six months under review is R981.5 million (compared to comprehensive loss of R69.2 million for the same period in 2022) as set out in the condensed consolidated statement of profit or loss and other comprehensive income. Total administration expenses are made up of administration expenses of R797.0 million (June 2022: R595.2 million) less capitalised cost of R792.9 million (June 2022: R567.5 million)". The share trades about R176 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 66c on the recent results. We think that there are better options in the PGM market.