Pallinghurst Resources is a specialist natural resources investment holding company with a primary focus on underperforming assets and businesses that are poorly managed or distressed. The group looks to develop strategic platforms in pursuit of vertical integration, consolidation, turn-around opportunities and expansion projects.

The investment portfolio currently includes platinum group metals (PGMs), steel making materials and coloured gems assets in South Africa, Zambia and Mozambique. The PGMs assets include three deposits north of Pilanesberg in the Western Limb of the Bushveld Complex. Steel-making investments comprise the Tshipi Borwa open-pit manganese mine in the Northern Cape. The group decided to buy into the coloured gemstones sector with the purchase of the Kagem emerald mine in northern Zambia and a 75% stake in a large ruby deposit in Montepuez, northern Mozambique. The group’s investment portfolio is valued at approximately US$290 million.

Pallinghurst shares have a primary listing on the Johannesburg Stock Exchange (JSE) and a secondary listing on the Bermuda Stock Exchange. The live online stocks chart shows that Pallinghurst share price has fared better than the majority of listed mining companies.

Pallinghurst is considered by its directors to be a private equity and venture capital organisation. Investment stakes are usually significant but not controlling, the executive leadership participates in management of each investment, investments are generally innovative in nature and investments typically have defined exit strategies.

Performance has been challenged by difficult conditions within the mining industry. A $32 million loss was recorded in the first six months of 2016, following on from a $149 million loss for the 2015 year.

The PGMs segment achieved a record year of production, but depressed metal prices resulted in losses. Tshipi Borwa has successfully established itself as one of the largest manganese mines in the world, producing in excess of two million tonnes for the year. Rigorous cost management has allowed for a position in the lowest cost quartile, and the mine has targeted increased annual capacity of three million tonnes. The Montepuez operation in Mozambique is quickly establishing itself as one of the world’s most important suppliers of quality rubies, markedly increasing production during its scale-up phases. The group’s unique auction system is being implemented successfully for sale of rubies, and management believes that Montepuez is a truly world-class asset. Good progress was also made in Zambia for emerald interests, and prospects have opened up for emerald mining in Colombia and sapphire mining in Sri Lanka.

Whilst Pallinghurst has undoubtedly been impacted by trade conditions, it has fared better than most JSE-listed mining companies. The group’s assets are enjoying healthy production and expansion, with multiple prospects available for expansion. The strong nature of Pallinghurst’s assets should stand it in good stead for continuing improvements in the mining sector and start generating returns for investors who buy Pallinghurst shares. Pallinghurst share price can be seen as undervalued, with the shares likely to improve markedly in the medium to long-term. As far as mining stocks go, Pallinghurst looks to be a promising buy.

Mining

Natural Resources

Private Equity

We have made it simple to buy JSE listed firm shares online. The easiest way to buy Pallinghurst 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 Pallinghurst Group and assist you with the setup and management of your stock portfolio account.

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 Pallinghurst Group.
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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