Johannesburg, South Africa — 21 November 2012 – Shares of Aquarius Platinum have soared over 10% to a two-week high, extending a rally sparked by a Nomura upgrade. Rival Lonmin also extended gains, following shareholder approval on Monday of an US$817 million rights issue to repair a battered balance sheet.
Fin24 reports that at noon yesterday Aquarius shares traded over 10% higher at R6.24, their highest level since 6 November, according to Thomson Reuters data. Lonmin shares were 6% higher at R39.88.
In a research note to clients, Nomura raised its rating for Aquarius to “buy” from “neutral” and for Lonmin to “buy” from “reduce.”
Nomura said the wave of violent strikes that had swept South Africa’s platinum mines this year had reduced supply to such an extent that the price of the white metal and shares of companies that mine and produce it should rally.
Source: Fin24. For more information, click here.