Impala is one of the world's largest platinum group metal producers, however they are still struggling to awake investors appetite. IF the Rand continues to weaken and the platinum price can lift its head above $1000, this company might just surprise everyone. Their annual financial results for 2018 reported a gross profit improvement by R2.1 billion to R1.6 billion. Earnings were impacted by impairments of R13.6 billion, mainly due to the restructuring of Impala Rustenburg. Tonnes milled rose 5.6% and platinum in concentrate ounces were 1% higher following strong operational performances across the Group.
- The cross of the 26 & 9 day moving averages to higher levels gave us the first signal of hope for higher levels on the share price.
- The share is caught within a descending channel which was confirmed above line A (R19-82).
- The target price of the formation is R25 should the formation play out and the first sign of weakness will be visible below R16-41 again.
- The MACD has also broken upwards which is seen as positive.
- For traders – Buy or consider a long above line A but use R16-41 as stop loss to protect capital. The possible targets towards the top are: R21-03, R21-79, R22-40, R23-02, R23-89, R24-75 and R25.
- For medium to long term investors – The share has stopped making lower lows for the past 6 weeks already which is seen as positive but the first sign of optimism will be visible when the share changes the 40 week moving average (R24-03) into a support.
Frans & Christelle