Growth Company Investor Article re Southern African's new CEO

Southern African Resources 4th March 2004


Edmonds hires ex-Zimplats boss

Roy Pitchford, redoubtable former boss of Zimbabwe Platinum, is moving to become chief executive of Phil Edmonds' Southern African Resources in order to develop the company's existing platinum group metals (PGMs) projects and to find worthwhile new ones. Robert Tyerman reports.

AIM high flier Southern African has been concentrating on Leeuwkop in South Africa's Bushveld, where the Snowden consulting group has suggested potential resources of 56 million oz of PGMs. In the autumn, the company raised £1 million at 2p through broker Canaccord and £400,000 at 4p from the family of Thomas Kaplan of American-quoted Apex Silver Mines.

Pitchford, who successfully steered Zimplats through the troubled environment of Zimbabwe to a 300 million-oz company, has been without a challenging role since the much larger Impala Platinum bought the company last year. He says his move to Southern African 'is an exciting opportunity for me to develop new platinum exploration and mining operations that have great upside potential.

'I feel that Southern African is a fledgling company that has demonstrated its ability to locate good projects as well as secure access to capital.' Edmonds, Southern African's chairman, says Pitchford has 'not only the technical expertise to lead the development of our existing projects but also the corporate know-how, ability and contacts to expand the company and its portfolio.'

To welcome its new chief executive, Southern African has supplied Pitchford with ten million 'in-the-money' options at 19p, against today's share price of 31.75p. That compares with 5.25p when Growth Company Investor highlighted them in September.

Partial profit-taking would be prudent. But, in today's market, the shares should have significant more mileage yet.