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dc.contributor.advisorKotzé, Jan
dc.contributor.authorRaats, Jasper-Johan
dc.date.accessioned2013-03-07T09:57:12Z
dc.date.available2013-03-07T09:57:12Z
dc.date.issued2010
dc.identifier.urihttp://hdl.handle.net/10394/8299
dc.descriptionThesis (MBA)--North-West University, Potchefstroom Campus, 2011
dc.description.abstractThe recession of 2008/09 was the worst decline of global markets since the Great Depression in the 1930's. Some international markets lost 30 - 50% of its value in the period July to October 2008. The main reason for this dramatic drop in investor demand was the sub prime crisis in the USA where growth was fuelled by providing loans to house owners who could not afford the mortgage payments. Platinum, which is the biggest mining sector in South Africa both in terms of revenue and employment, was not spared this sudden decrease in demand. Platinum market price lost more than 50% of its value, free-falling from a level of over $2000/oz to below $1 000/oz in three months. A recession poses a massive challenge to the management teams of companies. Their main task of ensuring shareholder value growth comes under enormous pressure from macro-economic factors outside of their control. Strategic objectives based on high growth and demand scenarios have to be adapted to a low demand and negative growth environment. This study embarks on a journey to determine what strategies the different management teams of the five top South African platinum mining companies implemented and how successful they were in optimising shareholder value during the recession period. The impact of risk and return on investor demand were discussed on a theoretical level and tested on a practical level by evaluating the performances of individual companies and finding correlations between company performance and shareholder value optimisation. Companies who performed well by maintaining good profit margins, maintaining dividend payouts, managing risks well and continuing to build a good platform for future profit growth performed the best in optimising shareholder value during the recession period. Recommendations are made based on theoretical and practical best practices for how to optimise shareholder value during future recessionary times. Opportunities for companies in the platinum mining industry for the next 3 - 5 years are also evaluated and summarized.en_US
dc.language.isoenen_US
dc.publisherNorth-West University
dc.subjectPlatinumen_US
dc.subjectRecessionen_US
dc.subjectShareholder valueen_US
dc.titleShareholder value optimisation in the platinum industry during recessionary timesen
dc.typeThesisen_US
dc.description.thesistypeMastersen_US


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