By Kishori Krishnan Exclusive To Platinum Investing News

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Jim Rogers, the renowned investor, has been quoted as saying, “Buy value, wait for a catalyst, sell hysteria.”

This sage advice perfectly describes the present investment opportunities in platinum.

After the Halloween week-end, the first day of the new week did not have much of an auspicious opening for platinum, like some other precious metals.

On Monday, in the US markets as the dollar fell, platinum declined to $1,322/oz. December platinum rose $11.80 to $1,334.90 an ounce.

On Tuesday, platinum struggled higher to reach $1,340/oz. Base metals remained at roughly the same levels with copper holding steady at $2.27/pound and zinc fluctuating around $0.98/pound. Nickel inched lower, moving down to $8.19/pound.

The dollar fell on Monday, after stronger-than-expected reports on housing and manufacturing drove investors to re-invest in stocks and the commodities market.

Net long-term position for platinum however stayed at a record high, even though the price retreated a bit on Monday. Part of the optimism on platinum prices in the months to come will continue with its upward trend, feel technical analysts. The single reason: it is based on the steadily rising gold prices.

Don’t be fooled by the fact that Barrick Gold confirmed on October 29, that it has dropped plans to develop the Sedibelo platinum project in South Africa.

The world’s largest gold producer currently holds a ten per cent stake in the site, but was widely expected to secure a $106 million deal to increase its interest to 65 per cent. The story for the metal has only just begun.

The metal is used to a great extent in the automobile and jewellery sector. Platinum closed the July-September 2009 quarter in the US up by 5 per cent at $1,230 per PGM ounce.

Platinum has now traded above $1,200 per ounce since August 2, trading at a quarterly high of $1,339 per ounce on September 16.

Strong jewellery demand in China continues to mitigate reduced demand from the auto industry.

Strong optimism

As if to further underline this optimism, early morning trade in this metal on the FTSE 100 on November 3, opened on the positive.

News agency Bloomberg reported that while gold had jumped to within 0.4 per cent of its peak after the International Monetary Fund (IMF) sold the metal for the first time in nine years, platinum advanced.

Gold, silver and platinum prices have surged in tandem over the past month.

Zimbabwe calling

Touted to host the second largest platinum reserves in the world, Zimbabwe is set to attract up to US$16 billion in exploration and mining investment.

The country’s mining sector is set to see better days ahead with its slowly, stabilising political environment.

It may be recalled that the opposition Movement for Democratic Change and Robert Mugabe’s Zimbabwean African National Union-Patriotic Front formed a new coalition government in the middle of February 2009.

In September 2009, there was a renewed focus on mining on the part of the government.

Addressing the annual meeting of Zimbabwe’s chamber of mines, Prime Minister Morgan Tsvangirai said the country could attract large scale investment, provided it corrects policies that have deterred foreign investment.

The premier said that the government should use the next 12 months to come up with a policy environment more conducive to mining investment, so the country can receive higher inward investment over the coming decade.

Of the 40 known metals and minerals that it is home to, gold, platinum and chrome form the principal endowments. The country’s gold reserves are among the largest in Africa. Recently, there has been a discovery of a number of significant kimberlites.  So, could diamonds be the future?

Company news

News agency Reuters reported on Monday that the Australia-based precious metals producer Sylvania Resources Ltd (SLV.AX) and South-Africa firm Jubilee Platinum Plc (JLP.L) have decided to enter into a partnership for the processing of platinum group metals (PGM).

The two companies said the strategic alliance would provide Sylvania with access to Jubilee’s smelting technology and would allow Jubilee to benefit from Sylvania’s secondary PGM recovery skill.

The alliance would also help fast track operations and save research and development costs for the two firms, the companies said.

Following the announcement and immediately afterwards, Jubilee’s shares rose 2.4 per cent to 32.5 pence, while Sylvania fell 2.9 per cent to 50.5 pence by 0946 GMT on Monday on the London Stock Exchange.

Impala Platinum Holdings Ltd, the producer of more than a quarter of the world’s supply of the metal, was downgraded to “reduce” at Nomura International, as a strengthening rand hurt the company’s profits.

The Illovo, South Africa-based company’s shares fell 6.40 rand, or 3.7 per cent, to 164.60 rand in Johannesburg on Tuesday, giving the company a market value at 104.2 billion rand (US$ 13.1 billion).

Platmin Limited (TSX/AIM:PPN) has announced changes to its board of directors recently.

Following the announcement dated October 12, 2009, of the retirement of Ian Watson as the chief executive officer and executive director, Platmin has appointed  Tom Dale as CEO, with effect from December 1, 2009.

Dale has had a long and successful career in the South African mining industry, and has held various senior positions, including managing director of Gencor’s gold division and of Gold Fields Limited.

Subsequently, he was CEO of Mopani Copper Mines in Zambia and thereafter CEO of Sallies Limited.

The company further said Brian Gilbertson has been appointed the new non-executive chairman of Platmin with effect from December 1, 2009. Gilbertson has held various senior positions in global mining, including managing director of Rustenburg Platinum Holdings Limited (now Anglo Platinum Limited) and chairman of Impala Platinum Holdings Limited.

Platmin is a mineral exploration, development and operating company. The company has developed the Pilanesberg Project into the Pilanesberg Platinum Mine (PPM) and is exploring for PGEs on its other three key projects: Mphahlele, Grootboom and Loskop.

South Africa-focused miner Aquarius Platinum has smashed production and earnings records, posting a 365 per cent leap in comparable net quarterly profit to $A45.9 million for the September quarter, released on October 27.

The positive result, driven by an 8 per cent increase in total platinum group metals production of 140,227 PGM ounces, was enough for chief executive Stuart Murray to declare full fiscal year production was on target.

“Already, at the end of the first quarter, I believe that we are on track to deliver our annual target of 600,000oz, a third up on last year’s production,” he said.

Aquarius’ attributable production at Kroondal was a record 60,856oz, with the operation generating a gross cash margin of 65 per cent. Marikana produced 15,432oz for Aquarius, and Everest produced 41,717oz.

The Mimosa Platinum Mine in which Acquarius owns 50 per cent stock, increased its underground production by 3 per cent to 539,475 tonnes in the same quarter.

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