Platinum declined last week; and continued the trend this Monday as uncertainty over the future of US automaker GM put the metal’s near future demand outlook into question. In the current state of the economy, the auto industry is unable to lend support to platinum; but the metal may get some relief from rising safe haven appeal.
Premium Exploration Inc. reported today that the PGM anomalies previously reported at the Chrome Mountain PGM project were formed by the same type of processes that formed the Platreef PGM deposits in South Africa.
Platinum has bounced more than 30 percent since plunging to a five-year low of approximately $732 an ounce in October. This ascent is occurring despite the absence of physical buying from the industrial sector. This rebound, without appropriate technical recovery is puzzling analysts.
South African owned Zimbabwe Platinum Mines has shut down its open cast mining operations at Ngezi Mine along the rich great dyke, citing a drop in platinum prices on the international market and increasing operating costs in the troubled southern African country. For full story, click here
Aquarius Platinum (Aquarius) will shut down its Everest Mine for at least six months because of the unstable ground conditions that forced a suspension of operations. For full story, click here
Aquarius Platinum, the fourth-largest platinum miner, expected studies on the Everest Mine subsidence event to be completed within the next three months, and a decision would be taken on reopening the mine, CEO Stuart Murray said yesterday. For full story, click here
Sylvania Resources said that it was applying for a licence to mine the Vygenhoek platinum group metals deposit at Everest North on the eastern limb of the Bushveld complex. For full story, click here
Platinum showed extreme volatility in 2008, rising to an all-time high of $2,290 an ounce in March on the back of a power shortage in major producer South Africa, before falling to a five-year low of $732.50 in October.
Stillwater Mining company closed one of its two Montana platinum/palladium mines in November. Stillwater attributed the closure to the severe drop in platinum and palladium prices. For full story, click here
Platinum rebounded early in ’09, and came back into the four digits, the metal’s highest value in over 12 weeks. In 2008 the metal went on a wild ride, hitting a peak of $2,290 per ounce, and then came crashing down to a three digit value. Despite the metal starting the year on a good note, RBC capital markets has cut its platinum price forecast for the next two years.
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