Though platinum prices have near doubled to 1350/oz this week from a low of 732/oz last October, for the miners in South Africa, it is still an uphill task. The SA government's talks to takeover ownership of mines could potentially scare off investors. How will the platinum producers operate in a constrained environment?
Miner Platinum Australia Ltd., its new mineral estimate at the Vela deposit at the Kalahari Platinum project surged 300 percent, sending its shares up 22 percent. For full story, click here
Shares in Lonmin, the world’s third-leading platinum producer, had surged more than 4%, or about R7, to R174 on the JSE by midday yesterday after it issued a production report indicating it was on target to produce 700000oz of platinum in the year to September. 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.
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.
Impala Platinum Holdings Co. jumped 10 percent to $10.53. For full story, click here
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