ELR: New Mines By The End Of The Month
Eastern Platinum Expects To Announce Plans For New Mines By The End Of The Month
By Charles Wyatt
https://www.minesite.com/nc/minews/singlenews/article/eastern-platinum-should-be-announcing-plans-for-new-mines-by-the-end-of-the-month.html
According to the British refiner Johnson Matthey platinum and palladium prices could rise by anything from 20 to 30 per cent in the next six months, as stronger demand from the auto industry kicks in. Catalytic converters are the key to demand, and Johnson Matthey went as far as to specify prices in its recent annual report. It expects the price of platinum to rise to US$2,000 per ounce compared with the present US$1,680.00, and it is even more optimistic about palladium, which it reckons will rise from US$522 to US$700 per ounce. This will be good news for Ian Rozier of Eastern Platinum, a company that’s just announced some rather disappointing results for the March quarter. To be fair it was a fallback in production at the company’s Crocodile River mine rather than low prices for platinum and palladium that hit profits, but he will be encouraged by Johnson Matthey’s forecasts, given ahead of Platinum Week which is now taking place in London.
The refiner went on to say that’s its bullish stance is based on better industrial fundamentals, as well as on strong investment demand. The latter has been bolstered by the launch of new exchange traded funds backed by physical metals. Last year the new ETFs caused physical investment consumption for platinum to rise by 18.9 per cent and for palladium by no less than 48.8 per cent. These metals, however, are priced in US dollars, whereas Eastern Platinum’s costs are in South African Rands....