3 members / 179 guests (24 hours)

An Interesting IDB update! And how IDB got even faster.  IDB is fast, reliable, and FREE to use. Just join and start posting!

Platinum CEOs See Supply ‘Flat at Best’

Platinum CEOs See Supply ‘Flat at Best’

Mining executives, investors and government ministers are meeting in drought-hit Cape Town for the African Mining Indaba, the continent’s largest gathering of one of its most vital industries.


Platinum supply will be constrained by a lack of capital investment as a result of muted prices for the metal and pressure on profits from a strong rand, according to the heads of some of the world’s largest producers, who appeared on a panel together. There’s no incentive for expansions or new output and any growth projects will only serve to top up declining production levels, said Anglo American Platinum Ltd. CEO Chris Griffith. “We think that supply is at best flat,” Griffith said. That also applies to Anglo Platinum itself -- production increases will be limited in this environment, he said.

The group, which also included the CEO of Impala Platinum Holdings Ltd. and Sibanye’s Neal Froneman, discussed the implications for platinum demand from the expected growth in electric vehicles -- which don’t need the metal to reduce pollution -- and the dark clouds hanging over diesel-powered cars. Both concerns are overblown, Froneman argued. Industrial demand is strong and often overlooked, said Griffith. He also said that efforts to cut loss-making production and reduce costs mean that the majority of the industry is now profitable at about $900 to $1,000 per ounce platinum.

Continued: https://www.bloomberg.com/news/articles/2018-02-06/sibanye-still-bullish-gold-after-pgm-spree-africa-mining-update?utm_source=yahoo&utm_medium=bd&utm_campaign=headline&cmpId=yhoo.headline&yptr=yahoo