Markets

Platinum Group Metals

The platinum price has seen modest strengthening during recent months, ending 2009 57% higher than it began at US$1 466/oz. The weak industrial and automotive demand was counteracted by the strong Chinese jewellery demand which provided good support for the price. Palladium and rhodium prices rose similarly during 2009, both doubling to US$402/oz and US$2 500/oz respectively.

This shows early support for the Platfields view that the medium to long-term prospects are good. South African producers are collectively a primary source of PGMs and are challenged on various fronts – not least in bringing to account new projects – to narrow the gap between world supply and demand, and these challenges are likely to continue.

PGM performance
Platinum supply and demand
Supply2008 2009
South Africa4,5154,530
Russia805785
Others620605
Total5,940 5,920
Gross demand
Autocatalyst3,655 2,320
Jewellery2,0603,010
Investment555660
Others1,720 1,140
Total gross demand 7,990 7,130
   
Recycling(1,830)(1,405)
Total net demand6,160 5,725
Movements in stock(220)285

Source: Johnson Matthey

 
Palladium supply and demand
Supply2008 2009
South Africa2,4302,370
Russia3,6603,635
Others1,2201,095
Total7,3107,100
Gross demand
Autocatalyst4,465 4,050
Jewellery985815
Investment420625
Others2,420 2,280
Total gross demand 8,2907,770
   
Recycling(1,615)(1,430)
Total net demand6,675 6,340
Movements in stock635760

Source: Johnson Matthey

Gold

Platfields remains bullish about the prospects for gold. Gold continues to fill its traditional role as an investment of choice in troubled times. This scenario, juxtaposed with slower de-hording of above-ground supplies and declining flows of newly mined gold – a consequence both of the challenges facing explorers to find economically viable reserves and producers to mine profitable ounces in the face of rising costs – points to the likelihood of robust gold pricing in the medium to long term.

Market Prices

  • Platinum:
    $/oz 1618.0000
  • Gold:
    $/oz 1725.02
  • R/$:7.52
  • R/€:9.90
  • R/£:11.90
  • ¥/R:10.18

Presentation

Investor presentation

Presentation

November 2010

Investor presentation
(PDF - 1.7MB)

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