• 6 minutes Saudis Threaten Retaliation If Sanctions are Imposed
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes Saudis Pull Hyperloop Funding As Branson Temporarily Cuts Ties With The Kingdom
  • 2 hours WTI @ $75.75, headed for $64 - 67
  • 1 hour U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 16 mins Saudi-Kuwaiti Talks on Shared Oil Stall Over Chevron
  • 8 mins Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 8 hours U.S. - Saudi Arabia: President Trump Says Saudi Arabia's King Wouldn't Survive "Two Weeks" Without U.S. Backing
  • 5 hours OPEC's No. 2 Producer Wants to Know How Buyers Use Its Oil
  • 26 mins UN Report Suggests USD $240 Per Gallon Gasoline Tax to Fight Global Warming
  • 6 hours Iranian Sanctions - What Are The Facts?
  • 4 hours China Thirsty for Canadian Crude
  • 20 hours How High Can Oil Prices Rise? (Part 2 of my previous thread)
  • 20 hours Shell, partners approve huge $31 billion LNG Canada project. How long till Canadian Federal government Environmentalates it into the ground?
  • 4 hours Who's Ready For The Next Contest?
  • 7 hours EU to Splash Billions on Battery Factories
Alt Text

As Diesel Dies, One Commodity Is Crashing

Platinum futures plunged to 14…

Alt Text

Don’t Expect Palladium Prices To Plunge

Palladium has recently soared to…

Alt Text

Will Oil And Gold Prices Rise This Year?

Both gold prices and oil…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

Platinum: Good Prices Are Not Enough

Platinum gurus Johnson Matthey published their 2010 Interim Review of the platinum market yesterday. A big event in that part of the mining space.

The report was fairly rosy for platinum producers. JM sees the platinum market largely in balance next year supply/demand-wise, after running a slight 290,000 ounce surplus this year.

The six-month price outlook is for platinum to trade between $1,550/oz and $1,900/oz. Very decent prices.

That's the good news.

The bad news is that even at decent prices, platinum producers in the world's largest production region, South Africa, are having a hard time making money.

In annual financial filings released this week, platinum major Lonmin announced negative free cash flow. Despite its sale price of platinum group elements increasing 45% over the past year.

And analysts at RBC Capital Markets note that year-to-date cash costs for the world's top platinum miner, Anglo Platinum, are running around $1,680/oz. Leaving "little margin to fund capex".

As I've mentioned before, South African production costs are ballooning due to electricity costs, labor costs and new royalties. This is a bitter pill, given 80% of global platinum output comes from South Africa.

With high costs looking to be the norm across the platinum industry, there's a really opportunity to "poach the cost curve" (much the same as we've discussed for the uranium industry). A platinum project outside of South Africa that shows favorable costs will be a sought-after commodity.

Such projects aren't easy to find. But they do exist. And it's worth starting to look them up.

By. Dave Forest of Notela Resources




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News