• 5 minutes Rage Without Proof: Maduro Accuses U.S. Official Of Plotting Venezuela Invasion
  • 11 minutes IEA Sees Global Oil Supply Tightening More Quickly In 2019
  • 14 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 8 hours U.S. Senate Advances Resolution To End Military Support For Saudis In Yemen
  • 2 hours Let's Just Block the Sun, Shall We?
  • 2 hours Alberta govt to construct another WCS processing refinery
  • 9 hours Waste-to-Energy Chugging Along
  • 13 hours What will the future hold for nations dependent on high oil prices.
  • 13 hours Venezuela continues to sink in misery
  • 16 hours Contradictory: Euro Zone Takes Step To Deeper Integration, Key Issues Unresolved
  • 22 hours UK Power and loss of power stations
  • 8 hours Regular Gas dropped to $2.21 per gallon today
  • 22 hours EPA To Roll Back Carbon Rule On New Coal Plants
  • 1 day No, The U.S. Is Not A Net Exporter Of Crude Oil
  • 1 day Zohr Giant Gas Field Increases Production Six-Fold
  • 4 hours Sane Take on the Russia-Ukraine Case
  • 3 hours Sleeping Hydrocarbon Giant
Alt Text

Peak Lithium Won’t Happen Anytime Soon

Peak lithium is not happening…

Alt Text

Miners Are Looking To Ramp Up Lithium Production

Lithium prices have withstood all…

Alt Text

As Diesel Dies, One Commodity Is Crashing

Platinum futures plunged to 14…

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