Search Results for "Zimbabwe"

Zimbabwe’s New Mine Laws May Prevent Palladium Surplus, Standard Bank Says

Bloomberg reported if Zimbabwe withdraws Zimplats (ASX:ZIM,PINK:ZMPLF) mining license it will prevent a global surplus of platinum and palladium.

The market news is quoted as saying,

Zimbabwe will probably produce 350,000 ounces of platinum next year, or 6 percent of global mine supply, and 280,000 ounces of palladium, or 5 percent of the total, according to Standard Bank. Zimplats may produce about 180,000 ounces of the country’s platinum and 150,000 ounces of its palladium, the bank said.

For the complete market news, click here.

PGM investors should not ignore Zimbabwe’s resource nationalism-Melek

Mineweb reports that Bart Melek, head of commodity strategy for TD Securities, expects platinum to move into deficit by 2013, with palladium deficits to deepen over the next three years.

The editorial is quoted as saying,

“The PGMs sector is a prime example where higher government taxes and ownership policies can materially impact future platinum and palladium prices,” Melek noted in recent research report.

For the complete editorial, click here.

5 Top Countries for Palladium and Platinum Production

Platinum-group metals (PGMs) include platinum, palladium, rhodium and other metals, all of which are prized for their durability, resistance to corrosion and excellent catalytic properties. These characteristics make PGMs useful in everything from jewelry to electronics.

Today, the automotive industry is the world’s largest consumer of these metals, which are used in catalytic converters for vehicle exhaust systems. Automotive production is expected to climb in the coming years, particularly in developing markets, and that is expected to ensure healthy demand for PGMs into the future.

But where do platinum and palladium come from? The list of the world’s top palladium- and platinum-producing countries is a short one — most PGMs come from South Africa and Russia, though there are a few other countries that produce the metals. Below is a list of the five top producers in 2016, as per data from the US Geological Survey.

1. South Africa

Platinum production: 120,000 kilograms

Palladium production: 73,000 kilograms

South Africa is the world’s top producer of platinum and a major producer of palladium. It holds the largest-known reserves of PGMs globally at 63 million kilograms, and currently extracts 75 percent of planet’s platinum.

South Africa is expected to reduce its platinum output by 1 percent in 2017 as a result of low prices and underspending on new projects and underground development. Production drops by the world’s leading platinum producer have been a common trend — the World Platinum Investment Council notes that South African platinum production has dropped by 13 percent since 2011.

2. Russia

Platinum production: 23,000 kilograms

Palladium production: 82,000 kilograms

Despite being the world’s second-biggest platinum producer, Russia’s annual production trails South Africa’s by a large margin. That said, Russia produced the largest amount of palladium in 2016, as South Africa reduced its output from 83,000 kilograms in 2015 to 73,000 kilograms in 2016.

In the first half of 2016, a fund set up by Russia’s Norilsk Nickel (MCX:GMKN) bought about 90,000 ounces of palladium. Norilsk Nickel is the world’s largest palladium producer, and it created the fund to develop relations with holders of existing metal stockpiles. Most recently, the company announced that in 2017 it plans to produce 2.6 to 2.7 million ounces of palladium and 581,000 to 645,000 ounces of platinum from Russian feedstock.

3. Zimbabwe

Platinum production: 13,000 kilograms

Palladium production: 10,000 kilograms

In 2013, Obert Mpofu, Zimbabwe’s mines minister, introduced new royalty requirements on unrefined PGMs being sent outside the country. These royalties were designed to encourage in-country processing of PGMs. Zimbabwe continues to pursue the goal of increasing PGMs refining, but remains a difficult operating environment for miners looking to benefit from the country’s PGMs reserves.

Zimplats (ASX:ZIM) is the biggest platinum producer in the country. It is 87-percent owned by South Africa’s Impala Platinum Holdings (JSE:IMP), and owns a total of 48,535 hectares in mining claims. Most recently, the company received notice that the government wants to seize some of that land and distribute it to new companies. The company’s profit for the quarter ended December 31, 2016 came to $21 million, a 28-percent increase, thanks to higher platinum matte sales.

4. Canada

Platinum production: 9,000 kilograms

Palladium production: 23,000 kilograms

Canada’s strong palladium production makes it a global player in the PGMs market. The country only holds 310,000 kilograms of known PGMs reserves — less than half the total reserves of other countries on this list — but companies continue to explore for PGMs in Canada in hopes of discovering more deposits. In 2015, Canada upped its palladium production from 21,000 to 23,000 kilograms.

North American Palladium (TSX:PDL) is one of only two primary palladium producers in the world. Its flagship mine is Lac des Iles, located in Ontario; it has been in production since 1993. In the second quarter of 2017, the company produced 50,222 ounces of payable palladium, considerably higher than the 38,203 ounces produced in the same quarter last year.

5. United States

Platinum production: 3,900 kilograms

Palladium production: 13,200 kilograms

Stillwater Mining Company was the only producer of PGMs in the US until it was acquired by South African mining company Sibanye Gold (NYSE:SBGL) in May 2017. The $2.2-billion deal allowed Sibanye to expand its operations to the US and reduce its dependence on aging mines in South Africa.

Sibanye now owns Stillwater’s East Boulder and Stillwater mines. Together, these mines were responsible for almost $390 million worth of metals production in 2016, as per the US Geological Survey. The company also maintains a smelter, refinery and laboratory in Montana and recovers PGMs from spent catalyst material.

This is an updated version of an article originally published by the Investing News Network in 2016.

Don’t forget to follow us @INN_Resource for real-time news updates!

Securities Disclosure: I, Sivansh Padhy, hold no direct investment interest in any company mentioned in this article.

Thomson Reuters GFMS: Platinum & Palladium Survey 2015

Thomson Reuters GFMS: Platinum & Palladium Survey 2015

Thomson Reuters GFMS’ Platinum & Palladium Survey 2015 came out Thursday. In it, the firm takes a look at 2014 supply and demand trends and provides its 2015 price outlook for the metals. 

GFMS starts by explaining how in the second quarter of 2014, eight years of oversupply transformed into deep deficits for both platinum and palladium. The change was driven partially by mining strikes in South Africa, which further restricted output in an already supply-constrained market. The firm calls the strikes — which were the longest wage strikes in South Africa’s history — “by far the most damaging supply-side event for year.”

Image courtesy of Thomson Reuters GFMS.

In 2015, GFMS sees global supply of both metals rising as South Africa’s output returns to a “level of neutral buoyancy.” That, coupled with a moderate rise in recycling, is expected to increase total platinum and palladium supply by 13 and 5 percent year-on-year, respectively. The firm also expects demand to grow for both metals.

Here’s a look at some highlights from the survey, including what happened with platinum and palladium supply and demand in 2014 and what GFMS expects to see in the future.

Platinum in 2014

Platinum production dropped by 21 percent in 2014, hitting a 15-year low of 4.7 million ounces. That led to the supply-side shortfall mentioned above and pushed the market into a 1.02-million-ounce deficit. The estimated loss in platinum production during the 22-week strike period was 1.36 million ounces.

Supply from jewelry scrap rose by 5 percent in 2014, reaching 520,000 ounces. Most gains came from China and Japan, where supply rose 7 and 4 percent, respectively. Autocatalyst scrap grew by 1 percent and hit 1.06 million ounces, its highest recorded level. Global vehicle production also saw a boost in 2014, rising 2 percent, to 90.5 million units.

The platinum price averaged $1,388 per ounce in 2014, the lowest annual average in seven years. That said, the metal’s price was boosted somewhat by South African supply risks, which helped push it up by 11 percent from the beginning of the year to July 10; at that time, it peaked at $1,512, the its highest level since September 3, 2013.

Image courtesy of Thomson Reuters GFMS.

Palladium in 2014

Palladium mine production fell by 7 percent in 2014, reaching a 12-year low of 6.04 million ounces, and putting the market into its deepest deficit in more than a decade. Again, driving that price action were strike-related losses in South Africa. Russian output helped offset that slightly, as it grew by 3 percent due to the release of in-process palladium inventory. Production in Zimbabwe also saw growth of 3 percent last year.

On the demand side, global desire for jewelry fell for the sixth consecutive year, reaching 470,000 ounces. That’s a 9-percent drop and the lowest amount since 2004.

In 2014, the palladium price averaged $803 per ounce, 10.7 percent higher than the previous year’s average. That was due to the large physical deficits that characterized the market in 2012 and 2013, and only deepened further in 2014 to 2.17 million ounces.

Image courtesy of Thomson Reuters GFMS.

Outlook for 2015

The platinum price is expected to average $1,170 in 2015. That’s 16 percent lower than last year’s average, though the price trajectory from current levels is upwards, towards $1,290. Still upward potential will be limited, and GFMS states that it “would not be surprised if platinum tested $1,000 this year.”

The bearish view is based on supply concerns, as South Africa’s output is expected to rise by 22 percent. Autocatalyst scrap is also set to increase by 10 percent, hitting a total of 7.05 million ounces. Demand is expected to grow by just 6 percent, taking it to an eight-year high of 7.72 million ounces. A deficit of just 670,000 million ounces is anticipated, compared to 1.02 million last year.

In contrast, the firm’s outlook for palladium is bullish as stricter emission standards and rising autocatalyst demand from both Europe and China will likely keep the market in a deficit. The firm expects a break level of $805, with a price beyond that number being “governed by the upward trending channel that dictated much of the activity witnessed over the last three years.” GFMS expects palladium to reach $940 by the end of this year.


Securities Disclosure: I, Kristen Moran, hold no direct investment interest in any company mentioned in this article. 

Related reading: 

Thomson Reuters GFMS: Gold to Average $1,170 in 2015

Thomson Reuters GFMS: Silver Price to Average $16.50 in 2015

Rockland Stakes More Platinum-Palladium Claims in Quebec

Rockland Minerals Corp. (TSXV:RL) announced that it has staked 140 new mining claims that cover 15,000 hectares and adjoin the southeast part of its Quebec-based Blue Lake platinum-palladium-copper-nickel property.

As quoted in the press release:

The Company now controls a full 40km long by 3 to 8km wide group of contiguous claims, on one of the most under explored and prospective Pt-Pd belts in Canada.

The new staking covers the mineralized ‘middle and upper sill’ units to the southeast of the Blue Lake Pt-Pd-Cu-Ni deposits (total Historical resources for the nine deposits outlined by ~550 drill holes and underground bulk sampling between 1950 and 1988, were estimated to be 4.37 million tonnes at 0.87% Cu, 0.52% Ni, 0.84 g/t Pt+Pd, per reports from La Fosse Platinum Group and T. Clark, 1991) with an approximate Pt:Pd ratio of 1:4. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources, and the Company is not treating the historical estimate as current mineral resources.

Rav Mlait, president and CEO of Rockland, said:

We are seeing significant ramp up in the acquisition and search for platinum and palladium in the Labrador Trough. Recently we have seen the sale and purchase of the historic Gerido deposit, the entrance of Japan Oil, Gas and Metals National Corp. (JOGMEC) and an initial resource estimate completed at Nickel North Exploration’s Hawk Ridge Project, all in the Labrador Trough. The price of platinum and palladium shows long term strength while supply faces serious constraints arising from high geopolitical risk, labour strife and systemic operating cost issues in primary producer countries like South Africa, Russia and Zimbabwe. Rockland’s platinum, palladium holdings represent an excellent exploration and development opportunity near infrastructure in the southern Labrador Trough, Quebec.

Click here to read the full Rockland Minerals Corp. (TSXV:RL) press release.

Absa Capital Set to Add Palladium ETF to Roster

Absa Capital Set to Add Palladium ETF to Roster

Good news has been the norm for palladium this year. Analysts have been bullish on the precious metal since the beginning of 2013, and since that time, positive sentiment —from firms such as the London Bullion Market Association and Thomson Reuters GFMS — has only increased. 

It’s no surprise, then, that market participants are growing more and more interested in Absa Capital’s rand-denominated palladium exchange-traded fund (ETF). For those not yet up to speed, here’s an overview of the key facts to be aware of before the ETF’s expected launch at the end of 2013.

All about Absa

Absa Capital, whose goal is to become the leading investment bank in Africa, announced at the end of September its receipt of regulatory approval for the ETF, with Vladimir Nedeljkovic, head of investments at the firm, commenting, “[w]e have regulatory approval, and we’re now basically just finalising a couple of small things,” as per Reuters.

Elaborating further, he said that “several asset managers, large institutional investors in South Africa” are potentially interested in the fund, also noting that he doesn’t expect it to be difficult to find metal in South Africa to back the ETF. ”[W]e’ve worked on this for a while, so it’s not likely to be a problem,” Reuters quotes him as saying.

Nedeljkovic’s optimism is not without basis. Absa listed the first fully backed physical platinum ETF on the Johannesburg Stock Exchange (JSE) back in April, and since that time, the NewPlat ETF has enjoyed great success: it became the world’s largest platinum ETF at the end of August, just four months after its launch, and this past weekend, the Financial Times reported that for the first nine months of this year, NewPlat has been the main raiser of fresh capital for the JSE.

However, Nedeljkovic does not see the palladium ETF attracting quite as much demand as NewPlat. In an interview with Bloomberg, he said his reasoning is that while platinum is “quite linked to the South African story,” palladium “is slightly less so.” Putting that sentiment more bluntly, Miningmx explains that NewPlat’s success is largely due to “the deep-seated concerns investors have for the South African mining industry,” while for palladium those concerns are less of an issue.

Even so, palladium’s current popularity seems to guarantee that interest in the new ETF is still likely to run fairly high.

Will rhodium be next?

For investors, all that’s left to do now is wait for Absa’s palladium ETF to be launched.

Absa, however, still has work to do. While it’s not a priority, Bloomberg notes that, as per Nedeljkovic, next up for the firm may be a rhodium-backed ETF. The firm is also considering other exchange-traded notes that would not be physically backed; no further details have yet been provided.


Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article. 

Related reading: 

Analysts Bullish on Palladium

Bound for Bullishness: Palladium Beating Analysts’ Expectations

Palladium Likely to Remain in Deficit Next Year

2 Reasons Palladium is Still Set to Outperform

2 Reasons Palladium is Still Set to Outperform

After hitting a two-month high of $766 per ounce in mid-August, palladium spent the rest of the month — as well as the first week or so of September — moving downward in what the Financial Times describes as a “sustained fall.” Though the metal has climbed since hitting a low point of $685 on September 9, its Monday closing price was just $714. 

While that news may be surprising to those who have watched analysts dole out positive forecasts for palladium right, left and center, it is by no means a sign to give up hope on the precious metal. In fact, analysts currently believe that palladium is still set to perform well this year. Here’s a look at two reasons for their positivity.

Lack of Russian, South African supply

The Wall Street Journal’s Laura Clarke notes in an article published last week that nearly 80 percent of the world’s palladium comes from South Africa and Russia; however, “output from both producers is likely to decline this year.”

Supply from Russia hinges mostly on what the country releases from its stockpiles. Although the amount of palladium they hold is a “state secret,” according to William Tankard, mining research director at GFMS, Clarke states that the widely held expectation is that anywhere from zero and 250,000 ounces will be released this year — not enough to head off the deficit the palladium market is headed toward.

Indeed, Clarke quotes Suki Cooper, a precious metals strategist at Barclays (LSE:BARC), as saying, ”[w]hile the possibility of surprise still exists … there would need to be a sizable swing in Russian palladium shipments to alter the substantial deficit we forecast for the palladium market in 2013.”

In terms of South Africa, Clarke notes that since last year, “labor tensions and associated strikes have cost the mining industry thousands of ounces of metal.” While this year there have been fewer issues, risks to supply remain, especially given the fact that South African mines are worsening in quality as metals become more difficult and more expensive to extract.

Chinese pollution control

Also set to have a positive impact on palladium prices is China’s recent introduction of new pollution guidelines.

In a recent MarketWatch article, Myra Saefong explains that the plan will “ban new coal-fired power plants in three key industrialized regions” and will require, among other things, “the replacement of coal-heating furnaces by gas-fired furnaces,” according to Deutsche Bank analysts. As a result, coal is likely to suffer.

For palladium, the prospects are better. The Deutsche Bank analysts believe that while the new rules will likely reduce the number of cars on the road, they will also spur the replacement of polluting cars. That will benefit palladium because it is used in catalytic converters, which help control emissions from vehicles.


Of course, there are factors that could derail palladium’s success.

Among those, Clarke notes, is the fact that, according to Dan Gollance, an investment director at Close Brothers Asset Management, supply from recycled catalytic converters is becoming “increasingly significant” and could become more attractive if prices for the metal continue to rise. Further, although supply from Russia and South Africa is faltering, other countries, such as the United States, are still putting out a fair amount of the metal.

The biggest risk to palladium, Gollance believes, is the possibility of “a big liquidation of investment positions held in ETFs and on exchanges.” His fear is that with “ETF holdings and speculative bets on higher palladium prices not far from all-time highs,” a large liquidation may be coming.

However, by and large, analysts seem confident that the metal is headed out of its slump. As James Steel, a commodities analyst at HSBC, is quoted as saying by the Financial Times, “[t]he underlying fundamentals remain tight. The decline has run its course” — in other words, it should be onward and upward from here on out.


Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Related reading: 

Palladium Likely to Remain in Deficit Next Year, GFMS Says

Bound for Bullishness: Palladium Beating Analysts’ Expectations

Palladium Still Reigns Supreme Over Precious Metals

Palladium Still Reigns Supreme Over Precious Metals

Palladium Still Reigns Supreme Over Precious MetalsUnlike other precious metals, palladium has been on the receiving end of raft of positive attention over the last few months: in May, Thomson Reuters GFMS said in its Platinum & Palladium Survey 2013 that it expects palladium to remain in deficit next year, and in June, news surfaced that the metal was beating analysts’ expectations. Since then, an RBC Capital Markets report and a Reuters survey have expressed similarly rosy outlooks for the metal.

As June drew to a close, RBC Capital Markets echoed GFMS’ prediction that palladium will spend 2014 in deficit, citing continued increases in autocatalyst demand and declining Russian stockpiles.

The firm forecasts that the metal will see an 800,000-ounce deficit in 2013, with prices hitting $750 per ounce; in 2014, RBC believes palladium prices will rise to $850 per ounce, although it does note that prices could face pressure if aboveground palladium supplies amassed in previous years are used.

Similarly, Reuters revealed yesterday that collectively, 20 analysts, traders and fund managers that it surveyed believe palladium will average $740 per ounce this year — that’s only slightly down from the $750 forecast in a similar poll conducted in April and substantially up from 2012′s average price of $641. Next year, they expect the precious metal to rise to $800.

Commenting on the results, UBS analyst Joni Teves told Reuters, “[o]f the four precious metals, palladium has the most compelling fundamental story. Investors like the metal this year … as they are expecting the global economy to be performing better, and this means brighter demand prospects for palladium, given its exposure to the U.S. and emerging markets auto sector.”

Palladium ETFs beating gold

While the best ETF Trends’ Tom Lydon has to say about exchange-traded funds (ETFs) backed by gold is that they “have been less bad in recent weeks,” he notes that ETFs backed by palladium have fared much better.

Lydon states that while the ETFS Physical Palladium Shares (ARCA:PALL) “was unable to withstand the May/June plunge that plagued precious metals,” it has since rebounded, gaining 15.1 percent, a more favorable increase compared not only to gold ETFs, but also to silver and platinum ETFs. With its “encouraging fundamentals,” he believes it may become the best way for ETF investors to get into precious metals this year.

For those looking for equity plays on rising palladium prices, he recommends looking at the iShares MSCI South Africa Index (ARCA:EZA), which has climbed 6.1 percent in the last year.

Junior company news

Last month, Colossus Minerals (TSX:CSI,OTCQX:COLUF) released a development update for the Brazil-based Serra Pelada gold-platinum-palladium mine, of which it owns 75 percent, noting that until the end of July, it would be focusing on “extending the excavation in the bulk sample access drift” so that it can build a 10,000-MT surface stockpile before mill commissioning begins in the upcoming quarter.

At the time of the release, project construction was 85 percent complete while structural steel erection was 55 percent finished; underground development was on schedule, as was other infrastructure development.

However, midway through July, the company hit a small setback after determining that some dewatering wells and pumps were not performing according to design specifications. While Colossus said in June that it hoped to reach initial production of 250 MT per day in the third quarter of 2013, it now expects a delay in gold production until late in Q4. It has redeployed resources and delayed mining activity through the central mineralized zone to ensure that it will still be able to produce 1,000 MT per day by the end of 2014′s first quarter.

Two days later, Prophecy Platinum (TSXV:NKL,OTCQX:PNIKF) started the 2013 field program at its Yukon-based Wellgreen platinum group metals-nickelcopper project. As part of the program, it plans to relog and and “comprehensively” analyze drill hole cores for platinum, palladium, rhodium, gold (4E), nickel, copper and cobalt mineralization with NI 43-101 quality control measures so that they can be included in the Prophecy’s updated 2014 preliminary economic assessment.


Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article. 

Related reading: 

Palladium Likely to Remain in Deficit Next Year, GFMS Says

Bound for Bullishness: Palladium Beating Analysts’ Expectations

Bound for Bullishness: Palladium Beating Analysts’ Expectations

Bound for Bullishness: Palladium Beating Analysts' Expectations

As part of the London Bullion Market Association’s (LBMA) Forecast 2013, 20 analysts from top firms such as Societe Generale (EPA:GLE), Barclays Capital and Deutsche Bank (NYSE:DB) predicted what the palladium price will do this year. On average, the experts forecast that the metal will hit a high of $851 per ounce, a low of $607 and an average price of $744.  

However, as Bloomberg recently reported, palladium is faring quite a bit better than the analysts expected. The publication notes that the metal’s 2013 low of $646.95 per ounce is “still higher than 17 of 20 forecasts” made in the LBMA report. In fact, palladium rose to a nine-week high of $771.30 just last Monday.

The news is significant given that gold, silver and platinum, the other metals covered in the LBMA report, have “already fallen below every [survey] participant’s low estimate,” hampered by the recession in Europe and fear that the Federal Reserve will reduce its bond buying.

The reason, Rohit Savant, an analyst at New York’s CPM Group, told Bloomberg, is that palladium “just has stronger fundamentals than most of the other metals.”

What’s driving palladium?

Rick Rule, chairman of Sprott US Holdings, also recently made that case. Writing for Uncommon Wisdom, he noted that the fundamentals for palladium — as well as platinum — “are uniquely suited to the current investment environment,” laying out the main factors he sees as casting a bullish light on the metals.

For instance, South Africa, Zimbabwe and Russia produce 90 percent of the world’s palladium, according to Rule, but supply from all three is being hampered by a variety of issues, including:

  • Production declines: relatively few palladium mines are profitable, and in recent years miners have been closing those that do not at least break even. That’s a problem because unlike gold and silver, which are mined, but can also be gleaned from above-ground sources like vaults, palladium supply is essentially entirely derived from mines.
  • South African catch-22: South African mines are unprofitable because in order to keep employment levels up, the government will not allow modern machinery to replace workers. However, mining companies cannot afford to pay these workers adequately because their mines are not making money. They also have no money to develop new ore bodies.
  • Resource nationalism: Rule notes that Robert Mugabe, president of Zimbabwe, plans to push for the nationalization of his country’s mining industry in the next election. The nation is rich in palladium, but if Mugabe is successful, it will become much less appealing to miners.
  • Aging Russian mines: Though Russia is more politically stable than South Africa and Zimbabwe, its palladium mines are old and their ore grades are declining.

As supply dwindles, Rule believes that demand is set to grow, driven mainly by the following factors:

  • China’s air quality: the Chinese government has suggested that as part of a five-year plan aimed at improving air quality in the nation, it will “order manufacturers to have five times more platinum and palladium loadings per vehicle than currently used,” a move that could substantially increase the country’s demand for both metals. 
  • Continued demand from North America, others: though China is only just starting to take steps to decrease pollution from vehicles, North America, Western Europe and Japan already use a lot of palladium in the vehicles they produce and will continue to do so. ETF Daily News points to North America in particular as a driver of palladium demand.

With demand set to grow as supply declines, Rule believes that “[p]latinum and palladium are still undervalued relative to the benefits they provide, but they cannot remain this cheap much longer.” They are set to go “higher, perhaps much higher — potentially creating a lot of wealthy speculators along the way.”

How to invest

Investing in palladium companies is an option, but lately some investors have been taking another route.

In a report published last month, David Franklin of Sprott Asset Management recommended that investors interested in palladium take a position in the metal itself, pointing out that “holdings of all platinum ETFs have increased by 30% since the beginning of this year and palladium holdings have increased by 16%,” both of which are “healthy increases.”

Similarly, Rule recently used $280 million to buy equal amounts of platinum and palladium through the Sprott Physical Platinum and Palladium Trust (ARCA:SPPP).


Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Related reading: 

Palladium Likely to Remain in Deficit Next Year, GFMS Says

David Franklin: Platinum Price Going Higher

Introduction to Palladium Investing

Zimplats Borrows Higher on Depressed Metal Prices

Zimbabwe Platinum Mines (ASX:ZIM) said it will have to borrow more money than originally planned due to depressed metal prises that have put pressure on cash flows.

As quoted in the market news:

The company also saw an 11% decrease in revenue to $114.43-million from $128. 21-million achieved in the March quarter.

Despite the 13% increase in the metals sales volumes during the latest quarter, which increased to 102 098 oz from 89 979 oz, gross revenue per platinum, palladium, rhodium and gold (4E) ounces were 21% lower than the previous quarter.

Click here to read the full Mining Weekly report.

Precious Metals Report: “Franc-ly Our Dears, We Do Give A Damn…”

IBTimes reports that palladium continues to move up regardless of gold’s dive down today.

The market news is quoted as saying,

Palladium bucked the trend, rising $2 to open near $763.00 per ounce. Rhodium appeared immune to the turmoil and remained bid at the $1,850.00 per ounce level. News from South Africa had Zimbabwe’s President Mugabe saying that he expects foreign firms (mining ones among them, of course) to fully cooperate when the planned switch in ownership stakes in local operations eventually takes place. Mr. Mugabe also said that there is a plan afoot to establish a state mineral exploration firm that will gauge the size of the country’s wealth that resides underground.

For the complete market news, click here.

Rick Rule: Play Metals Stock Volatility to Win

Business Insider reports that Rick Rule says volatility in the market can be used to make money in the gold and platinum group metals markets.

The market news is quoted as saying,

For supply-side reasons, Rule is increasingly attracted to the platinum business. More than 80% of platinum and palladium ?PGM metals ?come from three countries: South Africa, Zimbabwe and Russia. He cites local political turmoil as a limiting factor in the continued production in these areas.

For the complete market news, click here. 

Norilsk Says Nkomati Output at 20,000 Tons per Year by End 2012

Reuters reported that Norilsk Nickel expects output at its South Africa joint venture to almost double by the end of 2012.

The market news is quoted as saying:

Norilsk, the world’s top nickel and palladium producer, is in a 50-50 joint venture with South African diversified miner African Rainbow Minerals and the two have collectively invested 3.6 billion rand ($524 million) to expand the Nkomati mine in the Mpumalanga province.

To read the full market news, click here.

PGMS set to surge over next 3 years reports that due to limited supply and rising demand, PGM metals are set to rise sharply in the coming years.
The editorial is quoted as saying:

The big question then is where is this going to come from – even at no growth there is 15% short in terms of metal.  If you then look at the South African supply base – and you particularly look at the significant brewing problem of South African power shortages – I don’t understand where we are going to be looking to find these expansions in ounces – yes there is some scope in Zimbabwe , and there is a little bit of scope in North America with North American Palladium expanding

To access the full editorial, click here