Some platinum stocks are looking attractive again as oversupply that depressed prices for years subsides, said Allan Gray, the South African money manager that oversees the equivalent of about $45 billion.
Companies that Allan Gray has invested in include world number-two producer Impala Platinum Holdings Ltd. and Royal Bafokeng Platinum Ltd., the best-performing stock in the sector this year in Johannesburg, analyst Rory Kutisker-Jacobson said by phone from Cape Town. Impala said Feb. 21 that the money manager had increased its stake to 20 percent.
South African miners, which account for about 70 percent of the world’s known primary platinum resources, have cut back on spending, gradually erasing an excess of the metal, according to Kutisker-Jacobson.
Anglo American Platinum Ltd., the largest producer, said last week it would pay its first dividend in six years after reducing debt and more than doubling profit.
“You see the structural decline in South African platinum production and, given where share prices are at the moment, we think it’s a relatively attractive proposition,” Kutisker-Jacobson said.
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