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Platinum Group Metals

Platinum seen contributing as much to South Africa’s economy as gold did in the 20th century – by Natasha Odendaal (MiningWeekly.com – May 3, 2019)

https://www.miningweekly.com/

With the too-high economic cost of a lost opportunity looming, immediate measures are required to assist the platinum group metals (PGMs) mining sector to improve its viability and preserve employment.

This is the intent behind the industry’s new South African National Platinum Strategy, with its most optimistic scenario the creation of more than one-million jobs and a contribution of R8.2-trillion to South Africa’s economy by 2050.

“Platinum . . . can play the role that gold played in helping to develop South Africa into the most [advanced] country in Africa,” says Minerals Council South Africa CEO Roger Baxter, noting that the platinum treasure trove could enable South Africa to regain its position as the undisputed leading country in Africa going forward.

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Zimbabwe attracts two new investors to develop platinum mining projects (Reuters U.S. – April 17, 2019)

https://www.reuters.com/

MHONDORO-NGEZI, Zimbabwe (Reuters) – Zimbabwe will in coming weeks name two new investors who will develop separate platinum mining projects west of the capital as the country ramps up mining output in an attempt to ease a severe dollar shortage, the mines minister said on Wednesday

The southern African nation has the second largest platinum deposits after South Africa and hopes to transform its economy by boosting investment in the mining sector.

Winston Chitando said the two investors would be confirmed in the next few weeks, joining a sector where Anglo American Platinum and Impala Platinum already operate.

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Norilsk Nickel, Russian Platinum ready to invest $3.8 bln in Arctic Palladium project (Tass.com – April 10, 2019)

http://tass.com/

The project will create about 8,000 jobs in the north of the region

ST.PETERSBURG, April 10. /TASS/. Norilsk Nickel and Russian Platinum may invest more than 250 bln rubles ($3.8 bln) in the Arctic Palladium project, Vice-President of Norilsk Nickel Dmitry Pristanskov told TASS on the sidelines of the International Arctic Forum in St. Petersburg.

According to him, the project involves the development of several platinum-group metal deposits on Taimyr Peninsula (north of the Krasnoyarsk Territory) and investments arte to be made before 2033.

In February 2018, Norilsk Nickel and businessman Musa Bazhaev’s Russian Platinum signed an agreement on strategic partnership, involving the creation of a joint venture for the further development of ore deposits of the Norilsk industrial region.

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UPDATE 2-Zimbabwe mulls ‘use it or lose it’ approach to mining rights – by Tiisetso Motsoeneng (Reuters Africa – April 10, 2019)

https://af.reuters.com/

JOHANNESBURG, April 10 (Reuters) – Zimbabwe may withdraw mining rights from companies that take too long to dig for minerals, the deputy mines minister said on Wednesday, part of efforts to lift output in a sector vital to the country’s economic revival.

Zimbabwe sits on the second-largest known platinum deposits after neighbouring South Africa and President Emmerson Mnangagwa is keen to revive mining after years of reticence by foreign investors during the Robert Mugabe administration.

Speaking to investors and executives at a mining conference in Johannesburg, Polite Kambamura said details of the so-called “use it or lose it” approach to mining policy would be made available in due course.

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The Future Looks Bright For Palladium Prices – Platinum Group Metals CEO – by Neils Christensen (Kitco News – April 3, 2019)

https://www.kitco.com/

(Kitco News) – Palladium prices have fallen sharply from last month’s record highs, but the metal’s long-term potential will continue to drive prices higher for years, amid an economic downturn, according to one mining executive.

In a recent interview with Kitco News, Michael Jones, president and CEO of Platinum Group Metals (NYSE: PLG TSX: PLG), said that his company continues to move forward with the development of its South African Waterberg PGM project as he sees further growth potential for palladium.

Jone’s comments come as palladium prices have fallen nearly 13% from March’s historic highs. June palladium futures last traded at $1,376.30 an ounce.

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Russia’s Richest Man Plans Crypto Tokens Backed by Palladium – by Yuliya Fedorinova (Bloomberg News – March 27, 2019)

https://www.bloomberg.com/

MMC Norilsk Nickel PJSC and its billionaire chief Vladimir Potanin are planning several digital platforms, including using crypto tokens for trading palladium.

The world’s top palladium producer is in talks with Swiss authorities about issuing tokens by its Switzerland-based palladium fund, and may eventually expand the concept to other metals, Potanin said in an interview in Moscow.

“People more and more tend to use decentralized networks and platforms that don’t have a main operator,” he said. “We want to be active participants of this process,” as trading in digital tokens has many advantages, he said.

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Russia ban, Fiat Chrysler drive palladium price to new record high – by Frik Els (Mining.com – March 19, 2019)

http://www.mining.com/

Palladium prices were driven further into uncharted territory on Tuesday, briefly topping the $1,600 an ounce level on the back of an expected spike in demand from the auto sector just as top producer Russia considers banning scrap exports.

The precious metal is trading more than 70% higher than this time last year. Reuters reports Russia is mulling a ban on the export of precious metals scrap and tailings to promote domestic refining of the materials.

The news follows an announcement last week that US authorities have ordered Fiat Chrysler Automobiles to recall 965,000 vehicles over failed emissions testing. The automaker could also face a consumer class action lawsuit over potential delays in implementing the recall.

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This commodity is hitting record highs. Here’s how Canadian investors can profit from it – by Brenda Bouw (Globe and Mail – March 4, 2019)

https://www.theglobeandmail.com/

A recent surge in the price of palladium, a precious metal primarily used to help lower vehicle emissions, has investors looking at how to play the sector to potentially reap future gains.

The spot price for the metal hit a record high of US$1,565.09 on Tuesday amid threats of a strike at a number of mines in South Africa, one of the world’s top palladium-producing countries. A work stoppage would further reduce the supply of the commodity which is already tight as demand for the metal continues to increase. While the price of palladium has retreated from its high earlier in the week, it has increased by more than 20 per cent so far this year.

About 85 per cent of palladium production goes toward manufacturing catalytic converters, which help to reduce emissions from automotive exhaust. Demand has soared amid tightening emissions standards around the world, particularly in emerging markets.

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PRECIOUS-Palladium breaches $1,550/oz as supply fears grow; gold steadies – by Arijit Bose and Eileen Soreng (Reuters U.K. – February 26, 2019)

https://uk.reuters.com/

Feb 26 (Reuters) – Palladium broke past $1,550 an ounce for the first time on Tuesday on the back of intensifying supply deficit, while gold steadied after U.S. Federal Reserve Chairman Jerome Powell reiterated the central bank’s patient stance in further rate hikes.

Spot palladium soared to $1,565.09 per ounce earlier in the day, and was up 0.9 percent at $1,555 by 2:25 p.m. EST (1925 GMT).

“Palladium is up based on the fact that there are 15 mining firms in South Africa, that could go on strike this week,” Bob Haberkorn, senior market strategist at RJO Futures.

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Palladium Smashes $1,500 as Shortages Ignite Record-Breaking Rally – by Ranjeetha Pakiam (Bloomberg News – February 20, 2019)

https://finance.yahoo.com/

(Bloomberg) — Palladium surged above $1,500 an ounce to a record, extending a powerful rally that’s been driven by an acute shortage of supply as car manufacturers scramble to get hold of the material to meet stringent emissions controls.

Spot palladium surged as much as 1.7 percent to $1,505.46 an ounce, and traded at $1,488.20 at 10:08 a.m. in New York. Prices are set for a seventh straight monthly gain. The advance will benefit top suppliers in Russia and South Africa. In other precious metals, gold rallied to a 10-month high, while silver and platinum both climbed.

Palladium, a silvery-white metal used to curb emissions from gasoline-fueled vehicles, has tripled since January 2016. Citigroup Inc. said this month that further gains may be in store, warning the market will only balance with a shock to demand. Prices may hit $1,600, the bank forecasts.

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The diesel emissions scandal helped make palladium more valuable than gold – by Natasha Frost (Quartz.com – January 23, 2019)

https://qz.com/

Palladium prices have never known such glittering heights. The silvery-white precious metal is now $1,351.40 an ounce: more expensive than gold ($1,283.75 an ounce) or platinum ($792.30 an ounce), and just a little cheaper than iridium ($1,460 an ounce) and rhodium ($2,460).

As Bloomberg reports, palladium has surged around 50% in the past four months. A decade ago, it cost less than $200 an ounce.

About 80% of all palladium winds up in the exhaust systems of cars—it helps turn nasty pollutants into more benign water vapor and carbon dioxide. (The metal has also occasionally been used for jewelry, particularly during World War II, where a scarcity of platinum led it to be used in wedding bands.)

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Palladium Tops $1,400 First Time Ever On ‘Avaricious’ Demand – by Allen Sykora (Kitco News – January 17, 2019)

https://www.kitco.com/

(Kitco News) – Palladium – described as a tight market for some time now due to robust automotive demand – topped $1,400 an ounce for the first time ever on Thursday. A desk trader in the physical market said that at one point, palladium suddenly rocketed ahead by around $80 in three hours. Another dealer said prices then eased on profit-taking, but he looks for another test of $1,400.

Spot palladium was $32.75 higher to $1,389.55 an ounce as of 11:11 a.m. EST. The metal peaked just above $1,431 overnight. This was $136 higher than the session peak in spot gold.

“Supplies [of palladium] are pretty much what they were, but demand has been avaricious over the past year,” said Bill O’Neill, one of the principals with LOGIC Advisors, in an interview with Kitco News. “As a result, we have soaring palladium prices and a premium to gold.”

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Platinum price fall worsening plight of job-intensive mines – by Martin Creamer (MiningWeekly.com – January 16, 2019)

http://www.miningweekly.com/

JOHANNESBURG (miningweekly.com) – The latest fall of the platinum price is threatening to become the last straw that broke the camel’s back for some deep labour-intensive platinum group metals (PGMs) mines on particularly the western limb of the Bushveld Complex, Mining Weekly Online can today report.

Well ahead of the latest price decimation, platinum company CEOs were expressing concern about the lossmaking position of western limb PGMs mines, which account for 55% of South Africa’s platinum production and provide 136 000 direct mining jobs.

At the time of going to press, the platinum price was $801/oz, which even rand conversion is unable to embellish to an acceptable level. As long ago as February 2012, the then Anglo American Platinum CEO, Neville Nicolau, was unequivocal about $1 900/oz being essential for the capital investment required to maintain long-term production.

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Pimco Favors ‘Unloved’ Platinum That’s Looking Cheap Versus Gold – by Ranjeetha Pakiam (Bloomberg News – January 16, 2019)

https://www.bloomberg.com/

Platinum could be the dark horse among precious metals, according to a money manager at Pacific Investment Management Co.

Nic Johnson, Pimco’s managing director and portfolio manager for commodities, says he prefers the metal over gold. Used in autocatalysts of diesel engines and jewelry, it’s near the cheapest ever relative to both bullion and palladium, after tumbling 14 percent last year.

While investors have poured into gold funds, they’ve deserted platinum, which has fallen out of favor amid shrinking demand and excess supply. The possibility the trend reverses even slightly represents a buying opportunity, Johnson said in an interview from Newport Beach, California. With $1.72 trillion under management as of September, Pimco is one of the world’s largest bond managers.

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Palladium Still Isn’t Pricey Enough – by David Fickling (Bloomberg News – January 10, 2019)

https://finance.yahoo.com/

(Bloomberg Opinion) — Platinum’s lesser-known cousin keeps going from strength to strength. Palladium, once considered an unattractive by-product of platinum mining until the rise of catalytic converters in the 1970s, is hitting new records.

Spot metal peaked at an all-time high $1,344.41 a troy ounce Wednesday. Over the past month, it’s been more costly than gold, which hasn’t happened since 2002. From a point a decade ago when an ounce of platinum bought you more than 5 ounces of palladium, it now buys you about 0.6 ounces.

You might think this spike will spark an immediate reversal and slump, as is often the case with commodity prices. That may not happen, though, because prices still aren’t high enough to prompt a supply surge.

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