World’s Top Platinum Miner Says...
Platinum is a valuable and precious metal. Platinum is used extensively for jewelry, but its main use is in catalytic converters for cars, trucks and buses. This accounts for about 50% of demand each year. Platinum is very effective at converting emissions from the vehicle’s engine into less harmful waste products.
Platinum is also used in the chemicals industry as a catalyst for the production of nitric acid, silicone and benzene. The electronics industry uses platinum as well for computer hard disks and thermocouples. Lastly, platinum is also is used to make optical fibres and LCDs, turbine blades, spark plugs, pacemakers and dental fillings.
The world’s No. 1 platinum miner said the price of the metal could climb more than 80% over the next four to five years as the global economy recovers and supply dwindles.
That forecast comes as demand for platinum-group metals has already rebounded to pre-pandemic levels, Sibanye Stillwater Ltd. Chief Executive Officer Neal Froneman said in an interview from his farm in South Africa’s Limpopo province.
“Platinum has only just started to re-rate and it will continue,” Froneman said. “There is no reason why platinum will not eventually trade at $2,000 an ounce and probably even higher.”
It’s not Froneman’s first bold call. When the South African dealmaker acquired Stillwater Mining Co. four years ago, critics lined up to say he had overpaid for the U.S. palladium producer. Since then, the price of palladium has almost quadrupled, allowing Sibanye to resume dividends and repay debt.
Now what Neal is talking about is a double in the price which currently trades at about $1000. However, before we consider Platinum at $2000, price not only has to deal with the monthly supply at $1250,
but the next level that price will have to battle is the major resistance/support band right above the monthly supply.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
Posted Using LeoFinance Beta
