By International Mining,
October 14, 2009 at 6:57 AM
Opening the RBC Capital Markets’ second annual Platinum Group Metals (PGM) Conference at Grosvenor House in London yesterday, Leon Esterhuizen, Director and Equity Analyst at RBC Capital Markets said: “Almost three quarters of the world’s platinum supply and about half of the world’s palladium supply comes from South Africa but, given the current strength of the rand, which is effectively neutralising much of the recent US dollar metal price increases, over half South Africa’s supply is generating negative cash flow (after capital expenditure). On the premise that demand may be lower, but will not contract any further, this implies only one of two possible outcomes - either metal prices will have to increase even further or mine production will be cut, pushing prices higher as supply contracts. (more…)