A surge in palladium prices has thrown struggling South African mining companies...
LONDON - A surge in palladium prices has thrown struggling South African mining companies a lifeline. But it may not be enough.
Unlike South African mines, Nornickel’s ore produces four times as much palladium as platinum and the company has lower extraction costs, leaving it in prime position to benefit from palladium’s bull run and reinforce its dominance. Palladium hit a record $1,620 an ounce in March, a surge of nearly 100 percent since August. It has slipped back to around $1,335, but is still more expensive than gold.
According to consultants Metals Focus, higher car industry demand should leave the palladium market with a deficit of 574,000 ounces in 2019, the eighth year of shortfalls in a row. Platinum is expected to have a surplus of 630,000 ounces.Overall, the basket price of PGMs in South Africa has risen about 30% over the past year thanks to palladium, but miners are not generating enough returns given the composition of their ore to boost production significantly.
Sibanye has fared better than its rivals partly thanks to its higher exposure to palladium after its acquisition of U.S. mining company Stillwater in 2017. The addition of Stillwater means it now produces an even split of platinum and palladium. Anglo American Platinum , the top South African palladium producer, resumed dividends in 2017 for the first time since 2011 and raised its dividend payout-ratio this year, but it too is shying away from major spending.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
South Africa's Ramaphosa targets reforms after election winSouth African President Cyril Ramaphosa led the African National Congress (ANC) ...
Weiterlesen »
South Africa's Ramaphosa targets reforms after election winSouth African President Cyril Ramaphosa led the African National Congress (ANC) ...
Weiterlesen »
South Africa's ruling ANC set to celebrate election victorySouth Africa's ruling African National Congress is preparing to celebrate its win in national elections.
Weiterlesen »
ANC coasting to victory in South African electionThe African National Congress was set to easily win South Africa's election...
Weiterlesen »
South African election rebuke sets up reform testSupport for the ruling ANC dropped below 60% for the first time since apartheid. That gives President Cyril Ramaphosa the impetus to reverse the country’s downward slide. Voters and investors will judge him on how he tackles corruption, overmighty unions and shoddy state firms.
Weiterlesen »
Cyril Ramaphosa and the African National Congress narrowly win South Africa's electionsThe election, 25 years after apartheid ended, was as a referendum on the beleaguered party
Weiterlesen »
Caster Semenya ruling will be appealed by South African track bodyCourt of Arbitration for Sport upheld a rule requiring the Olympic champion to lower testosterone levels but the legal fight might not be over
Weiterlesen »
South African officials to appeal decision in Caster Semenya gender-testing caseSouth Africa’s national track federation plans to appeal the landmark ruling in the Caster Semenya gender-testing case, a government official said.
Weiterlesen »
South Africa’s ruling African National Congress on track to win parliamentary electionsWith 94% of the vote counted Friday evening, the ANC had secured 57.7% of the national vote. However, this is the party’s worst electoral performance since it was voted into power in 1994.
Weiterlesen »
Provisional results show South Africa's ANC wins parliamentary electionThe African National Congress retained control of South Africa's parliament...
Weiterlesen »
South Africa's ANC celebrates election victory in downtown JohannesburgThousands of supporters of South Africa's African National Congress (ANC) t...
Weiterlesen »