PLATINUM (NYMEX) Future Fuel cell Vs Batteries ...Platinum demand

Originally posted by m3ntor ↑

great find.

I am doing a lot of reading about platinum and it really seems like one of those cases of diminishing supply coupled with increasing demand.

Platinum is an integral part of the Fuel cell cars story, which is at infancy with Shell Petroleum announcing a 400 station network across Germany

http://www.shell.com/media/news-and...-hydrogen-vehicle-fuelling-pumps-germany.html

Platinum is an important element and a catalyst in combining oxygen and hydrogen to provide energy
There are several different types of fuel cell but the most researched type is the proton exchange membrane (PEM) fuel cell, which contains platinum catalysts. PEM fuel cells are capable of being used in power generation for buildings, instead of batteries or generators in portable equipment and as replacements for the internal combustion engine in a vehicle.

http://www.platinum.matthey.com/about-pgm/applications/fuel-cells#sthash.w4mhJf3F.dpuf

here we are seeing demand increase while supply is diminishing....
from the World Platinum Investment Council (https://www.platinuminvestment.com/supply-and-demand/platinum-quarterly)

For the first quarter of 2016, today’s report once again highlights a market that is tightening, with supply falling and demand rising:

Total platinum supply fell 210 koz (-11%) quarter-on-quarter to 1,735 koz, with total mining supply slipping 230 koz and recycling growing by only 20 koz.

Refined production fell 420 koz quarter-on-quarter owing to a decline in South African refined output caused by a temporary refinery closure, the effect of which was not totally offset by sales of 150 koz from producer inventory.

Global platinum demand rose 180 koz (+10%) quarter-on-quarter to 2,010 koz despite lower jewellery (-11%) and industrial usage (-6%), as automotive demand improved (+2%) and investment demand enjoyed a positive quarter after seeing disinvestment in Q4’15.

Platinum prices looks very good on the six month (but so do many other commodities!):

View attachment 207423

Platinum in the ASX
In terms of good leveraged Platinum ASX exposure (I don't have the funds or patience to sit on blue chips!), I've only been able to locate PGM and RIM as mentioning it in their presentations.

PGM and RIM are neighbouring and are located in Fifield NSW, where CLQ is located and through its old name Ivanplats had been hunting for Platinum years ago (also under Friedland I think - not 100% sure).

Funnily enough, Robert Friedland is a big believer in Platinum with numerous investments in South Africa via Ivanplats Canada, could this be another reason he has thrown so many eggs into Fifield NSW with Cleanteq Holdings (CLQ) @Bomber78 ?

http://www.mining.com/friedland-wants-south-africa-to-be-the-silicon-valley-for-platinum-65665/

http://investingnews.com/daily/reso...sting/robert-friedland-platinum-airpocolypse/

@mouse I know you don't like fuel cell cars, but would be interested to know your thoughts on Platinum moving forward.... the above link I posted in bold has other important uses for platinum that would imply increased demand

DYOR

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It's not that i don't like fuel cell cars, it's more the fact on how do people interested in alternative fuel car's justify $60k for a fuel cell car with high maintenance costs compared to a $35k EV with very little maintenance costs ?

For those who are tempted by fuel cell technology, only a few models are commercially available. Unfortunately, these remain expensive compared to similarly sized petrol, diesel or even battery electric rivals. Toyota's Mirai, for example, costs around £60,000 with Toyota expected to lose money on every one sold. This price includes the £4,500 Category 1 UK Plug-in Car Grant (PiCG) which includes the Mirai as an eligible vehicle.

http://www.nextgreencar.com/fuelcellcars/

Now have a look at these link's

The e-Golf can be 80 per cent fast-charged in just 30 minutes, but you’ll need 13 hours or so to brim the battery at home. The list price says £30k but the Government grant takes £5k off that, making it look like a bit of a bargain to buy, particularly when it’s so well equipped as standard. If an electric car fits your lifestyle, this is one of the best out there.

http://www.topgear.com/car-reviews/volkswagen/e-golf

The Model 3 will go head-to-head with the established big sellers in the compact executive car class. Production will being in America in 2017 with first cars expected in the UK in 2018. It will have a starting price of $35,000 (£24,400) in the US but Elon Musk hinted that most models will be sold for closer to $42,000 (£29,400) once options are added

http://www.autoexpress.co.uk/tesla/...price-specs-pictures-and-2017-uk-release-date

The price difference is massive, most new car's sold come in the bracket of 20 - 35k for good reason, one of the most important reason is affordability. Due to cost saving of about $10k on a average life of owning a EV as illustrated by my post to you awhile ago, some consumers wile justify paying that extra for a EV over combustion vehicle and more consumers will follow as EV's becomes cheaper.

m3tor, if the general public could offered the cost's i would be all for the idea of fuel cell but having worked at a car dealership & noticing price is equally as important as quality for most consumers, $60k or $300 a week repayments over 5 years is going to be a very hard sell.

Top 10 car's sold around the world:

Corolla
Golf
Focus
Polo
Rav 4
Honda CR-V
Camry
Hyundai Elantra

All sell in at that affordability price range

http://www.autoguide.com/auto-news/2016/01/top-10-best-selling-cars-in-the-world-for-2015.html

The only negative with EV's is the range of KM's per charge, but i expect manufactures are working hard at trying to get it sorted with in the next few years which means EV's will have everything going for it to take market share from combustion car's... I just do not understand how Fuel cell car's would be able to compete ?