not sure if this has been posted, nothing overly intereting...

not sure if this has been posted, nothing overly intereting about plat in general.

http://www.proactiveinvestors.com.au/companies/news/49369/platinum-becomes-rarer-as-production-hampered-asx-platinum-plays-49369.html




The platinum market is in a state of flux due to weak supply while jewellery and industrial demand grows.

It is amazing to think that a fifth of all consumer goods either contain platinum, or are produced using platinum.

To highlight just how hard it is to discover platinum is, it 30 times more rare than gold - and occurs as only 0.003 parts per billion in the earth’s crust.

With this in mind, there is little wonder why there is only a few hundred tonnes of platinum produced annually.

Close to 75% of the production on the globe comes from South Africa, with recent strikes within the country hitting platinum production - which has the potential to provide an opportunity for ASX platinum "plays".

Russia produces around 15%, with the country also having internal obstacles to increased production. Zimbabwe produces around 6%.


Platinum demand set to climb

There are many varying technology uses for platinum, such as catalytic converters, laboratory equipment, electrical contacts and electrodes, platinum resistance thermometers and dentistry equipment.


Platinum group metals

Platinum is both an essential and precious metal and is part of the six member family of platinum group metals (PGMs) which also includes palladium, rhodium, iridium, osmium, and ruthenium.

These metals are known for their purity, high melting points and ability to stay stable at high temperatures - and in addition - to their oxidation and reduction properties, they are also extremely resistant to corrosion.


Platinum versus gold spread

The price of an ounce of platinum currently sits around US$1450 an ounce, or around 8% higher than the US$1350 gold price.

While the two are closely connected - with the recent slump in gold putting an even bigger dint in the platinum price, recently platinum has moved out of the yellow metals shadow.

Six-months ago the metals fetched a similar price at around US$1420 an ounce, but a year ago gold was bid at a 6% premium.

With the production shortages in platinum caused by the sovereign risk of the producing countries, platinum may well continue to attract a premium price over gold - with this premium having the potential to widen.


ASX "plays"

Platina Resources (ASX: PGM) Owendale project in New South Wales is Australia’s most advanced new platinum development opportunity with around 287,000 ounces of contained platinum.

Platina could have Australia’s first platinum mine by 2015, with the company's share registry including Owendale is also the world’s highest-grade laterite hosted scandium deposit
around 3,400 tonnes of contained scandium.

Condoto Platinum's (ASX: CPD) Novita project in Columbia is the only primary platinum district outside of South Africa and Zimbabwe with significant potential for mining expansion.

Colombia was actually the world’s only source of platinum until 1820, with Condoto conducting the first modern exploration in the in this prolific region. There is also the potential for gold.

Aquarius Platinum (ASX: AQP) is a significant producer of PGMs primarily in South Africa’s Bushveld Complex, the largest PGM repository in the world.


Note: These companies are provided for background on the silver sector.