1. Xstrata has 'infinite patience' on Lonmin, platinum growth 071210 Currently, Xstrata produces platinum from its Elandsfontein mine in South Africa, which the group acquired when it bought Eland Platinum in 2007.
It also owns 37% of the Mototolo operation, a joint venture with Anglo Platinum, and has an option to earn into properties being explored by ASX-listed Nkwe Platinum.
Although the platinum business remains smaller than the group's other commodity units like coal, copper or zinc, Davis said he has no intention of getting out of platinum, and still plans to build the division up into a 'scale' business.
2. Xstrata Alloys - Development Xstrata Alloys anticipate completing their review by the end of the first quarter of 2011, following which Xstrata will decide whether to exercise the 50% participation option it has acquired.
3. Xstrata Alloys - Outlook Operating challenges continued to plague the platinum industry and production in 2010 was again characterised by falling head grades, safety stoppages, strikes and Merensky reef depletion, leading to another year of disappointing output, over a million platinum ounces lower than the record volumes achieved in 2006.
A combination of ongoing supply constraints, expected demand recovery, continued tightening of emission legislation globally, in particular for heavy duty and off-road vehicles and strong investment demand are positive signals for robust PGM prices in 2011.
Palladium will continue to be favourably exposed to increasing autocatalyst demand due to the increase in gasoline-vehicle sales in BRIC countries, especially China, and the depletion of Russian stocks.
So for now...
The JV option sounds alive. Following Xstrata comments, the review is completed in Q1, 2011. Is a proposal currently put forward towards the Board? to Micky?
Thoughts to ponder:
Xstrata bought Eland Platinum in 2007 when PGM's were at a lower basket price for USD 1b (ZAR7,525 billion )
Eland Platinum only have 22.7m 4E PGM, compared to NKP's 68.5m 4E PGM
Peter purchase of $100k shares adding to existing portfolio and existing directors have shares in Genorah which will benefit directly from any JV/TO bid.
Existing PGM operatings experiencing falling grades, reef depletion and lower output... hmmm what project is big enough to replace this? into a so called of "scale business" to live Xstrata's PGM ambition?
