How is platinum doing lately?

https://finviz.com/futures_charts.ashx?t=PL&p=m

Investors, who are tracking cycles believe, industrial metals will likely bottom later this year. From chart above you can see depressed platinum price with base in the making last several years. China is finally starting to uptick and latest data shows in car manufacturing, hybrids are leading over EV, which is bullish for platinum.

SBSW is global leader in platinum production and one of the biggest gold producer. (Biggest in Africa)

How are they doing? Struggling! Quarter after quarter their profit was smaller, with last one being break even. I’m expecting next one will show loss. I plan to buy at that time my first scale in position. Somewhere between $3.5 and $4. Closer to 3.5, better. This chart is few months old, but price is now close to where it was then, near $4.

Current: https://finance.yahoo.com/quote/SBSW/chart

Their platinum cost of production is high, over $1200 (actually, all-in sustaining cost (AISC) for platinum group metals is over $1200) so, gold is currently subsidizing platinum production. Cost of gold production is around 1800. If you expect platinum price to start rising again, (or both, gold and platinum) then this may be a good “cycle bottom” play for next few say 3-5 years. With upside of few 100%

Sibanye’s portfolio isn’t just about gold and platinum. It’s also tapping into the battery metals market, with operations in Europe – adding a modern edge to its mining profile. Last year company expanded their recycling bussiness by purchasing the US metal recycling company Redlan.

With an 18% stake, the South African sovereign wealth fund is Sibanye’s largest shareholder, aligning the state’s interests with those of investors. Meaning the state profits from the company’s success without resorting to expropriation or special taxes.

Feb 23, 2024 – SBSW lays off ~2000 workers. One mine shaft was closed, two more have been re-positioned for lower cost structure, and a fourth remains open conditional on there being no net losses on a monthly basis.

So, at next Q report, if they are in red numbers, SBSW could make nice dip lower, where I will try to get some shares.

I think SBSW is worth looking into it, and doing some DD, if you believe industrial metals may be bottoming this or next year.

Fankers

P.s.

All graphic stolen from the i-net. 😉