Platinum hits 4-month peak, palladium rockets to 16-month high

ICE, ICE baby

The platinum price hit a four-month high on Monday, adding $10 to $1,709 an ounce in New York while sister metal palladium added more than 1% to $766 an ounce.

Platinum is up over 10.6% so far this year and palladium has added 9% in value in 2013 and is now trading at the highest since September 2011.

The latest jump came after reports of a surge in automobile sales in the US.

Platinum and palladium are used in catalytic converters in cars and trucks to reduce emissions.

What is really driving the PGM market however is supply; which unlike other precious metals is highly concentrated.


South Africa produces more than 75% of the global supply, while most of the remainder comes from Russia.

The South African platinum industry has been lurching from crisis to crisis since a massacre in August last year on a platinum mine owned by Lonmin.

Strikes and rocketing costs recently forced no. 1 platinum miner Amplats to announce massive layoffs and closure of mines.

Russia holds a stockpile of palladium which it feeds into or withholds from the market to steer prices higher, but many observers now believe  that stockpile has been depleted or is near to depletion.

Image by EvrenKalinbacak / Shutterstock.com

525 0
Latest Stories

Vedanta announces record Q4 aluminium production

Indian-focused miner Vedanta Plc (VED.L: Quote) saw record aluminium production in its fourth quarter and a 29 percent jump in refined zinc from its Indian operations, helping it take advantage of rising metal prices.

Rio Tinto shines anew in India

Australian mining giant Rio Tinto has received the green signal to undertake mining activities in India, with the Orissa government granting a proposal for a fresh agreement on Thursday, April 7. State-run Orissa Minerals Development Company (OMDC), a part of the Bird Group of Companies under the Indian government's ministry of steel had been in discussions with the world's biggest mining company, Rio Tinto, for a joint venture in the state for some time now.

Orocobre Limited: first battery grade lithium carbonate produced from Salar de Olaroz

Orocobre Limited (TSX:ORL)(ASX:ORE) is pleased to report that it has produced battery grade lithium carbonate from Salar de Olaroz brines. Orocobre's analysis shows that the lithium carbonate is of greater than 99.9% purity* and of higher purity than the specifications for battery grade material sold by existing producers. This material was produced by refining a lower purity product previously produced at the company's facilities at Olaroz with recirculated brines. As such, the Company considers the material to be representative of what could be expected in commercial production.

SIGN UP FOR OUR DAILY NEWSLETTER

Azure Minerals signs $13M copper exploration joint venture with Japanese state company

Azure Minerals, a Mexico-focused precious and base metals explorer, said today it has entered into an agreement to form a joint venture with a Japanese state-owned corporation to explore the El Tecolote Project in Sonora, Mexico. According to the press release, Japan, Oil, Gas and Metals National Corporation (JOGMEC), a Japanese state-owned entity, will spend $US5 million over three years, in order to earn a 51% interest in El Tecolote. The company can earn another 19% stake by spending a further $8 million, which would take its total equity in the project to 70%.

Molycorp up 10 percent after congressman introduces rare earth legislation

U.S. Rep. Mike Coffman's rare earth legislation may have lit a fire under Molycorp's stock price, which rose 10.3% on Thursday trading. Coffman, Republican congressman representing Colarado, introduced legislation on Wednesday calling for a variety of measures that would better ensure that the United States has secure access to rare earth metals. Molycorp stock finished Thursday at $68.45. The stock's 52-week range is $12.10 to $68.79.

Premier Gold Mines triples gold resource at Hardrock Project

Toronto-listed Premier Gold Mines has nearly tripled gold resources at its 70%-owned Hardrock Project in northwestern Ontario, Canada. An updated NI 43-101 report by Micon International Limited shows a 269% increase in measured and indicated resources to 2.5 million ounces, and a 164% increase in inferred resources to 1.1 million ounces.

Northern Star transforms one of Australia’s gold mining ugly ducklings

The mid-tier gold miner Northern Star Resources (ASX: NST) confirmed today that it had achieved A$11 million (US$11.53 million) in revenue in March from the Paulsens gold mine in the Pilbara region while incurring operating costs of about A$5 million (US$5.24 million). The operation produced 8,583 ounces of gold last month and sold 7,897 oz.