Platinum Group Metals (PGMs) are proving to be market darlings: In the last 12 months platinum prices have soared by 30%, palladium prices have doubled, and rhodium has quadrupled. Tim Acker, equity analyst at Allan Gray, speaking on the sidelines of the Mining Indaba in Cape Town yesterday, said that if current prices hold, platinum can significantly boost the SA economy.
“SA platinum producers are currently getting revenue of double what they were getting 12 months ago, an increase of R100bn. R100bn is roughly 2% of the Gross Domestic Product (GDP),” said Acker, adding that a 2% move in a product that is exported can be a huge positive in an economy that is predicted to only grow by 0.9% in 2020, as per data released by the World Bank.
Jubilee Metals Group plc (LON:JLP) is a diversified metals recovery company, they secured surface platinum-bearing tailings to recover PGMs and chromite, lead, zinc and vanadium bearing tailings in Zambia and holds the mining right to a primary PGM project in the Eastern Bushveld complex.