Picture: 123RF/ALEX MX
Picture: 123RF/ALEX MX

It’s been a blisteringly red hot run for the country’s platinum group metals (PGM) miners. It’s worth repeating the recent earnings numbers.

Amplats reported a record earnings before interest, taxes, depreciation, and amortisation (ebitda) of R41.6bn; Sibanye-Stillwater’s ebitda increased 230% year on year to more than R49bn; Impala Platinum’s ebitda rose 231% to just over R25bn. Even Royal Bafokeng Platinum, which listed on the JSE 10 years ago and was the first community company to do so, rewarded shareholders with a maiden R1.5bn dividend during the 12 months ended December 2020 on the significant growth in its cash flows.

Over 12 months, the FTSE/JSE Africa platinum mining index is up an eye-watering 226% as of Wednesday’s close thanks to surging prices for palladium and rhodium, dug up with platinum and used in vehicle catalytic converters.

The question on investors lips is how long this can last. Michael Avery speaks to René Hochreiter, mining analyst at Noah Capital Markets; and David Holland of Fractal Value Advisors and adjunct professor at the University of Cape Town Business School.

Michael Avery talks to a panel about how long the surge in palladium and rhodium prices might last

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