Australia

Details

  • Industry: Energy & Natural Resources, Energy & Mining Services, Mining
  • Type: Business and industry issue, Regulatory update
  • Date: 5/10/2012

Commodity Insights Bulletins

Commodity Insights Bulletin
KPMG's series of quarterly global bulletins provides insight into trends, issues and changes within the key mining commodity sectors.

Platinum Insights: Q2 2012 

KPMG's Global Commodity Insights Bulletin on platinum provides an overview of recent global events and outlook for that commodity, details of major developments and projects, and recent regulatory changes.
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Key insights

  • A combination of reduced demand, an oversupply of platinum inventory and increasing mining inflation continues to place significant margin pressure on the industry.
  • The industry has reached a point where transformational change in its operating model and environment is required to counter the impact of these challenges and to restore the industry to a sustainable level of return on investment.
  • To address the high cost base there is a need for substantial improvement in labour productivity which remains at the heart of the problem.
  • This operating model and cost base adjustment will come with a once off cost but will essentially provide a solid platform for protecting and sustainably growing the PGM industry into the future.
  • Platinum prices are expected to average US$1,661/oz in 2012, and then increase to US$1,787/oz in 2013 and US$1,940/oz in 2014.
  • Palladium prices are expected to average US$726/oz in 2012 and then increase to US$797/oz in 2013 and US$874/oz in 2014.
 

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