Technical picture is weakening: Platinum price analysis

It produces platinum, palladium, rhodium, ruthenium, iridium, and osmium, as well as gold, nickel, copper, cobalt sulphate, sodium sulphate, and chrome. The company was formerly known as Anglo Platinum Ltd. and changed its name to Anglo American Platinum Limited in May 2011. The company was incorporated in 1946 and is headquartered in Johannesburg, South Africa. Anglo American Platinum Limited operates as a subsidiary of Anglo American South Africa Investments Proprietary Limited. Norilsk, the second biggest producer of PGMs but the biggest single producer of palladium, has also hinted at reduced sales in 2023. We think there is likely to be lower demand in the near term because of global recessionary fears, which reduces our price forecasts.

  • As you can see, ratings vary from company to company, so there is a lot of homework to do before buying.
  • And they were up 4.2% in the last year, and that’s actually a deceleration from previous months.
  • The precious metal is widely used in catalytic converters by the car industry.

Palladium (Pd) is a soft silvery-white metal, one of the platinum group metals (PGMs) along with platinum, ruthenium, rhodium, osmium and iridium. It is dense, stable and rare. Quinn indicated that, “One fertilizer was just slightly higher in price compared to last month. Urea had an average price of $573/ton.

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The price plummeted to roughly the same levels as at the early stages of the pandemic. To be more specific, after hitting a record high of around $3,018 an ounce in April 2021, it fell down to around $1,800 in May. Metals Focus, an independent precious metals research consultancy, expects demand to “grow by 20% y/y in 2022, boosted primarily by rising heavy-duty diesel loadings, predominantly in Asia”. 79.1% of retail investor accounts lose money when trading CFDs with this provider. In the medium term, we expect revenue to decline as ROM ore and historical tailings dump revenue fall and the company becomes more dependent on current arisings and ROM sources.

Platinum price prediction for July 2026. At the end of the month 1371, change for July 6.2%. Platinum price prediction for May 2026. At the end of the month 1275, change for May -0.3%. Platinum price prediction for March 2026.

Sylvania has stated that it will provide an update on the exploration assets in early FY24. Crucially, this will be a combined valuation of the more advanced (Volspruit) and less advanced (La Pucella and Hacra) assets and will include rhodium if it is JORC compliant at that stage. We note that our current illustrative exploration upside value of 73p/share includes rhodium. The company’s end-June 2022 book value of 13.9p/share ($46m) purely relates to the North Limb and excluded rhodium (which was, at that point, only an inferred asset). We have increased our valuation of Sylvania’s producing assets to 186.9p/share from 179p/share. This takes into account our updated PGM price forecast, exchange rate moves and our estimate revisions to incorporate Q2 FY23 results, company production guidance and the end-December balance sheet.

Our Sylvania forecasts are discussed on page 15. We note that our near-term EPS forecasts are driven primarily by our PGM price outlook and we have reduced EPS estimates by what is orbex 7.0% for FY23, 13.8% for FY24 and 5.7% for FY25. Russia’s Norilsk mine has guided a 10% cut in production in 2023 for scheduled maintenance of plant and equipment reasons.

The longer-term cash flow impact of our post FY26 PGM price forecasts has the effect of increasing the valuation of Sylvania as our DDM discounts the dividends to FY40. The effect of the lower dividends (and EPS) in the next three years is therefore countered by the higher available cash flow for dividends over the 14 years following FY26. South Africa supplies around 75% of the world’s platinum, 43% of its palladium and 82% of its rhodium. Any decrease in the supply of platinum and rhodium would result in upward pressure on their prices.

This translates to a 24% increase since January of 2021. This week, we received hotter-than-expected inflation data. Both Wednesday’s Producer Price Index and yesterday’s Consumer Price Index came in above expectations. Overall, Capital Economics projected the palladium market to remain in a small deficit into 2024. Palladium’s mine supply is looking to be subdued, with most of the large palladium miners publishing downbeat production guidance for 2022.

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The CPI has been rising every month since January. The index measures what consumers pay for goods and services, including clothes, groceries, restaurant meals, recreational activities and vehicles. A deficit of that size equiti forex broker would be the largest on record, and in a conversation with the Investing News Network, Edward Sterck, director of research at the WPIC, shared details on the demand- and supply-side factors driving the shortfall.

SLP may go ahead with developing its exploration projects, which will entail large capex, but the decision is has not yet been made. Adding 5–6% rhodium ounces to the basket would not entail additional capex. Total productive costs were 9.5% higher than we forecast because of the higher production rate compared to our forecast.

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1 analysts have issued 1 year price objectives for Anglo American Platinum’s stock. Their AGPPF share price forecasts range from $41.00 to $41.00. On average, they expect the company’s share price to reach $41.00 in the next year. This suggests a possible upside of 14.7% from the stock’s current price. View analysts price targets for AGPPF or view top-rated stocks among Wall Street analysts. Therefore, the performance of USD/ZAR is also a variable to keep an eye on to draft further platinum price forecasts.

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The value of shares and ETFs bought through a share dealing account can fall as well as rise, which could mean getting back less than you originally put in. “The new rules have added to the cost of vehicles and, as has been the case prior to the introduction of previous standards, customers purchased new trucks ahead of the change,” said Heraeus. Data from CAAM says that commercial vehicle sales fell by 2.5% year-on-year to 4.1 million units in January to October in 2021.

Any forward-looking statements and projections in this article do not guarantee future palladium prices. They were made by various sources and market analysts and are given for educational use only. Please do your own analysis and be aware of risks. Based on a set of six key metrics, the company’s dividend policy implies the total dividend per share will be able to grow in nominal terms, with no explicit targets around the pay-out ratio.

Anglo American Platinum MarketRank™ Forecast

View AGPPF analyst ratings or view top-rated stocks. The price of platinum has surged above its pre-pandemic highs since 2021 started, as the imbalance between demand and supply levels has kept the post-pandemic bull run going. For scalping: an introduction more palladium news and other great reports on the industry, check out other great articles at IPM, including How Much Is A Gold American Eagle Coin Worth, Investing In US Mint Coins, & The Most Valuable Coins In Circulation.

At the end of the month 1511, change for February -0.7%. Platinum price forecast for December 2024. At the end of the month 1604, change for December 6.2%. Platinum price forecast for October 2024.