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Interesting moneyweek article interesting on platinum:

 

Click

 

Gold and Silver Investments Limited continue to be bullish on precious metals, and platinum in particular. Platinum has recently hit new record highs of $1,590 per ounce, along with gold.

 

Even though platinum has surpassed its 1980 high of $1,070 per ounce in nominal terms, it is still only some half the price of its inflation-adjusted high of $2,800 per ounce.

 

We believe this high will be reached in the next 5 to 8 years in this new supply/demand driven secular bull market…

 

But as well as being a store of wealth, its growing use in industry, such as its presence diesel catalytic converters means it has the same double play as silver. Couple this with its limited supply and it may turn our to be a good bet for the future.

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There are so few platinum companies that if one discovers a resource they can really fly.

 

Platinum Australia, Sylvania and Platmin are all examples of this.

 

I'm hoping Beartooth will do the same.

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There are so few platinum companies that if one discovers a resource they can really fly.

 

Platinum Australia, Sylvania and Platmin are all examples of this.

 

I'm hoping Beartooth will do the same.

 

Read about platmin and their prospects on short note in I.C. Got them marked to watch, but who are beartooth, not heard of them. Any more info links you can pass on please No6?

 

Riggers

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Read about platmin and their prospects on short note in I.C. Got them marked to watch, but who are beartooth, not heard of them. Any more info links you can pass on please No6?

 

Riggers

 

Now here's a find. A fund that is heavily into Platinum, which given it's in a bull run, with a wide holding of stocks this ought to outperform.....surely?

 

http://www.mineweb.com/mineweb/view/minewe...2&sn=Detail

 

The fund also highlights the expectancy for sector consolidation.

 

Riggers

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Hello, I was invested in Ridge Mining for a while

LSE:RDG

 

looking for another near-term junior-producer too.

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Hello, I was invested in Ridge Mining for a while

LSE:RDG

 

looking for another near-term junior-producer too.

 

I studied Ridge Mining for a while some months ago, but they wouldn't send me their feasibility study (it had not been made public). I'm not sure what they have to hide. It's unlikely the big fund from China made that big investment without getting a copy of the feasibility study, and I don't like having less information. Canadian companies don't get away with that stuff. I took a pass on Ridge, although it looked like they had good assets.

 

A trusted friend of mine likes Eastern Platinum, but I think they've already had a big run in the share price.

 

Let me know if you find a junior producer or near-term producer.

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Struggling to get my head round this and sometimes wish some of you metals boffins would answer my odd question.

 

Researching this sector, everything points to high prices, yet as the article suggests, stocks massively underperforming.

 

http://www.mineweb.com/mineweb/view/minewe...4&sn=Detail

 

Why is this sectors miners regardless of sixe,listing country or stage of production all suffering negative performance, when there appears a shortage of platinum and the price is at record highs?

What's held these back, the same doesn't seem to apply to gold stocks?

 

Riggers

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Why is this sectors miners regardless of sixe,listing country or stage of production all suffering negative performance, when there appears a shortage of platinum and the price is at record highs?

What's held these back, the same doesn't seem to apply to gold stocks?

 

Good questions, but it's not just platinum stocks. Base metals miners/explorers and many gold juniors are also trading well off of their highs despite high commodity prices. See Frizzer's recent thread regarding why juniors haven't responded yet to gold price for potential reasons.

 

That being said, I think you are asking the right questions. I'm going to take a look at Stillwater again this weekend. It seems to have fallen to an important support level this past week. Let me do a little research on fundamentals and report back.

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Notes on Stillwater:

* In general, Stillwater looks like a good buy if one expects platinum to maintain current high levels.

* They have plenty of proven/probable reserves at decent grades. Current market cap is about $33/oz of P&P PGMs (80% of which is palladium.)

* Stillwater is highly leveraged to PGM prices, and specifically palladium. Platinum is only 20% of production.

* They have some hedges in place (at $1035/oz) on ~1/3 of platinum production between Oct 07 and June 08. Some of the loss was already taken last quarter. I suspect there will be another $5-10MM hedging loss taken for Q407.

* They have the assets in place to make a lot of money, but they are a high cost miner and thus highly leveraged to the commodity price. My model indicates that constant platinum price of $1350 and Palladium of $300 would support the current market price. Platinum at $1500 and Palladium at $360 (constant over time) doubles the intrinsic value.

* They should cash flow around $2/share in 08 (at current prices) which could support a $20 share price.

 

I'd like to compare to other PGM producers, and research supply/demand fundamentals of palladium market, prior to reaching a conclusion on this one.

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Thanks, Ace.

 

For near-term producers I would recommend taking a look at Platinum Australia. (UK:PLAA; AU:PLA).

 

They will be in production this summer 2008 from their Bushvelt site, while their other less developed Kalplats properties give multi-bagger potential without a move in platinum. I stress 'potential'.

 

This has been a near 3-bagger for me and one that I see no reason to sell yet as I have been unable to find a better platinum company that's cheap. It is my largest platinum holding.

 

Beartooth Platinum (CA:BTP) are more of a grass roots explorer with properties in North America and South Africa. They have results out any day now. There are many of us who have been waiting for a long time for these results and there has been much speculation as to what they will be. Beartooth have known most of their results for some time bt have not released any as they are waiting for the rhodium results before they make an announcement as they want to present a complete picture. Some of us think the results are dreadful and they haven't made an announcement as they are hoping for some good news to offset the bad. Some of us think the results are mega. One Ashely James think they may have Dunnite pipes which basically means the company will multi-bag. But none of us really know anything. The inference from the company is positive but they have given nothing away and you can read into that how you like. I bought in the summer at 11c in a placement when the company was about 15c. They are now 9c. Any investment is a gamble, but at 9c it's quite a cheap gamble and you shouldn't have to wait too long before you find out if the gamble is successful.

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Thanks, Ace.

 

For near-term producers I would recommend taking a look at Platinum Australia. (UK:PLAA; AU:PLA).

 

They will be in production this summer 2008 from their Bushvelt site, while their other less developed Kalplats properties give multi-bagger potential without a move in platinum. I stress 'potential'.

 

This has been a near 3-bagger for me and one that I see no reason to sell yet as I have been unable to find a better platinum company that's cheap. It is my largest platinum holding.

 

Beartooth Platinum (CA:BTP) are more of a grass roots explorer with properties in North America and South Africa. They have results out any day now. There are many of us who have been waiting for a long time for these results and there has been much speculation as to what they will be. Beartooth have known most of their results for some time bt have not released any as they are waiting for the rhodium results before they make an announcement as they want to present a complete picture. Some of us think the results are dreadful and they haven't made an announcement as they are hoping for some good news to offset the bad. Some of us think the results are mega. One Ashely James think they may have Dunnite pipes which basically means the company will multi-bag. But none of us really know anything. The inference from the company is positive but they have given nothing away and you can read into that how you like. I bought in the summer at 11c in a placement when the company was about 15c. They are now 9c. Any investment is a gamble, but at 9c it's quite a cheap gamble and you shouldn't have to wait too long before you find out if the gamble is successful.

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I agree with Frizers re Platinum Australia. I think they are a great bet for this year.

 

My favourite however is Sylvania (SLV) AIM.

Sylvania are in a more advanced position. They are already producing PGMs from their Chrome tailings retreatment plants. They have two up and running and two others under construction. They should all be up and running by the end of the year. They are already ahead of production schedule producing over 1,000 pgm oz a month at very low cost and a very high basket price. The reason for the high basket price ( $1,775 and that was for the quarter ending 30/9/07) is that the dumps contain high amounts of Rhodium. One plant has cash costs of $378 an oz and the other $348. Find me another producer with costs that low! The bit I really like is that you have no risk as they are not exploring -just extracting from the tailings. Almost a license tto print money. They recently raised a load of cash at a much higher share price as they are carefully looking for suitable acquisitions. They have already made one small invstment in an Australian explorer.

They also have a joint project at Everest North together with AQP. The results of the feasability study are due any time now and I would expect them to be very positive knowing Sylvania's management and track record. This is one junior that is about to become a senior and is not on many peoples' radar.

I have met the management and am suitably impressed. I am also impressed that Ed Nealon of AQP fame is also a large shareholder and was until recently a Director.

So in conclusion , great management, lots of cash and soon to be making some big profits from their Chrome tailings plants. Market cap at today's bashed price about $170mln. Very cheap for such a low cost producer.

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Yep - and you can pick up Platinum Australia for nowt today too!

 

More to the point it looks to be operating in a more stable environment. It seems the opportunities and decisions to select shares are narrowing at the moment.

 

http://www.resourceinvestor.com/pebble.asp?relid=39829

 

Certainly seems South(Southern even) Africa might not be the place to invest, but is doing wonders for the Platinum price.

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Yes, I'm worried about South Africa with this week's events ...

 

Frizzers

 

Looking around, i've just spoted Magnum, which appears to be an off-shoot of Slyvania and Dwyka.

 

They are a palladium play to(sorry if slightly off topic), but the price of this is fairly low, but comments on abound it could bounce. Hence my interest. Don't hold, but seriously looking at it for my first none uk play.

 

Any thoughts on this resource or company?

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I thought Magnum was a uranium play - do you ave a ticker?

 

Palladium is cheap compared to tother metals imo

 

Sorry Frizzers, read a post elsewhere, got it a bit wrong, actually in Tantalum. They are an off-shoot, but i looked for a web site myself and found it.

 

http://www.mmel.com.au/

 

Still looks of interest, comment if you wish, but going to find more info myself.

 

Riggers

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Sorry Frizzers, read a post elsewhere, got it a bit wrong, actually in Tantalum. They are an off-shoot, but i looked for a web site myself and found it.

 

http://www.mmel.com.au/

 

Still looks of interest, comment if you wish, but going to find more info myself.

 

Riggers

I have a decent holding in Magnum. rumours are they are close to doing a deal re Tantalum. The guy who runs it ( Grant Button) I have met last year and he was then Finance director of Sylvannia.... One of the reasons I bought in. As My last post above shows the connection between Magnum, Sylvania, Dwyka and more importantly AQP. I have great faith in the management. They have delivered the goods and I dont think it will be too long before they float Magnum in London, but we will need some news first. This share is a punt at the moment but I believe in time patience will be well rewarded.

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My favourite however is Sylvania (SLV) AIM.

Sylvania are in a more advanced position. They are already producing PGMs from their Chrome tailings retreatment plants. They have two up and running and two others under construction. They should all be up and running by the end of the year. They are already ahead of production schedule producing over 1,000 pgm oz a month at very low cost and a very high basket price. The reason for the high basket price ( $1,775 and that was for the quarter ending 30/9/07) is that the dumps contain high amounts of Rhodium. One plant has cash costs of $378 an oz and the other $348. Find me another producer with costs that low! The bit I really like is that you have no risk as they are not exploring -just extracting from the tailings. Almost a license tto print money. They recently raised a load of cash at a much higher share price as they are carefully looking for suitable acquisitions. They have already made one small invstment in an Australian explorer.

They also have a joint project at Everest North together with AQP. The results of the feasability study are due any time now and I would expect them to be very positive knowing Sylvania's management and track record. This is one junior that is about to become a senior and is not on many peoples' radar.

I have met the management and am suitably impressed. I am also impressed that Ed Nealon of AQP fame is also a large shareholder and was until recently a Director.

So in conclusion , great management, lots of cash and soon to be making some big profits from their Chrome tailings plants. Market cap at today's bashed price about $170mln. Very cheap for such a low cost producer.

 

Well these babies are flying today 117-120p I wonder what is in the wind ?? You could have bought them at 86p at the lows last week, I did add at 97p and 102p. News due any day now and I suspect it might be very good. Therer was a rumour they have acquired a massive new tailings agreement. Money for old rope !

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Sorry Frizzers, read a post elsewhere, got it a bit wrong, actually in Tantalum. They are an off-shoot, but i looked for a web site myself and found it.

 

http://www.mmel.com.au/

 

Still looks of interest, comment if you wish, but going to find more info myself.

 

Riggers

 

 

Magnum? Take a look at my ADVFN thread - has been a bit lonely there

 

Magnum - Sylvania and Dwyka's Baby Sister ASX:MGU (MGU)

 

http://www.advfn.com/cmn/fbb/thread.php3?id=14923690

 

Why some people don't get in now at around 20 cents and they prefer to wait till this comes to London (planned) at much higher prices beats me!

 

jaguar2001/ smilewithme

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Magnum? Take a look at my ADVFN thread - has been a bit lonely there

 

Magnum - Sylvania and Dwyka's Baby Sister ASX:MGU (MGU)

 

http://www.advfn.com/cmn/fbb/thread.php3?id=14923690

 

Why some people don't get in now at around 20 cents and they prefer to wait till this comes to London (planned) at much higher prices beats me!

 

jaguar2001/ smilewithme

 

 

Hi Jaguar,

 

Had already read it, very lively debate, so many posts. L.O.L

 

Will keep my eye on it for information

 

Thanks for reference though, will no doubt help others form an opinion.

 

Riggers

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Riggers,

 

MGU is basically a shell that the SLV/DWY team will reverse deals into.

 

When I invested, no one could tell me anything about the company!

 

They did not even have a web site.

 

But the big boys are on board there and these guys like their reputations.

 

Management is excited ----

 

Good luck

 

jaguar2001

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Riggers,

 

MGU is basically a shell that the SLV/DWY team will reverse deals into.

 

When I invested, no one could tell me anything about the company!

 

They did not even have a web site.

 

But the big boys are on board there and these guys like their reputations.

 

Management is excited ----

 

Good luck

 

jaguar2001

 

Appreciate that Jaguar. If you can spot shares in their infancy like that, i reckon others would welcome your comments on here more often.

 

Riggers

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