[miningmx.com] – THE steep decline in the platinum price, down nearly 10% this year and approaching six-year lows, could see more than two-thirds of South African producers of the metal losing money, said Reuters citing analysts.
“(Platinum is) still firmly in a bear market, with little evidence of a bottom as yet,” independent technical analyst Cliff Green said last week. He added that platinum was more likely to edge to $1,000/oz and then $950/oz than move upwards.
“Half of the industry, including major producers such as Lonmin, is cash-flow negative and if platinum slides below $1,000/oz nearly two thirds of the industry could be underwater,” said Cape Town-based Investec fund manager Hanre Rossouw.
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