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The World’s #2 Platinum Miner Could Lose Half Its Operations HereDave Forest Experts at Johnson Matthey said last month that platinum is likely to post a bigger-than-expected supply deficit for 2015. And news this week suggests that platinum production could be hit even harder than these observers are predicting. That comes from the world’s number three platinum-producing nation, Zimbabwe where the government is making a strong move against the world’s second-largest platinum mining firm, Impala Platinum. Local press reported Monday on statements from Impala’s Zimbabwe operating subsidiary, Zimplats, which noted that the company could be at risk of losing half of its land holdings in the country, following an edict from national authorities. Zimplats said that the firm received a letter from the government on December 28, requesting the release of 27,948 hectares within the firm’s mining license area — amounting to almost 50% of the total ground belonging to these operations. This matter actually dates back to March 2013 — when the Zimbabwe government had originally decreed that Zimplats’ lands should be returned to the state because they aren’t being fully utilized. Zimplats subsequently appealed the decision, with the issue then remaining unresolved over most of the past two years. But this latest news suggests the government has now decided to enforce the ruling — putting at least some of Zimplats’ operations here at risk. The company said it has reiterated its objections over the land grab to the government and is seeking “constructive dialogue” to resolve the issue. All of which makes it appear that Zimplats’ production could be in jeopardy. With this move likely to deal a major blow to any remaining investment confidence Impala management holds in Zimbabwe, even if the company’s mines are able to continue, following the loss of the acreage. Any reduction in output could be very significant for the market, given that Zimplats accounts for over half of Zimbabwe’s yearly production of 400,000 ounces of platinum and 320,000 ounces of palladium. Watch for more news on the resolution of this issue over the coming weeks. Here’s to a rock and a hard place, ### Dave Forest The information provided in this newsletter is based on the independent research of Dave Forest and is intended solely for informative purposes and is not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade any securities or commodities named herein. Information contained in this newsletter is obtained from sources believed to be reliable, but is in no way assured. All materials and related graphics provided in this newsletter and any other materials which are referenced herein are provided “as is” without warranty of any kind, either express or implied. No assurance of any kind is implied or possible where projections of future conditions are attempted. Readers using the information contained herein are solely responsible for verifying the accuracy thereof and for their own actions and investment decisions. Dave Forest does not make any representations about the suitability of the information delivered in this newsletter or any other materials that are referenced herein for any purpose whatsoever. The information contained in this newsletter does not constitute investment advice and Dave Forest is not registered with any securities regulatory authority to provide investment advice. Readers are cautioned to consult with a qualified registered securities adviser prior to making any investment decisions. The information contained in this newsletter has not been reviewed or authorized by any of the companies mentioned herein. To subscribe to Pierce Points please click here: www.piercepoints.com Copyright © 2016 Pierce Points 321gold Ltd |
