South African platinum group metals (PGM) miners soared on the JSE on Friday, with Impala Platinum (Implats), Sibanye-Stillwater, Northam Platinum and Anglo American Platinum (Amplats) among the top five risers for the day.
Implats was the biggest riser, surging by nearly 12% on the JSE on Friday to R86.52 per share and extending its 14.2% surge over the past seven days.
PGM and gold producer, Sibanye-Stillwater, which on Thursday reported strong balance sheet improvements, and allayed investor concerns over a potential rights issue, closed the day’s session 11.6% higher at R17.28 per share, while it has been 7.33% stronger in the preceding seven days.
World platinum prices strengthened nearly 7% over the past five days to about $1 000 per ounce, while palladium prices have somewhat recovered to post an 18.1% rally over the same period to $1 073 per ounce.
“Good news for our PGMs. Palladium is at $1 050 – now above both the 200 day average and the 50 week,” JSE market watcher, Karin Richards posted on X on Friday.
“Platinum is lagging – needs to get decisively above its old nemesis: The 200 week average at $1 000.”
Amplats traded 6.2% higher on the JSE on Friday at R568.10 per share, although it was 5.14% and 11.45% weaker over the past seven and 30 days comparative period respectively. Anglo American last week initiated a R7 billion book build disposal of shares in the South African PGM miner ahead of a planned demerger.
Another SA PGM producer, Northam Platinum also finished off last week’s trade session on the JSE stronger, closing 6.8% firmer on Friday at R100.77 per share, while DRDGold, Pan African Resources and Harmony Gold completed the JSE’s top 10 best movers list.
Analysts have said that Pan African Resources was poised for strong cash generation on the back of an expected ramp-up in production. This would likely boost profitability in the company, while Harmony Gold, banking on expected continued stability in the SA operating environment under the Government of National Unity, is also geared to spend more on raising output.
This strengthened the resources index on the JSE by 2.92%, and contributed to the all share index’s 0.38% firming.
Despite projections of elevated mineral output and a boost from increased electricity availability, South African miners are still battling logistical constraints and higher energy costs.
Mining executives have, however, noted progress in resolving the mining sector’s operational constraints, which include rail and port logistics logjams, as well as higher costs, such as for electricity.
Some executives expect these constraints to be resolved in the next two years. However, while gold prices have soared, PGM miners such as Sibanye-Stillwater are still holding a dim outlook for metals such as palladium, while they are having to restructure through lay-offs and capital delays to manage costs.
BUSINESS REPORT