Platinum shares up after favourable ratingComment on this story
Shares of Anglo Platinum and Impala Platinum jump as brokerage Nomura lifts its ratings of the world's biggest platinum producers where months of industrial action is seen pinching global supply of the metal.
A wildcat strike at Lonmin in August sparked a series of protests across the entire mining industry and led to the loss of more than 50 lives.
Platinum producers lost some 350,000 ounces of output over the course of those strikes, which ended this month when Amplats' workers agreed to resume work after a once-off payment of 4,500 rand and monthly increases of atleast 400 rand.
“With the reduced cumulative surplus, and with a restored investment narrative in the face of uncertain future supply from South Africa, the market is likely to become demand driven in early 2013 as metal availability dips,” Nomura says in its research report released on Monday.
Implats is up 2.8 percent at 146.83 rand after Nomura raised it to “buy” from “reduce”, while Amplats is 3 percent stronger at 380.96 rand with its rating improved to “neutral” from “reduce”. Johannesburg-listed shares of Lonmin gains over 4.4 percent to 69.49 rand. - Reuters