Platinum stocks top performers in 2009

Svetlana Doneva | Mon, 28 Dec 2009 09:54

[miningmx.com] -- ALTHOUGH battered by metal price volatility, it was the platinum stocks that performed among the best on the JSE in 2009, according to data provided by McGregor BFA. Exploration stocks also performed well.

Shares in Northam Platinum rose 134.47% during the year (January 2 to Decemb er 23) and Jubilee Platinum shares jumped 123.75%, after the platinum metal market recovered some of the losses of the past year.

Meanwhile, exploration company African Eagle was the top performer overall in 2009, soaring some 160%.

The company, which has interests in nickel, copper and gold, revised its strategy early this year in order to weather the tougher commodity market.

Other exploration companies that outperformed over the past year were Firestone Energy (up 131.25%) and Pan African Resources (up 117.76%). Shares worth under R1 were not included in Miningmx's survey.

But it was diamond miners that dominated the list of the worst performing JSE-listed resources stocks over the past year.

The global diamond market suffered major declines in 2009, particularly in the first half, as the economic downturn resulted in low demand coupled with falling rough diamond prices.

Diamondcorp, BRC Diamondcore and Kimberley Consolidated Mining were among the five biggest losers of the resources sector in 2009.

Diamondcorp fell 63.75% during the year, BRC Diamondcore dropped 71.07% and Kimberley Consolidated Mining [KCM] registered the biggest annual drop in the sector - 73.91%.

KCM battled a host of demons during the year. The company was suspended on the JSE in August after failing to publish its audited statements for the year to end-February.

Its CEO, Hein le Riche, resigned a few days later, which raised further concern about the company's prospects among shareholders.

KCM later announced that it was operating under a mandate to find resource opportunties for the the China National Geological and Mining Company in South Africa.

Another major underperformer of the year was the malaised junior gold miner Pamodzi Gold, which was placed placed under final liquidation in October this year.

Pamodzi had accumulated R1.5bn worth of debt and was forced to sell off its assets after failing to find sufficient financing. Pamodzi's shareprice fell 64.29% during the year.