[miningmx.com] — IMPALA Platinum expects to produce 1.82 million ounces of platinum in its financial year that ends in June, down slightly from an original target of 1.85 million, its chief executive said on Tuesday.
David Brown, the CEO of the world’s second biggest producer of the metal, also told Reuters Insider in London that he saw the platinum price at year end at between $1,750 and $1,800 an ounce.
“By year end … we should see prices maintain round about these levels. Platinum I think will be somewhere around $1,750 to 1,800 level and I think palladium will probably be between $700 to $800 an ounce,” he said.
“Palladium still has more upside. There are two factors that are impacting on the palladium equation. The Russian stockpiles are significantly reduced compared to previous years, that means supply will be slightly lower, and certainly the demand fundamentals are very, very strong, particularly in Asia.”
Brown also addressed the issue of political risk in Zimbabwe, where Implats’ unit Zimplats is responsible for around nine percent of group production.
The government there wants foreign mining houses to surrender 51% of their local equity to black investors in the country.
“We certainly have no opposition to the principle of indigenization … but having said that, what we are opposed to is the 51%. We just don’t believe a 51% equity stake adequately reflects the risk/reward equation,” he said.
Brown was in London for Platinum Week, an annual gathering of analysts, miners, refiners and other industry participants.
