Precious Metals Report 2020 - Everything you need to know about gold, silver, platinum and palladium! - Swiss Resource Capital
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Precious Metals Report 2020
Everything you need to know about gold, silver, platinum and palladium!
Swiss Resource Capital AG | Poststrasse 1 | 9100 Herisau | Schweiz
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Swiss Resource Capital AG and the authors of in the small and micro cap sector and especially to time of preparation. Swiss Resource Capital AG - depending on the investment – to further obliga- mes and supports the journalistic principles of con- inaccuracy of the mineral reserve and mineral re-
the Swiss Resource Capital AG directly own and/ exploration and resource companies which are dis- and all Swiss Resource Capital AG employed or en- tions for example additional payment liabilities. Any duct and recommendations of the German press source estimates, fluctuations of the gold price,
or indirectly own shares of following Companies cussed in the publications of Swiss Resource Capi- gaged persons have worked for the preparation of investment in warrants, leveraged certificates or council for the economic and financial market repor- risks and dangers in connection with mineral explo-
which are described in this publication: Amex tal AG and are exclusively suitable for speculative all of the published contents with the greatest pos- other financial products bears an extremely high ting and within the scope of its responsibility will ration, development and mining, risks regarding the
Exploration, Barrian Mining, Caledonia Mining, and risk aware investors. But it applies to all other sible diligence to guarantee that the used and un- risk. Due to political, economical or other changes look out that these principles and recommendations creditworthiness or the financial situation of the
Cardinal Resources, Discovery Metals, Endea- securities as well. Every exchange participant tra- derlying data as well as facts are complete and ac- significant stock price losses can arise and in the are respected by employees, authors and editors. supplier, the refineries and other parties that are
vour Silver, First Majestic Silver, GoldMining, des at his own risk. The information in the publica- curate and the used estimates and made forecasts worst case a total loss of the invested capital and - doing business with the company; the insufficient
MAG Silver, Osino Resources, TerraX Minerals. tions of Swiss Resource Capital AG do not replace are realistic. Therefore, liability is categorically depending on the investment – to further obligations insurance coverage or the failure to receive insuran-
an on individual needs geared professional invest- precluded for pecuniary losses which could poten- for example additional payment liabilities. Any liabi- Forward-looking Information ce coverage to cover these risks and dangers, the
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nies which are mentioned in this publication: will neither guarantee nor assume liability for actua- ruled out by Swiss Resource Capital AG and the re- Swiss Resource Capital AG especially in (transla- indigenous population; political risks; the availabili-
Caledonia Mining, Discovery Metals, Endeavour lity, correctness, mistakes, accuracy, complete- All information published in publications of Swiss spective authors. Between the readers as well as the ted) press releases that are not historical facts are ty and rising costs in connection with the mining
Silver, GoldMining, MAG Silver und TerraX Mine- ness, adequacy or quality of the presented informa- Resource Capital AG reflects the opinion of the res- subscribers and the authors as well as Swiss Re- forward-looking information within the meaning of contributions and workforce; the speculative nature
rals. tion. For pecuniary losses resulting from invest- pective author or third parties at the time of repara- source Capital AG no consultancy agreement is clo- applicable securities laws. They contain risks and of mineral exploration and development including
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mentioned in this publication: Amex Exploration, Capital Resource AG nor by the respective author information is subject to change. Swiss Resource company but not to the investment decision. Publi- and opinions. Forward-looking information can of- financial situation, current results of the current ex-
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Imprint
Table of Contents
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Preface09
Gold, silver and palladium mark a turnaround in precious metals –
platinum in a luring state ...............................................................................10
Guest Article by Prof. Dr. Torsten Dennin
Global debt and the increasing loss of confidence Editor
in the stability of the financial system: Why investors should consider Swiss Resource Capital AG
precious metals in their long-term asset strategy.������������������������������������������� 22 Poststr. 1
9100 Herisau, Schweiz
Interview with Prof. Dr. Torsten Dennin Tel : +41 71 354 8501
Founder and CEO of Lynkeus Capital LLC������������������������������������������������������ 25 Fax : +41 71 560 4271
info@resource-capital.ch
www.resource-capital.ch
Company profiles Editorial staff
Jochen Staiger
Amex Exploration��������������������������������������������������������������������������������������������� 30 Tim Rödel
Barrian Mining�������������������������������������������������������������������������������������������������� 34 Layout/Design
Frauke Deutsch
Caledonia Mining ��������������������������������������������������������������������������������������������� 38
All rights reserved. Reprinting
Watch Management & Expert Interviews, Site-Visit-Videos, Cardinal Resources������������������������������������������������������������������������������������������ 42 material by copying in electronic
News Shows and receive top and up to date form is not permitted.
Discovery Metals ��������������������������������������������������������������������������������������������� 46
Mining Information on your mobile device worldwide! Editorial Deadline: 10/01/2019
Endeavour Silver���������������������������������������������������������������������������������������������� 50
Amazing features: First Majestic Silver������������������������������������������������������������������������������������������ 54
All images and graphics are, unless
• Company Facts GoldMining ������������������������������������������������������������������������������������������������������ 58 otherwise stated, by the companies.
• Global Mining News
MAG Silver������������������������������������������������������������������������������������������������������� 62 Cover: ©corlaffra/shutterstock.com
• Push Notofications
• Commodity-TV, Rohstoff-TV and Dukascopy-TV Osino Resources���������������������������������������������������������������������������������������������� 66 Back
powered by: 1: Osisko Mining
• Live Charts TerraX Minerals������������������������������������������������������������������������������������������������� 70 2: fotolia/shutterstock.com
• JRB-Rohstoffblog 3: © Elionora Hentzel
4: fotolia/shutterstock.com
Charts: 10./8/2019
JS Charts by amCharts
6 7
Swiss Resource Capital AG | Poststrasse 1 | 9100 Herisau | Schweiz | www.resource-capital.ch www.resource-capital.ch | info@resource-capital.ch
Vorwort
Dear Readers,
now in its fourth year of publication, we are want to give you the necessary basic
delighted to present our special report on knowledge by means of our general part, so
precious metals, which follows on from our that you can make your own decisions. Our
successful Battery Metals and Uranium Re- guest interview is also very interesting and
ports. Precious metals are now indispensable should definitely be read.
for one‘s own (crisis) provision and asset pre-
servation. Not to be forgotten is the uncondi- Swiss Resource Capital AG has set itself the
tional use of precious metals as a store of task of providing commodity investors, inte-
value and money substitute, as well as to pro- rested parties and those who would like to Jochen Staiger is founder and CEO
tect against extremely bad times. The mo- become investors with up-to-date and com- of Swiss Resource Capital AG,
ney-printing orgies of the central banks can prehensive information on a wide variety of located in Herisau, Switzerland. As
no longer be stopped and with Christine Lag- commodities and mining companies. On our chief-editor and founder of the first
arde as Mario Draghi‘s successor, things are website www.resource-capital.ch you will two resource IP-TV-channels
getting worse rather than better. Whether the- find about 20 companies and a lot of informa- Commodity-TV and its German
re will be a financial collapse is, as always, tion and articles about raw materials. counterpart Rohstoff-TV, he reports
questionable and controversial. However, the about companies, experts, fund
omens condense to storm. Nobody knows We would like to give you the necessary managers and various themes
when this one breaks loose. However, I insights through our special reports and pro- around the international mining
strongly recommend watching the movie vide you with comprehensive information. In business and the correspondent
„The big short“, because it clearly shows the addition, our two raw material IP-TV channels metals.
last financial crisis and explains its origin. We www.Commodity-TV.net & www.Rohstoff-TV.net
R o h s t o f f - T V g et are already on the same way there again, are always available to you free of charge at
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and/or silver ounces you can survive many charts, prices and the latest videos.
storms in order to provide yourself and your My team and I hope you enjoy reading the
family with the most necessary food. But we Special Report on Precious Metals and that
do not want to assume the worst, but physi- we can provide you with lots of new informa-
cal precious metals reassure me of the pos- tion, impressions and ideas. Only those who
sible coming distortions. The price of gold fi- inform themselves in many ways and take
nally broke out on 25 June 2019, leaving be- their investment matters into their own hands
hind the final resistance of US$ 1,385 per will be able to win and preserve their assets in
ounce that we propagated. As we had already these difficult times. Precious metals have Tim Roedel is chief-editorial- and
written, the first target we see is around 1,600 existed for thousands of years and will conti- chief-communications-manager at
US$ per ounce, then the old highs at 1,900 nue to do so. SRC AG. He has been active in the
US$ per ounce and then our Point & Figure commodity sector since 2007 and
Chart already shows 2,150-2,300 US$ per Yours, Jochen Staiger held several editor- and chief-
ounce. We look positively into the future and editor-positions, e.g. at the
take gold as a store of value and inflation pro- publications Rohstoff-Spiegel,
tection. Mining companies are still very che- Rohstoff-Woche, Rohstoffraketen,
ap. Especially producers with dividends are Wahrer Wohlstand and First Mover.
now first choice as well as prospective preci- He owns an enormous commodity
ous metal producers have an enormous leve- expertise and a wide-spread
rage on the respective metal price and are network within the whole resource
excellently suited as investments. In this pre- sector.
cious metal report, we present some interes-
ting companies that are suitable for specula-
tion on rising precious metal prices. We also
9
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Gold, silver and palladium mark a turnaround in
precious metals – platinum in a luring state
Precious metal investors can breathe a ous metals, including copper. A third high softness of gold. In industry, gold is
sigh of relief, precious metals are finally group consists of the so-called short- used mainly in the construction of cir-
back on the trigger! In the case of palla- lived radioactive precious metals, which cuits as an additive (gold plating) to wi-
dium, a trend reversal has been under- play virtually no role in practice. res, printed circuit boards, switching
way for some time now, with the price of In the following, this report will deal contacts and connectors.
palladium hitting US$ 1,670 per ounce exclusively with the four most common
from US$ 470 in January 2016. Gold saw precious metals gold, silver, platinum
its latest low in October 2018 and has and palladium. Deposits and extraction
since risen from US$ 1,180 to - at its
peak - just under US$ 1,550 per ounce. Gold is very rare in nature. The earth‘s
In June 2019 there was even a breakout crust contains an average of only 4
from a downward trend channel that had
lasted for years. In many currencies, the
Gold: Everyone loves it, grams of gold per 1,000 tons of rock. In
addition, it occurs on earth predominant-
yellow metal is even trading at or close to everyone wants it! ly dignified, i.e. in elementary, metallic more and more. While around 2,429 ton-
all-time highs. Silver was also able to form. It is found in primary raw material nes of the yellow metal were extracted Gold is money and has been used for
break through upwards in June 2019 and Gold is a chemical element with the ele- deposits as gold-bearing rock (gold ore) from the earth worldwide in 2008, the fi- thousands of years to preserve value and
quickly climb from just under US$ 14 to ment symbol Au and the atomic number as well as in secondary deposits, inclu- gure was 2,857 tonnes in 2011 and 3,290 protect against inflation.
- at its peak - US$ 19.30 per ounce. Whi- 79. It can be machined very well (mode- ding soap deposits. Up to 20% of the tonnes in 2015. Since then, production (Source: fotolia/shutterstock.com)
le the recent rises in silver and palladium rate melting temperature) and does not gold mined annually is extracted as has risen only marginally to 3,398 tonnes
have been driven primarily by economic corrode. Not only is it rare, but it is also by-product, mainly from copper, nickel or in 2016 and 3,446 tonnes in 2017. Cont-
and speculative factors, gold has been heavy, and its yellow shine is resistant, other precious metal mines. rary to all forecasts, gold production rose
driven more by fiscal and geopolitical which is why it is regarded as imperisha- again slightly in 2018 to 3,500.8 tonnes.
distortions. Only a continued extremely ble and is therefore used to a large extent Even though 2018 represented another
strong US$ (still) prevents a new dollar for jewellery or in the form of coins or record year in gold production, it can be
all-time high in the gold price. bars to preserve its value. Gold is also Supply situation assumed that the gold peak, i.e. the an-
considered easy to alloy, which makes it nual gold production, has reached its
very attractive as a material. In 2018, a total of 3,500.8 tonnes of gold peak for the time being.
were extracted from mines and 1,167.5
tonnes from recycling. This means that
[Xe] 4f145d106s1
the total gold supply rose by around 65 The reasons for a decline in gold
79
Au
tonnes compared with 2017 but was production are manifold
some 12 tonnes below the gold supply of
2016. Several factors contribute to this.
The main gold mining areas are currently First, more and more deposits are rea-
China, Australia, Russia, the USA and ching the end of their lifetime. Those that
Melting Point 1337 K
Boiling Point 3243 K Canada, which together account for al- are not yet fully exploited must be remo-
most half of the total annual production. ved more and more elaborately in order
GOLD The former, until 2007 absolute leader in to obtain further gold-bearing material.
Goldprice US$/oz gold production, South Africa was in Some mines already reach depths of
(Surce: JS by amChart) What are precious metals? 2018 only in ninth place. Other important 4,000 meters and more.
Most important characteristics: gold producing nations are Peru, Indone- The gold content continues to fall stea-
In purely chemical terms, precious me- Appearance, corrosion re- sia, Ghana and Mexico, where gold is dily. Currently, gold deposits are still ex-
tals are metals that are resistant to corro- sistance, good workability, mined mainly as a by-product from silver ploited at an average of just over 1 gram
sion, i.e. that are permanently chemically good contact mines. of gold per tonne of rock (g/t). However,
stable in a natural environment under the there are already indications that this
influence of air and water. The group of Not only in the form of jewellery or coins, mark will drop to below 0.9g/t in a few
precious metals primarily includes gold but also in medical applications, gold Gold production rises only mar- years‘ time for deposits that have not yet
and silver, as well as the so-called plati- scores particularly highly with its yellow ginally – Gold peak reached?! been developed.
num metals platinum, palladium, rutheni- appearance and corrosion resistance. A third point is the (lack of) discovery of
um, rhodium, osmium and iridium. Mer- For example, in dental prosthetics, whe- Since the turn of the millennium, gold new deposits. While more than a billion
cury is also a precious metal. There are re additional precious metals such as production has risen every year until ounces of gold were discovered in the
also a number of so-called semi-preci- platinum are added due to the relatively 2018, but this has recently weakened 1990s, from 2000 to 2014 the figure was
10 11
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Demand from jewellery sector Silver: earth‘s crust. In 2017 there was even a
and investment sector stable – real slump to only 876.9 million ounces!
technology sector growing The little brother of In 2018, this trend continued: worldwide
steadily gold could become the production amounted to only 855.7 milli-
new star in regenerati- on ounces! With an annual production of
In 2018, there was demand for around 180 million ounces (about 20% of total
4,396 tonnes of gold worldwide. The li- ve energies! world production), Mexico ranks first
on‘s share was accounted for by the je- among the producing nations, followed
wellery sector, which consumed 2,241 Silver is a chemical element with the ele- by Peru and China. Together, these three
tonnes. In second place was the invest- ment symbol Ag and the atomic number countries account for about half of global
ment sector, which demanded about 47 and belongs to the so-called transiti- silver production.
1,164 tonnes. Demand from the techno- on metals. It is a soft, easily deformable
Goldsupply (green) and -demand (yellow) logy sector was strong, reaching 334.8 heavy metal with the highest electrical
(Source: own representation) just over 600 million ounces. Since then, metric tons in 2018. This showed that conductivity of all elements and the hig- Silver is above all a by-product!
the new discoveries have again really gold is being used more and more not hest thermal conductivity of all metals. It
collapsed. This is mainly due to the fact only in smartphones and game consoles, is precisely these properties that make it Only about 30% of the annual production
that gold producers have concentrated but also in the field of electromobility. an indispensable metal for industrial ap- comes from pure silver mines or from mi-
primarily on reducing mining prices in This is a circumstance which, in view of plications. nes in which silver is the primary raw ma-
recent years due to the continuing bear the beginning electric (mobility) revoluti- terial. The vast majority (70%), on the
market in gold prices. Particular savings on, is likely to lead to continued strong [Kr] 4d105s1
other hand, comes from mines in which
47
Ag
were made on exploration, which meant growth in demand from the technology silver is only a by-product, i.e. mainly
that virtually no major deposits were dis- sector in the future. from zinc/lead mines, but also from cop-
covered in recent years. per and gold mines.
This means nothing other than that, as a
result of the above points, there is a high Conclusion: Melting Point 961,78° C
probability that production will decline in Everything depends on the Boiling Point 2210°C Weak base metal prices cause
the coming years. investment sector silver production to stagnate
SILVER and supply to fall overall
Although the technology sector in parti-
cular is likely to generate the highest This high dependency primarily on base
Demand situation percentage growth in demand for gold in But silver is much more than that: unlike metals such as lead, zinc and copper
the coming years, everything depends gold, it is consumed, and the sheer num- means that weakening base metal
Central banks buy like crazy on the investment sector. Assuming that ber of possible applications is constantly prices and the associated closure of mi-
the jewellery industry is likely to remain at increasing with technical progress. In ad- nes or at least a reduction in the corres-
The central banks are „exacerbating“ the the same level in terms of demand as in dition to be an industrial metal, silver is ponding base metal production also
situation, albeit only marginally at pre- previous years, it is precisely the inflows also a precious metal. Like gold it is in have a negative impact on the producti-
sent. After decades of gold sales, they into gold-deposited ETFs that have principle money and serves to maintain on of the by-product silver. Thus, price
have been back on the buying side since recently been at a rather weak level, but value. It can also be seen as a kind of declines - above all for copper, but also
2010 and have recently even recorded which have recovered since the end of hedge against progressive inflation. for lead - in recent years have ensured
record purchases. A total of 23 central 2018 and therefore have the greatest de- that silver production only rose margi-
banks increased their gold reserves in mand growth potential. From June to Au- nally and has even been in decline since
2018. Russia (which has officially overta- gust 2019 alone, the global ETFs recor- 2016. Stagnating silver production is to
ken China in the meantime), but also Tur- ded a gold inflow of over 300 tonnes! Supply situation be expected in the coming years, as the
key, India, Poland, Egypt, Brazil and Ka- It will be exciting on the supply side. A output of new mines will only be able to
zakhstan bought gold in 2018. Central lack of replenishment in the form of Mexico, Peru and China are compensate for the loss of zinc/lead mi-
banks increased their gold stocks by high-grade new discoveries as well as an leading producer nations nes with difficulty. From today‘s per-
656.3 tonnes in 2018. This was 73% increasingly cost-intensive supply, as spective, silver production is even ex-
more than in 2017, which meant that a more difficult mining is likely not only to In 2015, global silver production reached pected to decline again from 2019 on-
large amount of supply was taken off the lead to a future supply deficit, but also to an all-time high of 893.7 million ounces. wards, as is the overall silver supply
market by the central banks alone, which the necessity of a higher gold price so In 2016, production fell for the first time (including recycling). This is primarily
once again appeared on the demand that demand can be met at all in a in many years. In 2016, 893.4 million due to the expected closure of several
side and not on the supply side. cost-covering manner. ounces of silver were extracted from the medium-sized to large zinc/lead mines
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and further to an enormous investment Recycling and central bank mand. China, in particular, wants to sig-
backlog which has accumulated in sales should not contribute nificantly increase the share of photovol-
recent years due to the weak silver price to an increase in supply taic capacity. By 2020 alone, the Middle
development. Corresponding silver pro- Kingdom wants to achieve 110 gigawatts
jects were put on hold and developed A further decline in the supply of silver of cumulative photovoltaic output. This
only inadequately. The consequence of recycling can also be expected. Sales by means that more and more silver is
this is that these projects will only be central banks have hardly played a role bound in corresponding solar modules
put into production after a long delay. In since 2011 and are unlikely to lead to a for at least 20 years!
addition, recycling has been declining significant increase in silver supply in the
since 2011 and in 2018 was only about coming years.
151 million ounces compared to 261 Physical demand recently
million ounces in 2011. higher again
Demand situation Physical silver demand reached a record
high of approximately 1.162 billion oun-
Silver with hermaphroditic ces in 2015 and dropped from an extre- Silversupply (green) and
function mely high level to approximately 1.030 i.e. virtually the entire production of 2018, Silverdemand (yellow)
billion ounces in 2016 and 998 million have been demanded more than could (Source: own representation)
While gold is mainly used as an invest- ounces in 2017. In 2018, silver demand be produced. All in all, global silver de-
ment, to preserve value and in the form rose sharply again to 1.033 billion oun- mand is expected to rise again in the co-
of jewellery (only about 9% of annual de- ces, mainly due to a revived investment ming years. In addition to expected rising
mand comes from industry), silver has a sector. The demand for coins and bars ETF inflows and further physical demand,
kind of hermaphroditic function. This me- rose by 30.8 million ounces from 2017 to the Asian jewellery industry and several
ans that recently about 56% of the total 2018 to 181.2 million ounces. The de- industrial sectors such as photovoltaics,
silver demand came from industry, while mand from the jewelry sector increased touchscreens and displays in particular
the rest was mainly demanded by inves- by 8 million ounces, the demand for other are expected to see some drastic increa-
tors in the form of bars and coins as well silverware by 3.5 million ounces. It is ses in demand. On the supply side, the
Silverprice US$/oz as by the jewellery industry. noticeable that industrial demand fell by same applies as for gold: most primary
(Source: JS by amChart) about 7 million ounces and thus to just silver producers have concentrated in
Silver companies set priorities under 56% of total demand. recent years primarily on reducing mining
on cost savings Main applications: prices due to a sustained slump in silver
Electronics, Alloys, Photo prices. Particular savings were made on
The development of the mine pipeline graphy, Photovoltaics Conclusion: exploration, which meant that virtually no
has stalled in recent years with weak sil- Continuing supply deficit major deposits were discovered in recent
ver prices, partly because the silver Its peak values for important properties years. Price weaknesses in several base
companies had to deal primarily with (highest electrical conductivity of all me- The silver sector has been running a sup- metals also caused the development of
getting their cost structure under cont- tals, high thermal conductivity and pro- ply deficit for 10 years. Since 2009, a to- mines producing silver as a by-product
rol. The high silver prices, mainly in the nounced optical reflectivity) make silver tal of around 860 million ounces of silver, to be postponed for the time being.
years 2010 to 2012, ensured that mines indispensable above all in the fields of
with all-in costs of over US$ 20 per oun- electrics, electronics and optics or pho- Like gold, silver is in principle money and
ce were also put into operation. These tography. These sectors also account for serves to maintain value and protect
quickly became unprofitable after 2012. a good half of the total industrial demand against inflation.
But instead of closing them, the compa- of about 580 million ounces. In addition, (Source: shutterstock.com)
nies have been trying to reduce costs there are applications as silver alloys
ever since. There was little time and (with copper, zinc, tin, nickel, indium),
even less money left for elaborate ex- which are used in electrical engineering
ploration and development programs. In and soldering technology as solder allo-
the meantime, the vast majority of com- ys (so-called brazing), contact materials
panies have been able to reduce their (especially in relays) and conductive ma-
costs to an acceptable and largely profi- terials (such as capacitor coatings). Sin-
table level. ce 2011, the photovoltaic sector has also
played an important role in silver de-
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Platinum: enormous demand driver in the future.
The second major field of application in
2018 came from South African mines.
Russia followed with about 10.8%, Zim-
Irreplaceable in indus industry is the chemical sector. Platinum babwe with 7% and North America with
try, but increasingly is also used in alloys, for glass producti- 6%. Overall, platinum mining is a relati-
replaced by palladium! on (crucibles), in electrical resistors and
for medical applications and apparatus.
vely small sector, with only about 6.11
million ounces produced in 2018, for ex-
Another large field of application is the ample.
Platinum is considered by investors to be jewellery industry, where platinum is of-
an absolute rarity and at the same time ten alloyed with other metals, mainly
extremely mysterious. Platinum is a che- gold. The fourth major area is the invest- High recycling rate
mical element with the element symbol ment sector.
Pt and the atomic number 78. Although a certain amount of gold and
silver is recycled back into the cycle,
Deposits and extraction platinum is recycled to a very high
[Xe] 4f145d96s1 78 percentage. In 2018, about 2.10 million Main customers: Platinumsupply (green) and
Pt
Platinum comes in a dignified form, i.e. in ounces were recovered from recycling. automotive industry and jewel- Platinumdemand (yellow)
elementary form in nature. Metallic plati- Recycling thus accounted for 25.6% of lery production (Source: own representation)
num (platinum soaps) is practically no the total platinum supply for the year.
longer mined today. Although a large part Expressed in figures, it is the automotive
Melting Point 1768° C of the platinum mined in a few places co- sector that had the highest demand for
Boiling Point 3827°C mes from primary deposits, production Supply stagnates platinum in 2018. 3.05 million ounces
PLATINUM as a by-product in the production of were mainly used for catalyst constructi-
non-ferrous metals (copper and nickel) is Overall, the global platinum supply has on. In second place was the jewellery in-
becoming increasingly important. There stagnated in recent years. While in 2013 dustry, which demanded 2.27 million
the platinum group metals are produced about 7.8 million ounces of platinum ounces of supply (including recycling).
Main properties: as a by-product of nickel refining. were available (of which about 5.8 milli- This was followed by demand from the
Forgeable, ductile, corrosion on ounces from mining and nearly 2 mil- rest of the industry with 2.46 million oun-
resistant lion ounces from recycling), in 2018 ces. The investment sector collapsed
about 8.2 million ounces of platinum re- from 361,000 ounces in 2017 to only
It has an extremely high density and is at ached the free market (mining: 6.1 milli- 67,000 ounces in 2018.
the same time very easy to forge and on ounces, recycling: 2.1 million oun-
stretch. Its grey-white colour has always ces). An increase in platinum production,
fascinated people, probably also becau- on the other hand, is not in sight, as in Hydrogen storage technologies
se platinum has a remarkable resistance South Africa in particular platinum ext- as future demand drivers
to corrosion and therefore does not tar- raction is becoming ever deeper and th-
nish. Due to its high durability, tarnish re- erefore more expensive. Innovative hydrogen storage technolo-
sistance and rarity, platinum is particular- gies are already being researched in
ly suitable for the production of high-qua- Platinum Nugget (Source: Rob Lavinsky, CC, 3.0 US) South Africa. Power generation with pla-
lity jewellery. tinum catalysts is the big issue here.
Demand situation Low-cost hydrogen storage systems for
fuel cell vehicles and portable applica-
Almost infinite possibilities of Supply situation Platinum has a hybrid function tions are still dreams of the future, but
use China alone plans to produce two million
South Africa, Zimbabwe, the Like silver, platinum has a kind of hybrid hydrogen fuel cell vehicles by 2030. Ger-
Platinum finds its way into a whole range USA and Russia are the leading function. This means that about two many has just commissioned the world‘s
of different applications. By far the most producer nations thirds of total platinum demand come first hydrogen fuel cell train. A large plati-
common use of platinum is in the auto- from industry, while the rest comes num company is already investing to-
motive industry, where it is used in the Only the South African Bushveld Com- mainly from the jewellery industry and gether with Shell Technology in the de-
form of automotive catalysts. In addition plex, the Stillwater Complex in Montana/ from investors in the form of bars and velopment of hydrogen compression
to the classic diesel oxidation catalysts, USA and Russia have extensive and no- coins. technology. As the name suggests, these
platinum is also finding increasing use in teworthy primary platinum mining. Over so-called platinum electric vehicles need
catalysts in fuel cells, which could be an 73% of the world‘s platinum mined in platinum as the basic raw material.
16 17
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