📌Cost support for PGMs is still far away; platinum price is more likely to decline

🛒On our numbers, major South African miners' costs grew >60% over the last 4 years, affected by grade depletion, higher labour and material costs. However, given the PGM price increase was also dramatic (spot prices of Pd were up 62%, while of Pt rose by 15%, compared to 2018), the average EBITDA margin remains at solid ~30% level

❗️Meanwhile, yet distant cost support is posing material downside risks for PGM prices (including a potential double-digit drop)

📝To sum up, platinum prices are likely to stay stressed in the near future, mostly due to weak demand and heavy surplus. As for palladium prices, they might remain at currently elevated levels in the medium term, supported by the market deficit, but with no strong growth triggers

#PGMs
https://metals-wire.com/sector/PGM