The shocking violence in South Africa has had an impact on platinum prices and on the share price of U.S. platinum miner Stillwater Mining Corp. (NYSE: SWC). Platinum futures for October delivery closed at $1,435.20 an ounce yesterday, up nearly 3% on the day and the highest closing price for the metal in more than a month.
The world’s second-largest platinum miner, Johannesburg-listed Impala Platinum Holdings Ltd., fired more than 17,000 striking workers in February, sending the price to a year-to-date high over $1,600 an ounce. The 12-month high is around $1,900 an ounce.
Platinum prices have been falling as demand for the metal from the auto industry has fallen off. But now that the Lonmin mine has lost a week’s worth of production and faces the prospect of losing even more, prices are rebounding from near-term lows of around $1,400 an ounce. In Johannesburg this morning, platinum prices rose to $1,457 an ounce for immediate delivery.
Shares of Stillwater Mining rose more than 7% yesterday, closing at $9.73 in a 52-week range of $7.31 to $15.95. The shares are up by 0.2% in premarket activity today, at $9.75.
Paul Ausick
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