Closing down mining operations

[barry_1]

Lonmin are going to close all opencast operations which are at the present prices running at a loss and concentrate on Marikana which is still operating underground at a profit...No further mechannised mining will be done as the costs do not justify it....Surely the other large groups ,namely AMS and IMP will follow this lead ,rather sooner than later?...from Creamer News today.

[louisg]

Hi Barry. It appears that the best remedy for a low platinum price is the low price itself. Low price -> reduce supply (close mines) = higher price.

[barry_1]

Yes ,thats true,but i see that Palladium that at one time reached the heady price of $1000 per 0z. will be in surplus for many years and it is expected that the present price will halve to about $105 per oz.soon....Demand for platinum is increasing so i expect a part recovery over the next eighteen months....Obviously a bad time for smaller BEE mines as all mines outside the big three and Aquarius should be avoided for now....interesting ANGLO up to about a year months received the majority of its income from platinum.Now one can use AGL as a surrogate for the ALSI.No wonder its in negative territory of late!