Platinum Stocks : With the rising cost of living weighing on the world economy and causing some investors to be looking at precious metals. In the S&P GSCI Precious Metals Index (comprising silver, gold palladium, platinum, and palladium) increased by over 50% from the end of summer 2019 to the end of the 2022 summer, however, the prices of platinum have been falling because of the oversupply of industry between 2021 as well as 2022.
The price of metals has been cooling off since federal reserve board’s frenzied rate hikes have started to slow economic growth. But, with the increasing demand for electronic and industrial equipment increasing the prices of the materials utilized in the manufacture of electronic equipment (including platinum) can remain at a high level for a long period of time. This is why purchasing platinum stocks may be beneficial for some investors.
The investment in platinum stocks
Platinum is much more than an expensive metal. It also has numerous industrial applications. For instance, electric car batteries, as well as certain types of fuel cells utilized for energy grids as well as some semiconductors and medical devices, electrical components and manufacturing of industrial chemicals all make use of platinum. Investment in companies that refine and mine platinum can provide an investment portfolio that includes exposure to all these fields.
Metal mining stocks are highly volatile, but. It is also possible to consider the possibility of purchasing a platinum exchange-traded funds (ETF) in case investing in individual stocks in this area isn’t appealing to you. If you’re looking for, here are the three biggest producers listed through U.S. stock exchanges:
Anglo American Platinum
Anglo American Platinum is part of the Anglo American PLC (OTC:NGLOY) mining conglomerate. Platinum is not listed, but it’s owned through Anglo American PLC and based in South Africa. It makes around 40% of the platinum used in the world, and also produces palladium and Rhodium (often from the process of mining platinum).
Anglo American Platinum has noted that the global supply of platinum was higher than demand in 2021 and this trend has continued into 2022. But, due the efficiency of its operations as well as its pricing of its premium metals Anglo American Platinum has seen profit and sales records for the last several years. The company’s revenue and free cash flow in 2022 are lower than their high in 2021 due to the lower price on platinum and blackouts on rolling power across South Africa.
Anglo American Platinum pays out the majority or all of its profits to shareholders in the form of the form of a dividend. The company has a listing on the stock exchange in South Africa but trades over the over the counter within the U.S.
Impala Platinum Holdings
Impala Platinum is the world’s second-largest producer of platinum. The majority of its operations are located in South Africa and neighboring Zimbabwe The shares are traded on the stock exchanges in South Africa, but they are also available through the U.S.
Impala Platinum has offered to buy a majority stake in another platinum-producing Royal Bafokeng Platinum (RBPlat). If it is accepted, Impala Platinum thinks combining RBPlat together with its own business can unlock value for producers of precious metals as the platinum industry grows. The company has been purchasing RBPlat shares, and currently owns over 40% of the total stock in circulation.
Impala Platinum also pays a dividend to investors seeking income. Moreover, the company does not have debt and has enough funds to support its operations.
Sibanye Stillwater is another South African mining company that is a leading player in palladium and platinum. It’s also a leading producer of gold, and is interested in lithium mining projectstwo of the primary components used to make electronic devices and electric vehicles.
Similar to Anglo American Platinum and Impala Platinum, Sibanye Stillwater has had record revenues and earnings over the last few years as the demand for metals that are precious has grown due to the rise in inflation. The profits and sales for 2022 are also lower than the peak of 2021 since inflation has decreased. Sibanye Stillwater has also been affected by power cuts across South Africa.
The company pays dividends and has a low amount of debt as well as plenty of cash. This makes it a good place to be in an investment-based business like mining.