Platinum's poor performance relative to gold of late may be due to its lack of status as a safe-haven investment and a credible means of storing value.
The Royal Bafokeng nation, who control vast parts of the platinum belt in the north west province of South Africa warned that earnings at its main investment vehicle could be down by between 52% and 62% over the first six months of 2012.
Deutsche Bank expects that platinum supply could see further cutbacks as economic/social pressures in South Africa mount and the price could be dragged higher by stronger gold prices over the remainder of 2012.
South Africa's Anglo Platinum, the world's largest primary platinum producer, has confirmed the lay-off of 725 employees from its central services and support functions, provoking the ire of the mining's industry's national union.
Arguably the richest prize in mining, the Pebble project pits a watershed where up to 40 million salmon spawn each year against copper and gold reserves worth as much as $500 billion according to a new documentary.
The release of financial statements by South Africa's key mining groups for the first half of 2012 is expected to reveal the full extent of difficulties in the platinum sector following heavy declines in share prices over the past year.
Neville Nicolau, the head of Anglo American’s platinum business is leaving the company, after the South African unit warned its earnings per share for the first half could drop as much as 78%.
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