Fundamentals
Sibanye is highly correlated to the USD, we expect a reversal in the USD to come soon, but the current trend is to the upside and could impact commodities more, So we expect more downside on ZAR, NZD, AUD, CAD.
US Holidays are over, and we should see some profit taking and big funds to starts positioning their portfolios for the new seasonality coming up. With rates moving higher in in the USD and some potential risks with Covid looming in emerging markets that would push gold higher, however Platinum is SSW biggest holding on resources.
A 40% increase in 4E Platinum group metals (PGM) Mineral Reserves at the SA PGM operations to 39.5M 4Eoz, primarily due to the inclusion of the Marikana K4 project (12.7 M 4Eoz) and the Klipfontein opencast project (0.1M 4Eoz) following detailed feasibility studies.
Platinum
Platinum futures traded below $1,000 per troy ounce, hovering at levels not seen since last November, amid a downbeat demand outlook, following output cut announcements by major players in the auto industry amid a global semiconductor shortage. Volkswagen stated its plant in Wolfsburg, the world’s largest, planned to restart production with only one shift, while its subsidiary Audi decided to extend the summer break by one week. Earlier, Toyota had already announced the suspension of operations at 14 of its Japanese factories in September. The metal used in catalytic converters had been already under pressure, due to a spike in COVID-19 cases across the globe and as US Fed officials talked of removing stimulus as soon as this year.
Platinum is expected to trade at 1030.27 USD/t oz. by the end of this quarter, according to Trading Economics global macro models and analysts’ expectations. Looking forward, we estimate it to trade at 1197.07 in 12 months’ time.
Mining Production in South Africa is expected to be -3.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts’ expectations. Looking forward, we estimate Mining Production in South Africa to stand at 2.50 in 12 months’ time. In the long-term, the South Africa Mining Production is projected to trend around 2.00 percent in 2022 and 3.00 percent in 2023, according to our econometric models.
Exports in South Africa is expected to be 155000.00 ZAR Million by the end of this quarter, according to Trading Economics global macro models and analysts’ expectations. In the long-term, the South Africa Exports is projected to trend around 140000.00 ZAR Million in 2022 and 130000.00 ZAR Million in 2023, according to our econometric models.
Technicals
the Stock price made a strong bullish impulse on the monthly from 1500, and profit taking occurred at 7650, on the monthly time frame we are now in a Bullish correction and should expect buyers to come back in between 3820-5200
Market Condition on the weekly is bearish on the MACD, So wont be putting looking for buys as yet
LONG TERM when Global economy and Supply bottle necks stops and Automotive vehicle production is at full tilt this could be a great buy as they expect demand to increase, at the moment it’s a HOLD/BUY
Sibanye is highly correlated to the USD, we expect a reversal in the USD to come soon, but the current trend is to the upside and could impact commodities more, So we expect more downside on ZAR, NZD, AUD, CAD.
US Holidays are over, and we should see some profit taking and big funds to starts positioning their portfolios for the new seasonality coming up. With rates moving higher in in the USD and some potential risks with Covid looming in emerging markets that would push gold higher, however Platinum is SSW biggest holding on resources.
A 40% increase in 4E Platinum group metals (PGM) Mineral Reserves at the SA PGM operations to 39.5M 4Eoz, primarily due to the inclusion of the Marikana K4 project (12.7 M 4Eoz) and the Klipfontein opencast project (0.1M 4Eoz) following detailed feasibility studies.
Platinum
Platinum futures traded below $1,000 per troy ounce, hovering at levels not seen since last November, amid a downbeat demand outlook, following output cut announcements by major players in the auto industry amid a global semiconductor shortage. Volkswagen stated its plant in Wolfsburg, the world’s largest, planned to restart production with only one shift, while its subsidiary Audi decided to extend the summer break by one week. Earlier, Toyota had already announced the suspension of operations at 14 of its Japanese factories in September. The metal used in catalytic converters had been already under pressure, due to a spike in COVID-19 cases across the globe and as US Fed officials talked of removing stimulus as soon as this year.
Platinum is expected to trade at 1030.27 USD/t oz. by the end of this quarter, according to Trading Economics global macro models and analysts’ expectations. Looking forward, we estimate it to trade at 1197.07 in 12 months’ time.
Mining Production in South Africa is expected to be -3.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts’ expectations. Looking forward, we estimate Mining Production in South Africa to stand at 2.50 in 12 months’ time. In the long-term, the South Africa Mining Production is projected to trend around 2.00 percent in 2022 and 3.00 percent in 2023, according to our econometric models.
Exports in South Africa is expected to be 155000.00 ZAR Million by the end of this quarter, according to Trading Economics global macro models and analysts’ expectations. In the long-term, the South Africa Exports is projected to trend around 140000.00 ZAR Million in 2022 and 130000.00 ZAR Million in 2023, according to our econometric models.
Technicals
the Stock price made a strong bullish impulse on the monthly from 1500, and profit taking occurred at 7650, on the monthly time frame we are now in a Bullish correction and should expect buyers to come back in between 3820-5200
Market Condition on the weekly is bearish on the MACD, So wont be putting looking for buys as yet
LONG TERM when Global economy and Supply bottle necks stops and Automotive vehicle production is at full tilt this could be a great buy as they expect demand to increase, at the moment it’s a HOLD/BUY
