The UK Department of Transport stated that 50% of Britain’s car market will be comprised of hybrid and fully electric vehicles by 2030. The Road to Zero program calls for zero emissions from nearly all cars by the year 2040 and all cars and vans by 2050. Several other nations have echoed this strategy of attaining zero emissions across the auto industry in the first half of this century, not a promising prospect for platinum and palladium.
Anglo Platinum, the world’s largest platinum producer, issued a preliminary trading statement notifying the market that its earnings for the first half of 2018 to be released later in July will be 20% greater than that in the same period of last year. The Johannesburg Stock Exchange requires a notification if earnings differ by more than 20% year-on-year. Management ascribed the improved results to better operational deliveries, a firmer rand basket price for its metal sales and some “impairments in the comparative period” of 2017. Anglo reported 1,189,100 ounces of platinum produced in its first half year ending June 2017.
And with 613,800 ounces of platinum produced in the first quarter of fiscal 2018, the note implies outturn well in excess of 575,300 ounces of platinum in the second quarter of 2018. Results for the June period could potentially be higher than even that of the March 2018 outturn as mine production in South Africa is normally the lowest during the first quarter of the year due to warmer summer temperatures affecting underground conditions and an often-slow return of workers from the Christmas break. Anglo Platinum produced 2.397 million ounces of platinum in the 12 months of fiscal 2017.
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