Friday, March 07, 2008

Platinum Stocks

I remember back in 1995 and 1996, gold and platinum were both selling for around $400 an ounce. Now gold is selling for around $972 per ounce, a bit more than doubling. Yet platinum is now at over $2,000 per ounce, a quintupling in price.

Platinum has the following characteristics:

1. It is thirty times rarer than gold.
2. The top producer is South Africa, then Russia, then Canada.
3. There is a large amount of platinum on the Moon.
4. Platinum complexes are used in the treatment of cancers.
5. King Louis XV of France declare it the only metal fit for a king.
6. It is used in the manufacture of jewelry, electronics, dentistry, lab equipment, and automobile emissions controls.

Here are some stocks that participate in the mining of platinum.

Anglo American PLC (AAUK) which trades on NASDAQ, is a miner of platinum, gold, diamonds, coal, and industrial minerals. The stock has a P/E of 12, a forward P/E of 19, and pays a yield of 2.6%, with a market cap of 86 billion.

Anglo Platinum (AGPPY.PK) produces platinum, palladium, rhodium, ruthenium, iridium and osmium. They have a market cap of 37 billion and a net profit margin of 24%.

Anooraq Resources Corporation (ANO) is a Vancouver, Canada based mining company involved in the exploration of platinum group metals in South Africa. The company recently reported diluted earnings per share of negative 3 cents per share.

Aquarius Platinum (AQPBF.PK) mines for platinum, palladium, rhodium and gold in South Africa and Zimbabwe. The stock has a market cap of over four billion and a P/E of 18.7.

Impala Platinum (IMPUY.PK) is a miner of platinum group metals, also known as PGMs, including platinum, palladium, rhodium, ruthenium, and iridium. They operate in South Africa and Zibabwe. This company, which has a $26 billion market cap, has a 28% profit margin.

JSC MMC Norilsk (NILSY.PK) is a Russian miner of platinum, palladium, copper, nickel, cobalt, rhodium, silver, gold, tellurium, selenium, iridium and ruthenium. The market cap is 56 billion and the net profit margin is over 49%.

Lonmin PLC (LNMIY.PK) is a South Africa-based miner of platinum group metals. They have a market cap of almost 11 billion and a PE of 34.

North American Palladium (PAL) which trades on the American Stock Exchange , mines for palladium, platinum, gold, copper and nickel. The stock had negative earnings per share of 46 cents per share, with a market cap of 383 million.

Northam Platinum Pty (NMPNF.PK) mines for platinum, palladium and rhodium in South Africa. The stock has a net profit margin of 31.5%.

Stillwater (SWC) which trades on the New York Stock Exchange, is based and operates in Montana. They mine, refine, and sell palladium and platinum. The stock has a forward P/E of 16.

Jubilee Platinum (JUBPF.PK) is a London based company that explores for platinum and other minerals. The stock has a 73 million market cap.

Author does not own any of the above.

By Fred Fuld at

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