Energy Crisis in South Africa Sparks Platinum Shortage Concerns, says Expert

This is an interview with Dr. David Davis, a researcher with almost five decades of experience in the South African mining sector, with a focus on platinum.

Dr. Davis spoke about South Africa’s energy crisis and its impact on platinum production in the country. He says that there will be a big platinum shortage due to said energy crisis. That concerns him because South Africa produces three-quarters of the world’s platinum.

However, the market doesn't think this will be the case. Platinum is trading at half the price of gold at around $950 an ounce while being 30 times rarer than the yellow metal. Dr. Davis also said that the current price of platinum is below the marginal cost of production.

Mark pushed back against Dr. Davis’ gloomy forecasts of an 11-18% drop in global production in 2023, pointing out the World Platinum Investment Council forecasts only a 1% decline over the same period. Dr. Davis' answer was interesting, to say the least.

They also spoke about Russian and Zimbabwean production of platinum, and they got onto the topic of other platinum group metals like palladium and rhodium, as well as Dr. Davis’ day-to-day experience in Johannesburg of power cuts and social strife.

Timestamps
00:00 skipping intros is not healthy
02:15 The South African energy crisis
14:00 How the energy crisis influences platinum
19:55 Why the platinum cost of production is rising
25:15 How big will the platinum shortage be?
30:30 Can Russia & Zimbabwe ramp up production?
34:20 Why is the platinum price still down?
38:45 Is this the floor for the platinum price?
42:00 Why is platinum a "green" metal?
47:30 Does hydrogen matter for platinum demand?
52:22 Why is China buying so much platinum?
56:00 Are other platinum-group metals worth looking into?
58:45 The social aspect of platinum

Видео Energy Crisis in South Africa Sparks Platinum Shortage Concerns, says Expert канала Resource Talks