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PGM:TSX-V
applications, medicine, dentistry, jewelry and
fuel cell technology. Having averaged just over
US $1,000/oz between 2007 and 2012, the price
gap between platinum and palladium has contin-
ued to narrow and is now around only US $100.
Reuters believe that it is only a matter of time
before the palladium price overtakes the platinum
price.
Platinum jewellery demand declined by 12%
in 2016 to reach 2.18 Moz (67.7 t) with China
accounting for the bulk of this contraction, hin-
dered by a softer economy and a market share loss
to gold 18-carat jewellery.
The majority of platinum and palladium pro-
duction comes from South Africa's Bushveld
Igneous Complex. Ivanhoe Mines Ltd. [IVN-TSX;
IVPAF-OTCQX] is investing in the Platreef Project
located in the northern limb of the Complex and
has just completed a feasibility study on the proj-
ect with key features that include:
• Indicated mineral resources containing an
estimated 41.9 million oz of platinum, palladium,
rhodium and gold with an additional 52.8 mil-
lion oz of platinum, palladium, rhodium and gold
inferred
• Enhanced mineral reserve containing 17.6
million oz platinum, palladium, rhodium and gold
• Development of a large, safe, mechanized,
underground mine with an initial 4 Mtpa concen-
trator and associated infrastructure
• Planned initial average annual production
rate of 476,000 oz platinum, palladium, rhodium
and gold plus 21 million lb nickel and 13 million lb copper
• After-tax Net Present Value (NPV) of US $916 million, at an 8% discount
rate and after-tax Internal Rate of Return (IRR) of 14.2%
Also in South Africa, Platinum Group Metals Ltd. [PTM-TSX; PLG-NYSE
MKT] WBJV is developing the Waterburg Project, one of the few large pal-
ladium dominant deposits in the world. The project resources consist of 60%
palladium and a Pre-Feasibility Study estimates that Waterberg will pro-
duce 472,000 oz palladium annually or about 6% of the world's palladium
production.
The remaining precious metals namely ruthenium, rhodium, iridium and
osmium are extremely rare and produced only in very small quantities (less than
50 tonnes annually combined), largely as by-products in platinum and palladium
recovery. They have small industrial uses in similar applications as platinum and
palladium.
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