Higher Platinum Prices Support African Rainbow Minerals Earnings

Platinum futures climbed above USD 1,870/oz on August 21, reaching an 11-week high as a weaker US dollar and renewed demand for precious metals supported prices. The US dollar came under pressure amid concerns over the US fiscal outlook and investor scepticism about the Treasury’s expanded bond-buyback programme. Lower yields earlier in the week also supported demand for non-yielding assets, while expectations that the Federal Reserve could leave interest rates unchanged in September provided additional support to precious metals. Platinum also continued to benefit from a tight global supply-demand balance, with persistent market deficits and low inventories limiting available metal. Meanwhile, heightened geopolitical tensions in the Middle East and elevated oil prices added to inflation and economic uncertainty, supporting safe-haven and hedging demand. The combination of constrained physical supply and supportive macroeconomic conditions continues to underpin the platinum market, although movements in the US dollar, Treasury yields and interest-rate expectations remain key factors for prices in the near term.

[SMMFlash] Palladium futures rose to around USD 1,350/oz on August 21, extending gains to a one-week high as a weaker US dollar and renewed demand for precious metals supported prices. The US dollar weakened after the US Treasury unexpectedly increased long-dated debt buybacks, with Treasury Secretary Scott Bessent indicating that purchases could exceed USD 4 billion per issue. Lower yield pressures initially supported non-yielding precious metals, while broader gains across the precious-metals complex, with gold on track for a third consecutive weekly gain, provided additional support. However, rising Treasury yields and higher energy prices could limit further gains by sustaining inflation concerns and expectations for tighter monetary policy. Geopolitical tensions between the US and Iran also supported safe-haven demand. Meanwhile, supply-side concerns remained supportive, with lower Russian palladium output and reduced refined production linked to processing disruptions in South Africa adding to the market's underlying tightness.

Diversified miner African Rainbow Minerals (ARM) forecasts that its headline earnings for the financial year ending June 30 will rise by 12%‑22% year‑on‑year to between R3.02 billion and R3.29 billion. Headline earnings per share are projected to increase to R15.44‑R16.82.