CIBC slashes platinum forecast

An expected surge in the price of platinum failed to materialize in 2014 because of a strong U.S. dollar and weak South African rand, say mining analysts with CIBC World Markets, who are slashing their platinum price forecast for 2015.

Despite a more than five-month-long strike by platinum miners earlier this year in South Africa, platinum prices have declined by about 7% from the start of the year, from US$1,400 per oz to US$1,200.

“Having had an almost six-month break in at least 60% of the South African supply base and still looking at lower prices was simply not expected,” reads a Nov. 19 report by CIBC mining analysts Leon Esterhuizen, Arnold Van Graan and Ben McEwen.

The analysts have downgraded the entire platinum group metals (PGM) sector to “market weight” from “overweight,” noting it has been “a great disappointment” this year.

Read the complete article at NorthernMiner.com/news/cibc-slashes-platinum