Anglo American Platinum ( Amplats) is t he world ’s largest producer of platinum group metals (PGMs) and is 80% owned by Anglo American Plc. Amplats produces 70% of the world’s platinum and holds about 80% of its reserves. It has the ability to raise capital on both the South African and London capital markets through either the Anglo American or Anglo Platinum brands. Besides its position as the world’s primary producer of PGMs, Amplats also sits on the l argest proven platinum reserves of any of its peers – placing the group in a strong position to maintain and even increase production without requiring large capital.
On the chart, Amplats broke out of its four-year bear trend in September 2013 and has maintained a steady uptrend since the beginning of the year. But marred by a string of violent strikes, and still undergoing one of its longest forays, Amplats is trading sideways within a symmetrical triangle on its weekly chart. About 70 000 Amcu members downed tools in January at mines run by Amplats, Implats and Lonmin to demand that their basic wages be more than doubled to R12 500 a month. This has hit 40% of global production of the precious metal used for emissions capping catalytic converters in automobiles.
Though the demand for platinum has dropped, the need for the metal is ubiquitous. Platinum is used to make LCD screens for televisions and com-