A MASSIVE SHORTFALL
The Anglo American Platinum update shows that normalised cost per ounce of platinum is around R18 000-R19 000, compared with a current platinum rand price of around R14 000. This creates a massive shortfall that needs to be addressed urgently. Being price takers it can only fix the cost side and that is going to have to mean closing more expensive operations. This needs to happen sooner rather than later, but that won’t be easy with unions and government both against the idea.