Afriforesight: The PGMs are not dead

The platinum group metals (PGM) sector has been through a tumultuous period, with prices battered and companies facing various challenges. However, recent gains in JSC listed PGM stocks have sparked hope that the sector may be on the cusp of a turnaround. Kirthi Ramdhanee, Chief Sustainability Engineer at Afriforesight, recently shared insights in a CNBC Africa interview, shedding light on why PGMs are not dead and outlining key factors shaping the industry's outlook. Ramdhanee highlighted a positive sentiment in the PGM space, pointing to increasing demand and anticipated supply constraints in 2024. The automotive sector, a significant driver of PGM demand, is expected to see a pickup as interest rates ease, encouraging consumer spending on newer vehicles. Additionally, the shift towards electric vehicles (EVs) has been slower than initially projected, with internal combustion engine vehicles and plug-in hybrids continuing to drive PGM usage. Despite challenges such as supply chain disruptions and geopolitical tensions, particularly with Russia, Ramdhanee remains optimistic about the gradual recovery of PGM prices and the industry's resilience. With South Africa playing a pivotal role in global PGM production, mining companies are poised to capitalize on the improved price environment by investing in existing projects and expansion plans. While uncertainties persist, including the ongoing conflict in Ukraine and its implications on Russian PGM supply, the overall outlook for the PGM sector appears cautiously optimistic, signaling a potential resurgence in the near future.