5 miners to benefit from a rising platinum price in 2018

The price of platinum is tipped to rise in 2018.

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The price of platinum is tipped to rise in 2018 and some ASX-listed platinum companies are notching up healthy gains amid the optimism.

The price of platinum is up to around US$970 an ounce, but still a fair way off the highs the precious metal hit early last year when it traded at above US$1,000 an ounce.

Looking further back, the price of platinum still remains a long way off the US$2,000-plus mark it hit in 2008.

But it seems those with stakes in the precious metal might be in for some gains, according to Mining Review Africa.

The publication stated that mining analysts “assert that the platinum group metals market is set for a rally in the price of platinum on improving supply-demand fundamentals”.

“The production base continues to shrink while underlying demand drivers remain more robust than most commentators are factoring in and we expect this trend to continue, despite a slowdown in China,” Mining Review Africa quoted the analysts as stating.

“The current high palladium price further supports this view, as we believe substitution pressure will drive increasing platinum demand.”

Some ASX companies, having enjoyed recent gains, also benefit from renewed optimism in the sector.

The Platina Resources Ltd (ASX: PGM) share price was up almost 13 per cent on Friday.

The company, with mining interests in Australia and Greenland, also announced on Friday that Managing Director and CEO Robert Mosig had resigned.

Nkwe Platinum Limited (ASX: NKP), engaged in the exploration of platinum, also enjoyed healthy gains on Friday.

The platinum company, with a market cap of $52 million, saw its share price gain more than 13 per cent.

But not all companies involved in platinum enjoyed gains.

Zimplats Holdings Ltd (ASX: ZIM) traded flat, while Rimfire Pacific Mining NL (ASX: RIM) and Thundelarra Ltd (ASX: THX) were both down.

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