Replies to post #41 on Eastern Platinum Ltd (ELR)

[goforthebet]

Platinum Climbs to Two-Week High on Relative Cheapness to Gold

By Glenys Sim

Oct. 7 (Bloomberg) -- Platinum climbed to a two-week high in Asia after the metal traded at its lowest level in a month relative to gold, prompting investors to buy the white metal and sell the yellow one.

Platinum traded at 1.2614 times the price of gold yesterday, the lowest ratio since Sept. 2. The ratio, which averaged 1.78 times last year and peaked at 2.382 times, reached a high of 1.3923 in May this year, according to Bloomberg calculations.

The relative small price difference between the two metals “is helping to support” platinum prices, said Jonathan Barratt, managing director at Commodity Broking Services Pty in Sydney. “I would expect some follow-through on platinum group metals in the next 24 hours.”

Platinum for immediate delivery rose as much as 1.9 percent to $1,339 an ounce, the highest price since Sept. 23, and last traded at $1,337 at 2:36 p.m. in Singapore. Gold fell as much as 0.5 percent today, after reaching a record $1,043.78 an ounce yesterday.

“It is not racing ahead,” said Barratt, referring to platinum. “It is still under priced.”

Palladium gained as much as 2.3 percent to $315 an ounce, the highest since Aug. 14, 2008, as the dollar weakened and equities rose. It traded at $314.50 at 2:43 p.m. in Singapore.

Asian stocks today extended a global rally on speculation third-quarter earnings will top estimates and growing optimism the global economy is recovering.

A “riskier” market like palladium would gain as appetite for higher-risk investments improves, according to Credit Suisse Group analyst Stefan Graber. “The break of the $300 mark spurred further buying,” he said.

To contact the reporter on this story: Glenys Sim in Singapore at [e-mail]

Last Updated: October 7, 2009 03:30 EDT

[sumisu]

Eastern Platinum sees Q3 pgm production slide at CRM 8th October 2009

Source: Eastplats Reports Operating Results For The Quarter Ended September 30, 2009 (07/10/09)

Eastern Platinum revealed yesterday (7th October) that pgm production at its flagship Crocodile River Mine (CRM) fell by ten per cent during the third quarter of 2009.



In the three months to 30th September, output at the South African site was 29,874 oz, in comparison with the figure of 33,383 oz recorded in the previous quarter.

The company attributes the decline - which also represents a three per cent year-on-year fall - to the dismissal of mining contractors whose employees were involved in illegal strikes at CRM in July.

"After a disruptive period in July and early August at CRM, we have recovered extremely well," said Chief Executive Ian Rozier.

"The extensive on and off-reef development carried out during the last year [has] positioned the mine well for both the short-term production ramp up back to Q2 levels and for the ongoing production build-up at the mine."

Eastern Platinum revealed that the strikes - which saw a limited number of companies approached to provide replacement workers - also impacted concentrator recovery levels.

The figure of 78 per cent garnered from the run-of-mine circuit represented a slight downturn from the 80 per cent total achieved during the preceding three months.

However, full production has now resumed and the company also welcomed the first full quarter of output from its pgm and chromite tailings remining section.

Eastern Platinum is a Canadian firm that was formed in 2003 and has since acquired interests with combined pgm resources of over 85 million ounces.