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Gold/Mining/Energy : Global Platinum & Gold (GPGI)

GPGI 23.57

-2.9%

Jan 30 3:59 PM EST

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To: Richard Mazzarella who wrote (1654)	2/13/1997 6:49:00 PM
From: Zeev Hed	of 14226

Richard, did they forget that part about price elasticity in your economy class? If the desert sands can indeed fulfill their promise and let say that only IPMCF is in the market at only .1 OTP/ton of PT (forget Pd and the rest) this comes at $350 oz Pt to a cool 1.2 billion per year since their plan (and their earning of their full value in the propery) calls for a 10,000 ton/day facility. The whole PGM complex is $3.2 Bill per year, and I doubt Pt is more than half of that. With this additional supply the price will have to come down, possibly toward Pd's price so as to displace it for instance in cars catalytic convertors. Well, guess what, at such prices the SA mines cannot produce Pt. It is just a commodity like copper and aluminum, when supply exceeds demand, prices drop until the supply is reduced by closing the unprofitable operations. Competition and low cosy production is important. I do not want to contemplate what happens to the price of Pt if GPGI eventually gets to their 1000 ton per days since they have at least 20 times more Pt in their ore than IPMCF. Zeev

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