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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (31062)	1/12/2009 12:30:34 PM
From: LoneClone	Read Replies (1) \| Respond to of 194002

Investec cuts platinum forecast on soft demand outlook miningweekly.com By: Reuters Published on 9th January 2009 South African investment bank and asset manager Investec cut its 2009 and 2010 price forecasts for platinum, palladium and rhodium, citing a downturn in demand from industrial users such as carmakers. "The platinum price has rallied in the last few weeks, but a weak rhodium price and strengthening rand mean the platinum group metal basket price remains low and a number of mines are still losing money," said Investec analyst Rebecca O'Dwyer in a research note. "We see downside risk to the platinum price in the near-term, particularly if vehicle sales continue to decline in the first few months of 2009." The bank said it now sees platinum prices at $970 an ounce in 2009 and $1 350 an ounce in 2010, down from previous forecasts of $1 350 and $1 675 an ounce respectively. It expects palladium prices of $220 an ounce in 2009, down from a previous forecast of $318, and sees the metal at $250 in 2010, against $350 previously. Investec also slashed its rhodium price estimate for 2009 to $1,350 an ounce from $5,625, and for 2010 to $2,250 from $6 425. However, the bank left its long-term forecasts for platinum and palladium unchanged at $1 300 and $350 an ounce respectively. The bank said this reflected its view that while 2009 will be "a difficult year for vehicle sales,... on a longer term perspective, the fundamentals for platinum group metals demand remain very attractive." Spot platinum was quoted at $988/993 an ounce at 11:31 GMT, against $990,50 late in New York on Thursday. Palladium was at $193,50/198,50 an ounce from $194,50.