Johannesburg, South Africa — MININGREVIEW.COM — 15 October 2008 – Anglo Platinum (Angloplat) – the world’s top producer of the metal – does not plan to trim output because of lower prices – in fact the company expects a rebound on fundamentals.
CEO Neville Nicolau told Reuters in an interview here that the metal’s price was currently at the mercy of high emotions whipped up by the global credit crisis. He expected that the price would rise to between US$1 200 and US$1 300 an ounce in the long term.
“The price has overshot on the downside due to the global credit concerns, and this does not relate to fundamentals,” he said.
“We all agree that the plus US$2 000 levels of earlier this year were neither sustainable nor desirable. In the long term, we see the price at between US$1 200 and US$1 300 an ounce,” he reiterated. “The market will correct itself soon, but a weaker rand currency will compensate for the lower price,” said Nicolau.
“We manage our business according to the demand,” he continued. “The market has reacted on partial information. Motor vehicle sales may be down but jewellery demand is up. We look carefully at demand and think the price is emotional with people saying ‘oh, the world is bad’ and things like that,” he said. “We are not cutting production volumes or anything like that.”
“The market is very volatile, but we won’t make short-term decisions based on this volatility,” Nicolau concluded.