Thursday, June 13, 2013

Investopedia: Impala Platinum Trying To Survive Multiple Challenges

Being a South African platinum miner is a pretty miserable existence right now. The contract price of platinum has fallen more than 12% over the four months and seems stuck in a trading range of $1,400 to $1,700 an ounce. At the same time, once-great mines are starting to show their age and labor unrest is becoming a serious issue. Add in the risk of expropriation in Zimbabwe, and it's not exactly surprising that Impala Platinum (OTC:IMPUY) (aka “Implats”) shares are at their lowest point in roughly eight years.

The good news is that Impala still has some of the highest-quality assets and reserves in the market, as well as a balance sheet and cost structure that stands out in the field. Were the company to get a little more aggressive in M&A and/or see a recovery in platinum prices, the shares could recover from these lows.

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