Platinum price hits records on South African power concerns
Platinum prices hit record levels amid continued concerns over power supplies in South Africa, the source of around 80% of world production.
Platinum prices in London traded above $2,000 an ounce for the second day in a row.
Impala Platinum, the world's second biggest producer of the precious metal, said production was being curbed by power cuts and would fall below 2m ounces in the year to the end of June, from 2.026m ounces the year before.
Shares in platinum-specialist Lonmin - whose operations are all based in South Africa - were up 4% as investors bet the company would reap the rewards of higher prices. Aquarius Platinum gained almost 8%.
(Article continues below)Advertisement
The rise in Lonmin's share price follows a buoyant day's trading yesterday after Goldman Sachs lifted its price target and rating on the company, saying South African power cuts would push up platinum prices.
Goldman said power shortages were likely to disrupt mine, smelter and refinery operations for some years to come, resulting in a tighter platinum market over the next two years.
Gold prices were also higher, reaching $911.47 an ounce in London for immediate delivery. Silver rose to $17.43 an ounce.
