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Platinum price to benefit from risk of industrial unrest

The slump in platinum prices to the lowest level in over six years has forced South Africa’s mining companies to restructure, leading to job cuts. With the situation between labour unions and miners getting tenser, we believe that there is an increasing risk of strike action at South Africa’s platinum mines. The platinum market is already quite tight after last year’s strikes and any disruption to production should prompt a price rally.

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