AngloPlat has a problem and it's only going to get worse (#602)

Summary

In this episode of JSE Direct, Simon Brown discusses various topics including the troubles faced by Anglo Platinum, the performance of leisure stocks, Anglo Gold Ashanti's* acquisition of an Egyptian gold miner, and the impact of two pot withdrawals. He also touches on the future of PGMs, the growth of electric vehicles, and the psychology of markets. 

Takeaways

• Anglo Platinum is facing challenges as Anglo American wants to get rid of their stake, causing a sell-off in the market.

• Anglo Platinum weekly chart
• The PGMs market is uncertain, with palladium and platinum prices experiencing fluctuations.
• The World Platinum Council projects a second year of meaningful platinum deficits, with jewelry demand expected to rise.
• The growth of electric vehicles is impacting the demand for PGMs, but the market is still uncertain.
• Investors should wait for positive price action before considering investments in PGMs.
• Anglo Gold Ashanti's acquisition of an Egyptian gold miner raises questions about the use of equity and the future of gold prices.
• Two pot withdrawals have resulted in over 4 billion rand being withdrawn from the market.
• Leisure stocks, such as City Lodge and Sun International, have mixed performance, with City Lodge experiencing lower occupancy rates.
• The growth of sports betting raises concerns about its impact on poorer individuals and the fairness of the industry.

"Anglo Platinum has a problem which is perhaps a little more unique than just the PGMs."

"There is that initial overhang. A whole lot of people will get Anglo-Platinum shares and say, 'I don't want these' and sell it."

"The World Platinum Council is saying we're gonna have deficit again, that's the important point."

Simon Brown

* I hold ungeared positions.

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Chapters

00:00 Challenges for Anglo Platinum and the PGMs Market 02:22 The Future of PGMs and the Impact of Electric Vehicles 07:54 The World Platinum Council's Projections 09:16 The Diminishing Role of Internal Combustion Engines 11:09 The Impact of Low Prices on Production 14:55 Anglo Gold Ashanti's Acquisition and the Use of Equity 17:56 Pot Withdrawals and their Effect on the Market 19:18 Performance of Leisure Stocks: City Lodge and Sun International 19:42 Concerns about Sports Betting and its Impact 20:10 Upcoming Events: Investment Goals and the Psychology of Markets