Northam Platinum Limited (JSE:NHM)

PA Dunne
Market Cap (AUD): 76.42B
Sector: Basic Materials
Last Trade (AUD): 173.99 +0 (+0%)
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1. About

Northam Platinum Limited (JSE:NHM) is a primary producer of platinum group metals (PGMs). The principal consumers of PGMs are the motor-manufacturing and jewellery industries.

Northam is an independent, fully empowered, integrated PGM producer. All operating mines and recycling operations are wholly owned. Our aspirational target is to produce 1 million oz 4E pa.

The products and their uses

Northam’s primary products are the three main platinum group metals (PGMs) – platinum, palladium and rhodium. The primary consumers of these metals are the motor manufacturing industry, the jewellery industry, and other industrial sectors.

In the automotive sector, PGMs are used in exhaust systems, specifically in autocatalysts, which help to reduce the noxious and greenhouse gases which are released into the atmosphere. Platinum jewellery has traditionally had huge appeal in Asia; the global jewellery sector accounted for uptake of approximately 23% of platinum demand in 2016. Other industrial uses range from chemical and electrical applications to glass manufacture.

PGMs are traded on international markets where the metal prices are determined by global supply and demand, and are US dollar-denominated. The metal is sold in sponge or ingot form to customers in the US, Europe and the Far East.

PGMs have recently also attracted investment appeal, with the launch of Exchange Traded Funds, which gives investors exposure to physical metal holdings.

It is estimated that one-fifth of everything we use either contains platinum or requires platinum in its manufacture.

2. Business model

3. Strategy

4. Markets

5. Competition

6. History

7. Team

8. Financials

9. Risk