platinum group metals

The Process

The process of manufacturing a catalytic converter is lengthy and complex. After the part is defined by the engineering department of the Client, PGMS, Inc. will develop and implement a sourcing plan that provides the requisite amount of PGM’s when and where they are needed for production of the part. Based on this plan, the PGM’s are purchased from suppliers (mines, recyclers, etc) and consigned (or sold) to the catalyst manufacturer for use in the manufacture of parts.

PGMS, Inc. manages all pre-production activities (developing specifications, process FMEA’s and Control Plans, validation of measurement systems, etc.), production launch and regular production. Standard AIAG practices are followed, with modifications tailored explicitly for the catalyst manufacturing process. The catalyst manufacturer applies the required amount of PGM’s onto the parts and reports to PGMS, Inc. the amounts actually used (with additional pertinent manufacturing quality statistics) on a production Lot basis. Parts are then consigned (or sold) up through the supply chain, and the finished converters or hot-end assemblies are delivered to the engine manufacturer.

Differentiation

How is PGMS Inc. different from "full service" converter manufacturers?

PGMS Inc. offers a unique business process. While other companies can manage portions of the manufacturing process, only PGMS Inc. offers independent, end-to-end management and accountability of PGM assets. PGMS Inc. is the only independent company that offers full service management and asset protection providing transparency, accountability, accessibility and efficiency throughout the process from purchase of the PGM’s to receipt of the finished catalyst element, converter assembly or hot-end exhaust assembly. Key elements of our service are the rigorous tracking and auditing of the catalyst manufacturer. Physically auditing the catalyst manufacturer to validate PGM usage in the manufacture of parts is an essential part of the management of PGM’s.

Platinum Drops Most in Almost 18 Years as Investors Doubt ETF

By Feiwen Rong and Danielle Rossingh

Nov. 22 (Bloomberg) -- Platinum slumped the most in almost 18 years in London, wiping out two days of gains, as some investors doubted the prospect of an exchange-traded fund being introduced for the precious metal.

Platinum, used in jewelry and car-exhaust systems, dropped when speculation about an ETF attracted skepticism that supply may not be enough to support a fund similar to those already available for gold and silver. So-called ETFs purchase and store metal, allowing investors to trade assets without owning them.

US Commodities: Platinum Tumbles On Liquidation

NEW YORK -(Dow Jones)- Platinum futures closed lower Wednesday when lease rates fell and liquidation occurred, while gold and silver futures gave up early gains.

On the New York Mercantile Exchange, platinum has been the big mover in the precious metals lately. Traders have linked the movement to options-related activity and unsubstantiated rumors about a platinum exchange-trade fund. One day after the January futures nearly hit a life-of-contract high when they peaked at $1,289, the contract settled down $65.10 to $1,154 an ounce.

December gold initially rose to $635 a troy ounce but backed off to settle up 30 cents at $629.

Platinum producers not too keen on ETF

By Justin Brown

Johannesburg - The world's largest platinum producers yesterday gave the thumbs down to talk of an exchange-traded fund (ETF) due to the low liquidity in the platinum market and fears that an ETF could overheat an already tight global market for platinum.

Over the past two years, investors have poured $10 billion (R72 billion) into gold ETFs, including the ETF listed on the JSE.

There is also a silver ETF listed in the US.

Anglo Platinum's commercial director, Sandy Wood, said the group was not keen for there to be an ETF launched and such a vehicle would cause platinum stock to be locked up.

Platinum pares early gain to end lower, gold rises

NEW YORK, Nov 21 (Reuters) - Platinum turned south to end lower on Tuesday, as speculation buying and stronger physical demand failed to hold momentum after the metal opened sharply higher for the second day in a row.

Sources said that speculation based on the launch of a platinum exchange-traded fund has become over-inflated, and the lack of liquidity explained the more volatile market.

NYMEX January platinum futures had soared as much as 4 percent to a high of $1,285.00 in earlier trading. It dropped $15.20, or 1.23 percent, to close at $1,219.10. Spot platinum fetched $1,230.00/1,235.00 an ounce, lower than Monday's late quote of $1,251/1,256.

Platinum Climbs to Peak Level, Shares of Miners Rally

NEW YORK (AP) -- Platinum climbed to an all-time high on the New York Mercantile Exchange Tuesday, sending shares of platinum miners sharply higher.

The metal, which is more rare than gold, touched $1,402.50 an ounce in earlier trading -- well ahead of its record $1,335 an ounce set in May. The price of platinum for January 2007 delivery later came down to about $1,225.

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Shares of Montana-based Stillwater Mining Co. jumped $1.03, or 8.4 percent, to $13.31 in afternoon trading on the New York Stock Exchange. Canada's North American Palladium Ltd., which produces both platinum and palladium, saw its shares rise 37 cents, or 4.2 percent, to $9.20 on the American Stock Exchange.

Platinum prices hit 25-year high

Platinum prices have hit highs not seen for more than 25 years, driven by growing demand for the metal in cleaning car exhausts.

Prices have risen nearly 130% over the past four years and now stand at more than $950 per troy ounce.

World demand for platinum is currently outstripping supply.

It is a key component for catalytic converters in car engines, and use is growing as pollution rules are toughened.

Russia and South Africa are the two main producers of platinum.

Those in the metals markets will have noticed the push into metals and I think we'll see more of that
Douglas McWilliams

Platinum prices hit record high

The cost of platinum has hit a record high on rumours that a market is to be opened up allowing traders to speculate on the price of the precious metal.

Prices touched $1,402.50 per troy ounce on the London market, before falling back to $1,390. The previous record of $1,340 was set in May.

Platinum is a key component for catalytic converters in car engines.

World demand is currently outstripping supply and prices have risen 50% in the past year alone.

This is largely due to it being a very limited resource which has an industrial application.

Industrial downside

Russia and South Africa are the two main producers of platinum and its use in catalytic conversions is growing as pollution rules are toughened.