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The shiny trade no one is talking about…

by , 22 September 2017
The shiny trade no one is talking about…
I call it platinum fatigue…

Eight years ago, platinum hit $2,200/ounce.

It subsequently crashed to $800, recovered to $1,500 and dropped back to $800 again in 2016.

Everyone's basically given up on platinum, there's just been too much drama for the metal…

Did you even notice that platinum is up $100 since December 2017?

 
On 26 December 2016, Platinum was at $894 per ounce. Today it’s at $990. That’s mere dollars away from a $100 rise in a month.
 
That means the metal rose by 10.7% in roughly a month!
 
If you are a platinum miner that should put a smile on your face.
 
And the fact that the World Platinum Investment Council says there will be a deficit in platinum supply from 2016-2021, with an average annual deficit of 250,000 ounces is even more reason to be bullish…
 
HSBC Bank expects the platinum price to increase further this year with an average of $1,075 in 2017…
 

Big support for PGMs has just emerged from China

 
On Dec. 23, 2016, under tremendous public pressure, the Chinese government announced that by July 1, 2020, all vehicles in the Chinese market must comply to the tough China VI/China 6 standard, basically equivalent to the current U.S. and E.U. standards. It was barely noticed in the West because of the Christmas holiday. But it was a big one in China, especially in the Chinese social media.
 
China is facing a severe pollution problem, especially in the northern regions. There are studies pointing to car emission as one of the major sources of pollution. However, the Chinese government has been reluctant to implement tougher car emission standards.
 
That’s why I’m excited about the platinum sector’s potential for this year.
 
But I’m not one to hedge my bets on a higher commodity price alone.
 
Which is why a little-known platinum producer is my choice investment in the sector right now. Let me explain…
 

Why Jubilee’s share price is set to double – even if platinum doesn’t go up

 
Jubilee built a new platinum plant in 2016, Dilokong. In the first six months, it made more than R22 million in profit.
 
I anticipate it will make more than R60 million profit in 2017 alone.
 
And as we speak, Jubilee is also in the process of starting up a second plant, at Hernic, like the one I’ve just told you about.
 
This one is nearly twice the size and will generate even more money!

This platinum stock has the potential to double your money and then some, is about to be unlocked

 
Hernic Ferrochrome is the fourth largest ferrochrome producer in the world. And its tailings dump is supposedly the largest chrome tailings dump in South Africa.
 
It has 3.3 million tonnes of material. It still contains some chrome and platinum. And, as Hernic continues to produce more ferrochrome, it also continues to grow this dump by 17,000 tonnes a month…
 
Jubilee will process 55,000 tonnes of material from the dump per month. From this material, it will at least be able to produce enough chrome for breakeven on its operating costs. And on top of that, a whopping 31,000 ounces of platinum a year. The company expects the platinum will be pure profit.
 
Pan African Resources produces platinum from a similar plant. Its cost is $650 per ounce. So, with the platinum price currently at $990 and the rand at $13.50 the profit on 31,000 ounces of platinum is around R142,290,000. On an annual basis that equals 13.9cps…
 
Jubilee currently trades at 73c. It’s as if the market hasn’t even noticed that it’s about to become a major contributor to production in South Africa…
 
Keep your eyes on this share – it’s one of my favourite penny shares for 2017. And I’m eager to see it shoot the lights out as the profits start rolling in from the new plant…
 
Here’s to unleashing real value
 
Francois Joubert



The shiny trade no one is talking about…
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