Smelting firm Braemore Resources has broken platinum companies' silence over the falling price of the precious metal and has suggested the industry is in for a tough year ahead.

The platinum price hit an all-time high early in 2008 in the midst of January's Eskom power crisis in South Africa, with fears over supply subsequently soaring.

However, the spike has since been redressed sharply as car sales volumes across North America and Europe have declined, thus cutting demand for platinum-based autocatalysts.

Now Braemore has explained in its annual results statement: "The resources sector faces a period of uncertainty.

"The market turbulence over the past year has been predominantly driven by the subprime crisis, rising oil prices and global recession concerns which continue to affect sentiment for industrial metals such as [platinum group metals] and nickel."

Although the spot price has fallen from $2,059 per oz to $1,095 per oz within two months, Braemore claimed that the price should remain strong, underpinned by Asian car manufacturing and new mobile phone applications.

The company also believes that its $11.7 million fundraising in July and its recent listing on the Johannesburg stock exchange should safeguard its financial position in the coming year.



Source:

Braemore blames recession for bleak outlook (30/09/08)
http://www.ft.com/cms/s/0/d4436bda-8e75-11dd-9b46-0000779fd18c.html