Market Wrap - Stock pick — Northam Plats
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Andile Buthelezi from Sentio Capital chose Northam Platinum as his stock pick.
"I'm going for Northam Platinum, recent weakness over the last few months is providing a decent entry opportunity. Decreasing capex profile, increasing production growth into a supportive pgm price environment and all the pg counters in general have fallen over the last few weeks as we've seen some of the vehicle sales data coming out globally. The data has been looking bad but it must be remembered that yes, we have a falling demand for pgms because of Covid, but we also have a fall in supply as a lot of the mines are not able to operate at 100% of the normalised levels. This fall in demand and supply is what is keeping prices where they are at the moment."
"I'm going for Northam Platinum, recent weakness over the last few months is providing a decent entry opportunity. Decreasing capex profile, increasing production growth into a supportive pgm price environment and all the pg counters in general have fallen over the last few weeks as we've seen some of the vehicle sales data coming out globally. The data has been looking bad but it must be remembered that yes, we have a falling demand for pgms because of Covid, but we also have a fall in supply as a lot of the mines are not able to operate at 100% of the normalised levels. This fall in demand and supply is what is keeping prices where they are at the moment."
