- Platinum prices have recently reached their highest levels in more than two years.
- Palladium has also seen renewed interest as industrial demand stabilizes and inflation pressures persist.
- Platinum Group Metals Ltd. stands out due to its advanced-stage project, strong partnerships and commitment to innovation.
In recent weeks, platinum and palladium prices have gained considerable momentum, driven largely by a resurgence in demand from China’s jewelry sector and increasing concern over global supply constraints. Platinum Group Metals (NYSE American: PLG) (TSX: PTM), a development-stage mining company focused exclusively on platinum group metals (“PGMs”), is well positioned to capitalize on these favorable conditions. With a strong asset base and an advanced development project in South Africa, the company is pursuing a strategic path toward becoming an important supplier in a resurging PGM market.
Platinum prices have recently reached their highest levels in more than two years, trading above $1,095 per ounce, up more than 20% year-to-date (https://ibn.fm/GAzra). This rally has been fueled by a notable uptick in Chinese demand, particularly for platinum jewelry, which had previously lagged behind gold due to shifting consumer preferences. According to the World Platinum Investment Council (“WPIC”), China’s jewelry demand for platinum is expected to grow by 5% in 2025, reaching approximately 2.1 million ounces, as consumers take advantage of platinum’s price discount relative to gold. The shift follows a significant run-up in gold prices, leading value-conscious buyers back to platinum, which many consider to have similar aesthetic appeal and long-term intrinsic value (https://ibn.fm/m69AL, https://ibn.fm/cXDkM).
At the same time, palladium — a sister metal to platinum and an essential component in automotive catalytic converters — has also seen renewed interest as industrial demand stabilizes and inflation pressures persist (https://ibn.fm/Ww9BQ). China’s continued investment in automobile production, alongside gradual post-pandemic global recovery in vehicle manufacturing, has supported palladium’s rebound. Moreover, both metals are integral to emerging technologies such as hydrogen fuel cells and next-generation batteries, adding future demand potential beyond traditional uses.
Against this backdrop, Platinum Group Metals is making meaningful strides through its flagship Waterberg Project, a large-scale palladium-dominant deposit located on the Northern Limb of South Africa’s renowned Bushveld Igneous Complex. The company holds an effective 50.16% interest in the project, which is joint ventured with industry heavyweights Impala Platinum Holdings Limited (“Implats”), Hanwa Co. Ltd. and the Japan Organization for Metals and Energy Security (“JOGMEC”).
The Waterberg Project represents one of the few large-scale, greenfield PGM developments globally and is uniquely designed for mechanized, bulk underground mining. This differentiates it from traditional labor-intensive operations and makes it more attractive from a cost, safety and scalability perspective. A 2024 update to the Definitive Feasibility Study (“DFS”) outlined a 20% increase in proven and probable mineral reserves, extending the mine’s estimated life from 45 years to 54 years and confirming 23.4 million 4E ounces (platinum, palladium, rhodium, and gold) in reserves (https://ibn.fm/IBshz). The DFS also cited an after-tax net present value (“NPV”) of $569 million and an internal rate of return (“IRR”) of 14.2% using long-term consensus pricing, figures that underscore the project’s economic viability.
Beyond mining, Platinum Group Metals is investing in the future of PGMs through its partnership with Valterra Platinum to develop next-generation battery technologies (https://ibn.fm/DAcyx). This collaboration is focused on leveraging PGMs in energy storage applications, specifically targeting advancements in lithium-sulfur battery technology. Such innovations could open up entirely new demand verticals for platinum and palladium, aligning with global decarbonization trends and increasing interest in alternative energy storage systems.
While many mining companies are still navigating the regulatory and funding challenges of bringing new operations online, Platinum Group Metals stands out due to its advanced-stage project, strong partnerships and commitment to innovation. As global markets look to diversify away from risky supply chains and reduce dependence on any single geographic source, the Waterberg Project’s location and development plan make it a strategically important resource in the global PGM landscape.
The company’s progress is well timed. With China’s demand for platinum jewelry showing strong signs of recovery, and both platinum and palladium gaining traction across industrial and clean energy applications, the market outlook is increasingly favorable for companies capable of delivering high-quality supply. Platinum Group Metals is not only responding to today’s demand surge but also preparing to support the next phase of global economic and technological evolution with responsibly sourced, strategically important metals.
For more information, visit www.PlatinumGroupMetals.net.
NOTE TO INVESTORS: The latest news and updates relating to PLG are available in the company’s newsroom at https://ibn.fm/PLG
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