Latest news with #PlatinumGroupMetals
IOL News
17-07-2025
- Business
- IOL News
30% US tariff hike impact on South African economy
South Africa will be hit with a 30% tariff on all its exports to the United States from August 1, following a formal letter from US President Donald Trump to President Cyril Ramaphosa demanding action on trade imbalances and long-standing market restrictions. Image: Lee Rondganger/IOL RECENT developments in international trade policies have culminated in a significant 30% tariff hike imposed by the United States on South African exports. Such a substantial increase in tariffs is poised to ripple through South Africa's economic fabric, affecting everything from corporate profitability and employment to currency stability and monetary policy. For SA, a country intricately linked to global commodity markets and sensitive to trade disruptions, this move presents both immediate and long-term challenges. The imposition of this 30% tariff by the United States on a broad range of South African imports, effective from August 1, 2025, marks a pivotal and concerning shift in bilateral trade relations. While specific sectors like Platinum Group Metals (PGMs), gold, chrome, and coal are explicitly exempted, and others like automotive and steel/aluminium face different, often higher, rates, this move effectively signals the end of South Africa's preferential access under the African Growth and Opportunity Act (AGOA). Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ 1. Direct impact on South African businesses The SA economy relies heavily on exports, notably minerals (platinum, gold, chrome), agricultural products, and manufactured goods. The imposition of a 30% tariff increase by the US significantly raises the cost of these exports, making South African goods less competitive in the American market. This threat could translate into a decrease in US demand, potentially translating to a decline in sales volumes and revenue for industries for us, given that the US constitutes a key export destination, such as mining and manufacturing. Higher tariffs raise the cost for American importers of South African goods, which often leads to reduced demand or a need to absorb cost increases to maintain market share. For exporters, lower sales directly affect profit margins, potentially forcing cost-cutting measures, including layoffs, which increase domestic unemployment. Small and medium-sized businesses, with less financial resilience, are particularly vulnerable, risking closures amid decreased revenues and potentially an increase in the number of bankruptcies. Several South African industries rely on imported components or intermediate goods from the US or elsewhere. Increased tariffs may compound costs, disrupt supply chains and delay production schedules. Over the medium term, uncertainty regarding trade policies could dampen investment as firms defer expansion or modernisation plans due to unpredictable export conditions. The broader economy also faces indirect effects: reduced foreign exchange earnings can constrain government revenues, limit funding for social and infrastructural projects, and slow economic growth. As exports shrink, the trade balance deteriorates, causing economic activity to decline. 2. Currency dynamics: impact on the rand and the dollar In the short term, the rand typically depreciates in response to negative trade news and waning investor confidence. A 30% tariff hike by the US suggests decreased demand for South African exports, leading to a decline in dollar-denominated inflows. Capital markets may react swiftly, with foreign investors withdrawing or re-evaluating holdings, seeking safer assets. The rand/dollar exchange rate will likely weaken, potentially breaching key support levels, especially if the tariff hike leads to fears of a broader trade conflict or economic downturn. The extent of depreciation depends on market sentiment, existing macroeconomic fundamentals, and the South African Reserve Bank's (SARB) interventions. Continuous depreciations could also escalate, feeding into inflationary regarding US trade policy stability could potentially increase volatility and increase speculative activity in the rand. This uncertainty complicates businesses' hedging strategies and raises the cost of imported goods and capital. 3. Inflationary pressures A weaker rand increases the cost of imported goods and raw materials, directly fuelling inflation if domestic producers pass on higher costs to consumers. The inflationary impact could be significant for South Africa, which relies heavily on imported machinery, fuel, and components. Higher input costs translate into increased prices for domestically produced goods and services, especially in manufacturing, construction, and transportation sectors. This scenario risks triggering a wage-price spiral if inflation expectations become entrenched. The combined effect of imported inflation, increased transportation costs due to weaker currency, and possible supply chain disruptions can lead to a broad-based rise in consumer prices, eroding purchasing power, especially for lower-income households. 4. Monetary policy and interest rate trajectories To counter mounting inflationary pressures, the SARB may consider tightening monetary policy. An increase in interest rates could be employed to anchor inflation expectations, stabilise the currency, and prevent inflation from becoming higher interest rates could dampen economic growth, exacerbate unemployment, and strain indebted borrowers. The delicate balance requires careful calibration, especially given the inflationary impetus from currency depreciation. The tariff increase may lead to rand weakness and potentially a lower demand for SA goods and services, hurting mid-sized businesses the most. These economic changes are likely to impact jobs, leading to an increase in domestic inflation and higher interest rates. Advocate Lavan Gopaul Image: File Advocate Lavan Gopaul is the director of Merchant Afrika. ** The views expressed do not necessarily reflect the views of IOL or Independent Media. THE POST
BBC News
19-05-2025
- Business
- BBC News
Edvars Stancik fled over £4m illegal catalytic converter trading
A businessman fled to Lithuania after making £4.3m from illegally trading in catalytic converters and is still on the run, a court Stancik, who was director of Platinum Group Metals Recycling Ltd which was based in Spalding, Lincolnshire, was found guilty of multiple charges in his absence after he failed to attend his trial at Lincoln Crown Court in September traded catalytic converters on a large scale between December 2019 and September 2021 through the arrest warrant was issued for Stancik and his case was adjourned for investigators to pursue his financial assets but a proceeds of crime hearing on Friday was told he had still not been arrested. Recorder John Hardy KC told the court Stancik, formerly of St Thomas Court, Long Sutton, had "decamped from the country after illegally selling catalytic converters without the required authorisation".The court heard investigators found a likely address for the 31-year-old in Lithuania but he failed to respond. However, extradition proceedings had not begun and the Environment Agency was trying to recover the costs of their inquiry via assets seized from his company. Recorder Hardy ruled Stancik reaped £4.3m from his criminal activity with his company benefiting from a similar court heard assets of nearly £500,000 were available from the company made up of cash in the firm's bank account and seized catalytic only asset is £30,934 from equity in a house he sold before his trial, the court was judge ordered those amounts to be confiscated and ruled more than £100,000 should be paid to the agency in compensation to cover the costs of their said the businessman was likely to face a custodial sentence when arrested and future applications could be made to seize more assets if they were to the agency, Stancik stored the car parts at his home address and at containers in Lime Walk, Long Sutton. The devices were "stored in an irresponsible manner giving rise to an unacceptable risk to human health".The agency's investigation found Stancik and his company had been buying large quantities of catalytic converters and sold at least 71 tonnes of them for recycling. Many of them were found "damaged, exposing their dangerous innards" following a search of his pleaded not guilty to four environmental offences including two counts of causing a company to operate a regulated facility without the necessary authorisation and two of causing a company to commit an Group Metals Recycling Ltd denied charges of operating two waste sites in Long Sutton without the required permits and two counts of storing waste at the same premises without a permit and in a manner likely to cause harm to human health. Listen to highlights from Lincolnshire on BBC Sounds, watch the latest episode of Look North or tell us about a story you think we should be covering here.
Globe and Mail
12-02-2025
- Business
- Globe and Mail
Gold Nears $3,000 Milestone: Undervalued Mining Stocks Set to Soar NGD, PNPN.V, ASM, PLG, YGT.V Amid Precious Metals Boom
As gold prices approach $3,000 per ounce, investors are eyeing undervalued mining stocks poised for major gains. Silver, copper, nickel, and platinum are also experiencing a bullish breakout, driven by geopolitical tensions, central bank gold reserves, and rising industrial demand. Why Gold is Surging in 2025 Geopolitical Uncertainty & Inflation Hedge The U.S. imposed a 25% tariff on steel and aluminum imports, sparking concerns about trade disruptions and inflation. Gold remains the top safe-haven asset, attracting major institutional investment. Central Bank Gold Buying Hits Record Highs China, Russia, and emerging markets have aggressively increased gold reserves as part of a global shift away from the U.S. dollar. Physical Gold Demand Skyrockets The Commodity Exchange (COMEX) reported a record-breaking 52,577 gold contract deliveries, signaling a shift from paper trading to physical gold ownership. Undervalued Mining Companies Benefiting from the Gold & Precious Metals Boom New Gold Inc. (NYSE: NGD) (TSX: NGD) With gold prices surging, New Gold Inc. is one of the most undervalued gold stocks. Its Rainy River and New Afton mines in Canada are ramping up production, making NGD stock a key player in the gold bull market. Gold Terra Resource Corp. (TSX.V: YGT) (OTCQB: YGTFF) Gold Terra is unlocking high-grade gold deposits in Canada's Northwest Territories, positioning itself as an emerging leader among junior gold miners. With the Yellowknife City Gold Project, the company is attracting major investors looking for high-growth opportunities. Silver, Nickel & Copper—The Next Big Investment Opportunities Avino Silver & Gold Mines (AMEX: ASM) (TSX: ASM) Avino is a hidden gem among silver mining stocks, benefiting from both investment demand and industrial silver use. With increasing silver prices and strong production growth in Mexico, ASM stock is one to watch for silver bulls. Power Nickel Inc. (TSX.V: PNPN) (OTCQB: PNPNF) has completed its strategic spin-out, forming two focused mining entities. Effective February 3, 2025, shareholders received one new Power Nickel share and 0.05 Chilean Metals shares per share held. Power Nickel will focus on its high-grade Nisk Project in Quebec. Chilean Metals will develop the Golden Ivan Property in British Columbia and its Chilean assets. CEO Terry Lynch highlighted the value creation for shareholders, with Power Nickel advancing exploration and Chilean Metals preparing for drilling. While Power Nickel remains publicly traded, Chilean Metals will operate as a reporting issuer but won't be exchange-listed. As EV-driven nickel demand soars, Power Nickel's high-grade assets position it as an undervalued stock in the battery metals sector. Platinum & Palladium—A New Era for Industrial Metals Platinum Group Metals (AMEX: PLG) (TSX: PTM) Platinum and palladium prices are surging as stricter emissions regulations drive demand for catalytic converters. Platinum Group Metals is leading exploration efforts, positioning itself as a major player in the global platinum group metals (PGM) supply chain. Final Thoughts As gold nears the historic $3,000 mark and other metals like silver, nickel, and platinum rally, these undervalued mining stocks could be the best investment opportunities in 2025. With strong market trends, increasing industrial demand, and record-breaking central bank purchases, now is the time to watch New Gold (NGD), Avino Silver & Gold Mines (ASM), Power Nickel (PNPN.V), Platinum Group Metals (PLG) and Gold Terra Resource Corp. (YGT.V) for their breakout potential. Investors looking for high-growth mining stocks under $10 should keep a close eye on these companies as the next big winners in the precious metals bull market. Disclaimers: The Private Securities Litigation Reform Act of 1995 provides investors with a safe harbor with regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, assumptions, objectives, goals, and assumptions about future events or performance are not statements of historical fact and may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties that could cause actual results or events to differ materially from those presently anticipated. 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