Outlook for PGMs

Why It Matters

Tight supply and expanding niche demand could drive sustained price appreciation, making PGMs a compelling hedge for investors and a critical input for emerging technologies.

Key Takeaways

• South African PGM supply constrained, no significant new projects
• Ivanplats starts production; only Akaru project remains pending
• Demand growth driven by AI data centers, hydrogen fuel cells
• Rhodium relies heavily on South African output and recycling
• Minor PGMs (ruthenium, iridium) see price spikes from niche uses

Summary

The video reviews the current outlook for platinum‑group metals (PGMs), emphasizing that primary supply—dominated by South Africa—is tightening while new mining projects remain scarce.

Analysts note that Ivanplats has just begun production and the only other pipeline development is Zimbabwe’s Akaru project, insufficient to offset the depletion of existing ounces. Meanwhile, demand is expanding beyond traditional automotive catalysts, buoyed by AI‑driven data‑center storage, hydrogen‑fuel‑cell adoption, and broader consumer shifts in North America and Europe.

Ruthenium, for example, is benefiting from hard‑disk storage needs, while iridium and platinum are gaining traction in hydrogen electrolysis and fuel‑cell technologies. Rhodium continues to dominate auto catalytic converters, with 85 % of supply sourced from South Africa and the remainder from recycling and modest by‑product credits.

These dynamics suggest a prolonged deficit environment, supporting higher prices and attracting investor interest. Without fresh primary investment, the market will rely increasingly on recycling and by‑products, reinforcing the strategic importance of securing diversified PGM exposure.

Original Description

Tharisa has begun underground operations at its South African platinum group metals and chrome mine. The first underground blast took place this week, and development is now underway. The company already has a well established track record of production from its open pit operations and these will continue for some time yet. But the move underground is designed to secure Tharisa's long-term future, and the company is talking about continuing to mine the reef for 60 years. Phoevos Pourolis, Tharisa's chief executive, joins us to tell us more about the underground development, as well as to talk about sentiment around PGMs and chrome, and the new chrome trading facilities that the company has recently put in place.