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IPO market chapters and feasibility studies

A trusted market view from a dedicated team of experts

SFA (Oxford) has supported numerous client listings by providing an independent view of the PGM markets to help secure capital from potential investors. Our market admission chapters (published by the client) detail the supply and demand of PGMs (platinum, palladium and rhodium in particular), and the impact of price and costs. 

Supporting capital-raising initiatives

Our market chapters provide investors with a high-level overview of the PGM markets and cover the key influences driving the markets over the medium to long term. SFA has supported clients' fundraising efforts for projects in South Africa, Zimbabwe and North America and to motivate asset sales. The following sections are covered:

Trends in PGM demand

  • A detailed analysis of demand trends and an assessment of likely global demand over the short, medium and longer term are presented, covering the major PGM end-use sectors (autocatalysis, jewellery, glass, nitric acid, medical/dental) and the investment sector, including ETFs, TOCOM and NYMEX.

  • Special reference is made to the current growing impact of hybrid cars and the introduction of autocatalysis in the heavy-vehicle sector. The environmental legislation affecting global emissions standards, loadings and the substitutability of platinum and palladium in this end-use sector are considered.

  • Observations are also made on the jewellery sector and developments in Chinese and Japanese demand.

Trends in PGM supply

  • SFA's supply analysis addresses historical and current mine output and primary production trends for PGMs, including recent expansions, other projects coming on-stream and projects shelved or postponed.

  • Consideration is given to the grade and geology of PGMs worldwide and metallurgical developments.

  • Our analysis also investigates the long-term supply assumptions for both UG2 and Merensky Reef mine production, along with industry cost structure and appropriate cost curves. PGMs produced as by-products of base metal production and PGM recycling estimates are also considered.

Market and medium-term PGM prices

  • We bring together detailed extrapolations of medium-term supply and demand fundamentals, to present market balances for platinum, palladium and rhodium. An equilibrium pricing model is used to determine a price forecast based on equating projected supply and demand for future years.

  • It is clear that higher prices can induce higher production at existing mines and allow new projects to be commissioned, whereas lower prices can lead to shaft and/or mine closures.

  • Combining our analysis of the industry cost curve (mine closure inducement pricing) with NPV modelling of new junior projects (project incentive pricing) provides the basis for bringing equilibrium to supply-demand fundamentals.

Case studies

Let's discuss your market chapter

Contact one of our team for more details.

Henk de Hoop

Chief Executive Officer

Beresford Clarke

Managing Director: Technical & Research

Jamie Underwood

Principal Consultant

Other PGM consulting solutions

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SFA (Oxford) provides bespoke, independent intelligence on the strategic metal markets, specifically tailored to your needs. To find out more about what we can offer you, please contact us.

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