11 Platinum Stocks to Help Your Portfolio Shine

I remember back in 1995 and 1996, gold and platinum were both selling for around $400 an ounce. Now gold is selling for around $972 per ounce, a a little more than double. Yet platinum is now over $2,000 per ounce, a quintupling in price.

Platinum has the following characteristics:

It is thirty times rarer than gold.

The top producer is South Africa, then Russia, then Canada.

There is a large amount of platinum on the Moon.

Platinum complexes are used in the treatment of cancers.

King Louis XV of France declare it the only metal fit for a king.

It is used in the manufacture of jewelry, electronics, dentistry, lab equipment, and automobile emissions controls.

Here are some stocks that participate in the mining of platinum:

Anglo American PLC (AAUK) which trades on NASDAQ, is a miner of platinum, gold, diamonds, coal, and industrial minerals. The stock has a P/E of 12, a forward P/E of 19, and pays a yield of 2.6%. It has a market cap of $86 billion.

Anglo Platinum (AGPPY.PK) produces platinum, palladium, rhodium, ruthenium, iridium and osmium. It has a market cap of $37 billion, and a net profit margin of 24%.

Anooraq Resources Corporation (ANO) is a Vancouver, Canada-based mining company involved in the exploration of platinum group metals in South Africa. The company recently reported diluted earnings per share of negative $0.03 per share.

Aquarius Platinum (AQPBF.PK) mines for platinum, palladium, rhodium and gold in South Africa and Zimbabwe. The stock has a market cap of over $4 billion, and a P/E of 18.7.

Impala Platinum (IMPUY.PK) is a miner of platinum group metals, also known as PGMs, including platinum, palladium, rhodium, ruthenium, and iridium. It operates in South Africa and Zibabwe. This company, which has a $26 billion market cap, has a 28% profit margin.

JSC MMC Norilsk (NILSY.PK) is a Russian miner of platinum, palladium, copper, nickel, cobalt, rhodium, silver, gold, tellurium, selenium, iridium and ruthenium. The market cap is $56 billion, and the net profit margin is over 49%.

Lonmin PLC (LNMIY.PK) is a South Africa-based miner of platinum group metals. They have a market cap of almost 11 billion and a PE of 34.

North American Palladium (PAL) which trades on the American Stock Exchange , mines for palladium, platinum, gold, copper and nickel. The stock had negative earnings per share of $0.46 per share, with a market cap of $383 million.

Northam Platinum Pty (NMPNF.PK) mines for platinum, palladium and rhodium in South Africa. The stock has a net profit margin of 31.5%.

Stillwater (SWC) which trades on the New York Stock Exchange, is based and operates in Montana. It mines, refines, and sells palladium and platinum. The stock has a forward P/E of 16.

Jubilee Platinum (JUBPF.PK) is a London-based company that explores for platinum and other minerals. The stock has a $73 million market cap.

Disclosure: The author does not own any of the above.

Comments

[Cubbybear:]

Hi, you are missing a great opportunity in your list called Premium Exploration, PEM:TSX-V , they have a PGM play in the Stillwater complex in Montana. Contact the company by emailing ckopr@premiumexplorati... who will send you the latest assays results. The have platinum, rhodium and palladium at the Chrome Mountain. My understanding is that there palladium to platinum ratios are close to equal which makes the argument they have more platinum than other producers.

2008 Mar 09 06:49 PM

[Bingo 2:]

You can not even get a profile on AAUK. it does not indicate a dividend and has very little information to go with it. Can not invest in the unknown!

2008 Mar 10 09:08 PM

[d_teller:]

Qick note to Bingo 2: Go to BNYADR.com (Bank of New York- Mellon) an ADR sponsor, or CitiBank, which have info and all the financials for any ADR/ADS in the U.S. markets, regardless of what exchange their shares are traded at.

Occasionally, and recently due to Sarbanes-Oxley filing requirements, an ADR will "DeList" and cease to trade through the ADR system. One recent example was Suez, the giant French utility., but its stock still trades as "SZEZY" via Pink Shhets at the Nasdaq ... and info is available, in English!.

2008 Mar 11 02:17 PM

[Ames Tiedeman:]

Platinum is now 800 and worth a look.

2008 Dec 13 12:44 PM