High PGM prices have raised producers’ profits this year. PGM producers’ revenues in South Africa have risen sharply in 2020, driven by record rhodium and palladium prices and a weaker rand against the US dollar. Despite much higher unit costs in the first half of the year as a result of lower production volumes, all PGM producers have made strong profits. With many operations now back at or close to 100% capacity and South Africa reducing the Covid-19 alert level to level 1 as the country moves into summer, it is likely that 2020 full-year unit costs will be lower than in H1’20.
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