Asset manager Ninety One struck a positive note for locally listed platinum group metal (PGM) stocks in a recent report, saying they were under-bought on the basis that the introduction of battery electric vehicles (BEVs) does not immediately spell the end of the internal combustion engine.
Vehicles powered by internal combustion engines need PGMs in their autocatalysts whereas BEVs don’t. However, Ninety One’s portfolio managers, Unathi Loos and Daniel Sacks, think adoption of BEVs will be a gradual process. In addition, science is finding ways to accommodate PGMs in other ways, specifically, in hydrogen-powered fuel cells, which need PGMs to work.
It all adds up to the prolonged relevance of PGMs that, coupled with the short-term inability of PGM miners to meet demand expansion, asks questions of the current ‘end-of-the-cycle’ (fin de siècle) discount that Ninety One believes is being applied to PGM stocks.
“A re-rating of PGM shares is due, as metal prices remain ‘stronger for longer”, in our view,” said Loos and Sacks. PGM companies’ balance sheets and cash flow statements support increased dividends, and even buy-backs, they said.
Denne historien er fra 25 June 2021-utgaven av Finweek English.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra 25 June 2021-utgaven av Finweek English.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
THE HEALTH OF SA'S MEDICAL SCHEMES
As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.
The effect of Gilbertson's departure
With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.
Making money from music
Why investors are increasingly drawn to the music industry.
Conviction is key
Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.
The post-pandemic toolkit
How CFOs can use technology to support growth.
Big city living exodus
Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.
Big compact, big value
Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.
On barriers to entry
There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.
Fear and greed in one index
To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.
Africa's largest data centre facility coming soon
Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.
