New York, NY (PRWEB) September 03, 2012
In a recent Penny Stock Detectives article, editor Sasha Cekerevac reports that recent labor issues in several nations have hurt supply and production of precious metals. As a result, Cekerevac notes, there is a supply reduction of precious metals being producedthis could be a long-term positive for platinum junior mining stocks like Platinum Group Metals, as Cekerevac forecasts precious metals prices will move up, but demand will be maintained or, likewise, move higher.
There are many smaller penny stocks looking at exploring for precious metals, such as platinum, Cekerevac outlines. The upside to these penny stocks is that if they do find a large supply of platinum, their shares would skyrocket up.
Cekerevac states one of the interesting penny stocks in the platinum and precious metals space is Platinum Group Metals, which has recently issued some progress reports.
Citing the firm, Cekerevac reports that as of July 12, 2012, the stock had a cash position, of approximately $ 60.0 million. The stocks main asset is its 74% share of Project 1 Platinum Mine, in South Africa, which the firm estimates should produce 275,000 ounces of platinum group precious metals per year. Platinum Group Metals has a forecasted budget of $ 100 million and is currently in the final process of a proposed senior loan facility for $ 260 million for the construction and completion of its Project 1 mine.
For junior mining stocks in the precious metals sector, obtaining enough financing to complete the development of a mine is crucial, states Cekerevac. As in any business, even if the plan is solid, not having enough capital could be extremely hazardous to investors.
Platinum Group Metals has pulled back slightly from the recent high, as concerns over exploration work and financing have taken the stage. Pointing out the companys recent developments, Cekerevac suggests investors still wait to see more results from the firms drilling program and to see the completion of the financing package before buying.
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