New York, NY (PressExposure) May 01, 2012 -- New York, NY (PRWEB), May 1, 2012 - According to Sasha Cekerevac, co-editor for Penny Stock Detectives, 80% of all platinum production comes from South Africa, but the strikes and closing of mines there are reducing worldwide supply. In a recent Penny Stock Detectives article, Cekerevac argues that, with demand exceeding supply in 2012, junior mining stocks that find platinum will skyrocket, because the price of platinum is set to outperform gold due to its short supply.
One of the penny stocks in the platinum and precious metals space that Cekerevac is particularly interested in is Platinum Group Metals. "This is one of the penny stocks involved in exploring for platinum that has recently issued some progress reports," says the editor.
Several months ago, Cekerevac mentioned that he thought many investors were rushing into junior mining stocks too fast. He advocated waiting to see further developments, especially in Platinum Group, one of the younger junior mining stocks.
According to Cekerevac, there have been several new developments, including on April 4, 2012, when the South African government issued formal mining rights to Platinum Group for its Project 1 mine. The mine is still subject to environment assessment, among other compliance issues, says Cekerevac, but getting formal mining rights is a necessary step for any junior mining stocks and allows the firm to continue the development of the property.
As reported in Cekerevac's Penny Stock Detectives article, Project 1 has a budget of $100 million and is estimated by the company to produce, once operational, approximately 275,000 ounces of platinum per year. Phase 1 of this mine's development is on budget and will most likely conclude in the fourth quarter of 2012, at which time Phase 2 will begin, says Cekerevac. The firm expects the first ore production to begin in late 2013, with sales in the middle of 2014.
Platinum Group also is working on other projects, according to Cekerevac, as it has 10 drill rigs on its other two other properties. The results of these drill findings are not yet known, but Cekerevac notes that he is certainly watching with interest.
The analyst reminds us that penny stocks involved in precious metals can offer a large potential reward, but also possess serious risks. The precious metals sector does have potential pitfalls, so Cekerevac says he tends to be very careful about what junior mining companies he invests in. Platinum Group has pulled back slightly from the recent high and bounced nicely off its 200-day moving average. Cekerevac would definitely like to see more information regarding the company's progress and results of the new drilling before jumping in.
Published every business day, Penny Stock Detectives researches and analyzes low-priced opportunities in the stock market and individual stock market sectors. Penny Stock Detectives reports on penny stocks, small-cap stocks, micro-cap stocks, high-profit potential plays mostly under $10, and the stock market in general.
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The editors of Penny Stock Detectives believe low-priced stocks, when researched properly, present investors with great opportunities to accumulate wealth and to increase the value of their investment portfolios. You can learn more about Penny Stock Detectives at http://www.pennystockdetectives.com.
Sasha Cekerevac, BA, and Danny Esposito, B. Comm., lead editorial stock analysts at Penny Stock Detectives, in conjunction with stock market guru George Leong, B. Comm., have just updated their breakthrough video, If You Missed Apple, Shame on Us; If You Miss This...highlighting a company these stock analysts believe looks very similar to Apple Inc. in its early days. To see the video, visit: [http://www.pennystockdetectives.com/video/pt/index.php?sb=PRESS].