Platinum Gold Ratio Just Breached 20 Year Low 0.78 Catalytic Demand Price South Africa Jewelry

The recent dive in platinum prices is forcing miners to turn to shallow, highly mechanized new mines.  "65% of South Africa’s platinum operations are unprofitable at current prices".  Making matters worse is the price of electricity - up threefold since 2008.  In 2014 South African platinum production dropped 10% to less than four million ounces - by comparison the country produced 4.8 million ounces in 2011.

But industry demand remains strong having eclipsed eight million ounces last year for just the second time in history, and with South Africa being home to 95% of global reserves, production issues in the country will swing supply/demand in the wrong direction in upcoming years.

platinum versus gold

Demand - platinum is more widely used industrially (catalytic/automotive as well as laboratory equipment)

Supply - depends more on recycling than any other metal - 2.1 vs 5.7 million ounces (total demand ~ 8M ounces per year).  But there are concerns over production - demand for platinum is known to fall during times of economic uncertainty which is more true today than at any other time in past fifty years.  Volkswagen diesel scandal is also weighing down prices - diesel vehicles may not be as popular in the future meaning less demand for catalytic converters - which account for 40% of platinum demand.

Just last month an HSBC metals analyst said he expects "platinum to trade above gold next year"  A discounted platinum price will boost jewelry demand allowing it to take market share away from gold.


Analysts see platinum at $1150 in 2016, $1300 in 2018.

Bombardier Flight Test Delay Ok With Customers, BlackBerry (BBRY) Developing New Sources of Revenue Infotainment

Bombardier (BBD.B) cseries delay not a problem for customers
Airlines Lufthansa (fra:LHA) and Odysey have firm orders for 30 and 10 cseries aircraft, respectively;  Lufthansa also has an option for 30 more; that represents 23% of all orders.  First flight was suppose to have occurred back in June 2014 but software upgrades pushed the date back to September 16, 2014.  That date was eventually scrapped in favor of one 15 months later- December 2015.  Engineering is not the problem (already done / confirmed by key customers) rather, the certification process overseen by Transport Canada is to blame as it is time consuming especially since it involves a new United Technologies Pratt & Whitney engine.  The flight test program is scheduled to be 2400 hours long with only 159 logged thus far.  According to Odyssey Airlines, when ready the Bombardier cseries plane will have a flawless entry into service with airlines, making long delays justifiable.

The c100 will cost 15% less to operate versus similarly sized planes (110, 130 seater).  The c300 will seat 20 more passengers than the c100.

Russia crisis affects $3.4 billion Q400 turboprop contract between Bombardier and state owned Rostekhnologii. - Sanctions tabled by the US and Canada prevent Bombardier from moving forward with the contract.  In 2013 Russia accounted for only 1.4% of company revenue ($250m), this deal is pivotal for boosting sales to the region.  Russia is an expanding market and key member of the BRIC group of nations.  In my opinion this is a deal the company must hang onto.

BlackBerry's QNX platform superior to Apple IOS ?

Last month Apple revealed something somewhat surprising:  Apple's new in car operating system Carplay- which enables iPhone to power the infotainment, is actually built on BlackBerry's qnx platform.

"Connectivity to smartphones and other mobile devices is a key strength of qnx Software Systems’ platform", "We have a long-standing partnership with Apple to ensure high-quality connectivity with their devices, and this partnership extends to support for Apple CarPlay".

with automakers Toyota (TM), BMW, GM and Ford (F) already designing their vehicles to be compatible with qnx software it seems inevitable that, as the technology increases in popularity BlackBerry is going to develop a significant new source of revenue.
Also in March:  US department of defense approves BlackBerry Full Operational Capability software to run on government networks.

The week prior to this, the US National Institute of Standards and Technology (NIST) approved BlackBerry's iOS and Android Secure Work Space mobile service for use by the US and Canadian governments- allows IT managers to create a separate area on any iOS or Android device that's managed by Blackberry Enterprise Service 10.  The partnership with Android is another way BlackBerry is increasing revenue stream and future cash flow.

Blackberry About To Make Up More Ground In Smartphone Battle

The new BlackBerry Z3 is a low cost device (under $200;  Samsung and LG rely on low end devices for their sales growth).
Indonesia will be the first country in Asia to get it / Z3 is the first phone manufactured by contract partner Foxconn.