This case deals with the problems faced by Platmin as he goes to full production at the new quarry near Pilanesberg in South Africa. Platmin came in a very difficult situation, which affects the viability of the operation: The main issue is the rate of production - investment in production, as a rule, it is hard at first, but when the mine starts production, payback loans are usually substantial. Any delay in production has an exaggerated effect on the payback period and, consequently, the viability of the mine. The second important issue is the economic downturn, which has seen the price of platinum will be significantly reduced, but it can benefit Platmin, because it is an inexpensive producer, and the recession has led to some competitors leaving the industry or maintenance operations are not viable at the current price of platinum. On the other hand, while Platmin sees shakeup in the industry, he is under pressure in their fields, and it also has an impact on its financial capital. "Hide
by Robert Grosse Source: Richard Ivey School of Business Foundation 17 pages. Publication Date: June 23, 2011. Prod. #: W11237-PDF-ENG
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