The South African government has previously threatened to revoke mining licenses of company that mull job cuts, but as Attard Montalto points out, it is hard to envision miners, platinum or otherwise, losing money for multiple years just to keep jobs alive.
Platinum prices have not been cooperative in recent months as the ETFS Physical Platinum Shares (NYSEArca: PPLT) is down almost 9%. Making matters, gold has plunged and the ETFS Physical Palladium Shares (NYSEArca: PALL) is lower by 7% over the same time, implying the near- to medium-term outlook for EZA means a sense of adventure is required to get involved with the ETF.
iShares MSCI South Africa Index Fund
ETF Trends editorial team contributed to this report.