What could be the "Anticipated Contributions" based on the topic: THE CORRELATION BETWEEN THE AMPLATS SHARE PRICE AND PLATINUM PRICES

Abstract

Background

AMPLATS is a large platinum producing company

Research problem

Motivation

Platinum is an important commodity in the economy and plays a vital role in developing South Africa into the most advanced country. If platinum price grows stronger, platinum mining companies will benefit because the market will grow stronger and will help investors diversify their portfolio which is less risky.

Proposed research approach and methodology

The research looked at how data was analysed and obtained including the nature of data used, a quantintative approach was used for statistical analysis unisng analysis toolpak. Data was obtained from Bloomberg and Pearson correlation was used to test the relationship between amplats and platinum price.

Main findings expected

To determine the level of significance between the variables and find out how weak and strong are they correlated to each other and if there are other variables which are correlated with amplats and platinum price

Managerial implications

Platinum price and amplats are also correlated with the exchange rate which is highly correlated with both variables because if the share price rises so does the exchange rate.

Anticipated contribution

Table of contents

1.	Introduction	6
2.	Literature review	7
2.1 2.1.1 2.1.2 2.1.3 2.1.4	The determinants of the platinum price Supply Demand The ratio between US dollar - South Africa rand rates Market cyclicality	7 7 7 8 8
2.2	The rand/dollar exchange rate	8
2.3	The correlations between the share prices of platinum mining companies, the platinum price and the exchange rate	9
2.4 2.4.1 2.4.2 2.4.3	The determinants of the Amplats share price The automotive industry, primarily autocatalysts Jewellery Industrial applications	10 10 10 10
3.	Research problem	11
3.1	Research goal	11
3.2	Research questions	12
4.	Methodology	12
4.1	Research paradigm	12
4.2	Research approach	13
4.3	Obtaining the data	13
4.4	Data analysis	13
4.5	Validity and reliability	13
4.6	Ethical considerations	14
5.	Results	14
5.1	Data exploration	14
5.2	Correlation analysis	15
5.3	Interpretation of the results	18
6.	Summary and conclusion	19
	References	21

THE CORRELATION BETWEEN THE AMPLATS SHARE PRICE AND PLATINUM PRICES

1. INTRODUCTION

Demand for platinum in the world has grown steadily over the past decade, rising from 5.13 million ounces in 1997 to 6.8 million ounces in 2006, mainly with the growth of auto-catalyst applications as a major platinum consumer group metals.

2. LITERATURE REVIEW

This study focuses on platinum mining companies, share prices and Amplats and whether these variables have a relationship altogether and which roles they play in the economy; a background and knowledge to understand how these commodities affect each other is needed.

2.1 Determinants influencing platinum prices

Many factors can influence the platinum spot prices; like any other commodity, supply and demand determine platinum, which will need a proper evaluation to forecast future platinum prices. The following factors influence platinum prices:

2.1.1 Supply

Mauve (2000) explained supply as "the provision of a commodity".An analystneeds to understand theimpactof the following factors on availability. According to Tilton (1985 as cited in Genc, 2008)

• The price of the commodity
• Commodity status
• Inputs costs
• Disruptions of Socio-political
• Market structure
• Industrial change
• Constitutional activities

Global supply estimation of a commodity calculation will be the total amount made available to the market for that commodity; primary (individual and main products) and secondary (recycling scrap metal) production is what made mineral commodities to be known.

2.1.2 Demand

Mauve (2000) explained supply as "the desire that a consumer has for a commodity". According to Tilton (1985 as cited in Genc, 2008), these are the factors that determine demand for most mineral commodities

• Commodity price
• Growth of GDP (Income)
• Substitutes availability for a commodity
• The availability of complementary substances in combination with a commodity
• Preferences of consumers
• Industrial change
• Constitutional activities

Analysis and prediction of demand for a commodity need a critical understanding of these factors, and there are different stages used to analyse the market. Below are the stages used to measure platinum and demand

• Platinum and platinum products of refined fabrication
• Platinum products manufactured, i.e. mints, jewellery manufacturers etc.
• Consumption of final platinum products

After carefully studying themain factorsaffectingsupply and demand for a commodity, working out supply and demand can create a historic balance for future commodity markets (Gene and Cawood, 2005).

2.1.3 The ratio between US dollar - South Africa rand rates

South Africa producers for platinum prices are highly delicate towards the relationship between the US dollar (USD) and the South Africa rand (ZAR). Since 2001, the current deficit account and US trade continued to broaden the main motive behind the US dollar weakness, contrary to all major currencies.Theliability of the US dollardroveup commodity prices. The value of ZAR is very vital because the majority of SA platinum producer's costs are primarily in ZAR even though their revenues are solely in USD, which makes the ratio of USD to ZAR very significant. During 2005 and 2006, the ZAR had massive implications where new projects became less feasible, and because of the rand being more substantial, new projects delayed(Genc, 2008).

South African operations had a significant impact on mining because of the strong rand. Since the rand was continuing to grow more potent against the dollar for the past two years, this has caused South African platinum mines to reassess their plans for future development. The amount of platinum supply to the market was a significant strong rand and its impacts. Mining production becomes more profitable when the ZAR is weak. Business confidence and economic indices were falling because of a substantial issue: the South African power problem since 2008. According to Statistics South Africa (2008), in the first quarter of 2008, the SA's GDP dropped to 2.1% due to the disruption of power failure in the mining production. GDP also fell by 22.1% for the mining contribution(Gene and Cawood, 2005).

2.1.4 Market cyclical

Davutyan and Roberts (1999, as cited in Gene and Cawood, 2005) pointed out the market cyclical than most metal commodities can have periodic cyclicality since there is a period necessity on the extent of stages.Stages or sequences arethe contraction or expansionofthe market price and arevisible inthe spot priceof platinum over sometime. Stages arethe pricecycle betweenthehighest priceand the lowest price.The former includes a value that is on top of a minimum of two years of preceding costs and also the price latter that's below at least two years of previous prices.

2.2 The rand/dollar exchange rate

According to (Hsing, 2016), There was numerous latest research inspecting the determinants of change prices for South Africa.

Over the years, SouthAfrica's exchange ratesystem haschangedfrequently and maintaineda fixed exchange rate for a certainperiod. Muchof rand's historyhas involved a dual exchange rate system(Akinboade and Makina, 2006).Given the US dominance in world trade and the global economic and financial system, the relationship between South Africa and theUS isvery important. Between the short-term and the long-term, thereis a positivecorrelation between stock prices and theUS dollar, butthe short-term relationshipis stronger than thelong-termrelationship(Ocran, 2007).Thereal exchange rate fluctuateswildly, very close to the long-term equilibrium exchange rate,indicating that itpositively affects economic growth, stable inflation, and low unemployment. There have been several recent studieson South Africa's exchange rate determinants.

An analysis made by Fedderke andFlemand (2005)valid market assumptions and used daily samples from June2001 to June 2004 to study unexpected macroeconomic newsabout the ZAR/USD exchange rate. The surprise from the United States is enormous, whereasthe surprise from South Africa is insignificant; Frankel (2007) studied the real exchange ratein South Africa. Thelagging dependent variable is positive andveryimportant.The risein mineral and metal prices hasincreased the rand's valueagainst the US dollar.The real interest ratedifference between South Africaand the US makes the rand stronger. According to Farrant andPeersman (2006), the exchange rateplayed an important roleandacted as abufferto rebalance a country'seconomy.

Raputsoane and Todani (2008)compared diverse kinds of the exchange rate and the dollar currency model. There is a long-term connection between the rand/dollar exchange rate, interestrates, income and currencyspread: Therand/U.S. dollar exchange rate, interestrates,forward ratios between income andcurrencydifferences. Surges in commodity prices and current accountbalances as apercentage of GDP cause the rand to depreciate. Previous studies done by authors, to their best knowledge, examined that the ZAR/USD exchanges rate analysis based on demand supply.

2.3 The correlations between the share prices of platinum mining companies, the platinum price and the exchange rate

Correlation and linkage refer to the strong relationship between the prices or volatility of different markets or assets and are mainly associated with various influences, such as price orientation, information transmission and volatility losses. Similarly, few studies have explored the relationship between the platinum group metal markets(Bao, 2020).

For countries that rely heavily on commodity exports, it is imperative to understand the behaviour and fluctuations of commodity prices, especially when formulating economic policies (Boubakri, Guillaumin and Silanine, 2019). The volatility of real commodity prices is significant because it can play an essential role in determining the real effective exchange rate of commodity-exporting countries. For instance, Chen and Rogoff (2003) focused on three commodity-exporting countries: Australia, Canada, and New Zealand, to find a optimistic link between real prices of commodity and real exchange rates, leading to change of "commodity currencies" and this study confirmed by Cashin, Cspedes and Sahay (2004) thatfor developing countries that export large amounts of commodities, the relationship is the same.

Since platinum and market transactions have high financial capabilities, these prices get included as a broader index component in the commodity or precious metal literature.It is necessary to analyse the volatility of the price of platinum group metals and the correlation and interrelationship between prices to make recommendations to create a better financial market for platinum group metals(Bao, 2020). The close relationship determination made by(Roache and Rossi, 2010) between platinum prices and macro indicators, such as economic growth, monetary environment (such as inflation and money supply), business cycles (such as production and consumer confidence), and financial market conditions (such as exchange rates, interest) prices and stock index earnings). There is a strong correlation between South Africa's inflation and the exchange rate. Also, the relationship between the dollar and the marginal cost of platinum exists. Meaning that the local conditions that affect inflation will indirectly affect the exchange rate and profitability, e.g. in the long run, labour turbulence in South Africa may lead to weak economic conditions and a weak rand(Neingo and Cawood, 2014).

There's also a need to understand that fluctuations of commodity prices, exchange rate and inflation can harm platinum mining companies; also, exporting countries exchange rate affect supply and demand by changing exporting prices which harms platinum mining companies (Chen, 2010 and Ciner, 2017).

2.4 The determinants of the Amplats share price

Amplats are the largest platinum producer in the world. Nineteen concentrators, three smelters, a converter anda precious and basemetal refinery complex are active in all significant platinum groupmetals(Olivier, 2011). Four factors primarily drive Amplats demand.

2.4.1 The automotive industry, primarily auto catalysts

The aluminium oxide deposited by platinum is the first catalyst used as a simple design that needs to coated on a support material to get positioned in the vehicle's exhaust stream. In the past, platinum preferred diesel's aftermath because the diesel engine exhaust stream is highly oxidising.Diesel vehicles that are all massiveare going to be fitted with selective converter systems using solely minor amounts of platinum group metals (PGMs) in ammonia slip catalysts(Olivier, 2011)

2.4.2 Jewellery

The platinum's ability to be cooled and heated constantly without being hardened affects oxidation. The settings that they produce, which retain the shape permanently, have made the metal more popular amongst jewellery manufacturers. Even on the jeweller's skills, it does make specific demands. When it came to white gold expense, more platinum was being stocked by retailers because the price of platinum fell. Prices were more affordable, and consumers happily bought platinum as an alternative of enforcement to trade down cheaper gold(Matthey, 2010).While lower platinum prices have fuelled platinum's affordability and demand, platinum is more complex on consumer perception based on the longer-term impact of price changes and volatility.

2.4.3 Industrial applications

• The chemical sector -production of nitric acid, silicones, and paraxylene, including many chemical processes uses platinum catalysts. The oldest industrial applications use a platinum catalyst to produce nitric acid.
• Petroleum refining - refining of petroleum depends on the platinum catalyst used in the reforming and isomerisation steps.Since the process losses are low, there is only a significant increase in demand when capacity is prolonged.Some renewable fuel production processes require platinum catalysts, and future refineries in this field will drive demand for platinum.
• Other industrial applications -Although other applications that require platinum are small; they consume a lot of metal every year. Platinum also plays a vital role in medical applications, including pacemaker electrodes and coiled platinum-tipped guide wires that can localise blockages in arterial disease. Internal cardioverter-defibrillator demand remains to drive biomedical devices platinum demand.
• Investment -Exchange-traded funds (ETFs) invest commodities without investors receiving the products' physical delivery.Before 2007, there were no ETFsthat tradedonPGM.Since their introduction in April 2007, ETFs for platinum group metalsare trading on thestock exchanges in London, New York, andSwitzerland. The Royal Canadian Mint produces platinum and palladium coins; for investment purposes, the Australian and US mints have platinum(Olivier, 2011).

The relationship between the share price of mining companies and Amplats is significant because each variable depends on one another, and therefore, none can exist without the other. This relationship will benefit companies and plays a massive role in uplifting the economy.

3. RESEARCH PROBLEM

Is there an interrelation between Amplats share price and platinum prices?

Amplats share price was affected by platinum price when the prices dropped and also caused the share price to drop, and also when the platinum increased, share price for Amplats increased. Investors Since other factors affected share price, including the exchange, the relationship between the two variables exists. Platinum price and Amplats share price have a relationship since both are driven by demand and supply; the lower the demand for platinum, the share price goes down. The demand and supply had always determined exchange rates;changes in exchange rates have a wide range of effects across a country's economic spectrum. For instance, exchange rates have always affected the cost import and exports and value of exports. There was always an interest in understanding what factors affect the movement of share prices (Chirchir, 2011).

3.1 Research goal

The main goal was to examine whether the relationship between Amplats share price and platinum price existed and how they affected or influenced each other. To establish if this was a lasting relationship, based on the factors contributing to determining Amplats share price.

• How Amplats share price is affected by platinum prices.
• To determine what contributed to the share price of Amplats performance over the years.
• To determine if platinum prices were the only factor that affected share price.

3.2 Research questions

• How has Amplats share price performance correlated to platinum price over the five years?
• The correlation between the Amplats share price and the ZA rand price of platinum?
• How did platinum prices affect Amplats share price?

4. METHODOLOGY

Numerous methods can be used to analyse data, and some aspects are needed to be looked at to determine which method must be used for the study. The nature of the data used and the research problem should dictate which method should be used for the study. The research looked at how data was obtained and analysed, research approaches and paradigms used and the validity and reliability of the study, including ethical considerations taken into account.

Since share price showed the correlation for Amplats to be significant, a quantitative research approach was used because the data provided is numeric and needs statistical analysis; it also generalises a variety of ideas about a research problem in a flowing manner (Creswell, 2014:200). This approach allowed the broader study and also provided answers to questions about the occurrence of a phenomenon.

All the research questions were addressed, and the research goal were met. Findings showed that platinum prices was not the only factor that affected Amplats share; there are other factors that have an effect. Through the data that was analysed, Economic Value Added (EVA) played a significant role in Amplats.

.

4.1 Research paradigm

Positivism is based on the hypothetical deduction method of testing a priori hypotheses, which are usually quantified, from which the functional relationship between cause and effect and explanatory factors (independent variables) and results (dependent variables) can be derived.

The positivism paradigm was used for this study since its analysis is statistical and it emphasises measuring the correlation of variables and generalise the results and test the hypothesis and provided answers to the research question, therefore it is suitable to be used with quantitative data.

The hypothesis that was tested was:

• To determine the correlation between Amplats share price and platinum rand price
• To determine the correlation between Amplats share price and platinum dollar price
• Determine the correlation between Amplats share price and exchange rate usdzar

Since the positivism paradigm is focused on measuring the correlation of variables, the results anticipated showed that platinum prices was not the only factor that affect Amplats share price. There are other factors that influenced the share price of Amplats like the exchange rate, which fluctuated based on demand and supply as much as platinum prices increase or decrease based on these factors.

4.2 Research approach

The research problem and research questions suggest that the quantitative approach will be suitable because it's used to correlate variables. A quantitative approach was used for this research to test the hypothesis using numerical data. There were many factors considered that aligned with the research approach and paradigm for the study to be reliable and valid

4.3 Obtaining the data

The required data was obtained from Bloomberg. The data consists of the monthly closing price of Amplats shares listed in the Johannesburg Stock Exchange (JSE), the monthly price of platinum and the corresponding rand/dollar exchange rate. Only secondary data will be used for the current study.

4.4 Data analysis

The Pearson's correlation coefficient was used because it is vital to identify and describe the strength of the possible relationship between the variables, which are ts share price and platinum price. In contrast, a regression analysis was also- used to determine any connection between the independent and dependent variables.

This method quantifies the direction and magnitude of the correlation. A necessary assumption for using Pearson correlation analysis is that the relationship between variables is linear (Nangolo & Musingwini, 2011:459).

The variables that were involved in this study based on the data collected from Bloomberg was share price as a(dependent variable) refers is the price of the stocks listed on the stock exchange within a period of time determined by the market participants, and is determined by the supply and demand relationship of the corresponding stock in the capital market. Platinum price (independent variable) or platinum spot price is the price for a precious metal for immediate delivery. Exchange rate (dependent variable) is the rate at which money for one country can be exchange for the money in another country (Albulescu, Mustaco &Tiwari, 2013).

Data was analysed using a computer software MS Excel Statistics/Analysis Toolpak was used to conduct statistical evaluations of the correlation. statistical data was used for this quantitative research methodology was used, which assisted in determining the relationship between variables.

4.5 Validity and reliability

Saunders and Lewis (2009:156-157) defined reliability as the degree to which data collection and analysis methods produce consistent results over time, and validity is how the data collection method accurately determines whether the results are as shown or claimed.

Convergent validity was used to measure variables that can predict a high correlation between variables and was established through factor analysis. Pearson's coefficient was used as reliability to measure the linear relationship between two variables

4.6 Ethical considerations

Approval was obtained from the Research Review Ethics committee before the study was conducted. The study was done honestly and with integrity. The findings of the research and interpretations were presented objectively. Plagiarism was also considered to make certain that no authors work was plagiarised, and software was used to keep track of the references (Marx, 2020). Furthermore, credible sources were used for this study for obtaining statistical for accurate analysis.

5. Data analysis

The data required was generated using the Bloomberg database. This section will explain how the data exploration and correlation analysis were performed, as well as how the results are interpreted.

5.1 Data exploration

Data exploration is the first step in data analysis. Users examine large data sets in an unstructured way to discover initial patterns, features, and points of interest. This process is not intended to reveal all the information contained in the data set, but to help create an overall picture of important trends and hotspots for further investigation.

Data exploration can use a combination of manual techniques and automated tools, such as data visualization, graphs, and startup reports. The results of data exploration are very useful for understanding the structure of the data, the distribution of values, the existence of extreme values, and the relationships in the data set (Deshpande and Kotu, 2018).

According to Zuur. Ieno and Elphick (2010), these are the protocols for data exploration

• Outliers in the data: outliers, that is, observations with higher or lower values than most observations, can have a greater or major impact on the experimental results. Although the methods for dealing with these may be different, it is important to know whether boxplots and Cleveland scatter plots are tools for detecting outliers.

• Homogeneity of variance: Homogeneity of variance is an important assumption in analysis of variance, regression models and multivariate methods. This means that the variance of the characteristic variables should be similar. This can be verified by checking the rest of the model. That is to say, when plotting the residuals based on the fitted values, the changes in the residuals on the graph should be similar.

• Normally distributed data: Various statistical methods assume normality, such as linear regression and t-test. The histogram can be used to show the distribution of data.

• Zeros (missing values) in the data: zero (or empty) data makes analysis difficult. They may be incorrectly marked as equal because they are all zero.

• Collinearity in covariates: If you ignore collinearity, you are likely to get a fuzzy statistical analysis in which nothing is significant; however, if one covariate is discarded, other covariates may become important. Inflation rate (VIF), paired scatter plots to compare covariates, correlation coefficients, or bivariate PCA charts applied to all covariates.

• Interaction between variables: Interaction refers to changes in the relationship of variables according to the values of other variables. This type of information can be found by observing the weights of variables when performing linear regression.

• Independence in the data set: data points in the data set must be drawn independently. This can be analysed by modelling any spatial or temporal relationship, or by nesting data in a hierarchy.

5.2 Correlation analysis

Thecorrelation coefficient is expressed as r, which means the sample statistic. A correlation coefficient is a unique number used to measure the strength and direction of the linear relationship between two continuous variables. The value can range from 1 to +1

Strength:The higher the absolute value of the correlation coefficient the stronger the relationship.

• The extreme value of 1 and 1 represents a perfect linear relationship in which the change of one variable is accompanied by the complete sequential change of the other variable. For these ratios, all data points fall on this line.
• A coefficient ratio of 0 does not indicate a linear relationship, if one variable increases by the other variable will not increase or decrease.
• If the value is between 0 and +1/1, there is a ratio, but not all points are on the line. As r

approaches 1 or the intensity of the 1, ratio increases, the data points tend to approach the line.

Direction: The direction of the relationship is represented by the sign of the correlation coefficient

• Positive coefficients suggest that after the cost of one variable increases, the cost of the opposite variable additionally tends to increase. Positive relationships show an upward slope on a scatter plot.
• A negative coefficient indicates that as the value of one variable increases, the value of another tends to decrease. A negative ratio will produce a downward slope (Frost, 2019:16-17)

The results for the Pearson correlation were obtained by using data analysis toolpak add-in in Excel

• On the Data tab, in the Analysis group, click Data Analysis
• Select Correlation and click OK
• Select the data given and click OK

The variables were set against each other in order to determine their relation to each other. The input variables are - AMPLATS ZAR, PLATINUM ZAR, PLATINUM USD. The tables obtained give information on Pearson correlation coefficient based on number of observations, further tables show the relation of each variable to other variables

Figure 1. Amplats zar and Platinum zar correlation

Source: Bloomberg (2020)

Figure 2. Amplats zar and Platinum usd correlation

Source: Bloomberg (2020)

Figure 3. Amplats zar and exchange rate usdzar correlation

Source: Bloomberg (2020)

From the above output, it showed that X-RATE USDZAR was highly correlated with all the remaining variables

The level of significance was determined by calculating the p-value which indicates whether the relationship is statistical significant and the p-value should be less than 0.05

The level of significance was obtained by performing a correlation test

Correlation between	P value	Significance
Platinum ZAR and Amplats ZAR	0.037	Significant correlation
Platinum USD and Amplats ZAR	0.098	Insignificant correlation
X-RATE USDZAR and Amplats ZAR	0.00	Significant correlation
X-RATE USDZAR and Platinum ZAR	0.038	Significant correlation
X-RATE USDZAR and Platinum USD	0.00	Significant correlation

Figure 1.Platinum ZARvsAmplats ZAR

Source: Bloomberg

Figure 2. AMPLATS ZAR vs PLATINUM USD

Source: Bloomberg (2020)

Figure 3. X-RATE vs AMPLATS ZAR

Source: Bloomberg (2020)

5.3 Interpretation of the results

• Amplats ZAR and Platinum ZAR showed a low positive correlation that is weak which means if platinum price increases then Amplats will also increase
• Amplats ZAR and Platinum USD showed a low negative correlation that is weak which means if platinum USD increases the Amplats ZAR tend to decrease
• Amplats ZAR and X-rate USDZAR showed a weak low positive correlation which showed that if the X-rate increases then Amplats will also increase

• PLATINUM ZAR is significantly correlated to AMPLATS ZAR and PLATINUM USD, but insignificant to X-RATE USDZAR.
• PLATINUM ZAR and AMPLATS ZAR are not significantly correlated but are correlated to other independent variables.
• PLATINUM ZAR, PLATINUM USD and AMPLATS are significantly important to predict the XRATE USDZAR since their p-value is almost 0.

Based on these results it is clear that all these variables are significantly correlated to each other and they also depend on each other for share price changes, if the price of one variable decreases it also affects the other variable

Level of Significance fo the correlation

• PLATINUM ZAR and AMPLATS ZAR P-Value = 0.037, P value (0.037)<0.05, the results are significant. There is a significant correlation between PLATINUM ZAR, AMPLATS ZAR

• PLATINUM USD and AMPLATS ZAR P-Value = 0.098, P value (0.098)>0.05, the results are insignificant. There correlation is insignificant between PLATINUM ZAR and AMPLAT ZAR

• X-RATE USDZAR and AMPLATS ZAR P-Value = 0.000, P value (0.000)<0.05, the results are significant. There is a significant correlation between X-RATE USDZAR and AMPLATS ZAR

• X-RATE USDZAR and PLATINUM ZAR P-Value = 0.038, P value (0.038)<0.05, the results are significant. There is a significant correlation between X-RATE USDZAR and PLATINUM ZAR

• X-RATE USDZAR PLATINUM USD P-Value = 0.000, P value (0.000)<0.05, the results are significant. There is a significant correlation between X-RATE USDZAR and PLATINUM USD.

6. SUMMARY AND CONCLUSION

This section covers all the possible findings related to Amplats share price and platinum and how are they correlated to one another and provide the limitations of the study. This research will give a glimpse of how important this research is and outline all chapters that will be included in the thesis.

The interrelation between share price and the platinum price is still ongoing research to an extent that it is believed that platinum price is the only variable that affects Amplats share whereas other variables have an impact and causing a drastic change in share price even though the platinum price is still the leading variable when it comes to determinants that cause share price fluctuations. The methodology proposed shows that platinum might not be the only variable responsible for changes in a dependent variable which makes it more stimulating and for the research to be observed in a broader aspect.

The findings that can be expected is the relationship to be there but might not be strong enough since there are other variables involved like the exchange rate usdzar which is very significant in this case because it is highly correlated with Amplats which can cause the share price to rise if the exchange rate also rises. There is a knowledge gap when it comes to two or more variables being correlated together because due to the lack of resources available to continue with the research and fill in the gaps about share price and platinum.

Amplats and platinum will always be correlated and it's clear that correlation between the two is very weak yet significant because the dependent variable cannot survive without the independent variable because they go hand in hand, where there's Amplats there's platinum but it must be taken into account that there are other variables involved and this study shows that.

The resources to perform the correlation is a statistical software package Ms Excel which showed how the two variables are correlated and if the correlation is very weak or strong based on the data provided, a statistical consultant was very helpful in doing the proper tests for a particular data and also raise statistical challenges faced along the way. There were implications of practice due to lack of resources of including other variables whereas if there were other variables involved that was going to create a broader scope about the relationship of variables. There were possible limitations which included focusing on platinum price and exchange rate than other variables which affected the movement of share prices and platinum prices.

There is a correlation between Amplats share price and platinum price. The explanation for the correlation isn't completely clear.