Magara's comments add to a similar view by Tom Albanese, the chief executive of Vedanta Resources. He told CNBC last week that the recent respite from the commodities rout is a "bit overdone" and investors should watch out for further retracement. He also noted that investors were not getting out their chequebooks just yet in his industry.
Platinum prices are up nearly 18 percent year-to-date after a painful couple of years for the miners. Gold is up 20 percent since the start of the year, silver up 24 percent, and mirrors the gains seen across the whole commodity spectrum.
Capital Economics predict, however, that price rises could continue throughout the rest of the year. A new research note on Friday suggested China's manufacturing activity will pick up in the second half of this year which should prompt a recovery in the price of copper. It also said that precious metals could be buoyed by increased demand in India and China after some temporary disruptions.
Lonmin cut costs in the face of these price pressures last year and reported on Monday a core profit of $36 million for the first half, compared to a loss of $6 million for the same period last year. Shares of Lonmin climbed 16 percent on Monday.