RE: Record autocatalyst demand extending palladium Good news for our stream.
I was reading the Colossus minerals news releases and came across the met. recoveries:
https://www.colossusminerals.com/English/Investors/News-Releases/News-Releases-Details/2012/Colossus-Minerals-Announces-Significant-Achievement-in-Metallurgical-Recoveries-of-Platinum-Group-Metals-From-Serra-Pelada112/default.aspx
So, if they mine 10 grams of gold, 10 grams of platinum and 10 grams of palladium, the recoveries for gold would be about 9.5 grams (95%), about 8.0 grams of platinum (80%), and about 7.0 grams of palladium (70%).
Which is kind of poor news for us, obviously we'd prefer higher recoveries, that said, there could be a bit of a silver lining to the lower recoveries. Colossus has until some time in 2015 to repurchase 50% of the stream. Palladium production begins in Q4 2014, suggesting that there would only be a few months of production prior to the repurchase deadline. If CSI has limited access to capital at that point, they may choose to repurchase only the SSL stream, given that CSI investors are probably more interested in platinum and gold exposure, rather than palladium, seeing as how gold/platinum are a bit more high profile metals, and they know that the amount of payable gold and platinum will be > than the amount of payable palladium.
If you think that the CSI stream will be a very profitable one for SND, one that could earn between $4 - $7 million a year for 25+ years, then having our stream left whole would be good news indeed.