OTCPK:PALDF - Post by User
Post by
TABerlioz1111on Apr 22, 2019 4:09pm
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Post# 29656110
3 Price Catalysts between now and Q4
3 Price Catalysts between now and Q4Why is now the absolute wrong time for retail investors to sell? Because of three catalysts slanted to the upside, 2 of them in the next 30 days.
- The earnings report is coming out on May 2 and the market has definitely not priced in a smash hit in revenue and profit for PALDF. However, given palladium prices during Q1 the news is likely to be strongly positive.
- The South African elections are on May 8 and the ANC needs to shore up its union support to get votes. Expect the government trying to deliver some pro-labor goodies at the expense of the mining companies.
- More important than the elections are the upcoming platinum miner wage talks in South Africa. SA is responsible for a huge chunk of the global palladium supply but in South Africa it's mostly mined as a useful side benefit in platinum mining operations. The dominant union in the platinum sector AMCU just held a record long gold strike at Sibanye-Stillwater and got it's a$$ handed to it on a platter. I'd expect union leadership will want to make up for it in the mineral group where they have stronger memership numbers and prices are sky-high. If the South African platinum mines go on strike, the palladium supply deficit will widen significantly in a short-time period. Having a well-run Canadian palladium mine will sure look like a good investment in the event that happens.