PGM's The Case To Be Long, The Stocks To ConsiderGood article for a re-read going into the week of the AGM 2019. Stock price may start picking up = are you doing the same? Cheers to the patient.
Platinum-Group Metals And Nickel Miners: The Case To Be Long, The Stocks To Consider
https://seekingalpha.com/article/4293275-platinum-group-metals-nickel-miners-case-long-stocks-consider My Takeaways:
The tightening automobile emission regulations drive higher PGM loadings per vehicle. It's estimated palladium loadings per vehicle will increase 15-20% in China, 5-10% in India, 3-5% in Europe, and 103% in the U.S., thus offsetting weakness in vehicle sales (see here).
Demand for palladium is, therefore, expected to continue to outstrip supply in 2019 and 2020, resulting in 0.6 Moz and 0.8 Moz deficit in those years (Fig. 9) and continual drawdown of the palladium stock (Fig. 6).
"...New Age operates flagship PGM project River Valley in the vicinity of the Sudbury Basin where Vale (VALE)'s Copper Cliff smelter is situated. River Valley is estimated to host 2.87 Moz of M&I and 1.06 Moz of inferred PdEq resource, with additional exploration upside. A PEA released on August 7, 2019, suggests marginal economic viability with 6 Mt/y processed for 14 years of life of mine at an AISC of US$709/oz, generating an after-tax IRR of 10% under US$1,200/oz Pd and US$1,050/oz Pt assumption although the after-tax IRR improves to 16% at US$1,510/oz Pd.
The company also acquired the Genesis PGM project (Tonsina layered mafic-ultramafic complex) in Alaska, yet to drill with a JV partner to be sought after."