Posted by AGORACOM-JC
at 2:27 PM on Tuesday, October 8th, 2019
SPONSOR: New Age Metals Inc. The company also owns one of North America’s largest primary platinum group metals deposit in Sudbury, Canada. Updated NI 43-101 Mineral Resource Estimate of 2,867,000 PdEq Measured and Indicated Ounces, with an additional 1,059,000 PdEq Ounces Inferred. Learn More.
———————
$1-billion sales agreement announced Monday represents the
culmination of a six-year turnaround for Toronto-based miner North
American Palladium Inc., its president and CEO says.
On a conference call to discuss the deal to sell the company to South
African miner Impala Platinum Holdings Ltd., Jim Gallagher said NAP was
in severe financial distress following a poorly executed mine expansion
in 2013 when financier Brookfield Capital Partners stepped in with a
US$130-million loan.
In 2015, with the company still struggling, Brookfield converted its
loan to equity to become the majority owner, on the understanding that
it would sell its stake when the turnaround was complete.
“That day has come today. We have a sale of the company in an
all-cash deal at near-record palladium prices and, except for a two-day
blip in March of this year, at near-record high share prices,†said
Gallagher on a conference call to discuss the deal.
“From virtual bankruptcy four years ago, we now have a sale to the tune of $1 billion.â€
Impala Platinum, which uses the nickname Implats, has offered to pay
$16 per share to Brookfield Business Partners LP, the majority
shareholder with 81 per cent of the stock, and $19.74 per share for the
remaining stake, resulting in an average price per share of $16.77.
Negotiations with Implats began in July and the companies had
unofficially set a price of around $16 per share, Gallagher explained.
The higher price for minority shareholders was agreed upon in
recognition of the more recent rise in share prices.
North American Palladium has been producing palladium, a lustrous
white material valued for its use in pollution-control devices for cars
and trucks, for 25 years at its Lac des Iles Mine at Thunder Bay, Ont.
It’s also involved in two exploration projects.
“Implats has had an exploration presence in Canada for more than two
decades and over the past three years we have developed a strong
relationship with and understanding of NAP and its management team and
operations,†said CEO Nico Muller in a news release.
“It is Implats’ view that the palladium market will remain in a
structural deficit in the medium term, which should lend considerable
support to stronger-for-longer pricing.â€
Implats said it was attracted to North American Palladium because of
its fully mechanized mine, which means low labour costs and leading
safety statistics, an estimated mine life of at least 15 years, and its
future exploration opportunities. About 700 people work at the mine.
The companies have agreed to a 30-day period during which a
termination fee of $24.5 million would be payable to Implats if a higher
bid is accepted, with the fee increasing to $37.7 million thereafter.
Implats would have the right to match any offer.
Closing of the transaction is expected in the fourth quarter, subject
to North American Palladium shareholder approval and other customary
conditions.
Posted by AGORACOM-JC
at 9:13 AM on Tuesday, October 8th, 2019
Harry Barr, Chairman & CEO, stated; “We are pleased to announce that this summers exploration efforts have doubled the strike length of prospective mineralization at our road accessible Genesis PGM-Ni-Cu Project in Alaska.
October 8th, 2019 – Rockport, Canada – New Age Metals Inc. (NAM) (TSXV:NAM)(OTC:NMTLF)(FSE:P7J) Harry Barr, Chairman & CEO, stated; “We are pleased to announce that this summers exploration efforts have doubled the strike length of prospective mineralization at our road accessible Genesis PGM-Ni-Cu Project in Alaska. Our Alaskan geological consultant, Avalon Development, has outlined subsequent stages of exploration including reconnaissance level prospecting, geologic mapping and geochemical sampling for all of the newly identified PGM-Cu-Ni targets. Ground-based geophysics and/or closely spaced airborne magnetics and EM surveys should also be conducted to provide better three-dimensional control on mineralization. Following these efforts, prioritization of targets is recommended followed by first-ever scout drilling.”
Genesis Summer 2019 Exploration Program Results
Two independent contractor evaluations were conducted earlier this summer on the Genesis project.
These evaluations included imagery processing and interpretation of
ASTER (Advanced Spaceborne Thermal Emission and Reflection Radiometer)
and associated LANDSAT8 satellite data to help map potential alteration
targets to aid district-scale PGM-Cu-Ni sulfide exploration. This effort
was conducted by Denver-based Image2Map Services, Inc. The second
effort involved reinterpretation of 400m spaced airborne magnetic and
resistivity surveys previously flown by the State of Alaska Div. of
Geological and Geophysical Surveys and limited ground IP surveys
conducted by a previous owner of the Genesis project. This effort was
conducted by Denver-based Condor Geophysics.
Previous exploration on the Sheep
Hill massif in the central part of the Genesis project revealed
stratabound sulfides over an 800 metre strike length, with consistent
PGM-Cu-Ni metal grades over multiple meter intervals, including 6 metres
grading 804 ppb platinum and 1,018 ppb palladium, and 12 meters grading
5,938 ppm nickel. There has
been no drilling on this district-scale project and the strike and depth
extent of Ni-Cu-PGE mineralization remains open to expansion. The geophysical signature of the Sheep Hill mineralization is strongly magnetic and moderately conductive. The
first-ever application of ASTER and LANDSAT8 imagery over Sheep Hill
shows a remarkably consistent correlation between a distinctive strong
iron oxide alteration signature and the geological and geophysical trace
of the previously discovered PGM-Cu-Ni sulfide mineralization hosted by
a dunite-lherzolite unit (Figure 1). ATSER and LANDSAT
imagery revealed at least two other sub-parallel alteration zones
adjacent to, and east of the known PGM-Cu-Ni mineralization at Sheep
Hill. These two zones are separated from each other and the known Sheep
Hill zone by talus fields composed of unaltered and unmineralized
ultramafic rocks that lie upslope from the PGM-Cu-Ni mineralization. Combining
ASTER and LANDSAT8 results with airborne magnetics and resistivity data
indicate the total length of the stratabound PGM-Cu-Ni mineralization
on Sheep Hill is at least 2,000m and open under alluvial cover in both
strike directions.
Click Image To View Full Size
Figure 1:
Combined ASTER serpentine alteration thematics and LANDSAT iron oxide
alteration thematics, Sheep Hill massif, Genesis project, Alaska.
Location of previous geochemical sampling shown in red squares.
At the adjacent Bernard Mt. massif,
centered about 7.5 kilometers west of Sheep Hill, ASTER and LANDSAT8
results combined with airborne magnetics and resistivity data indicate a
well constrained northeast trending band of conductive and magnetic
iron oxide alteration extending for at least 2,250 metres along the
south flank of Bernard Mt. (Figure 2). The stratigraphic position, ASTER
and LANDSAT8 alteration and airborne magnetic and resistivity
signatures are identical to those at Sheep Hill. Unlike
Sheep Hill, there has been virtually no prospecting, mapping or
geochemical sampling along the prospective target horizon at Bernard Mt.
Click Image To View Full Size
Figure 2:
Landsat 8 iron oxide alteration thematics over the Bernard Mt. massif,
Genesis project, Alaska. Location of previous geochemical sampling shown
in red squares.
Based on previous geological and
geochemical data combined with newly generated and/or interpreted ASTER,
LANDSAT8, airborne magnetics and airborne resistivity data,
a total of 23 exploration targets have been identified on the Genesis
project. The most prospective targets include 7 separate zones on
Bernard Mt. and an additional 9 zones on Sheep Hill. None
of the targets on Bernard Mt. have been explored, even at the
reconnaissance level, and only the western edge of one target zone,
which return significant PGM-Cu-Ni mineralization, has been mapped and
sampled at Sheep Hill. There has been no drilling on any of the targets identified on Sheep Hill or Bernard Mt.
NAM
management is actively seeking an option/joint-venture partner for this
road accessible PGM and Multiple Element Project using the Prospector
Generator business model.
About Genesis
The Genesis project is a PGM-Cu-Ni
property located in the northeastern Chugach Mountains, 75 paved road
miles north of the all-season port city of Valdez, Alaska. The project
is within 3 km of the all-season paved Richardson Highway and a high
capacity electric power line. The project is covered by 4,144 hectares
of State of Alaska mining claims owned 100% by New Age Metals. Past
exploration has revealed the presence of chromite-associated platinum
and palladium mineralization and stratabound Ni-Cu-PGE mineralization
within magmatic layers of the Tonsina Ultramafic Complex. Pyrrhotite,
pentlandite, and chalcopyrite occur in disseminations and net textured
segregations associated with platinum and palladium sulfides. There has been limited exploration over the Genesis project and there has been no past exploration drilling on the project. NAM
management is actively seeking an option/joint-venture partner for this
road accessible PGM and Multiple Element Project using the Prospector
Generator business model.
About NAM’s PGM Division
NAM’s flagship project is its 100%
owned River Valley PGM Project (NAM Website – River Valley Project) in
the Sudbury Mining District of Northern Ontario (100 km east of Sudbury,
Ontario). Recently the Company announced the results of the first PEA
(see News Release – June 27, 2019)
completed on the River Valley Project. The PEA has been developed by
various independent consultants – P&E Mining Consultants Inc.
(P&E) was responsible for the open pit mining, surface
infrastructure, tailings facility, and project economics; DRA Americas
Inc. (“DRA”) was responsible for all metallurgical test work and
processing aspects of the Project; and WSP Canada Inc. (“WSP”) was
responsible for the Mineral Resource Estimate. The PEA is a preliminary
report, however, it has demonstrated that there are potentially positive
economics for a large-scale mining open pit operation, with 14 years of
Palladium and Platinum production.
Qualified Person
The contents contained herein that
relate to Exploration Results or Mineral Resources is based on
information compiled, reviewed or prepared by Curt Freeman, a consulting
geoscientist for New Age Metals. Mr. Freeman is the Qualified Person as
defined by National Instrument 43-101 and is the owner of Avalon
Development Corp. and Anglo Alaska Gold Corp, which is the vendor of the
Genesis PGM Project. Mr. Freeman has reviewed and approved the
technical content of this news release.
Stock Option Grant
In addition, the Company announces
that it has granted 1,400,000 incentive stock options to directors,
officers and consultants of the Company at an exercise price of $0.05
per share for a period of five (5) years from the date of grant in
accordance with the Company’s Stock Option Plan. The Stock Options
granted will be subject to vesting restrictions, acceptance by the TSX
Venture Exchange and will be subject to regulatory hold periods in
accordance with applicable Canadian Securities Laws.
On behalf of the Board of Directors “Harry Barr” Harry G. Barr, Chairman and CEO
For further information on New Age Metals, please contact Harry Barr at 613-659-2773, or [email protected]
Neither the TSX Venture Exchange nor
its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
Cautionary Note Regarding Forward
Looking Statements: This release contains forward-looking statements
that involve risks and uncertainties. These statements may differ
materially from actual future events or results and are based on current
expectations or beliefs. For this purpose, statements of historical
fact may be deemed to be forward-looking statements. In addition,
forward-looking statements include statements in which the Company uses
words such as “continue”, “efforts”, “expect”, “believe”,
“anticipate”, “confident”, “intend”, “strategy”, “plan”, “will”,
“estimate”, “project”, “goal”, “target”, “prospects”, “optimistic” or
similar expressions. These statements by their nature involve risks and
uncertainties, and actual results may differ materially depending on a
variety of important factors, including, among others, the Company’s
ability and continuation of efforts to timely and completely make
available adequate current public information, additional or different
regulatory and legal requirements and restrictions that may be imposed,
and other factors as may be discussed in the documents filed by the
Company on SEDAR (www.sedar.com), including the most recent reports that
identify important risk factors that could cause actual results to
differ from those contained in the forward-looking statements. The
Company does not undertake any obligation to review or confirm analysts’
expectations or estimates or to release publicly any revisions to any
forward-looking statements to reflect events or circumstances after the
date hereof or to reflect the occurrence of unanticipated events.
Investors should not place undue reliance on forward-looking statements
Tags: clean energy, CSE, palladium, PGM, PGM Demand, stocks, tsx, tsx-v Posted in All Recent Posts | Comments Off on New Age Metals $NAM.ca Reports Size of Prospective #PGM #Copper #Nickel Mineralization Doubled at Genesis PGM-Cu-Ni Project, Alaska $WG.ca $XTM.ca $WM.ca $PDL.ca $GLEN
Posted by AGORACOM-JC
at 11:03 AM on Thursday, October 3rd, 2019
SPONSOR: New Age Metals Inc. The company’s Lithium Division has already made significant acquisitions in Canada and the USA. The company also owns one of North America’s largest primary platinum group metals deposit in Sudbury, Canada. Updated NI 43-101 Mineral Resource Estimate 2,867,000 PdEq Measured and Indicated Ounces, with an additional 1,059,000 PdEq Ounces in the Inferred. Learn More.
There’s no end in sight for soaring palladium prices, bodes well for North America’s Largest Undeveloped PGM deposit
With stocks running low, it is difficult to see where further supplies will come from. Â
For nearly 30 years, UK crime-fighting show Police 5 urged members of
the public to stay vigilant with the catchphrase “Keep ’em peeledâ€. It
is advice car owners in London might want to consider, especially if
they own hybrid vehicles such as the Toyota Prius or Lexus 400.
Looking to profit from soaring palladium prices — which hit a record
high above $1,700 an ounce this week — thieves in the UK capital have
stolen nearly 2,900 catalytic converters in the first six months of the
year, up from 1,674 in the whole of 2018, according to data from the
Metropolitan Police.
The market-savvy car thieves typically target hybrids because their
catalysts contain more metal. They then sell the devices to illegal
scrap dealers for cash. In spite of a collapse in global car sales this
year, the metal’s price has risen more than 30 per cent in 2019 to a
level far above its long-term average, catching many analysts and
investors by surprise. The average price for palladium since 1994,
unadjusted for inflation, is just $500 an ounce.
One reason for this apparent paradox is China, where there has been
increased demand for palladium ahead of the introduction of a nationwide
emissions standard in 2020. Another reason is that stocks are running
low. And with few platinum or nickel projects under development, the 7m
ounces-a-year palladium market is set to remain tight unless there is an
unexpected release of supplies. Yet it is difficult to see where these
supplies might come from. Russia’s Norilsk Nickel, the world’s largest
producer, raised doubts last week about its ability to replenish its
Global Palladium Fund.
Established in 2016, the fund helps stabilise the market, buying
metal from various sources, including Russia’s central bank, and selling
it to industrial customers. However, analysts believe that Moscow’s
strategic stockpile of palladium — a key source of supply — is close to
being exhausted, while other holders are reluctant to sell because they
expect higher prices. So is there anything that can bring palladium back
to earth?
A global recession would certainly hit prices as would a switch by
carmakers from palladium to platinum, which is almost $800 an ounce
cheaper. For the moment, that looks unlikely because the car industry is
treading warily with new catalyst technology in the wake of the
Volkswagen emissions scandal. But that could change. One of the oldest
sayings in commodity markets is that the cure for high prices is high
prices and, as BMO Capital Markets notes, it is rare for any commodity
to remain this far above its long-term average for so long.
Tags: clean energy, CSE, palladium, PGM, PGM Demand, stocks, tsx, tsx-v Posted in New Age Metals | Comments Off on There’s no end in sight for soaring #palladium prices, bodes well for North America’s Largest #PGM deposit $NAM.ca $WG.ca $XTM.ca $WM.ca $PDL.ca $GLEN
Posted by AGORACOM-JC
at 10:35 AM on Tuesday, September 24th, 2019
SPONSOR: New Age Metals Inc. The company’s Lithium Division has already made significant acquisitions in Canada and the USA. The company also owns one of North America’s largest primary platinum group metals deposit in Sudbury, Canada. Updated NI 43-101 Mineral Resource Estimate 2,867,000 PdEq Measured and Indicated Ounces, with an additional 1,059,000 PdEq Ounces in the Inferred. Learn More.
New Research Promises Electric Car Batteries That Last For a Million Miles
Power cells used in electric vehicles, like Teslas, have an expected lifespan of around 300,000 to 500,000 miles,
Electric motors guzzle electricity, which can be especially hard on a
rechargeable battery. The power cells used in electric vehicles, like
Teslas, have an expected lifespan of around 300,000 to 500,000 miles,
but a team of battery researchers believes it has come up with a recipe that can double that, leading to batteries that could potentially outlast the electric car itself.
In a paper published in the The Journal of the Electrochemical Societyearlier this month,
battery researchers from Halifax, Nova Scotia’s Dalhousie University
describe a new lithium-ion battery that could potentially power an
electric vehicle for over one million miles and over 4,000 charging
cycles while only losing about 10 percent of its charging capacity (and
vehicle range) as it reaches the end of its lifespan. Most drivers
upgrade their rides well before the odometer rolls over to one million,
but the new battery tech could be especially useful in vehicles that are
on the road around the clock like taxis, shuttles, and even delivery
trucks.
Like the ingredients of a fast-food chain’s “special sauce,†the
chemical makeup of batteries, which governs how well they perform and
how long they last, are usually a closely guarded secret. Since 2016,
the Dalhousie team has actually been conducting its research on
improving lithium-ion batteries exclusively for Tesla, but this paper
divulges exactly how they came up with a recipe for a million-mile
electric car battery by optimizing all of the ingredients, which
includes artificial graphite, and then improving the nanostructure of
the lithium nickel manganese cobalt oxide to create a crystal structure
that’s less likely to crack and degrade performance. The exact recipe
allows all of Tesla’s competitors to improve their own battery tech, so
what’s going on?
According to Wired,
who spoke to former researchers who worked in the Dalhousie lab, by
publishing the most important details of this research, it provides a
new performance benchmark for all of the other R&D labs working on
improving battery tech, so, ideally, a million miles of battery life is
just the beginning. But Elon Musk is not one to simply give away
valuable research without a backup plan, and as Wired points out, just
days after this paper was published, Tesla was awarded a patent
for a new electric vehicle battery featuring nearly the exact same
chemical makeup as the ones detailed in the research paper. One of the
inventors listed in the new patent was physicist Jeff Dahn, who just so
happens to lead Dalhousie University’s battery lab.
The exact details of Tesla’s newly patented lithium-ion battery
aren’t known, but former researchers who worked alongside Dahn believe
there’s a very good chance it already outperforms the battery detailed
in the research paper. It’s also unknown when Tesla would put the new
battery into production, but there will undoubtedly be plenty of fanfare
when Musk officially debuts it to the world.
Tags: clean energy, CSE, palladium, PGM, PGM Demand, stocks, tsx, tsx-v Posted in New Age Metals | Comments Off on New Age Metals Inc. $NAM.ca – New Research Promises Electric Car #EV #Batteries That Last For a Million Miles $LIC.ca $LIX.ca $LI.ca $ELR.ca $ATL.ca
After hitting new all-time highs, palladium might be ready for even more gains, with some analysts pointing to the $1,700 level as a reality
Spot palladium reached a new record high of $1,664.34 early on Monday. Palladium’s December futures also hit a new record high, touching $1,642.90 an ounce level
At the time of writing, December futures were at $1,631.10, up 0.38% on the day
(Kitco News) –
After hitting new all-time highs, palladium might be ready for even more
gains, with some analysts pointing to the $1,700 level as a reality.
Spot palladium reached a new record high of $1,664.34 early on Monday. Palladium’s December futures
also hit a new record high, touching $1,642.90 an ounce level. At the
time of writing, December futures were at $1,631.10, up 0.38% on the
day.
Higher gold prices, rising on rising Middle East tensions and a
breakdown in the U.S.-China trade talks, have also been helping
palladium, analysts said.
“Palladium’s move higher is very much a correlation to gold. Gold
moved up quite nicely on Monday. Also, we had a silver rally as well as
platinum. Palladium followed suit. The precious metals moved higher most
likely on mentions from Fed officials of potentially more interest rate
cuts,†head of global strategy at TD Securities Bart Melek said on
Monday.
On Monday, markets were digesting the U.S. decision to send more
troops to the Gulf region following the drone attacks on Saudi Arabia’s
oil facilities on September 14. This came almost immediately after the
U.S. imposed sanctions on Iran, including the country’s central bank on
Friday.
Other significant precious metals drivers have been U.S. President
Donald Trump’s statement on Friday that he is not interested in just a
partial deal with China and Chinese officials proceeding to cancel their
visit to U.S. farmers.
Healthy demand
Palladium has also been supported by healthy demand, limited supply,
higher equities and liquidity concerns, according to UBS strategist Joni
Teves.
“The combination of healthy demand, constrained supply, and
challenging liquidity conditions is likely driving prices higher here.
Our understanding is that there were some additional supplies earlier in
the year mainly from release in pipeline stocks, which likely drove the
easing in forwards in H1. But still-healthy demand implies that those
stocks should have been well absorbed,†Teves wrote on Monday.
The new high surged past palladium’s significant resistance barrier
of $1,620, which means more upside, including $1,700 is possible, said
Commerzbank AG commodity analyst Carsten Fritsch.
“It already exceeded the zone of massive resistance at 1,600/1,620 on
Friday, opening up scope for a further rise to $1,700. There has been
no evidence of late of any significant investor interest in palladium.
Net long positions have climbed only marginally, while ETF holdings have
remained at a low level,†Fritsch wrote.
Downside risks
Some downside risks remain for palladium this year, including the unresolved U.S.-China trade war.
“A breakdown of U.S.-China trade talks, deterioration in economic
data and a pullback in equities from the highs, therefore, presents
downside risks for palladium over the remainder of the year. The rally
to all-time-high palladium prices might attract some short positions in
the near term, especially considering how low gross shorts are at the
moment – only 25% of the record,†Teves explained.
BofA Merrill Lynch also sees a high probability of a cool down in the rally based on subsiding “fear in physical markets.â€
“Assets under management at ETFs have now stabilized, suggesting that
the immediate need and willingness of market participants to tap these
vehicles has been limited. While fundamentals remain solid … all this
suggests that the rally especially of palladium may pause here,†BofA
Merrill Lynch wrote in a note in September.
Tags: clean energy, CSE, palladium, PGM, PGM Demand, stocks, tsx, tsx-v Posted in New Age Metals | Comments Off on #Palladium hits record highs, is $1,700 next? New Age Metals $NAM.ca Owns North America’s largest primary platinum group #PGM metals deposit $WG.ca $XTM.ca $WM.ca $PDL.ca
Palladium price peaks at new record high, rhodium roaring
Palladium hit a fresh all-time high on Friday on persistent worries about supply from South Africa and prospects of a pickup in demand in China.
Nymex Palladium futures gained 1.5% to $1,636.60 an ounce in New York in morning trading before easing back. Palladium’s gains for the year now top 40% or $477 per ounce.
Palladium hit a fresh all-time high on Friday on persistent worries
about supply from South Africa and prospects of a pickup in demand in
China.
Nymex Palladium futures gained 1.5% to $1,636.60 an ounce in New York
in morning trading before easing back. Palladium’s gains for the year
now top 40% or $477 per ounce.
The threat of labour unrest in South Africa, which together with
Russia are responsible for more than 80% of global platinum group metal
output, loomed large again on Friday after the militant union Amcu
re-elected its firebrand leader.
Amcu rose to prominence in 2012 when clashes between police and
striking workers at the Marikana mine in the African nation’s prolific
platinum belt left 34 dead.
Any signs of stimulus from the Chinese auto market could lead to additional upside price potential.
BMO Capital Markets
More than three-quarters of palladium ends up in catalytic converters
for gasoline engines and the rise in the precious metal comes despite a
severe slowdown in vehicle sales around the world.
Top consumer China has seen sales drop for 14 out of the last 15
months, and in August 9.9% fewer cars and truck rolled off lots compared
to last year. Annual sales in the world’s no 2 market – the US – are
also expected to come in below 2018’s total.
What has lifted palladium is greater average loadings per vehicle as
more stringent emissions standards are implemented in China and Europe.
BMO Capital Markets in a recent note said “any signs of stimulus from
the Chinese auto market could lead to additional upside price
potential.â€
Robust rhodium
Sister metal rhodium is also on a roll, more than doubling in price
so far this year. Rhodium, also used mainly in autocatalysts, exchanged
hands at $5,400 an ounce on Friday in New York, the highest in 11 years.
Due to rarity, the small size of the market and concentrated supply, prices are typically volatile.
Rhodium (and sister metal ruthenium) stand out when it comes to price
swings – rhodium touched $10,025 an ounce just before the 2008
financial crisis hit, but would drop 90% before the end of that
tumultuous year.
Platinum was trading flat on Friday at $945.10 after briefly scaling
$1,000 an ounce two weeks ago. Given the historically weak price, some
investors are using the opportunity to stock up on the metal.
ETF holdings of platinum have expanded rapidly this year, reaching 3.3m ounces last week, up 38% or 916,000 ounces in 2019.
In contrast, palladium ETF vaults have been emptying as investors
lock in some of the gains. Palladium-backed ETF holdings total 655,000
ounces, down 120,000 ounces year to date.
Posted by AGORACOM-JC
at 11:22 AM on Thursday, September 19th, 2019
A look at a mineralized outcrop containing Platinum Group
Metals (PGMs) on the River Valley project site. Metals such as PGMs and
lithium will continue to experience sustained increases in demand as the
global push for sustainability becomes mainstream.
The future of transportation is poised for sustainability
through the global adoption of hybrid electric vehicles (HEVs) and fully
battery electric vehicles (BEVs)
Industry experts are forecasting a consistent increase in demand for lithium, used to develop the batteries in HEVs and BEVs
Industry experts are also forecasting an increase in demand for the Platinum Group Metals (PGMs) used by autocatalyst manufacturers, to ensure compliance with tightening emissions regulations
New Age Metals’ flagship River Valley primary PGM project in
Ontario, and lithium division with assets in Manitoba positions the
company as a key player in the growth of HEVs and lowering CO2 emissions
By: Jason Smith
Harmful carbon dioxide emission levels are rising globally,
largely due to the use of fossil fuels as the primary source of energy
used by the transportation industry. Examples of this use include the powering of jumbo jets, container ships and semi-trucks.
Passenger vehicles also rely on fossil fuels and have a bad reputation
for the amount of pollutants they release into the atmosphere on a daily
basis.
However, passenger vehicles produce more than four times the
greenhouse gas (GHG) emissions of all domestic aviation, according to
the Globe and Mail. The focus over the last few years has been on making these passenger vehicles
more environmentally-friendly, which is a large reason why automakers
have started producing electric or hybrid electric vehicles (HEVs).
While automakers are being forced by emissions regulation to reduce
their carbon footprint, the majority of consumers are not ready to go
fully electric and are increasingly choosing hybrid vehicles to bridge
the gap with cars that solely use batteries. With more vehicles being
sold worldwide each year, especially those that are less pollutive,
automakers will need more of the critical raw materials used to create
the hybrid and electric vehicles.
This need for less pollutive methods of transportation is where
lithium and palladium enter the picture. Lithium is used to produce
batteries, but the size of car batteries used in HEVs and the increase
in HEV sales that is anticipated by the industry
will require substantially more lithium than what is available in the
market today. Palladium, which is a member of the PGM family, is largely
used to reduce pollution that originates from vehicles operating with
internal combustion engines (ICE) through its use as the primary
‘catalyst’ in catalytic converters (commonly known as auto-catalysts).
While palladium is often overlooked when it comes to the push for
sustainability, it has played a huge role in reducing the amount of
toxic emissions being released into the atmosphere. This positive impact
is most noticeable in urban areas where automobiles are concentrated.
The value of an ounce of palladium has increased exponentially in the
past year, rising 60 per cent year-over-year in Sept. 2019 from under
USD$950 to over USD$1500. The reason for the dramatic price movement is
due to supply concerns and the metals value as the premier option for
use in auto-catalysts.
With ICE-powered vehicles not going away any time soon, the global demand for palladium will endure as a pollution-control
device, and investors are taking notice. Anton Berlin is the head of
strategic marketing at the world’s largest producer of Palladium,
Norilsk Nickel. He recently stated, “Hybrids — cars with both an
electric battery and a combustion engine — will dominate the electric
vehicle market in the long-run, which suggests a long-term advantage for
the PGM market.â€
The extensive infrastructure required to support a universal
transition to EVs still needs time to be completely fleshed out but is
gaining speed. According to a new report entitled, “2019 Investor’s Business Daily/TIPP Electric Vehicle Outlook Study,â€
range and available charging stations are what make potential EV buyers
the most apprehensive, although these are issues that are currently
being addressed.
Regardless, the desire to limit pollution is leading to the growing
demand for middle-ground HEVs, which is causing car manufacturers to
focus on their abilities to design and assemble automobiles that emit
less noxious fumes primarily through the use of palladium and lithium.
Research has shown that hybrid electric vehicles actually require
more palladium and lithium than traditional gasoline-powered vehicles,
so increased adoption of hybrid vehicles will subsequently increase
demand for these metals.Harry Barr, CEO, New Age Metals.
A flagship project in a historic mining district
Anticipating the continued strength in demand for palladium and the general forecast for lithium demand is New Age Metals
(TSX.V: NAM, OTCQB: NMTLF, FSE: P7J), bolstered by the company’s
flagship River Valley project in the Sudbury region of Ontario. The
Sudbury region, known as the mining capital of Canada, is largely
dominated by major mining and processing operations run by Vale and
Glencore.
However, these companies’ operations are facing depleted ores to feed
processing facilities and may need to acquire additional sources to
operate closer to their intended capacity. This is where River Valley
comes in as an integral player, which lies just 100 km from Sudbury and
hosts 2.9 million ounces in the (NI-43 101 compliant) measured and
indicated category of palladium-equivalent (PdEq) resources and 1.1
million ounces in the inferred category.
Diagram of New Age Metals’ current project locations. Supplied
Harry Barr, CEO of New Age Metals, is well aware of the role his company is poised to play as demand for hybrids continually increases.
“Research has shown that hybrid electric vehicles actually require more
palladium and lithium than traditional gasoline-powered vehicles, so
increased adoption of hybrid vehicles will subsequently increase demand
for these metals,†he notes. New Age Metals recently had
a preliminary economic assessment completed on River Valley, projecting
a mine with a 14-year lifespan, 6 million tonnes annually of potential
process plant feed at an average grade of 0.88 g/t PdEq and a process
recovery rate of 80 per cent, resulting in an annual average payable
PdEq production of 119,000 ounces.
Barr elaborates, “It’s unique to have a deposit of mineable platinum
group metals in North America, and very unique to have a deposit near so
much processing infrastructure that’s also close to car manufacturers,â€
emphasizing the advantageous position the company finds itself in with
River Valley.
With this in mind, Barr and his team are focused on maximizing this
opportunity to expand the resources at River Valley and develop it to a
point where the project achieves feasibility and is producing. In the
meantime, the project also has tremendous exploration upside and
management plans to continue with an aggressive exploration program. A credible investment alternative to the big PGM players
A key advantage for the River Valley project is its location in a
safe, reliable mining jurisdiction. The majority of the world’s
palladium currently comes from South Africa and Russia,
both of which could be problematic in terms of long-term supply
security, political issues and concerns regarding human rights and
sustainability.
Worth noting is the fact that Norilsk Nickel is not only the worlds’ largest producer of palladium and nickel, but also the largest emitter of sulfur oxides which is a pollutant considered immediately dangerous to life and health.
Fortunately, New Age Metals’ Ontario-based project offers the benefit
of being located in a safe jurisdiction that has excess processing
infrastructure and is known for moderating the environmental impacts from mining and smelting.
Barr explains, “Sudbury’s been a mining center for 120 years, so every
type of mining service is nearby.†Given this unique situation, the
company represents a credible investment opportunity.
Sid Rajeev, vice-president of Fundamental Research Corp., conducted a
thorough analysis of the River Valley PEA. He notes, “Our biggest
takeaway from the PEA was that, at a reasonable palladium price estimate
of USD$1,200 per oz, the study showed an after-tax net present value at
5 per cent of $138 million. New Age Metals’ current enterprise value is
just USD$3 million, implying that shares are trading at just 2 per cent
of net asset value.â€
This level of potential upside is rarely available to the investment
community and as New Age Metals brings River Valley towards
pre-feasibility, it’s unlikely that the company will remain undervalued
for long.
Our biggest takeaway from the PEA was that, at a reasonable
palladium price estimate of USD$1,200 per oz, the study showed an
after-tax net present value at 5 per cent of $138 million. New Age
Metals’ current enterprise value is just USD$3 million, implying that
shares are trading at just 2 per cent of net asset value.Sid Rajeev, vice-president, Fundamental Research Corp.
Having a substantial deposit of PGMs in North America positions New
Age Metals to benefit from the future of sustainability, however there
is a general lack of knowledge about PGMs in North America due to the
low number of primary PGM producers in the arena. The company is in the
process of moving River Valley along the development curve but is also
seeking a qualified partner to assist in further exploration and
development of the project.
New Age Metals’ lithium angle
Adding to the company’s green energy story is its suite of lithium projects in Manitoba. The demand
for this metal is forecasted to increase by 20 per cent per year
through to 2028. With lithium in high demand due to the ever-increasing
growth in the popularity of battery-powered vehicles, these projects
give the company optionality on lithium discovery; two of its eight
projects are currently drill-ready. Plans to drill on the ‘Lithium One’
and ‘Lithium Two’ are in place and company management is anticipating
the initiation of these drill programs in the near future.
The company’s lithium projects are situated along strike of the Tanco
Pegmatite and the claims encompass several pegmatite groups. The
projects are also located 140 km northeast of Winnipeg, Manitoba. The
Tanco mine was owned by the Cabot Corporation who announced in Jan.
2019, that it would be selling the mine to Sinomine Rare Metals Co. Ltd
for USD$130 million. This sale demonstrates a high interest in the
project and potentially the surrounding area, which lends credibility to
New Age Metals’ projects, based on shared geology and proximity.
Exploration on Lithium One is ongoing with concentration of the
northern section, with focus on the Annie and Silverleaf Pegmatites.
Silverleaf Pegmatite has zones of spodumene and lepidolite exposed on
surface with samples up to 4.1 per cent lithium oxide (Li2O). The Annie
Pegmatite returned values up to 0.6 per cent Li2O and 0.37 per cent
Ta2O5.
On Lithium Two, the Eagle Pegmatite is exposed on surface and was
last drilled in 1948, and at the time it was indicated that it remains
open to depth and along strike. A historic tonnage of 544,460 tonnes
of 1.4 per cent Li2O was reported during this year, however the actual
amount has not been confirmed by a qualified person at this time.
An ownership map showing Tanco Mine location proximity to New Age Metals projects. Supplied
With drilling set to begin in Manitoba and River Valley continuing to
move along the development curve, New Age Metals expects to
consistently generate valuable news for investors in the coming months,
keeping the company top-of-mind. Its position in palladium and lithium
provide the company with incredible potential as a high-performing
source for investment as the need for sustainable transportation
continues to be a significant social issue.
To learn more about New Age’s operations and project portfolio, visit them online: newagemetals.com
The following video is a short overview of New Age Metals, and
outlines some of the reasons why the company is an avenue for investment
in the future of sustainability associated with the electrification of
transport
Palladium futures topped $1,600 an ounce on Thursday to finish at the highest level on record, shaking off recent data showing a decline in Chinese auto sales, as emissions standards fueled bets surrounding strong demand for the metal used in pollution-control devices.
“Palladium has witnessed a resurgence in price over the past two
months, much in line with other hard assets such as gold, platinum and
silver,†said Ryan Giannotto, director of research at exchange-traded
fund issuer GraniteShares. “What distinguishes palladium is its unique
position spanning precious and specialty industrial metals, and this
latter characteristic has benefited the metal in the momentary detente
in the U.S.-China trade conflict.â€
President Donald Trump on Wednesday announced
he would delay a tariff hike —from 25% to 30%—that was scheduled to
take effect Oct. 1, until Oct. 15., “as a gesture of goodwill.â€
The rally in palladium, which used in vehicle pollution-control
devices, comes despite data this week from the China Association of
Automobile Manufacturers which showed that China’s total auto sales fell
6.9% from the same month a year earlier to 1.96 million, according to Reuters.
Palladium for December delivery PAZ19, +3.65%
climbed $48, or 3.1%, to settle at $1,604.80 an ounce on Comex after
tapping a high of $1,616.50. Prices for the most-active contract have
never settled above the $1,600 mark, based on records going back to
January 1977, according to Dow Jones Market Data.
The metal previously settled at a record $1,588.10 on July 10 of this year and has gained 50% in the year to date.
“Auto sales have slowed, but this is more than completely offset†by
increased loadings per car for transport on China 6 emission standards
and “real-world driving (as opposed to fixed-in-a-lab testing) in
Europe, R. Michael Jones, president and chief executive officer of
Platinum Group Metals Ltd. PLG, -1.16% told MarketWatch. “In the USA, strong SUV and truck sales are also creating continued demand.â€
Annualized August auto sales in the U.S. were “better than expectedâ€
and up 2% year-over-year at 17 million vehicles, equal to a three-month
average, analysts at Evercore ISI wrote in a note last week.
Looking ahead, aggressive interest-rate cuts “should be supportive to
auto sales and palladium, as long as the risk-on mood continues…,â€
analysts at Zaner Metals said in a daily report Thursday.
Posted by AGORACOM-JC
at 8:34 AM on Thursday, August 8th, 2019
Highlights
Life of mine (LOM) of 14 years, with 6 million tonnes annually of potential process plant feed at an average grade of 0.88 g/t Palladium Equivalent (PdEq) and process recovery rate of 80%, resulting in an annual average payable PdEq production of 119,000 ounces
Pre-Production capital requirements: $495 M
Undiscounted cash flow before income and mining taxes of $586M
Undiscounted cash flow after income and mining taxes of $384M
August 8th, 2019 – Rockport, Canada – New Age Metals Inc. (NAM or the Company) (TSXV:NAM)(OTC:NMTLF)(FSE:P7J.F) Harry Barr, Chairman & CEO, stated; “We are pleased to announce that we have filed our National Instrument 43-101 Technical Report on the Preliminary Economic Assessment (PEA) on the Company’s 100% owned River Valley PGM Project in Sudbury, Ontario Canada (River Valley or the Project) titled “Technical Report, Updated Mineral Resource Estimate and Preliminary Economic Assessment of the River Valley Project” with an Effective Date of June 27, 2019, on SEDAR at www.sedar.com. The PEA demonstrates positive economics for a large-scale open pit mining operation, with 14 years of Palladium and Platinum production.”
(*) Cautionary statement NI 43-101: The
PEA was prepared in accordance with National Instrument 43-101 Standards
of Disclosure for Mineral Projects (“NI 43-101”). Readers are cautioned
that the PEA is preliminary in nature. It includes Inferred Mineral
Resources that are considered too speculative geologically to have the
economic considerations applied to them that would enable them to be
categorized as Mineral Reserves, and there is no certainty that the PEA
will be realized. Mineral Resources that are not Mineral Reserves do not
have demonstrated economic viability.
All currency is stated as CDN$ unless stated otherwise.
PEA Highlights (CDN$ unless otherwise noted): – Life of mine (LOM) of 14 years, with 6 million tonnes annually of potential process plant feed at an average grade of 0.88 g/t Palladium Equivalent (PdEq) and process recovery rate of 80%, resulting in an annual average payable PdEq production of 119,000 ounces – Pre-Production capital requirements: $495 M – Undiscounted cash flow before income and mining taxes of $586M – Undiscounted cash flow after income and mining taxes of $384M – Average unit operating cost of $19.50/tonne over the life-of-mine – LOM average operating cash cost of $971 per ounce (US$709/oz) and all-in sustaining cash cost of $972 per ounce (US$709/oz) at a 1.37 CDN: USD exchange rate. – A mining contractor will be engaged for the open pit mining – Pre-tax NPV (5%): $261M, After-tax NPV (5%): $138 M – Pre-tax IRR: 13%, After-tax IRR: 10% – Assumed metal prices of US$1,200/oz Pd, US$1,050/oz Pt, US$1,350/oz Au, US$3.25/lb Cu, US$8.00/lb Ni, US$35/lb Co – Using a + 20% Pd price sensitivity (to the base case of US$1,200/oz Pd) US$1,440 /oz Pd returns a pre-tax IRR of 19% and an after tax-IRR of 15%. – River Valley process plant feed will be treated by a conventional sulphide flotation process plant to produce a single saleable PGE concentrate that will be transported to the Sudbury area for smelting/refining – Potential for up to 325 jobs at the peak of production
Project Economics and Sensitivities
The economic results of the PEA are
summarized in Table 1 on an after-tax basis. The sensitivities and the
impact of cash flows have been calculated for +/- 20% variations against
the base case.
Table 1: Project Economics Sensitivity. All values shown are on an after-tax basis.
Project Sensitivity Analysis
Pd Price Sensitivity
%
-20%
-15%
-10%
-5%
Base Case
+5%
+10%
+15%
+20%
US$/oz
960
1,020
1,080
1,140
1,200
1,260
1,320
1,380
1,440
NPV (CDN$ M)
-23
16
59
98
138
179
220
260
300
IRR (%)
4
6
7
8
10
11
12
13
15
OPEX Sensitivity
%
-20%
-15%
-10%
-5%
Base Case
+5%
+10%
+15%
+20%
Cost Per Tonne
16
17
18
18
19
20
21
22
23
NPV (CDN$ M)
212
194
175
157
138
120
102
83
68
IRR (%)
14
12
11
10
10
9
8
7
7
CAPEX Sensitivity
%
-20%
-15%
-10%
-5%
Base Case
+5%
+10%
+15%
+20%
CAPEX (CDN$ M)
397
422
446
471
496
521
546
570
595
NPV (CDN$ M)
284
248
212
175
138
102
64
28
-6
IRR (%)
14
13
12
11
10
8
7
6
5
Updated Mineral Resource Estimate
The pit constrained Updated Mineral
Resource Estimate which formed the basis of the PEA, is set out in Table
2 and was prepared by WSP under the supervision of Todd McCracken, P.
Geo., an “Independent Qualified Person”, as defined in NI 43-101. The
effective date of this Updated Mineral Resource Estimate is January 9,
2019. The Updated Mineral Resource database contains 710 boreholes with
106,554 assays records in the database, and 2,642 surface channel
samplings. The Updated Mineral Resource Estimate was completed on the
Dana North, Dana South, Pine, Banshee, Lismer, Lismer Extension, Varley,
Azen, Razor, and River Valley Extension Zones, using the ordinary
kriging (OK) methodology on a capped and composited borehole dataset
consistent with industry standards. Validation of the results was
conducted thought the use of visual inspection, swath plots and global
statistical comparison of the model against inverse distance squared (ID2) and nearest neighbour (NN) models.
Table 2: Pit Constrained Updated Mineral Resource Estimate for River Valley PGM Project – Effective Date June 27, 2019.
Click Image To View Full Size
Class
PGM + Au (oz)
PdEq (oz)
PtEq (oz)
Measured
1,394,000
1,701,000
1,701,000
Indicated
983,000
1,166,000
1,166,000
Meas +Ind
2,377,000
2,867,000
2,867,000
Inferred
841,000
1,059,000
1,059,000
Notes:
1.CIM definition standards were followed for the Mineral Resource Estimate.
2.The 2018 Mineral
Resource models used Ordinary Kriging grade estimation within a
three-dimensional block model with mineralized zones defined by
wireframed solids.
3.A base cut-off
grade of 0.35 g/t PdEq was used for reporting Mineral Resources in a
constrained pit and 2.00 g/t PdEq was used for reporting the Mineral
Resources under the pit.
6.Mineral Resources that are not Mineral Reserves do not have economic viability
7. The Inferred
Mineral Resource in this estimate has a lower level of confidence than
that applied to an Indicated Mineral Resource and must not be converted
to a Mineral Reserve. It is reasonably expected that the majority of the
Inferred Mineral Resource could be upgraded to an Indicated Mineral
Resource with continued exploration.
About NAM’S PGM Division
NAM’s flagship project is its 100% owned River Valley PGM Project (NAM Website – River Valley Project)
in the Sudbury Mining District of Northern Ontario (100 km east of
Sudbury, Ontario). Recently the Company announced the results of the
first PEA (see News Release – June 27th, 2019)
completed on the River Valley Project. The PEA has been developed by
various independent consultants – P&E Mining Consultants Inc.
(P&E) was responsible for the open pit mining, surface
infrastructure, tailings facility, and project economics; DRA Americas
Inc. (“DRA”) was responsible for all metallurgical test work and
processing aspects of the Project; and WSP Canada Inc. (“WSP”) was
responsible for the Mineral Resource Estimate. The PEA is a preliminary
report, however, it has demonstrated that there are potentially positive
economics for a large-scale mining open pit operation, with 14 years of
Palladium and Platinum production.
On April 4th, 2018,
NAM signed an agreement with one of Alaska’s top geological consulting
companies. The companies stated objective is to acquire additional PGM
and Rare Metal projects in Alaska. On April 18th, 2018,
NAM announced the right to purchase 100% of the Genesis PGM Project,
NAM’s first Alaskan PGM acquisition related to the April 4th
agreement. The Genesis PGM Project is a road accessible, under
explored, highly prospective, multi-prospect drill ready Palladium (Pd)-
Platinum (Pt)- Nickel (Ni)- Copper (Cu) property. A comprehensive
report on previous exploration and future phases of work was completed
by Avalon Development of Fairbanks Alaska in August 2018 on Genesis.
On August 29, 2018, the Avalon report
was submitted to NAM, management is actively seeking an
option/joint-venture partner for this road accessible PGM and Multiple
Element Project using the Prospector Generator business model. See our
latest press release dated July 25, 2019 which details the current summer work program for the Genesis Project.
About NAM’S Lithium Division
The
Company has eight pegmatite hosted Lithium Projects in the Winnipeg
River Pegmatite Field, located in SE Manitoba. Three of the projects are
drill ready. The Company has applied for a drill permit for its
Lithium Two Project and expects the final permit to be granted by the
end of July. This Pegmatite Field hosts the world class Tanco Pegmatite
that has been mined for Tantalum, Cesium and Spodumene (one of the
primary Lithium minerals) in varying capacities, since 1969. NAM’s
Lithium Projects are strategically situated in this prolific Pegmatite
Field. Presently, NAM is the largest mineral claim holders for Lithium in the Winnipeg River Pegmatite Field. On January 15th 2018, NAM announced an agreement with Azincourt Energy Corporation (see Jan 15, 2018, Feb 22nd, 2018 and April 11th, 2018, May 2nd, 2018 Press Releases.
Qualified Persons and NI 43-101 Disclosure
The PEA was prepared under the
supervision of Eugene Puritch, P.Eng. of P&E Mining Consultants Inc.
The Updated Mineral Resource Estimate was prepared by Todd McCracken,
P.Geo. of WSP Canada Inc. Metallurgical test work and process plant
design and cost estimates were prepared by Jim Kambossos, P. Eng. of
DRA Americas Inc. All three are independent Qualified Persons in
accordance with NI 43-101. Mr. Puritch has reviewed and approved the
technical information in this news release. Michael Neumann, P.Eng.,
Managing Director for NAM is the Company Qualified Person as defined by
National Instrument 43-101 and has reviewed and approved the technical
content of this news release.
On behalf of the Board of Directors
“Harry Barr”
Harry G. Barr, Chairman and CEO
For further information on New Age Metals, please contact Harry Barr at 613-659-2773, or [email protected]
Neither the TSX Venture Exchange
nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
Cautionary Note Regarding Forward
Looking Statements: This release contains forward-looking statements
that involve risks and uncertainties. These statements may differ
materially from actual future events or results and are based on current
expectations or beliefs. For this purpose, statements of historical
fact may be deemed to be forward-looking statements. In addition,
forward-looking statements include statements in which the Company uses
words such as “continue”, “efforts”, “expect”, “believe”, “anticipate”,
“confident”, “intend”, “strategy”, “plan”, “will”, “estimate”,
“project”, “goal”, “target”, “prospects”, “optimistic” or similar
expressions. These statements by their nature involve risks and
uncertainties, and actual results may differ materially depending on a
variety of important factors, including, among others, the Company’s
ability and continuation of efforts to timely and completely make
available adequate current public information, additional or different
regulatory and legal requirements and restrictions that may be imposed,
and other factors as may be discussed in the documents filed by the
Company on SEDAR (www.sedar.com), including the most recent reports that
identify important risk factors that could cause actual results to
differ from those contained in the forward-looking statements. The
Company does not undertake any obligation to review or confirm analysts’
expectations or estimates or to release publicly any revisions to any
forward-looking statements to reflect events or circumstances after the
date hereof or to reflect the occurrence of unanticipated events.
Investors should not place undue reliance on forward-looking statements.
Tags: clean energy, CSE, palladium, PGM, PGM Demand, stocks, tsx, tsx-v Posted in Featured, New Age Metals | Comments Off on New Age Metals $NAM.ca Files NI 43-101 Technical Report for Preliminary Economic Assessment on the River Valley #PGE #PGM Project in Sudbury $WG.ca $XTM.ca $WM.ca $PDL.ca
Posted by AGORACOM-JC
at 5:16 PM on Tuesday, July 30th, 2019
SPONSOR: New Age Metals Inc. (NAM:TSX-V) owns one of North America’s largest primary platinum group metals deposits in Sudbury, Canada with NI 43-101 mineral resource estimate of 2,867,000 PdEq Measured and Indicated ounces, with an additional 1,059,000 PdEq ounces in the inferred category. Learn More.
NAM: TSX-V
Platinum’s Tide Is Turning – World Platinum Investment Council
In a recent interview with Kitco News, Trevor Raymond, director of research with the World Platinum Investment Council, said that the tide could be turning in platinum’s favor with resurgent interest in platinum’s demand growth potential.
Investment demand has been the critical factor behind the metal’s new bullish momentum.
Raymond noted that in the council’s quarterly supply demand publication, investment demand through exchange-traded products totaled 690,000 ounces in the first three months of the year.Â
(Kitco News) – Although platinum remains the laggard within the precious-metals complex, it is starting to catch up as platinum continues to see unprecedented investor demand.
In a recent interview with Kitco News, Trevor Raymond, director of
research with the World Platinum Investment Council, said that the tide
could be turning in platinum’s favor with resurgent interest in
platinum’s demand growth potential.
Investment demand has been the critical factor behind the metal’s new
bullish momentum. Raymond noted that in the council’s quarterly supply
demand publication, investment demand through exchange-traded products
totaled 690,000 ounces in the first three months of the year.
“That was the largest increase in ETF holdings in any three-month
period since the launch of physically backed platinum ETFs in 2007,†he
said.
He added that the trend has continued into through the second
quarter. While quoting listings data, Raymond said that EFT holdings
have increased by more than 750,000 ounces as of July.
“The magnitude and speed of the buying indicate this is institutional
money taking big positions in the platinum market,†he said. “We
haven’t seen this type of buying since 2014.â€
Although institutional investors very familiar with platinum are
jumping back in, Raymond said that retail and newer institutional
investors remain on the sidelines. He added that he expects the broader
investment market to move back into platinum when the metal sees a more
published evidence of demand growth from more diesel cars on Europe’s
roads, traction in heavy-duty fuel-cell trucks and increased use of
platinum in gasoline cars to replace scarce and pricey palladium.
Platinum’s automotive demand has suffered the last three years
because of the 2015 diesel emissions scandal. Platinum is the main
component in diesel-engine emissions control.
Raymond noted that this issue is starting to become less of a factor
in the auto sector; however, he added that a more significant factor for
platinum is its potential substitution, at a one-to-one ratio, for
palladium.
Many analysts have noted palladium’s meteoric rise in the
precious-metals space as prices have risen in the face of strong
industrial demand in gasoline vehicles and unresponsive supply. Although
many companies have been hesitant to confirm that they will substitute
palladium with platinum, Raymond said that they might have already done
so due to availability and price concerns.
“Regardless of the price difference, there is not enough palladium
supply to meet automotive needs so some companies will be forced to turn
back to platinum,†he said. “Substitution has happened before, and it
can happen again.â€
The WPIC sees a platinum surplus of around 375,000 ounces for this
year, but Raymond said that it wouldn’t take a significant rise in
demand to reduce the metal’s excess.
Tuesday, platinum is seeing some modest selling pressure as some
investors take profits after the metal posted a three-month high last
week. October platinum futures last traded at $878 an ounce, down 0.44%
on the day.
