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New Age Metals $NAM.ca Provides Corporate Update $WG.ca $XTM.ca $WM.ca $PDL.ca $GLEN $LIC.ca $LIX.ca $LI.ca $ELR.ca $ATL.ca

Posted by AGORACOM-JC at 9:58 AM on Tuesday, May 28th, 2019
  • The River Valley Project is the largest undeveloped primary Platinum Group Metal (PGM) mineral resource in North America. The Project has excellent infrastructure and is within 100 kilometres of the Sudbury Metallurgical Complex. The Project is 100% owned by New Age Metals.
  • The Project’s first economic study a Preliminary Economic Assessment (PEA) is underway and management plans to release the summary press release by the end of the second quarter.
  • The price of an ounce of Palladium represents a 35% price increase in the last 12 months. As such, for 2019, precious metals consultancy, Metals Focus believes that professional investors will eventually return to palladium, with an annual average price of US$1,490 per oz. in 2019. Rhodium, which is also present at River Valley, has seen a price increase of over 15% this YTD at US$2,860 per oz.
  • For Platinum, a turnaround in investor sentiment stimulated heavy buying of platinum Exchange Traded Funds (ETF’s) in early 2019. Investors were motivated by supply disruption risks and an improving outlook for auto demand.
  • Drill permits for our Lithium Two and Lithium One Projects in Manitoba have been applied for and the company is in the final approval process from the province of Manitoba.
  • The Company is actively seeking a strategic partner for our Genesis PGM/Polymetallic Project in Alaska

May 28th, 2019 / Rockport, Canada – New Age Metals Inc. (TSX.V: NAM; OTCQB: NMTLF; FSE: P7J.F) Harry Barr, Chairman & CEO, stated; “We are pleased to update our shareholders and interested parties as to our ongoing activities in both our PGM and Lithium divisions. Specifically, give a progress update on the River Valley Project Preliminary Economic Assessment (PEA). This update will detail our exploration and development plans for both the PGM and Lithium divisions in 2019. Furthermore, we will highlight the current PGM market and particularly Palladium and Platinum price trends.”

Update on the PEA

NAM commissioned both P&E Mining Consultants (P&E) and DRA Americas (DRA) to complete the River Valley Project’s first economic study, a Preliminary Economic Assessment (PEA) in August 2018.

The company has been informed by its engineering consultants that the preliminary PEA mine plan, production schedule and financial model is nearing completion, and we plan to release the highlights of the study in a press release before the end of the second quarter this year.

At this stage, the PEA is focused on investigating the mining potential of the project, including the latest discovery, the Pine Zone and other footwall mineralization potential. The study will also help define areas of the project that require additional exploration and development.

The objective of the PEA would be to create a conceptual mine plan, mine schedule, a capital cost estimate, and operating cost estimate incorporated into a financial model to provide total cash flow, net present value (NPV), and internal rate of return (IRR).

River Valley PGM Project Goals & Objectives

During 2019, the company’s exploration & development objectives are as follows:

  1. 1.Complete the re-stated resource calculation (Q1 2019);
  2. 2.Complete the Projects first economic study, PEA (Q2 2019);
  3. 3.Complete surface exploration on additional target areas based on recommendations of the updated 43-101 and the 2017/2018 geophysics (slated for Q3-Q4 2019);
  4. 4.Arrange additional funding for continued development of the project (ongoing);
  5. 5.Conduct a 5000-metre drill program focusing in the northern portion of the Project;
  6. 6.Solicit a strategic partner to aid in further exploration and development of the Project. Potential major partners are waiting for the PEA results to complete additional due diligence on River Valley.

Palladium, Platinum, Rhodium Price & Performance

There are various reasons why the Palladium (Pd) price movement has occurred and more to suggest that Pd price may continue to rise. First, there are continued supply deficits forecasted for Pd and in 2019 alone Johnson Matthey (JM) expects that it could exceed a million ounces (PGM Market Report – May 2019). Emissions standards are increasing worldwide as is the preference for larger vehicles, both of which require more Pd to be used in the catalytic converters.

The PGM’s Platinum, Palladium and Rhodium are extensively used in catalytic converters to convert harmful gasses like hydrocarbon emissions into less harmful substances. The allowable limits of carbon monoxide (CO) and hydrocarbon (HC) from gasoline passenger vehicles in China will be reduced by 60% by 2025 (SFA Oxford, 2019).

The Chinese emission standard story alone tends itself to the increase in Pd demand to grow by 500,000 ounces by 2021. To summarize, the Palladium fundamentals and forecasts align well with the timeline for development of our River Valley Project.

The platinum market is expected to move into deficit in 2019, with a resurgence in investor activity outweighing modest falls in industrial and jewellery demand. Johnson Matthey also expects a tentative recovery in autocatalyst consumption, as stricter heavy duty emissions legislation is enforced first in China and then in India. JM forecasts a modest increase in primary supplies, but this could be tempered by electricity shortages and, potentially, industrial action in South Africa, while growth in recycling may be dampened by processing capacity constraints in some regions.

Both Platinum and Palladium are considered precious metals, like Gold and are used as a store of value. Rhodium, which is also present at River Valley, has seen a price increase of over 15% this year at US$2,860 per oz.

2019 Mineral Resource Update

On January 9, 2019 NAM filed its latest Mineral Resource Estimate on the River Valley Project. The May 2018 Resource Estimate presented a global mineral inventory. The January 2019 Resource presents a pit constrained mineral resource that shows reasonable prospects for eventual economic extraction. The results of the updated Mineral Resource Estimate are tabulated in Table 1 below (0.35 g/t PdEq open pit and 2.0 g.t PdEq underground cut-off). This 43-101 Technical Report is available on SEDAR. See page 4.

Table 1: Results from the January 2019 NI 43-101 Mineral Resource Estimate.


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. 1.CIM definition standards were followed for the Mineral Resource Estimate.
  2. 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. 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.
  4. 4.Palladium Equivalent (PdEq) calculated using (US$): $950/oz Pd, $950/oz Pt, $1,275/oz Au, $1500/oz Rh, $2.75/lb Cu, $5.25/lb Ni, $36/lb Co.
  5. 5.Numbers may not add exactly due to rounding.
  6. 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.


Click Image To View Full Size

Figure 1: The Yellow Band represents the footwall potential area of the River Valley Deposit based on the results of the Pine Zone where footwall mineralization was noted to extend 150 metres eastward from the Pine Zone/ T3 main deposit.

At present the only area that has confirmed footwall mineralization is in the Pine Zone (defined from 2015 to 2017 drilling). Geophysics and exploration continues to test other areas of the Deposit. Management’s specific focus is to outline a potentially economic Mineral Resource in the northern portion of the Project that can be subsequently developed as a series of open pits (bulk mining), crushed, and concentrate on site, with concentrate shipped to a smelter in Sudbury.

2019 Exploration Plan – River Valley PGM Project

To date an approximate 160,441 metres (481,323 feet) in 710 drill holes have been conducted by the company as operators on the River Valley Project. Several independent 43-101 compliant resource estimates have previously been generated for the deposit through the exploration and development phases. The River Valley Deposit’s present resource, with approximately 2.9M PdEq ounces in Measured Plus Indicated mineral resources and near-surface mineralization, covers a total of 16 kilometers of strike. The company continues to explore and enhance the River Valley PGM Deposit.

After the ground proofing and surface exploration program conducted in the Summer/Fall of 2018, (which followed up on the most recent induced polarization survey by Abitibi Geophysics) NAM management has designed a 5,000 metre drill programs to test the new geophysical anomalies. See Figure 2 below, which shows these new geophysical anomalies and potential targets for the next stage of drilling at River Valley superimposed over the upper 4 kilometres of the project map.


Click Image To View Full Size

Figure 2: Northern portion of the project with superimposed 2018 merged IP at -100m level. Retrieved from River Valley Geophysical review by Geoscience North (Alan King, P. Geo., M.Sc.)

2019 Exploration Plans for Lithium Division

The Company has eight pegmatite hosted Lithium Projects in the Winnipeg River Pegmatite Field, located in SE Manitoba. In 2018 NAM conducted surface exploration programs on our Lithman East, Lithman North, Lithium One and Lithium Two projects. The programs consisted of reviewing, characterising and sampling the known surface pegmatites. Samples were taken from the Eagle and FD5 pegmatites on Lithium Two and returned results of up to 3.8% Li2O. On Lithium One, samples were taken from the known Silverleaf and Annie pegmatites and returned significant Li20 assays of up to 4.1%.

In 2019, the Company plans to drill the Lithium Two Project first. Drill permits have been applied for and the company is awaiting approval from the province. The application has been accepted by the relevant parties to date and is in the final stages of the approval process. The first drill permit is expected to be issued in June 2019.

Genesis PGM / Polymetallic Project

On April 4th, 2018, NAM signed an agreement with one of Alaska’s top geological consulting companies. The company’s 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/Polymetallic Project, NAM’s first Alaskan PGM acquisition related to the April 4th agreement. The Genesis PGM/Polymetallic Project is a road accessible, under explored, highly prospective and 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. (available here). A 2019 sampling program will be conducted to continue to outline additional mineralization along the 800-metre by 40-metre mineralized zone. Management is actively seeking an option/joint-venture partner for this road accessible PGM and multiple element Project using the Prospector Generator business model.

Opt-in List

If you have not done so already, we encourage you to sign up on our website (www.newagemetals.com) to receive our updated news.

QUALIFIED PERSON

The contents contained herein that relate to Exploration Results or Mineral Resources is based on information compiled, reviewed or prepared by Carey Galeschuk, a consulting geoscientist for New Age Metals. Mr. Galeschuk is the 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 Anthony Ghitter or Cody Hunt, Business Development 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.

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Posted in New Age Metals | Comments Off on New Age Metals $NAM.ca Provides Corporate Update $WG.ca $XTM.ca $WM.ca $PDL.ca $GLEN $LIC.ca $LIX.ca $LI.ca $ELR.ca $ATL.ca

New Age Metals Inc. $NAM.ca – The #lithium industry needs a $17b injection to meet 2025 demand – here come the deals $LIC.ca $LIX.ca $LI.ca $ELR.ca $ATL.ca

Posted by AGORACOM-JC at 3:16 PM on Monday, May 27th, 2019

SPONSOR: New Age Metals Inc. The company’s new 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.

NAM: TSX-V

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The lithium industry needs a $17b injection to meet 2025 demand – here come the deals

  • One expert says at least US$12 billion ($17.3 billion) needs to be invested in new lithium projects by 2025 if the industry is to have any realistic hope of matching supply with demand

Angela East

Corporate deals in the lithium industry are heating up at a time when there is a predicted multi-billion-dollar cash injection needed to ramp up supply to meet rapidly growing demand.

One expert says at least US$12 billion ($17.3 billion) needs to be invested in new lithium projects by 2025 if the industry is to have any realistic hope of matching supply with demand.

US lithium expert Joe Lowry told delegates at the Latin America Downunder mining conference in Perth that the ‘Big Four’ global lithium producers – SQM, Albemarle, Jiangxi Ganfeng Lithium and Tianqi – could not alone meet 2025 lithium demand.

“Overall, the industry faces a lack of financing and needs to inject more than US$12 billion within five years to have a chance of meeting demand,” he said.

“This requirement is exacerbated further by known and emerging failures in lithium start-ups which have demonstrated a lack of necessary skillsets – high profile failures that have discouraged sector investment.

“There will not be any significant lithium chemical oversupply anytime soon. While there have been many optimistic supply forecasts, recent results speak for themselves.”

Pfft. What lithium glut?

Lowry took aim at Morgan Stanley and other analysts that previously predicted a flood of new lithium supply would hit the market this year causing an oversupply and pushing down the price.

He dismissed the forecasts of oversupply as a myth.

“The ‘myth’ is driven by reports from ‘big bank’ analysts and supported by statements by Chilean regulator, CORFO, after its revised agreements allowing Albemarle and SQM to produce more material from the Atacama brine resource,” Lowry said.

“The reality is increasing production quickly is not so easy.”

Last year there was about 270,000 tonnes of lithium demand and Lowry estimates that will rise to about 1 million tonnes in 2025.

“It’s pretty much not argued anymore that e-mobility is happening — whether it’s EVs or scooters or ferries in Scandinavia, the transition to e-mobility is on,” Lowry said.

“My numbers are actually some of the lower numbers out there.”

Battery-related lithium demand in 2018 accounted for 60 per cent, up from 25 per cent five years earlier.

“So this market is becoming a battery-related market. There’s really no question about that,” Lowry said.

But new lithium supply is hard to bring online and SQM, Albemarle, Jiangxi Ganfeng Lithium and Tianqi are likely only be able to maintain their 68 per cent market share, according to Lowry.

“Almost every lithium project that has ever started with optimism has taken three or four years longer to reach full capacity and that’s what we’re seeing,” he said.

“That means there’s a lot of juniors or smaller companies around the world that need to get financed and need to get moving.”

Deal-making steps up a gear

Close on the heels of Wesfarmers’ seminal $776m bid for Kidman Resources (ASX:KDR), Galaxy Resources (ASX:GXY) has tipped $22.5m into more junior producer Alliance Mineral Assets (ASX:A40) to become its largest shareholder.

The cash injection gives Galaxy a roughly 11.5 per cent interest, and a blocking stake, in Alliance, managing director Mark Calderwood told Stockhead.

Galaxy’s investment was part of a larger $32.5m placement at 20c per share, which also included $10m from a subsidiary of Jiangxi Special Electric Motor Co.

Jiangxi has about a 9.9 per cent stake in Alliance.

“I guess from [Galaxy’s] point of view it’s stopping us from being a target for someone else to come and grab, and we were the cheapest lithium miner in the market,” Calderwood said.

“Both Jiangxi and Galaxy are a lot bigger than we are, they’re both experts in their sectors so that’s good for us and it enables us to be cooperative in the future.

“Both parties have either a blocking stake or almost a blocking stake.”

Australia’s downstream gaining momentum

Right now, Australia has absolutely zero per cent share of the global lithium chemical market, but the Galaxy-Alliance deal is another step towards building the country’s downstream industry.

“I think [Galaxy] has desires to go further downstream as well, and Jiangxi [Ganfeng Lithium] already has that joint venture with Jiangxi Special Electric Motors, which is downstream, but there’s other things we can do as well,” Calderwood said.

The battery supply chain is a $2 trillion market opportunity, and a report released at the start of 2018 gave Australia about 18 months to two years to get cracking on building its downstream industry.

Over a year into that deadline, the federal government has established a new Future Batteries Industries Cooperative Research Centre (FBI CRC) in Western Australia.

The research partnership of 58 industry, academic and government partners will address industry-identified gaps in the battery industries value chain.

The goal is to expand battery minerals and chemicals production and develop opportunities for manufacturing batteries in Australia.

Good time to invest

Lowry says rapidly rising demand and the difficulty in bringing new lithium supply online supports his “thesis” that the market is going to outgrow supply.

“Anyone who is interested in investing in the lithium market has a great opportunity now because share prices are very, very depressed,” he said.

“If you look at the market caps of some of the Australian companies, even the ‘Big Four’ companies, their market caps are very much down from where they were a couple of years ago.

“So if you’re interested in lithium, I would tell you now’s a good time to get in.”

Source: https://stockhead.com.au/resources/the-lithium-industry-needs-a-17b-injection-to-meet-2025-demand-here-come-the-deals/

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New Age Metals Inc. $NAM.ca – #EV ‘arms race’ revs up Murkowski’s old minerals bill $LIC.ca $LIX.ca $LI.ca $ELR.ca $ATL.ca

Posted by AGORACOM-JC at 3:19 PM on Thursday, May 9th, 2019

SPONSOR: New Age Metals Inc. The company’s new 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.

NAM: TSX-V

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EV ‘arms race’ revs up Murkowski’s old minerals bill

E&E News staff Energywire: Thursday, May 9, 2019

The Tesla Model S (left) and Model X charging side by side. Steve Jurvetson/Wikimedia Commons

An old proposal to jump-start American mining has been recharged by a newfound focus on electric vehicles and the elements needed to power them.

Congress has bandied about ideas for mining more “critical minerals” for as long as the United States has been losing ground to other nations, namely China, in supplying elements used in military, energy and emerging technologies.

But a different narrative took center stage when Sen. Lisa Murkowski (R-Alaska) introduced her latest critical minerals bill last week: fixing the EV supply squeeze (Energywire, May 3).

The Senate Energy and Natural Resources Committee chairwoman advocated helping the United States “compete in growth industries like electric vehicles and energy storage,” while her co-sponsor and committee ranking member, Sen. Joe Manchin (D-W.Va.), said he was “very much concerned” about lithium-ion batteries.

Sources traced the new emphasis to a recent closed-door summit of automakers, mining companies and federal officials.

Murkowski teased her bill at a Washington, D.C., event organized by Benchmark Minerals, a consulting firm specializing in battery mineral supply chains.

Despite its small size — 26 employees — Benchmark has increasing influence on Capitol Hill.

Reached by phone yesterday, Benchmark founder Simon Moores declined to say who attended the summit, but he said the fact that Murkowski highlighted lithium, cobalt, graphite and nickel was “a reaction” to his testifying to her committee twice in as many years.

“For me, the most important development is that focus on these four

[minerals]

for electric vehicles,” he said. “And that is a big step forward in my eyes because it refines the focus and refines the discussion.”

Robert Mintak, CEO of Canadian mining company Standard Lithium Ltd., also declined to go into detail about the Benchmark summit, only saying it was “well-attended across numerous agencies.”

“The narrative is being curated to make the current state of the nation understand that it isn’t a tree-hugging narrative,” he said. “There’s an opportunity you need to get in front of.”

The strategy

The EV rebranding appears to be a marketing maneuver, said Jim Constantopoulos, a geology professor at Eastern New Mexico University and director of its Miles Mineral Museum.

“Those folks that would be more likely to drive an EV … would normally be opposed to any sort of mining, let alone a bill that would eliminate roadblocks to mining,” Constantopoulos said. “By referring to it as an EV bill, they might garner some support from that sector.”

Senate Energy and Natural Resources Chairwoman Lisa Murkowski (R-Alaska). Energy and Natural Resources Committee

Environmentalists have generally condemned critical minerals legislation as an excuse to slash environmental standards. Murkowski’s bill would task federal agencies with streamlining mine permitting.

President Trump has ordered his administration to do the same. Under an executive order, the U.S. Geological Survey created a list of 35 critical minerals and the Department of Commerce set to work drafting a report of policy recommendations to mine more of each of them.

The report was due in November, but industry advocates expect the White House to publish its findings as soon as next week.

“I know we’re getting close on the strategy, but to my knowledge, the White House is still deciding on a rollout date,” USGS spokesman Alex Demas said.

The White House declined to speculate on any announcement.

‘Barely even in the game’

Benchmark says about 1.7 terawatt-hours’ worth of battery factory projects are in the development pipeline — or roughly the equivalent of 24 million to 26 million EVs, depending on the battery pack.

“We are in the midst of a global battery arms race in which the U.S. is presently a bystander,” Moores told lawmakers in February (E&E Daily, Feb. 6).

Most of the world’s lithium comes from a region in South America crisscrossed by massive salt flats. About 1% of the world’s raw lithium comes from the United States. North America’s only active lithium operation is the Silver Peak mine in Nevada, although the Los Angeles Times reported this week about a battle brewing over a second one in Death Valley.

“Despite significant domestic resources, we’re barely even in the game,” said National Mining Association President and CEO Hal Quinn.

As for cobalt, about 68% comes from the Democratic Republic of Congo, where a small percentage of the mineral is illegally mined using child labor, according to a 2017 Amnesty International report.

The industry is actively looking to cut back on cobalt, but even if they are successful, new battery production will still increase demand.

“There’s no way that entire battery industry can just abandon cobalt as a critical element for their cathode,” Benchmark consultant and former Tesla employee Vivas Kumar said at another recent event in New York.

Where do companies stand?

Automakers have generally supported previous critical minerals bills, and this year is no different.

The Alliance of Automobile Manufacturers, a powerful trade group that represents Ford Motor Co. and General Motors Co., has not changed its stance since testifying in support of the bill in 2014.

“Whether it’s the aluminum in automotive frames, the platinum in catalytic converters, or the lithium and nickel in electric vehicle batteries, minerals are vital components in every automobile on the road today, and future models,” spokesman Wade Newton said in an email.

But Tesla declined to comment, as did Fiat Chrysler Automobiles. A Ford spokeswoman redirected inquiries to the Auto Alliance.

The Electric Drive Transportation Association, which advocates for electric vehicle makers and other companies in the electric and hybrid vehicle industry, said it had yet to thoroughly examine Murkowski’s legislation.

“We appreciate the bipartisan effort to reinforce the supply chain for electric vehicles and are currently reviewing the bill,” spokesman Jake Styacich said.

While the talking point has changed, China remains the foremost national security concern.

In 2015, the Chinese government published a plan for its manufacturing sector, Made in China 2025, which identified battery minerals as a key area in which to seek dominance.

Robbie Diamond, president of Securing America’s Future Energy, a group fighting foreign oil dependence, called it a “wake-up call.”

“We do not want to go from dependence on oil and troubles in the Middle East to dependence on China for batteries,” he said.

Diamond cited Moores’ February testimony as evidence.

He added: “Anybody who takes our security seriously has to ask themselves the question: Can we fall this far behind?”

Reporters Dylan Brown, Kelsey Brugger, Timothy Cama, David Iaconangelo and Maxine Joselow contributed.

Source: https://www.eenews.net/stories/1060299813

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New Age Metals Inc. $NAM.ca – Supply And Demand Outlook Favors #Palladium Vs. Platinum $WG.ca $XTM.ca $WM.ca $PDL.ca

Posted by AGORACOM-JC at 12:16 PM on Thursday, April 18th, 2019

SPONSOR: New Age Metals Inc. The company 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.

NAM: TSX-V

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Supply And Demand Outlook Favors Palladium Vs. Platinum

  • Palladium has outperformed platinum ever since the fundamentals of supply and demand have changed due to the diesel emissions scandal.
  • The gap between platinum and palladium has shrunk in recent weeks, which would break the current trend of palladium outperforming platinum if it continues.
  • Both the fundamental and technical pictures point to the trend staying in place relative to platinum and palladium despite the recent hiccup.

The biggest source of demand for platinum (PPLT) and palladium (PALL) is the automotive industry where emission standards are becoming increasingly stringent. These standards are driving demand for platinum and palladium due to their ability to help reduce harmful emissions. The result has been a sort of competition between the two of them.

However, the competition has become somewhat one-sided ever since the platinum market was rocked in 2015 by the emissions scandal or “Diesel Gate” involving Volkswagen (OTCPK:VWAGY). The reason is because platinum is heavily used in vehicles with diesel engines. On the other hand, palladium is associated with gasoline engines.

Cars powered by diesel engines have since fallen out of favor, and people are now turning towards cars powered by gasoline engines. This trend does not look to change anytime soon, but it’s set to continue for the foreseeable future. This is bullish for palladium and bearish for platinum. The result can be seen in the supply and demand equation for palladium and platinum.

The market for palladium has a deficit with a surplus for platinum

The emissions scandal has fundamentally altered the landscape for vehicles powered by diesel and gasoline engines and, by extension, platinum and palladium. The former is seeing demand decrease, and the latter is seeing demand increase as there is a shift away from diesel-powered cars towards gasoline-powered cars.

The two tables reveal that the platinum market has a surplus, with supply exceeding net demand. Except for industrial demand, every other segment, including autocatalyst, jewelry, and investment, is in decline. While supplies from mining have stayed roughly the same, platinum recycling is adding to the surplus of platinum in the market. The trend is clearly bearish for platinum.

Platinum supply and demand (Unit: 1000 oz)
Supply 2016 2017 2018
South Africa 4392 4449 4471
Russia 717 703 657
Others 988 953 980
Total supply 6097 6105 6108
Demand
Autocatalyst 3342 3218 3052
Jewelry 2412 2400 2363
Industrial 1806 2022 2321
Investment 620 361 89
Total demand 8180 8001 7825
Recycling -1934 -2072 -2215
Net demand 6246 5929 5610
Surplus/deficit -149 176 498

Source: Johnson Matthey

The opposite is true for palladium. Supply of palladium falls short of net demand and is driven primarily by the increased demand in the autocatalyst segment. Recycling has made more palladium available, but supplies have yet to eliminate the deficit in the market for palladium. Overall, the trend for palladium looks to be a lot better compared to platinum.

Palladium supply and demand (Unit: 1000 oz)
Supply 2016 2017 2018
South Africa 2570 2550 2590
Russia 2773 2406 2840
Others 1417 1405 1450
Total supply 6760 6361 6880
Demand
Autocatalyst 7951 8428 8655
Jewelry 191 173 166
Industrial 1875 1832 1855
Investment -646 -386 -555
Total demand 9371 10047 10121
Recycling -2491 -2899 -3212
Net demand 6880 7148 6909
Surplus/deficit -120 -787 -29

The forecast for 2019 calls for more of the same, assuming there are no unforeseen events that could disrupt the supply and demand equation. Platinum will have a surplus, and palladium, a deficit. The trend established in recent years as shown in the two tables is not expected to change. That is bullish for palladium, but bearish for platinum.

Divergence in prices for platinum and palladium

As a result of a favorable outlook, palladium prices have vastly outperformed platinum. While platinum used to command a much higher price than palladium, the roles have now been reversed, and palladium is now worth more. The chart below tracks the relationship between platinum and palladium prices.

Notice that at its peak in March, a troy ounce of palladium was worth almost two ounces of platinum. That ratio has now come down, and palladium is now worth 1.5 ounces of platinum. A significant change, but still far removed from the days when platinum was more expensive than palladium.

However, the fact remains that the gap between platinum and palladium has shrunk with platinum outperforming palladium during this time frame. The gap could continue to shrink, but it could also begin to widen as before. Which of the two is more likely to happen will depend on a few factors that should be taken into consideration.

Can platinum and palladium be substituted for one another in the manufacture of an autocatalyst?

The short answer is yes, but only to a certain extent. While platinum and palladium are more suitable and preferred in diesel and gasoline vehicles, respectively, it is not absolutely necessary. The more expensive palladium becomes relative to platinum, the more manufacturers may be inclined to look into replacing palladium with platinum in the manufacture of an autocatalyst. Not necessarily completely, but at least partially.

In theory, this should act as a cap on palladium relative to platinum. If the gap in prices between the two becomes too extreme, precious metal substitution could force the ratio between palladium and platinum to reverse and narrow. There would be less demand for palladium and demand for platinum would increase under these conditions. However, in practice, it is difficult to replace more expensive palladium with cheaper platinum.

The two precious metals are only needed in trace amounts, and the price difference would have to be very severe to make a noticeable difference in the final cost of a vehicle. It also takes a lot of time and expense to test that changes in precious metal composition in an autocatalyst meet desired specifications. In a nutshell, while it’s possible, it’s almost certainly not worth the trouble to replace platinum with palladium or vice versa.

Why gold prices affect platinum more than palladium

Unlike palladium, platinum prices are more prone to being influenced by the price of gold (GLD). The reason is because platinum is heavily used in jewelry, much more than palladium. Because of this, platinum is in direct competition with gold. In fact, people often have to decide which of the two, gold or platinum, they will select in a purchase.

People will more often than not pick gold, but they may be tempted to go for platinum if the former is much more expensive than the latter. Rising gold prices are, therefore, good for platinum because it makes platinum a more attractive substitute. But if gold prices fall, then there is less need for platinum because most people tend to prefer gold.

It’s, therefore, necessary that we look at gold when considering where platinum will go relative to palladium. The ratio between gold and platinum prices has changed recently as gold prices have gone down. A previous article discussing why gold is likely to face pressure can be found here.

The chart above tracks the relationship between platinum and gold prices. Notice that while an ounce of platinum was roughly equal to 60% of gold at its low, the ratio has gone up and is now at almost 70%. What this basically means is that platinum’s appeal as an alternative has declined versus gold. This should be seen as a negative for platinum demand, which could put downward pressure on the price of platinum.

Palladium looks to be priming itself for a big move

Palladium prices have been going sideways after a big drop from their recent highs. In fact, the chart pattern for palladium resembles that of a symmetrical triangle or a coil. If this technical analysis is correct, then a big move may be coming once consolidation is done. The triangle could resolve to the downside, but it’s more likely to continue the long-term trend, which is up.

Both the fundamental and technical pictures suggest that a move to the upside is the most probable outcome. In contrast, platinum is being held back by a number of issues as a previous article explains here. This would reverse the narrowing of the spread between platinum and palladium and, instead, widen the gap that exists.

The ratio between palladium and platinum has been stuck at around 1.5, as previous charts reveal. This ratio could decrease further, but the most likely path is for the ratio to resume its previous uptrend after the time it has spent consolidating. This would be consistent with the price of palladium outperforming that of platinum.

Palladium will outperform platinum

It’s important to mention that the long-term picture for platinum and palladium in terms of demand is not a good one. Recent research suggests that it will one day be possible to make an autocatalyst without the need for any precious metals such as platinum and palladium. If this happens, then both metals will be left without their biggest source of demand.

Furthermore, electrical vehicles are on the rise, and they do not emit the harmful emissions that platinum and palladium are tasked with reducing. The challenge for platinum and palladium will be to find new applications where they can be used. Otherwise, the future of platinum and palladium does not look all that bright.

Having said that, palladium is most likely to outperform platinum with both charts and supply and demand in its favor. There is still a shortage of palladium that the market will not be able to resolve in the short term. The supply deficit, combined with the recent consolidation in prices after a major correction, will most likely result in palladium rising again.

On the other hand, gold is under pressure, and it’s hard to see platinum doing well when gold is struggling. There is also a surplus of platinum that will not go away anytime soon. Therefore, barring a major supply disruption, such as a major strike that drastically reduces supplies, platinum is highly unlikely to do as well as palladium. Platinum may have outperformed palladium in recent weeks, but that should soon reverse.

Source: https://seekingalpha.com/article/4255191-supply-demand-outlook-favors-palladium-vs-platinum

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New Age Metals Inc. $NAM.ca – Record-Setting Palladium Outshines Gold, Other Precious Metals $WG.ca $XTM.ca $WM.ca $PDL.ca $GLEN

Posted by AGORACOM-JC at 11:20 AM on Wednesday, March 20th, 2019

SPONSOR: New Age Metals Inc. (TSX-V: NAM) owns one of North America’s largest primary platinum group metals deposit in Sudbury, Canada. Learn More.

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  • Palladium prices hit yet another fresh record high Tuesday, topping $1,600 an ounce for the first time, and traders are looking for still more gains in a market described as tight.
  • “Palladium has rapidly run on a broad supply shortage, seeing prices rise almost 90% since the bull run accelerated from August last year,” said a research note from commodities brokerage SP Angel.

Palladium, historically the cheapest of the precious metals, has raced to large price premiums over both gold and platinum. As of 10:08 a.m. EDT, spot palladium was trading up $14.20 to $1,590.55 an ounce after peaking overnight at $1,601.45.

“Palladium has rapidly run on a broad supply shortage, seeing prices rise almost 90% since the bull run accelerated from August last year,” said a research note from commodities brokerage SP Angel.

One of the most recent drivers of higher prices is news reports that Russia is planning to stop exports of scrap precious metals from May to November. Along with South Africa, Russia is one of two largest producers of palladium in the world.

The worries about supplies come at a time when automotive demand for palladium in catalytic converters has been robust. Even when car sales weaken, analysts point out that yet another factor is boosting demand – increased loadings of metal in each vehicle in order to meet more stringent anti-emissions regulations in a number of key nations.

One U.S. desk trader commented that time will tell whether the Russia development will have a meaningful impact on palladium, but nevertheless said that “nerves are fragile,” and thus market participants feel most comfortable holding long, or bullish positions.

“Availability of metal is very scarce,” Afshin Nabavi, head of trading at trading house MKS (Switzerland) SA., told Kitco News.

Still, he added, the continued backwardation is not as dramatic as it was a month ago. Backwardation in any commodity occurs when nearby prices are more expensive than deferred contracts, showing that users are willing to pay a premium in their efforts to get the commodity right away.

“In addition to the growing supply angst, large automakers have announced price cuts to their vehicles sold in China after the nation announced that it will reduce the VAT [value-added] tax by three points — spurring hopes that car sales in the Middle Kingdom, which have been horrible of late, could see a path towards recovery,” said a research note from TD Securities.

Analysts with Commerzbank attribute much of palladium’s strength to speculative buying interest.

Johnson Matthey last month issued a report saying that the market remained in a supply/demand deficit in 2018. The firm reported record demand of 8.66 million ounces for the metal in automotive catalysts and also strong consumption by the chemicals industry.

Some of the demand was met by disinvestment from exchange-traded funds, Johnson Matthey said. However, with ETFs holding only 730,000 at the end of 2018, compared to nearly 3 million at their peak in 2014, there is not enough metal to bridge the gap between industrial demand and supplies, Johnson Matthey said. Thus, the deficit in the palladium market is likely to “widen dramatically in 2019,” the firm said.

“Excluding investment, the underlying ‘structural’ deficit in palladium is forecast to approach 1 million ounces in 2019; even if all remaining ETF holdings were liquidated, this would not be sufficient to fill the shortfall,” Johnson Matthey said.

Gero and Nabavi are among those who look for more gains.

Nabavi commented that the $1,600 area might act as resistance for a while. But if this is breached, “we could head to much higher levels,” he said. This especially will be the case as long as there are not new sources of supply, but demand remains robust, he added.

Some analysts have even suggested that $2,000 an ounce is possible, Nabavi said, but he added that this will “take a bit of time.” He described the price rise as having order on the charts, with prices coming back to fill any chart gaps that get left behind.

“I expect more of the same,” Gero told Kitco News. “I expect tightness. I expect continued higher prices as we see less bars coming to the [New York Mercantile) Exchange for delivery.”

Palladium tends to end up in “sponge,” a powdery/grainy form that can be used by industry, he explained. And, he continued, strong demand is coming from China for both batteries and automobiles.

By Allen Sykora

For Kitco News

Source: https://www.kitco.com/news/2019-03-19/Record-Setting-Palladium-Outshines-Gold-Other-Precious-Metals.html

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New Age Metals Inc. $NAM.ca – Palladium To Hit $2,000 In 2019 – Bank of America $WG.ca $XTM.ca $WM.ca $PDL.ca $GLEN

Posted by AGORACOM-JC at 9:00 AM on Monday, March 11th, 2019

SPONSOR: New Age Metals Inc. (TSX-V: NAM) The company’s new 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. Learn More.

NAM: TSX-V

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Palladium To Hit $2,000 In 2019 – Bank of America

Neils Christensen Thursday March 07, 2019 11:02

  • analysts added that they see prices rising as high as $2,000 an ounce.
  • June palladium futures last traded at $1,473.40 an ounce

(Kitco News) – Renewed strength in the U.S. dollar, trading near a three-week high, is weighing on the entire precious metals market but that won’t be enough to stop the long-term uptrend in palladium, one bank says.

The precious metal has fallen from its record highs above $1,500 an ounce, but analysts at Bank of American Merrill Lynch (BoAML) said that it still has plenty of opportunities to move higher. The bank is lifting its price forecast this year, saying it sees the metal averaging $1,800 an ounce, a 22% increase from its previous estimate.

The analysts added that they see prices rising as high as $2,000 an ounce. June palladium futures last traded at $1,473.40 an ounce, down 0.87% on the day.

“In our view, palladium is firmly supported by fundamentals on the physical market,” the analysts said.

The bank said that prices will rise as inelastic demand is coming to a head with inelastic supply.

“For years, this has not been an issue, but persistent inventory declines have increasingly raised apprehension over the availability of the precious metal,” the analysts said. “Inelastic supply and demand, combined with market deficits, meant that there was no price at which the market would have cleared.”

While supply continues to tighten, the analysts at BoAML said that they don’t see demand shifting anytime soon as automakers continue to focus on reducing emissions. Palladium is a critical component in catalytic converters in cars with gasoline engines.

The analysts said although higher prices could force some automakers to substitute palladium with cheaper platinum, they don’t see it happening en masse. Quoting industry research, the analysts said that palladium is slightly more effective compared to platinum.

“We understand that car producers will at least for another 12 month retain the immediate focus on emissions, rather than reducing palladium costs,” the analysts said. “This implies that demand will likely remain supported, even when factoring in the recent underperformance of global auto sales.”Source: https://www.kitco.com/news/2019-03-07/Palladium-To-Hit-2-000-In-2019-Bank-of-America.html

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New Age Metals Inc. $NAM.ca – Palladium: The most precious of precious metals $WG.ca $XTM.ca $WM.ca $PDL.ca $GLEN

Posted by AGORACOM-JC at 10:32 AM on Wednesday, February 27th, 2019

SPONSOR: New Age Metals Inc. (TSX-V: NAM) The company’s new 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. Learn More.

NAM: TSX-V

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Palladium: The most precious of precious metals

For the first time in more than a decade, palladium is rivalling gold in value.

At its current spot price of just over US$1 300/oz, reaching as high as $1 400/oz in January 2018, it has truly become the most precious of the precious metals, writes CHANTELLE KOTZE.

Demand has been primarily driven by the automotive industry through the “demonisation” of diesel engines in Europe.

This article first appeared in Mining Review Africa Issue 2, 2019

The resultant growth in small petrol engines and hybrid engines, which are fitted with emission-reducing catalytic converters that require it as a catalyst to control pollution, along with the shift away from diesel engines, has benefitted the material.

Moreover, the Volkswagen emissions scandal has negatively impacted the European diesel market and platinum prices.

According to Michael Jones, the President and CEO of TSX-listed Platinum Group Metals, the developer of the Waterberg palladium-dominant project in South Africa, it has become apparent that the electric vehicle revolution has been a major factor driving demand.

While adoption rates of electric vehicles are expected to increase anywhere between 8% and 10% by 2023, Jones stresses the importance that at least half of these new electric vehicles will be hybrid electric vehicles as opposed to full electric vehicles and will therefore still require the use of palladium in the catalytic converter.

Moreover, China’s tougher new vehicle emissions standard, the China VI emission standard, released in June 2018, means that cars will require more robust catalytic converters that are able to meet the new emissions legislation – another factor that may require increased palladium during manufacture in order to minimise emissions.

According to data from German chemicals giant BASF, the China VI emission standards is expected to create an additional 1 Moz of palladium demand annually by 2020, which Jones believes the market is already experiencing.

From the 2.2 Moz of palladium estimated to be required in the manufacture of Chinese cars in 2018, palladium demand is estimated to grow to 3.1 Moz by 2020, says BASF.

These figures are not based on the amount of new vehicles, but rather the impact of the change in the standard for emissions which will require increased amounts of palladium in its manufacture to ensure the longevity of the catalyst.

While Jones notes that this may cause car manufacturers to substitute out of palladium back into platinum as a cheaper alternative, it may take several years for this change to come into effect and have a physical impact on the price of palladium.

This being said, palladium is also a much more attractive metal for autocatalysis, particularly in hybrid (petrol) electric vehicles, he adds.

Moreover, with palladium being relatively rare, mined mainly as a by-product of nickel and platinum mining, it may take a while for demand fundamentals to slow should catalytic converter demand slow, says Jones.

This increasing demand, combined with constrained long-term supply, has caused a deficit in palladium supply which has been the key driver in palladium’s high prices – a price trend which experts expect to continue.

Despite weakening automotive sales in key markets, stringent emissions controls are expected to sustain demand as governments seek to improve their emissions targets.

Jones expects this demand to continue well into the foreseeable future due to tight supply.

Source: https://www.miningreview.com/palladium-precious/

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New Age Metals Inc. $NAM.ca – #Palladium eyes $1,500 in record surge; gold hits 10-month high $WG.ca $XTM.ca $WM.ca $PDL.ca

Posted by AGORACOM-JC at 5:01 PM on Tuesday, February 19th, 2019

SPONSOR: New Age Metals Inc. (TSX-V: NAM) The company’s new 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. Learn More.

NAM: TSX-V

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Palladium eyes $1,500 in record surge; gold hits 10-month high

Simon Dawson | Bloomberg | Getty Images Gold will continue to shine amid a weak dollar, says author and gold pro Jim Rickards.

  • Palladium scaled a record peak to within striking distance of the $1,500 level on Tuesday fuelled by a sharp supply deficit, while bullion rose 1 percent to hit a 10-month high on a weaker dollar and global growth jitters.
  • Spot palladium was up 1.68 percent at $1,481.50 per ounce by 2:02 p.m. EST, having earlier soared to an all-time high of $1,491.

A sustained deficit in supply was likely to widen this year as stricter emissions standards increase demand for catalytic converters, Britain-based autocatalyst manufacturer Johnson Matthey said last week.

Adding to an already strained supply scenario for palladium, was the likelihood of an improvement in demand from the auto sector, given the expectations of a U.S.-China trade deal materializing, said Bart Melek, head of commodity strategies at TD Securities in Toronto.

“If we were already high and tight when the demand environment didn’t look all that promising, we are certainly going to get tighter when demand improves,” he said.

A new round of trade talks between Washington and Beijing was scheduled for Tuesday.

While both platinum and palladium are primarily used by automakers in catalytic converters, platinum is more heavily used in diesel vehicles, which have fallen out of favour since Volkswagen’s emissions-rigging scandal broke in 2015.

Unlike platinum, palladium has benefited from the switch away from diesel engines and expectations for growth in hybrid electric vehicles, which tend to be partly gasoline-powered.

This has helped cushion the metal from falling car sales globally.

However, analysts said palladium has risen too fast too soon and was bound for a correction.

“Palladium is a bubble and is moving much above what fundamentals suggest,” said Gianclaudio Torlizzi, managing director at consultancy T-Commodity in Milan.

Meanwhile, the dollar backed away from a two-month high hit last week on increasing optimism for a breakthrough in the trade talks, bolstering appeal for gold.

Spot gold gained 0.86 percent to $1,337.51 per ounce, having earlier touched its highest since April 20 at $1,341.18. U.S. gold futures settled $22.70 higher at $1,344.80.

“We are getting more evidence of slowing (global) growth,” said SP Angel analyst Sergey Raevskiy.

“There were some dovish comments from Bank of Japan and the European Central Bank.”

Dovish signals from Japan’s central bank and the ECB compounded worries over a global slowdown, and followed weak data from the United States and China.

Also, investors will scan the minutes of the U.S. Federal Reserve’s last policy meeting on Wednesday for more guidance on interest rate increases this year. Higher rates tend to weigh on non-yielding gold.

Among other precious metals, platinum gained 1.9 percent at $817.23 per ounce, while silver rose 0.92 percent to $15.94.

Source: https://www.cnbc.com/2019/02/19/gold-markets-dollar-us-china-trade-in-focus.html

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New Age Metals Inc. $NAM.ca – The diesel emissions scandal helped make #palladium more valuable than #gold

Posted by AGORACOM-JC at 3:52 PM on Thursday, January 24th, 2019

SPONSOR: New Age Metals Inc. (TSX-V: NAM) The company’s new 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. Learn More.

NAM: TSX-V

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The diesel emissions scandal helped make palladium more valuable than gold

  • Palladium prices have never known such glittering heights. The silvery-white precious metal is now $1,351.40 an ounce: more expensive than gold ($1,283.75 an ounce) or platinum ($792.30 an ounce), and just a little cheaper than iridium ($1,460 an ounce) and rhodium ($2,460).
  • As Bloomberg reports, palladium has surged around 50% in the past four months. A decade ago, it cost less than $200 an ounce.

By Natasha Frost

Palladium prices have never known such glittering heights. The silvery-white precious metal is now $1,351.40 an ounce: more expensive than gold ($1,283.75 an ounce) or platinum ($792.30 an ounce), and just a little cheaper than iridium ($1,460 an ounce) and rhodium ($2,460). As Bloomberg reports, palladium has surged around 50% in the past four months. A decade ago, it cost less than $200 an ounce.

About 80% of all palladium winds up in the exhaust systems of cars—it helps turn nasty pollutants into more benign water vapor and carbon dioxide. (The metal has also occasionally been used for jewelry, particularly during World War II, where a scarcity of platinum led it to be used in wedding bands.)

Two years ago, market researchers predicted that palladium had already hit its peak. Instead, it’s only continued to become more valuable—bolstered by the Volkswagen emission scandal, and China’s new emissions regulations, which have affected how the country’s cars are made.

In the past, palladium prices were held in a kind of dynamic equilibrium with platinum. While palladium is used in cars fueled by gasoline, platinum is the metal of choice for catalytic converters in diesel cars. This long looked unlikely to change: For European customers, and especially Germans, owning a diesel car meant saving money at almost every turn. The fuel was government subsidized; the mileage was second to none; even diesel car registration taxes were cheaper than their gas counterparts. In 1990, diesel cars had a 13% market share in western Europe; within 15 years, it was more than 50%.

But ever since the Volkswagen emissions scandal, when the company falsified US vehicle emission tests, the image of clean diesel has gone up in smoke. Increasingly, European consumers are leaving diesel cars by the wayside, and opting for gasoline instead. In 2017, British diesel sales plunged by 17% and last year sales of gas-powered cars in Germany outstripped diesel for the first time since 1999.

Demand for already scarce palladium has risen with these sales of gas-powered cars. For eight years, supply has outstripped demand and this recent boost has only exacerbated already high prices. Add to that China’s new emissions regulations, which have forced car manufacturers to invest more heavily in effective catalytic converters, and a sellers’ market is no surprise. Mining companies won’t be able to fulfill the rise in demand either: As the Financial Times reports (paywall), world leader Norilsk Nickel anticipates flat supply until 2020, with no new projects until after 2025.

But the tremendous upswing in demand may not last long. China’s automobile sales are no longer rocketing up as they once were, with the nation’s car market contracting this year for the first time since the 1990s. There’s a technical solution, too: Gasoline cars could also use platinum instead of palladium, though doing so would require a significant, and expensive, change in how the vehicles are manufactured.

On the horizon, there’s a much more distant resolution—the mass adoption of electric cars, which don’t use either metal. At current estimates, however, this is at least a decade or two away. Either way, high palladium prices are here for the foreseeable future, leaving speculators laughing all the way to the bank.

Source: https://qz.com/1530156/the-diesel-emissions-scandal-helped-make-palladium-more-valuable-than-gold/

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New Age Metals Inc. $NAM.ca – Gold Slips While Palladium Maintains High Levels $WG.ca $XTM.ca $WM.ca $PDL.ca

Posted by AGORACOM-JC at 10:49 AM on Friday, January 18th, 2019

SPONSOR: New Age Metals Inc. (TSX-V: NAM) The company’s new 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. Learn More.

NAM: TSX-V
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  • Palladium held above $1,400 U.S. an ounce on Friday after surging to record levels in the previous session, amid tight supplies and robust demand, while gold slipped as risk sentiment got a boost from hopes of progress in U.S.-China trade talks.

Glenn Wilkins – Friday, January 18, 2019

Palladium held above $1,400 U.S. an ounce on Friday after surging to record levels in the previous session, amid tight supplies and robust demand, while gold slipped as risk sentiment got a boost from hopes of progress in U.S.-China trade talks.

Spot gold was down 0.1% at $1,290.51 U.S. per ounce, while U.S. gold futures were down 0.2% at $1,290 per ounce. One official said the market is currently unable to gauge the extent of economic slowdown, and that uncertainty is supporting gold.

Meanwhile, spot palladium climbed 1.1% to $1,411 U.S. per ounce Friday, having hit an all-time high of $1,434.50 U.S. on Thursday. The metal is on track to rise for a fourth week in its strongest weekly gain since the week ended Sept. 21. It has risen around 12% so far this month.

The price of palladium, used mainly in emissions-reducing catalysts for vehicles, is up nearly 70% since a low marked in mid-August. Prices for the metal overtook gold for the first time in 16 years early in December.

However, spot gold was set for its fifth straight weekly gain, supported by expectations that the U.S. Federal Reserve may not raise interest rates this year on worries about economy and uncertainties around Brexit.

Gold watchers say spot gold is due for a sharp move, as its consolidation within a neutral range of $1,285-$1,299 U.S. per ounce is ending.

In other metals, platinum rose 0.5% to $809 U.S. an ounce, while silver gained 0.1% to $15.53 U.S.

Source: https://www.baystreet.ca/commodities/2803/Gold-Slips-While-Palladium-Maintains-High-Levels

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