Eurasia Mining PLC Bullish on Platinum, Palladium — Commodity
Eurasia Mining PLC issued its interim outlook on rare earth minerals on Thursday.
“The investment case for Platinum Group Minerals (‘PGM’), especially platinum and palladium, continues to be clear and compelling in the immediate and long term, based purely on the fundamentals of demand and supply.”
Outlook for demand:
“Demand is positive from existing markets in PGM, both industrial and precious metal uses, and from new and emerging markets notably fuel cells and the hydrogen economy.”
Outlook for supply:
“This contrasts with limited new supply under development and major challenges for the traditional global regions for PGM Mining. Structural deficits now exist in both the platinum and palladium markets and are predicted to continue, creating an opportunity for emerging global regions for PGM mining such as Kola,(Russia).
Price forecast for platinum, palladium:
“Platinum has traded above US$1,000/ounce for the first half of 2021 (contrasted with US$870/ounce at this point in the mining season last year. However, palladium is expected to continue to outperform platinum being in a deeper structural deficit than its sister metal, and with further ounces removed from predicted annual supply by difficulties at Norilsk, leading to a predicted market deficit of up to 1 million ounces in 2021.”
Demand for rhodium, iridium:
“The contribution of other PGM, namely rhodium and iridium, to (Eurasia Mining’s) global metal revenue streams has risen steadily since 2016, reflecting metal price increases rather than increased production. These metals are set to continue to find niche use cases, eg in the hydrogen economy in Polymer Electrolyte Membrane Fuel Cells and Hydrogen production by PEM electrolysis. Both of these metals are produced at the West Kytlim mine.”
Write to Patrick Chu at patrick.chu@wsj.com
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