Writing for Seeking Alpha, contributor David White suggested that North American palladium producers could stand to do well in light of ongoing strikes in South Africa, specifically taking a look at North American Palladium (TSX:PDL) and Stillwater Mining Co.(NYSE:SWC). As well as taking a comprehensive look at both companies, the author cites the strike by South African PGM mine workers, the possibility of sanctions against Russia, and rising auto demand as factors that could favour North American miners.
As quoted in the publication:
Prices have already gained about 17% since January 2014. They are expected to jump another 16% by year end to $950/oz according to a Bloomberg survey of 15 analysts. If Russian palladium is curtailed to any significant extent, prices could push far higher. All of the above means that North American palladium producers should do well in 2014. The tight supply situation is a substantial tailwind.