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AIM Listing, Director & Broker Appointment and Drilling Update
October 17, 2021
Future Metals NL ("Future Metals" or the "Company", ASX | FME) is pleased to provide an update on its admission to trading on the AIM market of the London Stock Exchange ("AIM") and its operational progress.
Highlights
- Admission to AIM
- Admission to trading on the AIM market of the London Stock Exchange expected to take place at 8:00a.m. (London time) on 21 October 2021 under trading code 'FME' ("Admission")
- Highly respected UK-based company director, Elizabeth Henson, to be appointed to the Board as an Independent Non-Executive Director on Admission
- Appointment of W H Ireland Limited ("WH Ireland") as UK Broker with effect from Admission
- Operational update
- Drilling progressing as planned at Panton, with approximately 3,000m completed to date across thirteen holes
- Samples submitted for assaying for initial ten holes drilled with results pending
- Drilling is continuing and currently targeting shallow mineralisation across the B Zone and C Zone where the Company sees potential for broad mineralisation outside of the current Panton 2.4Moz JORC Mineral Resource Estimate ("MRE") (refer Appendix One)
Admission to AIM
It is expected that the Company's ordinary shares will be admitted to trading on AIM at 8:00a.m. (London time) on 21 October 2021. On Friday, 15 October 2021 the Company published an AIM Admission Document, which will be made available on the Company's website at www.future-metals.com.au from Admission.
In conjunction with Admission, the Company has secured the appointment of a highly credentialed UK-based director to augment the Company's existing board of directors. It is proposed that Elizabeth Henson will be appointed to the Board of Future Metals with effect from Admission.
Ms Henson was formerly a senior international private tax partner of PricewaterhouseCoopers (PwC) in London, having founded and led PwC's International Wealth business. She is an experienced company director and holds a Master of Laws and Tax from Queen Mary, University of London, along with a Bachelor of Laws (LLB) and Bachelor of Art from Rhodes University, South Africa.
FME:AU
04 December
How to Invest in Platinum Stocks (Updated 2024)
Platinum is the third most traded precious metal in the world after gold and silver, and investment demand is growing.
It is also an industrial metal that is widely used in a variety of sectors. The four main uses of platinum are in catalytic converters for the automotive industry; as a material in jewelry; in industrial applications in various sectors including fertilizers, hard drives, electronics, and glass manufacturing; and in medical devices and pharmaceuticals.
The long-term outlook for platinum is strong, making the sector potentially compelling for investors. Here’s a brief overview of platinum supply and demand dynamics, as well as a look at a few different ways to start investing in platinum.
In this article
What is platinum?
Platinum is a silvery-white precious metal that is soft and ductile. It is highly prized for its durability and excellent catalytic properties, such as a high melting point, resistance to corrosion and simple acids, and ability to serve as a carbon monoxide oxidation catalyst. Platinum's symbol on the periodic table of elements is Pt.
Platinum is the most abundant and widely used of the platinum-group metals (PGMs), which also includes palladium, rhodium, iridium and other metals.
Platinum is not typically mined on its own, but rather alongside palladium and other PGMs within nickel and copper ores or chromitite.
Platinum demand trends
Platinum’s diversity of applications has helped to create a resilient market for this metal even in an economic downturn. Total platinum demand for 2024 is expected to come in at 7.95 million ounces, mostly on par with the previous year’s figure, according to the World Platinum Investment Council (WPIC), which provides quarterly market overviews. The WPIC is projecting a mere 1 percent decline in platinum demand for 2025 to 7.86 million ounces.
The four biggest demand sectors for platinum are automotive (40 percent), industrial (31 percent), jewelry (25 percent) and investment (5 percent).
For 2025, WPIC expects to see a slowdown in demand from the industrial sector to be mostly offset by increased demand for platinum coming from the automotive, jewelry and investment sectors.
Automotive
In the automotive industry, both platinum and palladium are used in catalytic converters for vehicle exhaust systems. Due to their differing properties, platinum is preferred for diesel engines and palladium is the metal of choice for gasoline engines.
In recent years, platinum has been increasingly substituted for palladium in gas-powered vehicles due to high prices for palladium. And although the price disparity has decreased, analysts expect that the substitution trend will continue for some time.
Another important factor impacting this segment of the market is the emerging market for electric vehicle (EVs), which do not require catalytic converters to control emissions. The global slowdown in EV sales and production has proven positive for platinum.
Demand from this sector is expected to decline by 2 percent year-on-year in 2024 to 3.17 million ounces as global auto sales and production are in decline, especially in Europe. For 2025, the WPIC is forecasting 2 percent growth to 3.25 million ounces, an eight-year high in platinum demand from the automotive sector.
Industrial
Demand from the industrial sector is forecast to have dropped 1 percent in 2024 to 2.43 million ounces due to a slowdown in chemical plant start-ups after “five years of aggressive capacity expansions in China.” Looking into 2025, the council sees “cyclically weak” platinum demand coming from the industrial sector, resulting in a forecasted 9 percent year-on-year decline largely caused by "negligible new glass capacity additions."
Jewelry
Global jewelry consumption is projected to grow by 5 percent in 2024 to reach 1.95 million ounces, followed by a 2 percent gain in 2025. Regionally, demand growth is centered in India and the United States as platinum becomes a much more affordable option compared to gold.
Investment
Looking over to investment demand for platinum, in 2024 WPIC expects a 1 percent drop in over the previous year to 393,000 ounces of the metal. However, that trend is set to reverse in 2025 for a growth rate of 7 percent on strong platinum ETF inflows and the launch of new products including platinum bars at Costco in the US and platinum coins by China Gold Coin Group in China.
Hydrogen
In recent years, the transition to a green economy and the growth of hydrogen technologies has created another growing market for platinum. The WPIC has noted that the hydrogen market, specifically proton exchange membrane electrolyzers and hydrogen fuel-cell electric vehicles, is expected to become "a meaningful component of global demand by 2030 and potentially the largest segment by 2040."
For now, the hydrogen sector represents 1 percent of total platinum demand in 2024, up from 0.4 percent in the previous year.
Platinum supply trends
The platinum market is destined to remain in a supply deficit for a third-straight year in 2025, according to WPIC estimates, with a shortfall of 539,000 ounces of the metal. However, the demand-supply imbalance in the platinum market is narrowing from a deficit of 759,000 ounces in 2023 as increased recycling production — up 14 percent — offsets 2 percent declines in mine output. Analysts are forecasting a net increase of 1 percent in total platinum supply for 2025 to 7.324 million ounces.
The projected 2 percent decrease in mined platinum supply is attributed to expected lower production out of South Africa and North America.
South Africa is by far the leader in terms of mined platinum production and reserves, according to US Geological Survey data, accounting for about 67 percent of global output. The country's Bushveld Complex is the largest PGM resource in the world. However, ongoing electricity shortages and transport line disruptions have restrained platinum mine output from the country in recent years.
Russia, Zimbabwe, Canada and the United States round out the top five platinum-producing countries. Check out INN’s list of the top palladium and platinum countries by production to learn more about the platinum-mining activities in these nations.
How to invest in platinum
Investors who believe the above market dynamics will eventually result in a higher platinum price may be interested in investing in the metal. There are several ways to invest in platinum, from platinum mining stocks and platinum ETFs to physical bars and coins and platinum futures.
Platinum stocks
One way to invest in platinum is to own shares of a platinum-mining company. Depending on your risk tolerance, both major platinum miners, junior exploration companies offer an easy entry point.
Major platinum mining stocks
Anglo American Platinum (OTC Pink:AGPPF,JSE:AMS)
Anglo American Platinum, or Amplats, is a leading primary producer of PGMs, supplying mined and recycled platinum products. The company operates the Mogalakwena mine, Amandelbult complex and Mototolo mine in South Africa’s Bushveld Complex. Its parent company, Anglo American (LSE:AAL,OTCQX:AAUKF), is planning to demerge Amplats in mid-2025 as part of its ongoing restructuring efforts, after which Amplats will list on the LSE.
Eastern Platinum (TSX:ELR,JSE:EPS)
Eastern Platinum, or Eastplats, has a number of directly and indirectly owned PGM assets in the Bushveld Complex of South Africa. In addition to its ongoing work recovering chrome from historical tailings, Eastplats is now ramping up production of PGM and chrome concentrates at Crocodile River's new Zandfontein underground mine. The company expects PGM revenue to make up at least 65 percent of its revenue in 2026.
Impala Platinum Holdings (OTC Pink:IMPUF,JSE:IMP)
Impala Platinum Holdings, or Implats, is one of the most prominent platinum producers in the world. The company has majority ownership or joint ventures in four PGM mining operations in South Africa along with a refining facility, two PGM mining operations in Zimbabwe along with a concentrator, and one PGM mine in Ontario, Canada.
Tharisa (OTC Pink:TIHRF,LSE:THS,JSE:THA)
Tharisa is a vertically integrated PGM company, and through its subsidiaries its operations span from exploration through to production, beneficiation and distribution. Tharisa's PGM assets include the Tharisa platinum-chrome mine in South Africa's Bushveld Complex and the Karo platinum mine, which is now under construction in Zimbabwe.
Sibanye Stillwater (NYSE:SBSW)
Sibanye Stillwater has a diverse metals mining portfolio and is one of the world's largest primary platinum and palladium producers. It recently adopted a circular economy business model that includes platinum recycling. The company has numerous PGM operations in South Africa and the United States. Its US Stillwater and East Boulder operations are in Montana's Stillwater Complex, the country's largest source of PGMs.
Junior mining stocks
Bravo Mining (TSXV:BRVO,OTCQX:BRVMF)
Bravo Mining is advancing its wholly owned Luanga PGM-gold-nickel exploration project in the Carajás Mineral Province of Brazil. The project has a maiden mineral resource estimate showing indicated resources of 4.1 million ounces of palladium equivalent at 1.75 grams per metric ton (g/t) and inferred resources of 5.7 million ounces at 1.5 g/t.
Canada Nickel (TSXV:CNC,OTCQX:CNIKF)
Canada Nickel Company is advancing its wholly owned flagship Crawford nickel-cobalt sulfide project located in the Timmins-Cochrane mining camp of Ontario, Canada. The project also hosts significant platinum and palladium mineralized zones.
Canada North Resources (TSXV:CNRI,OTCQX:CNRSF)
Canada North Resources wholly owns the late-stage Ferguson Lake exploration project in the Kivalliq Region of Nunavut, Canada. The polymetallic project hosts base metals nickel, copper and cobalt as well as PGMs.
Chalice Mining (ASX:CHN,OTC Pink:CGMLF)
Chalice Mining owns the Gonneville development project in Western Australia. The project hosts a mix of metals, including platinum, palladium, nickel, cobalt and copper. The Western Australia government has designated Gonneville a Strategic Project in recognition of the project’s importance for the country’s critical metals industry.
Clean Air Metals (TSXV:AIR)
Clean Air Metals is focused on its wholly owned exploration-stage Thunder Bay North critical minerals project in the Thunder Bay region of Ontario, Canada. The project hosts platinum, palladium, copper and niobium mineralization.
Lifezone Metals (NYSE:LZM)
Lifezone Metals has developed a hydrometallurgical processing technology, which it calls Hydromet Technology, as a cleaner alternative to smelting for base and precious metals refining. The company has a joint venture partnership agreement with Glencore (LSE:GLEN,OTC Pink:GLCNF); Lifezone will use its Hydromet Technology to recycle platinum, palladium and rhodium in the United States, and Glencore will act as the offtaker and marketer. Lifezone also owns the Kabanga nickel-copper-cobalt project in Tanzania.
Platinum Group Metals (TSX:PTM,NYSE:PLG)
Platinum Group Metals is working to bring into production its advanced-stage Waterberg palladium and platinum deposit in South Africa. First discovered by Platinum Group Metals, the project is now a joint venture with key partners that include Implats at 14.86 percent. Platinum Group retains a 50.16 percent position in Waterberg and will be the majority operator.
Ramp Metals (TSXV:RAMP)
Ramp Metals’ flagship project is the early-stage exploration Rottenstone SW property in Saskatchewan, Canada. It is situated adjacent to a northeast-southwest geological formation connected to the historic Rottenstone mine, which produced nickel, PGMs and gold.
Platinum bars and coins
Another investment option is the direct purchase of physical platinum bars or platinum coins through a bullion dealer.
One example is BullionVault’s online physical platinum market, which is supported by the WPIC, and gives private individuals access to vaulted platinum for the same prices currently paid by institutional investors. The market is open 24 hours a day, seven days a week.
Investors in the United States can also now buy 1 ounce platinum bars and coins at Costco, an option you can learn more about here.
Platinum ETFs
Those interested in platinum can also gain exposure via platinum exchange-traded funds (ETFs) and exchange-traded notes (ETNs). Here are a few to get you started.
iShares MSCI Global Metals & Mining Producers ETF (NYSE:PICK)
The iShares MSCI Global Metals & Mining Producers ETF provides investors with access to the global mining industry through an international basket of companies engaged in the extraction and production of metals, including platinum. Its holdings include Implats, Anglo American and Sibanye Stillwater. It has the lowest expense ratio on this list at 0.39 percent.
Aberdeen Physical Platinum Shares ETF Trust (ARCA:PPLT)
The Aberdeen Physical Platinum Shares ETF is designed to reflect the performance of the price of physical platinum less the trust’s expenses and holds platinum bars in a secure vault. It has an expense ratio of 0.6 percent.
Sprott Physical Platinum and Palladium Trust (ARCA:SPPP)
The Sprott Physical Platinum and Palladium Trust is another option that provides access to the physical platinum bullion market while allowing the flexibility of an exchange-traded security. It has the highest expense ratio on this list at 1.12 percent.
GraniteShares Platinum Trust (ARCA:PLTM)
The GraniteShares Platinum Trust tracks the spot price of platinum less trust expenses, and holds a physical portfolio of platinum ingots kept in a vault in London, UK. It has an expense ratio of 0.5 percent.
Global X Physical Platinum (ASX:ETPMPT)
Global X Physical Platinum provides Australian investors access to platinum held in JP Morgan storage facilities. It has a management fee of 0.49 percent.
Platinum futures
Another option for those looking to invest in platinum is platinum futures, a derivative instrument tied directly to the price of the actual metal. Futures are a financial contract between an investor and a seller. The investor agrees to purchase an asset from the seller at an agreed-upon price based on a date set in the future.
Rather than intending to take possession of the material asset, investors speculating in the futures market are instead making bets on whether the price of a particular commodity will rise or fall in the near future.
For example, if you buy a platinum futures contract believing the price of metal is set to rise, and your prediction proves correct, you could gain a return on your investment by selling the now more valuable futures contract before it expires. However, be advised that trading futures contracts is not for the novice investor.
Platinum futures are available for trade on the New York Mercantile Exchange (NYMEX), which is part of the CME Group.
This is an updated version of an article first published by the Investing News Network in 2017.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
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27 November
WPIC: Platinum Market Facing Third Consecutive Deficit in 2025 as Supply Constraints Persist
The global platinum market is projected to face its third consecutive deficit in 2025 with a shortfall of 539,000 ounces, according to the latest quarterly report from the World Platinum Investment Council (WPIC).
Demand across key sectors remains robust, outpacing mine production and recycling efforts.
The projected 2025 deficit will come after an expected shortfall of 682,000 ounces in 2024, driven by steady demand of 7,951,000 ounces against constrained supply of 7,269,000 ounces.
For 2025, the WPIC forecasts only slight changes, with demand set to come in at 7,863,000 ounces — representing a marginal 1 percent year-on-year decline — and supply increasing by 1 percent to 7,324,000 ounces.
Platinum supply still facing challenges
Platinum supply rose by 7 percent year-on-year in Q3, but still remains constrained.
Overall, mine supply is projected to grow by just 1 percent in 2024 to 5,683,000 ounces, a level reflective of ongoing industry challenges, such platinum's rangebound price level and restructuring activities.
Looking ahead to 2025, mine output is forecast to contract by 2 percent to 5,550,000 ounces.
Watch Edward Sterck, director of research at the WPIC, discuss the organization's latest report.
Meanwhile, platinum recycling — a key component of supply — is showing signs of recovery.
A 3 percent year-on-year improvement is expected in 2024, bringing recycled volumes to 1,587,000 ounces. In 2025, recycling is projected to increase by 12 percent to 1,774,000 ounces, 8 percent below pre-pandemic averages.
Total aboveground stocks of platinum are forecast to decline significantly, falling by 16 percent in 2024 and 15 percent in 2025, which the WPIC said highlights the ongoing supply/demand imbalance.
Auto sector demand to hit eight year high
The automotive industry is set to be a key driver of platinum demand in 2025, with consumption from the sector projected to hit 3,245,000 ounces, marking an eight year high.
This growth contrasts with a 2 percent decline in 2024 to 3,173,000 ounces. According to the WPIC, this decrease was largely due to revised vehicle production forecasts in Europe amid economic challenges.
The anticipated rebound in 2025 reflects increased use of platinum in hybrid vehicles, as well as substitution of platinum for palladium in catalytic converters. These trends are supported by stricter emissions regulations and the sustained production of internal combustion engine vehicles as electric vehicle adoption lags.
Meanwhile, the WPIC anticipates that global jewelry demand for platinum will rise steadily both this year and next, driven by strong fabrication growth in key markets like India, Japan and North America.
In 2024, jewelry demand is forecast to increase by 5 percent year-on-year to 1,951,000 ounces. This upward trajectory is set to continue into 2025, with a further 2 percent increase to 1,983,000 ounces.
Indian demand remains a key growth driver, supported by innovative designs and cultural trends, while the North American and Chinese markets are expected to show modest gains.
Industrial demand to decline, investment demand to grow
Industrial demand for platinum is projected to decline by 9 percent in 2025 to 2,216,000 ounces.
This follows a period of strong growth fueled by expansions in sectors like glass and hydrogen production. The slowdown in 2025 is largely attributed to reduced demand in the glass sector as capacity expansions taper.
However, other industrial applications, including chemical and hydrogen sectors, are expected to show growth, as platinum's applications in emerging technologies continue to diversify.
In contrast, investment demand for platinum is projected to remain a key component of the market in 2025, marking the third consecutive year of net positive growth, as per the WPIC.
Total investment demand is forecast to rise by 7 percent in 2025 to reach 420,000 ounces, supported by increased interest in platinum bars and coins, particularly in China.
Exchange-traded funds are also expected to see growth, with US investors turning to platinum as part of broader investment strategies tied to industrial metals.
Platinum price showing resilience
With a variety of factors driving the platinum outlook, WPIC CEO Trevor Raymond expressed optimism that the metal’s growing industrial and investment uses will soon translate to a more stable market.
“At a time when the global economy is uncertain, one might expect an industrial metal like platinum to perform poorly. However, as we see in today’s findings, platinum demonstrates its resilience due to its diverse end-uses even in the current environment,” he explained in the WPIC's report.
One such area is platinum's growing role in green hydrogen and emissions-reduction technologies. The metal’s strategic importance is expected to rise, offering opportunities for long-term investors and industry stakeholders.
Furthermore, the increased availability of physical platinum — including retail giant Costco’s (NASDAQ:COST) initiative to sell platinum bars and coins — is set to serve as a tailwind for the sector's future outlook.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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29 October
Top 5 Palladium and Platinum Countries by Production
Platinum-group metals (PGMs) include platinum, palladium, rhodium and other metals, all of which are prized for their durability, resistance to corrosion and excellent catalytic properties.
The automotive industry is the world’s largest consumer of these metals, which among other things are used in catalytic converters for vehicle exhaust systems. A rebound and continued growth in auto production is projected in the coming years, particularly in developing markets, and this should increase demand for PGMs, especially when it comes to platinum and palladium. On the supply side, the platinum market is expected to slide into a significant deficit in 2024 and beyond.
But where do platinum and palladium come from? The list of the world’s top palladium- and platinum-mining countries is a short one, and most PGMs come from South Africa and Russia.
Russia's ongoing war in Ukraine and electricity shortages in South Africa are expected to seriously hamper the ability of these nations to bring PGMs to market. So what other countries are platinum and palladium producers, and which countries hold the most platinum and palladium reserves? Below is a list of the five top producers in 2023, as per the latest data from the US Geological Survey.
1. South Africa
Platinum production: 120,000 kilograms
Palladium production: 71,000 kilograms
PGM reserves: 63 million kilograms
South Africa is top of the list of the world’s top platinum producers, with production of 120,000 kilograms in 2023. The country is also a major producer of palladium, taking second place globally with 71,000 kilograms last year. South Africa also holds the largest-known reserves of PGMs globally at 63 million kilograms.
According to the US Geological Survey, 2023 production of PGMs in South Africa "decreased compared with that in 2022 owing to disruptions to the supply of electricity and multiple issues related to rail transport. Declining prices also contributed to decreased production."
The Bushveld complex is the largest PGMs resource in the world, and represents a large majority of annual global production of platinum and palladium. Impala Platinum Holdings (OTCQX:IMPUY,JSE:IMP), commonly called Implats, is a significant producer in the complex, which hosts the company's Impala Rustenburg mine, Marula mine, Bafokeng and Two Rivers joint venture.
2. Russia
Platinum production: 23,000 kilograms
Palladium production: 92,000 kilograms
PGM reserves: 5.5 million kilograms
Despite being the world’s second biggest platinum-mining country, Russia’s annual production trails behind South Africa’s by a large margin, coming in at 23,000 kilograms for 2023. That said, Russia was the top palladium producer, putting out 92,000 kilograms last year — 21,000 kilograms higher than South Africa’s output.
Russia-focused Norilsk Nickel (MCX:GMKN) is the world’s largest palladium producer, and it plans to invest US$35 billion in infrastructure upgrades between 2021 and 2030, which will ultimately result in higher metals output.
There have been questions about how Russia's war in Ukraine could impact the Russian mining sector. The USGS reports that for 2023, "Production in Russia, the world’s leading producer of palladium, increased owing to higher metal grades and ore recovery as well as increased processing of inventory." In October 2024, as the war continued, the US suggested that Group of Seven countries sanction Russia's palladium production, leading prices to jump significantly on supply concerns.
3. Zimbabwe
Platinum production: 19,000 kilograms
Palladium production: 15,000 kilograms
PGM reserves: 1.2 million kilograms
Zimbabwe is a major producer of both platinum and palladium, producing 19,000 and 15,000 kilograms of the precious metals respectively in 2023. Zimplats (ASX:ZIM,OTC Pink:ZMPLF) is the biggest platinum miner in the country, and it is 87 percent owned by Implats.
In October 2022, Zimbabwe introduced a policy that allows it to stockpile physical metals, including PGMs. A change to the country's existing cash royalties on miners, the rules require mining companies to pay royalties based on their production in a combination of cash and refined physical metals.
The policy currently applies to PGMs, gold, diamonds and lithium. However, it is dynamic, with the option to add or subtract affected metals and change royalty percentages based on factors such as geological scarcity and demand trends. For example, Zimbabwe doubled its royalties for platinum miners to 5 percent this past January, and intends to up the royalties for lithium as well.
4. Canada
Platinum production: 5,500 kilograms
Palladium production: 16,000 kilograms
PGM reserves: 310,000 kilograms
Canada’s strong palladium production of 16,000 kilograms was the third highest globally in 2023. Canada's platinum production is also significant, with 5,500 kilograms. The North American country's palladium and platinum production were nearly both on par with the previous year.
The country only holds 310,000 kilograms of known PGMs reserves — the lowest total reserves on this list — but companies continue to explore for PGMs in Canada in search of more deposits.
Canadian PGMs production takes place mainly in the province of Ontario, but PGMs output also comes out of Québec and Manitoba. The country has one primary PGMs-producing mine, the Lac des Iles mine in Western Ontario, which is owned by Implats Canada. The remainder of the country's production is as a by-product of Canada’s primary nickel mines.
5. United States
Platinum production: 2,900 kilograms
Palladium production: 9,800 kilograms
PGM reserves: 820,000 kilograms
The United States produced 9,800 kilograms of palladium in 2023 alongside 2,900 kilograms of platinum.
Sibanye Stillwater’s (NYSE:SBGL) Stillwater Complex in Montana is the only primary producer of PGMs in the US. The company also maintains a smelter, refinery and laboratory in Montana and recovers PGMs from spent catalyst material.
Low palladium prices have forced Sibanye Stillwater to curtail production and layoff about 700 employees at the Stillwater Complex in 2024. The company has pointed to Russia flooding the palladium market to depress prices. In response, Montana's two US senators introduced a bill calling for a ban on imports of Russian palladium.
FAQs for investing in palladium and platinum
What is platinum?
Platinum is the namesake of the PGMs category and is also a precious metal. Signified by the symbol Pt and atomic number 78 on the periodic table, platinum has a silverish-white hue.
What is platinum used for?
Platinum plays a large role in the auto industry for its ability to reduce emissions. Additionally, platinum is in high demand for jewelry and as an investment metal.
Platinum is also benefiting from growing demand from the hydrogen fuel cell sector. The metal is a key catalyst in the process that converts hydrogen into electricity.
What is palladium metal?
Palladium fits into the precious metals category and is a PGM. It is represented by the symbol Pd and atomic number 46 on the periodic table of elements. Palladium has a silvery-white color and is prized for its rarity.
What is palladium used for?
The automotive sector is the primary end user of palladium. The metal is a key component in the catalytic convertors of internal combustion engine vehicles, where it is used to reduce emissions.
Like platinum, palladium is used in jewelry and valued as an investment. It has other smaller-scale uses, and is consumed in various ways by the medical and dental fields, among others.
What is the best way to invest in palladium?
While there is no single best way to investing in palladium, those interested in gaining exposure to this market have a variety of options. Investors who prefer more tangible assets can add physical palladium to their portfolios, including palladium bullion and coins. Palladium exchange-traded funds such as the Sprott Physical Platinum and Palladium Trust (ARCA:SPPP) and the Aberdeen Standard Physical Palladium Shares (ARCA:PALL) offer another route. Palladium-focused stocks are yet another option, with pure-play palladium miners including Sibanye-Stillwater and Impala Platinum Holdings.
Why are metals like gold, platinum and palladium so expensive?
Precious metal gold has long been valued as a form of currency and a store of wealth, all of which have built up its high intrinsic value. Platinum and palladium are 30 times rarer than gold, much harder to mine and are in high demand due to their important industrial uses.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
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15 October
Australian Government Grants Chalice Mining’s Gonneville Major Project Status
Commonwealth Minister for Industry and Science Ed Husic has awarded major project status to the Gonneville platinum-group elements discovery, owner Chalice Mining (ASX:CHN,OTC Pink:CGMLF) said.
The designation comes shortly after the project received strategic project status from Western Australian Premier Roger Cook on September 17, highlighting its importance in Australia’s future critical minerals ambition.
“Chalice would like to thank Minister Husic and the Australian Federal Government for recognising the national significance of the Gonneville Project as the first major Platinum Group Element discovery in Australia,” commented Alex Dorsch, CEO and managing director of the company, on Monday (October 14).
Having major project status will pave the way for additional support and coordinated approvals for Gonneville.
The asset is wholly owned by Chalice and is located 70 kilometres northeast of Perth, Western Australia. It sits on Chalice-owned farmland with access to nearby established road, rail, port and high-voltage power infrastructure, along with a significant "drive-in, drive-out" mining workforce, according to the company.
The project is centred on the Gonneville deposit, which was discovered by Chalice geologists in 2020. The resource is a Tier 1 scale greenfield find hosting a mix of critical and strategic minerals: palladium, platinum, nickel, copper and cobalt.
A scoping study was completed for the project in August 2023, outlining “a new long-life, low-cost, low-carbon critical minerals mine in Western Australia with the potential to deliver strong financial returns and regional benefits.”
Chalice has said that a prefeasibility study (PFS) will follow. In July, the company signed a strategic memorandum of understanding (MOU) with Japanese conglomerate Mitsubishi (TSE:8058) to collaborate on the study.
The MOU established a framework for collaboration on technical, financing, marketing and offtake aspects of the project, with the intention of forming a potential binding partnership within 90 days of the PFS' completion.
Chalice added that it recognises the need to develop the project “sustainably and responsibly,” approaching environmental, social and cultural heritage management using a best practice approach.
“We look forward to continuing to work with the Commonwealth and Western Australian Governments, local communities, Traditional Owners, and Mitsubishi Corporation under our strategic MOU as we progress approvals and project studies to advance this important project towards development," the company said.
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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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07 October
Costco Adds Platinum Bars to Precious Metals Investment Offerings
Costco (NASDAQ:COST), the US-based retail giant, has expanded its range of precious metals investments by introducing platinum bullion bars and coins to its product line.
Following the successful launch of its gold bullion investment offerings in 2023, which quickly became a popular option among its members, the company has now made 1 ounce platinum bars and coins available for purchase through its online platform.
The platinum bar joining Costco’s growing rank of investment options is a 999.5 fine Fortuna platinum bar, minted by PAMP Suisse, a well-known precious metals refiner. Each bar is individually registered and comes in sealed protective packaging with an Assay Certificate, ensuring the accuracy of the metal content and weight.
Costco also added to its offerings the 2024 1 ounce platinum Canadian Maple Leaf coin, minted by the Royal Canadian Mint, which is struck in 999.5 fine platinum.
Both products are available in limited quantities, with a maximum purchase limit of one transaction containing no more than five bars or coins per Costco member.
Platinum, though not as widely known as gold, is gaining attention due to its industrial applications, such as in automotive catalytic converters, which are essential in reducing vehicle emissions.
Additionally, platinum is used in the production of jewelry and various industrial processes, making it a versatile metal in terms of both investment and practical uses.
The availability of platinum products at Costco further broadens access to precious metals investments, a market that was once considered niche but is now growing in popularity among retail investors. Investors seeking to diversify their portfolios often look at precious metals as a hedge against inflation and market volatility.
Costco’s expansion into platinum also follows a broader trend of precious metals being viewed as an essential part of retirement portfolios. In the US, platinum bars and coins, like gold bullion, can be included in Individual Retirement Accounts and 401(k) accounts, providing a tax-advantaged way for investors to hold physical assets.
However, despite the growing interest in platinum, the metal has not experienced the same level of price appreciation as gold and silver. Over the last year, platinum's price has increased by just over 10 percent, while gold and silver's prices have climbed 37 percent and 39 percent, respectively.
Nevertheless, platinum is seen by some analysts as an underappreciated asset that could see greater demand as industrial needs grow and supply remains tight.
At 3 p.m. PDT on October 7, the spot price for platinum was about US$975 per ounce. Costco’s price for its one ounce products is set at US$1,089.99.
Gold bullion "flying off" Costco shelves
Costco’s gold bullion sales have also been skyrocketing as the yellow metal's price hits record highs.
The retailer is currently moving over US$100 million worth of gold bars in a single quarter, which is equivalent to about 51,740 ounces.
Shoppers are enticed by Costco’s relatively low premiums — just 1.6 percent above spot prices, compared to higher margins at traditional dealers — and the added rewards from membership perks.
A Bloomberg survey also found that of the stores that responded, 77 percent of Costco outlets that stocked gold bars were sold out in the first week of October, showing the fierce demand.
With gold prices surpassing US$2,650 per ounce this year, customers are flocking to the big-box retailer to capitalize on the metal’s safe-haven appeal amidst economic uncertainty and inflation concerns.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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02 October
Infographic: Growth of Hydrogen Economy Fueling Rising Platinum Demand
As efforts to decarbonize accelerate globally, hydrogen is emerging as a key energy source and is driving new demand for platinum, according to a recent infographic released by the World Platinum Investment Council.
Hydrogen fuel cell technologies, which rely heavily on platinum, are becoming central to energy transition strategies as industries move toward cleaner alternatives to fossil fuels.
Platinum's role in the energy transition.
Infographic via the World Platinum Investment Council.
Platinum’s role is particularly significant in proton exchange membrane (PEM) technologies, which are essential for both hydrogen production and utilization. PEM electrolyzers, which generate hydrogen by splitting water molecules using electricity, depend on the metal serving as a catalyst.
When powered by renewable energy, these systems produce green hydrogen, a zero-emission fuel that can serve as a replacement for carbon-heavy fuels in multiple sectors.
PEM fuel cells, which also rely on platinum catalysts, convert hydrogen into electricity, emitting only water and heat. These fuel cells are used in fuel cell electric vehicles (FCEVs), as well as in stationary power applications.
Hydrogen-powered FCEVs, such as trucks and buses, are leading the push toward hydrogen-based transport as fuel cells offer a longer driving range and faster refueling times compared to battery electric vehicles.
Hydrogen-powered transport is also expanding into the rail and maritime sectors, and even aviation.
Growth in markets for platinum-based PEM technology.
Infographic via the World Platinum Investment Council.
Beyond transportation, platinum is playing a critical role in stationary energy systems, where PEM fuel cells are increasingly being used to provide backup or off-grid power for critical infrastructure.
Data centers, telecommunications towers and industrial facilities are increasingly looking to hydrogen fuel cells as a reliable, low-emission alternative to diesel generators. Analysts expect hydrogen-related demand for platinum to reach nearly 900,000 ounces by 2030, with PEM fuel cells alone accounting for over 600,000 ounces.
Governments around the world are promoting hydrogen as a key component of their long-term decarbonization strategies, with over 60 countries having adopted hydrogen policies or strategies. China is currently forecast to be the largest market for FCEVs, while Europe and North America are also experiencing growth in hydrogen investments.
Platinum benefiting from hydrogen demand.
Infographic via the World Platinum Investment Council.
The WPIC also highlights that this global shift toward hydrogen is due to drive more than US$300 billion in hydrogen-related investments through 2030. Currently, 60 percent of platinum demand comes from fuel cells, while 11 percent of future platinum demand is expected to be driven by hydrogen applications to 2030.
Click here for the full World Platinum Investment Council infographic.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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