Tag: platinum

Forget Gold and Silver: The Growth Potential of Platinum and Palladium

by Fred Fuld III

Platinum and palladium, members of the platinum group metals (PGMs), are renowned for their unique properties, including resistance to corrosion, high melting points, and exceptional catalytic capabilities. These characteristics make them indispensable across various industries:

  • Automotive Industry: Both metals are crucial components in catalytic converters, which reduce harmful emissions from vehicles.
  • Jewelry: Their lustrous appearance and durability make them popular choices for high-end jewelry.
  • Electronics: Utilized in the manufacturing of hard drives, fuel cells, and other advanced electronic devices.
  • Medical Devices: Employed in pacemakers and dental instruments due to their biocompatibility.
  • Green Energy: Essential in hydrogen fuel cells, supporting the transition to cleaner energy sources.

As global industries strive for sustainability and stricter emission standards, the demand for PGMs is poised to grow, presenting potential opportunities for investors.

Top Platinum and Palladium Stocks to Consider

1. Anglo American Platinum (ANGPY)

Anglo American Platinum stands as the world’s leading primary producer of platinum, operating extensively in South Africa. The company supplies PGMs to various sectors, including automotive and industrial markets.

  • Market Capitalization: Approximately $8.36 billion.
  • Price-to-Earnings (P/E) Ratio: 13.38.
  • Dividend Yield: Forward dividend yield stands at 20.73%, with a total yield of 3.43%. Morningstar

Anglo American Platinum’s robust financial metrics and commitment to sustainable practices make it a compelling option for investors seeking exposure to the PGM sector.

2. Impala Platinum Holdings (IMPUY)

Impala Platinum Holdings, commonly known as Implats, is a significant player in the PGM mining industry, with operations spanning South Africa, Zimbabwe, and Canada.

  • Market Capitalization: Approximately $4.63 billion.
  • Price-to-Earnings (P/E) Ratio: -0.26, indicating a net loss over the trailing twelve months.
  • Dividend Yield: 5.96%. Investing

Despite recent financial challenges, as reflected in its negative P/E ratio, Implats continues to be a major producer in the PGM market, offering a substantial dividend yield to its shareholders.

3. Sibanye Stillwater Limited (SBSW)

Sibanye Stillwater is a diversified mining company with a strong presence in both South Africa and the United States, particularly noted for its operations in Montana.

  • Market Capitalization: Approximately $2.29 billion.
  • Price-to-Earnings (P/E) Ratio: -0.78, indicating a net loss over the trailing twelve months.

The company’s diversification into battery metals aligns with the growing demand for green energy solutions, positioning it well for future growth.

4. Platinum Group Metals Ltd. (PLG)

Platinum Group Metals Ltd. focuses on the exploration and development of platinum and palladium resources, primarily in South Africa.

  • Market Capitalization: Specific market capitalization details are not available from the provided sources.
  • Price-to-Earnings (P/E) Ratio: Specific P/E ratio details are not available from the provided sources.
  • Dividend Information: The company does not currently pay a dividend.

As a development-stage company, Platinum Group Metals Ltd. presents a higher risk but also offers potential for significant returns, especially with its flagship Waterberg Project, which could become one of the largest undeveloped PGM deposits globally. This is an extremely low cap company and should be considered very speculative.

Conclusion

The unique properties and diverse applications of platinum and palladium position them as critical materials in various industries, from automotive to green energy. Companies like Anglo American Platinum, Impala Platinum Holdings, Sibanye Stillwater, and Platinum Group Metals Ltd. offer distinct opportunities for investors looking to capitalize on the potential growth in the PGM sector. As always, potential investors should conduct thorough research and consider their risk tolerance before making investment decisions.

Disclosure: Author didn’t own any of the above at the time the article was written.

Forget Gold & Silver: Check Out Rhodium

by Fred Fuld III

You have probably noticed that the price of gold has languished, and silver, even though it has had a few recent up moves, it is still struggling. But have you checked out the price of rhodium recently? In 2017, you could have bought an ounce of rhodium for just $800 an ounce. Last week, it traded for $29,200 per ounce, an increase of 3,500% in five years.

Even if you had bought an ounce two years ago, you would only have paid about $2500, still generating a return of 1068%.

Rhodium Chart
Source: Money Metals Exchange

So What the Heck is Rhodium?

You may have heard of the precious metals platinum and palladium, which are part of the platinum group metals. These metals include are ruthenium, rhodium, palladium, osmium, iridium, and platinum. Rhodium is considered to be one of the rarest of the precious metals.

It is one of the significant metals in catalytic converters, which is why you may have seen a dramatic increase in the news of the stealing of these emissions control devices. It is used in jewelry, as coatings for sterling silver, in nuclear reactors, aircraft spark plugs, automobile headlights, and many other uses.

Rhodium Mining Stocks

It is interesting to note that the rhodium mining stocks have not increased as much as the metal itself, but that could be partly due to the fact that all of these companies mine for other metals.

There are actually over a dozen stocks of companies that mine for rhodium. Once example is Anglo American Platinum Limited (ANGPY), a $35 billion market cap company that mines for platinum, palladium, rhodium, ruthenium, iridium, and osmium, as well as nickel, copper, cobalt sulphate, sodium sulphate, and gold. It has a sky high price to earnings ratio of 90, but it does pay a yield of 2.1%. The dividend is paid semi-annually. Over the last five years, the stock has moved up by 543%, not as much as the price of rhodium, but still not too shabby.

Another rhodium miner is Impala Platinum Holdings Ltd (IMPUY), which has a market cap of $14 billion.  The yield is 4.61%. This  South African companies mines for  platinum, palladium,  rhodium, chrome and nickel ores in Canada, South Africa and Zimbabwe.

Ivanhoe Mines Ltd. (IVPAF) is a $6 billion market cap Canada-based company that mines for platinum, palladium, nickel, copper, gold, rhodium, zinc, germanium, and lead in South Africa the Congo.

For a free list of over a dozen rhodium mining companies, click here. Maybe you can make money in your precious portfolio with rhodium.

Disclosure: Author didn’t own any of the above at the time the article was written.