Archive for the ‘Industry talk’ Category

Palladium bursts above $1 500 per oz



Bloomberg reports that:

palladium powered above $1 500 to hit a record, extending a powerful rally driven by an acute shortage of supply as car manufacturers scramble to get hold of the material to meet stringent emissions controls.

Spot palladium rose as much as 1.7% to $1 505.46/oz, and was at $1 501.89 at 11:38 a.m. in Singapore, with prices set for a seventh monthly gain. The silvery-white metal has more than tripled since January 2016.  Citigroup said this month that further gains may be in store, warning the market will only balance with a shock to demand and prices may hit $1,600. The global deficit looks set to “widen dramatically” this year, according to Johnson Matthey, a leading maker of autocatalysts, and BlackRock’s Evy Hambro told Bloomberg TV this week that a “massive shortage” has built up as the auto market moves away from diesel-powered vehicles.

Newgenco’s Dablo Project remains the most exciting palladium-dominant exploration project outside of the producing mineral fields in Russia, South Africa and Zimbabwe

Palladium shortfall will worsen this year

Johnson Mathey’s recently published “PGM Market Report”  flags:

  • Strong growth in autocatalyst demand will drive the palladium market further into deficit in 2019.
  • Recycling should rise again, but there is little prospect of growth in primary supplies.
  • With ETF holdings now at 730,000 oz, disinvestment can no longer bridge thesupply gap.
  • In January 2019, the palladium price hit new all-time records and lease rates remainedexceptionally high.

As of 14 February 2019, the palladium price stood at USD1390/oz – a USD84 premium to the gold price.  The palladium price has increased by 40% over the previous year.

Newgenco’s Dablo Project remains the most exciting palladium-dominant exploration project outside of the producing mineral fields in Russia, South Africa and Zimbabwe

Gold now has a challenger for the mantle of most-precious metal

Bloomberg reports that the scramble for palladium supply has taken the precious metal within striking distance to its costliest cousin – gold.  Palladium for immediate delivery climbed as much as 1.8% to a record $1 204.71/oz on Friday, before settling at $1 181.09, according to Bloomberg pricing. Spot gold closed at $1 220.52. An ounce of the yellow metal bought as little as 1.013 oz of palladium, the least since 2002.

Hedge funds and other large speculators boosted their net-bullish position in palladium for a fourth straight week to 13 824 futures and options, according to data from the Commodity Futures Trading Commission published Friday.

Palladium attains greatest premium over platinum since 2001

Reuters reports that palladium has outperformed other precious metals recently, having registered an increase of more than 35 percent over the past seven weeks, compared with single-digit gains in gold, platinum and silver. Palladium also has its biggest premium over platinum, used in autocatalysts for diesel cars, since 2001.

NEWA is operator of the highly prospective palladium-dominant Pd-Pt-Au-Ni-Cu Dablo Project in NE Burkina Faso.

Palladium hits record high, in sight of parity with gold

Reuters has reported that

Palladium soared to a record high on Tuesday, bringing the metal to within striking distance of achieving parity with gold after it outshone other precious metals including its closest rival, platinum, this year.

A combination of factors, from tight supplies and large deficits to resurgent interest from speculative investors, has kept the platinum group metal (PGM) on the boil.

Used mainly in emissions-reducing autocatalysts for vehicles, palladium has gained some 7 percent so far this year to hit a record $1,150.50 an ounce on Tuesday, less than $100 away from the price of gold.

Some analysts attributed the latest jump to concerns that Russia, the main producer of the metal, could restrict supplies in response to the United States’ plans to withdraw from the Intermediate-Range Nuclear Forces Treaty.

The prospect of additional stimulus in China, a major consumer of palladium, is also driving prices higher, according to analysts.”

NEWA is operator of the highly prospective Palladium-dominant Pd-Pt-Au-Ni-Cu Dablo Project in NE Burkina Faso.