Please add Eurasia Mining Plc (LSE:EUA)
Wow we need stocks that cover this commodity
I need to invest in it asap
Up again today Palladium is at $2600 (ish).
Something is happening at Eurasia, they have a permit overdue on the Monchetundra site where the early drills have come back very positive (over 38g/t in some areas - that’s a nuts amount fyi ((Plat & Palladium))), but they’ve gone radio silent at a time when you’d expect them to be singing from the rooftops…
Anglo American (iirc) helped with the site exploration and they’re in acquisition mode at the moment with their buyout of Sirius Minerals. I wonder if they’re in talks over the site.
That or the permit hasn’t been granted, that would be disastrous.
I have shares in Sirus minerals also! I hope I’m allowed a vote on if I’m allowed to sell or not or to transfer shares Of the same value in their company but I don’t think that’s possible
Definitely odd for them to be so quiet in response to something like this?? Investing in Palladium is clearly something worth while getting into, so finding companies that either specialise in it or will be, are ones to look out for.
Interesting insight codf
Eurasia is one of my holdings too. Hopefully we get some clarity.
What’s your Russian like?
Eurasia’s Monchetundra Palladium asset valued at…
2 billion dollars!
10-15 years of production.
I can speak broken russian to a very small point, I will try and use google translate.
Thanks for the article
Russian palladium producers, primarily Norilsk Nickel, may be the main beneficiaries of the continued rise in metal prices. The cost of palladium on January 16 broke another historical record, rising to $ 2.3 thousand per troy ounce. According to analysts, Nornickel may receive a record annual EBITDA of $ 9.5 billion at current prices.
During Thursday’s trading on the LSE, palladium broke a new historical record, breaking the price of $ 2.3 thousand per troy ounce. At the end of last year, the price of this metal already set records , rising above $ 2 thousand on December 17. In 2019, palladium almost doubled in price, and the price increase for four years amounted to 300%. For comparison, gold costs $ 1.5 thousand per ounce, platinum - $ 1 thousand.
The reasons for the increase in the cost of palladium are known - almost 85% of the demand for palladium falls on the production of catalysts for cars with gasoline engines. One of the consequences of the scandal with the Volkswagen concern (the so-called Dieselgate, more than 11 million diesel cars were equipped with software that underestimated the amount of harmful gases during the tests) was a reduction in government subsidies for diesel cars and an increase in demand for gasoline cars. In the automotive industry, palladium consumption is 245 tons per year. Also, metal is used in electrical engineering, chemical industry, medicine. Palladium is a by-product of nickel or platinum production.
Vladimir Potanin, President of Norilsk Nickel, on the issue of palladium tokens, March 20, 2019
We hope that such projects will help consumers understand what palladium will be, and, accordingly, we would not like to stimulate either price volatility or additional development of some new metals
The main beneficiary of price increases is Norilsk Nickel, which accounts for up to 40% of global metal production. According to the results of nine months of 2019, the company increased production by 7%, to 2.253 million ounces. According to the company’s forecast, the deficit in the palladium market will continue until 2025. According to Boris Krasnozhenov of Alfa Bank, at current prices for palladium and other metals in the company’s portfolio and the dollar exchange rate of 61–62 rubles. The company’s EBITDA could reach $ 9.5 billion. For comparison, by the end of 2018, Norilsk Nickel’s EBITDA was $ 6.2 billion, which was a record for seven years. Shares of Norilsk Nickel on the Moscow Exchange on Thursday rose by 2.47%, to 20.9 thousand rubles.
Another platinum group metal producer, Eurasia Mining, operates in the Monchetundra deposits on the Kola Peninsula and Western Kytlym in the Urals. Monchetundra’s reserves are estimated at 60 tons of platinum and palladium, and the projected production level is 4 tons per year. Strategy consultant at Eurasia Mining’s board of directors, Alexei Churakov, told Kommersant that at a palladium price of about $ 2.3 thousand per ounce, the company’s EBITDA will reach $ 250 million after full production is reached. “The increase in the price of palladium and other platinum group metals is already extremely positively affected the capitalization of the company, which has grown five times in 2019 and currently stands at more than $ 140 million, ”he said. In his opinion, given the company’s resource base (including on the flanks of licenses) in the amount of more than 15 million ounces in palladium equivalent,
Russian Platinum together with Norilsk Nickel create the Arctic Palladium joint venture to mine 120 tons of platinum group metals, which will bring the project to first place in the world. The first products can be obtained in 2024.
Another potentially large object of Wiksha platinoids is located in Karelia; its implementation is carried out by Polymetal. In the first half of the year, the company will prepare a feasibility study, and production, the volume of which is estimated at 150 thousand ounces per year, including 120 thousand ounces of palladium, will begin in 2027.
Mikhail Buchnev, head of the practice of providing services to enterprises in the metallurgical and mining industries of PwC in Russia, believes that palladium prices may be adjusted in case of pressure on demand. “Last year, China saw a decline in car sales. If this trend continues, car manufacturers may reduce the use of palladium, ”said Mr. Buchnev
Do you think this hasn’t been priced in yet?
Up 642% in a year. That’s mad and I know I don’t have the knowledge to say its priced in or not. But maybe worth a punt still
Definitely not imo. The rise to 4p is West Kytlim mine now operating.
Lots of upside and lots of down with Eurasia, real risky bet.
Price of PGM and reliability of their drilling results is key to their success.
Huge jump today up 30%. So much potential in the Montechundra flanks.
Great news. Surprised me when I opened my account this evening!
Exciting news. It’s gone from one of my worst performers to one of the best in a day