Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Thanks for excellent posts today, marineclark.
You would t know Rhodium was up by today’s trading and the drop in the past 20 mins.
Rhodium up 7.45%. Wont be long folks.
Thanks Minecheck for all of that information and for sharing the sources.
the woke word has infiltrated the slp world....grrrr
Brilliant, witty and accurate the post from Minecheck. Today’s internet champion.
EU plans to tighten its NOx standards again next year (see the spring Matthey PGM report). I expect China will gradually see more stringent standards on NOx too (only since Xi has to breathe the same air as the peasants in the hutongs overshadowed by the CNOOC hq on the second ring road).
My view is that, particularly if you’re say in the UK and constantly bombarded by group-think about how EVs are going to take over the entire world, then it’s easy to worry about future demand for Rh.
But putting aside the fairly obvious nonsense hype, and ignoring the nascent energy crisis which the Uk is driving itself into (even before EVs and electric heat pumps are even widely adopted), I find it useful to look through the lens of less woke states where most of the world’s population actually live.
Here, in China, India, Russia etc, we can see clearly that there is no pretence that everyone will soon be driving a Tesla at 30-50k a pop. We can see that ICE cars are still the immediate future.
But we can also see in states such as Japan that hydrogen, not EVs , is the future path.
In all probability, as infrastructure and energy become even more of an issue, the UK will realise that it has bet on the wrong technology. These problems are one ugly advertisement to the rest of the world about not just so called ‘green energy’ but the pitfalls of massively ramping up demand for electricity whilst betting on intermittent sources for that power.
From a global perspective therefore I steady future demand for autocatalysts. The UK market is insanely woke and that’s why, IMO, SLP is insanely under-valued.
DYOR of course.
https://www.investec.com/en_gb/welcome-to-investec/press/hydrogens-rise-materially-increases-pgm-relevance.html
"......As vehicle manufacturers transition en masse away from this legacy propulsion technology, it may seem like the mining sector is about to lose one of the most powerful demand drivers for PGMs. “Fortunately, the unique chemical properties of the PGMs will likely ensure that these metals can play a crucial role in the world's emerging energy transition,” affirms Mathonsi.
According to the International Renewable Energy Agency (IRENA), this transition will transform the global energy sector from fossil fuels to zero-carbon energy by the second half of this century and hydrogen will play a central role within the world's new energy mix. Mathonsi explains that the world has experienced a new wave of interest in the hydrogen economy as its potential applications continued to grow. “Hydrogen is an extremely abundant element, and we can produce it with a marginal carbon footprint, if harnessed properly.”
According to the Hydrogen Council, 18 countries already have roadmaps or strategy documents setting out their intentions to use hydrogen as a source of alternative energy in the future.
“While PGM-based catalysts are expected to benefit from the fuel cell electric vehicle technology within the hydrogen economy, their application extend way beyond just powering a new generation of vehicles,” elaborates Mathonsi.
And platinum will assume a particularly important role in the production of hydrogen as a clean energy source. It is the catalyst material used in the proton exchange membrane (PEM) electrolysis process to produce green hydrogen if the electricity input is harnessed from green renewable energy sources. ......."
Rhodium up again :)
https://www.reuters.com/technology/german-auto-giants-place-their-bets-hydrogen-cars-2021-09-22/
"....But he added: "It's not out of bounds to think if the (German) Greens come into power they could accelerate the push to adopt regulations favouring hydrogen fuel-cell cars."
BMW's Guldner acknowledged hydrogen technology was too expensive to be viable for the consumer market today, but said costs would come down as trucking companies invested in the technology to bring fuel-cell vehicles to market at scale.
To demonstrate BMW's hydrogen X5 prototype, Guldner took Reuters for a spin at 180 km (112 miles) per hour on the autobahn near the carmaker's Munich headquarters and in a few minutes gave it enough fuel to run 500 km using a hydrogen gas pump at a Total petrol station.
Guldner said BMW saw hydrogen fuel-cell cars as "complementary" to its future battery electric model range, providing an alternative for customers who cannot charge at home, want to travel far and refuel swiftly. The motor in the hydrogen X5 is the same as BMW's all-electric iX.
"When the future is zero emissions, we believe having two answers is better than one," he added."
Is hydrogen gas cleanest fuel?
When hydrogen burns in air, it produces nothing but water vapor. It is therefore the cleanest possible, totally nonpolluting fuel.
https://www.globenewswire.com/news-release/2020/07/17/2063957/0/en/Hydrogen-Generation-Market-to-Reach-USD-208-86-Billion-by-2027-Rising-Demand-for-Fuel-cell-Based-Vehicles-to-Spur-Growth-Fortune-Business-Insights.html
https://www.reuters.com/technology/german-auto-giants-place-their-bets-hydrogen-cars-2021-09-22/
PGMS are used in hydrogen fuel cells which are the future. Billions are pouring in to this tech, which is costly right now, but will fall over time.
Don't forget PGMS are used in hybrids.
what do people think of the future of this company as in 5-10 years time?
any company that has the same market cap as it's net assets has to be of interest as you are basically buying it at pretty much no risk and get any growth for free.
However the main use of the metals they mine is catalytic converters and with the push, in the west anyway, for a move to electric cars, are people worried the floor will fall out of the demand for these metals?
As I say I'm interested in how people see this and if anyone does see it as a long term play (and if so why?), so not looking to upset holders, just looking to understand the sustainability of this company.
Thanks
https://dailywealth.com/articles/this-beaten-down-commodity-is-about-to-soar-2/
Platinum up 4.33%
Palladium up 6.87%
Rhodium up 1.19%
I hope no one was waiting for 70p :)
https://www.thehindubusinessline.com/markets/commodities/3-reasons-why-rhodium-prices-have-zoomed-over-70-since-january-1/article34018038.ece
A good read to understand the price rise in Rhodium last year and why prices will rise again.
"Heraeus Precious Metals says rhodium prices are likely to fluctuate at high levels and volatility will be the norm. “The market deficit for rhodium should widen further this year. Demand from the automotive industry, by far the largest customer, is likely to remain high in view of stricter emission regulations,” the German firm said."
Yes Stoodio, that’s 4 straight-out trading days where Rhodium has risen consecutively; if it’s not careful it’ll start a new trend, LOL!
However, Rh also last rose 4 days consecutively by the close of August, then promptly did a further stinky dump leading from then, down to the apparent floor on 15th Sept @ $11,250 and now 4 trading days later, rising to sitting @ $13,400
It’ll do for now.
Also for circa 4 days, nay 5 days including today, the SP appears to have fallen in love with 87p. On each of the past 5 trading days the SP either closed at 87 or opened at 87. It varied how far it travelled to the opposite end of each day, but have yet to see an open or close away from 87 since Wednesday of last week!
Could be forming a flat base which have a reputation for ending, more often than not, bullishly.
Nothing wrong with guesstimates of 140, or those below £1 in the 80’s, or £2. We all need to be open to diametrically opposing views to test our assumptions.
The old cyclical tables I had (before July/August exploded in my face rendering my headless body something like the cat Scratchy in the Simpsons) showed £2 by January next year, so smiled when I read that £2 estimate below. However, after inputting the actual reality prices as each month has moved on, the table (with the old probability % calcs in place, for the remaining months now show the SP only closing in the lowly 100’s at circa 104/105 by end of this year.
- Whatever, closer to home I’m sticking to September to close lower than it opened. Should September do what it’s not fond of doing in September and close higher, then this chip damage is rendering all estimates under: anything now possible.
So, 140, 200 or 80’s, is all grist to the mill for me. As IMO it’s more a case of the market trying to find an SP level it’s comfortable with, whilst the chip crises recovery rages on.
- A sentiment-driven price whilst the crisis develops.
- Another sentiment-driven price for when that crisis dissipates away.
There isn’t a “one price” in these conditions :)
I’m not expecting a return to what once was (anchoring) any time soon, at least not until the chip issues are resolved.
"Investing is finding a great company, plonk the money down. Then sit on your ass and wait."
Charlie Munger
Priceless!
Indeed, Rhodium is up again today :)
Just reading back, sorry I also saw a "sat waiting for £1.40.." comment. That's a weird one, its called, "investment".
That weird 'hobby' of sitting and 'waiting' has netted me a near 2,000% ROI. Yeah. I'm happy to sit and wait :)
Priceless commentary from a trader. It's all good. If everyone thought the same and all that :)
...end of first quarter 2022.
Stoodio, I won't be falling on the sword like yourself, but 150-200p by first quarter 2022, is my price prediction here. I mean not sure if I would even call it a prediction. With cash balance sitting at £144 million first quarter next year(not discounting divendend payments), if price stays as it is cash balance would amost three quarters of current market cap. Clearly bonkers. But market is currently pricing a total PGM price collapse. When it doesnt this should rocket.
That rhodium price is also heading back to a wonderfully sustainable 17,000+ p/oz IMO.
Arriving at £1.40+ by December 31st is for me, pretty simple math. And if you don't see material upside, then I'm not entirely sure what your motivation is with this stock? I'm no trader, not interested. I invest for long term growth. There's been a pattern her the past few weeks so definitely has highlighted simple (almost too easy) trading opportunities.
But I'm a busy man. I'll just have Sylvie continue to do what she does, even with 'almost' (use that term extremely flippantly) irrelevant PGM prices,, that is, WE PRINT MONEY. LOT'S OF IT. Wakey wakey.