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https://www.tradingview.com/x/aDS2RDtM/
interesting divergence in momentum/volume and price although slow stochastic not looking overbought. Some interesting discussions on Discord on SLP I will post later to ask LTHs here for their views
S
Rhodium holding steady at $21,800/oz - $100 below its all-time high. (JMAT)
Iridium at a new all-time high - $4,400/oz. (JMAT)
And platinum over $1,200/oz again and at a six-year high.
www.kitco.com/news/2021-02-09/Global-palladium-output-fell-7-in-2020-Russia-was-the-biggest-palladium-producer-report.html
Strap on, strap in... whichever works for you :)
they are now covering SLP on the channel
https://discord.gg/YBm85AXHte
https://www.reuters.com/article/china-autos/update-1-chinas-auto-sales-surged-30-in-jan-tenth-straight-monthly-gain-idUSL1N2KF0DJ
https://www.economies.com/commodities/platinum-analysis/platinum-breaches-the-barrier-%E2%80%93-analysis-%E2%80%93-9-2-2021-79204
https://www.miningmagazine.com/supply-chain-management/news/1404276/pgms-hydrogen-hopes-ride-on-heavy-vehicles
Agreed, momentum looks to be turning and PT gaps up again this morning.
S
Agreed, momentum looks to be turning (and PT gapped up again today)
S
Strong buying so far this morning.... let's go :)
Out on the 22nd. I’m going to guess that the special dividend (about which I’m pretty ambivalent) *may* just get paid this side of 5/6 April.
SLP continues to look significantly undervalued. One wonders where it goes if Pt really begins to gather hydrogen cell momentum (or even perhaps inflation-fear momentum).
Good morning, everyone.
IMO PGM 's are rapidly gaining in popularity as a hedge against all the money printing ,and debt piling up in the " real " economies + they are essential to industry .
Not essential to industry but but still a bit of a hedge and cannot be printed this would account for the rise in Bitcoin . I know where my hard earned is going .
SLP share price responding - as it often does - to a rise in platinum (to $1150/oz).
I think it must be all in the name - Sylvania Platinum. The share price isn't nearly so responsive to rhodium (now $100 off its all-time high at $21,800/oz - JMAT prices), even though rhodium makes up a far bigger proportion of SLP's revenues.
Anyway, all good. At these levels the market is, in effect, pricing in a huge fall in the rhodium price , in particular. Watch it not happen (rhodium's fundamentals are solid), and Sylvania's mcap increase as the market finally realises this.
https://resourceworld.com/platinum-group-metals-we-need-them-more-than-you-may-think/
https://www.miningmx.com/news/platinum/45083-sas-pgm-sector-not-under-pressure-to-expand-as-platinum-supply-cliff-unfounded-says-ceo/
https://www.barrons.com/articles/platinum-prices-are-poised-to-bounce-back-here-are-stocks-and-funds-to-play-it-51612568254
This is the latest on load shedding - things looking better, at least in the short term. Long term, power supply remains a big problem for SA.
www.thesouthafrican.com/news/load-shedding-schedule-sunday-7-february-eskom-how-long-last-for/
Power cuts (aka load shedding) are why the diesel generators are there! They're not cheap to run, and not very clean, but they do a job.
It should also be said that SLP's surface operations do not use anything like the power that deep shaft miners or ferrochrome smelters require. For the deep shaft miners power cuts lead to serious safety issues as well. So other players are more vulnerable than SLP (or THS, for that matter).
Finally, any interruptions in PGM production in South Africa will send the rhodium price into orbit. Rhodium is in deficit already, and 80% of the world's supply comes from South Africa. So it may be a case of what you lose on the swings you win on the roundabouts.
...a real danger, but ironically could presumably well push those metal prices higher as so much comes from SA.
Fingers crossed SLP can keep the lights on !!
and there is this one as well. interesting outlook for platinum if industry proceeds with the hydrogen cell...
https://newagemetals.com/pgm-based-fuel-cells-applications-for-industry/
This website may be of interest.
Best wishes, all
CYB
https://auctusmetals.com/platinum-flash-news-worst-bout-of-electricity-shutdown-in-south-africa-forecast/
TBTT - Already am. Had 7.6% of my portfolio in THS and wanted some more exposure to PGM's due to further potential upside in demand, so taken further 2% in SLP. Feel that THS is the better value of the 2 but though it best to diversify a little, especially with SLP having the better broker/pundit coverage. Downside of remains of SA political/taxation risk however, but with basket prices at all time highs seems a risk worthwhile taking.
SLP and THS, but for those who wish to place a safer a punt (and possibly de-risk), I've found Blackrock World Mining Trust (BRWM.L) to be a fairly secure place (and similar funds) , up 48% since 4th Feb 2020, and spread across a fairly large selection of interests (top holders own 38% of shares and are various trusts etc). All the data for mining share prices in general appears to be on the up, but market makers enjoy a profit when there's a sharp drop as well, and we've not had a correction since March. Always had a slight nagging concern that the SA government may see all the cash that SLP has and decide that they should benefit from a windfall tax.
Thanks TBTT - it really is very helpful to read your thoughts on this BB. I for one am most grateful.
Not only you, all of the other regulars too...
Quality calibre minds and it is a pleasure!
P
Hi JammyC!
There is the option of investing in both SLP and THS, you know. I challenge you to find a better mining play than either of these two. Both are making money like crazy, which I believe is the general point of business.
(Rhodium has turned back up, by the way. It's at $21,800 /oz (JMAT price) today, just $100 lower than its all-time high. One of the by-products, iridium, has rocketed up to $4,200/oz as well, which is that metal's all-time high. And platinum is going strong too.)
It's looking very bullish, and why I've just joined the club, despite preferring THS. I'm hoping we get a bounce from here although wouldn't be surprised if they attempt a tree shake below the £1. Eitherway - I'll be holding for some time
Platinum up 4.1%
Palladium up 4.8%
db Physical Rhodium ETC (XRH0.L) up 5%