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Norilsk is the number one producer of palladium, accounting for more than 40% of global output, and is also a leading supplier of platinum. Both metals are used to curb harmful emissions from cars.
While palladium prices have soared by more than a third in the last five years, platinum has slumped by more than 40%. It is now around $490 an ounce cheaper than palladium, against an average premium over the last 30 years of $435.
Neither metal is likely to see any major growth in global supplies within six years, after which new projects from Nornickel and other miners will start producing, the Russian firm said.
There is some growth in production from 2025, while consumption will be rising for all upcoming years," Anton Berlin, head of Nornickel's marketing department, told Reuters.
More than half of global platinum group metals (PGMs) come from ore containing a mix of other minerals such as copper, nickel, gold and silver, like that found in Nornickel's Arctic assets. Their production cannot be increased sharply.
Growth in PGMs demand from autocatalyst makers will continue over the coming years, Berlin said.
He expects hybrid cars, which use catalysts in their internal combustion engines, to further support demand along with tougher emissions regulation in China and Europe.
On the subject of stockpiles, a long-standing wild card in the palladium market, Berlin said the status of a significant proportion of above-ground palladium stock remained opaque.
Accumulated stockpiles around the world are difficult to estimate because the Soviet Union, which ceased to exist in early 1990s, did not disclose its production, domestic consumption or exports.
According to some analysts' estimates, a significant amount of the Soviet stockpile was sold abroad by the Russian government in the 1990s to raise cash.
Estimates of global palladium stocks vary from 2.5 million troy ounces to 25 million ounces, Berlin said, though no-one could pinpoint them for sure.
https://m.miningweekly.com/article/palladiums-price-gap-over-platinum-needs-to-shrink-nornickel-2019-05-13
Norilsk is the number one producer of palladium, accounting for more than 40% of global output, and is also a leading supplier of platinum. Both metals are used to curb harmful emissions from cars.
While palladium prices have soared by more than a third in the last five years, platinum has slumped by more than 40%. It is now around $490 an ounce cheaper than palladium, against an average premium over the last 30 years of $435.
Neither metal is likely to see any major growth in global supplies within six years, after which new projects from Nornickel and other miners will start producing, the Russian firm said.
"There is some growth in production from 2025, while consumption will be rising for all upcoming years," Anton Berlin, head of Nornickel's marketing department, told Reuters.
More than half of global platinum group metals (PGMs) come from ore containing a mix of other minerals such as copper, nickel, gold and silver, like that found in Nornickel's Arctic assets. Their production cannot be increased sharply.
Growth in PGMs demand from autocatalyst makers will continue over the coming years, Berlin said.
He expects hybrid cars, which use catalysts in their internal combustion engines, to further support demand along with tougher emissions regulation in China and Europe.
On the subject of stockpiles, a long-standing wild card in the palladium market, Berlin said the status of a significant proportion of above-ground palladium stock remained opaque.
Accumulated stockpiles around the world are difficult to estimate because the Soviet Union, which ceased to exist in early 1990s, did not disclose its production, domestic consumption or exports.
According to some analysts' estimates, a significant amount of the Soviet stockpile was sold abroad by the Russian government in the 1990s to raise cash.
Estimates of global palladium stocks vary from 2.5 million troy ounces to 25 million ounces, Berlin said, though no-one could pinpoint them for sure.
https://m.miningweekly.com/article/palladiums-price-gap-over-platinum-needs-to-shrink-nornickel-2019-05-13
Concerns over a supply deficit helped the white metal, used mainly by automakers to reduce emissions in gasoline-powered and hybrid cars, to surge more than 60 percent in the past six months. Yet the level of inventories -- held by traders, customers, banks and other investors -- remains a mystery. The only visible figure is the holdings in exchange-traded funds, which may no longer be enough to bridge the projected supply gap.
London-based researcher Metals Focus Ltd. estimates that above-ground stocks of palladium fell to 13 million ounces by the end of last year. Heraeus, a precious metals refiner, said various sources have estimated a range of 10 million to 18 million ounces, which equates to roughly one to two years of demand.
“The question is: at what price will the holders sell?" Heraeus said in a research note this week.
https://www.bloomberg.com/news/articles/2019-02-20/palladium-stocks-remain-a-mystery-as-prices-surge-to-record
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https://www.ft.com/content/5ac67390-e424-11e9-b112-9624ec9edc59
Another reason is that stocks are running low. And with few platinum or nickel projects under development, the 7m ounces-a-year palladium market is set to remain tight unless there is an unexpected release of supplies.
Yet it is difficult to see where these supplies might come from. Russia’s Norilsk Nickel, the world’s largest producer, raised doubts last week about its ability to replenish its Global Palladium Fund.
Established in 2016, the fund helps stabilise the market, buying metal from various sources, including Russia’s central bank, and selling it to industrial customers. However, analysts believe that Moscow’s strategic stockpile of palladium — a key source of supply — is close to being exhausted, while other holders are reluctant to sell because they expect higher prices.
that in November 2017 Churakov bought a stake in Eurasia, but its size was not disclosed. “In fact, with this money (stocks and loans) in 2018, the company launched production in the Urals,” the source told RBC.
“We are grateful to Churakov for his contribution to the development of Western Kytlym and preparation for the purchase of an enrichment plant. We are also pleased that Churakov took over as a consultant on the company's strategy and will bring his experience in M&A deals in the mining industry, as well as high-level contacts with mining companies, including South African Lesego Platinum, ”said Christian Shaffalitsky, Chairman of the Board of Directors of Eurasia, .
Mergers and acquisitions (M&A) are forms of corporate restructuring that are becoming increasingly popular. The motive for wanting to merge with or acquire another company comes from management trying to achieve better synergy within the organization.
At the beginning of 2018 Venus Garden Holdings Limited Churakova purchased for $ 350 thousand. 7% "daughter" the Eurasia "Kosvinsky Kamen", which owns the existing fields in Western Kytlym in the Sverdlovsk region, told a British company. Its reserves are 20 tons of platinum and related metals - gold, palladium, iridium and rhodium; in 2018, 165 kg of platinum were mined at the deposit with a forecast production volume of up to 1 ton of metal per year. The same message said that in November 2017 Churakov bought a stake in Eurasia, but its size was not disclosed. “In fact, with this money (stocks and loans) in 2018, the company launched production in the Urals,” the source told RBC.
“We are grateful to Churakov for his contribution to the development of Western Kytlym and preparation for the purchase of an enrichment plant. We are also pleased that Churakov took over as a consultant on the company's strategy and will bring his experience in M&A deals in the mining industry, as well as high-level contacts with mining companies, including South African Lesego Platinum, ”said Christian Shaffalitsky, Chairman of the Board of Directors of Eurasia, .
Top-level contacts are understood as acquaintances with top managers of such companies as Glencore, Gold Fields, Sumitomo, Norilsk Nickel, Polyus, Polymetal, UMMC, and Russian Platinum. For example, the CEO of Lesego Platinum Nyuvenheys James worked as chief operating officer of the "pole" for five years, since 2011, and can now enter into Eurasia's board of directors, if the negotiations succeed, according to a British company.
https://www.rbc.ru/newspaper/2019/09/20/5d81f61b9a7947ae33b4faab
Alexey Churakov, ex-manager of Sumy Ziyavudina Magomedova, became a shareholder and consultant on the Eurasia Mining strategy, which produces platinum in the Urals. He has invested up to $ 10 million in the company and is in talks to attract investors
Alex Churakov that in 2012-2018 he worked as the Chief Investment Officer of the "Amount" Ziyavudin Magomedov, was appointed as a consultant on strategy of the British company Eurasia Mining Board of Directors, the platinum mining in Russia, said in a statement.
Even before this appointment, Churakov helped organize the visit of the delegation of the South African Lesego Platinum, led by its director general James Newvenheis, who over the past few months carried out due diligence of the Eurasia Mining West Kytlym deposits in the Urals and Monchetundra on the Kola Peninsula, the British company said. Lesego evaluated infrastructure accessibility, logistics, ore samples, laboratory tests, and other information to “consider, along with other options, the partial acquisition of Eurasia subsidiaries or the establishment of joint ventures in the fields,” Eurasia reports.
Basically, for help in organizing these negotiations and as an incentive, the main shareholder and member of the Eurasia board of directors Dmitry Suschev (at the end of 2018 owned 19.2% of its shares) agreed to transfer to Churakov at a par value of 25.47% of Deloan Investments, through which he owns 11.07% of the British company, Eurasia Mining said in a statement. Thus, the former top manager of Sumy became the owner of 2.82% of Eurasia.
“I have known Eurasia Mining for a long time, watched its progress for a couple of years, got acquainted with the team and major shareholders, was able to evaluate the prospects for the whole precious and non-ferrous metal sector as a whole, the company focuses on it and the prospects those specific projects that the company owns and develops, ”said RBC Churakov. According to him, in 2017 and 2018, he bought shares in Eurasia and its subsidiaries at his own expense. “This year, for a number of things I did, I received a new small package at par,” he said.
A source close to the shareholders of the British company told RBC that Churakov invested a total of up to $ 10 million in this project. “This amount includes the purchase of shares in Eurasia and its subsidiaries and debt financing provided to the company. As a result, the total package in direct and indirect ownership is noticeably larger than 2.8%, ”he said. As a result of trading on the London Stock Exchange on September 18, 100% of Eurasia cost £ 13.3 million, or $ 16.6 million. Churakov himself did not name the total size of the package in Eurasia and investments in the company.
possible chris there havent been any TR1's yet however institutions wernt able to invest until the 50 million valuation was crossed so last tuesdy or so. and an entity outside the U.K i.e russia are allowed to allocate up to 5% holding and then have 3 working days to disclose that.
thats a good question in all honesty, the way i trade id take a few months away from the market, the possibility of the biggest AIM riser in history nothing would give me the same conviction or profit and id come back once i've spent the 50% profit id take out
Very true Mac its really not a cliche theres a difference from the day to day aim stocks which offer 300- 500% to EUA but the reality is theres a possibility here of a ÂŁ20 mil company as of 23rd october being worth several hundred millions or more, the reasons it hasnt already overlooking the commodity to be honest until china and india were dug out for their emissions and we bought in the ULEZ bringing down car emissions was a priority but not top. And like Dimitry said in the Proactive interview theres an extra $700 on the price of the commodity which goes back into profit. think of it like this if we had a palladium price of $1000 as it has been and it cost $300 to mine it only leave $700 now take $1587 the Q3 average take away the 300 gives us $1287 thats why we wernt bought before IMO of course
June 20 (Reuters) - Eurasia Mining Plc, which operates gold and platinum group metals projects in Russia, said it would buy out partner Anglo American Platinum Ltd’s stake in their platinum mining joint venture.
The miner said its unit Eurasia Investments Ltd (EIL) would buy the 50 percent stake it does not already own in Urals Alluvial Platinum (UAP) from Rustenburg Platinum Mines (RPM Cyprus).
The agreement is conditional on RPM Cyprus and members of the Anglo American Platinum group getting approval from the South African exchange control, Eurasia Mining said on Friday.
https://www.reuters.com/article/eurasia-mining-anglo-platinum-idUSL4N0P12HK20140620
didnt take long for them to buy them out becuase they knew the future worth IMO
Record revenue: Based on 59,611 ounces of palladium sold at an average palladium price of US$1,587, revenue for the quarter increased to $149.9 million compared to $93.6 million for the same period in 2018. This is the highest quarterly revenue in the Company’s history. Revenue for the first nine months of the year was $413.8 million based on 172,507 payable ounces of palladium sold.
Strong growth in net income: Net income was $41.4 million, or $0.70 per share, compared
https://www.nap.com/investors/news/news-details/2019/North-American-Palladium-Reports--Q3-2019-Record-EBITDA/default.aspx
have to do the calc with those figure Ned
The average palladium price for Q3 was US$1,587 thats the price any company would of sold their resource for, no if buts or maybes. would fully expect a base $1600 average for Q4, Q1 is dependent at the moment on geopolitical tensions from east to west or west to east depending on who you see the problem being. IMO except the $1587 figure thats a fact
over the weekend please read the rules of AIM it is only going to give you guys the ammunition and understanding should a disposal of the Assets take place.
Disclosure of corporate transactions:
FUNDAMENTAL CHANGES OF BUSINESS
Any disposal by an AIM company which, when aggregated with any other disposal(s) over the previous twelve months, exceeds 75% in any of the class tests, is deemed to be a disposal resulting in a fundamental change of business and must be:
conditional on the consent of its shareholders being given in general meeting;
notified without delay disclosing the information specified by Schedule Four and insofar as it is with a related party, the additional information required by rule 13; and
accompanied by the publication of a circular containing details of the disposal and any proposed change in business together with the information specified above and convening the general meeting.
Divestment or Cessation
Where the effect of a disposal is to divest the AIM company of all, or substantially all, of its trading business, activities or assets; and/or
Where an AIM company takes any other action, the effect of which is that it will cease to own, control or conduct all, or substantially all, of its existing trading business, activities or assets (in which case such action should be notified without delay and include all relevant information that shareholders may require)
Upon completion of the disposal or action, the AIM company will be regarded as an AIM Rule 15 cash shell.
Within six months of becoming an AIM Rule 15 cash shell, the AIM company must make an acquisition or acquisitions which constitutes a reverse takeover under rule 14. For the purposes of this rule only, becoming an investing company pursuant to rule 8 (including the associated raising of funds as specified in rule 8) will be treated as a reverse takeover and the provisions of rule 14 will apply including the requirement to publish an admission document.
Where an AIM company became an investing company (pursuant to rule 15) prior to 1 January 2016, the requirements of rule 15 set out in the AIM Rules for Companies (May 2014) will continue to apply. Accordingly, if such a company does not make an acquisition or acquisitions which constitutes a reverse takeover under rule 14 or otherwise fails to implement its investing policy to the satisfaction of the Exchange within twelve months of becoming an investing company in accordance with that rule, the Exchange will suspend trading in the AIM securities pursuant to rule 40.
https://aim-watch.com/articles/aim-rules/
CITIC, one of China's largest investment banks and VTB Capital, one of Russia's largest investment banks (together the "Banks") have already started (even prior to signing their respective engagement letters) assisting the Company with strategic options for its current mining assets (the Company's Kola and Urals assets (the "Assets")),
from the horses mouth this has been going on longer than anyone thinks i.e 24th october and none of us could say how long it has been. my guess would be within 6 months either side of Alexi coming on board.
Enjoy your weekends, again on a Friday we find ourselves at a better position than a week ago, its not a sprint but a marathon think its fair to say we are in first place.