Eurasia Mining PLC bullish on platinum, palladium – commodity comment


Eurasia Mining PLC released its preliminary outlook on rare earth minerals on Thursday.

“The investment case for Platinum Group Minerals (‘PGM’), particularly platinum and palladium, remains clear and compelling in the immediate and long-term perspective based solely on demand and supply fundamentals.”

Outlook for demand:

“Demand is positive from existing markets for PGM, for both industrial and precious metal applications, and from new and emerging markets, particularly fuel cells and the hydrogen economy.”

Prospects for supply:

“This is in contrast to a limited new offering that is under development and major challenges for traditional global PGM mining regions. Structural deficits now exist in both platinum and palladium markets and are expected to persist, creating an opportunity for emerging global PGM mining regions such as Kola, (Russia).

Price forecast for platinum, palladium:

“Platinum traded above $ 1,000 / ounce in the first half of 2021 (as opposed to $ 870 / ounce at this point in the mining season last year. However, palladium is expected to continue to outperform platinum as it has a lower structural deficit than its sister metal and with additional ounces removed from forecast annual supply by trouble at Norilsk, resulting in a projected market deficit of up to 1 million ounces in 2021.

Requirement for rhodium, iridium:

“The contribution of other PGMs, namely rhodium and iridium, to the global metal revenues of (Eurasia Mining) has increased steadily since 2016, which is more due to rising metal prices than to increased production. These metals will continue to find niche use cases such as the hydrogen economy in polymer electrolyte membrane fuel cells and hydrogen production by PEM electrolysis. Both metals are produced at the West Kytlim mine. “

Write to Patrick Chu at [email protected]

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