Stillwater Won't Accelerate Palladium and Platinum ???
There was an article by The Wall Street Journal and also a notification from Seeking Alpha this morning;
QUOTE...
Stillwater won't speed palladium, plantinum projects !!!
* Stillwater Mining (SWC) wants to develop new U.S. palladium and plantinum mines in the longer term, BUT won't accelerate plans in response to soaring prices for the metals, President/CEO Mick McMullen says.
* SWC will focus on increasing processing of recycles palladium and platinum by deploying unused capacity, allowing it to cash in on higher prices, as well as reducing costs, to maximie returns to shareholders, McMullen says.
* Since hitting a 2014 low of just less than $700/oz. in February, palladium reached a three-year high yesterday of $852.25/oz.; driven up by a prolonged mining strike in South Africa.
This is can be a good news OR a very bad news depends on how it is interpreted. HOWEVER, in this type of uptrend and soaring Palladium market situation, if SWC is just satisfied with the contract with Johnson Metthey which is binding upon the preset sale price term for the next five years, and does not persue with expansion plan in response to soaring Palladium prices, that means, there will be no further stock price increase ??? SWC's stock price is currently being at the highest since August of 2012. Maximizing returns to shareholders ??? Dividends ??? Majority of investors and traders are not chasing after the small dividends. Under the current given international Palladium market situation, there are only two pure-play miners (SWC and PAL) besides the troublesome Russian and South African miners, who can have the true price bargain power. If SWC volunteers to drop out the whole picture like this, this is rather a very bad news !!! Well, it looks like PAL is the only beneficiary in this situation !!!
