iHub Mining Sector Entrance Lobby

[Frank Pembleton]

Bob... what do you think about palladium as an investment? I've been checking out North American Palladium, and like you were saying, from the beginning of last September was big for base metal miners in general.

FWIW, I've always seen Pd to Pt, as Ag is to Au. Meaning big nickel players like Norilsk #msg-530456 and Inco have a substantial by-product production of palladium. Considering the implications of the Norilsk/GM deal in light of the bearishness towards to auto sector, wouldn't this cap any of the upside in the spot market?
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PR-Tagline:

North American Palladium's Lac des Iles Mine is Canada's only primary producer of platinum group metals and is one of the largest open pit bulk mineable palladium reserves in the world. Palladium use in the auto industry continues to be an important component in controlling exhaust emissions as mandated by more stringent hydrocarbon emissions standards for cars, particularly in the United States, Europe and Japan.
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I always questioned the sustained profitability of North-American Palladium since it is primary producer. Reading through their pr I noticed the mining operation recovery rate is around 70%-- they've had problems with the crusher and the repairs should be completed by next month. They've also implemented a pilot program to raise the recovery rates.

I can see some upside here, the perception of a booming economy, improved recovery rates, and a totally oversold stock that trades just a little over book value-- might give us another nice run.

Chart starting from November 2001:


Regards,
Michael