The TSX/TSXV-listed junior palladium stocks we’ve excavated have rallied on average ~65% year to date, and could benefit from the expected increased demand for palladium from the automotive industry
SmallCapPower | January 22, 2020: The palladium price has rallied since late August 2019, when it broke the US$1,500/oz price level. Since August 2019, palladium has climbed ~48%, and ~18.5% in the past month to ~$2230/oz. Much of the expected demand for palladium is supposed to come from the expected increase in hybrid cars, which required the precious metal to control pollution, as governments begin to impose tougher regulations on carbon emissions. The market share of hybrid cars was just 3% in 2016; this is expected to increase to 20% by 2025. As such, palladium use by the automotive industry is expected to more than quadruple in the same time. Today we have found five junior palladium stocks poised to benefit from the surge in demand for palladium.
*Share price data as at January 20, 2019, data obtained from S&P Capital IQ
Platinum Group Metals Ltd. (TSX:PTM) – $3.56
Metals and Mining
Platinum Group Metals is a Canadian exploration-stage company with operations in South Africa. Platinum Group Metals is focused on the production ramp up at the Maseve Mine, and the exploration and initial engineering on the Waterberg platinum deposit. The Waterberg Project is a bulk underground deposit in northern South Africa. The deposit was discovered by the Company and has the potential to be a low-cost producer of palladium, platinum, rhodium and gold. On October 7, 2019, Platinum Group Metals released a NI 43-101 technical report for the Waterberg mine. The report estimated Mineral Resources for the Waterberg Project that included 242.4 million tonnes at an average grade of 3.38 g/t 4E, 0.10% copper (Cu) and 0.18% nickel (Ni) in the Measured and Indicated (M&I) category, and an additional 66.7 million tonnes at an average grade of 3.27 g/t 4E, 0.11% Cu, and 0.15% Ni in the Inferred category. Additionally, the estimated Inferred Mineral Resource contains a total of 19.5M oz of Pd, Pt, Rh, and Au.
- Market Cap: $222.0M
- YTD-Return: +58.6%
- 30-Day Return: +98.3%
- 30-Day Average Trading Volume: 52,420
Palladium One Mining Inc. (TSXV:PDM) – $0.195
Metals and Mining
Palladium One Mining explores for, and develops, platinum group metals properties in Canada and Finland. The Company explores primarily for palladium, platinum, gold, copper, cobalt, and nickel. It holds interests in the Lantinen Koillismaa project situated in north-central Finland; and Tyko property located in Ontario, Canada, which was acquired in August 2019. The Company was formerly known as Nickel One Resources Inc. and changed its name to Palladium One Mining Inc. in May 2019.
- Market Cap: $21.5M
- YTD-Return: +2.7%
- 30-Day Return: +52.0%
- 30-Day Average Trading Volume: 1,112,400
Group Ten Metals Inc. (TSXV:PGE) – $0.315
Metals and Mining
Group Ten Metals is a junior explorer focused primarily on the exploration and development of mineral properties in Canada and the United States. Group Ten explores for gold, platinum, palladium, nickel, copper, cobalt, and other commodities. The Company holds interest in the Yukon properties, Canada, which covers catalyst/CKR, spy, ultra claims, ellen, and outpost, and pacer claims approximately covering an area of 255 square kilometers; the Duke Island property, which comprises 31 unpatented claims located south of Ketchikan in the Alexander Platinum Belt of southeast Alaska; and the Black Lake-Drayton project in Ontario, which covers an area of approximately 13,733 contiguous hectares. On December 18, 2019, Group Ten announced drill results, which were highlighted by 272m of 1.90 g/t Pt Equivalent (0.42% Ni Equivalent) at the Stillwater West Project in Montana.
- Market Cap: $30.8M
- YTD-Return: +43.2%
- 30-Day Return: +75.0%
- 30-Day Average Trading Volume: 384,390
New Age Metals Inc. (TSXV:NAM) – $0.10
Metals and Mining
New Age Metals is a junior explorer that acquires, explores for, and develops platinum group metals (PGMs), and precious and base metals properties in Canada. It holds interests in the River Valley PGE project located in the Dana and Pardo townships of northern Ontario; Genesis PGE/polymetallic project located in south central Alaska; and eight lithium projects situated northeast of Winnipeg, Manitoba.
- Market Cap: $9.7M
- YTD-Return: +110.0%
- 30-Day Return: +162.5%
- 30-Day Average Trading Volume: 1,199,920
Grid Metals Corp. (TSXV:GRDM) – $0.15
Metals and Mining
Grid Metals is a junior precious metals explorer and developer focused in Canada. It explores for nickel, copper, cobalt, lithium and rare metals, and platinum group metals. The Company holds interests in the Makwa property, a nickel-copper-platinum group metal exploration project; Mayville property, a nickel-copper-platinum group metals exploration project; and Mayville lithium property, a lithium and rare metals exploration project located near Lac du Bonnet in southeast Manitoba. It also has interests in the East Bull Lake, a platinum group metals-nickel-copper exploration project, as well as Bannockburn nickel property located in the Sudbury Mining Division, Ontario.
- Market Cap: $7.2M
- YTD-Return: +64.7%
- 30-Day Return: +64.7%
- 30-Day Average Trading Volume: 112,680
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