Scientists have coined a new term for palladium –“Metal of the future.” With all developed countries focusing on a cleaner environment and extraction of pollution-free energy from fossil fuels, palladium emerges as the true hero. Approximately 85 percent of mined palladium (mainly from South Africa and Russia) ends up in catalytic converters. It neutralizes harmful substances into harmless gases like carbon dioxide, nitrogen, and water vapours. In the electronics sector, it also plays a significant role in the circuitry of telecommunication equipment and the critical components of relays. Consequently, every industry strives to gain more of it, increasing the likelihood of long-term success of palladium stocks in the stock market.
4 Canadian Palladium Stocks You Should Invest In
Here are three palladium stocks that offer the best prospects for Canadian investors interested in getting ahead of the game.
Eastern Platinum Limited (TSX:ELR)
Eastern Platinum Limited, headquartered in Vancouver, Canada, was established in 1989. Eastern Platinum Limited and its subsidiaries mine, explore, and develop platinum group metal (PGM) constituting platinum, palladium, rhodium, osmium, iridium, ruthenium, and chrome resources in underground mines of South Africa. The exploration company owns 87.5 percent of the Crocodile River Mine and the Kennedy’s Vale project, 87 percent of the Mareesburg project, and 93.4 percent of the Spitzkop project. With about 50 employees across all locations, the company generated $6.49 million in sales.
On January 26, 2022, it terminated its Project Framework agreement with its subsidiary, Barplats Mines (Pty) Ltd., and Advanced Beneficiation Technologies Proprietary Limited of South Africa for the recovery of PGMs.
The revenue for this company increased by 30.5% (from $40.3 to $52.6 million), the operating loss decreased by 54.8% (from $3.1 to $1.4 million), and the company produced and processed 948 tons of PGM concentrate in the previous year. All in all, trading at $0.27 as of February 18, 2022, at 3:45 pm, this stock is expected to rise significantly higher in the following months. Moreover, an excellent P/E ratio of 9.70 suggests that it holds an immense possibility for profit, rendering it a worthy investment.
A-Mark Precious Metals Inc. (NASDAQ:AMRK)
A-Mark Precious Metals Inc. is one of the few businesses that saw a 252% increase in gross profit from 2020 to 2021 while increasing its revenue from $1.52 billion to $1.95 billion within three months. A-Mark Precious Metals, Inc. (NASDAQ: AMRK) was founded in 1965 and is a leading fully integrated precious metals platform that sells gold, silver, platinum, palladium, and copper bullion as well as numismatic coins. The corporation operates through three complementary segments: Wholesale Sales & Ancillary Services, Direct-to-Consumer, and Secured Lending. The company conducts its various operations through its foreign subsidiary companies, including Silver Towne Mint, JM Bullion, and Goldline.
On November 11, 2021, A-Mark Precious Metals and the Prax Group launched the Carbon-Neutrality Initiative in partnership with each other. This further improves the prospects of this company as the whole world is steering towards pollutant-free production operations.
The 28% increase in the total revenue in the last three months, 32% increase in gold sales, while 51% increase in silver sales speaks for the success of this corporation. Trading at $70.88 as of February 19, 2022, at 2:51 am, the growth potential in this stock is immense. With an EPS of 17.80, the sale or purchase of each share is sure to generate a substantial profit, warranting this stock a spot on this list.
Copper Mountain Mining Corporation (TSX:CMMC)
Copper Mountain Mining Corp is a company engaged in mineral exploration, development, and operation of mineral reserves. Copper Mountain Mining Corporation focuses on Copper Mountain Mine, Eva Copper project, and Cameron Copper project.
Located 20 km south of Princeton and 300 km east of the port of Vancouver, the Copper Mountain mineral claims cover approximately 18,000 acres. Its primary constituents include 135 crown grants, 176 mineral claims, and 14 mining leases. The Eva Copper project is located 95 km northeast of Mt Isa in northwest Queensland, Australia. While the Cameron Copper project is an exploration project located approximately 30 km south of its Eva Copper Project in Queensland, Australia.
The company produced 16.7 million pounds of copper, 5,472 ounces of gold, and 80,377 ounces of silver in Q4 2021 while generating a revenue of $136.8 million. The total revenue generated in 2021 was $578.2 million.
Trading at $3.48 as of February 19, 2022, at 3:31 am, the company’s stock is expected to witness an exponential rise. A healthy trade volume of 949,738 proves the stability of this stock, making it a great investment opportunity.
Palladium One Mining Inc. (TSX.V:PDM)
A few months ago, Palladium One Mining Inc. made headlines after burning through CA$3.2M. Albeit this cash flow didn’t sit well with the investors, we believe that this cash flow isn’t problematic when considered against its market cap. PDM is a volatile stock that can rebound in the coming months.
Palladium One Mining Inc. is a palladium-focused exploration and development business emphasizing PGE, nickel, and copper while being the largest palladium miner in Canada. Its projects include Läntinen Koillismaa Project, Finland “LK Project” and Tyko Ni-Cu-PGE and Disraeli PGE-Ni-Cu properties in Ontario, Canada.
As of 10:01 am February 19, 2022, Palladium One Mining Inc. is trading at $0.195 with a potential of growth in the future. Furthermore, a healthy shares volume of 172,550 indicates that the company is dynamic and active within the investing circles. Therefore, it might prove to be a good return on investment considering the current statistics of this corporation.
Why Should You Invest in Palladium Stocks in Canada
Despite low investor demand, Palladium’s price has been outperforming other metals in recent years. In addition, palladium production has piqued the curiosity of investors looking for an inflation hedge against the US currency.
Several factors make investing in palladium stable and highly profitable in the long run. The most critical factor is that palladium is relatively environmental-friendly compared to other expensive metals such as platinum. Boasting a relatively small-scale environmental impact (since soil can hold only about 0.4 ppm of this metal), palladium is well on its way to becoming the metal of the future. Due to its environment-friendly qualities, it is used in catalytic converters, making it one of the most sought-after stocks in the contemporary world. In addition, palladium prices allow the production of cheaper electrical equipment. Almost all palladium production comes from palladium deposits in mines in South Africa and Russia. Unfortunately, both of these countries lack economic freedom. If the dollar continues to fall and suppliers stop mining palladium because of geopolitical tensions, the metal price will rise. Thus making palladium an excellent way to hedge your bets against a falling dollar and the prospect of imminent inflation.
The Bottom Line
Stock analysts label palladium stocks as a highly profitable and lesser-known option. Palladium’s production is never exclusive; instead, it is mined collectively with a wide range of other mineral resources, making it a safe bet for prudent investors. As the world gradually steers towards clean energy and pollution-free production, palladium becomes more crucial than ever. Palladium is the future, especially with its use in hydrogen purification, groundwater treatment, and exhausts of internal combustion engines.
Invest in Palladium in Canada
Most of the palladium produced by his inherited mining company Stillwater, a Montana-based producer and the largest palladium miner in the United States, was split into two underground mines located in south-central Montana that produce other precious metals such as platinum. Palladium shares are shares of companies that manufacture palladium or are mining companies. The share prices of mining companies in the platinum group (PGM) tend to be based on the underlying prices of platinum, palladium and rhodium.
The company produces gold and platinum group metals (PGM), including palladium, platinum and rhodium, and products such as nickel, ruthenium, iridium and chromium. Summary of Palladium One Mining (PDMV): The company explores mineral resources. Canadian Palladium Resources Company is engaged in acquiring and exploring commodities properties in North America and Europe.
Formerly known as 21C Metals Inc, the company changed its name in January 2020 to Canadian Palladium Resources Inc. The company was previously known as Nickel One Resources, Inc., before being renamed Palladium One Mining, Inc., in May 2019. The company is engaged in exploring and developing platinum and palladium properties.
Since most of the palladium is mined in Russia and South Africa, the relationship between the company and the foreign companies whose leases give its mines is essential in its success. Investors can take comfort from the fact that, like gold, the company is diversified across two of the best-performing precious metals, palladium and gold, rather than focusing on a single mine or asset to generate revenue. While palladium has limited uses due to its high price, some dedicated miners focus on palladium, just as companies who focus on gold and silver mining do.
At the current C $0.1 price, the shares of Canadian Palladium Resources Inc. are trading below the 200-day moving average. Most of the stocks on this list have increased in the last 12 months, partly due to the acute shortage of palladium, one of the rarest precious metals with a wide range of uses, which will only increase over time. As a result, prudent investors may want to wait for palladium stocks to retreat. Still, these stocks are an excellent long-term investment in the stock market, owing to the scarcity of palladium stocks and continued industrial use.
The price trends tend to persist, so it’s worth looking at the price trends for shares in Canadian Palladium Resources Inc. Over the last six months, the relative strength of the shares has been -18.11%. Although the company produces more gold than palladium thanks to its South African project, its palladium-focused assets have seen considerable growth. Check with your brokerage to find out if they have access to the Palladium shares you want to invest in, as they may have to do orders on the over-the-counter market if you trade one of the OTO shares on our list.
The Palladium market is a lesser-known option for precious metal investors than the gold and silver industries. Most of his production comes from palladium asset acquisitions made in a buyout of Stillwater Mining Company, a Montana-based producer and the largest palladium miner in the United States. As the largest cap miner, with a value of $12.1 billion, the company has seen its shares rise more than 70% since the start of 2019. Palladium-based exchange-traded funds (ETFs) track palladium index funds traded on exchanges.
The plant produced 56,121 ounces of palladium last quarter, giving the company record quarterly sales. However, this method of investing in palladium can be tricky, as most of the world’s palladium deposits are produced in countries with primary platinum mines.
The plant is designed to follow the development of the palladium price with less effort. Therefore, several different options need to be considered for investors interested in investing in palladium.
It is mined as a secondary product when digging for other metals. Therefore, an essential indicator of a stock’s rise or fall is its track record of momentum. Palladium can be classified as a suction substance based on an overall assessment of its quality, value., and dynamics.
Read more at Stockopedia about the power of dynamics in assessing share price movements. Barchart Solutions provide market data (opened in a new tab). Please inform yourself about the risks and costs associated with trading on the financial markets, as trading is one of the riskiest investments of all.
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