Critical Metals Surge Opens
Prime Opportunity for Mining Investors
November 22nd, 2024 - InvestorsHub NewsWire -- NetworkNewsWire
Editorial Coverage: Interest in the mining sector is on
the rise, fueled by growing demand for metals that are crucial to
modern industries. The shift toward clean-energy technologies,
including electric vehicles (EVs) and renewable energy systems, has
heightened the need for critical minerals, particularly lithium,
cobalt, nickel and rare earth elements ("REEs"). At the same time,
traditional metals such as copper and aluminum are seeing renewed
importance due to their essential roles in infrastructure and
energy transmission. Gold and silver remain appealing as safe-haven
assets during periods of economic uncertainty and inflation.
Additionally, the global drive for decarbonization and energy
efficiency is boosting demand for platinum group metals ("PGMs"),
which are valued for their purity, high melting points and unique
catalytic properties. These metals are integral to numerous
industrial processes and play a pivotal role in autocatalysis and
pollution control within the automotive industry. With potential
supply disruptions from major producers and geopolitical tensions
tightening the market, mining companies are well positioned for
growth. One of those companies, Platinum Group Metals
Ltd. (NYSE: PLG)
(TSX: PTM)
(Platinum
Group Metals Profile), is emerging as a
leader in the PGM space, due to the performance of its flagship
Waterberg Project in South Africa. Platinum Group Metals joins
other mining and commodity-related organizations that are focused
on strengthening their foothold in the mining sector, including
companies such as Endeavour
Silver Corporation (Canada) (NYSE:
EXK), Fortuna
Mining Corp. (NYSE:
FSM), New
Gold Inc. (NYSE
American: NGD) and Sandstorm
Gold Ltd. (NYSE: SAND).
- PGM outlook on rise due to several critical factors.
- Recognizing the rising demand for PGMs, Platinum Group Metals
is committed to developing flagship initiative.
- Company reports notable results from independent feasibility
study.
Critical Factors Lead to Positive Sector
Outlook
The platinum group metals ("PGMs") space encompasses six key
metals, including platinum, palladium, rhodium, ruthenium, iridium
and osmium. These metals are highly valued for their catalytic
capabilities, resistance to corrosion, and superior electrical
conductivity, making them indispensable across an array of
industries such as automotive, electronics and healthcare. Although
there were initial concerns that the rise of battery electric
vehicles ("BEVs") could reduce PGM demand, the industry's outlook
has improved due to several critical factors.
Renewed Auto Sector Demand for Platinum and
Palladium: The automotive industry remains a major
driver of PGM consumption, particularly for platinum and palladium,
which are essential components in catalytic converters for internal
combustion engines ("ICE") and hybrid
vehicles. While BEVs once seemed poised to dampen
demand, a slowdown in BEV sales has led to a renewed focus on ICE
and hybrid models, boosting the need for PGMs. This trend
highlights the ongoing importance of PGMs in reducing emissions,
even as the automotive sector gradually shifts toward more
sustainable technologies.
Geopolitical Risks Affecting Palladium
Supply: Russia is the leading global supplier of
palladium, accounting for a significant portion of the world's
output. However, geopolitical instability and the possibility of
sanctions on Russian exports present serious risks to
the palladium
supply chain. These uncertainties could result in supply
disruptions and increased prices, offering potential advantages to
producers operating outside Russia.
South Africa's Challenges in Platinum and Rhodium
Production: South Africa plays a dominant role in the
global production of platinum and rhodium. However, the country
faces persistent issues such
as energy shortages, labor disputes, and operational
inefficiencies, which have led to reduced output. Many of the
region's traditional platinum and palladium mines are aging, deeply
situated, and costly to maintain, raising safety concerns as well.
These production challenges further tighten supply, providing
additional upward pressure on PGM prices and underscoring their
strategic value.
Growing Investment Interest in
Platinum: Amid rising economic uncertainty and
geopolitical tensions, precious metals are increasingly sought
after as safe-haven investments. Platinum, alongside gold and
silver, has attracted significant
attention from investors. This growing investment
demand underscores the dual nature of PGMs as both industrial and
financial assets, making them particularly appealing in times of
market volatility.
Joint Effort Creates Flagship Initiative
Recognizing the rising demand for PGMs, Platinum
Group Metals is committed to addressing this need
through its flagship initiative, the South Africa–based Waterberg
Project. Originally identified by the company in November 2011,
this project focuses on key PGMs such as palladium, platinum and
rhodium, as well as gold, capitalizing on the company's specialized
knowledge to help meet growing global demand.
The
Waterberg Project is a collaborative effort
involving several partners: Platinum Group Metals; Impala Platinum
Holdings Ltd. (Implats); HJ Platinum, a consortium of Japan Oil,
Gas and Metals National Corporation and Hanwa Co.; and Black
Economic Empowerment ("BEE") partner Mnombo Wethu Consultants
("Pty") Ltd. The deposit is relatively shallow, and the planned
mine is designed as a mechanized, underground operation focused on
bulk production. This approach aims to deliver a safe, sustainable,
and scalable supply of PGMs.
The Waterberg Project offers significant opportunities for
investors seeking exposure to the PGM market. The project's
strengths include a substantial resource base, the potential for
cost-efficient production, strategic partnerships with a major
platinum producer and a Japanese consortium, and a collaboration
with a Saudi Arabia–based group working to establish a PGM smelter
in Saudi Arabia. Together, these factors position the Waterberg
Project as a unique and competitive asset in the PGM industry.
Feasibility Study Notes Project Potential
Platinum Group Metals recently reported on results from an
Independent Definitive Feasibility Study Update (2024 DFS) that the
company had undertaken, which was focused on the Waterberg Mine.
Key findings from the report include
several notable observations, including the following:
- Increased Mineral Reserve
Estimate: Proven and probable mineral reserves
increased by 20% to 23.41 million 4E oz (246.2 million tonnes at an
average grade of 2.96 4E g/t, 0.08% copper ("Cu"), and 0.17% nickel
("Ni").
- Extended Life of Mine: LOM increased from
45 years to 54 years with annual steady state average production in
concentrate of 353,208 4E oz. and peak annual production of 432,950
4E oz.
- Robust Economics: After-tax net present
value at an 8% real discount rate of $569 million and an Internal
Rate of Return of 14.2% using average long-term consensus metal
prices as of May 2024.
- One of the Lowest Cost PGM Mines in Southern
Africa: On site LOM average cash cost, including base
metal byproduct credits and smelter discounts as a cost, of $658
per 4E oz, with an all-in sustaining cost of $761 per 4E oz.
- Strong Cash Flow Generation: LOM free
after-tax cashflow of $6.50 billion at consensus prices.
- Reasonable Capital: Estimated total
project capital of $946 million, including 8.5% for contingencies,
and peak capital estimated at $776 million.
"The 2024 DFS validates the world-class nature of the Waterberg
Project," said Frank R. Hallam, Platinum Group president and CEO.
"Engineering teams from Stantec, DRA and Fraser McGill have
collaborated to achieve an optimized and de-risked mine plan while
also minimizing capital requirements. The primary objectives of the
2024 DFS were to update and minimize capital and operating costs,
and to simplify the construction, ramp up and operating profile of
the Waterberg Mine.
"I believe these objectives have been achieved," Hallam
continued. "We look forward to advancing the Waterberg Project for
the benefit of our partners and local communities, as well as all
the people of South Africa. The Waterberg Project is planned to
create approximately 2,000 jobs during construction and
approximately 1,425 mostly high skilled jobs once steady state
mining is achieved. PGMs, copper and nickel play key roles in
automotive emissions control and energy transition technologies,
including that found in battery electric, plug-in hybrid, gasoline
hybrid and hydrogen fuel cell vehicles. The Waterberg Project is a
long-life asset capable of profitably producing these critical
metals."
PGM Collaborative Venture Eyeing Breakthrough
Batteries
Another key piece that distinguishes Platinum Group Metals is
its Lion Battery Research project, a joint venture with Anglo
American Platinum. This
project aims to develop lithium-sulfur batteries
incorporating PGMs, a breakthrough that could transform energy
storage and broaden the applications of PGMs.
To advance this goal, Platinum Group Metals and Anglo
American Platinum Limited cofounded Lion
Battery Technologies. The venture focuses on integrating
palladium and platinum into lithium battery technologies. According
to the company, "The potential to drive new demand for platinum and
palladium in battery technology is both an exciting opportunity and
strategically significant for both partners." Lion Battery
Technologies has partnered with Florida International University
("FIU") to push forward a research program exploring the use of
platinum and palladium in lithium-air and lithium-sulfur batteries
to enhance their energy capacity and cycle life.
Under the terms of its agreement with FIU, Lion Battery
Technologies is granted exclusive rights to any intellectual
property developed and will oversee the commercialization of these
advancements. The company is also evaluating several complementary
opportunities to further develop next-generation battery
technologies incorporating PGMs. Lithium-air and lithium-sulfur
batteries offer much higher energy density than current lithium-ion
options, potentially delivering performance improvements by several
orders of magnitude.
The company highlights the transformative potential of these
next-generation batteries, noting their lightweight, high-power
capabilities. This makes them particularly appealing for battery
electric vehicles and a wide range of other applications beyond
transportation. As these technologies scale, they could play a
significant role in the growing market for advanced energy-storage
solutions.
Shaping the Future
The present landscape in mining offers promising opportunities
for investors interested in sectors shaping the future of energy,
technology and infrastructure. With demand on the rise, mining
investments are becoming an integral part of growth-oriented
portfolios. Numerous companies are actively working to present
compelling investment opportunities for those looking to capitalize
on the mining industry's potential.
Endeavour
Silver Corporation (Canada) (NYSE:
EXK) is a mining company focused
on discovering and mining silver, with projects and operations in
three countries, including Mexico, Chile and the United States. The
company is focused on being a leading silver producer
that creates value for its stakeholders by discovering, developing
and operating mines in a sustainable way. Endeavour's business
strategy balances short-term profitability with long-term
investments in exploration and development to extend mine lives and
build new mines to drive future profitability.
Fortuna
Mining Corp. (NYSE:
FSM) is a Canadian mid-tier
precious metals producer established in two of the world's premier
mining regions: Latin America and West Africa. The company operates
five mines as well as an advanced exploration project; these
operations are located in Argentina, Burkina Faso, Côte d'Ivoire,
Mexico, Peru and Senegal. Fortuna
Mining Corp. produces gold and silver and is
committed to generate shared value over the long-term for its
stakeholders through efficient production, environmental
stewardship and social responsibility.
New
Gold Inc. (NYSE
American: NGD) is on a mission to
be the leading intermediate gold producer, driving responsible and
profitable mining in a way that creates sustainable and enduring
value for shareholders as well as the environment. The
diversified company operates
multiple mines, producing byproducts such as silver and copper
while using multiple mining methods and types of deposits.
Sandstorm
Gold Ltd. (NYSE: SAND) holds
royalty rights on mining operations around the world. Rather than
operating mines, Sandstorm Gold provides an upfront payment in
exchange for future revenue or gold production. The result is a
diversified portfolio of mining royalties that provides stable cash
flows and an impressive growth profile because royalty companies
can outperform the underlying metals that their portfolios are
comprised of as well as amplifying investor returns.
In summary, the PGM industry is positioned for growth, driven by
the resilience of auto-sector demand, geopolitical supply risks,
and increased investment interest, all of which reinforce the
strategic importance of these versatile metals.
For more information about Platinum Group Metals, please
visit Platinum
Group Metals Ltd.
About NetworkNewsWire
NetworkNewsWire ("NNW")
is a specialized communications platform with a focus on financial
news and content distribution for private and public companies and
the investment community. It is one of 60+ brands
within the Dynamic
Brand Portfolio @ IBN that
delivers: (1) access to a vast network of
wire solutions via InvestorWire to
efficiently and effectively reach a myriad of target markets,
demographics and diverse industries; (2)
article and editorial
syndication to 5,000+ outlets; (3)
enhanced press
release enhancement to ensure maximum
impact; (4) social
media distribution via IBN to millions of social
media followers; and (5) a full array of
tailored corporate
communications solutions. With broad reach and a
seasoned team of contributing journalists and writers, NNW is
uniquely positioned to best serve private and public companies that
want to reach a wide audience of investors, influencers, consumers,
journalists and the general public. By cutting through the overload
of information in today's market, NNW brings its clients
unparalleled recognition and brand awareness. NNW is where breaking
news, insightful content and actionable information converge.
To receive SMS text alerts from NetworkNewsWire, text
"STOCKS" to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.NetworkNewsWire.com
Please see full terms of use and disclaimers on the
NetworkNewsWire website applicable to all content provided by NNW,
wherever published or re-published: https://www.NetworkNewsWire.com/Disclaimer
NetworkNewsWire
New York, NY
www.NetworkNewsWire.com
212.418.1217 Office
Editor@NetworkNewsWire.com
NetworkNewsWire is powered by IBN
DISCLAIMER: NetworkNewsWire (NNW) is the source of the Article
and content set forth above. References to any issuer other than
the profiled issuer are intended solely to identify industry
participants and do not constitute an endorsement of any issuer and
do not constitute a comparison to the profiled issuer. The
commentary, views and opinions expressed in this release by NNW are
solely those of NNW. Readers of this Article and content agree that
they cannot and will not seek to hold liable NNW for any investment
decisions by their readers or subscribers. NNW is a news
dissemination and financial marketing solutions provider and are
NOT registered broker-dealers/analysts/investment advisers, hold no
investment licenses and may NOT sell, offer to sell or offer to buy
any security.
The Article and content related to the profiled company
represent the personal and subjective views of the Author, and are
subject to change at any time without notice. The information
provided in the Article and the content has been obtained from
sources which the Author believes to be reliable. However, the
Author has not independently verified or otherwise investigated all
such information. None of the Author, NNW, or any of their
respective affiliates, guarantee the accuracy or completeness of
any such information. This Article and content are not, and should
not be regarded as investment advice or as a recommendation
regarding any particular security or course of action; readers are
strongly urged to speak with their own investment advisor and
review all of the profiled issuer's filings made with the
Securities and Exchange Commission before making any investment
decisions and should understand the risks associated with an
investment in the profiled issuer's securities, including, but not
limited to, the complete loss of your investment.
NNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E the Securities Exchange Act of 1934, as amended and
such forward-looking statements are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. "Forward-looking statements" describe future expectations,
plans, results, or strategies and are generally preceded by words
such as "may", "future", "plan" or "planned", "will" or "should",
"expected," "anticipates", "draft", "eventually" or "projected".
You are cautioned that such statements are subject to a multitude
of risks and uncertainties that could cause future circumstances,
events, or results to differ materially from those projected in the
forward-looking statements, including the risks that actual results
may differ materially from those projected in the forward-looking
statements as a result of various factors, and other risks
identified in a company's annual report on Form 10-K or 10-KSB and
other filings made by such company with the Securities and Exchange
Commission. You should consider these factors in evaluating the
forward-looking statements included herein, and not place undue
reliance on such statements. The forward-looking statements in this
release are made as of the date hereof and NNW undertakes no
obligation to update such statements.
New Gold (AMEX:NGD)
Historical Stock Chart
From Oct 2024 to Nov 2024
New Gold (AMEX:NGD)
Historical Stock Chart
From Nov 2023 to Nov 2024
