Can someone tell me which of the SA platinum producers has the highest % palladium production or is the ratio between the two metals fairly constant at the various mines? Seems as if the palladium price is expected to outperform other metals over the next few months which may favour such mines, or not?
All Bushveld located Platinum Mines in SA extract a basket of metals, namely platinum, palladium, rhodium, gold, nickel,& copper. The ratios are variable dependent on the location of the mine, however in general: Platinum 45 - 60%, Palladium, 20 - 50%, Rhodium 3 - 10%, Gold 1 - 5% The higher palladium percentages tend to be associated with mines in the north of the complex, so AP's Mogalakwena, Lonmin's Limpopo mines produce more Palladium per ton of rock than mines in the south near Rustenburg. The ratio also varies per reef on each mine...bottom line is that there is no single Palladium dominated mine in SA. Now in Russia...that's another story
Unfortunately (or fortunately,) the highest palladium ratios can be found on the east limb producers which are regarded as the poorer mines. Zimbabwean mines have an even higher palladium ratio. The west limb of the bushveld complex has a higher platinum content (and rhodium) and therefore a more desirable profile with a higher realised cost per ounce. To invest in palladium you need to look at an ETF. IMO
Correct.To put it in perspective palladium at one time spiked to over $1000 per ounce but is now around $400. It will always only be in demand as long as it is cheaper than platinum and gold(yes gold,i have not lost my marbles ,as it can be used in catylitic converters as well).More palladium is used in diesel engines but in hotter burning petrol engines there is nothing to beat platinum.I don;t expect its price will move up that rapidly even if there is thrifting of some platinum in cars.
Barry - I think it's the other way around. Pt is used for diesel engines, hence it's price rise corresponding to the development of new generation turbo diesel engines since the 90's. Pd used for petrol - reason that it's price is so stable is that the Russians have mega amounts of it, and a stockpile of unknown proportions too.