You focus on EVs, but made no mention of Hydrogen power, which is the only answer to bridging the gap to achieving net-zero carbon emission targets by 2050. Most of the world is backing the development of hydrogen power and investment is ramping up, see: https://rockandturner.substack.com/p/hydrogen-the-new-oil
Why is this relevant to your article?
It's all about chemistry. To produce hydrogen energy we need catalyzers in the electrolysis process. Platinum is a catalyzer and, being a rare commodity, will inevitably appreciate in value as demand from electrolyzer manufacturers ramps up.
If you want exposure to platinum-group metals (PGMs), including Platinum and Palladium, but also Rhodium, Iridium and others, I highly recommend Sylvania Platinum (SLP), listed in London. It is a market leading platinum group metals miner.
The valuation is currently very attractive because of a number of issues that were entirely beyond the control of the very well managed company.
One such issue is the power utility failures across the region of South Africa in which the mines are located - something being dealt with through improved power infrastructure, but Sylvania are also now using their own generators for when the power grid fails.
Another issue relates to the cyclicality of the commodity markets. Platinum group metals are currently trading well below peak levels due to geo-political issues which will resolve in due course.
The great part about market downturns are that they tend to flush out the operators with poor balance sheets and low levels of efficiency. It is like the commercial version of Darwin's survival of the fittest. As we emerge from the PGM winter, the stronger players will emerge with greater market share. Sylvania Platinum is one such company, trading at a fraction of its forward discounted cash flow valuation (disclosure: I have a position in Sylvania Platinum).
Thanks for all the information, James. I haven't talked about hydrogen power because the article primarily focused on palladium, and I’m reserving that topic for when I write about platinum. Platinum has much stronger fundamentals in the long term, but palladium offers greater short-term upside due to the catalysts mentioned in the article. Combining both could be a great investment strategy.
I’ve also taken a brief look at Sylvania, which seems to be one of the few investable miners in the market right now, as many other miners are facing challenges. I plan to explore this in more detail in a future article.
Thanks again for all the information, James. I highly recommend my readers subscribe to your Substack as it contains excellent insights.
Great write up as usual Hugo!
You focus on EVs, but made no mention of Hydrogen power, which is the only answer to bridging the gap to achieving net-zero carbon emission targets by 2050. Most of the world is backing the development of hydrogen power and investment is ramping up, see: https://rockandturner.substack.com/p/hydrogen-the-new-oil
Why is this relevant to your article?
It's all about chemistry. To produce hydrogen energy we need catalyzers in the electrolysis process. Platinum is a catalyzer and, being a rare commodity, will inevitably appreciate in value as demand from electrolyzer manufacturers ramps up.
If you want exposure to platinum-group metals (PGMs), including Platinum and Palladium, but also Rhodium, Iridium and others, I highly recommend Sylvania Platinum (SLP), listed in London. It is a market leading platinum group metals miner.
The valuation is currently very attractive because of a number of issues that were entirely beyond the control of the very well managed company.
One such issue is the power utility failures across the region of South Africa in which the mines are located - something being dealt with through improved power infrastructure, but Sylvania are also now using their own generators for when the power grid fails.
Another issue relates to the cyclicality of the commodity markets. Platinum group metals are currently trading well below peak levels due to geo-political issues which will resolve in due course.
The great part about market downturns are that they tend to flush out the operators with poor balance sheets and low levels of efficiency. It is like the commercial version of Darwin's survival of the fittest. As we emerge from the PGM winter, the stronger players will emerge with greater market share. Sylvania Platinum is one such company, trading at a fraction of its forward discounted cash flow valuation (disclosure: I have a position in Sylvania Platinum).
Food for thought.
Thanks for all the information, James. I haven't talked about hydrogen power because the article primarily focused on palladium, and I’m reserving that topic for when I write about platinum. Platinum has much stronger fundamentals in the long term, but palladium offers greater short-term upside due to the catalysts mentioned in the article. Combining both could be a great investment strategy.
I’ve also taken a brief look at Sylvania, which seems to be one of the few investable miners in the market right now, as many other miners are facing challenges. I plan to explore this in more detail in a future article.
Thanks again for all the information, James. I highly recommend my readers subscribe to your Substack as it contains excellent insights.