16 Comments
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Aurel's avatar

Thank you very much for your write up.

I have started a small position in Umicore, a belgian recycle specialist with unique assets trading at historicaly low valuations. They recycle Pt, Pl and Rh and many more.

What would you think about adding a recycle specialist to the portfolio of miners? I know, it is quite a different game, but the prospects of this one seem compeling. I think it could offer a multibagger potential by limited downside potential. Thank you for your answer.

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Hugo Navarro's avatar

I will take a look at it, it has less leverage to PGM prices but it could be interesting.

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Aurel's avatar

Thank you for your answer...I have read The Analyst call from April...I think it provides all the essential information you need...once again, thank you for your work...appreciate it

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ShowMeTheValue's avatar

Loved this. Valterra was the primary reason why I bought £AAL years ago - glad I can now own it in its own right

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JP Buongiorno's avatar

Well done! Excellent write up.

Do you know if there’s a way to play via land/mineral rights players? Have exposure to copper, nickel, gold, hydrogen via OTC mineral rights plays. But looking for precious metals and rare earths.

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Hugo Navarro's avatar

Not that I am aware, you will have to invest through a miner or tailwind processor. Happy you enjoyed the article!

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Emerging Value's avatar

I just own Some South African more quality assets which will ultimately benefit.

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Volo's avatar

It's a great job. You didn't mention Johnson Matthey. Don't you see any potential in it?

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Hugo Navarro's avatar

Do not know about it, any context before I take a look at them?

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Volo's avatar

This is a fairly conservative bet. One of the world’s largest refiners and recyclers of PGMs. It profits from all stages: sourcing, refining, fabrication, and resale. Also offering direct exposure to PGMs demand across auto, hydrogen, and industrial sector

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Hugo Navarro's avatar

Yes, know I remember, it is an interesting opportunity but I prefer to invest via miners, I think there is more upside.

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ShowMeTheValue's avatar

£JMAT is a catalyst manufacturer and PGM trader. It operates on wafer-thin margins (~2%), similar to grocers, but with little cash (£500M on current liabilities of £3B), moderate debt (~ 50% debt/equity), and without the strong cash conversion cycle of a grocer. I don't see that it benefits from a commodity cycle in the same way as a miner, because it is constantly replenishing it's PGM stock - it is an arbitrage play to me, but one without deep cash reserves.

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Hugo Navarro's avatar

Thanks for the idea

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Ben's avatar

Great Analysis, thoroughly enjoyed that.

Any quick thoughts on Eastern Platinum $ELR and Platinum Group Metals $PLG?

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Hugo Navarro's avatar

Do not know about them, some context before I take a look at them?

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Ben's avatar

Just sent you a DM with some analysis

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