Given mass global unemployment due to COVID-19, unparalleled intervention by central banks in the markets, and increasing American political chaos, it has become nearly impossible to invest without wondering if there is any sensible way to mitigate this seemingly endless risk.
That is why I’m looking for investments that can potentially move the needle no matter what’s happening on CNN.
It’s a quest that has taken me around the world, and back in time. From observing a team in northern Canada working to unearth one of the world’s rarest and highly sought after precious metals, to witnessing the aftermath of a massacre of miners in Africa nearly a decade ago, my cameras caught, exclusively for this film, the inner workings of a global economy few ever see.
Palladium is more valuable than gold and 30 times rarer.
Mainly used in catalytic converters, the device used in vehicles to reduce vehicle emissions, palladium has seen almost a 100% price jump over the last 12 months – despite the pandemic-induced economic mayhem.
Never in recent times have any of the four precious metals (Gold, silver, palladium and platinum) seen such explosive growth. What’s more, the experts never saw it coming.
Industry analysts failed in forecasting palladium when they projected it declining from $1,400 to $1,300 ounce by the end of 2020.1
Instead, palladium kept soaring and peaked at $2,800…over $1,000 higher than gold’s current high.
While experts licked their wounds, palladium investors rushed to take profits. That triggered a recent correction and a huge opportunity for those who move quickly.
Here’s what you can expect and more important, what you can act upon.
Palladium’s rising price is the result of three interconnected drivers:
- Palladium is deemed essential for the evolution of green energy vehicles as it is the preferred element for gasoline light duty vehicles and hybrids.2 Today, about 90% of the global supply of Palladium goes into emission control systems. With green vehicle sales soaring over the coming decades, the pressure on global palladium supplies is unlikely to abate.Bank of America Merrill Lynch says carmakers – the largest customers of palladium – will struggle to find enough of the precious metal as “global supply is set to remain flat.”
- On the supply side, industry analysts are forecasting a substantial shortfall of palladium through year end. Bloomberg reported that, “…UBS Group AG forecasts a deficit of about 1 million ounces in 2021, which would be 10th straight annual shortfall.”
- Finally, two of the earth’s three largest palladium resources are located in jurisdictions fraught with risk, South Africa and Russia.
It is this opportunity that has attracted mining CEO Wayne Tisdale. He has built his career finding underdeveloped mining assets, strategically allocating money, geology and time to their enhancement, and then selling them on for multiples of what he paid for them.
And as you’ll see below, he has a proven track record for sniffing out assets that accrue enormous shareholder gains.
#1: A 15,700% gainer
In 2005, Tisdale’s team launched the company, Rainy River, a gold exploration company that initially traded around 25¢ a share with a market cap of around $7 million. The company’s exploration program went on to prove a substantial 43-101 compliant gold resource that propelled shareholder value to a market cap of $1.1. billion. Early investors at 25¢ walked away with an astonishing 157-fold leap in shareholder value.
The company that bought out Rainy River is now producing 200,000 ounces of gold and 280,000 ounces of silver annually.
#2: A leap from $8 million to $400 million
The soaring electric car market drove another exceptional opportunity for Tisdale and the shareholders. Early investors got in to the second company, U.S. Cobalt, at 20¢/share in February 2017, setting the benchmark capitalization at $8 million. Within one year U.S. Cobalt had achieved a peak market cap of $149 million. Over 1,850% growth.
And it didn’t stop there.
Thirteen months later, U.S. Cobalt was acquired for an enterprise value of over $400 million.
Tisdale has done this several times over his career, selling five companies with an aggregate enterprise value north of $1 billion.
Acting on a hunch that the shortage of palladium would only become more acute, a year ago Tisdale connected with prospector Richard Sutcliffe. Sutcliffe helped find one of only two operating palladium mines in the Americas, the Lac Des Iles mine near Thunder Bay, Ontario. It was sold last year to Implats for $1 billion.
Using his knowledge of palladium, Sutcliffe reasoned there could be another deposit near Massey, Ontario – a small town an hour’s drive from Sudbury, the mining capital of Canada.
Sutcliffe had previously worked on what is now referred to as the East Bull Project, proving up a 523,000 ounce palladium resource. He then teamed up with Tisdale to form Canadian Palladium Resources (OTCQB: DCNNFOTCQB: DCNNF, CSE: BULLCSE: BULL, FRANKFURT:DCR1).
To put those numbers in perspective, 523,000 ounces equates to over 90% of the above referenced palladium supply deficit!
At today’s palladium price of $2,800/oz, that projects to over $1.4 billion dollars in produced palladium.
What’s more…there could be much more than that in the ground. As exploration advances, Canadian Palladium Resources (OTCQB: DCNNF, CSE: BULL, FRANKFURT:DCR1) projects that it could ultimately document a palladium resource of two million ounces, making it one of the largest, palladium-focused mines in the world today.
All spring the company has been drilling, with a view to tripling the current resource. The hope is to ultimately sell. “My goal is to do what we did with U.S. Cobalt,” Tisdale told me, “to sell it insitu to a company that can take it to the next level.”
As Michelle Gahagan, one of Canadian Palladium’s directors, put it to me, “The point is to get it to the point where there’s an attractive resource and somebody will come along and take it to the next stage.”
The company closed a $3.4 million financing at the end of last year that will go towards moving East Bull closer to the finish line.
Tisdale believes that could be sooner than later.
“I would think we should be sold by a year from today.”
Watch my film above and decide for yourself if you think Tisdale’s assessment hits the mark. One thing is for certain: the outlook for palladium remains bullish.
1https://investingnews.com/daily/resource-investing/precious-metals-investing/palladium-investing/palladium-price-update/#:~:text=In%20terms%20of%20price%20predictions%2C%20panelists%20polled%20by,palladium%20price%20for%20Q3%202019%20will%20be%20US%241%2C400.
2https://www.kitco.com/commentaries/2019-12-20/Clean-energy-might-be-the-future-but-there-is-no-game-plan-how-the-PGMs-stand-to-break-out.html
3https://investingnews.com/daily/resource-investing/precious-metals-investing/palladium-investing/metals-focus-more-gains-palladium-2019/
Cautionary note regarding forward-looking statements
Certain statements made, and information contained herein may constitute “forward looking information” and “forward looking statements” within the meaning of applicable Canadian and United States securities legislation. These statements and information are based on facts currently available to the Company and there is no assurance that actual results will meet management’s expectations. Forward-looking statements and information may be identified by such terms as “anticipates”, “believes”, “targets”, “estimates”, “plans”, “expects”, “may”, “will”, “could” or “would”. Forward-looking statements and information contained herein are based on certain factors and assumptions regarding, among other things, the estimation of mineral resources and reserves, the realization of resource and reserve estimates, metal prices, taxation, the estimation, timing and amount of future exploration and development, capital and operating costs, the availability of financing, the receipt of regulatory approvals, environmental risks, title disputes and other matters. While the Company considers its assumptions to be reasonable as of the date hereof, forward-looking statements and information are not guarantees of future performance and readers should not place undue importance on such statements as actual events and results may differ materially from those described herein. The Company does not undertake to update any forward-looking statements or information except as may be required by applicable securities laws.
Qualified Persons .
In accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects, Gary Clark, P.Geo. Director, is the Qualified Person for the Company and has validated and approved the technical and scientific content of this video. The Company strictly adheres to CIM Best Practices Guidelines in conducting, documenting, and reporting its activities on its various exploration projects.
Disclaimer. Roth Multimedia executive producer Jonathan Roth is an online financial content producer. He is focused on researching and marketing resource and other public companies. Nothing in this video should be construed as a solicitation to buy or sell any securities mentioned anywhere in this video. This article is intended for informational and entertainment purposes only! Be advised Jonathan Roth is not a registered broker-dealer or financial advisor. Before investing in any securities, you should consult with your financial advisor and a registered broker-dealer. Never, ever, make an investment based solely on what you read in an online newsletter or video, including Jonathan Roth’s online video, especially if the investment involves a small, thinly-traded company that isn’t well known. Jonathan Roth’s past performance is not indicative of future results and should not be used as a reason to purchase any stocks mentioned in his videos or on this website. In many cases Jonathan Roth owns shares in the companies he features. For those reasons, please be aware that Jonathan Roth can be considered extremely biased in regards to the companies he writes about and features in his videos. He was paid for production of this video and has purchased shares of Canadian Palladium. Because Jonathan Roth has been paid by Canadian Palladium, there is an inherent conflict of interest involved that may influence his perspective on Canadian Palladium. This is why you should conduct extensive due diligence as well as seek the advice of your financial advisor and a registered broker-dealer before investing in any securities. Jonathan Roth may purchase more shares of Canadian Palladium for the purpose of selling them for his own profit and will buy or sell at any time without notice to anyone, including readers/viewers of this video. Jonathan Roth shall not be liable for any damages, losses, or costs of any kind or type arising out of or in any way connected with the use of this video. You should independently investigate and fully understand all risks before investing. When investing in speculative stocks, it is possible to lose your entire investment. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction, and should only be made after such person has consulted a registered financial advisor and conducted thorough due diligence. Information in this report has been obtained from sources considered to be reliable, but we do not guarantee that they are accurate or complete. Our views and opinions in this video are our own views and are based on information that we have received, which we assumed to be reliable. We do not guarantee that any of the companies mentioned in this video (specifically Canadian Palladium) will perform as we expect, and any comparisons we have made to other companies may not be valid or come into effect. Jonathan Roth does not undertake any obligation to publicly update or revise any statements made in this video and article.
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