jaguar2001

Good to see Franconia mentioned in Toronto Financial Post. "This is a signal to go and find more of this stuff because we'll need it down the line," said Brian Gavin, chief executive of platinum explorer Franconia Minerals Corp. A number of exploration plays like Franconia and Marathon PGM Corp. are pushing projects in North America towards production, but there are no primary platinum mines on the continent, Mr. Jones said http://www.financialpost.com/trading_desk/....html?id=353621 Platinum, Palladium Are Hot Both Are Up 50%; Play crucial role in the auto industry Peter Koven, Financial Post Published: Wednesday, March 05, 2008 While gold and base metals get most of the attention, platinum and palladium have emerged as a hot topic at this year's PDAC conference as the industry digests massive price increases with the possibility of even more on the horizon. The two precious metals have been on a tear all year, with prices up about 50% for each, including a record high for platinum yesterday of US$2,277.50 an ounce. Those gains accelerated in the last week amid blackouts and a worsening power crisis in South Africa, which is responsible for nearly 80% of the world's platinum and more than 30% of its palladium. The sudden leap in prices serves as a stark reminder of the tightness of many metal markets -- and how much the world relies on a small number of sources for many of the secondary metals. "This is a signal to go and find more of this stuff because we'll need it down the line," said Brian Gavin, chief executive of platinum explorer Franconia Minerals Corp. The markets for platinum group metals (or PGMs) are very small, with annual consumption of both platinum and palladium below 10 million ounces. But they play a crucial role in the auto industry because of their use in catalytic converters to cut down on emissions. As a result, they are benefiting from the growth in emerging markets as more and more Chinese and Indians buy cars, and automakers take steps to reduce emissions. At the same time, they are still precious metals and, like gold, have seen their prices rise on increased demand from jewellery manufacturers and investors looking for an alternative asset class. Exchange-traded funds have continued to be aggressive buyers at elevated prices. And jewellery demand has been surprisingly resilient despite those increases. "You really have to wonder whether platinum jewellery has reached the 'Gucci Bag' effect where the more they charge for it, the more people like it," said Mike Jones, chief executive of Platinum Group Metals Ltd., which operates in South Africa. He has seen the power crunch in South Africa firsthand. Escom, the beleaguered state utility, is forcing producers to cut usage to 90% of prior levels, which can have a disproportionately large effect on production. The big three producers (Anglo Platinum Ltd., Impala Platinum and Lonmin PLC) are all working in very close proximity and the market is worried about their ability to maintain supply. "There's no commodity like platinum in terms of geographic focus," Mr. Jones said. And there may not be any relief in sight. In a well-attended talk on platinum and palladium on the conference's first day, HSBC Securities analyst Victor Flores said his models suggested that while palladium is likely to be in surplus at the end of the year, platinum could be in a deficit. The palladium situation is thought to be not as bad because of higher inventories and less geographic concentration, but auto and ETF demand for both are big wild cards. "We believe the behaviour of two very different end users -- investors and auto companies -- will drive PGM prices this year. Negative elasticity of demand, due respectively to speculative demand and supply concerns, could lead to further price spikes," he said. The sudden interest in platinum and palladium also highlights how few companies are focused on those metals. After the "Big Three" South African producers and Russia's Norilsk Nickel, there is a big drop-off before you get to companies like North American Palladium Ltd., which supplies about 5% of the global palladium market. A number of exploration plays like Franconia and Marathon PGM Corp. are pushing projects in North America towards production, but there are no primary platinum mines on the continent, Mr. Jones said.

Platinum and Palladium – Great for Franconia Minerals JPMorgan sets $26 price target for Stillwater on palladium strength. http://www.mineweb.com/mineweb/view/minewe...4&sn=Detail Well, how does that concern companies in the Duluth District such as Franconia, Polymet and Duluth Metals? There are supply concerns in South Africa that are driving the price of PGMs a lot higher. (Platinum around $2150/oz and Palladium around $510/oz) And, we are seeing more interest in North American miners. Stillwater http://www.stillwatermining.com/ are the only US producer of Palladium and Platinum – understand that they mine, per year, around 600,000 ozs PGMS. Polymet should become the second producer followed by Franconia and Duluth. Since I am more familiar with Franconia: Franconia, http://www.franconiaminerals.com/s/BirchLake.asp , plan “combined annual production of 74 million lbs copper, 19 million lbs nickel, 2.9 million lbs cobalt, 7,400 oz gold, 33,000 oz platinum and 68,000 oz palladium over a 26-year mine life at Birch Lake and a 24-year mine life at Maturi” That’s around 100,000 ozs per year (with I believe similar ratios to Stillwater) Stillwater market cap is around $1.7 Billion compared to Franconia’s $91 Million ie Stillwater is around 20 times bigger than Franconia but it’s PGM production is only 6 times bigger (than FRA potential) ! Now, Franconia’s main value is Nickel/ Copper. The PGMs only account for around 15% of the total. That’s remarkable. Using only Franconia’s PGM and Stillwater as an example, FRA could once it is in similar production have a market cap of around $300 million – for PGM metals alone. Eventually, the market should waken up to the PGM potential of the Duluth District companies.

New thread on adfvn looks good but please add SLV Sylvania Resources ta

guess it's my fault for mentioning them on this platinum thread, in response to riggers queries regarding other companies of course they are gold/ silver exploration but have also got involved recently in nickel sorry about that, but they should be removed from here and also your advfn thread cheers

Hi Drbubb Have been pushing Gold Summit recently but intrigued that it's found its way onto your earlier post on platinum companies? GSM.v- : Gold Summit Corp.... : C$0.135 / CDNX - 1497967 Any reason for that? Thanks jaguar2001

Riggers Take a look at Gold Summit - GSM on TSX-V May get a thread going here to see if there is any interest Already have one at adfvn http://www.advfn.com/cmn/fbb/thread.php3?id=14894663 Where again there is a lively discussion. But that's the way it seems to be with me. Pick baggers that no one else has heard of till they take off...

Hi Riggers, Thanks for your interest - will do my best! jaguar2001

Riggers, MGU is basically a shell that the SLV/DWY team will reverse deals into. When I invested, no one could tell me anything about the company! They did not even have a web site. But the big boys are on board there and these guys like their reputations. Management is excited ---- Good luck jaguar2001

Magnum? Take a look at my ADVFN thread - has been a bit lonely there Magnum - Sylvania and Dwyka's Baby Sister ASX:MGU (MGU) http://www.advfn.com/cmn/fbb/thread.php3?id=14923690 Why some people don't get in now at around 20 cents and they prefer to wait till this comes to London (planned) at much higher prices beats me! jaguar2001/ smilewithme