I first wrote about a company named 21C last May. The company has a pair of "green energy" projects, palladium in Canada and cobalt/copper in Europe. And easily had the worse name of any company I ever knew. I hated the name 21C. What exactly did that mean?
Well, no thanks to me, the company changed the name to one of the very best names I have ever heard, especially valuable right now. They are now Canadian Palladium Resources Inc. (BULL:CSE; DCNNF:OTCQB) with the same symbol, BULL-V. Good timing as palladium went on a tear last week with prices touching $2602 USD before settling down. I would be quite comfortable with a correction; I hate it when any commodity goes curvilinear.
South Africa has gone stupid and socialist. What the government charges for electricity is lower than the cost of production. The mines across the country are getting killed with a constant lack of power. South Africa produces 78% of the world's platinum and about 45% of the world's production of palladium. We easily could have a multi-year shortage of both metals. Right now the near contracts for palladium carry a premium to the distant months indicating a severe shortage of the metal.
There are only a few juniors working in the platinum palladium space. Palladium has had a hell of a run lately while platinum has been about as exciting as watching paint dry. Personally I'd like to see the entire precious metals marketplace have a nice scary correction, bottoms are easier to see. But month after month the metals just keep climbing.
I love the fact that 21C changed their name to something highly meaningful. Just knowing what the company is about will bring in new buyers in what is a small area of the metals.
Canadian Palladium is well cashed up, just having completed a $4 million dollar placement as well as having Eric Sprott as a major investor. In the recent private placement the company issued 33 million shares and 33 millions warrants exerciseable at $0.18 which are already at the money. Should the price continue higher, that would bring in an additional $6 million which would pay for a lot more drilling. Days ago the company announced a 10,000 meter drill program designed to expand an existing 523,000 Pd ounce equivalent resource. Drilling has commenced.
With an $18 million market cap and $1.1 billion worth of metal in an inferred resource, Canadian Palladium is well positioned for an advance on any real success in their ongoing drill program. I don't know if the palladium shortage reflects a real lack of physical metal but for now and at today's price for palladium BULL looks like a good bet if you like the numbers on the metal.
Canadian Palladium is an advertiser and I have participated in a private placement in the past. Naturally that makes me biased so do your own due diligence.
Canadian Palladium
BULL-C $0.18 (Feb 12, 2020)
DCNNF-OTCQB 100.3 million shares
Canadian Palladium Website.
Bob Moriarty founded 321gold.com, with his late wife, Barbara Moriarty, more than 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.
[NLINSERT]Disclosure:
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Canadian Palladium. My company has a financial relationship with the following companies mentioned in this article: Canadian Palladium is an advertiser on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
