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West where a resource upgrade in the vicin- initial mining inventory for scoping study pur- directly to a refiner. We don’t want to go
ity of 1.5-2.6 moz 3E PGM is targeted for Q2 poses is planned for the second half of 2021. down the smelting path as the capex will get
2021. It is not Podium’s intention to pursue an blown out for a small company like us,” Dodd
Current resources at Park Reefs West energy intense, high labour South African said.
total 1.14 moz platinum-palladium and gold platinum operating scenario in WA, with the “There has been a lot of migration with
plus 37,300t copper within 100m of surface company instead keen on producing a high- very talented and skilled metallurgists and
and across 6.9km of strike. quality concentrate to sell on to potential re- engineers from South Africa [in Perth] so we
Following the resource upgrade, drill- finers in Korea, Japan and or Europe. have been lucky enough to meet a number
ing will continue across the full 15km strike While opting to pursue an Australian-style of those people. But you can never go past
length in addition to resource extension drill- of operation at Parks Reef – high-tonnage, the quality of the Australian mining sector,
ing down to 200m, focused on the broader low-grade – Podium has been fortunate there are some seriously smart people here
exploration target of 3.1-5.8 moz 3E PGM at enough to harness skills from overseas at its that find an answer to the problem.”
Parks Reef. flagship asset. – Mark Andrews
Metallurgical test work and process de- “It is all about the metallurgy and we want
sign work will be happening in parallel, as an to produce a high-value concentrate to sell

Revving up PGM prices

ising auto production as vehicle mak- in deficit and one said the market would be end of next year.”
Rers tentatively recover from the corona- balanced. A similar Reuters poll three months ago
virus shock will lift prices of platinum and Around 80% of palladium in consumed returned forecasts for palladium to aver-
palladium, but both metals used in vehicle in vehicle exhausts, where it neutralises age $US2,050/oz in 2020 and $US2,138/
exhausts will struggle to score significant harmful emissions. Platinum is also used oz in 2021.
gains, a recent Reuters poll showed. for this, although more for diesel vehicles, For platinum the averages were $US832/
Palladium, which hit a record high of which have lost market share. oz in 2020 and $US913/oz in 2021.
$US2,875.50/oz in February and now Platinum is also used in jewellery and – Brijesh Patel and Peter Hobson,
trades around $US2,300, will average bought as an investment. Reuters
$US2,188 in 2020 and $US2,317 in 2021, Three analysts forecast platinum would
supported by supply shortages, according remain in surplus
to the median responses of 32 analysts and two predicted
and traders. deficits. The tight-
Platinum, which in March touched ening so far has
$US558/oz, its lowest since 2002, now mainly been due
trades at around $US870, and could to investors buying
flip into deficit. It is expected to average ETFs backed with
$US876 in 2020 and $US950/oz in 2021. platinum bars.
That means platinum could this year “The supply-
snap an eight-year run of falling average demand balance
prices and palladium will see its fourth and needs to tighten
fifth consecutive annual gains without ETF inflows
“Rebounding auto sales, tight mine sup- to recapture the
ply and little indication of new sources of $US1000/oz [level]
supply have helped palladium rise,” ETFS on a sustained ba-
Capital analyst Nitesh Shah said. “Con- sis,” Standard Char-
tinued tightness could see record prices tered analyst Suki
regained.” Cooper said.
Of the analysts who forecast supply and “We believe [this]
demand, four said palladium would remain is likely towards the

The conference proceedings

of the 2020 Australian
Nickel Conference is available

$60 (inc.GST)

Phone (+61) 8 9321 0355
6 October 2020 or email christine@paydirt.com.au
Perth, Western Australia

aUSTRaLIa’S PaYDIRT DeCeMBeR 2020 - JaNUaRY 2021 Page 23