Platinum has now pushed over $2000 an ounce. Rhodium has pushed thru $8500 an ounce. To say these metals have been on fire would be an understatement. The increase in these two metals has been because of power and labor issues in South Africa. The biggest beneficiaries of the issues in South Africa have been the producers in North America and Russia. While North America and Russia deposits "usually" has more palladium than platinum and rhodium in its deposits (note: palladium has also done well) they are still benefiting greatly from this price boom.
Companies such as North American Palladium (PAL) and Stillwater Mining (SWC)
have seen resurgence in their stock price over the past couple of
months. While those two companies have had a great run recently, I
always like to look at companies who have operations adjacent to these
companies and see if the surronding companies also have decent
prospects but have not participated in the run-up. I'll introduce two
explorers that surround Stillwater Mining that might be of interest in
Beartooth Platinum (BTP.V)
has a land position (5976 hectares ) surrounding Stillwater Mining
Company's two operating mines in Montana. Beartooth also has a joint
venture with Premium Exploration Inc. (PEM.V)
on additional Stillwater claims. These properties have reported decent
platinum, palladium, and rhodium grades (2006 drill results- Release 1 , Release 2 with Rhodium Results). On October 17, 2007, Beartooth Platinum announced their completion of their 2007 drill program in Montana. Assay results from the 2007 drill program should be out in the very near future.
If the grades are similar to that of the 2006 drill program, Beartooth
Platinum and Premium Exploration's stock price should appreciate. Also
with good drill results, Stillwater Mining might look into owning a
piece in both of those companies.
Beartooth Platinum and Premium
Exploration aren't one property companies either. Beartooth is
currently exploring a PGM project in South Africa and Premium
Exploration has some decent looking gold and silver projects in Mexico
and the United States..
PGM metals are hot right now, and even
though prices might come off from these high levels once the South
Africa situation is ironed out, companies that can find high-grade PGM
projects outside of South Africa will be in high demand.
Disclosure: I have a position in Beartooth Platinum Stock.