Finding a company that is about to make the jump from being considered a “small-fry” level company to a mid-level company is the trick to making a nice profit. The opportunity in this regard is not often found or seen. If it can be found, however, profit may be had. Commodity investments in this area are more risky as price changes can move the equation overnight. In any event, there is some risk but also profit if the jump is made.
North American Palladium Ltd., a base metals exploration and development company, works to find, develop and exploit bases metals primarily in Canada. The company’s main focus is within the platinum group but also in associated base metals within a platinum/palladium deposit. These base metals include: gold, silver and copper.
The company’s primary project is located near Thunder Bay Ontario, Canada. It is a varied project consisting of underground mining, open pit mining and drill testing on an 8,600 hectare plot. In most respects the project is testing and producing solid results. At present, the project appears to be focusing on the open pit possibilities of mining where it seems higher margins could be achieved. In any respect, drill samples have been returned to demonstrate higher quality deposits of Palladium and other base metals at this primary site. Prior to a commodity price variation in 2008, this deposit produced 250,000 oz. of Palladium, 20,000 oz. of Platinum and 20,000 oz. of gold. The project has since been restarted and is producing to expectation.
As the company has been moving to exploit the supply/demand aspects of Palladium it should be noted that it is increasingly moving to advance its work in the gold mining area. As has been pointed out in past mining stock opportunities, getting the product out of the ground quickly and inexpensively is the real name of the game. North American Palladium does seem to have made the turn in this respect and will mostly likely benefit as a result. If a point could be identified where a company makes a transition from a smaller company to a mid-tier company, one might suggest that North American Palladium is very close to being there.