I'm mildly bullish on SWC here but don't hold a long position yet:
You should know that Stillwater Mining Company holds claim to the only significant source of platinum and palladium outside of South Africa and Russia. The two metals have applications in the automotive, electronics, and jewelry industries. SWC produces the precious metals at the J-M Reef mineralized zone in southern Montana, where it operates the Stillwater Mine, the East Boulder exploratory mine, and a smelter. The company has proven and probable reserves of about 36 million tons of ore in a ratio of about three parts palladium to one part platinum. It produces about 330,000 ounces of palladium and 100,000 ounces of platinum annually. By-product metals include rhodium, gold, silver, nickel, and copper.
I expect SWC to become a very strong buy by the end of August. It is on my radar screen here. |
