After Christopher Columbus discovered Haiti in the 16th century, Spaniards enslaved the Arawak Indians and forced them to mine gold. Gold and Haiti are not strangers to one another. Geologists have discovered rich mining veins in the country’s northeast mountains containing gold, silver, and copper. The company has had problems with miner suspensions and employee challenges regarding wages.The country of Haiti may suddenly and drastically reverse their GDP standing in the worldwide economy. It’s also seen its share price soar in the past year, but it’s slipping now. Impala Platinum (JSE: IMP, OTCMKTS: IMPUY) is a South African miner that produces iridium as a by-product. It also produces chemical compounds and industrial products containing PGMs. PGM Services comprises PGM refining, recycling and trading activities. This supports its Clean Air division with the security of metal supply during volatile markets. PGM Services is Johnson Matthey’s refinery division. Its price-to-earnings ratio (P/E) is 57 and it offers shareholders a dividend yield of 0.02%. The Johnson Matthey share price has risen over the past year and the company now has a market cap of £5.9 billion. Johnson Matthey (LON: JMAT) is a refiner of PGMs. The market is illiquid which helps prices rise when supply is low. Other platinum group metals (PGMs) have also experienced supply shortages and soaring prices. As it’s rare, it’s a by-product, rather than a focus on any miner’s portfolio and raising production is not simple or quick. Comparatively, palladium output is around 10 million ounces and platinum around 8 million. That means production amounts to approximately 250,000 ounces annually. The stronger demand outlook is based on expectations of an economic rebound, as well as anticipation that demand for hydrogen will increase use of iridium.Īlthough the metal is useful, its market is fairly small. How can investors get exposure to Iridium? It also processes material for other miners, causing supply chain issues for several companies. This makes Anglo American Platinum a major producer. South Africa produces 80-85% of the world’s iridium. “Iridium has the longest processing time of all the PGMs, so supply is set to be impacted (by the Amplats closure) well into 2021, providing support for sustained high prices,” Unfortunately, this closure led to an iridium supply shortage, just as demand was growing.Īn analyst at German technology group Heraeus said: The facility is now closed for a full rebuild in 2021. In November South African based, Anglo American Platinum (JSE: AMS, OTCMKTS: NGLOY), had to close its plant due to a series of water leaks. Anglo American Platinum creates Iridium shortages Iridium is also used in the crystal making process because it can withstand extreme heat.īest of all, it’s being used as a catalyst in electrolysis to split water into oxygen and hydrogen, which is gaining massive traction as the world pins its hopes on green hydrogen as a clean solution to climate change. In fact, iridium spark plugs are thought to last 25% longer than platinum spark plugs. Historically, Fountain pens were tipped with iridium, but that no longer seems to be the case.īeing much harder and stronger than platinum, with an extreme melting point, it’s a very useful element in creating spark plugs. That disrupts ecosystems and puts species at risk of extinction. According to Wikipedia, ballast water spreads approximately 7000 living species to new habitats around the planet. It chlorinates ballast water in shipping, which stops vessels transporting aquatic creatures. Reason being, it’s vital for many industries. In 2016, Iridium was trading at around $500 an ounce, so it’s been a slow burning riser for a few years. But this rally didn’t just start in December. Platinum is another metal with a price rise in 2020, but as can be seen in the chart, demand for iridium wins by far.
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