Palladium Price Sensitivity

Excellent news from Generation Mining (GENM.C) which announced it has received conditional approval from the Toronto Stock Exchange to list on that exchange. There still are a few minor steps for Generation to take (including delisting from the CSE) but this should be easy enough to complete so we expect to hear an updated timeline for the up-listing in the near future.

This is a good move for Generation Mining as although most North Americans have access to the CSE, most foreign brokers (European, New Zealand,…) don’t allow trading on that specific exchange and several potential investors aren’t too keen on buying stock on a secondary exchange. Perhaps this also explains a part of the underperformance of Generation Mining as despite the high palladium price (still trading above $1800/oz), the company’s share price has failed to move.

Disappointing, but the quality of the asset obviously remains unchanged. As you can read in our recent report, the after-tax NPV5% of the Marathon project is about C$1.5B using the current palladium price.

Disclosure: The author has a long position in Generation Mining. Generation is a sponsor of the website.

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