Palladium One Mining Inc (CVE: PDM) Company Overview
Symbol(s): CVE: PDM, OTC: NMTLF
Industry: Palladium Mining
I mentioned about Palladium One Mining Inc in my earlier article “Three Palladium Stocks to Watch as Palladium Hits Record High of $2,139” when it was trading at 17 cents. Palladium spot price reached a record high of $2500/oz on Friday, Jan 17, 2020, showing an astounding gain of 34% in just the first eleven trading days of 2020. There could be still more upside to the palladium and palladium stocks since the rally appears to be driven by supply-demand fundamentals rather than excessive speculation in the futures market.
Palladium One Mining Inc. (formerly Nickel One Resources) is a Platinum Group Element (PGE) Nickel-Copper exploration and development Company. Its assets consist of the Läntinen Koillismaa PGE-Nickel-Copper Project, located in north-central Finland and the Tyko Nickel-Copper, PGE Property near Marathon, Ontario, Canada.
Mr. Eric Sprott, as stated in the news release on December 2, 2019, beneficially owns and controls 21,300,000 Common Shares and 16,300,000 Common Share purchase warrants representing 19.4 % of the issued and outstanding common shares of the company on a non-diluted basis and 29.8 % on a partially diluted basis assuming the exercise of all such warrants.
The company has a total of 1.9 million ounces of gold equivalent resources at the metals prices on January 17, 2020. The current enterprise value per gold equivalent ounce of US$7.87 (see the valuation tab for details) makes Palladium One Mining Inc one of the most undervalued mining stocks. Additionally, the investment by Mr. Sprott makes this stock more attractive.
Palladium One Mining’s share price reached 52-weeks high to 20 cents on January 2nd, 2020, a whopping 300% gain from its 52-weeks low on October 15, 2019. The company’s share price closed at 21 cents on January 17th, 2020. It had a market cap of $23.35 M with 111.17 million outstanding shares. Watching the current trading pattern, I think the shares of Palladium One could see another 60% gain from the current price in the short term.
Läntinen Koillismaa PGE-Nickel-Copper Project
The palladium dominant Läntinen Koillismaa (LK) PGE-Ni-Cu project is located in north-central Finland, approximately 40 km north of the company’s exploration office in the town of Taivalkoski. The LK Project is 100% owned by Palladium One Mining Inc.
The LK Project’s 2,485.3 hectares Exploration Permit applications are divided into two groups; the Kaukua Group consisting of the Kaukua and Murtolampi targets (Kaukua North 1-2) and the Haukiaho Group covering the Lipeävaara and Haukiaho targets; as well as Salmivaara, which represents the eastern and western extension of Haukiaho.
The Kaukua deposit of the LK project hosts:
- 635,600 Pd_Eq ounces of Indicated Resources grading 1.80 g/t Pd_Eq* (“palladium equivalent”) contained in 11 million tonnes (@ 0.81g/t Pd, 0.27g/t Pt, 0.09g/t Au, (1.17g/t PGE), 0.15% Cu & 0.09% Ni), and
- 525,800 Pd_Eq ounces of Inferred Resources grading 1.50 g/t Pd_Eq contained in 11 million tonnes (@ 0.64g/t Pd, 0.20g/t Pt, 0.08g/t Au (0.92g/t PGE), 0.13% Cu, & 0.08% Ni).
5,000-meter Drilling Program
The company is planning to conduct high-resolution IP geophysics and then initiate a 5,000-meter diamond drill program to increase its existing palladium mineral resources at LK Project. IP has demonstrated at the KL Project’s Kaukua zone, to correlate with base metal sulphides, and high PGE values and is therefore a preferred method to target higher-grade mineralization.
Disclosure: I currently don’t hold CVE: NAM but going to start a long position in the next few days.
I wrote this article myself, I am not an investment adviser and it expresses my personal opinions. I am not receiving compensation for it and do not have any business relationship with any company whose stock is mentioned in this article.
I am never making any investment advice or recommendation to buy or sell specific securities. Investors in financial assets must do so at their own responsibility and with due caution as they involve a significant degree of risk. Before investing in financial assets, investors should do their own research and consult a professional investment advisor.
Palladium One Mining Inc (CVE: PDM) Share Price Chart
Palladium One Mining Inc (CVE: PDM) Corporate Presentation2020 01 15 - PDM PPT Final
Palladium One Mining Inc (CVE: PDM) Valuation by Resources
The company’s Kaukua deposit resources are worth US$3 billion dollars or 1.9 million gold equivalent ounces at the metals prices on January 17, 2020. The company’s enterprise value per AuEq ounce is US$7.87 which makes Palladium One Mining one of the most undervalued mining companies.
Gold Equivalent Resources: 1.9 million ounce
Market Capitalization: $$23.35M
Cash & Cash Equivalents: $4.3M
Enterprize Value: $19.05M
Enterprize Value Per AuEq Ounce: US$7.87* ($10.026 CAD)
*exchange rate of 0.785 USD per CAD was used