Why These 2 ASX Palladium Stocks Jumped Today
Palladium hit a record high on Monday, rising 5.01% to US$3,156 an ounce as investors worried about tight supply from Russia, the world’s largest palladium producer . The country accounts for nearly 40% of the world’s palladium production, and a slew of sanctions imposed on Russia have investors intoxicated by a supply disruption.
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Apart from palladium, other precious and base metals have also risen significantly in recent days, creating an almost panic buying situation among investors. In such a scenario, Australian investors are also trying their hand at ASX palladium stocks. Let’s take a look at two such stocks.
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- Metals of the future NL (ASX: FME)
Future Metals is an ASX-listed mining and exploration company with a market capitalization of A$81.9 million. Currently, the company is focused on advancing its Panton PGM project in the Eastern Kimberly region of Western Australia. PGMs are a group of six precious metals including palladium, which is used in auto-catalysis, hydrogen production, jewelry, etc.
On Monday, FME shares hit a high of AU$0.28 and closed at AU$0.275, gaining 17.02% for the day. Increased exposure to the stock can be seen by looking at the upward trend in trading volumes on the exchange, which was over 7.2 million, the highest one-day volume since June 2021.
- DevEx Resources Limited (ASX: DEV)
Another company investors are considering is Perth-based DevEx Resources, which is an A$122.3 million ASX miner with a diverse portfolio of high-quality projects spanning some of Australia’s most troubled mining regions. The company has secured a strategic position in the new nickel-copper-PGE region of Julimar, Western Australia, targeting magmatic palladium-nickel-copper deposits.
DEV stock rose 11.54% to reach the last closing price of AU$0.435 on March 7, 2022. Over the past six months, the stock has returned a healthy 35.9%. Volume for the day was recorded at over one million shares.
At the end of the line
Palladium prices hit a record high on Monday, sparking a buying frenzy on the Australian stock market for palladium producers. However, before investing in these commodity-based businesses, investors should do their own due diligence.
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