Palladium is a high-value metal that is both tricky to source and in high demand — especially from car manufacturers. With the precious metal outperforming both gold and silver in recent years, Australia's palladium stocks are well-positioned to take advantage of the growth in the sector.
But with a history of volatility and the future of electric vehicles uncertain, there’s no guarantee it will continue to hold its value. This guide explains what palladium is used for, why you might invest in it and offers a list of palladium stocks in Australia.
ASX palladium stocks
There are few pure-play palladium stocks, as most of the palladium that’s manufactured is produced as a byproduct of other metals. So if you plan to invest in this commodity, prepare to back mining companies that produce other materials too, like platinum.
Below is a list of Australian-listed palladium stocks:
Company summary
Platinum Asia Investments Limited is a closed-ended equity mutual fund launched and managed by Platinum Asset Management Limited. It invests in the public equity markets of Asia ex Japan. The fund invests in stocks of companies operating across diversified sectors. It invests in value stocks of companies. The fund employs fundamental analysis with a bottom up approach to create its portfolio. It benchmarks the performance of its portfolio against the MSCI All Country Asia ex Japan Net Index. Platinum Asia Investments Limited was founded on September 16, 2015 and is domiciled in Australia.
Historical performance
Company summary
Platinum Capital Limited is a closed-ended equity mutual fund launched and managed by Platinum Asset Management Limited. It invests in the public equity markets across the globe. The fund invests in stocks of companies operating across diversified sectors. It invests in value stocks of companies. The fund employs fundamental analysis with a bottom up approach to create its portfolio. It benchmarks the performance of its portfolio against the MSCI All Country World Net Index. Platinum Capital Limited was founded on June 29, 1994 and is domiciled in Australia.
Historical performance
Stock information
Market capitalization: $393179936
P/E ratio: 22.1667
PEG ratio: 0
Dividend yield: 0.0453%
Company summary
St George Mining Limited engages in the exploration for mineral properties in Australia. It explores for nickel, copper, cobalt, and PGE, as well as gold deposits. The company was incorporated in 2009 and is based in West Perth, Australia.
Historical performance
Stock information
Market capitalization: $19770800
PEG ratio: 0
Company summary
RTG Mining Inc. engages in the mineral exploration and development. The company explores for copper and gold deposits. Its principal property is the Mabilo project located in the Philippines. The company has other explorations projects comprising Chanach, Bunawan, Nalesbitan, Bhayan, Mawab, and Taguibo, as well as copper-gold Panguna Project located in Region of Bougainville. The company was incorporated in 2012 and is headquartered in Subiaco, Australia.
Historical performance
Company summary
Woomera Mining Limited, together with its subsidiaries, operates as an exploration company in Australia. The company primarily explores for copper, lithium, gold, uranium, iron ore, nickel, and cobalt deposits. Its principal project is the Mt Cattlin lithium project located in Ravensthorpe, Western Australia; and Mt Venn gold project, which consists of two granted exploration licenses EL38/3111 and EL38/3150; and one exploration license application ELA38/3581. Woomera Mining Limited was incorporated in 1996 and is headquartered in Adelaide, Australia.
Historical performance
Company summary
Thor Energy Plc engages in the exploration and development of mineral properties in Australia and the United States. It explores for uranium, vanadium, copper, tungsten, molybdenum, gold, lithium, and nickel deposits. The company holds 100% interest in the Wedding Bell and the Radium Mountain Projects, located in Colorado and comprise of 199 mineral claims; and the Vanadium King project, located in south-east Utah and comprises of 100 mineral claims. It also holds 100 % interest in the Molyhil Project, located near north-east of Alice Springs in Northern Territory; the Ragged Range covering 92 square kilometers located in Pilbara, Western Australia; and holds 80% interest in the Alford East project, located in South Australia. The company was formerly known as Thor Mining PLC and changed its name to Thor Energy Plc in January 2023. Thor Energy Plc was incorporated in 2004 and is headquartered in London, the United Kingdom.
Historical performance
Stock information
Market capitalization: $6653304
PEG ratio: 0
Which ETFs track the palladium category?
There are at least a dozen palladium ETFs listed around the world. In Australia, we have just one palladium focused ETF, alongside a precious metals ETFs which tracks palladium alongside platinum, gold and silver:
ETFS Physical Palladium (ETPMPD)
ETFS Physical Precious Metal Basket (ETPMPM)
What is palladium?
Palladium is a bright, silver-white metal primarily mined in Russia and South Africa. It’s typically produced as a byproduct of mining other materials, like nickel and platinum. It is one of the six platinum-group metals, a group that includes iridium, osmium, platinum, rhodium and ruthenium.
We’re most likely to encounter palladium when driving a vehicle, as nearly 85% of mined palladium finds itself in the exhaust systems of cars. It’s a vital component of the catalytic converters responsible for transforming toxic pollutants into carbon dioxide, nitrogen and water vapour. Palladium is also used in dentistry, electronics, medicine and jewellery manufacturing.
Why invest in palladium stocks?
Palladium is 30 times rarer than gold and as demand for this material continues to rise, so do its prices.
The cost of palladium has been on the rise since 2016, hitting an astonishing high of over US$3,000 per ounce in May 2021.
Why is palladium on the rise? In short: demand. Anytime the demand for a commodity outpaces its supply, the price of that commodity rises. And palladium supplies have been unable to meet global demand since 2012.
And the good news for investors is that the demand for this metal looks like it will continue its upward trajectory. With our heavy reliance on palladium in catalytic converters and rising global pressure to ditch high-emission vehicles, car markers need more palladium than ever. And since the metal isn’t easily replaced, palladium demand is high.
The bottom line? Palladium is valuable, and trends in global demand for this metal are poised to drive its value higher still.
Risks of investing in palladium
Despite palladium’s rising price tag, this commodity hasn’t always been such a hot commodity. In fact, the metal has a history of volatility and is only valuable so long as it's needed.
While car manufacturers have yet to find a palladium workaround, a replacement isn’t exactly out of the question. And with palladium being so rare and cumbersome to produce, it’s quite possible that an alternative could be found — especially given the failure of palladium miners to meet increasing global demand.
Another threat to consider is the rising popularity of electric vehicles. The electric vehicle market is growing — fast. And this could act as a significant market disruptor for palladium since electric vehicles don’t require catalytic converters.
What are the top performing palladium stocks?
Palladium stocks are stocks from companies that produce palladium — mining companies, mostly. Unfortunately, there are few pure-play palladium stocks, as this metal is typically produced as the mining byproduct of other materials, like platinum.
Here is a list of the top palladium stocks to watch:
Norilsk Nickel (MCX:GMKN, LSE:MNOD)
Sibanye Stillwater (NYSE:SBSW)
North American Palladium (NYSE:PAL)
Stillwater Mining (NYSE:SWC)
Impala Platinum (OTCMKTS:IMPUY)
Palladium performance
This graph shows the spot price per ounce of palladium.
Compare trading platforms
You need a brokerage account to invest in palladium stocks. Compare your platform options by features and fees to find the account in Australia that best meets your needs.
Important: The standard brokerage fee displayed is the trade cost for new customers to purchase $1,000 of either Australian or US shares. Where a platform charges different fees for both US and Australian shares we show the lower of the two. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.
Bottom line
Palladium plays an important role in the automotive industry as a key component of catalytic converters. But its value could be at risk if a substitute metal were found to take its place.
Before you purchase palladium, review your trading platform options to find the brokerage account in Australia that can help you meet your investment goals.
Frequently asked questions
Yes. Some that do include North American Palladium and Sibanye Gold.
Yes. Some penny stocks in the palladium industry include Canadian Palladium Resources, Eastern Platinum Limited and Sienna Resources.
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades. Read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) for the product on the provider's website.
Shannon Terrell is a writer for Finder who studied communications and English literature at the University of Toronto. On any given day, you can find her researching everything from equine financing and business loans to student debt refinancing and how to start a trust. She loves hot coffee, the smell of fresh books and discovering new ways to save her pennies.
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