7 Best Palladium Stocks To Buy in 2022 as Supply Tightens

Palladium is a precious metal mostly used in car exhausts to reduce toxic emissions. The conflict in Ukraine and the sanctions imposed on Russia, which produces 40% of the world’s palladium, could impact supply. Keep reading to learn what the top palladium mining companies are.

Ben Carson   Updated March 8th, 2022

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Is palladium a good investment?

Palladium is a silvery-white precious metal used in engine exhausts to remove harmful emissions. Catalytic converters account for 80%-85% of palladium demand, though palladium is also used in jewelry and electronics. Palladium use has grown as Europe and China passed environmental regulations to make car manufacturers reduce toxic emissions.

Although electric cars don’t require catalytic converters, palladium is still needed for hybrids like the Toyota Prius. So palladium is good for the environment in the short to medium term. Of course, the electrification of transport will reduce the demand for palladium, but the road there should be bumpy.

Most of the world’s palladium is produced in South Africa and Russia, which have traded the number one spot over the past couple of years. In 2021, Russia produced nearly 40% of the world’s palladium; Russia’s Norilsk Nickel (Nornickel) is the world’s number one palladium producer. Palladium is found alongside nickel and platinum, and Nornickel is also one of the world’s leading nickel producers.

Palladium prices have soared on growing demand from carmakers, tougher environmental standards, and sanctions against Russia

What are the best palladium stocks?

The world’s number one palladium supplier, Russia’s Norilsk Nickel, is no longer investable. But you can still buy number two and number three suppliers, Sibanye Stillwater and Anglo American Platinum, and a host of smaller players. These South African miners dig up palladium along with platinum, their primary product. So any sanctions on Russia are good news for them.

Palladium stock list

  • Sibanye Stillwater Ltd (SBSW)
  • Anglo American Platinum (ANGPY)
  • Impala Platinum Holdings (IMPUY)
  • Northam Platinum Holdings Ltd (JSE: NPH)
  • Platinum Group Metals (PLG)
  • Ivanhoe Mines (IVPAF)
  • Chalice Mining Ltd (CGMLF)

Learn more about each company on the list.

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1. Sibanye Stillwater Ltd (SBSW)

  • Market capitalization: $13.6 billion
  • Year-to-date return: 46%

The South African mining company Sibanye Stillwater is the world’s largest producer of platinum, the second-largest producer of palladium, and the third-largest producer of gold. The company was formed through the acquisitions of Stillwater, a U.S. palladium producer, and Lonmin, a rival platinum miner. Sibanye has palladium mines in the U.S., South Africa, and Zimbabwe. In 2021, palladium represented around one-third of company sales.

Sibanye has promised to be carbon-neutral by 2040, and it’s pushing into green metals like nickel. In October 2021, Sibanye announced that it would buy nickel and copper mines in Brazil for $1 billion.

Sibanye is big and profitable, delivering $2.2 billion in profits in 2021. The stock has a very high dividend yield approaching 9%. However, the workers at the company’s South African gold mines have been on strike over wages, and the conflict remains unresolved as of early March 2022.

2. Anglo American Platinum (ANGPY)

  • Market capitalization: 628 billion ZAR
  • Year-to-date return: 34%

Anglo American Platinum, majority-owned by the miner Anglo American, is the world’s number one producer of platinum and the third-largest producer of palladium.

Although the South African company is best known for platinum, they mined over 1 million ounces of palladium in 2021. The precious metal represented 28.5% of sales during that year.

Anglo American Platinum reported over $14 billion in sales and $7 billion in EBITDA for 2021. The stock pays a dividend with a roughly 5% yield.

3. Impala Platinum Holdings (IMPUY)

  • Market capitalization: $250 billion ZAR
  • Year-to-date return: 24%

Another South African miner, Impala Platinum Holdings, known as Implats, is a leading producer of platinum group metals, including platinum, palladium, and rhodium. Their mines are located in South Africa, Zimbabwe, and Canada.

In 2019, Implats merged with North American Palladium, acquiring the palladium-rich Lac des Iles mine in Canada. In 2021, the company produced 1.1 million ounces of palladium. The precious metal accounted for 31% of the miner’s revenue in 2021 and 37% in 2020. For 2021, Implats reported $8.5 billion in sales and $4 billion in EBITDA. The stock has a 6.6% dividend yield.

Although it’s hard for miners to be sustainable, Implats is included in the FTSE4Good Index of socially responsible companies. It is also highly rated by Vigeo Eiris, an ESG rating agency.

4. Northam Platinum Holdings Ltd (JSE: NPH)

  • Market capitalization: 98 billion ZAR
  • Year-to-date return: 19%

South Africa’s Northam Platinum mines platinum group metals (platinum, palladium, and rhodium) at its three mines. They also own a recycling operation.

In 2020, palladium represented roughly a third of company sales. Rhodium, a precious metal also used to reduce car emissions, is the number one revenue contributor.

In 2021, Northam rebounded from a weak 2020 when Covid disrupted mine production. By mid-2021, production was up by over a third. The miner reported over $2 billion in sales and $1 billion in EBITDA.

5. Platinum Group Metals (PLG)

  • Market capitalization: $213 million
  • Year-to-date return: 49%

Platinum Group Metals (PLG) is a Canadian company developing the Waterberg Project, an underground palladium and platinum deposit in South Africa. They are also working on the Lion Battery, a type of battery using platinum and palladium.

According to the company, the Waterberg mine has over 12 million ounces of proven and probable palladium reserves. This is in addition to reserves of platinum, gold, and rhodium. PLG owns 50% of the Waterberg Project; other major shareholders include Implats and several Japanese companies.

However, the Waterberg mine has yet to start production, so this pre-revenue stock is quite speculative.

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6. Ivanhoe Mines (IVPAF)

  • Market capitalization: 13 billion CAD
  • Year-to-date return: 7%

Ivanhoe Mines is a Canadian mining company developing three main projects in Africa. They include the Kamoa-Kakula copper discovery in the Democratic Republic of Congo (DRC), the Platreef palladium-rhodium-platinum-nickel-copper-gold discovery in South Africa, and the Kipushi zinc-copper-germanium-silver mine in the DRC. Ivanhoe is also exploring another copper asset in Western Foreland, South Africa.

The Kamoa-Kakula mine began producing copper in 2021. In the third quarter, they sold $342 million worth of copper, generating $233 million in EBITDA.

As you can see, Ivanhoe is not just focused on palladium. Right now, they only make money on copper, but copper is a metal with a key role to play in the electrification of cars. Ivanhoe even expects to power Kamoa-Kakula and Kipushi with carbon-free hydropower to reduce its greenhouse gas emissions.

7. Chalice Mining Ltd (CGMLF)

  • Market capitalization: 2.6 billion AUD
  • Year-to-date return: -22%

Chalice is an Australian miner focused on developing the 100%-owned Julimar Project in Western Australia. The project contains platinum group elements like platinum and palladium, nickel, copper, and gold. The Gonneville deposit within the project is the largest nickel sulphide discovery globally over the past twenty years and the largest platinum group metal discovery in Australian history. The Gonneville deposit covers just 7% of the project.

The project is favorably located near Perth, Australia, with access to world-class roads and other transportation infrastructure.

Although Chalice doesn’t generate material revenue, its world-class deposits ensure that it has over 2.6 billion AUD in market cap.

Palladium ETFs

If you don’t want to pick mining stocks and prefer to invest in palladium the metal instead, you have several options. Learn which funds let you access physical palladium without stocking up on bars yourself.


🔔 Looking for platinum investments? Check out the top platinum stocks and funds.

NOT INVESTMENT ADVICE. The content is for informational purposes only; you should not construe any such information as investment advice.

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