Rhodium is one of the most valuable precious metals in the world. And that’s just one reason I’ve tracked down the best rhodium stocks. These aren’t pure-play companies, but they give good exposure to the metal.
There are lots of investing opportunities in the metals and mining industry. So, let’s take a look at why rhodium stands out. Why is it so valuable? Then with that in mind, we’ll dive into the rhodium companies to watch…
Why Invest in Rhodium?
As mentioned, rhodium is a valuable precious metal. It’s used in catalytic converters, jewelry, the glass industry and even some medical devices. Although, its supply is limited. We’ll get to that in a second but first, let’s compare the price of rhodium to gold…
An ounce of gold today costs close to $1,850. That’s a steep price tag but pales in comparison. The price of an ounce of rhodium comes in well above $10,000. And for a short time in 2021, it even came close to $30,000. So, why is rhodium so much more expensive?
Rhodium is a rare member of the platinum group. As one of the rarest elements in the Earth’s crust, analysts estimate it’s 0.0002 parts per million. On top of that, industrial extraction of rhodium is complex. The ores are mixed with other metals and there are few rhodium-bearing minerals.
As a result, investing in rhodium stocks has some geographical limits. The bulk of known and accessible deposits are in South Africa, Russia and North America. The main exporter has been South Africa, followed by Russia. And with the war in Ukraine, that helps explain why rhodium prices spiked.
There’s been a lot of supply disruption over the past few years. Although, with any crisis comes opportunities. The U.S. and other countries are making moves to reduce their reliance on certain countries. Keep this in mind as we look at the top rhodium companies…
Best Rhodium Stocks
- Anglo American Platinum ADR (OTC: ANGPY)
- Sibanye-Stillwater Ltd (NYSE: SBSW)
- Impala Platinum Holdings (OTC: IMPUY)
- Zimplats Holdings (OTC: ZMPLF)
Most of these rhodium stocks are over-the-counter (OTC). Since they’re not on a major exchange, you’ll likely find less info and there are some other tradeoffs. Although, they’re still some of the best ways to invest in rhodium…
Anglo American Platinum
Anglo American Platinum is the world’s largest producer of platinum. It accounts for roughly one-third of the world’s annual supply. Although, as mentioned, rhodium is a rare member of the platinum group. As a result, this company also is a leading producer of rhodium.
In 2021, thanks to all-time high rhodium prices, the company saw record sales. Rhodium made up close to 43% of the company’s total net revenue. And that’s up from 32% of the total in 2020.
With its large mining operations, Anglo American Platinum is one of the best rhodium stocks around. Although, there are more companies to consider…
Sibanye-Stillwater is another precious metals mining company. It’s based in South Africa, but has projects in the Americas as well. And with increased prices, rhodium made up a larger portion of Sibanye-Stillwater’s total sales last year…
In 2021, total rhodium sales came in at close to R60 billion, making up roughly 35% of total revenue. And that’s up from 23% of total revenue in 2020. If Rhodium prices remain high, the precious metal should continue to keep sales elevated.
Impala Platinum Holdings
Impala Platinum Holdings is another South African company. It owns several companies that operate mines that produce. It’s structured around six operations and also refining services.
In 2021, the company refined 193,000 ounces of rhodium. That makes it one of the top producers and the company continues to expand. It committed to a R50 billion 5-year capital program. This investment will be targeted at the Group’ and processing assets, as well as new growth projects.
As one of the smallest rhodium stocks, Zimplats Holdings efforts are more concentrated. It produces platinum group and associated metals from the Great Dyke in Zimbabwe. Although, it’s still one of the largest producers of the metal…
In 2021, Rhodium sales accounted for close to 33% of the company’s total revenue. And that was up from 18% of the total in 2020. As Rhodium prices remain high, it should continue making up a large portion of Zimplats Holdings’ total sales.
Investing Beyond Rhodium Stocks
These rhodium stocks are some of the best in the industry. Although, there are many different stocks to consider. And building a diverse portfolio can help limit risk.
For more opportunities, check out these nickel stocks. With the rise in electric vehicles, we’re seeing demand for metals spike in different areas. And while we’re at it, here are some EV charging station stocks as well.
With the markets always moving, the best investing opportunities come and go. So, feel free to continue exploring Investment U. We strive to deliver the most useful investment research and ideas…
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