Maximizing Returns From Precious Metal Bearing Catalysts - Your Refiner Holds The Keys

By: Ronald Bleggi Sabin Metal Corp.

1. Introduction

Wildly escalating values of PGMs - particularly the platinum and palladium used in catalytic processes and pollution abatement applications - have increased costs significantly for many users. As prices for PGMs rise, recovery/refining processing turnaround time increase, and lease rates move up, you have the makings of a classic profit squeeze. While any one of these factors will decrease profits, the combination of all three can have a dramatically negative effect. At one point this year for example, palladium prices were as high as $1100 an ounce; while platinum prices reached a high of $650 an ounce. (In most cases lease rates are directly influenced by supply and demand but they also can impact precious metals prices which will be explained later.) At those values PGM users are forced to seek relief in a number of different directions. Since you are not likely to influence metal market prices, the next and best place to turn is to your precious metals refiner. The refiner, at least, has some control over precious metals management, certainly as far as your returns are concerned.

At the refiner, there are three critical factors associated with maximizing returns from virtually all precious metal bearing materials. These are sampling, assaying, and processing turnaround time. We'll provide a brief overview of each of these areas below.