How does this sound to you (click here for the whole story):
"Norilsk Nickel(NILSY.PK), the largest nickel mine in the world who is also responsible for 45% of the world's palladium and 10% of platinum, is abandoning the traditional pyrometallurgy process andadopting the more efficient Activox Process, hydrometallurgy that extracts base metals from mineral ores by chemical leaching. The change is necessary due to severe pollution anddeteriorating ore grade.
Knowing the physics in mining, I saw something with hugely significance: While the new technology can extract nickel and copper at near 100% efficiency at low cost, it also means that the chemically stable PGM contents, platinum and palladium, will be extremely difficult to extract. Norilsk will cease to be a major supplier of palladium and platinum."
Sounds like a story that could allow an investor to make a tonne of money over the next couple of years investing in palladium, doesn't it?
I was pretty excited at first, but decided it was too good to be true. At current metal prices, palladium accounts for 36% of Norilsk sales (the same as Nickel). I really doubt that they would switch to a process that cuts their revenue by 36%.
Isn't amazing how so many investing stories turn out to be "too good to be true" after just a few minutes of simple due-diligence? And so the investing addage is confirmed:
DO YOUR OWN DUE DILIGENCE.
Let me know if I'm wrong,