Iridium is a unique element that has many important uses, and investing in iridium related companies can be lucrative for investors. Iridium is extremely hard and corrosion resistant, making it ideal for high performance applications. It is used in spark plugs, crucibles, and high temperature alloys. Iridium crucibles are also important for growing single crystal blades and components for jet engine turbines. With the growth of jet engines and other high performance applications, demand for iridium will likely continue to increase.
In addition, iridium is used for some anti-cancer drugs and radioisotope thermoelectric generators which provide power for spacecraft and remote sensing stations. Iridium demand from these industries is also expected to see steady growth. For investors, the best way to invest in iridium is to identify and invest in companies that either produce iridium or rely heavily on it for their products and services. Some options to consider are miners like Impala Platinum Holdings, manufacturers like Precision Castparts Corp, and satellite communications providers like Iridium Communications Inc.
Iridium Mining Companies
Iridium is a platinum group metal, and is often mined together with platinum and other platinum group elements. The world’s largest iridium producers are Russia and South Africa. Some mining companies to consider investing in for iridium exposure include:
– Impala Platinum Holdings – A major South African mining company, Impala operates several mines in the Bushveld Igneous Complex, a geological feature known for platinum group metals. In 2019, Impala produced around 30,000 oz of iridium.
– Anglo American Platinum – Another South African miner with operations in the Bushveld Complex. Anglo American produces around 20,000 oz of iridium per year.
– Norilsk Nickel – A Russian mining company that extracts nickel, copper, platinum group metals and others. Norilsk accounts for around 37% of global palladium production and over 10% of platinum production. It likely produces significant quantities of iridium as well.
These mining companies represent a way to invest in iridium production directly. As demand for iridium rises, increasing production from these miners could be a profitable opportunity.
Iridium Manufacturers and Users
Besides mining companies, investors can target manufacturers that use iridium metal and alloys in their products. These include:
– Precision Castparts Corp (PCC) – PCC uses iridium and other platinum group metals to manufacture high performance metal components for jet engines. PCC is one of the largest users of iridium.
– Thales Group – A French aerospace and defense company, Thales uses iridium alloys for jet engine parts capable of withstanding extreme temperatures.
– NGK Spark Plug – Uses iridium alloy electrodes in their spark plugs for improved durability and performance. NGK is a major consumer of iridium.
Iridium is also used in radioisotope thermoelectric generators (RTGs) that provide reliable long-term power for spacecraft and remote stations. Companies involved in manufacturing RTGs include Lockheed Martin and Aerojet Rocketdyne. Investing in companies like these provides indirect exposure to iridium demand.
Finally, Iridium Communications Inc relies heavily on iridium metal for their satellite communications network. While not a direct user, they are highly leveraged to iridium and represent a unique way to invest in the element.
Investing in Iridium Stocks
For investors interested in gaining exposure to iridium, investing in stocks of mining companies and manufacturers that rely on iridium is likely the best strategy. Some ways to invest include:
– Purchase shares of individual stocks like Impala Platinum, Anglo American Platinum, Precision Castparts, or Iridium Communications. This allows you to easily buy and sell shares and customize your exposure.
– Invest in ETFs focused on platinum group metals like the Sprott Physical Platinum and Palladium Trust. This provides broad exposure to platinum miners and producers.
– Consider an actively managed mutual fund focused on metals and mining like the Fidelity Select Materials Fund for professional management.
– Use options strategies to benefit from potential price appreciation while hedging risk. For example, buy calls on platinum mining stocks.
As with any investment, proper due diligence is required before investing in iridium focused companies. But with steady demand growth projected from high performance industries, iridium related stocks can offer attractive investment opportunities moving forward.
In summary, iridium is a unique platinum group metal with growing industrial demand for its hardness and high temperature resistance. The best way for investors to gain exposure to iridium is to invest in mining companies and manufacturers that rely heavily on the metal. By targeting iridium producers like Impala Platinum and users like Precision Castparts and Iridium Communications, investors can profit from increasing iridium demand across several key industries.