Market analyst Regina Meani discusses Podium Minerals (ASX:POD).With a strategy to rapidly develop an alternative supply of the Platinum Group Metals (PGMs) to the global market, Podium Minerals (ASX: POD $0.35) is an exploration and resources development company focused on PGMs and gold and base metals. Currently, world supply of PGMs is dominated by Russia, South Africa, and Zimbabwe which contribute over 90% of platinum and 80% of palladium mine production and with the recent crisis in the Ukraine, Russia’s supply maybe affected and the door opened wider for Podium Minerals to provide an alternative supply.
The company is focused on its 100% owned Parks Reef Project which consists of a 15km long strike of PGM, gold and base metal mineralisation. The project is located between Cue and Meekatharra in the Mid-West Region of Western Australia.
The share price for Podium tracks closely that for Platinum, Palladium and gold.
From 2018 through to the end of 2020 the price formed a large base that was extended into early 2021 and promoted the steep rise to the peak at 86c in May 2021. The combination of the steepness of the rise and overheated momentum saw the price top out and fall into decline. The price has oscillated lower over several months but recently found support above the 30c zone. In the short-term an initial buy signal would register at 41c and suggest the ability for the price to rise towards its next barrier zone between 46c and 50c and then slightly higher at 55c.
Once clear the stock would gain the potential to head into the 60-70c range and then take out the 86c peak and possibly much higher towards $1.30. The risk to this scenario would be a drop below 28c negating or delaying the upward path.
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