Platinum and Palladium Are Being Repriced | Nick Smart - Valore Metals
The Deep Dive Feb 9, 2026
Summary
PGEs (platinum group elements) were repriced in late 2025 on structural supply deficits that the pullback did not erase.
PGE demand now rests on three pillars: catalytic converters in ICE and hybrid vehicles, jewelry substitution as gold prices rise, and growing investment flows.
Hybrid vehicles use more platinum and palladium per catalytic converter than pure internal combustion engines, keeping auto-catalyst PGE demand intact.
About 90% of global PGE reserves sit in South Africa, making advanced-stage projects elsewhere — like Valore's Pedra Branca in Brazil — rare.
Valore's Pedra Branca project holds a 2.2 million ounce inferred PGE resource and is targeting a PEA by year-end 2026.
Steve Hyland's takeaways
- Top takeaway The host frames PGEs as a watch-list worthy opportunity for value-seeking investors following the late-2025 precious metals run-up and correction
- Hyland notes The Deep Dive rarely interviews PGE-focused companies, framing this episode as an educational primer on the sector
Nick Smart's takeaways
- Top takeaway Smart argues PGE fundamentals remain strong despite the late-2025 correction, citing World Platinum Investment Council data showing multi-year platinum and palladium deficits
- He argues ICE and hybrid vehicles sustain auto-catalyst demand — roughly 75% of US new vehicle sales are still ICE, and hybrids use more platinum and palladium per catalytic converter than pure ICE vehicles
- Smart details Valor Metals' Pedra Branca project in Brazil: a 2.2M oz inferred resource (~60% palladium, ~40% platinum) on ~50,000 hectares along an ~80km trend, doubled over the past few years of drilling
- He outlines a 2026 development plan targeting a preliminary economic assessment by year-end, with metallurgical test work running at the University of Cape Town
- Smart targets first small-scale production (~15-20k oz/year under Brazil's trial mining license, vs ~150-200k oz/year at full scale) by late 2028, with the team currently well capitalized following a 2024 raise and warrant exercises