written by reader Scandium, Cobalt, and Water Purification: CleanTeQ Holdings

By hendrixnuzzles, February 6, 2017

A Microcap Teaser Solution In Advance !!
(Australian stock exchange CLQ, OTC pinks CTEQF).
CleanTeQ is sure to be the answer to future teasers you will be reading about from resource gurus, To save you all the trouble of solving them, I decided to write this article.
My portfolio was grotesquely overweight in gold and silver positions, and in moments of anxiety I thought it would be a good idea to diversify and take a few positions in something other than gold mines, royalty companies, Mongolian exploration companies, and small-cap copper miners with major operations in the Democratic Republic of Congo.
Thus I made a small speculation in CleanTeQ, solely on the basis that mining titan Robert Friedland was the Chairman, and CleanTeQ was the only resource company I could find that seemed to be in a position to mine scandium, a very rare metal that sells for a couple of thousand dollars a kilo.
My due diligence was so slight that I was embarrassed to emphasize my position to the readers at Stock Gumshoe. We are supposed to study these things a little more than I did for CleanTeQ. And after entering at 50 cents, the stock promptly dropped to 35 cents or so, making me glad that I did not look foolish by publicizing my position.
As the weeks went by, I started to find more information on the company that I should have found out beforehand. This was partly accidental, partly from other Gumshoe readers, and partly from new announcements and company news that occurred after I took a position. But the findings were all very positive, and because the company is so interesting I thought it warranted its own thread apart from the hard asset thread which I moderate.
I have a full long position and high hopes. And I thank Secretsquirrel, Griffin, Larry McKenna, and several others who helped fill in the missing pieces of the puzzle.
Below are my findings, opinions, and summary on CleanTeQ Holdings:
BUSINESS MODEL CleanTeQ is a hybrid company based with three bases: scandium mining and production, cobalt mining and production, and water purification. This seems like an odd combination, but as you will see, it is not. It is a stroke of genius. And I will explain why we should care about scandium and cobalt.
(1) The company is starting production of the Syerston mine, the world’s only scandium mine;
(2) The company will also produce significant amounts of cobalt as a co-product to the scandium;
(3) The company has a large-scale water purification technology, which will target municipalities,
Industrial operations with waste water problems, and mines, which also have water problems

PROSPECTS FOR THE THREE SEGMENTS
(1) Scandium is a very rare metal that usually occurs in only small amounts that are not economical to mine. It is mostly available as a by-product and the market is opaque, usually between private parties. Scandium has very beneficial applications in aerospace, aviation, and technology, but has not been widely applied because there is not a sufficiently reliable supply of it.
(2) Cobalt is essential in many batteries. Lithium gets all the investment press, but a majority of the battery formulations need cobalt, which is rare compared to lithium. Cobalt has a similar supply situation as scandium, it is mostly a by-product and is not commonly a prime mining target in and of itself. But demand for the electric energy market is growing rapidly and cobalt demand is growing and will continue to grow accordingly. Supply chains on cobalt are iffy.
(3) Water purification is a pressing need throughout the world. Cities with lots of people, industrialized places with lots of factories, or mines with waste water, all have a real and pressing need for large scale water purification. I think most people can accept this premise of widespread demand without a lot of documentation.

HOW DO THESE SEGMENTS RELATE TO EACH OTHER ? I cannot get too technical about the water purification technology, but I will try to explain what I understand, and how it relates to the scandium and cobalt operations. They call it Continuous Flow Ionization. Ionization is not a proprietary technology per se, but CleanTeQ has developed a way to implement ionization in a continuous feed, automated loop that improves volume, improves economics, is reasonably priced for installation, and can be custom-modified to specific waste problems. It can be used in conjunction with other filtration techniques. Further, it can be modified TO EXTRACT CERTAIN SUBSTANCES from the feed waste water. This is done by modifying the resins that are used in the ionization process.

Now it so happens that CleanTeQ has developed resins that can extract scandium and cobalt from waste water. So they potentially will have commercial sources of rare metals from the by-product waste of their water purification process !

HOW CLOSE IS THE WATER THING TO REALLY HAPPENING ? It is happening. CleanTeQ has signed a memorandum of understanding with a major Chinese municipality to implement their technology. There is a joint venture, 55% Chinese/45% CleanTeQ. Once the first one is up and working, China has a mind-boggling potential for water purification. For their teeming urban centers and for their mining and industrial locations, shall we say the potential is very large ?

CleanTeQ has 100% of rest of the world. CleanTeQ is closed-mouthed about other commercial sources, but they let on that they have been in contact with the likes of GE, Dow, and other big hitters. They state a pipeline target of $100 million by 2020; I predict they will do much better.

HOW CLOSE IS THE COBALT THING TO REALLY HAPPENING ? Very close. Battery useage is soaring and is the strategic target of many governments, corporations, and environmental groups. Batteries need cobalt.

HOW CLOSE IS THE SCANDIUM THING FROM HAPPENING ? This will take a while because the applications are high tech, with long lead times, and there is only one scandium mine in the world (CleanTeQ’s newly commissioned Syerston mine). CleanTeQ intends to develop the scandium market by being a reliable source of supply, and by driving the price down.
CleanTeQ will have viable margins with scandium prices up to half of current prices.

To give you an idea, the Russians made a few MIGs with scandium/aluminum alloys. They were faster, lighter, stronger. An addition of 0.5% scandium to aviation aluminum strengthens the frame, removes the need for riveting, reduces weight, and makes repairs easier. . The Russians dropped it because of costs; and Boeing and Airbus will not use it without a reliable source of supply. But there is about to be a reliable source of supply: CleanTeQ.

WHAT ABOUT IP PROTECTION ? I believe the IP and know-how moat is sufficient. CleanTeQ holds a perpetual license from a high-level Russian research organization that provided some of the foundation technology. I am not a patent lawyer and a lot of the know-how will be proprietary, not patented. CleanTeQ has been at this for over ten years, I think the barriers to entry are sufficient.

MANAGEMENT Totally a plus. Robert Friedland is the Co-Chairman and CEO, he has 20% of the company, great credibility and clout with the Chinese, and an unbelievable track record in mining. Sam Reggall is the other co-chairman. I know little about him, other than from my observations of him on an Australian investment show that aired last week. He was impressive.

MONEY AND FINANCES I don’t think there is anything at all to worry about. Friedland must be worth billions, the Chinese are in, and the concept has enormous potential.

Sources: as I mentioned, information is scant. My sources were the CleanTeQ website, presentations and and interviews with Friedland and Reggall, and the sketchy information on the brokerage sites. Nothing you cannot find on your own.

Long CleanTeQ

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.

3923
Share your thoughts...

avatar
847 Comment threads
3076 Thread replies
1 Followers
 
Most reacted comment
Hottest comment thread
95 Comment authors
Griffinrubberwormrenbycageeemajinwade3 Recent comment authors

This site uses Akismet to reduce spam. Learn how your comment data is processed.

arch1
Member
πŸ‘7793

On Travis blog today his subject was LEO Low Earth Orbit satellites and way to invest in an emerging technology. If you have not thought about the role of Scandium in Aerospace rocketry note this. At present it costs about $25,000 a pound to put an object into orbit, a big portion of which is fuel. Every pound saved in the rocket or the payload saves another pound in fuel burned at liftoff. Low orbits will save considerable by using smaller rockets and small satellites due to mini electronics etc. Elon Musk and Jeff Bezos are racing to get into… Read More Β»

Add a Topic
3239
Add a Topic
4382
williamstown
Irregular
πŸ‘229

Mei Asx just a note to remember that it it thought the length of the veins in the area, are smaller, and maybe more extraction times are required.
As a speculative stock it appears it’s well placed location wise to benefit from any drilling – high grades – successes in the future.

Add a Topic
5971
SoGiAm
Member
πŸ‘11391

#News… New for #ARL, $ARRRF fp, MEI.Asx, PIL.asx HALTED, AUZ.asx ow UP 5%+: http://www.asx.com.au/asx/markets/equityPrices.do?by=asxCodes&asxCodes=auz+clq+euc+jrv+ncz+pgm+arl+mei+PIL

$ARL ARL announcements Date Price sensitive announcement Headline
01/12/2017 12:31 PM Change of Director’s Interest Notice – I Buchhorn 2 pages 182.3KB
http://www.asx.com.au/asxpdf/20171201/pdf/43pt9gw5s8fp52.pdf

$MEI – Announcements released as MEI
Date Price
sens. Headline Pages PDF Edited
text*
01/12/2017 Final Director’s Interest Notice 2 PDF –
01/12/2017 Director Resignation 1 PDF –

Announcements released as PIL
Date Price
sens. Headline Pages PDF Edited
text*
01/12/2017 Shares to be released from Escrow 1 PDF
http://www.asx.com.au/asxpdf/20171201/pdf/43ptcqzf7ghwxh.pdf

Announcements released as COB
Date Price
sens. Headline Pages PDF Edited
text*
01/12/2017 Appendix 3B Cash Placement 13 PDF
http://www.asx.com.au/asxpdf/20171201/pdf/43pt914k2c66gt.pdf

#Best2ALL

Add a Topic
1576
Add a Topic
964
Add a Topic
2096
SoGiAm
Member
πŸ‘11391

#Now #long $PIL.asx #Peppermint #Innovations, Inc, #Longer #CobaltBlue $COB.asx
#Links to some other ASX news above :)– above-> PIL,COB
#Best2ALL

williamstown
Irregular
πŸ‘229

Pil Asx Ben any idea what technology
they’ll choose?

SoGiAm
Member
πŸ‘11391

$PILasx AGM November 2017 Investor Presentation: http://pepltd.com.au/wp-content/uploads/2017/11/AGM-presentation-2017.pdf
ASX announcements: http://pepltd.com.au/investor-relations/asx-announcements/
WilliamsTown…. This may answer your question.
#Best2ALL

williamstown
Irregular
πŸ‘229

Many thanks Ben, I noticed you’ve taken a long position, so you must be comfortable with its direction?

SoGiAm
Member
πŸ‘11391
williamstown
Guest
williamstown

Vms Asx nickel/Cobalt high risk/ high return 5-5c aud – Venture Minerals, pegged area surrounding Golden Mile Resources G88 ASX sp 80c aud who are awaiting nickel assay results, if favourable may have impact on VMS’s sp.
NP DYOR/ DD

Add a Topic
964
williamstown
Guest
williamstown

VMS ASX sp .055c under 6c aud

Add a Topic
5916
sheldon
Member
πŸ‘236
sheldon

I have been following this thread for awhile. Iam very gratefuI for all the info shared here.
I have positions in Garibaldi,Erdene,K92,Sama.
I’d like to raise some cash (for various reasons) by selling.
Are any catalysts expected before year-end?

kisager
Member
πŸ‘7
kisager

Mining guru R F has spoken: “Nickel sulphate and cobalt sulphate, these are the sexy commodities we cannot live without”

https://www.bloomberg.com/news/articles/2017-11-30/-miner-s-revenge-is-coming-with-electric-cars-friedland-says

Love all your comments !! Have a great weekend

Long CLQ AUZ EUC

Add a Topic
964
Add a Topic
1113
Add a Topic
5242
SoGiAm
Member
πŸ‘11391

Welcome to the #Gr8Gummunity #Kisager Best2YOUalwyz – #BenJammin’
#Awesome #Weekend2ALL! #UBU #InvestInYOU #Investing @StockGumshoe $TWTR @H0U3

Add a Topic
5984
Cowboy
Guest
Cowboy

HN and other Gummies….I don’t recall any mention of American Maganese AMY/ AMYZF on this thread. I have been long AMYZF for two years as a different play on battery materials. I have about forgot about it until I saw it up 30% today on this news https://finance.yahoo.com/news/american-manganese-inc-receives-legal-120000381.html Recycling will be big for batteries since there will be so many before long. This was a lottery pick for me at .06 ! So far so good, Wish I would have brought it to everyone’s attention sooner, but if a partner, or two or three, come forward soon this could really… Read More Β»

Add a Topic
1614
SoGiAm
Member
πŸ‘11391

$AMYZF np Cowby there are several references regarding this equity, mainly shared by Griffin.
Suggestion: Use the Comment Search function, located directly under where you post, to locate others; one of which is https://www.stockgumshoe.com/2017/02/microblog-scandium-cobalt-and-water-purification-cleanteq-holdings/comment-page-6/#comment-4945520 Have an awesome weekend all #Best2YOU – Ben
#DYODD and review HendrixNuzzles and others take on this equity. #Not #investment #advice.

Add a Topic
5987
Griffin
Member
πŸ‘3369
Griffin

$AMYZF – American Manganese looks like a good play though HN has better plays for quicker profits. I am subscribed to their newsletters most of which seem to be an attempt to just keep their name out in front so I don’t post. I was surprised that the new newsletter moved the SP as much as it did then things are a little different in the EU. I think it will be another 2-3 years before AMYZF will begin to have market presence. I kind of envision EV charging stations as being the gas stations of the 50s and 60s… Read More Β»

Add a Topic
1583
Add a Topic
3838
dungac
Guest
dungac

$AMYZF
It seems to me that investing opportunity is not so distant in case of recycling, here is another company (although private) with recent video, claiming 100% recovery of materials.
https://m.youtube.com/watch?v=Rs-jpCyhHVI

Gonna go long on AMY. Thanks Cowboy for the reminder, I saw it here before, but forgot.

arch1
Guest
arch1

totals of tu do not increase as I give them on this blog

hedy1234
Member
πŸ‘1589
hedy1234

Just tried it and it worked for me.

arch1
Member
πŸ‘7793

Your total 1022 under avatar did not change when I gave you TU

Add a Topic
1340
Add a Topic
5916
SoGiAm
Member
πŸ‘11391

πŸ™‚ That’s strange, get the exact same results, regardless of whom I tu… πŸ˜‰
#Gr8ThingzArrive #InSmallPackagez https://www.youtube.com/watch?v=Nk7sTTgBHig Prefer to use official & contribute to worthy cause. πŸ˜‰ https://libera.org.uk/about/support_us/ πŸ™‚

arch1
Member
πŸ‘7793

ben your total still 9630 after i have given you at least 30 today catching up.

Add a Topic
1340
hedy1234
Guest
hedy1234

$TUs
Not sure but I believe the grand total changess when you reload the website.

Add a Topic
1340
hedy1234
Member
πŸ‘1589
hedy1234

I now see what you mean Arch. Must be a daily function of some kind.

SoGiAm
Member
πŸ‘11391

Hedy1234, #TU’s – the system functionality is current not operating.

I have sent a e-mails to three days ago to: Lynn@stockgumshoe.com , Payments@stockgumshoe.com and #ZKSS.
You may desire to do the same.
#Best2ALL!

arch1
Member
πŸ‘7793

Metals/sulphides agglomerate on sea beds from dissolved minerals and then when subducted under continental shelves emerge in magmatic zones of volcanic ridges/mountains. Nickel Mtn. may be such and pod/pocket/lump of agglomerate may have been high nickel content with little else near Re. $GGI

comment image

https://twitter.com/PDChina

Sulphide boulder shown is example.
Earth is 80% water covered so logically nickel bearing meteorites should land in water 80% of the time.

Add a Topic
5916
Add a Topic
964
Add a Topic
964
SoGiAm