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.
$PCRFY – Will Galaxy Resources Be Next With Some Good News?
by Matt Bohlsen @sa
Summary
Word on the street is Galaxy has done a deal with Panasonic/Tesla, but it is not yet confirmed by Galaxy.
Will Galaxy go with Volkswagen, which recently put out tenders to source key EV metals for their plan to reach 3 million EVs?
Will Galaxy sign a deal with a Chinese company similar to the Pilbara Minerals deal recently signed with Great Wall Motors of China?
https://seekingalpha.com/article/4111348-will-galaxy-resources-next-good-news?uprof=46&isDirectRoadblock=true
I know HN has had some interest in Galaxy.
$PCRFY np
Galaxy was my pick in the lithium space, was long, but I decided to exit lithium as a material of investment interest.
http://www.businesswire.com/news/home/20171002006637/en/Toshiba-Develops-Next-Generation-Lithium-ion-Battery-New-Anode
Happy speculations…what now ?
I recently was infected mildly with the speculative fever on Metallis and Garibaldi, but not to a large dollar amount. And I noticed Tsodilo Resources, another interesting speculation also largely based on surmise and guesswork.
What happens from here ? Obviously this depends on discovery and deposit-related news. So the real value of these speculations is still highly uncertain and will only take shape with geology-related information.
Thinking out loud, here are some interesting figures that may help. But I never know where these stream-of-consciousness rambles are going to go.
METALLIS…Metallis just closed financing for $1.25 million. Their market cap is now
about $30 million, but was a lot less not long ago before the Sprott mania.
TSODILO…Tsodilo just closed financing by selling a 1.0% royalty for $ 1.5 million.
Their market cap also happens to be about $30 million, and has not been as wildly volatile as Metallis. This financing will paid for at the “end”, out of production; the Metallis financing is paid for in equity; but the similarity of the finance amounts compared to the market caps is comparable. Hmm…
GARIBALDI…Garibaldi is raising about $6 million. When the dust settles, Sprott will have about 15% of the company if he exercises and holds onto all of his stock.
Garibaldi market cap has gone ballistic, it is now approaching $170 million.
**
The size and nature of Sprott’s support indicate that he feels Garibaldi is a bigger and better bet than Metallis. But in my opinion, given the absence of hard geological results, the market cap of Garibaldi is getting pretty high. There is a lot of speculation based on Sprott’s imprimatur that may not be sustainable for an extended period when the drill results come out, and Sprott may take profits to cut his risk. For me to be comfortable, I would like to see something about the deposit.
Till then, I will feel a little vulnerable on Garibaldi. It is still a speculation needing discovery.
METALLIS Same with Metallis, but to a lesser degree. At this point I would like to see something factual related to the geology and deposits. It is also a speculation in need of a discovery.
TSODILO…if you substitute Sandstorm Gold for Eric Sprott, you have about the same numbers for Tsodilo as you do for Metallis. ($30 miI market cap, $1-1.5 mil finance). I would guess that Sprott has excellent advice for geological assessment, though I would be surprised if it is superior to Sandstorm’s.
And Sprott is a rock star who gets top billing. I think Watson is just as good in his own way; but he is not exactly the hot darling of youtube and the newsletter scene, the way Rick Rule and Sprott are.
There is far superior evidence of the mineral deposits at Tsodilo (for the kimberlite and iron deposits, not for the gold). There is a NI43-101 resource on the iron ore; what is lacking is decent prices for iron ore. I opine that there are chances of a good discovery in the kimberlite pipe.
It is ironic that I am long Metallis, but have no position in Tsodilo.
**
The prospects may change dramatically at any time with announcements on geology.
Until then, I would say that the upside on Garibaldi and Metallis is very
high, but still speculative and subject to marked volatility. Sprott’s involvement gives credibility, but also a lot of froth and frenzy.
Based on the known geology at the moment, Tsodilo has high but lesser upside, with better chances of being realized eventually and less volatility.
Long $GGIFF, long $MTLFF; $TSDRF no position, but looking to establish one.
do not answer here to “Happy speculations”, it should be on the hard asset thread.
CleanTeQ annual report.
https://hotcopper.com.au/threads/ann-2017-annual-report-to-shareholders.3730899/#post-27641169
I cannot post just the file as it will not let me save it. Those more tech savy might able to, anyway reading it – looks brilliant, to much to devolge in one read.
$CLQ, CTEQF long – Thank you SecretSquirrel, HendrixNuzzles and the GREAT Gummunity! Here is the link to the 2017 Annual Report: http://clients3.weblink.com.au/pdf/CLQ/01903986.pdf First impression = WOW!…
There’s an AUTOCLAVE image! Expect one soon for $PTNUF, as well.
ALL $CTQ announcements link: http://www.cleanteq.com/investors/asx-announcements/ Best2ALL!
These things are usually incredibly boring, but it is amazing to read it closely and see every single one of the potential reasons for being in the stock confirmed.
Squirrel and Ben, Thank you for posting the link to CleanTeQ’s Annual Report 2017.
http://clients3.weblink.com.au/pdf/CLQ/01903986.pdf
I found this to be a hugely impressive, detailed, and well-written presentation, very professional indeed. Robert Friedland really nails it in his opening message, and it’s good to see a photo of one of those autoclaves on its way to Syerston. I wouldn’t mind one of those electric motorbikes with the Aluminum-Magnesium-Scandium alloy frame.
I’m sure other contributors will have much to say about this report. For me, it was interesting to note that water was mentioned ahead of metals in the beginning, although much of the subsequent detail in the report involved Nickel, Cobalt, and Scandium . The predicted ratio of Nickel to Cobalt Sulphates to be produced at Syerston is approx. 5.5 to 1 which is about right considering the evolving EV battery chemistry. VW’s recent tender for EV batteries specified a cathode ratio of Nickel:Cobalt:Manganese of 6:2:2, possibly adjusting later to 8:1:1 largely because of the high cost of cobalt. (Presumably VW has tested the efficacy of these battery formulations.)
https://www.reuters.com/article/us-volkswagen-cobalt-evs-exclusive/exclusive-vw-moves-to-secure-cobalt-supplies-in-shift-to-electric-cars-idUSKCN1BX1RE
I should pick up some more CTEQF.
Nice move up in Platina Resources today, a 22.25% increase. Does anyone know why?
Long PTNUF
renbycage knows why.
It’s either nickel or Renby’s bought trillions of shares. I suspect nickel. I see it was up today. Good news for CleanTeQ also.
Neither Eager, some guy bought $100 worth at that price, and that’s all it takes, it was the total traded on the entire day.
CLQ and EUC together!
Yes both mentioned in the one link below, both 2 of my favourite must have Long stocks! (others being GGI and MTS).
https://www.livewiremarkets.com/wires/government-policy-shifts-drive-ev-demand
We’re currently long Orocobre, Kidman and Global Geoscience (Lithium), Cleanteq and European Cobalt (Cobalt), Lynas (Rare Earths) and Talga (Graphene).
Squirrel….A good find with some detailed information and interesting predictions. I see that CleanTeQ is their second best performer. Thanks for posting.
$ASX:JRV np Just started DD – Jervois http://jervoismining.com.au/ New CEO Effective 9/28/17
http://jervoismining.com.au/wp-content/uploads/2016/03/Appointment-of-CEO-250917-final.pdf
ARLO CHIODO OCT 04, 2017 https://www.livewiremarkets.com/wires/government-policy-shifts-drive-ev-demand
Great article. I Was one of the earliest investors in SYR. Unfortunately missed the lithium rush but not the cobalt. I’m Long EUC as well, VERY long. Amazing things coming here. Was long CLQ also from teens, but been switching into JRV since 6c, should take a look at it. New CEO is of the highest possible calibre (as are the two new appointments he’s made). It’s a CLQ at groundfloor opportunity imo and CLQ is probably a $3-4 stock.
ROYALTIES… BULLABULLING ROYALTY
Jervois holds a royalty over gold production from the Bullabulling gold deposit in Western Australia….
SCANDIUM INTERNATIONAL ROYALTY
Jervois holds a production royalty of 1.7 per cent on the value of scandium and any other metal produced from the Nyngan deposit in New South Wales. The royalty extends for 12 years from the date of first production from Nyngan. At a price of US$2000 a kg for scandium and the targeted production rate of 38,500 kgs per year, the royalty would generate US$1.3 million a year….
FLEMINGTON-SYERSTON SCANDIUM DEPOSIT / POTENTIAL PRODUCTION ROYALTY
Jervois owns the Flemington-Syerston Nickel / Cobalt / Scandium deposit at Fifield in New South Wales.
This deposit is adjacent to and contiguous with the CleanTeq deposit.
In September 2016, the previous management of Jervois granted Australian Mines Ltd (AUZ) an option to acquire this project for $6 million net of $2 million in option payments of which $1 million has already been received.
In addition, AUZ must pay a 1.5 percent royalty on the gross value of any mineral production. By paying $500,000 in September 2017 and a further $500,000 in April 2018, it can extend the exercise date of the option to September 2018. The deal gives Jervois no certainty over option payments or exercise, although AUZ has raised $6 million on the strength of the deal and its market capitalisation has risen significantly.
This project is carried in the Jervois accounts at $542,000….
Just woke up this morning to a tease by E. B. Tucker of Casey Research (simultaneously transmitted by Bonner and Partners) on Cobalt miners, entitled the “The CO-27 Playbook. How to get rich off California’s Energy Nightmare.” Although Tucker mentions the huge growth in demand for EV batteries, he introduces the video by referring to the need to build massive energy storage facilities to absorb the huge excesses in electric power being produced in California by domestic solar panels. These excesses are overloading the California grid. To build these storage facilities, which are like giant batteries, they will need the key heavy metals, including cobalt. Of the two cobalt miners being teased by Casey Research here, one of them has to be CleanTeQ. I wonder what the other company could be.
“Two companies – both trading under $10 – have access to more than enough (cobalt) to satisfy California’s needs.”
“ Cobalt owners are preparing for a 900% boom.”
“The two companies that have “locked up” cobalt supplies will make an absolute fortune.”
“The first company we’ve got our sights on is sitting on a huge private supply of 2,158 tonnes that will soon be worth an absolute fortune.”
“The second tiny company Doug and I have found sits on what could be the world’s largest cobalt find.”
“These companies have ownership of cobalt far far away from trouble spots in Central Africa where cobalt is usually mined. The companies we’ve found own some of the most easily mined cobalt on the planet.”
“A company located in Canada has one of the largest available stockpiles of high-grade cobalt – ready to hit the market at any time…”
“There’s also Australia’s largest cobalt deposit. But it could actually turn out to be one of the biggest in the world… And a single company is sitting on it. Right now, it’s selling for less than $1 a share. When cobalt prices begin to soar… the stock price could shoot up 10-fold… It’s a $48 million company… sitting on a potential $3.2 billion deposit.”
Disclosure: I’m a big fan of Doug Casey and am a subscriber to two of his current promotions.
eagerbeaver, well AUSTRALIAN MINES LIMITED AUZ has a Mkt cap $40.34M and recently claimed to have the largest colbalt deposit there if I recall correctly. Current SP is 1.7 aud cents.
CleanTeQ is just over a dollar but it’s MC is far greater than 49M.
Not sure if there’s any indication who this is regards the – sitting on a potential $3.2 billion deposit.
Doug Casey is wise beyond his years.
Long large AUZ.
Best SS.
Thank you Squirrel. That’s interesting. Robert Friedland is saying in his message introducing CleanTeQ’s 2017 Annual Report that “Syerston, in the Australian state of New South Wales, will become the world’s largest, non-Congolese source of battery-grade cobalt sulphate and nickel sulphate that are essential for the cathodes of lithium-ion batteries.”
Actually, I realize that saying you will become the world’s largest, non-Congolese source of battery-grade cobalt sulphate and nickel sulphate, and having the largest deposits are not necessarily the same thing. A miner can have a huge cobalt deposit but may not have the means to make the cobalt (II) sulphate necessary for the EV battery cathodes. It is clearly much more important to be able to make the pure battery grade compounds and CleanTeQ will be able to do this.
eager, in the report they said they are going to be the first and largest supplier, not just once, but several times.
No reason I can see not to believe them. Their track record on this kind of statement is spotless. For them to repeat it in their report is something to pay attention to.
HN…. Oh, I absolutely believe them. No doubt about it. My biggest holding. If anything, they might tend to hold back.
Now I’m still wondering about that Casey tease.
Did you see Ben’s write up above on $JRV (no position)? … says JRV property is adjacent and contiguous to Cleanteq. So additionally, Platina (and others?) is in the vicinity. More processing fees to CleanTeq for use of their extra/spare autoclave ?
deanbob….. I saw JRV mentioned by Ben but have not had time to research it. I first saw JRV in a comment to the article previously reported by Squirrel. The commentator had apparently been switching from CleanTeq to JRV. Here’s the link again.
https://www.livewiremarkets.com/wires/government-policy-shifts-drive-ev-demand
deanbob…just a thought… it might even be more efficient and profitable for nearby properties and Cleanteq, for Cleanteq to just buy the ore outright !
***
“Dear Neighbor,
You got some profitable rocks over there. You know it, and we know it.
Why go to all the pain and bother of doing a PFS, a DFS, a BFS, a capital raise, and building a factory ? It’s a tremendous hassle. And then you have to deal with multinational and Chinese megafactories
and meet all their incredibly difficult specifications. We take all that work away for you.
We have a plant on the way with two giant autoclaves, and we got the orders and the contacts. We got people who speak Chinese, Korean, and Japanese.
We got lawyers and mettalurgists and every other thing you are going to have to hire or buy.
You don’t have these things, but we are good neighbors, we will work on fair margins. We will keep our resources intact while you use yours up…. but you will make a good profit on your rock, so what do you care ?
Just dig up your ore and truck it on over.
And we can pull out the nickel and scandium, too. We will give fair prices. You will get cash fast !
Don’t delay. Join the Syerston Cobalt
Co-operative today !”
**
If you can’t beat ’em, join ’em
Apparently marin katusa has just called CLQ at 2-3 bagger in 12-24 mths. I believe it’s a subscriber letter
I’ve been surprised none of the newsletter guys have gotten on board earlier.
Sprott and Rule have been quiet, but I am sure Rule is in it. I take this to mean he doesn’t yet have a large enough position to suit himself. He still wants to buy.
These dinosaurs missed the boat. I work for an EV OEM. I am an older guy. But the technology is beyond some of these flim-flam dinosaurs.
Peter, yo may be interested in this thread: EV> https://www.stockgumshoe.com/2017/10/microblog-ev-vehicles-october-02-17-beyond/
Never thought of that one, good idea hn, wonder if they thinking that, if not maybe they should receive an email then followed by your invoice!
The more I follow this company the more I am persuaded they are WAY ahead of everybody.
Including us.
That autoclave purchase has been in the works for at least the better part of a year. Friedland thinks years ahead. We can hardly be patient enough for a drill report to come out or a factory to be built.
HN I think you’re correct, hoping $5-6Aus in 3/4yrs, to me a core holding.
Williamstown…a great thing about the stock is that there will be frequent announcements on a wide range of subjects.
(i.e., offtake agreements, water contracts, mine contracts, new technical applications, EV announcements by manufacturers, construction news, newsletter features, analyst cobverage, etc etc etc)
Some of these will goose the stock more than others, but I think in total they will provide a steady flow of positive news that increases interest.
Price action of nickel and cobalt would be an additional plus.
Long Cleanteq. Embarrassingly overweight.
Squirrel, put yourself in the position of a mineral exploration company or developer whose property is in the vicinity. You got some good drill holes and a market cap of $5 or $10 or $30 million. Whatever.
You take a look at Mr. Lead Dog and you see this monster titanium autoclave your project is going to need.
They cost half of what your company is worth and take three years to get. And you are going to need them…AFTER you go through years of putting together reports and assays, meeting with money guys who want to rip your guts out, paying a percentage to the underwriters. Then you gotta buy a fleet of heavy equipment, write a huge check for the autoclaves, and go through the process of building a plant and hiring guys who can run it. Then you gotta sell your stuff to the Germans or the Chinese in a form and specification you need a Nobel chemist to even understand. And every step, you are competing against You-Know-Who, who is lovey-dovey with the guys you are trying to sell and has had everything you are killing yourself to get.
What a nightmare. I’m exhausted just thinking about it.
Wouldn’t it be a lot simpler just to make a deal with The Mining Godfather, dig up the rocks, load them onto a big rented Tonka Toy, truck the load over to the Syerston Cobalt Co-operative, and get a check ?
I doubt Friedland tells his neighbors, hey come over for a barbecue, bring your ore, we’ll have a few beers and I’ll process your ore for you. Instead, he gives them some cash, stock, and a 5% royalty on the action. They don’t like that deal, Friedland can sell scandium for $600 till those companies dry up and go away. Right now they are weak competitors, they should be eliminated before stronger hands take them over.
Yep, he could, that was my original thought with Platina. That would be an easy one. Because of Platina’s small market cap, I think it still makes sense.
But unless he wants to extend his mine life to over a century, Friedland does not need to acquire a lot of properties .
He could do both. Suppose he bought Platina cheaply.
If the other neighbors are bringing their ore to you, it is good because you can profit on their deposit while they are depleting it, and you do not own it nor do you want to own it. You can sit there, and keep all of your deposit in the ground while you process the other guy’s stuff.
There’s no need to give more equity in that situation.
Actually I think we should send HPX over to platina and auz with their ionization weapons and just steal their cobalt.
Friedland is rich enough, he is not tempted to be dishonest.
His reputation is worth more money to him than he can steal.
eagerbeaver…why does Cleanteq tell us in the NR that Syerston is in the state of New South Wales ?
HN….Perhaps he wanted to distinguish it from the original Syerston, a village and parish in the County of Nottinghamshire in England, not far from Sherwood Forest of Robin Hood fame. There is also a Royal Air Force Station there, RAF Syerston, which is still in use today.
That’s probably it. Very logical. They want those battery companies to be sure to book their tickets to Sydney, not Heathrow.
Exactly!
grade is king and AUZ don’t have it let alone extraction tech
AUZ Sconi Co is measured and indicated 65mt at .06% v CLQ 110mt at .10%
Evidently they haven’t heard of vanadium flow batteries or know that another bull market is vanadium. Vanadium batteries out shine lithium especially if they use the UniEnergy UTE electrolyte unfortunately last time I looked UTE was not public.
Thanks Griffin. I will look into this.
RED in the Uk gets its first significant order for its Vanadium Redox Flow Machines – from Monash Uni in Melbourne and 2 disrtibutors in Europe and Asia
Thanks Shavian.
Monash is one of the research schools with ties to Cleanteq.
And vanadium is definitely on Cleanteq’s radar. It has been mentioned several times by RF.
RED no opinion, no position. Long Cleanteq
Just to add what little I know. I was in American Vanadium Corp and lost a bundle. AVC was focused more on vanadium batteries than he should have been and also didn’t put mining first. They were also too early on the flow battery for the USA. AVC let the lease on their vanadium project go it is now in the hands of ” May 17, 2017 / Prophecy Development Corp. ( TSX: PCY , OTC PINK: PRPCF , Frankfurt: 1P2N ) . the management some affiliation with the new company that the CEO of AVC has formed. I’m a little suspect of what is evolving.
Shavian, is RED using the electrolyte that was developed at PNNL that increases the capacity of flow batteries by 70%.
Dunno Griffin – I’ll ask on the RED ADVFN UK thread and will report back if I get a response
The UTE electrolyte was developed at Pacific Northwestern National Labs. It adds 70% to the capacity of the VRB.
Where’s the vanadium coming from.
I didn’t see any at Wal-mart last time I was in there, and I was in the battery section.
$PRCPF Vanadium project Gibellini is located in Nevada. I’m not sure where the world vanadium sources are.
You probably won’t see vanadium flow batteries in your local Wal-Mart not enough competition to discount them. ;]
Vanadium China, Russia, S. Africa, Brazil are the prime producers in that order.
https://investingnews.com/daily/resource-investing/industrial-metals-investing/vanadium-investing/vanadium-reserves/
Vanadium is used in making steel hard and tough.Much less brittle than Hi-Carbon steels for tools and wear resistant needs. Knives, Planer blades, drills (including rock drills for mining oil & gas wells etc.
Lithium Interesting new recovery process for hard-rock Li ore. Oz company.
https://investingnews.com/company-profiles/lithium-australia/
Joining the dots on Robert Friedland and Vanadium:
https://seekingalpha.com/article/4071655-robert-friedland-talks-vanadium-pay-full-attention
Perhaps we should look for some Vanadium assets as well
Excellent article supports his writing with sources. Also notice that most of what is happening with renew-ables and batteries is in Europe and Asia. The thing I would have liked to seen would be the number renew-ables that have a battery in the USA if it exist.
Did you notice the author is CEO and COO of Prophecy Development ?
I hadn’t and it is even stated in article, depending on how long he has written for SA, he should be quite aware of the ramifications. Having looked at the article a second time, I don’t see any real blatant bias, considering the RF interview and graphs he made a good argument that the vanadium market was on a upward move. I’ll stand by my previous comment.
I agree the facts were presented in an objective manner, and the article was well put together.
I’m not looking to discredit you or John Lee. I was looking for possible vanadium investments.
John Lee is not an ordinary author. He has been buying vanadium mining prospects and is the CEO of a vanadium prospector/project generator.
He has conviction in the future of vanadium.
I do not think this discredits his article; I just think as readers we are better off recognizing it.
For one thing, if you are persuaded of the future of vanadium, then it might be useful to know that John Lee has a company that is in the business of vanadium mining claims and properties.
That’s what John Lee of Prophecy has been doing.
Good concept, the guy is a big fan of RF. He quotes Friedland and attends the conferences.
The thing that troubles me is that his company was worth over 150 mil at its peak and is now worth 17 mil. Would like to know the details and history before I roll the dice.
John Lee is the CEO of Propghecy and writes Seeking Alpha articles to promote his company. This is not damning in and of itself.
But I am a little concerned that the CEO has the time or need to do promote his company in this way. I like low overhead and guys who “do it themselves.” But the thing has a real low-budget feel, and promotion may be as an important part of their strategy as exploration is.
Prophecy…No opinion, no position
Some Speculative Lithium Miners To Consider https://seekingalpha.com/article/4111621-speculative-lithium-miners-consider?uprof=51&isDirectRoadblock=true
$PTNUF added at .082
$PTNUF 2017 Annual Report: http://www.platinaresources.com.au/wp-content/uploads/2017/09/Annual-Financial-Report-June-2017.pdf Long GREAT Gummunity! 🙂 Sharing&Caring 🙂
🙂 >>>—Best2ALL———#Karma> 🙂
$CTEQF Cleanteq Holdings…long…notes on the Annual Report
Usually these documents are boring, but this one is not, at least for me. Since Cleanteq Holdings is the impetus and marquee company for this thread, I feel that there is cause to look at some of the details in Annual Report.
For readability I will try to do this in bullet points.
**from the introduction by co-chairmen Friedland and Jiang Zhaobai, it is clear that Cleanteq’s Chinese connections are superlative. Very high level. They speak openly of the Chinese state priority for clean water.
**They have plenty of cash, over $80 mil.
**They confirm the strategy to own major tailing and waste recovery projects.
They have a negotiation for a gold mine and a uranium mine underway, they expect at least one to become realized.
**Getting Syerston operational is the #1, #2, and #3 priority at Cleanteq metals.
They have a photo of one of the autoclaves and openly admitted that this purchase was a signal to the market that a reliable source is being built.
**There are major negotiations underway in both water and metal. More off-takes
can be announced at any time.
**The “incremental” nature of the scandium production was discussed at length
and is along the lines that I speculated upon. They outline a small scandium operation that will be built that can satisfy demand as it develops, outside of the nickel and cobalt production.
**Listen to this: their forecasted scandium production capability is over ten times last year’s world useage !!
NPV: here’s another good one. They have an NPV for Syerston based on nickel and cobalt. Then they have an addendum: “Look, the scandium is not in there, too sketchy.But here is a base case NPV for Syerston if you are curious.” Yeah…I’m curious ! Duh !!
The NPV for nickel/cobalt is 2x market cap. The scandium base case adds another multiple so 3x market cap. But remember…THIS IS A PROJECT NPV for SYERSTON. It does not include anything for the water or recovery business ! And the imputed interest figure is hogwash, becasue they will get better financing than the NPV rates.
Every single point of major emphasis and promise is strongly confirmed in this report.
**
Cleanteq is my largest position, and after reading this report I do not think I can justify reducing my position. When I became interested in the material resource space, I did not dream of finding such a company.
Long CleanTeq
Below is a quote from Katusa Research latest recommendation, he does not seem to be quite excited as some of us here are about the stock! Oh well if you looked at his record for stock pics over the past year, they have been nothing short of pathetic, I’m a subscriber so I know!
As bright as Clean TeQ’s future is, don’t forget that this is a high-risk speculation. Don’t go with a huge position size on this one. Use a smallish position size and look to get in and out of the market with a relatively quick profit.
Long CTEQF
Katusa probably has no enthusiam because it was not really his pick; but he can’t ignore it now. It is human nature.
I disagree completely about it being a “speculation”. It was a speculation a year ago; even six months ago. But now I consider it to be an investment, and a pretty safe one at that. I could be wrong, I’ll be the first to say so
if I am.
But tell me, what is going to disrupt it ?
**
I dislike having an opposite opinion from Katusa. I am not a subscriber but I have a lot of respect for him.
He is really bright and knows the resource landscape better than I ever will. I have read a few of his published works and found them well written and well thought out.
But on what specifically does he base his opinion about Cleanteq ? Does he have a better pick in water…scandium…cobalt…nickel…or mineral extraction ? I would like to have something factual about Cleanteq that is negative from someone as astute as Marin Katusa.
**
It sounds like he is just touching the base. Cleanteq will make people create excuses about why they didn’t see it.
It wasn’t Katusa’s pick. It was Hendrixnuzzle’s pick,on February 6, 2017, eight months ago today.
Hendrixnuzzles is an anonymous amateur on an investment blog.
No wonder Katusa doesn’t like it so much.
Re Marin Kutusa – I’ve seen the full report and that in and out comment is basically the disclaimer at the end. Essentially he reckons CLQ could double or triple in 12-24 months! He ran figures on it for 6 months and at a $4.50 – $5.50 Ni price says it is highly economic!
Boom!
I’m sure the readers would want to see the full article from Marin
Anyone in ASX PLL?
Billville, Pilbara ?….another good one, but I have sworn off lithium.
#AUZ2017AnnualReportLlink: http://tinyurl.com/AUZannual2017SGS
$CTEQF…another .possibly important clue
Every so often, I see something in a Cleanteq or Ivanhoe announcement that strikes me as a little odd, or a little out of the ordinary. I don’t think about it too much, I even wonder why they are bothering to tell us.
Later a light bulb goes off, and it turns out to be a very important piece of information.
This was the case with the Cleanteq autoclave announcement.
This was the case when they gave on the decades-long history of the ore processing, and the lack of historical grades and assays on the King Leopold copper/zinc mine in an Ivanhoe press release.
I think I have noticed something similar in the annual report.
It leads to a speculation, of course.
***
In all the material I have ever read from miners and developers, the language of ownership is along the following lines:
“We own 100% of the project…”
“We have the exclusive mining license…”
“Our claim covers X number of square miles..”
“We have a permit to perform X,Y, and Z activities.”
But when discussing the Syerston project, Cleanteq takes a moment to explain
that they OWN THE LAND on which the facility is going to be built.
They do not have a just have a license to do something there, like a right to explore or drill or dig or operate a mine on that land. Of course, they will need such permits and licenses. But they are going out of their way to tell us, THEY HAVE TITLE to the land that the factory is going to be built on.
***
Why are they telling us this ? And, why would a developer prefer to own land for a processing plant outright, instead of just getting long-term permits or licenses or concessions ?
***
Here is one possible reason. Just a speculation, of course.
In recent posts I have observed that the Syerston operation will have capacity for ore processing that is much larger than the capacities in the Syerston studies. Twice as much, because they have two 647 cubic meter autoclaves, each of which is sufficient for the annual tonnage forecast for Syerston. .
And I have suggested that Cleanteq could pursue contract processing from adjoining properties. They will own the grain wheel, and they can let their neighbors process their grain at the Cleanteq mill, for a fee. (We have already noticed that the Platina studies allow for a %.0% processing fee. They have a nice deposit, but no autoclave.)
The fact that Cleanteq owns the property on which the plant is built gives additional conviction about this eventual this outcome: Cleanteq will have a business processing other peoples’ ore at Syerston.
***
The Syerston plant is going to operating a long time. Syerston alone already has a mine life in decades. And there are nearby deposits from PTNUF and AUZ and god-knows-who-else.
Maybe some of them will want to persevere and build their own plant. No problem…they just have to get their checkbook out and their drilling and studies done, and get their orders on the books, and their autoclaves on order, and they can go for it.
But some of them will find it better to do business with Cleanteq. Cleanteq will process the ore for many square miles around, beyond the boundaries of their own claim. Maybe not for all of the people; but for some of them.
It is an efficient and economical outcome for all parties, and a very profitable one for Cleanteq. Cleanteq sees a very long-term opportunity and wants to own it.
That’s why they own outright the land on which the Syerston plant will be built.
***
This thought slightly dims the chance of a buy-out of Platina by Cleanteq.
On balance I still think it is worthwhilefor Cleanteq; but it might not happen.
Cleanteq may have other ideas, and they may see no need to acquire an asset on which they can profit, without owning it.
Platina still worth multiples of current MC and a good buy for Cleanteq, in my opinion. But they better be reasonable. Cleanteq is in the driver’s seat.
Typo: “…the Platina studies allow for a 5.0% processing fee.”
Its certainly possible, but I’m going to predict it doesn’t go that way. I think it is more economical for cleanteq to process their own ore, they have enough of it for a long time, so why waste capacity ironing someone else’s clothes. Second, who is going to finance platina or auz? A primary scandium mine? Good luck with that. How much is the market valuating cleanteq’s scandium component? Last I saw it was zero. So if platina or auz are ever going to actually mine their metal, it will be strong hands doing it, and they won’t be wanting to beg cleanteq for some play time on their machines. I think the mostly likely outcome is cleanteq works out a take over or merger, does all the work, throws those guys some $, stock, and a %, and boom, more cobalt for renby and hendrix.
I believe Cleanteq will process their own ore, absolutely. But the second autoclave might process the ore of their neighbors.
They do not deplete their own resource and profit on the resource of their neighbors.
“….who is going to finance platina or auz? A primary scandium mine? Good luck with that”…exactly. It will be unattractive with Syerston here.
But auz and platina are feasible for cash flow the moment Syerston is operational…if they have an agreement in place for the guy with the autoclave.
Really high quality research behind this link:
https://www.livewiremarkets.com/wires/government-policy-shifts-drive-ev-demand?
An excerpt, note
While we expect Lithium and Cobalt to continue to perform strongly, it is equally as exciting to consider the growth opportunities with other EV-related raw material inputs which we forecast will experience bull markets as follows:
2017+ Lithium / Cobalt
2018+ Copper
2019+ Possibly Graphite / Graphene
2021+ Possibly Nickel (last due to massive industry surpluses that need to unwind)
We will be well positioned in these sub sectors (second derivatives of our EV theme) ahead of them playing out.
Renby….. Yes, I read the article and the predictions make sense based on the current availability of the elements listed relative to the demand increases. What puzzles me is why the price of CleanTeQ stock has been tracking the price of nickel when nickel is currently so abundant. Why is CleanTeQ not tracking the price of cobalt and scandium?
I didn’t find it too unusual that we tracked nickel for a time period, since the price of the stock seems to only hold the value of their nickel/cobalt deposit, and they have 6 times more nickel than cobalt [of course cobalt sells for 6X nickel price so there’s that]. You would have thought the rise in cobalt would have neutralized the rock bottom price of nickel. But here are my thoughts about that april to july 50% dip from its high. Either some very large holder was selling off a large cache, or the stock was manipulated down by some entity, maybe to accumulate at a lower price. Just speculation on my part, based upon the nature of the action. There was no rational explanation that I am aware of for the stock to go from A118 to A60 and back up to A112 in this 6 month pocket of time.
Renby….. Yes, I had been thinking that the stock price may have been manipulated.
eager…I do not think it is surprising that Cleanteq is following nickel.
The Syerston studies are based on nickel and cobalt. What the price tracking indicates to me is that the other potentials in scandium, water purification, and mineral extraction are discounted or not recognized.
A large portion of the people following must be interested in nickel, or see Cleanteq as a nickel play. Scandium prices are not visible and Syerston is not forecasting any scandium in their basic public guidance and forecasts.
I do not think this will continue indefinitely. In the meantime I would not puzzle over it. I would take a reversal in nickel that depresses Cleanteq as an opportunity to add. The people selling off because of a drop in nickel spot prices are not seeing the whole picture.
How does graphene figure in EV demand ?
HN…… Here’s a summary of the use of graphite and the potential use of graphene as anode materials in EV batteries.
http://batteryuniversity.com/learn/article/bu_309_graphite
This is what they say about graphene’s involvement. “Graphene anodes are said to hold energy better than graphite anodes and promise a charge time that is ten times faster than what is currently possible with Li-ion. Load capabilities should also improve; better longevity is another item on the wish-list that needs to be proven.
With traditional graphite anodes, lithium ions accumulate around the outer surface of the anode. Graphene has a more elegant solution by enabling lithium ions to pass through the tiny holes of the graphene sheets measuring 10–20nm. This promises optimal storage area and easy extraction. Once available, such a battery is estimated to store ten times more energy than Li-ion featuring regular graphite anodes.
Further improvements with graphene are achieved by adding vanadium oxide to the cathode.”
Here’s another role for vanadium. And yes, RF has certainly indicated an interest in vanadium.
The graphene application may be valid, but it is not here-and-now, or even next week. Long way to go before the winners can be determined but they are likely big-cap tech guys. Do not see how se can invest in graphene safely, with leverage.
I have never considered graphene a commodity play. It is a trechnology play if you can find the right companies.
Agreed. There are enough good prospects to focus on in the here-and-now.
Here’s a way to invest in graphite/graphene, it actually looks pretty good, but on australia exchange only. Talga [TLG]. no position.
http://www.talgaresources.com/irm/content/why-invest.aspx?RID=291
ASX MEI rose nearly 21% today closing at 5.8c aud hearing could be 9/10c by Xmas, some say more
Tolga Kumova is invested, as an investor only.
Cobalt
No position DYOR
Thanks williamstown,
I’ll take a look.
Ss be interested on your thoughts.
billville…could you hum a few bars on MEI ?
What do you guys think about Sherritt International for cobalt production? It appears that their billion dollars of debt may have been ‘forgiven’?
$SHERF np – Sherritt Provides Notice of Release of Third Quarter 2017 Results, http://www.sherritt.com/English/Investor-Relations/News-Releases/News-Release-Details/2017/Sherritt-Provides-Notice-of-Release-of-Third-Quarter-2017-Results-Conference-Call-and-Webcast/default.aspx
Conference Call, and Webcast
TORONTO, October 2, 2017 – Sherritt International Corporation (“Sherritt” or the “Corporation”) (TSX:S)
has scheduled the timing of its third quarter results announcement and conference call as follows:
Press Release: October 24, 2017, after market close
Conference Call and Webcast: October 25, 2017, 9:00 a.m. (ET)
North American callers, please dial: 1-800-274-0251
International callers, please dial: 416-640-5944
Live webcast: http://www.sherritt.com
Source Peter for forgiveness of debt? Best2You
Thnx SoGiAm
Last 5 closings for CTEQF: .80, .82, .84, .88, .90. The elevator has been going up. Will we finish the week at closing high .92? Break intra-day high of .93? Oz friday action will let us know. Also this rise to highs is not correlating with nickel prices. Nickel prices peaked 30 daysago at $5.50, around when CTEQF hit the 90s for the first time, but now is back in the 4.70s.
Ahhh….. So CTEQF is finally shaking off the nickel yoke?
Well maybe, maybe not, I’m posting a new article from Matt Bohlsen be up in a few.
It depends on the outlook and motives of new buyers.
Cannot be predicted.
CLQ at $1.15 in OZ in early trading, within 3 cents of all-time high.
Fingers crossed here. Visualize: BREAKOUT
Looks like Marin and his friends on the asx today
$FYI – Time To Buy Norilsk Nickel Before The Nickel Boom Perhaps Starts In 2018
by Matt Bohlsen @sa
Summary
Get paid an 8.83% dividend yield while you wait for nickel prices to improve.
Invest in the global leading nickel producer with industry low costs of production.
Also exposure to palladium, copper, platinum and cobalt.
https://seekingalpha.com/article/4111985-time-buy-norilsk-nickel-nickel-boom-perhaps-starts-2018?uprof=46&isDirectRoadblock=true
$CLTEQ long
xpost
If you don’t mind a Russian company, and you don’t mind big caps, and you don’t mind OTC pink sheet stocks, then Norilsk might be investigated to advantage.
I thought the articles said as much about the Nickel market as it did about Norilisk. Though the article sounded speculative on China use of stainless steel there are other articles that have said China will be using more Vanadium in rebar. I’m not trying to correlate rebar with SS but depending on what the construction boom is for one needs to be aware. China had high rises not long ago which I believe were residential so I don’t think there will be another such boom.
Couple of goodies, don’t think they been posted previously?
https://globenewswire.com/news-release/2017/10/05/1141278/0/en/Scandium-Metal-Expert-Says-Airline-Industry-Stands-to-Reap-Hundreds-of-Millions-of-Dollars-in-Annual-Savings-by-Integrating-Scandium-Alloys-into-Commercial-Jetliners.html
https://www.cnbc.com/2017/10/04/hybrid-electric-plane-company-outlines-its-first-e-plane.html
$NIOBF on my radar but no position. No opinion.
Have to check them further.