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.
$ASX:BAR, ASX:CNJ – Mt Thirsty Cobalt Project Scoping Study
http://www.barraresources.com.au/wp-content/uploads/2017/10/Mt-Thirsty-Cobalt-Project-Scoping-Study.pdf
“Summary of Study Outcomes
A preferred case after tax Net Present Value (NPV) of A$290M (with a range of A$245M to A$335M), a healthy 21.5% Internal Rate of Return (IRR), and an expected four-year pay back.
Low capital cost of AUD$212M employing an atmospheric Sulphur Dioxide (SO2) leaching process with Life of Mine (LOM) operating costs projected to be A$43/t of ore treated due to the low reagent consumption.
Plant throughput up to 1.5mtpa with potential to produce an average of up to 1,280tpa of cobalt and up to 1,660tpa of nickel (as a Mixed Sulphide Product) over a 21-year mine life.
A total up to 27,000t of cobalt and up to 35,000t of nickel produced over the LOM. Year 1-5 average cobalt production up to 1,900t of cobalt and up to 1,760t of nickel.
The results of the Study confirm the Mt Thirsty Joint Venture’s view that the Mt Thirsty Cobalt Project represents a long mine life, low capital and operating cost mining opportunity in a stable jurisdiction with excellent logistics.”
I’m not sure why I got Barras’ mailing list, but thought I’d share considering their ASP is under a nickel and the study says they have an NPV of 8%.
Thanks, Griffin.
Barras looks like is a very high leverage long shot. Because of the prices they have to have to achieve their project projections, there is a lot of optionality.
But right now their option is out-of-the-money. The need $36 cobalt and $7.50 nickel. $7 or $7.50 nickel seems to be a figure used by a lot of people..for example, it is used in the Syerston forecasts. But Syerston also uses $12 cobalt and has other things as well.
Barras hides or obscures this in their report by expressing the study prices in dollars per ton. Granted they give the USD and AUS prices, so it is not dishonest; but they average public investor thinks of these prices in dollars per pound. Potential buyers of metal think in dollars per ton, but since they have nothing to sell yet, why are they talking about $ per ton in their study ? It makes me a little nervous about what other key facts they may be downplaying.
As you say, at 4 cents and a low market cap it could be great. But they will need a bull market to be feasible, or at least much higher prices in cobalt and nickel.
Thanks HN, that’s what I was looking for. I was thinking the Scoping Study was the Australian version of the Feasibility Study. I thought their prices for cobalt and nickel were a little high. I’m in a hold pattern right now so I threw these out in case someone was interested. This new offering from DrKSS looks good, ( as good as ARTH, IMO) but I haven’t got anything I want to dump.
ASX EUC closed all time high 26c, exciting news when trenching copper was found on the surface within 2 metres, which was unexpected.
Long way to go, things looking good.
Solid buying near end of day, which is a good sign, hang on more good news to come.
Yea great pick, very pleased and should only run much higher.
Great management, seem to know what they are doing going forward.
SS long way behind your picks, all we can do is try our hardest, if we can pick more winners than losers, than we can be satisfied.
Similar to your picks this one has a v good chance of being a global stock, wait and see.
It’s only in early stages.
I’m a irregular not a guest.
I love Traviv’s views too.
Williamson, The system periodically logs you off to protect both your system and SGS. Please login! T.G.I.F. Best2All…-Ben
Ben, Thank you for the welcome (a couple of days ago). I had been a guest for a long time and appreciated all of Travis’s wit, nuggets, and thoughts on investments (he was the first that I remember to mention Sandstorm – years ago); but, over the last several months I come here daily, and have really benefited from the education, sharing of ideas and information – and some profitable positions. So, joining the irregulars is a pleasure.
A friend sent me this info on a new high density battery that would extend the range of an EV to make them more usable. If they are correct this Lithium Sulphur battery would likely be the main choice as it also will operate in a very wide temperature range. Something most batteries will not do and limits use to mild climate. This would likely impact the use of Cobalt in the EV market.
https://oxisenergy.com/technology/
Arch1 I have researched OXIS Energy and their partners, very impressive, could disrupt cobalt & nickel forecast for EV battery production. OXIS seems to be private. Do you see a way or publicly traded company to invest to place a bet on this technology?
After a fair amount of reading on Oxis, I was wondering the same.
https://oxisenergy.com/contact/
Shareholder queries
Gemma Aldridge
finance@oxisenergy.com
Location
E1 Culham Science Centre
Abingdon, Oxfordshire
OX14 3DB, UK.
OXIS Energy is located at the Culham Science Centre. Due to the nature of the site please telephone us prior to your visit so that we can arrange a visitor’s pass for you. Once you arrive at the Science Centre please proceed to the reception office to the left of the security gate, where a security pass will be arranged. You will need to produce one form of photo identification to the security desk to gain access onto our site.
How disruptive could this be? Who here is our formost expert regards batteries, I ask as I know very little. I am however sure a lot of research is going on in this area and as I am invested in a number of colbalt plays don’t want to get caught out. Oxis energy seems very impressive, noticed they had quite a few patents in place and been going since 2005. Abingdon near Oxford where they are is known for being inventive research wise.
http://www.bbc.co.uk/programmes/b096jb29
Are you going to give them a call Squirrel and perhaps pay a visit? It is certainly worth investigating. I have added a note about OXIS and their battery.
Of course it’s possible but can we here invest in this, be good to know what they are doing for sure, it’s not down the road from me but I like what I’m seeing so far. Be very interested in what others here have to say?
They might offer a PP asumming they need further funding? and enough here think it’s worth an inquiry?
Certainly no harm in giving them a call. And if you’re in the UK, there might be an opportunity to visit them.
Dr. Haridin, Re: OXIS Energy, began doing research October 06th: https://www.stockgumshoe.com/2017/10/microblog-ev-vehicles-october-02-17-beyond/comment-page-1/#comment-4953855
#btw the 2017 $AUZ annual report is posted on this thread and in our dropbox. #$ThankYOU arch1! Long Gr8 Gunnunity & $AUZ! #b2yaz
This bloke is one of the directors btw https://en.m.wikipedia.org/wiki/Edward_Fitzalan-Howard,_18th_Duke_of_Norfolk
The bbc link I posted previously is worth listening to. Our bloke comes across very well.
I was impressed with what I read last week. When I found they were private, I was disappointed that the opportunity to participate was nearly non-existent for now. The idea of the PP was only way I thought of too. I am a little leery of PP, as I got back ZERO from my one and only previous one!
No way to invest at this time that I know of,,, was just posted to be cautious about over investing in present technology as batteries will need to have similar energy density as OXIS to really make them practical for distance use.
Be aware that fuel cells may still arrive to burn NG or Hydrogen and would enable quick fill ,,, not need to wait an hour for a charge of battery.
NG will be burned with EV anyway to supply electric generating plants.
Arch, I have read (but not verified myself) that there soon may be glut/over supply of EV’s. Most of the articles give anticipated growth rates. What is the actual % of EV’s on the road? I remember hearing it but don’t remember (other than it was lower than I thought).
arch1…. Thank you for drawing attention to this. I watched the video and if this technology takes off, it would be a game-changer.
Named after Oxfordshire in England, where it is headquartered, OXIS is a privately-held, venture capital-backed company that has developed a battery with a lithium metal anode and a sulphur-based cathode which is lighter, has a larger storage capacity, and can operate at greater extremes of temperature than current lithium ion batteries. OXIS is collaborating with UK Universities including Imperial College London and with major European car manufacturers in developing a version of their battery for EV use.
OXIS says that the current size of the market worldwide for lithium batteries is around $200 billion annually, of which the automotive market estimated to be around $22 billion, the defense market is around 3 billion, and the storage of solar energy around $28 billion. The fact that they estimate storage of solar energy as the largest driver for lithium battery demand accords with E. B. Tucker’s comments in the recent Casey tease that I posted.
If this battery is as good as they say it is, then once it is in production, the demand for lithium and sulfur would increase dramatically, and that for cobalt and nickel in batteries would decline precipitously. However, it could be some years before that happens. I suspect that an automaker might try to buy OXIS and seal up the technology for themselves, if they could. Meanwhile there is still time for CleanTeQ to make a good deal of capital out of cobalt and nickel.
I’m sure Robert Friedland is aware of all this and is moving heaven and earth to get into production at Syerston, NSW. And maybe he’ll try to buy OXIS.
The recent Casey tease.
Travis J. has today weighed in on the Casey tease that I referred to a few days ago..
The Canadian company is Cobalt 27 Capital (KBLT.V, CBLLF), and Travis is almost certain that the Australian one is Ardea Resources (ARL.AX, ARRRF). Apparently Cobalt 27 is not a miner. It is more a financial company, warehousing cobalt. Travis mentions that he himself has a small stake in eCobalt (ECS.TO, ECSIF) and he highlights our discussion of CleanTeQ (CLQ.AX, CTEQF) on this thread.
https://www.stockgumshoe.com/reviews/the-casey-report/friday-file-green-california-goes-dark-co-27-pitch-plus-portfolio-updates/
CleanTeQ up 3.56% on the Sydney Exchange. Now at 1.16 AUD.
EagerBeaver, you are indeed that! :- Eager! re:CLQ share price… it is Saturday morning there. 🙂 Have an awesome weekend ALL! Best2YOUalwayz – Ben
Emoves360 brings the 3rd World Mobility Summit on October 17th-19th,17 at Munich Fair Trade Centre. OXIS Energy CEO, Huw Hampson Jones will present on October 19th,2017 on Deploying Lithium Sulfur cells and battery systems technology. http://www.emove360.com/de/world-mobility-summit/ … https://www.stockgumshoe.com/2017/10/microblog-ev-vehicles-october-02-17-beyond/comment-page-1/#comment-4953855
Ben JRV looking smart !
Two YouTube videos to enjoy this weekend.
First, a tribute to Robert Friedland, 2016 Inductee to the Canadian Mining Hall of Fame
https://www.youtube.com/watch?v=owJFqPfQ9nA
and second, a Virtualscape video of Ivanhoe Mines – Kamoa.
https://www.youtube.com/watch?v=iGyYPaDBuMc
Ivanhoe Mines/// Kamoa project, virtual videoscape linked above by eagerbeaver:
I had been looking for that one ! Love it !!
What a presentation. It’s great when they superimpose the deposit on top of London.
One thing to consider is that the videoscape of the mining operation has all the details worked out to a very fine degree of detail. For example, they show that they are building their own smelter at Kamoa.
This cartoon implies to me that the major planning and engineering studies are already done. As usual, Friedland shows very deep strategic thinking and is way
ahead of everybody in his planning and execution.
HN…. Yes, I’m very impressed with the detail and am wondering how far they have got with construction of the Kamoa processing plant.
eagerbeaver…Kamoa/Kakula project: I lost a long reply by an errant key stroke.
Short answer: we don’t know, the website mainly is concerned with defining the deposit. They give no guidance on the timetable for construction. They have for sure decided to build. Site work, tunneling, requests for bids on stuff…probably all done or underway. Official construction of the plant ? No announcement yet. But when it comes, they will have a big head start. You can see by the details in the videoscape and pictures from the project.
My guess is that a timetable will be announced when they finalize financing, which is surely in the bag; and a lot of the work will already have been done.
The timetable will have a lot of padding in it.Remember the
Cleanteq autoclaves. And don’t underestimate the Chinese if they decide to go full-out, pedal-to-the-metal.
Boiling it all down, my guess is that they will be producing in four years. Could be three, could be five. We’ll see.
https://www.ivanhoemines.com/projects/kamoa-kakula-project/
https://www.ivanhoemines.com/site/assets/files/2991/ivanhoe_mines_progress_gallery_-_october_2017.pdf
They are digging. They are blasting. They are tunnelling and stockpiling ore. They are preparing the sites.
HN…. Thank you for these links. I’ve looked at the photos and two thoughts immediately came to mind. 1. Ivanhoe is making impressive progress. 2. This drilling and development must be costing a fortune. If it’s going to take from 3-5 years to production, then obviously the costs will mount up considerably before the company can receive a return. Now, I note that these costs are being shared with partners, and hopefully the minerals in the ground will increase in value in the interim. I see that some ore is already being mined and stockpiled. It will be interesting to see what happens. Will RF sell off some of his DRC assets, thus reducing his exposure there, and then he can invest elsewhere? Will some of the easily obtained ore be processed at another company’s facility ( if one is nearby ), so that some income could be obtained in the meantime?
eager, it’s a big project and the amount of capital needed to get it off the ground is way more than we are used to thinking about. But RF is used to working with big numbers.
That’s why Friedland gave an equal share to Zijin, which is a proxy for the Chinese state. Ivanhoe has the capital and can borrow whatever they need for this project.
Also remember that the profits are going to be enormous. The have a cost of about 70 cents a pound and they are discussing 18 million tons a year at grades of 6%.
And the stock price is depressed because people are worried about the DRC politics.
I think if the price of copper goes up, we will get a surprise to the upside on production timetables.
I doubt Ivanhoe is going anywhere away from KKKW.
They have been working on this project for 20 years.
They are building roads, rail lines, and power plants for it. It may be the largest copper mine ever.
What better opportunity is he going to find ?
He will find others, but via HPX. He will have no trouble funding whatever he finds.
http://www.asx.com.au/asx/markets/equityPrices.do?by=asxCodes&asxCodes=auz+clq+euc+jrv+ncz+pgm
CLQ: Syerston Project – Updated Mineral Resource
Clean Teq Holdings Limited released an announcement at 09:05am on 9 October 2017.
Significant update to mineral resource:
16% increase in contained Cobalt
63% increase in contained Scandium
1.1 mill. ounces Platinum
Cobalt grade increased to .13% for 132000 tonnes
$CLQ
Clean Teq up 8.15% at the moment in Australia. 1.26AUD
Now at 1.28 AUD and it’s been as high as 1.29!
The platinum is a nice surprise. That’s a billion in contained metal.
All by itself it adds a multiple to the MC of $ 500 mil.
The cobalt grade improvement is also a pleasant surprise.
hn CLQ……BOOM, another major winner in the RF camp and kudos to yours truly, side note just finished reading The Big Score, we are in very good hands, that I can assure everyone.
Ss congratulations to all CLQ holders HN great work
Hope a lot of you reading benefit from this.
NB: Marin Katusa said it might go higher.
EUC went up a similar percentage, they don’t even have an autoclave.
Well I’m in on both, that said huge difference in my amounts. Got into CLQ at less 70 aud so I’m as happy as Larry. This my most secure holding, cannot think of any negatives and going forward can only be on the up.
NB: Marin Katusa said it might go higher.
Assume you being funny sarcastic, dry wit ha ha?
Euc waiting for report re it’s waste dump grades from Perth AUS, latest date I believe is next week.
Thought it may have been earlier.
Eagerly awaiting in anticipation, to see what the planned drilling grades will be?
The next seven weeks are going to be v. Interesting as we wait for updates.
The grades will decide how far the sp runs.
Euc waiting for report re it’s waste dump grades from Perth AUS, latest date I believe is next week.
Thought it may have been earlier.
Eagerly awaiting in anticipation, to see what the planned drilling grades will be?
The next seven weeks are going to be v. Interesting as we wait for updates.
The grades will decide how far the sp runs.
Well I’m in, very pleased as went from 15 to today’s 29 and hold a large slice. Up side from here seems positive. As you say next 7/10 days will reveal all….
From the sounds of it, EUC’s waste ore grade will be better than most of the fresh ore people are looking at.
Dry wit. He did say it. We shouldn’t be sarcastic, his mention may have had an effect on the price.
I think anyone in or around this is now realising the true value. I missed out on an extra 50k 10 days or so by being to cute on my offer. Only upside is I gained ++ elsewhere but being long CLQ would still rather be.
oooh, Secret. You are a big hitter. But try to avoid mentioning specific dollar amounts. I get jealous and it makes me feel inferior.
God forbid billville tells how much he is making on EUC.
It will make me want to cry.
Sure, dreaming of your CLQ holding….Mmmmmmmm!
Ss at least you know what the projections in the sp are if the results come in at high grades.
Even you, I would guess, would be happy with a sp in the middle of the top projected figure.
Certainly early days, the big boys still buying.
billville…you see what would have happened. I would have sold of a tranche of CLQ just in time to watch it blast off.
HN I didn’t sell my shares either
Syerston production timetable, buried in today’s news release:
” The acquisition of two autoclaves in July 2017 (the critical path long lead item for the Project), has provided the Company with the potential to significantly accelerate the construction schedule for the Project. The updated
Project delivery schedule is still being developed as part of the DFS, however, although the timeframe for the completion of the DFS has been delayed, the Company considers that this will not result in any delay in the estimated timeframes for Project construction and commissioning.”
**
Understand ? Let me translate news-release dialect into plain English:
“Having those autoclaves means we can get this done a lot faster.
But we are not going to tell you our schedule until we publish another of those infernal reports. Ad this one is a real pain, because we are going to go to the bank with it. We have to have all the details. We have to re-do all of our financials and spreadsheets.
All this new ore is it great, but it is delaying the fancy report. But don’t worry. The report date has absolutely nothing to do with our timetable to build the plant. It’s just that right now, we do not want to tell you what our schedule is.”
You’ve got to love it!
HN, if I remember correctly there was not definite date for the DFS just by the end of the year. I want to double my position in Clean TEQ and get into the new biotech stock it’s going to be close.
CleanTeQ is heading off its own chart
http://www.cleanteq.com/investors/
and it has hit 1.30 AUD twice in the current ASX session so far.
Griffen it’s great to have plenty of options.
CleanTeQ closes up 13.5 cents on the Sydney Exchange, an increase of 11.59%.
https://finance.yahoo.com/quote/CLQ.AX?p=CLQ.AX
Congratulations HN, and thank you.
eagerbeaver, thanks.
Of course, I’m hugely long so it’s in my interest to have as many people enthusiastic about it as possible.
Benevolent self-interest.
Griffin, just a friendly suggestion. Compare the risks, certainties, and timeframes for any stock you are comparing to Cleanteq, whether it is a resource stock or a biotech.
A lot of speculations have totally outrageous upside potential . But I have not seen one that I think has as few events that can derail it, or a faster time frame. I have always felt that Cleanteq has a very high probability of success regardless of external circumstances.
I am beginning to consider any thought that gets me thinking about reducing my position to be a pernicious lapse of discipline which is self-defeating to my financial goals.
My problem is how to double my position Cleanteq. I have 2 positions in eCobalt I’m going to sell one and one of my lithium stocks. I still have eCobalt in my IRA and I think it will be in production before CleanTQ. I want to get into $CWBR and that will be a question of how $ARTH gets its 510K approval.
$CTEQF… DFS date…they were a little vague on the date but I think they said early next year. So you have a pretty long window, assuming no other catalysts come before then.
**
Since you want to go there anyway, let me give you my opinion on when to “double up.”
Short answer: as soon as you are able.
Long answer: In my opinion, you should not rely on the DFS date as a deadline, because there are too many other potential catalysts that could occur before the DFS. An off-take agreement, a spike in nickel or cobalt,
a big announcement on a uranium or gold mine…these or something else could all send the price into orbit, and they do not depend on the date of the DFS. They are unpredictable and could happen at any moment.
The DFS will be public. It will be a catalyst. But they
are working on all kinds of real things in the meantime. The DFS is just a report. Take it to the bank now…the DFS is going to surpass expectations.
**
If you want to handicap the DFS date, this is what I think: It cannot be before December 2017 because there is really a lot of work to do on it. After that, I think they will have a fairly wide window and the date will depend on financing progress. They will be shopping for financing before the DFS is released.
So I think the DFS release date will depend on factors we cannot see right now. It will be set on a largely discretionary and strategic basis in the first half of 2018.
They really weren’t that vague with the DFS date. They said first quarter/18. Man, nickel prices are surprisingly volatile now that I have been following it. 10-20% movements up and down in a week or two, I would never have thunk. In last 90 days from $4 to $5.50 back down to $4.60, now surging again well over $5. Copper also up, so this is going well in the direction we banked on.
I posted a month ago I thought we may get $6 nickel by the PFS release date, then it went down a buck. Now I think maybe that happens after all. As I see these metals all go up and down in cycles, I think all evidence points to nickel just in the early stages of an up cycle, after hitting 10 year lows at $4, and now ever increasing demand from new energy batteries projected over the next decade at least.
If nickel hits $6 by the release date of the PFS, then I wouldn’t find it offensive if they used the $7.50 price for the study. Because the high purity sulphate form they will be producing sells at a premium to the metal spot price.
renby…thankfully we are not trading futures.
Your call-outs on nickel were educational, and have had a meaningful impact for me in considering investment targets.
CTEQF DFS date…I agree 90 days is a pretty reasonable window; but Griffin was looking for a date by which he wanted to increase his position, based on the DFS release.
Lqqkin gr8! Vol & SP explode on AUZ http://www.asx.com.au/asx/markets/equityPrices.do?by=asxCodes&asxCodes=auz+clq+euc+jrv+ncz+pgm
Thank you Gr8 sgsMetals gang! Long Gr8 Gummunity, clq, auz!
CLQ, AUZ long – Wish I knew how to download these charts from IB to show y’all. 🙂 Work on that and maybe present later this a.m. Best2ALL 🙂
Ben NCZ Aus is also going well.
Ss MEI Aus had some activity today – no position
ss wmtown mei https://twitter.com/H0U3/status/917291992689905664
Congrats to CTEQF holders as we are looking pretty good right now. The delay in the DFS was kind of rendered moot as todays release pretty much told us over 80% of the pending DFS data. While these increases in grades and volume were mostly an accounting trick, [not any new discovery], as part of the optimization process they have been undergoing, they refined the math of identifying and choosing grades and zones in order to optimize their production, and 30% more cobalt production the first ten years was a huge announcement. One thing I noticed is they were still talking about 2.5Mtpa. But now we know that their 2 autoclaves can handle 2.5Mtpa EACH. So make of that what you may. I see the potential to double production. In any case, based on these upgrades, we now have what looks like the highest quality cobalt project in the world. The deposit size and grades combo are #1 outside congo, then add jurisdiction, extraction technology, and management team, expecting a big return on my 62 cents.
renby…and close to zero finance and construction risk. Plus the water and mineral extraction business.
As long as people look at this as a miner, it will continue to be undervalued.
OK with me.
Right on renby.
I agree the DFS is moot, no reason at all to wait for it.
I also about the grade optimization. They will manage mining cut-off grades, and produce according to the demand and prices of the three major components in the individual mining blocks. Very significant for maximizing and managing profit.
Very sophisticated production management. These guys have their act together.
Renby, on the autoclaves and production forecasts. You and I might have a different opinion on how much outside, second-party ore will be processed in the second autoclave. Cleanteq may not even know themselves at this point.
But regardless, one thing is for sure: That second autoclave is going to be producing metals from SOMEBODY’S ore sometime in the not-too-distant future.
They didn’t spend an extra couple of million for it to have it sit there doing nothing. If they were going to let it sit there, they needn’t have gone to the trouble of buying it.
yep, I was a little surprised to see the update specifically talk about the increase in cobalt production, but using the same 2.5mtpa as the PFS, and no mention of the 5mtpa capacity. So I’ll be interested to see how that capacity comes into play, maybe you are right and they process for neighbors, but I’m still skeptical on that one.
Contract process for the neighbors, or increase their own production. Either way, we win. Cleanteq profits at a higher rate than the current forecasts.
The catalyst for the dramatic increase in CleanTeQ’s stock price, which is no longer linked to the price of nickel.
CleanTeQ’s updated Mineral Resource Announcement
http://www.asx.com.au//asxpdf/20171009/pdf/43n1snc8yt3vjd.pdf
“Previous studies have focused almost exclusively on nickel, with little appreciation of the value represented by the inherent variability of the cobalt grades” Sam Riggall, Managing Director, CleanTeQ Holdings Ltd.
And now we also have the revised figure for scandium and the inclusion of platinum.
$CWBR ow – #ZKSS, #SgSTJ – Great morning to you #Gummune!
I propose a StockGumShoe #MUTE function be implemented by simply adding an algorithm which test for ‘$XYZ’ at the beginning of each post in the #ZKSS threads.
A trolls mission is to divide and conquer. Once a troll has been identified, IT should be #MUTED immediately, or possibly after ONE warning, cautionary statement, for at least 24 hours or until it can be established that IT is not an IT. Most of the posts over the weekend relating to IT included no $XYZ.
If a member of the #Gummune is having a bad day, I propose muting such member for a period of time; Directing them to READ the etiquette thread AND to the listen to the song #Breathe. In early 2015 #ZKSS coined a post which stated his criterion for each post by members of the Gummune. I shall attempt to locate said post, or if a member has access to it please post with the link. #ThankYOU #ZKSS, #ZDD and #Gr8Gummune for locating ZUnicorn(s)! Long #ZKSS, the #Gr8Gummune and $CWBR! Have an awesome day and beyond! Best2ALL! – Ben
Ben, I’m OK with that but we can also just ask the site manager to block any address we think is suspicious. If they holler we can undo it.
You have my email, just let me know which posts raise suspicions.
Banging loudly on the autoclaves…
I do not think most people realize how important the autoclave announcement was.
It does not just accelerate the time-table for construction.
It does not just derisk the project and save a few million dollars.
In my opinion, what it mainly does is put Cleanteq in a commanding position to
get major contracts before other developers, and it also puts them in a commanding position to manage and influence the price of cobalt and scandium.
It puts them in a very important strategic position versus any nearby project.
Any such project will have to overcome the significant capital production cost, and time advantage at Cleanteq, just to be competitive on a project basis.
While they are proving their resource and trying to raise capital, Cleanteq will be scarfing up contracts and gaining scale and price advantages in the target commodities. They will be trying to raise money for something that Cleanteq is already doing better and cheaper than they can.
If someone goes ahead anyway, they can get a foothold…by undercutting Cleanteq prices.
But this proves the point that as an investment, a new project will be less profitable than Syerston.
A different perspective without the autoclaves a minimum of 3 years till production. With the autoclaves and I’m guessing 1 1/2 years till production. Expedited building schedule 24/7, overtime who knows less than a year. My thoughts
Griffin,
Yes, having the autocalve is at least a three year advantage.
Your guess is as good as any other. They are not giving any guidance.
https://www.stockgumshoe.com/2017/02/microblog-scandium-cobalt-and-water-purification-cleanteq-holdings/comment-page-10/#comment-4954205
Not that I do not want Clean Teq to do well (and I am heavily invested in it) , but do you guys think it is a little bit of a coincidence that we are getting this bump today when Cleantech Solutions (CLNT) is up almost 100% today on their announcement of an acquisition? Could today’s success be some bad ticker pickers?
I’m sorry Cleantech Solutions (CLNT)????????
They are metal fabrication.
$CTEQF Griffin, I could see how someone who just heard or read the name might (mistakenly) assume 1 for the other. They have not had benefit of insight and info presented to us here.
deanbob I don’t think that flies, are you and bridutt buddies?
The two of you have made the same error perhaps you should ease up on what ever you are drinking or smoking. You might also let bridutt speak for himself he may have a plausible excuse.
Griffin, no excuse needed. You misunderstood what he was trying to say.
Yes my only point was that it is not a long way from Cleantech to Clean Teq. I know they are different industries. I also know that Cleantech finished up today by 96%. If Clean Teq can benefit from that taillwind, who am I to complain?
Bridutt, it is not an absurd observation, but I doubt the other company it has anything to do with the move in $CTEQF. Maybe an oddball trade here and there, but I doubt it is material.
There are a few reasons.
First the price level in $CTEQF simply followed the earlier lead in Australia, which was clearly triggered by the press release.
Second, the other firm’s announcement did not occur until early afternoon today, well after the move in CTEQF was established in Australia and the U.S.
Third, the other company (get this) had a volume of 16 million shares, between $5 and $6, but has a market cap of only a few million dollars and very high short interest. In other words, there were huge short positions who had to cover, and they knew damned well what ticker they were buying.
Fourth, the technical action in $CTEQF over the last week gave strong indication that a breakout was immininet. In fact, I specifically called for one last Thursday or
Friday.
Bridutt, it is not an absurd observation, but I doubt the other company it has anything to do with the move in $CTEQF. Maybe an oddball trade here and there, but I doubt it is material.
There are a few reasons.
First the price level in $CTEQF simply followed the earlier lead in Australia, which was clearly triggered by the press release.
Second, the other firm’s announcement did not occur until early afternoon today, well after the move in CTEQF was established in Australia and the U.S.
Third, the other company (get this) had a volume of 16 million shares, between $5 and $6, but has a market cap of only a few million dollars and very high short interest. In other words, there were huge short positions who had to cover, and they knew verywell what ticker they were buying.
Fourth, the technical action in $CTEQF over the last week gave strong indication that a breakout was immininet. In fact, I specifically called for one last Thursday or
Friday.
All points well taken. Either way, would not be here without you HN so thank you for all you do!
You are welcome. I hope every reader benefits from the ideas exchanges on the thread.
Regarding 2 autoclaves at 2.5 mtpa…Industrial Maintenance…Always have a back up system if possible. There will be down time . I could see an outage lasting weeks. JMHO. I think it is great they got 2 autoclaves. Not saying they will not want to run both balls to the wall but can’t do that 24hrs , 7days a week , 365 days a year. We will see their plans as time goes.
rubberworm…true what you say; but they have twice the capacity with two. whatever the down time, compared to the capacity with one.
And with two autoclaves, you can have at least one running 24/7.