Scandium, Cobalt, and Water Purification: CleanTeQ HoldingsA 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.
$CTEQF Cleanteq…stock price move and fears about dilution
On October 23 Cleanteq announced an option exercise of unlisted options of 500,000 shares that had been previously authorized, effective late November.
Yesterday, October 24, Cleanteq stock rose to previous all-time highs at $1.39 and then smashed through overhead resistance to close at $1.42.
This underscores my assertion that worrying about dilution, and basing a trading strategy on it, is likely to cause one’s being out of the stock at an unfortunate time.
It seems to me that being out of the stock is more of a financial risk that being in it.
**
While the number of shares in this case is not major in relation to the total issued, the incident tends to confirms my contention that dilution is not really a major investor worry with Cleanteq.
The main reasons I have this general point view, besides the number of known potential catalysts, are first, that Friedland and Jiang Zhao Bai each have about 16% of the company, and insiders another “X” per cent. So dilution will have an immediate and harmful effect on them.
Second, the Chinese have the right to maintain their proportionate share position in the company. It does not seem likely to me that Friedland would take action to raise cash, that would run the risk of the Chinese interests taking an incremental
position that would make their total greater than Friedland’s. He is very careful about these things and is not going to lose control of Cleanteq over a minor capital raise.
Third, Friedland’s track record and philosophy give confidence that dilution that harms shareholders materially is not going to happen. He basically makes large strategic sales of minority equity to raise capital when he wants it, like the 10% of Platreefs he sold to the Japanese or the 19% of Cleanteq he sold to Pengxin. Friedland does not use the public markets to “get money” per se. He uses the public markets to validate the worth of his assets, and reduce his own capital risk in the subject enterprises.
**
I wrote above that “The move yesterday had no apparent catalyst at all, other than the “dilution” of a fraction of a percent the previous day.” The key word is “apparent.”
I raise the question of whether the innocuous-sounding “dilution” of October 23 had a connection to the sharp increase yesterday October 24. We do not know who the exercising party is, or why they chose this moment to exercise, or what their motives are…except that generally, in exercising options, the main motive is usually to exercise and then re-sell the equity and take a profit.
Who ? Why ? Why now ?
We cannot know. But I have a hunch this means that we can expect a major catalytic announcement within 30 days. Someone out there knows a big move is coming, and they are getting ready to exercise 500,000 options by the end of November.
More than once, innocent-sounding announcements from Cleanteq have been a message that says, “SOMETHING BIG IS ABOUT TO HAPPEN !”
HN… Totally agree. And the announcement may explain the sudden spike down of 6 points on the afternoon of the 23rd when I happened to be online, and about which I asked here. The recovery was quick and CleanTeq continues to delight.
Long and longer CTEQF.
It is possible some people would have sold on the basis of the announcement.
The kind of disappointing answer from cleanteq to the question “why do you speak of 2.5mtpa throughput when your autoclaves have 2.5mtpa capacity each?
At the moment we have development consent for a 2.5mtpa operation, which is what will be envisaged for the Project as part of the DFS. In terms of autoclave capacity, the units are somewhat larger than we need however this will be to our benefit as it will allow longer residence times in the autoclaves, which will improve our recoveries.
Renby, the answer is a creative one and in the case of the DFS capacity, it is true; but my opinion is that the rationalization ” this will be to our benefit as it will allow longer residence times in the autoclaves, which will improve our recoveries ” is a semi-bogus answer, barely credible.
But you put them on the spot, and they had to say something. Way to go !
Don’t be disappointed. If they have a strategy to do contract processing, they are not going to tell us or anybody else about it until the time is right. Nor are they going to tell us if they are going to apply for a permit to increase capacity.
It is important to have credible management, but I would not expect that they would admit major unannounced strategy moves to us. For the time being, we can only look at the facts and make our deductions. There limp answer at the end does nothing to change my assessment of the likely outcomes.
We might ask them point-blank:
“Would Cleanteq ever consider processing second-party ore in the 2nd autoclave ?”
Their answer would likely be:
“Cleanteq would consider, depending on circumstances, any commercial arrangement that would benefit our stockholders.”
Or, they might say:
“We currently have no plans to do so .”
HN Basically agree. I would have preferred an answer more along the lines of “yes the increased potential capacity gives us multiple options down the road to increase production”. But yea, a semi-bogus shrug off answer. It was informative to know they are approved for only 2.5mtpa, and would need to get an approval to increase that, but doubt they would be denied.
Syerston will be the hub so to speak – will be processing AUZ, PGM and SCY gear for big $$$. Kaiser said in 2015 Friedland will own scandium. Looks like that will apply to ni and co sulphates too. Market cap heading into billions 5-10b going to plan, but will take time.
Our ambitions are big.
Johnn…we all dream of hitting big multi-baggers. We have to try to recognize one when we actually run into it.
Good quote!….I posted it on another board but did not take credit.
Syerston capacity and Cleanteq news releases…another thing I have noticed about Cleanteq is that they tend to underplay their hand in the studies. There are a number of reasons I can think of for this; but the important thing is to realize they lowball themselves, and are not “stretching” to put up fancy numbers. On the contrary, they seem to deliberately hide a lot of muscle. They are quiet and look like mild-mannered Clark Kent, but under the suit and the horn-rimmed glasses they are Superman.
This is a company that goes out of its way to deliver in excess of what they say they will deliver, faster than they have said they would.
Australian Securities Exchange & Media Announcement Clean TeQ Holdings Limited (CLQ:ASX – CTEQF:OTCQX)
https://hotcopper.com.au/threads/ann-september-quarterly-activities-and-cash-flow-report.3787806/#.WfJhlujTXMI
Includes photo – Figure 1: Autoclaves being loaded on board vessel for transport to Port Pirie.
Eucasx closed yesterday at 17.5c aud, after ups & downs.
Nothing has changed fundamentally wise, just a matter of not worrying too much regarding the movements in the sp.
Today is currently trading at 20c, and at a guess would probably close around 18.5/19c.
Still the best Co stock IMO on the asx, still early days, with much more to come before Christmas.
Also good grades of Ni & Cu in Slovakia.
$EUC…Long and patient. Thanks, Billville.
Euc closed 20.5c aud on t/0 of approx. $4.5M .
HN your guys on fire over there with stock selections, keep it up.
CTEQF Overall, I loved todays quarterly activities release, the story is fully intact and progressing just fine, and the stock price is exactly where i hoped it would be at this point in time when I purchased in february. Such an exciting company, its got so many developing parts, in so many high growth opportunities, and all revving up at the same time. The way that they partner up and joint venture, I see an army of spiders building a global web. We are going to be proven very astute getting in early and big here.
Mostly todays release just organized everything thats going on, but was just a reiteration of what I already knew, though it updated for me a few timelines. However one paragraph caught my eye.
“Clean TeQ is preparing two pilot projects in China to demonstrate the applicability of the CIF® technology in treating waste water in a coal to chemical plant and treatment of water from a coal mining operation for re-use. Both projects are planned for the beginning of 2018 and are in cooperation with large Chinese state-owned companies.”
That’s the first time I’ve heard about this, and it sounds very promising. Hopefully this evolves into the kind of mega-sized chinese water contracts we are all fantasizing about.
Renby… they sure accomplished an awful lot this quarter.
Hadn’t heard about the coal projects, either. These things take a long time to put together, but they wouldn’t mention them without a pretty good chance of them coming to fruition. With the Chinese partners they have on board, I think confidence is justified.
It is amazing how every single one of their initiatives seems to be developing on track. A truly mind-boggling company, and still relatively unknown.
“As at 30 September 2017 available cash at bank was $62.9 million” And “Autoclaves are all paid up” According to new IR Mr. Glass…Sounds good to me. Btw Brian Szeto out of PI FINANCIAL is pitching Excelsior …
http://www.pifinancialcorp.com/email/min-oct23-17.pdf
CleanQash… they had 80 mil from Pengxin, so they spent about 20 mil this quarter.
Should have posted here on Cleanteq thread
https://www.stockgumshoe.com/2017/09/microblog-gold-silver-copper-and-hard-assetsfall-2017/comment-page-3/#comment-4957369
Some time ago I posted a comment on big number theory and science by consensus. Here is info on education that can apply to our thinking and numbers out of context.
https://chronotopeblog.com/2015/04/04/the-mcnamara-fallacy-and-the-problem-with-numbers-in-education/
As example number of holes drilled that encounter mineralization are meaningless until we know exactly what minerals they are and if they are in mine-able situ. Sea water contains huge amounts of gold but recovery cost is greater than value recovered.
Coal slag heaps hold immense amounts of various valuables such as enough Thorium to power the planet IF a feasible Thorium reactor is ever developed.
The atmosphere of Venus is roughly a gasoline equivalent but cost to capture and tank it to Earth is astronomical. pun intended IMO
I have been interested in the Thorium market since coming across Lightbridge Corp (LTBR) a few years ago arch1. $LTBR is on my watch list and spends a ton of $ developing Thorium fuels. There is significant support from our neighbors up north, LTBR could make money one day, I am not confident but it is a possibility down the road. Can’t make weapons from Thorium, that puts Thorium at a disadvantage in our world. Best.
Commercialisation of thorium as fuel in nuclear reactors is imminent http://www.miningmetalnews.com/20171006/524/commercialisation-thorium-fuel-nuclear-reactors-imminent http://thorenergy.no/
There is and will be a huge market for potable water. How does CleanTeq compete?
http://www.sfexaminer.com/carlsbad-desalination-plant-produces-15-billion-gallons-fresh-water-first-year/
See Cleanteq Water website
As I understand it Cleanteq does not have “potable water” as a driving objective.
They can do it, but it is not their focus. Their focus is “fit for use” water, depending on the situation.
This may mean a purity that is suitable for irrigation, or just a quality that is sufficient to return the water to the water table without poisoning anyone, or water that is suitable for recycling in an industrial process. It depends on the project at hand.
EUC Asx Confident – as far as one can be – that the diamond drilling being undertaken at present will confirm average high grades, as thought.
Unsure of the timeline of the drilling, which will determine to some extent when sample rocks will go to the Lab to be processed for grades, and when the results will be known and released
It has also been reported – though not officially by EUC, that they’ve an option over a large parcel of land in Sweden, but as stated no confirmation from the company.
Seems odd that no company announcement, seeing the option was reportly taken in May/June, 2017.
EUC Asx Tate Sweden option details is south of Unden in the municipality of Karlsborg.
Licence valid for three years with an area of 868 hectares.
http:// http://www.miningmetalnews.com/2017
https://seekingalpha.com/article/4106001-niocorps-elk-creek-superalloy-project-look-good
Good link. I think the comment banter was as informative (more?) as the article – not atypical for the SA articles I’ve read.
I enjoyed reading the comments… these #’s are from Niocorps full feas
“Production: On an annual averaged basis, estimated production and revenues are as follows:
– Ferroniobium (“FeNb”): annualized production rate of 7,055 tonnes at an averaged realized price of $39.60 per kilogram (“kg”) for contained niobium (65%), yielding annual gross revenue of $183.4 million.
– Scandium Trioxide (“Sc2O3”): annualized production rate of 103 tonnes at an averaged realized price of $3,675/kg of Sc2O3, yielding annual gross revenue of $378.3 million.
– Titanium Dioxide (“TiO2”): annualized production rate of 11,445 tonnes per year at an averaged realized price of $0.88/kg TiO2, yielding annual gross revenue of $10.1 million.
Production Costs (net of TiO2 byproduct credit):
– $12.14/kg of niobium on a niobium-equivalent basis.
– $1,127/kg of Sc2O3 on a Sc2O3-equivalent basis””
From my DD on CTEQF these FS #’s NIOBF has are total BS. SC. will selling for less then Nio can produce it.
Nio is screwed, they simply can’t compete in the market with these numbers. They are clearly not viable, $3,675 is a pipe dream. I think $1,250 scandium price is possible, but even that, optimistic at supply levels many, many times present world usage. In 10 years, scandium will be a good business if you can produce it cheaply as a side show. For cleanteq, it may come on line as a big money maker just as cobalt fizzles out.
Does Niocorp have anything else going on for it ?
CTEQF: Been dreaming of a big deal with Tesla.
Friedland and Riggall both pulled from their speaking gigs at IMARC this week. Seems to suggest something big is up. ?????
Interesting indeed, where did you hear or see that btw, thanks.
Maybe they going to China?
I picked it up on another board, I haven’t been able to confirm it, but evidently they have been taken off the schedule. If true, something has got to be going on.
Yes, not listed here – https://imarcmelbourne.com/speakers/
https://hotcopper.com.au/threads/urgent-business.3792432/#.WfXv4OinzMI
Good sleuthing.
If this is true, something has to be up. It’s not like they can’t find a babysitter or someone to walk the dog.
These guys are so busy and plan so carefully. For both of them to have their schedules and plans disrupted on a publicly announced
appearance, something big must be happening.
I’m on the edge of my seat. I assume this mystery will be revealed sooner rather than later, as this change will be very conspicuous and lead to all kinds of speculation.
It’s going to be a great week !
I just went through the speaker list and I did not see either listed. However, Ben Stockdale, Chief Financial Officer, Clean TeQ, was.
$CTEQF…trade conference non-attendance by Riggall and Friedland
[Saw the agenda with my own eyes] On the IMARC agenda, Ben Stockdale is speaking for Cleanteq on November 2nd.
[Hearsay] Peter Vogt is speaking at the AGM conference.
Hmm. What could it be ? Whatever it is, it seems to require two signatures.
I think the right course of action to do is to is not to worry about it,
and just buy more Cleanteq. Monday. Morning. Early.
If I can buy GGS and Metallis because Eric Sprott is taking a case of whiskey up the hill to the mining crews, I can add some Cleanteq when Riggall and Friedland bot simultaneously pull out of visible trade conferences.
**
In passing, Rick Rule is also speaking at the IMARC conference.
I missed the “…more” of your comment that Rick Rule was also speaking before I originally posted. It would be nice to replay selected IMARC speakers as was available at the Denver conference.
deanbob, I had never heard of the IMARC conference. It seems more oriented towards industry professionals and mine operators, rather than investors. Not that a few interesting picks couldn’t be found there.
Yes RF looked to be keynote speaker….
With confirmed keynotes from the below speakers, make sure you visit the IMARC website to download the full program.
Robert Friedland,Co-Chairman at Clean TeQ, Executive Chairman at Ivanhoe Mines
Rick Rule, President & CEO, Sprott US Holdings
Yukio Takebe, Chairman & CEO, Mitsui & Co. (Australia) Ltd.
Michael Nossal, Chief Development Officer, Newcrest Mining Limited
Michelle Ash, Chief Innovation Officer, Barrick Gold
William Randall, Co-CEO & Executive Director, Noble Group
I asked RG new IR if RF will be there … His reply was “Unfortunately Robert is attending another event overseas so will not be able to attend IMARC this year.”
Those going IMARC pay a nice buck … And now they have listen to Ben Stockdale.
Stockdale great name for this job. BS not so good. IMHO RF found a gem in Mr. Stockdale . Hard working sob. Cheers to you Ben S! He will do a great job at IMARC. Have wait and see what RF is up to. Good digging here on the board …thanks all.
EUC announcement. From HC.
EXCEPTIONALLY HIGH Co-Ni GRADES FROM CHANNEL SAMPLING AT SURFACE
Channel sample of road cutting massive cobaltite-gersdorffite reported:
o 1.2m at 4.39% Co, 6.21% Ni & 1.13% Cu
Including 0.7m at 7.3% Co, 10.45% Ni & 1.72% Cu
Prospective Pivo Zone Target mapped out over 400m strike length, defined by shallow historical pits and previously undocumented smallscale adits- trenching further along strike to south west underway, aiming to extend strike length
Second diamond drill rig to be mobilised to test Pivo Zone Target
300kg Bulk sample of mineralisation retained for metallurgical testing
Figure 1: Cobaltite-Gersdorffite Massive Sulphide Mineralisation from Road Cutting | ASX: EUC | European Cobalt Ltd | Level 11, 216 St Georges Tce, Perth, WA 6000 | | http://www.europeancobalt.com | +61 (08) 9481 0389 |
European Cobalt Ltd (“EUC” or “the Company”, ASX: EUC) is pleased to announce the significant assay results reported from sampling of the cobaltite-gersdorffite massive sulphide mineralisation occurring at surface within a road cutting.
The tenor of mineralisation is similar to that previously produced from the high grade Zemberg Vein system. Zemberg averaged production grade of 4% Co and 16% Ni. Drill testing of this target has commenced to define the extent of mineralisation identified at surface.
Figure 2: Pivo Zone
Target Managing Director, Rob Jewson commented, “The phenomenal grades of cobalt and nickel sulphide mineralisation identified at surface is testimony to the high grade nature of the targets we are actively perusing. We have mobilised a smaller underground style diamond drill rig in order to test the down dip and along strike potential of the Pivo Zone as a matter of priority.
With a strike length of 400m the Pivo Zone represents a significant high grade target warranting rapid investigation.” |
ASX: EUC | European Cobalt Ltd | Level 11, 216 St Georges Tce, Perth, WA 6000 | | http://www.europeancobalt.com | +61 (08) 9481 0389 |
0.7m @ 7.3% Co, 10.45% Ni, 1.72% Cu 1.2 @ 4.39% Co, 6.21% Ni, 1.13% Cu
Figure 3: Pivo Zone Massive Cobaltite-Gersdorffite |
ASX: EUC | European Cobalt Ltd | Level 11, 216 St Georges Tce, Perth, WA 6000 | | http://www.europeancobalt.com | +61 (08) 9481 0389 | ZEMBERG-TEREZIAN VEIN SYSTEM TARGET OVERVIEW Figure 4: Dobsina Vein System
The Joremeny Target represents part of the Zemberg-Terezian Vein System. The Zemberg-Terezian Vein System extends over a 1,500m strike, 300m depth and 0.7-1.5m wide mineralisation. Distinct metal zonation is evident with more copper abundant mineralisation in the upper parts whereas nickel-cobalt dominant mineralisation occurs in the lower part of the vein system.
Lower level veins were exploited at grades of up to 8% Co and 17% Ni. Upper levels reported grade of 1-7% Cu, 200-900 g/t Ag, 0.6-5.9% Sb, 0.1-0.3% Co and 0.1-0.6% Ni. The Zemberg Vein system consists of three discrete vein sets, Severna, Hlavna and Juzna.
The mineral assemblage of the veins consists of siderite, ankerite, quartz, sulphides and abundant nickel-cobalt sulphide minerals. Minor siderite-barite and copper minerals are also present. Veins commonly display crack seal texture. Rozlozsnika, 1935 commented “Zemberg ore contained an average of 4% Cobalt and 16% Ni”
Sunday evening 7:54 pm EDT:
CLQ $1.44 Ozbucks in early trading.
What is OZ all time high?
Cannacord upgrade CLQ to $2 aud
Happening last week and this week
MEI Aus announcement of Commencement of Cobalt Exploration in Ontario of Mulligan and Iron Mask Properties.
Great property map of Iron Mask, showing outlines of MEI’s and Battery Mineral Resources holdings.
Seeing the outline of BMR’s holdings, I’m sure it’s a priority- DYOR/ DD – investment when it’s listed in IMO.
MEI’s website http://www.meteoric.com.au
Billville, it was the map on the MEI website that gave information on the BMR claim. They map shows the locations of the samples and old mine site.
The MEI cobalt claim is promising but the bulk of the deposit appears to be in the BMR territory. BMR has a half dozen good targets, plus the old mine. The deposit appears to run over into the MEI claim.
BMR cannot be purchased by public individuals yet as the IPO has not occurred and we do not know how it will be priced.
It’s odd to get information about Company A, on a website for Company B.
But that is how I found information on BMR.
MEI no position, favorably inclined
EUC Asx Tolga Kumova chairman & director says, the Company will be a leading player in the electric vehicle revolution.
Think what Tolga means that EUC aspires to be a leading player in the supply of metals.
I believe him, long EUC but only a half position.
Cleanteq is the cobalt whale for me because of the high degree of certainty about the company, and the virtual elimination of risk in construction, financing, permitting, jurisdiction, and management.
I am prepared to accept that other cobalt speculations s may give higher returns based on today’s prices; but they will carry more risk and longer time frames than Cleanteq.
Long CTEQF, EUC, PTNUF
CLQ (long)
Here is a link to the new CLQ slide deck released in connection with the AGM. Outstanding presentation – professionally packaged and chock full of great facts. http://www.cbltinc.com/assets/vital-metals.pdf
Yes, there’s something stimulating about seeing a lot of relevant facts all together
in one place.
It becomes clear that the EV revolution is about air pollution, not about global warming. The medical consequences of small particles in the bloodstream could make the auto industry vulnerable to the same type of lawsuits as the tobacco industry. The government itself set precedent with the VW punishment.
The EV revolution will be promoted under the “green” flag rather that the “Oh my God we are poisoning and killing everybody” flag. One wouldn’t want to emphasize something that anyone could sue over. But the Chinese urban populations were getting pretty pissed about it, because they are dying from pollution.
**
I had another thought similar in nature to this regarding the zombie-fication of the US population. I believe that the old cathode ray tube style TVs had very pernicious effects on the brain and nervous system of young children. This would only be acknowledged when the old technology is way back in the rear view mirror and flat screens have been the norm for 15 or 20 years.
When I was a young child TV was just starting. In primary and secondary school, “attention deficit disorder” was non-existent. Yet today, it is a commonplace disorder. Wonder why. Please don’t tell me it is because it wasn’t recognized, unless you can prove it.
**
“Yeah we poisoned and killed people with smog and wrecked their nervous systems with direct voltage beams onto the retina with old TVs but that was a long time ago
and we didn’t realize it. See how we fixed things ? Thank goodness for progress. ”
**
God forbid excessive radio transmissions be harmful to us. We are in an unescapable web of electromagnetic signals. If they are bad for us, we can be sure the information will never see the light of day.
HN Yes pollution must be curbed,especially from huge burns of our forests. CO2 may actually have a net cooling effect as the Greenhouse gas effect is primarily above 30 miles out and re-radiated heat goes mostly out to space and never reaches earth surface.
Plant more trees and farms. CO2 is not pollution to plant life.
They take in CO2 and put out oxygen.
The CO2 issue is completely bogus.
Whatever reason the EV revolution is happening there is money to be made for those in the right position at the right time HN. I have every reason to believe you are looking at all the right stuff here and are aware of the perils that are well established to thwart your sincere efforts to make gains. The forces working in opposition to us retail buyers are significant IMO, they will not let up. There is a ton of information re the perils related to the “web of electromagnetic signals” we are exposed to. Unfortunately many bell ringers are deemed conspiracy theorists and squashed by mainstream and ignored by those who dare not even consider what is actually happening in our world. The CIA coined the term “conspiracy theory” following the JFK assassination, the truth is currently being exposed re that event but no one is challenging the term used to distract truth seekers, or even just the ignorant, from understanding what actually happened or why. In Doug’s world the EV revolution is more about control than any other factor, keep them close to home but let em think they are experiencing freedom while cleaning up the place. Something along those lines. I have heard the term “unintended consequences” hundreds of times over the past few months however I give credit where credit is due and lean toward intentional disguised as innocence by the very groups that are the perpetrators and of course the dummies who want peace at any price. The social engineers are counting on the dummies, by all appearances the engineers will have their want satisfied. In the meantime there is still time to take advantage of opportunities that will put money in our pockets, I hope all here use a meaningful share of gains to buy physical metals and other hard assets that can offer a reasonable level of support to get through times to come. The large cap insiders are selling far more than they are buying, between $400-$1200 to $1 is a common ratio from week to week, take the hint as actions speak louder than words. You are a breath of fresh air IMO HN, thank you. Best.
Interesting read doug, read it a few times and image I’ll read it a few more, thanks, best SS.
BTL. Kind of interesting how much detail they put in there about VW and Tesla,
don’t you think ?
CLQ (long)
WW and Tesla focus is very interesting in the context of this AGM-oriented corporate presentation. One would expect to see a more generalized (vs. company-specific) focus so as not to slight other potential buyers of EV-related raw materials. On the other hand, this could be a pot-stirring clarion call to action to create a competitive battleground for lucrative off-take agreements.
Yes, I am now inclined to think there will NOT be offtake agreements with VW or Tesla. They will be politely referred to the futures market if they are not interested in a reasonable deal from Cleanteq’s point of view.
WHOA ! I erroneously thought for a moment that “AGM” was a trade conference, then I realized it is the Annual General Meeting of the company.
Is anyone in a position to find out for sure if Friedland and Riggall are going to be absent from the AGM ? If so,repeat IF SO, this is indication of something pretty earth-shaking.
I saw the IMARC calendar, but did not see anything that confirms the assertions about the
attendance of RF and SR at the AGM.
It has to be pretty important for the CEO and Chairman TO MISS THEIR OWN ANNUAL STOCKHOLDERS MEETING.
They are in London
If they are in London this may possibly be why
Anthony Milewski: LME Week Likely to Play Major Role in Nickel Pricing for 2018
https://www.youtube.com/watch?v=UQ9pJZGLQX4&feature=em-uploademail
Nearly on us as well – https://www.lme.com/en-GB/Education-and-events/Events/_Events_content/2017/11/China-Nickel-and-Cobalt-Forum
If this is indeed the case, then Robert Friedland and Sam Riggall have decided to eschew IMARC in Melbourne, which they may perhaps perceive as more of an academic conference, in favor of sleeves-rolled-up international deal-making, potential off-takes and contracts, at LME Week. This may be of great value not only for CleanTeQ but for RF’s other mining assets as well.
Great news overnight for CleanTeQ on the ASX btw.
Long CTEQF, IVPAF
LME cobalt/nickel contracts ?
Maybe Cleanteq is going to write calls on these metals.
That would enable them to sell forward contracts on production
WITHOUT OFFTAKE AGREEMENTS !
Way to go Ksand52 and Johnnn !
Johnn…your four words sure set off a lot of activity !
I think the date for the AGM is November 22.
IMARC is happening now.
CLQ (long)
The AGM is November 1st
http://www.cleanteq.com/investors/asx-announcements/
CLQ (long)
It was publicly disclosed at least 2 weeks ago that RF would not attend the AGM – but I believe the plan had been (until a few days ago) for Riggall to chair the general meeting. I agree with your premise that the absence of both CLQ helmsmen from the AGM indicates that big news is imminent.
BTL…it makes total sense for them to get the LME cobalt futures up and running, because then they don’t have to deal with uncooperative manufacturers to ensure off-take. Not only that, but then there is public pricing, which they need to establish even for contractual off-takes, because they have to refer to objective prices from somewhere.
I’m beginning to think that the Tesla and VW emphasis in the slide deck is just to rub it in. We know Tesla approached them, and Friedland said in effect “You can buy your cobalt and nickel at market prices like everybody else.” Now we know he wasn’t kidding. We also know VW played high-and-mighty on their cobalt procurement but then nobody gave them any bids, and they had to extend the tender offer. Friedland is publicly taking them to the woodshed and giving them a good spanking. Then he can solve their problem for them by selling futures on the market.
By emphasizing Tesla and VW, Friedland is publicizing their predicament; and also showing every other suppliers what they are up against.
By creation of a public futures market he will put teeth into his own negotiations, by-pass the necessity for face-to-face negotiations over off-take, and solve everybody’s supply problems with a simple supply-and -demand futures market. What a concept.
**
While he is at it, maybe he could make a futures market for scandium and vanadium.
CLQ (long)
Brilliant analysis of merits of supply-and-demand futures market for cobalt, HN! I do see a clear benefit to CLQ created by the ability to use cobalt futures prices as an objective standard in calculating the price to be paid by off-take partners. In that context, the off-take agreement parties could work toward maximum cost (user) protection and minimum price (CLQ revenue predictability) by negotiating “not less than [NLT]” and “not more than [NMT]” cost/pricing parameters for inclusion in binding offtake agreements. Such NLT and NMT would most likely be articulated in percentage of average cobalt futures prices {for selected date(s)} during the X-month period prior to order placement date or product delivery date.
Plus they can just off-load their production by selling forward production by contracts. Farmers do it all the time.
They do not even need to have off-take agreements, if they can sell call contracts on futures and options.
BTL…right you are.
I wonder, on the agenda there is the candidacy of Jiang Zhaobai for Director. A mere formality, of course. Jiang is co-chairman. I wonder if he will be there, and I wonder if he will make any announcements in the absence of RF at the meeting after his election.
Looking at it another way, if Friedland and Riggall are not present,
Jiang Zhaobai really should address the meeting since he is the Co-Chairman, equal to Friedland in rank.
But maybe Zhang is not going to be there either, or doesn’t want to be so visible, or doesn’t speak English, and they will drag in Mr Vogt, who founded the company.
“It was publicly disclosed… weeks ago that RF would not attend the AGM – but I believe the plan had been (until a few days ago) for Riggall to chair the general meeting.”
They even plan their disruptions in advance. But I guess this one is bigger than they expected.
$CTEQF…bought a big slug of it. I shot first and am going to ask questions later.
Have to sell something to raise the cash, but honestly I can’t think of another asset I would rather own right now.
…purchased this morning, just in time for another move in Oz Tuesday morning, with no news in sight. Wonder what it will be.
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I bet Jiang Zaobai makes an announcement at the AGM on Wednesday after his formal election as a Director.
He is Co-Chairman. It would be a nice introduction.
**
(Through a translator)
“Thank you. I am honored to be here yadda yadda yadda.
I am pleased to announce the following breaking news which I have just received from my colleague Mr. Robert Friedland, our other Co-Chairman, who is in London with our CEO Mr. Riggall. Cleanteq is pleased to report [EARTHSHAKING NEWS]…”
In addition, I have heard from our Chinese associates at Pengxin this morning ,and I can announce [MORE EARTHSHAKING NEWS] from China….”
**
The AGM is November 1. One day left before Something Big. It doesn’t need to be earth-shaking, but if it makes CLQ jump up some more, that would be good enough.
Happy Haloween ! It’s almost midnight. Do you know where your Cleanteq position is ?