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.
All things Uranium: Company research and thesis refinement
https://www.stockgumshoe.com/2017/11/microblog-all-things-uranium-company-research-and-thesis-refinement/
Thank YOU Levbrans! To subscribe send an e- mail to Lynn@stockgumshoe.com until the subscribe issue is resolved. Best2ALL!
Who is this for: Investors looking to make explosive profits with time horizons of multiple years
What is this for: Exchange of ideas for how to position a portfolio for the next bullish cycle in uranium
Why? After 30 hours of preliminary research, I have a strong feeling that we are on the cusp of the next Uranium bull market and would like to share some of the research and sources I have found as well as gather information from the collective knowledge of stock gumshoe members about how others are positioning their portfolios and companies which look especially appealing….
My copper stock got nice write up …..
https://www.streetwisereports.com/article/2017/10/30/excelsior-mining-very-close-to-being-fully-permitted-re-rating-awaits.html?_ga=2.226469786.1408487368.1510987065-885761955.151
Can you stand news of yet another breakthrough in battery design?
http://news.mit.edu/2017/air-breathing-battery-making-renewable-power-more-viable-grid-1011?utm_source&utm_medium&utm_campaign
I think the reporter is meaning megawatt hour cost not KW and if so this would make wind and solar much more viable. Nothing is given on recharge time/rate so cannot tell if usable in EVs. As reported likely use would be on power grid. This is extremely early so no competition to Cobalt Nickel Vanadium etc. for years probably. Still present batteries for EVs are likely to be soon [10 to 20 years] obsolete. IMO
I’ll be dead by 20 years …works for me
rubberworm Likewise. I doubt if I will last 20 months more.
I do not wish to rename you yet Frank! 🙂 Be4EverBlessed my friend 🙂 mentor. 🙂 Best2ALL 🙂 cuz… I met my 6th or 7th cousin Friday at ctrl+alt+del for the first time. His name is Michael.
You never know. Lots of medical breakthroughs on the bio thread.
But we could go tomorrow, too.
More clearly INEVITABLE than U308 price increases.
But not necessarily imminent, as Rick Rule would say.
arch1…I can countenance almost any battery breakthrough as long as the breakthrough utilizes metals I have heard of that Cleanteq can extract.
Especially cobalt and nickel.
$MEI.asx Just discovered this in my inbox http://www.resourcesrisingstars.com.au/news-article/meteoric-rise-meteoric-it-pushes-canada Please forgive me if already posted…. One of MEI’s three projects is nearology, and imo it’s chances are pretty good. The likelihood of not finding anything, after geophysical scans have confirmed the continuation of mineralization from the historic bonanza shaft 500m away, is close to nil. MEI does not stand or fall on Iron Mask either. The polymetallic Belleterre project has already been drilled and assayed by its former owners, who found plenty of Pt, Pd, Cu and Ni. It sounds like this is where MEI’s first drilling will happen so is the project that will advance first. According to this report, it’s the polymetallics with historical data that inspired Kumova to put in. https://hotcopper.com.au/threads/meteoric-rise-for-mei.3752883/page-72?post_id=28188471#.WhFqC0qnFdh
And thank YOU to the sender! 🙂 Best2ALL
$MEI.asx np – Cu,Ni > METEORIC RESOURCES NL (MEI)
Released between 20/11/2017 and 20/11/2017 http://www.asx.com.au/asx/statistics/announcements.do?by=asxCode&asxCode=MEI&timeframe=D&period=T
Congolese Cobalt sources…a recent idea came to us that there might be some compelling values in DRC cobalt suppliers, since everybody seems to be looking for other sources. People seem to be wanting anything with “cobalt” in the name or
project portfolio, as long as the company is not based in the DRC.
I’ve checked on a few but haven’t found anything suitable yet.
But remember, I don’t like big caps or conglomerates,
but someone else may not object to them.
A few of the contestants:
Katanga…big player but has huge debt. It would be hard for me to sleep at night, between the visions of AK47s, bankruptcy takeover, and cobalt spot price volatility.
Mandini…based in South Africa. Nothing compelling.
Eurasian Resources….Kazakh and Russian backed. I’ll pass.
African Rainbow…diversified operator based in J-burg
Lundin….good name but big cap
Norilsk….Russian diversified big cap
So nothing yet. Grass looks greener is Australia and Canada, even Slovakia;
but I will keep checking and advise if I find anything.
I think you are on right track n Australia and Canada as that gives great diversity of terrain. Canadian Shield has been scraped down by glaciation to some of the oldest rock on earth with numerous meteor strikes exposed and Western Canada has uplift and volcanism recycling old sea bottom sedimentation. Australia is roughly the size of the US with a tenth of the population and so is largely unexplored. Ancient sea bottom sedimentary rock. Some deeply buried and uplifted igneous hard rock. Over time everything is recycled, accumulated in the low points, Ocean bottoms.
BTW only in the last 100 years have glaciers receded far enough to make much of Canada exploration possible and it is unknown how soon they will return. In the time of the Viking, Eric the Red, Glaciation and sea ice would have been far less than now with NW passage open, possibly for months each summer season. Where did Vikings find the metal for their far advanced swords? Space alloy from a meteor/asteroid? Sudbury was a big one.
Vale mines there & also Voiseys Bay.
http://www.vale.com/canada/en/business/mining/nickel/vale-canada/voiseys-bay/pages/default.aspx
From the Garibaldi website 11/20/2017 news:
Discovery Zone Hole 14 Highlights:
EL-17-14, completed to a depth of 252 meters, was collared 200 meters east of the historic main zone and was drilled toward the west with the 16.7-meter massive sulphide section closely approximating true width;
Significantly, the massive sulphide intercept is within the host country rocks;
Structural features have created pathways for massive sulphide concentration in this new discovery area, and the next drill holes will trace these structures to determine the full extent and shape of this zone as Garibaldi continues to expand northwest British Columbia’s first nickel sulphide discovery in the heart of a producing high-grade gold Camp.
$GGI…long…IMO this is bullsh&t. We are getting editorials on partial assays. Hole 14 was collared 200 meters away from a known deposit and drilled back towards the known deposit and hit an intersection. Wow.
Very pissed at these guys. Still no results. The release is very confusing, they trumpet hole 14 but refer to hole 4 and no assays released.
$GGI…They went 200 meters away from a known deposit, drilled towards it, and hit something.
Big deal. It is like an infill hole.
http://www.alphaminingblog.com/2017/11/after-7-weeks-reality-bites-and.html
Ggi article
To me this one stunk from the beginning, but these can be played to perfection. While hindsight is 20/20, the clear play here was to sell before the drill release. Get in early, let the hype blow up the stock price, and get out quick. Just don’t fall for the hype. There is so much sucker money in metals investing, once you figure out the game, its ripe for the taking. Even though you are picking from the bones left by the insiders, there is still enough meat to go around. You have to be a contrarian, because the market will be continuously trying to push you in the direction that will make someone else money, not you.
Just a $GGIFF/$MLTFF update from GIL Newsletter”:
Garibaldi Resources (GGI/GGIFF) released a map on Monday but it doesn’t tell me all that much. I don’t think they are hiding anything and more data will be out very soon. The bottom line is that this discovery is the real deal and has massive potential, but it is early days, and we are just starting the winter months where drilling in the Golden Triangle is very difficult, if not impossible at times. I would like to see GGI recapture and hold the 50 day moving average this week, which could easily occur with new assays that investors view favorably.
Thanks deanbob appreciated
$GVXXF, $ESKYF no position…very thinly traded nanocaps, but I am beginning to wonder about the reach of our thread. Both are up strongly early today after being discussed over the weekend.
$GVXXF $ESKYF should be on other threads, sorry.
Somebody else looking into fly ash gold …
http://www.mining.com/scientists-produce-high-grade-rare-earths-coal/
CleanTeq competition?
“In parallel, scandium was efficiently separated from the other elements through this new recovery process. The rare earth, which is highly used in aerospace and lighting, was also concentrated as a separate product from the circuit.”
Looks to be article is about mining the coal itself. Was thinking CLQ may be looking at fly ash. Wonder whar other elements this process in article could find and what $ profits my be ?
rubberworm…I suspect that is why Friedland has shown interest in two Chinese coal companies.
We know for sure is is not interested in coal. He is the Angel of Death for coal. So why would he be interested in coal companies ?
Because he can extract valuable minerals from the coal waste.
Cleanteq competition…other companies can enter. It’s a big world out there. But any competitor is going to have to put together a pretty tremendous package to be taken seriously compared to Cleanteq.
Forget about how good or versatile their technology may be. Cleanteq’s
partnerships, contacts, technologies, expertise, marketing, capital, and distribution give them a tremendous advantage.
There is a very wide head start and a market that is so large it is difficult to envision Cleanteq being impacted by competition for many years.
Others can get a start and might be successful, maybe they will even be good investments. But this will not mean that Cleanteq’s prospects are dimmed.
Clean Teq
Any ideas why the recent pullback? The stock is getting hammered. Profit-taking?
Aussie flippers … Thier market opens before ours and takes us down with them. For the most part US market would trade higher. Aussie spanking is hitting our butts here now. Can’t wait til TSX opens . JMHO.
Funny you say that rubber worm, Aussies say the same about your market.
The trouble with the ASX spec stocks – not referring to CLQ – is that the short term traders are going from stock to stock, chasing the hot stocks of the day.
In many cases selling stocks which have solid fundamentals – for a spec stock – chasing the quick dollar!
Williamstown, There is not a problem in any market. Without ‘penny flippers’ there would be MUCH less activity and much less market exposure. Just like everything in life, all have a purpose and role to play. imho. https://www.stockgumshoe.com/2017/02/microblog-scandium-cobalt-and-water-purification-cleanteq-holdings/comment-page-13/#comment-4960963 To each his own; Live and let live! Best2All
tunez https://www.youtube.com/watch?v=O8Ja4u8_RGQ
I came to here via goggle cause I like CLQ. I watch the markets . For the most part US market has traded higher then Aussie market. Now even US market hit the …. Williams Ville does done Great making in his calls . Canadians are good at mining . Between the few US investors and Canadians shares will come to North America.
I heard Aussies are sheep and will follow. Perhaps why RF wants TSX.
Ben not saying it’s a problem, just why there is so many sp fluctuations in the speculative end of the market.
This is happening regularly on the ASX.
Dang right Aussie flippers…Say thank you and buy…. I have no mo cash myself. ..poor me.
Penny stocks are often called junk stocks for a reason. Most of such speculative investments fail long term. Traders still love them to pump and dump because low volume makes them respond quickly to sudden change. Often such traders are the only ones who make any money on them excep for the company officers and board of directors drawing inflated salaries as long as they can keep buyers coming in.
Sure well over 90% fail… find the right gem make a killing. Never really heard of CLQ. Saw news of what 80 mil aussie coming in from China. China buys in late in sure bets English buy in first and take risk. Canadians know mining.
Party has not started yet. CLQ has lots of shars out. But looks like they might try to hold that # down.
Caveat emptor
The fact that institutions are probably selling and getting ready for new investments in the form of debt, convertiables, and some form of kicker. They are in the market looking to raise financing. That always puts pressure on and churns the market. Others may wait to see how generous they are. TSX should help a bit – if it was a new or additional issue , I would think it would be close by now.
$ARRRF Dang glad I reduced 2/3 of position today! Most of 82% gain saved 🙂 Selling peaks, buying dips, bullish trend Cobalt
Thank You HendrixNuzzles and Metals Gummunity for allowing me to join you on this incredible journey we call life! @H0U3
HN, on entries, I practice with real $ on nano stocks especially those that have 25-60%+ declines that day! May locate those using twitter or maybe if you’d like I shall start posting on $ZTNE #RKTZ thread https://www.stockgumshoe.com/2016/05/microblog-ztne-rktz/
ALL SoGiAm with last 20 posts may be located here: > https://www.stockgumshoe.com/author/sogiam/
Also highly recommend joining @twiiter @H0U3 Best2ALL
What institution is selling ? SP is very high. CLQ has dept funding lined up. SP is very high for a company that has not even finished FS. It is very high because RF and interests in China are laying big bucks down because this will be one of the biggest hits one ever saw. CLQ has a pension fund loaded to the max also. The only ones selling now are penny flippers. IMHO this will be one of the best stocks to own over the next ten years. Tell me what institution selling? Name one!
I don’t think there are many institutions that have positions to sell.
This is still a micro-cap to the big money. When they come in the stock will rise like a tidal wave swelling up.
$CLQ pricing…so far there is nothing in the price levels that is outside a normal Fibonacci retracement. Sentiment can change all by itself, especially after a stock hits new highs. Nothing fundamental has changed as far as I can see.
Might be a good time for those on the sidelines to get into the game.
More energy storage,,, maybe.
http://www.ibtimes.co.uk/could-this-groundbreaking-all-one-solar-energy-device-bring-cheap-hydrogen-cars-masses-1648270
Ardea came out with their flow sheet, and it is interesting to compare to cleanteq’s. I don’t have any expertise in this at all. They decided to go with HPAL using an autoclave. They then pull their scandium out using ion exchange, put it thru its own circuit, and produce scandium oxide. Then you have a bunch of other steps that result in high purity nickel and cobalt sulphates. It looks very similar to the cleanteq flow sheet. I’d be real curious to understand the differences, and a costs and benefits comparison to more fully understand what cleanteq’s advantages may or may not be in whatever it is that is “proprietary” to them.
renby…I think the critical elements will be time and cost, in terms of understanding the total processing situation.
TIME…if Ardea needs financing and autoclaves, the uncertainty and lead times can be “ballparked” to a minimum. There is a chance that their autoclaves will be a shorter lead time item than the ones at Sunrise; all we really can be fairly sure of is that if they want one comparable to the pair procured by Cleanteq, it is a three-year lead time from the moment it is ordered. The order probably requires a money deposit, which leads us to financing.
FINANCING…While the final finance package has not been determined for Sunrise, you can be sure it is being lined up now since they already have named the lead banks. The impact of their Bankable Feasibility Study is just a formality, it will be good enough to get a bank loan.
This is not the case with Ardea. They will likely need the DFS to get their financing. Just my opinion. But it is another time-related element that compared to Cleanteq will put them farther behind. They need free cssh to order the autoclave. The lead time for the autoclave, until proven otherwise, is measured in years. Three years, until shown otherwise.
I am in not negative on Ardea, other than with respect to these issues compared to Cleanteq. I was long Ardea and wish to re-establish a position, it is a top-rate cobalt speculation IMO. But my guess is that Cleanteq will be in production when Ardea is waiting for their autoclave.
In my opinion the best way to keep a grip on Ardea’s timetable to production is to get an answer from IR as to whether the autoclave is on order. As long as the answer is “It is not on order”, then the timetable is indeterminate. The day they say “It is ordered”, then you have roughly a three year lead time to production…unless they have capacity at a neighbor’s autoclave, make a credible statement to the contrary, or find one at a mining yard sale like Cleanteq did.
Show me the autoclave !
CTEQF long
ARRRF no position, very favorably inclined
$ARRRF/$CTEQF…I mentioned costs. We can try to get into the processing differences but the simple way to compare costs will be from the Feasibility Studies. Those will have as much detail as can be expected, calculated by people far more qualified than we are.
My expectation would be that any other operator will do well to come close to Cleanteq on production costs. Since I expect Cleanteq to be the best, it will not be highly detrimental to another project to have somewhat higher costs of production. A lower cost of production would be an unexpected surprise and worthy of notice, as far as I am concerned.
I say this with respect to scandium and cobalt, because there are not many
primary producers of cobalt ourside the DRC or of scandium anywhere.
On nickel I am not sure what to expect. Obviously there are large scle nickel producers, but it remains to be seen whether Cleanteq’s methods ill give them an advantage against larger producers, or not.
$ARRRF/$CTEQF: I don’t have too much concern for first to market. I am very confident CTEQF will stay close to projections on timing, and I assume Ardea is about 18 months behind, but even if it is longer, I have no concern, because I like Ardea enough to consider it a long term hold [3-5 years]. I go by the assumption that any australian company that can produce battery grade nickel and cobalt sulphate will be able to sell it out by the time they finish their mine. Competition is less relevant when the demand is greater than the supply. And Ardea has the cobalt motherlode. So the main question is relative valuation, if you go just by cobalt/nickel deposit, ardea and cleanteq should be valued about the same, though you could make a case for Ardea on the basis of nickel quantity and grade, plus cobalt quantity. off course, we know all the reasons cleanteq gets a way higher valuation. But Cleanteq is now valued at 7X Ardea. That differential for how things stand right now is way out of whack, IMO. Even if Ardea doubles, a 3.5X difference is probably still too big a gap, unless we see significant revenue from the water division. So I am scraping together the $ to double my Ardea investment, since it has given us a significant retrace opportunity. I believe this retrace is a manipulation down by big money in an accumulation phase, the ASX is an unbelievable manipulated entity it seems to me. I noticed one of your readers got shaken out, and I expect the stock price to continue on an upward trajectory and can see a 4 bagger from here pretty easily, are you kidding, biggest cobalt deposit in the civilized world with a 100M market cap, how can that not be worth multiples. When I double Ardea I will still have like 8X more cleanteq, I don’t put them in the same class with the connections that company has, and potential income streams, but I thing Ardea may do significantly better over the next 12 months, we’ll see. And yes, comparing the FS’s between these two companies when they come out 1Q18 will be interesting and very informational, since the deposits to be mined will be virtually identical, and Ardea will use the tried and true method, and cleanteq their own proprietary method. Popcorn ready.
We see the factors differently and may have different reasons, but in the end our investment profiles will be similar.
No issues with Ardea it is a very good in-the-ground metal play. So I agree and I intend to re-enter. But the investment size will not be comparable to my Cleanteq position.
Renby: first to market is not an overwhelming advantage, but it is a strong one for cobalt, and a very strong one in scandium. It may not knock anybody out of the ring, but it is an advantage that should give a major valuation differential to Cleanteq.
As you say, the other guys in the race may be unreasonably discounted on account of this.
COBALT Cleanteq being closest to production should also be closest to landing off-takes and setting price from a position of strength. They will get the pick of the best customers earlier than anyone else. Their valuation should reflect the certainty and safety of this,
In addition, their financial forecast will take credible shape before the other competitors. They will have a stronger justification and stronger evidence for their figures, hence better multiples.
Again, we may feel there are speculative opportunities on account of this.
SCANDIUM I think Cleanteq being first to market in this sector is a more formidable advantage in terms of their position in a specific metal. They will have the aforementioned advantages as in cobalt; but they are in even a stronger position because there is much less competition in scandium than there is in cobalt. I believe they will essentially be in a position to create the enlarged scandium market, not just take advantage or respond to the market.
I think they will essentially BE the market, and because of their accounting they will have a great deal of latitude in their pricing as well as the supply coming on-board. They will be in a position to really discomfort any scandium competitors becasue they have such flexibility on pricing.
NICKEL being first has no discernible advantage since there are many large nickel producers already. But they will be able to bundle their nickel production with the hot cobalt demand.
Scandium is going to be interesting. I am not sure on the timing of the market, and the ultimate selling price, but I fully agree cleanteq is advantaged in this arena. To me its so different from cobalt, With cobalt, I don’t think any of the australian nickel and cobalt sulphate producers will have any problem selling it, so its just a matter of how high the price will get. With scandium, all the producers will be fighting for all of the potential contracts of substance, and I think that will put huge downward price pressure in the early days. Down the road, nobody can really accurately predict the supply/demand quotients for scandium for any particular year in the future. Early to market will help with the early contracts, as long as one can provide confidence of a reliable long term supply. Stockpiling will help in this regard. I have already written on why I think scandium-as-main-play companies are in trouble. A company like cleanteq who can produce substantial amounts of scandium almost for free as a by-product will be positioned to make some early money, and very well positioned to cash in big time if the market ever heats up in the longer term future.
I have never expressed this, but I also think primary nickel plays are a bad long term investment idea. In the short term, that is a different story. I think we will see way higher nickel prices sometime in the next 2-3 years, but it won’t last. The cobalt cliff will change the landscape. For the first time, cobalt will be mined as a primary, and nickel will be the by-product. Since cobalt is usually found with an average 1:12 nickel ratio, all this new and revived nickel will get flooded onto the market, which should easily fill in the increasing nickel demand, and exert downward pressure on its price. Any nickel project that is low cobalt may get rendered uneconomical.
blieve seeking alpha guy said scandium future is way down the road from now.
Why does he say that ? What facts are the author’s opinions based on ?
In a “normal” situation with a new alloy with a tiny sales volume, I can understand some caution and conservatism for the timetable of eventual uptake.
But the situation in scandium is not “normal”.
Here are some facts about the scandium situation and the existing state of development of scandium oxide:
Friedland has stated that he has intimate, high-level contacts with major auto and aerospace manufacturers. Plural. This is in addition to his contacts with high level industrial people in China.
The application of scan/alu alloys is not theoretical. Manuafacturers and metallurgists have known about their improved properties of scan/alu alloys for decades.
The Russians even manufactured MiGs out of the material decades ago. The bottleneck issues are of supply and price of scandium, and the lead times needed for new high tech vessels. Technical know-how is not really an issue.
We know Friedland is very tight with Airbus.
There are very sophisticated test products already manufactured by Airbus R&D by computerized 3d printing of scan/alu alloys. See the motorcycle manufactured by the R&D division of Airbus that featured on the Cleanteq and the Platina Resources websites, complete with general specifications like weight, range, and acceleration.
Airbus is already marketing and wholesaling scandium oxide pellets for 3d printing applications. They would not be doing this if they themselves were not experienced in applications.
In my opinion it will be relatively simple and fast to apply scan/alu alloys to less rigorous structural applications in freight trucks, trains, and other vessels where weight and strength are important. So we are not dependent on very long-lead times in aviation and aerospace, although granted it takes a long time to develop a new jumbo jet or military plane.
On he contrary, I would think that the volumes needed to retool trucks and containers are probably greater than those that would be needed in a new model of a commercial jet, and the applications can be implemented faster.
$CTEQF – Clean TeQ has today announced that the autoclaves purchased for the Clean TeQ Sunrise Project in New South Wales have arrived at Port Pirie.
http://clients3.weblink.com.au/pdf/CLQ/01925548.pdf
CTEQF long
How timely.
https://www.stockgumshoe.com/2017/02/microblog-scandium-cobalt-and-water-purification-cleanteq-holdings/comment-page-13/#comment-4961233
NCZ.asx and MEI.asx Halted NEW CENTURY RESOURCES LIMITED (NCZ) Released between 24/11/2017 and 24/11/2017 Century Tailings Restart http://www.asx.com.au/asx/statistics/announcements.do?by=asxCode&asxCode=NCZ&timeframe=D&period=T
METEORIC RESOURCES NL (MEI) Released between 24/11/2017 and 24/11/2017 http://www.asx.com.au/asxpdf/20171124/pdf/43pk17xt122n46.pdf
Some more: HRR.asx? http://www.asx.com.au/asx/markets/equityPrices.do?by=asxCodes&asxCodes=auz+clq+euc+jrv+ncz+pgm+arl+mei+hrr+cob $COB long Hope US folks njoied their turkey and time with family! Best2ALL 🙂
$COB.asx long – AGM presentation (halted)
http://www.asx.com.au/asxpdf/20171124/pdf/43pjts00d39g6r.pdf
Have an awesome week and beyond ALL Looking at ZBG and others for y’all. 🙂 Have we looked at HRR, HER.tsx? Best2ALL! 🙂
$MEI
Hi Ben, can you please tell me how many different stock titles do have in ur portfolio? It seems like all of them 😀
You are so fast with news as well, I found out about these halts few hours ago and its already here 😉
Gonna go long on $MEI once they lift the halt (Tuesday?) Reason for the halt is PP, right? Exciting. Lets see what happens afterwards..
#Several $MAG, $ARRRF, $CTEQF, AUX.asx, $COB, $ERDCF, $CRDMF, LNCZF, $CLASF, $ ECSIF…. #Metals
What is important is not so much how long you live as whether you live a meaningful life. This doesn’t mean accumulating money and fame, but being of service to your fellow human beings. It means helping others if you can, but even if you can’t do that, at least not harming them.
https://twitter.com/DalaiLama/status/934006440859090944
Plan to hit the Goodwill store at 9 a.m. 50% OFF 🙂
| 🙂 Best2ALL! 🙂 )>>>>BenJammin’_______>
Another Aussie stock close to CLQ covered in article on website of Hot Copper. Know nothing about this stock.
VIC to Accelerate Cobalt and
Scandium Expansion
Victory Mines (ASX:VIC) is looking to move swiftly on its NSW assets – Husky and Malamute – with plans already underway to send a geology team to commence a high-level exploration strategy.
The team’s focus will be identifying cobalt and scandium mineralisation across the two tenements.
As it expedites the due diligence process for the proposed acquisition of its highlyprospective cobalt and scandium projects, VIC will accelerate its exploration strategy as soon as possible.
One reason for this is its close proximity to the $852.5 million capped Clean TeQ’s (ASX:CLQ) Sunrise nickel/cobalt/scandium project.
VIC… as an exploration play it does not merit the same weight one would give to CleanTeq, or even to Ardea or Platina.
The hierarchy is:
Exploration…need to find something (VIC)
Developer…found something, would like to move towards building a mine (PGM, ARRRF)
Advanced Developer…looks like a mine is going to get built (CLQ)
Producer…they have a mine and are producing (CLQ almost)
VIC could find something good, maybe they will; but just because they are looking for scandium and cobalt they should not be lumped in with CLQ or the others who have established that they have a deposit worth developing.
Kiwi, we appreciate getting new ideas and I did not mean to sound negative on VIC.
I only meant to point up the undeveloped nature of the company.
Exploration prospects are very interesting; I just meant to emphasize it is an early stage explorer, not a developer.
Appreciate your comment HN. Did not take it as negative.Really appreciate all your inputs from the gumunity.Have taken, for me, a large position in CLQ thanks to you all.
🙂 #UNDER_the_HOOD of StockGuimshoe :
1. https://www.stockgumshoe.com/2014/11/first-steps-and-favorite-tools-for-new-investors/ Suggest beginning at Page 1.
#Tunez 4 the journey: https://www.stockgumshoe.com/2016/05/microblog-magical-music-mystery-mining/comment-page-2/#comment-4916591
2. Use the following logic to discover any author’s/member’s, (anyone who has utilized ‘Start a discussion’) threads/blogs, This example is hipockets threads: https://www.stockgumshoe.com/author/hipockets/
May locate their threads by clicking on avatar/image located to the left of any post. This also renders a view of author’s most recent 20 comments. 🙂
“Any fool can criticize, condemn, complain; most fools do”~ #BenjaminFranklin
https://twitter.com/veteranhank/status/934357815107489792
🙂 Long #G8Gummunity; #Responsibly #Sharing and #Caring. Best2ALL! 🙂
Long (CTEQF)
Palisade Radio
Published on Nov 21, 2017 from the Hard Assets Conference on Jekyll Island
Mike Beck: Nickel, Cobalt, and Lithium to Benefit from Generational Demand Shift in Commodities
https://www.youtube.com/watch?v=b_Kl5HYxKq4&feature=em-uploademail
I listed it on this thread because he covers the future demands on the nickel, cobalt, and lithium in regards to the EV market going forward
SoGiAm you may want to share this link with Your EV group witch I have not subscribed to yet, so I do not have that link, but I think they will enjoy
$CTEQF Long, CLQ.asx – Thank you, KSand52, Done, with link to EV thread: https://www.stockgumshoe.com/2017/10/microblog-ev-vehicles-october-02-17-beyond/comment-page-1/#comment-4961451 #Best2ALL!
Stockdale very good comment … makes me laugh…
” Ben Stockdale, the mining firm’s chief financial officer, quips that the biggest risk with Clean TeQ is that its miners “die of boredom”—the mine is on flat, featureless land.”
https://www.economist.com/news/business/21731676-speculators-are-piling-thanks-strong-demand-chinas-electric-vehicle
Ha. Boring is good.
So Stockdale has identified miner boredom as major risk.
In a previous post I noted that we are risking investor portfolio boredom by having a monster position in Cleanteq satisfy our need for speculative excitement in cobalt, nickel, scandium, water purification, vacanadium, gold, and uranium.
#Following… #Cobalt price to new multi year high crossing at US$64,250 on the LME as carmakers @BMW @Volkswagen @Tesla etc scramble to secure supply for #EVRevolution #ASX #giddyupAlex Lewit added,
Alex Lewit @alexlewit https://twitter.com/alexlewit/status/935127531262394368
Tunez: https://vimeo.com/52383325 @H0U3
Cobalt contracts…great find, Ben.
A couple things. Is the quote for metric or English tons ? I couldn’t tell.
Also the LME seems to be owned by a Chinese company; and the out-months show lower prices and wider bid/asks than immediate delivery.
The contract volume is about 700 contracts.
“important raw materials for the innovation location Germany are threatening to become scarce. Demand is significantly greater than supply, experts warn. The high dependency on imports, for example in e-mobility, is also a problem.
According to warnings from industry, the German economy is heading for dramatic raw material shortages – partly because of the foreseeable trend towards e-mobility. “The danger of bottlenecks in raw material supply is increasing because the demand is growing faster than the production capacity,” said Matthias Wachter, commodities expert at the Federation of German Industries (BDI), the newspaper “Welt am Sonntag.” “Without adequate supply, for example with cobalt, graphite, lithium or manganese there will be no future technologies ‘Made in Germany’. ”
The German Raw Materials Agency (Dera) points out that the German economy relies entirely on imports of the raw materials needed to build batteries for electric cars. “60 percent of globally required cobalt comes from the Congo, 70 percent of graphite from China,” said Dera expert Torsten Brandenburg the newspaper.
Of the mineral raw materials examined by Dera, only twelve were classified in the group with “low procurement risks”. “In all other cases, there are either only a few suppliers or the raw materials are promoted in countries with increased political risks,” said Brandenburg.
Particularly critical is currently the situation with cobalt and graphite, the two fuels for the batteries of e-cars. Although there are rich deposits on earth, only a few countries are ready to mine these raw materials – also because this is associated with significant environmental pollution.”
https://www.n-tv.de/wirtschaft/Industrie-warnt-vor-Rohstoffengpaessen-article20152323.html
Germany is a country the size of Oregon that has an economy based largely on exports of industrial manufacturing with high technology.
Makes me feel pretty comfy with position in EUC.
Well it’s bigger than Oregon and New Mexico but smaller than Montana.
EUC AGM tomorrow, assays due mid Dec.
Few announcements have been made but awaiting assays which is the main one.
$CTEQF…chart action…I am far from a specialist in the arcane world of technical analysis, but the recent action of Cleanteq makes me think that the recent move up has been digested and that a new leg up is around the corner.
Since the recent spike up, the price action has covered a prior gap ,and the range seems to be tightening right around current levels, with decreasing volume and tightening daily ranges. The stock volume seems to be drying up
and it looks to me that the stock is getting ready for another move.
This generates no action from me at all since I am fully invested in it.
Just trying my hand at a little short-term prediction. There could be a short
test downwards to shake out those of little faith; but I think we will see $1.50 by year-end.
🙂 $PTNUF Added ICYMI 🙂 7600 Trombonez in the BIG parade: https://www.youtube.com/watch?v=eBQWsBiM5YY ThankYOU! #HendrixNuzzlez 🙂 Long May you Run! 🙂 https://www.youtube.com/watch?v=WYna-UAt75c 🙂 Best2ALL 🙂
Music Man https://www.youtube.com/watch?v=LI_Oe-jtgdI 🙂
$EUC np – NEWS http://www.asx.com.au/asxpdf/20171128/pdf/43pn5gg3nfm0qh.pdf
$NCZ news Price sensitive announcement
OUTSTANDING FEASIBILITY RESULTS FOR CENTURY MINE RESTART http://www.asx.com.au/asxpdf/20171128/pdf/43pn3pvq59yjz5.pdf
$PGM November 2017 presentation http://www.asx.com.au/asxpdf/20171128/pdf/43pn9sfv8l99lj.pdf
$MEI np – METEORIC RESOURCES NL (MEI)
Released between 28/11/2017 and 28/11/2017
28/11/2017 asterix $4.34 Million Capital Raising to Fund 2018 Exploration
http://www.asx.com.au/asxpdf/20171128/pdf/43pn69cjy4zvt5.pdf
Whipping boy $OUT bully astard
$CLQ Good call, just added with the uptick. Also started position in $COB, $MEI, $ARL and $PGM (as CLQ was my only play in here so far).
Btw, some people are concerned, that CLQ might enter dead space (from sp perspective) during construction.. I think it should be counterweighted with increasing interest of “somewhat late” investors coming into the sector and hopefully continuous increase in metal prices. Your opinion? Thank you, sir.
$CLQ fp – I concur; as well as tsx +, H2O, African partners, JV’s RF vision… 😉 Best2YOU 🙂
3043 comment….time for part II HN?
🙂 #Thx4AllUgiveChief! 🙂
Cleanteq part 2…the one year thread anniversary is coming in February. We’ll play it by ear to see if anything ultra-dramatic happens before then. There may be a good break point with New Years and news; who knows ?
#Sunset_Project https://youtu.be/fV12pcyDJAQ
Just took 170 seconds for thisj post to complete…
Thx HendixNuzzlez 😉 $Long $CLQ https://www.stockgumshoe.com/2014/10/microblog-wow-you-guyz-and-galz-are-incredible/comment-page-2/#comment-4961848
Heads up CLQ. I note a sudden uptick in volume and deal size mid session today (actually yestrday from where I sit in Wales). What have I missed?
My opinion is that the best strategy is to not listen to anybody on this stock, and just accumulate as much of it as you can stand as fast as you can before everybody and his brother knows about it.
Then my strategy would be do sit there and do nothing until cobalt is shipping. During that time the water and virtual mining contracts will be coming in.
Furthemore, that will be enough time to get action in cobalt and nickel and scandium prices. God knows where they will be by then, and one has to have enough patience to wait for the moves.
I have said from the beginning that I am big game hunting. We have a loaded high powered rifle and an elephant in the crosshairs. I am not going to get distracted to waste ammunition on a monkey or pull the trigger prematurely.
I would never kill an elephant. Hunting and shooting one is just a metaphor.
$CLQ $CTEQF portfolio strategy
A new poster suggested that Cleanteq stock might go through a “lull” during construction, and that a short-term change in position might be justified on account of this and generate a profit.
A short-term trader might benefit from this strategy. It could work, and a trader following this idea might profit.
But a long-term investor is taking a grave and unnecessary risk with this strategy.
It is NOT the strategy of a long-term investor, it is applying a short-term trading strategy to a long-term holding. It is inconsistent, and in the case of Cleanteq I think it is worse than that…I believe the odds are that it would fail.
My reasons for this opinion are that there are many definite catalysts ahead that could send the stock up during the same construction period.
And I am saying “definite catalysts ahead.” THEY ARE GOING TO HAPPEN, the question is when and how much they will affect the stock price. The chances are that more than one of them is going to occur during construction, which after all is only from now to 1st half 2019. Here is a list of them:
1. Cobalt price move
2. Nickel price move
3. Scandium price move…up or down, either is good
4. More offtake agreements
5. More water contracts from China
6. Water contracts outside China
7. Announcement of first gold or uranium “virtual mine”
8. Announcement of more African mining contracts from Multotec
9. Coal and fossil fuel extraction contract, China first
10. TSX listing
And so on and so forth. I could think of ten others. There is also a pretty good chance that the Hendrixnuzzles Reverse Analyst Coverage Ratio will remain favorable:
Remember that of the seven reputable sources for analysis on the Charles Schwab brokerage module, NONE of them even covered Cleanteq. I quipped that if four or less of them covered Cleanteq, it was still a “buy”, and that one should only consider selling when six or more of them gave enough notice to publish a report on it.
In other words, for practical intents and purposes, the stock is still unknown.
I have also remarked that there is more danger to one’s financial prospects by being out of the stock than there is by being in it. I stand by this statement.
**
In today’s world we are constantly distracted. People have an agenda, and more often than not it involves distracting us and taking our time and attention.
There are dozens and dozens of newsletters and experts who must try to get our attention, credibility, and money. Some might have good ideas, some might have
stocks that will appreciate more than Cleanteq. But I have a great deal of
justified, self-generated conviction on this stock, and I consider anything that distracts me from realizing a major, major gain in it to be a pernicious influence that is to be resisted.
In connection with distraction, we have noticed BOREDOM creeping in as an investment factor. I know it is somewhat boring to stay on one stock. There are thousands of them out there, there lots of opportunities. But I know this one pretty well, and another stock has to be pretty sure and good for me to consider reducing my position in Clean Teq Holdings.
Long Cleanteq
HN
1. Thanks for keeping us focussed.
2. If there ever was a speculative stock to tempt me to go overweight on, CLQ is the one.
3. You are totally correct re boredom.
4. The same thing is happening with some of our longer term bio picks from Dr. Relentless.
Hedy, all the rules are out the window for me on this one.
I suppose part of it may be pride of authorship, so I need to be careful.
We need to stay objective. But we have had a lot of give-and-take since February, and nothing negative has come to light.
I really found it on my own, no newsletters, no tips, no nothing.
Nothing published on it that I could find. Nobody recommended it, not even Friedland fans like Rick Rule.
The more I dug into it, the more it became fascinating.And it is exceeding all expectations…every move by management is perfect. Every release meets or exceeds what one could hope for. The daily ups and downs are just noise, Friedland just sticks to his knitting and overdelivers.
So far, so good.
Long Clean Teq
HN, you have laid just about all, if not all, of the publicly available info there is on CleanTeq for some time now. While I have a full position and a nice profit, if I have any regrets it is not taking a larger position following my first read and DD back in July. I have no one to blame but myself. One plus I might add to your ‘long term’ list is a lower capital gains tax (at least based on current tax law)!
Deanbob, we search and search for great investments speculations. Cleanteq is a speculation that has about as much certainty about it that one could ask for.
We have a unique combination of new technology, hot metal commodities, supply constrictions, tie-ins with China, top management, low jurisdiction and finance risk. It has tremendous potential because of its utility in the environmental movement. It is a company that is under the radar in market cap and home domicile and exchange. The fact that the mine is not built yet just serves to allow us an opportunity to accumulate it before it is well-known.
When we find a speculation that checks all the boxes, we should act on it.
We can hop around and read the other teasers. And I do have other investments and speculations.
But I do not think I am likely to find as sure a speculation as this one.
Even if I were to come across one, it would take an extended period of due diligence to be
persuaded of it and to take a position of any size.
We as a group probably know Clean Teq better than most of the people who are speculating in it.
Deanbob, we search and search for great investments speculations. Cleanteq is a speculation that has about as much certainty about it that one could ask for.
We have a unique combination of new technology, hot metal commodities, supply constrictions, tie-ins with China, top management, low jurisdiction and finance risk. It has tremendous potential because of its utility in the environmental movement.
It is a company that is under the radar in market cap and home domicile and exchange.
It has been masterminded and managed by the very best individual one could hope for. I do not think I exaggerate to say Friedland is a genius. And he is not an academic, ivory-tower genius; he is an exceptional manager and executive, with tremendous vision, a Herculean work ethic, and a track record of proven success that is second to none.
When he is finished, he will leave an unparalleled legacy. Already there is Oyu Tolghoi and Voisey’s Bay. Ivanhoe Mines will have three legendary mines, each one tops in its category; and then we have Cleanteq in mining and water purification; and HPX, plus other potential stars in the bullpen like CDBMF and FEXXF and GVXXF. I also predict he will revolutionize mining with the Clean i-X technology, and build a powerhouse of “virtual mine” partnerships on every continent that will generate cash for generations from waste and tailings.
**
The fact that the Sunrise mine is not built yet just serves to allow us an opportunity to accumulate Cleanteq before it is well-known.
**
When we find a speculation that checks all the boxes, we should act on it. What is it that are we doing, if we do not do this ?
We can hop around and read the other teasers. And I do have other investments and speculations.
But I do not think I am likely to find as sure a speculation as this one.
Even if I were to come across one, it would take an extended period of due diligence to be
persuaded of it and to take a position of any size.
We as a group probably know Clean Teq better than most of the people who are speculating in it. And we are confident, after considering what we have observed and what we have found. At least, I am.
HN, thank you for everything you have put into this thread, your selfless generosity is inspiational. You are becoming a bit of a legend.
Shavian, you make me blush. Thanks for the compliment, but Friedland is the legend. I’m just a retired guy who likes to read, write, think, and dabble in the stock market.
I remind everyone that it is in my interest to have other people buy and support the stock, since I am long.
I enjoy research, writing, and debate. I hope to profit.
So my motives are not completely altruistic, although of course I will be very pleased if anyone else, even one person, is able to profit from my ideas.
CleanTeq: I am not sure about this, but if you are concerned about capital gains tax, my understanding is that you pay no taxes if you invest from/within a 770, or 702(j) retirement account. {See Tom Dyson, Co-Founder Palm Beach Research Group: (888) 501-2598}
I hope this helps.
I am very grateful for the information and good-will you all share. Thank you. Blessings.
Biotech is much more intellectually challenging and financially treacherous. Fascinating…educational…and stimulating, especially with
an exceptional mentor like Dr. Kss.
But it is treacherous, because one can get blown up by totally unforeseen and arbitrary factors in the clinical side. Competitors, new technologies,
government rulings, plus the time frames involved and the fickleness of the investment community can derail you lickety-split.
It’s a minefield on the clinical side. Endlessly fascinating, but very difficult. I know a lot of people will make a lot of money in it. But I am not comfortable with my own ability to make the judgements, and neither am I really well-equipped emotionally to make the right decisions during euphoria or disaster.
The mining business, or rather the commodity extraction sector, has way fewer variables and more defined timeframes. Generally speaking, I feel that I have as good a chance as the next person in evaluating the factors that should be considered in the speculations involved. And I have a clearer understanding of what the upside and the downside should look like.