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

By hendrixnuzzles, February 6, 2017

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

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

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

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

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

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

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

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

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

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

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

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

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

Long CleanTeQ

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

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Griffin
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Griffin

FYI Cobalt Miners News For The Month Of June 2017

Matt Bohlsen @ SA
Summary
Cobalt spot price news – Cobalt spot prices rose strongly to reach US$26.31 by June 22.
Cobalt market news – BNEF says “a battery boom sends demand for cobalt soaring more than 30-fold by 2030.”.
Cobalt miner news – China Molybdenum completes takeover of Tenke Mine.

https://seekingalpha.com/article/4083699-cobalt-miners-news-month-june-2017?app=1&uprof=46&isDirectRoadblock=true

$ECSIF long

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rubberworm
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rubberworm
secretsquirrel
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secretsquirrel

Not sure if this posted previously?

Ellis Martin Report with Sprott Global’s Sam Broom, 22nd April 2017.

https://youtu.be/phHlysOTyf8

Mentions briefly CleanTeQ and the colbalt market extensively.

Informative bloke IMO….

rubberworm
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rubberworm

Nice Thanks ..I went to Broom’s website also

Griffin
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Griffin

fyi Lithium Miner News For The Month Of June 2017
by Matt Bohlsen @ SA

Summary
Lithium spot and contract price news – Lithium prices rose again, albeit very slightly.
Lithium market news – Oversupply fears spark a sell off of most lithium miners globally.
Lithium company news – “Mineral Resources is shaping up to be a significant supplier of lithium.”

note: under marketing news “”1000 km range for electric cars thanks to a new battery concept. Under the brand name EMBATT,” In addition “New mining deal to boost lithium production in Argentina. Introduced by President Mauricio Macri,”

https://seekingalpha.com/article/4083894-lithium-miner-news-month-june-2017?uprof=46&isDirectRoadblock=true

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Griffin
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Griffin

$CTEQF Clean TeQ ’s Syerston project could produce cobalt for more than twenty years

https://gallery.mailchimp.com/6b234a59bc4b0bc555986937a/files/1a8b3349-baf0-42f7-9d6b-459c3467d57d/Northern_Miner_June2017.pdf

$CTEQF long

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george_good
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george_good

Red mud
Depending on the quality of bauxite ores, producing 1 t alumina basically generates 1.0–2.5 t red mud.
By the year of 2000, the alumina industry had produced about 2 billion tons of red mud and it is estimated to reach 4 billion tons by 2015 at its current production rate.
Sc content of red mud is 240g/t, produced by the RUSAL refineries.
Sc recovery rate by carbonisation is 23%. Also uses furnace gases.
Why this option is not considered?

Griffin
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Griffin

Thanks for posting George. From what I’ve read the ion process has been around for a while, but hadn’t been used in metal recovery. Hendrixnuzzles (HN) found Clean TeQ and presented it to us. When I first evaluated I thought it was about water recovery. The more you look at this company and the others that Robert Frieland is into, you realize some of the things being worked on are pretty leading edge and will take time to work out. In addition RF might not be done he has made comments about storage batteries, and vanadium. Tesla might start thinking… Read More Β»

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rubberworm
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chrizcringle
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chrizcringle

CleanTeq

I listened to this podcast as soon as it got published, but I struggled to share it via my Podcast-app, so great that you got it out, rubberworm! it’s interesting that more and more people is starting to focus on CleanTeq. She also doesn’t seem to know that it’s listed in the US….and amazingly few people manage to see the full potential (usually analyst covers only a small part of the company; here only cobalt/nickel.

Long CTEQF and my biggest position.

SoGiAm
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$FTSSF – Cobalt One to Merge with First Cobalt
https://firstcobalt.com/2017/cobalt-one-merge-first-cobalt/

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secretsquirrel
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secretsquirrel

Any thoughts on this?

The fact that the process removes the need for cobalt is not only a significant cost-saver, but will send a sizeable ripple through the tech-metals market.

https://investorintel.com/sectors/technology/technology-intel/nano-one-change-lithium-space/

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SoGiAm
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$NNOMF now long starter @ .54 Thank you secretsquirrel
Website: https://nanoone.ca/
Summary of Material Change
The company announced that commissioning of the pilot plant is complete
and that scaled-up production of lithium ion cathode materials that meet Nano
One’s processing and battery capacity targets has been demonstrated.
http://nanoone.ca/nano-one-demonstrates-pilot-plant-first-production-lithium-ion-cathode-materials/

Nano One Demonstrates Pilot Plant with First Production of Lithium Ion Cathode Materials
http://nanoone.ca/nano-one-demonstrates-pilot-plant-first-production-lithium-ion-cathode-materials/

Interim financials at 3/31/17:
http://www.sedar.com/GetFile.do?lang=EN&docClass=5&issuerNo=00006073&issuerType=03&projectNo=02632914&docId=4125985

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btrodden
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btrodden

Placed my buy on NNOMF last night to execute this AM, ….and glad I did. Wish I’d known of them earlier but, pleased to get in asap. Been holding $SCTFF for a long position. Comments? Feelings? Sentiments?

arch1
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Cobalt will still have its traditional uses in the steel industry,gas turbines/jet engines and high speed cutting/drilling tools but it seems that the expected great use in batteries would not materialize.
Lithium sources would also be impacted as lithium carbonate is found in brines and some salt beds and does not need complex manufacture, only recovery. It is often found in waste water from oil and gas wells. That might fit with CleanTeq but is only a guess on my part.

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Griffin
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Batteries have come a long ways since the days of the model ‘T’. The original auto battery was comprised of pairs of glass cells that held the acid and plates. The batteries had to be rebuilt often and there were auto parts stores that rebuilding batteries was their primary income. That is where Lithium-ion and Redox Flow batteries are today. There will be improvements in these batteries for years to come. Nano One and Biosolar are working on the anode and cathode for Lithium. Unienergy Technologies has a patented electrolyte for flow batteries that adds 70% more capacity. Keep your… Read More Β»

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secretsquirrel
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Cannot post direct link or cut n paste the document, so here’s the ASX link.

CleanTeQ Ann: Changes to the Board Directors.

http://www.asx.com.au/asx/statistics/announcements.do?by=asxCode&asxCode=CLQ&timeframe=D&period=M6

She looks a good sound move….

rubberworm
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SoGiAm
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$CLQ – CleanTeq Initial Director’s Interest Notice Name of Director Stefanie Loader Date of appointment 1 July 2017 http://clients3.weblink.com.au/pdf/CLQ/01870047.pdf The above post by rubberworm – Final Director’s Interest Notice Name of director Peter Leonard Voigt Date of last notice 24 November 2016 Date that director ceased to be director 30 June 2017 http://clients3.weblink.com.au/pdf/CLQ/01870044.pdf Peter Voigt FOUNDER AND EXECUTIVE DIRECTOR Peter Voigt established Clean TeQ in 1990 and up to his appointment as CEO was the companys Chief Technology Officer, responsible for all research and development activities and the negotiation and management of overseas licences. Peter is a biochemist, with extensive… Read More Β»

rubberworm
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SoGiAm
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$CTEQF – Highest volume ever? Volume (Heavy Day) 751,858
Clean TeQ Holdings Ltd, Melbourne Ordinary Shares (Australia) (QX)
Long CleanTeq and Gummunity!
Thank you HendrixNuzzles and Larry McKenna!

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renbycage
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renbycage

I just noticed that volume. Came here to see who else did.

Johnnn
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Johnnn

Was it one buy? Or many? Looks like closing ahead of ASX which is unusual – someone buying a