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.
looking ugly in OZ, may need to run those resin crystals thru my portfolio tomorrow.
$CLQ.ASX – Melbourne, 23 March 2017
Section 708A Cleansing Statement and Appendix 3B
http://clients3.weblink.com.au/pdf/CLQ/01841441.pdf
Looks like a waste of time listing in the US – no one has any money. Haven’t seen a bid over 10’000 shares – are people raiding their kids piggy banks or something?
Oh great, an article about clean teq. Wait a minute, this has to be one of the most useless articles on a company I have ever read. But it does outline how wall street just can’t wrap their minds around clean teq yet. Not sure if it takes until earning streams start pouring in, but better to be early than late. https://simplywall.st/news/2017/03/24/is-clean-teq-holdings-limited-asxclq-financially-strong-enough-to-weather-a-storm/
Its a computer generated article trying to sell something
CLQ ready to launch again with Friedland showcasing the co at Asia mines and money and the Chinese solidifying their stake, co chairman appts etc
The article is a joke. There is no indication that the author even knows what business CleanTeQ is in, who their management is, or what their prospects are, or even if he has read one news release from the company.
Maybe the author is very good on evaluating financials.
Well and good. I don’t want to be insult a stranger and it is completely valid to look at numbers.
But if you knew anything about this company, you wouldn’t express concern about the company’s ability “to weather a downturn”.
There is no author – it’s a computer
Same article posted on hot copper where they clearly stated it was computer generated and had no credibility or value.
Great price now for those wanting to add further….
As for me got a truck load @ average of C$0:69
Secret – a $Ticker would be appreciated. When reading this on a phone, I had to guess what you were talking about.
Thanks.
Petervr,
Will try to do in the future. $CQL
Often I cut and paste and then miss out the ticker.
Best SS.
On your truckload of CleanTeQ…may I suggest finding a good enclosed long-term parking lot for your truck.
Don’t leave the engine running. Lock it and put the key in a safe place out of sight.
Apologies for very late reply.
Truck is parked in under ground car park, it’s the amoured variety and going nowhere for 2/3 years…
You can reach the “author” here:
Reach Collin by sending an email at collin.greene@simplywallst.com
Would be interesting to see if the response is also automatically generated 🙂
Why bother ?
True. He has already waisted my time with reading the article.
CLQ (ASX) long
Several Hot Copper members are tuned in to the synergies between CLQ as a miner, and CLQ as a cutting edge water purification company – as is Pengxuin, the Chinese company that recently acquired a 20% + interest in CleanTeq, as well as a seat on the board.
Here is an excellent recent post by McHale, a well-connected and respected Hot Copper member, that provides some historical overview perspective: “Outperformance is still very much on the menu here, CLQ is well ahead of any other Ni Co juniors in terms of progress made, but another thing that makes CLQ stand apart is its’ CIF technology.
So, CLQ is diversified and not just a miner, it has proprietary technology that places it at the cutting edge of water filtration/cleaning and mineral recovery. This same same technology will be employed to make the Syerston Ni Co Sc plant super competitive in terms of minerals extraction and more profitable by default; Ben Stockdale (CFO) has said to me that CLQ’s advantage in this regard was “extraordinary”.
We are presently waiting on news from China regarding the permit for the first water cleaning plant in which CLQ is in partnership with Jinzhong Hoyo, Mr Stockdale said permitting had been held up, but they were still hopeful to have permitting in place by end of March.
Even better news on the water purification front, is the fact that Care very big in water purification in China, many long term holders (including myself brought in to CLQ for the water purification – which was the only business for CLQ before RF).
Water cleaning, in the long run has the potential to be bigger than Syerston and when RF initially purchased his 20% holding in CLQ, nobody at CLQ knew about Syerston.
RF recognized the powerful economic synergies that would accrue with the CIF tech and the rest is history, however having RF on board makes CLQ the envy of all the other Australian Cobalt hopefuls.
RF has a truly global network and I don’t think it coincidence that a large water purification player has just brought a 20% holding here (of course they are also very involved with minerals too), but my take is RF has quite likely conveyed that “recognition of synergies” to Pengxuin, and they “got it” too.
This new partnership provides great opportunity for CLQ, not to mention a quicker path to funding. I think there will be more news well before the DFS…….time will tell.”
A great summary if you ask me. Thanks for posting, btl!
Scientific Metals Corp. (TSX-V: STM & US: SCTFF)
Any views on Kenneth Ameduri’s fresh promotion hype on this cobalt-company? It has a small market cap, and could maybe get a fast increase in Stock price, but long term I’m super-confident with my Clean Teq-holding instead.
Rick Rule has started to mention Clean Teq n0w, so maybe this will drive the stock price up today.
should get about 4.5% based on OZ closing
gold price up nicely as well, as of 11:30pm costa rica time. maybe tomorrow will be a good day.
Where has rick rule mentioned clean teq???
Johnnn…chrizc is the one who said Rule has mentioned CleanTeQ and I do not have the reference.
But you can be sure Rule is aware of CleanTeQ, he has been a follower of Friedland for over 20 years and said so in an interview with Friedland on the original Sprott interview that got me interested in Ivanhoe.
If Rick Rule is talking about it you can be pretty confident he is long the stock.
Found these recent Sprott interviews and both mention Friedland’s CLQ/CTEQF as the cobalt option outside of the Congo
https://youtu.be/sVt8kfhqGEk
https://youtu.be/dlUfA_VNQrg
Thanks, johnnn. The first interview is with Sam Broome, I guess he is one of the star underlings at Sprott…Rule has mentioned a few times that they have a lot of good people who are going to take over when he and Eric Sprott retire, even though he (Rick Rule) gets most of the press attention and gives the interviews.
Broome was careful not to give anything away…not that I blame him. They are in the business of giving advice, and look at retail investors as competitors. They are not going to give laundry lists of “good buys now.” His main points about cobalt were that supplies were limited, could spike with extra juice if DRC has political turmoil, and that Australia was a good place to go hunting for cobalt-only plays. Very general.
No mine names were mentioned…he just obliquely said [people like]
Robert Friedland “were going into the space” [in Australia]. Meaning CleanTeQ, obviously…but only obvious to us, who are already tuned into CleanTeQ.
FYI – Cobalt Miner News For March 2017
Summary
Cobalt sot price news – Cobalt spot prices rise further on supply shortages.
Cobalt market news – China approves NMC (nickel-manganese-cobalt) bttery technology for green car subsidies.
Cobalt miner news – Glencore CEO said “in 2018, our overall cobalt production goes into the 50,000 tonnes to 60,000 tonnes range.”.
Welcome to the March 2017 cobalt miner news. The focus will be on the cobalt miners that are in, or reasonably near, production, as well as featuring a few promising juniors each month. For a background on the cobalt miners, investors can read my earlier articles:
https://seekingalpha.com/article/4058147-cobalt-miner-news-march-2017?app=1&uprof=46&isDirectRoadblock=true
x post
More academic shibboleths wrecked on the rocks of experience:
The idea that market prices accurately reflect the known public information.
The corollaries are that “the market is unbeatable”; that the market is “fair”;
and that “the market is always right”. I have come to the opinion that these
ideas are also plausible and believeable, but in practice they are not true. They are theoretical constructs and just an approximation of what “should” happen…in theory.
For one thing, the theoretical conditions for “free markets” are never fully present. There is manipulation; there is regulation; there are exchange rules; there is friction in transactions;
there are many, many factors that detract from theoretically perfect markets.
For another, the distribution of information is irregular; and all information, true or false, is subject to interpretation and differences of opinion concerning the relevancy and meaning.
For another, there are powerful interests and forces at work that can distort and restrict both market activity and information. Banks, governments,exchange rules, brokers, media, and influential individuals all can have influence that interferes with theoretical “free market” price activity.
For another, emotions are very powerful in markets, and human behavior is often irrational.
**
In reality, people have different opinions about things. This applies especially to the value of assets and the prices at which one is able to buy or sell.
In reality, to make money in the markets, one must have an opinion that differs from the crowd on the value of an asset, and make a transaction that correctly anticipates a future change of opinion concerning the asset.
In reality, even the value of the money used in the transactions is subject to differences of opinion. This opinion changes daily, albeit in small degrees.
In reality, our own behavior and emotions often destroys profit on good positions where we were “right” and our opinion was correct compared to the crowd.
In reality, the future is unpredictable with respect to many factors influencing specific investments. The potential for profit lies in this uncertainty.
$CTEQF CleanTeQ…news release from December 2016…Scandium alloys, Airbus, 3D printing, and hot motorcycles…what’s happening !!
http://www.otcmarkets.com/ajax/showNewsReleaseDocumentById.pdf?id=23844
The big plus here seems to be that CleanTeq technology not only separates material but also can size material. The current process for producing 3D printing powder with scandium has particles plus or minus required production size. $CLQ technology is either able to resize or separate there by lowering production cost. This company is amazing how much more is to come.
$CTEQF…It becomes apparent that Friedland has a very specific strategy for developing the scan/alu alloy potential. He is not waiting around for “someday”.
The material they are sending Airbus is suitable for 3D printing, which will be used for sophisticated parts and designs.
CleanTeQ will not only produce scandium, they will crash the price to widen the market and get big aviation and aerospace guys on board. One would guess that Airbus will be the first, as they are always mentioned in the big CleanTeQ announcements.
We will have a tech company, an environmental company, a water purification company, a mining technology company, and a miner specializing in rare metals, all rolled into one.
When a significant scandium contract is landed, it will also propel CleanTeQ’s nickel sulfate and cobalt production and sales, because they will run the same ore through the extraction circuits. They will not leave the cobalt and nickel behind when they are running ore to fulfill their Airbus, Lockheed and Boeing contracts on scandium.
Whoo boy. Several chances to win on this one. I have a large position but will keep adding as I am able, especially with prices under 80 cents US and under $1 Australian.
Let me quote Robert Friedland:
“I’m giving you a stock tip. Buy CleanTeQ !”
$CTEQF This investment will be 3D printing money for us, its going to be a 3-4 year ride of multiplication, not just addition. Mark my words. I’m in all the way right now, and fully expect everything to unfold while we enjoy the ride as the ones who figured it out early. Just like I figured this out one year early, and bought beachfront property for cheap. This from todays WSJ https://www.wsj.com/articles/nosara-costa-rica-sees-an-influx-of-upscale-home-buyers-1490884058
Anybody want a cool representation of where CTEQF stock is going next 4 years, be free to go here, and watch me playing in my front yard, I made this vid a few days ago [I’m back in S. Cal today], just scroll down a bit to the jackson ebner vid, you pronounce my last name backwards, you recognize me. Put full screen and sound up and enjoy. https://www.facebook.com/AyurvedicCranialTherapy/
Great frisbee technique! To see it go soaring unstoppably into the sky is impressive– and for it to come crashing through my living room window this morning is even more impressive-
(I live in NYC).
Thanks, scottu. Disc, not frisbee. LOL. I studied youtube videos of the disc golf pros, broke down their stroke, and practiced, till I learned to do that. I am a technique teacher [teach doctors and healing professionals], so I made this video to demonstrate the results of proper technique.
$CTEQF…well if it hits you can scout out an undeveloped parcel on the beach for me, and we can all jet back and forth from the island Alan is going to buy when Arch Therapeutics is bought out by J&J.
Long $CTEQF. Long $ARTH.
I hope Alan scores big, but I get the feeling he doesn’t want me on his island.
Renby….You will be most welcome on Chez Plumbier …..so long as you keep your damned frisbies off my lawn 🙂
Seriously though, I dont set out to scrap with anyone. My aim is simply to try and keep some measure of focus on the SG threads so that they dont turn into yet another ya boo Yahoo clone. Inevitably I get it wrong sometimes and go OTT….my apologies. Its nothing personal.
Discs. Frisbees are things that hippies throw, discs are for athletes. I’ll teach you to throw them high and far, I learned you can shape your stock graphs with your throws, make money and get exercise at the same time.
Time heals all wounds. You and Alan can mend fences over drinks on the beach at my place.
$CTEQF…$CLQ…They indicate that the unsuitable particles will be recycled. Currently they are waste, which adds significantly to the cost of the good, useable particles.
FYI – Lithium Miner News For The Month Of March 2017 by Matt Bohlsen @ SA
About: Global X Lithium ETF (LIT), Includes: AAL, ALB, ALTAF, AVLIF, BCRMF,,,
Summary
Lithium spot and contract price news – Spot prices are up slightly.
“Lithium demand is set to rise by 16 percent pa over the next decade. The fastest growth rate out of any major commodity over the past century.”.
Lithium miner news – Albemarle and Tianqi plan to expand Greenbushes.
https://seekingalpha.com/article/4059398-lithium-miner-news-month-march-2017?app=1&uprof=46&isDirectRoadblock=true
Note: Catalyst have have been added for most of the explorers mentioned in the article. Bohlsen also appears to have a paid subscription available.
x posted
$CTEQF – Considering HNs’ post above I’ve been meaning to comment on ‘diversification’. I look at the diversification more as expediency perhaps even ‘convenient expediency’. How do you convince a miner to change milling process to unproven technology that might even require the miner to stop production with great difficulty. How this Sandium project came to be only the fly on the wall knows but it is an almost perfect marriage. The technology can be proven and draw a lot of attention in doing so. At some point the marriage IMO will become awkward and required a divorce but it will be a win win divorce. The scandium mine should subsidize or pay for a facility to continue development of the technology.
CleanTeQ management specifically confirmed that it is very difficult to get full operational control from miners on their own sites. That is one reason, and a major one, for CleanTeQ’s decision to use their purification process on their own 100% controlled Syerston project. They are putting their money where their mouth is.
I think the contacts between Friedland and Pengxin in the mining sector will get the ball rolling, and other projects where waste water is a key issue may come around faster than the average big miner.
When and if Syerston is successfully extracting nickel and cobalt, there will be another good reasons for other miners to take a look.
$CTEQF…$CLQ…I don’t know if a “divorce” between the divisions will be necessary, the water division is already stand-alone, Syerston is stand-alone, and the scandium development angle is directly tied to Syerston
production. The research and development also benefits all three units and it is hard to parcel it out. The interconnections between the segments are very strong even though to a casual observer they appear
disconnected.
What is more likely, in my opinion, is that the combination may be undervalued for a while. There would normally be pressure on the CEO to spin-off the units to unlock corporation market-cap value, but I think in this case it will boil down to what RF wants to do with the thing. It is easier and more efficient for him to manage the structure as it is…CleanTeQ Holdings controls all, and Friedland is not going to care much about a few shareholders complaining that the CEO has not done a good job because the stock price is only $10 dollars and should be $25
based on cash flow or some other metric.
Shareholders can also be pacified by dividends. Eventually this company will throw off so much cash they won’t know what to do with it. My guess is that the water division will provide huge cash flow that is growing and predictable. Eventually. Probably.
CLQ: HN, typically, what happens when a company spins off a sector. Do the shareholders get compensated in some way for the loss of value?
Of course, and the shareholders will usually be participants in a proxy vote in advance to approve the spin-off.
Say company X has two divisions A&B whose total value is not fully reflected in the stock price. The CEO/Board might say “We are going to split off part B, because part B is not fully recognized and the shareholders will have more value if B is allowed to be valued separately, apart from part A. When we do this, and each holder of X will get 1 share of A and 1 share of B. ”
That is the simplest scenario, but there can be many variations, some involving a sale of part B to a third party
with cash going to the holders.
But in the end, as I say, I think in the case of CleanTeQ it is not so likely, because the while thing is Friedland’s concept from the beginning, and he has set up a structure that suits him, and the interests of the shareholders are ultimately that the thing stays together as an integrated whole with
unified leadership.
Any shareholder who would complain about valuation is going to be pretty childish, given the fact that Friedland has created the whole thing out of his sleeve like a magician. One should be grateful that the public has a chance to participate in this one.
$CTEQF…$CLQ…It is hard not to be amazed by Robert Friedland when one looks at the vision, preparation, strategic planning, and execution of CleanTeQ in the last few years. The entire project is a brilliant conception, carefully planned, and has been magnificently managed over a period of years to the present moment.
Consider the timing of the water website and the announcement of the partnership with Pengxin.
Consider the skill needed to get the Chinese government on board.
Consider the recognition and development of the Clean-iX technology, the procurement of research funding from institutions of higher learning, and the work necessary to develop serious relations with the likes of Airbus, GE, and Dow Chemical.
Consider the identification and acquisition of a mine, which is a difficult task in and of itself; and in this case done years in advance of commercial demand for the production.
And consider that all this has occurred while he has been developing, funding, promoting, and managing three or four world-class mines at Ivanhoe.
Friedland is in a class by himself. The stock price of CleanTeQ is irrelevant to his managerial accomplishments. I expect the company to do well. But whether it is successful or not, Friedland is deserving of admiration for his vision, talent, persistence, managerial skill, and hard work.
HN: Access to these mining threads is not locked so open to anyone on the net. Is that your intention?
Wow, Ive just noticed that the cumulative Thumb count is back.
I’m not sure on this one. On the one hand, it is in our interest as long holders to increase awareness of the company. On the other hand, the longer it goes relatively unnoticed, the more we can accumulate at good prices.
I would like written feedback from the readers on this one.
If you are not inclined to make a comment pro or con, then:
…click a “thumbs up” for public access,
…click a “thumbs down” for restricted subscriber access.
If you have a long term view and really believe in the company, then restricted access is better because you can build up a bigger position at low prices.
If you are short-term and need results fast, and if you cannot take volatility to the downside, or you are a trader, then open access is better.
As author I reserve the right to go contrary to consensus. This is not a democracy. Each author is Grand Poohbah of his or her own thread, subject to the over-arching authority of Travis, the Imperial Grand Poohbah of the Gumshoe Empire.
I’m ok if its open. This is how we found Travis in the first place.
Do you have to be an irregular to get KSS info?
I believe so
I’d like to get on KSS & Myron Martin lists (& this if you take it private- is all that covered by be coming an irregular? Thank you.
Yes, Scottu. Everything you see on this site is included in the Irregular membership subscription price.
Best investment I ever made. Best2You
Yes!
SG is free…….but without subscribing to the irregs, how would KSS’s author fees be paid? ie yes, you do have to subscribe to read his threads.
But perhaps thats the lynch pin……HN isnt being paid (maybe he should be?) so perhaps it should be free. There again, if too many people read, it will affect the SP so cost us gummies dear. Is a tricky one.
PS: Im gonna abstain.
alanh…are you long CleanTeQ ?
A definate maybe. HN’s writings appeal to a small group. Look at Ivanhoe and CLQ. With all the writings so far, effect on price seems relatively small don’t you think? Both still at reasonable prices.
$CleanTeQ! This site is my guilty pleasure. Guilty because it’s absurdly cheap and I’m not contributing and pleasurable because i’m making money. On a selfish note, can we make it private until I sell my business in July? I would like to add to an already OW position. I also like islands, private jets and boats. First round is on me. On a serious note, thank you so much HN for all you do. I would love to see you team up with Myron and get paid. I’m a loyal guy and love what Travis has created here, so I hope you all can work it out so everyone, meaning you guys, can benefit! Alanh any chance on a special thread of in and out trades? I’m always interested in what you are doing and love hearing 2 sides. It’s incredibly boring if everyone agrees all the time. Thanks to everyone and I love it all! Long CleanTeQ.
Hezi: I fear such a trading thread would be useless coz my trading relies/reacts to gut feel rather than HN’s analytical approach, and you really dont wanna know how my gut reacts to a hot curry.
I will list my holdings later when I have some time, but its the Oxford/Cambridge boat race day and my boat suddenly gets very popular with the beer swilling crew.
$CTEQF…$CLQ…CleanTeQ…
“There again, if too many people read, it will affect the SP so cost us gummies dear”
It will cost only those who have not yet taken a position, and wish to do so.
It would presumeably benefit anyone who is long.
For those who are not taking a position, there is no effect.
This is a good illustration of the stickiness of “public information” and how markets are not frictionless.
All of my information is available publicly but only a very small fraction of the investment universe has even heard of CleanTeQ.
Ask yourself, of all the people who make investments in the stock market, what percentage of them are active in the mining sector ?
Of these, what percentage are at all interested in cobalt or scandium ?
Of these, what percentage are willing to invest in a 75 cent Australian company with virtually no sales, no dividends, and a mine that will not go into production for many months ?
Of these, how many are going to actually read about the company and come to an informed judgement
about it ?
Of these, how many are going to come to the opinion that it is a reasonable buy at current prices,
and get onto their computer and actually go and
buy some ?
My guess is that you get down to a pretty small number of individuals. With a thinly traded stock,
I suppose there is potential of influencing the price
a la Dr Kss.
But even within the Stock Gumshoe universe, my blogs are fairly obscure. The comment count is pretty high, but most of the comments are my own stream-of-consciousness additions. So even leaving the blog open, I think we are a pretty far ways off from influencing anything but the opinion of the few people who are following along.
Occasionally I search the web to look for new information on CleanTeQ. It is amazing how little is out there. The epicenter of interest is still far and away in Australia and is centered on cobalt mining.
My guess is that the stock will take off when the tech sector takes notice of scanalloy, or the energy sector starts thinking about cobalt instead of lithium, or the tree-huggers get excited about water purification, or big contracts start coming with
Chinese municipalities to install Clean-iX.
HN, I agree with what you say, but also think that CleanTeQ and other of your mentions may be slowly building up a head of steam. When a major newsletter finally sees the light, prices could really take off. The Gumunity owes you a lot for your service. Getting in on the ground floor certainly has it advantages. Patience pays.
Thanks, PetervR
HN – a second thought. The CleanTeQ story has all the elements of a newsletter mavin’s dream. I could easily see the story being written up like an Oscar winner’s script. The fact that few have heard of it, only makes the story more exciting. Think drama !
Hi Petervr, re newsletter teasers:
See the opening line of the essay.
The thought has occurred.
The newsletter guys make a fortune.
Behind the paywall if HN starts receiving an author’s fee as he puts a lot of research into his ideas! Meaningfully long position in $CTEQF
Hezediah, petervr, Jeffrey M, et al: …thanks for your kind words. In the event CleanTeQ goes down, please remember your kind thoughts.
HN, I completely acknowledge that I am the master of my domain (even if my wife doesn’t agree)! I just appreciate the in-depth research by you which gives me an opportunity to begin my DD. Long $CTEQF and long $HN
Jeffrey…hope you get some benefit from the ideas here. Lots of nice people trying to figure out what’s what.
$PVG Pretium Resources
Moving right along.
http://www.pretivm.com/news/news-details/2017/Pretium-Resources-Inc-Brucejack-Transmission-Line-Energized/default.aspx
$CleanTeQ did anybody comment on the chart? March 28th. Increase volume. Looks like accumulation is starting? Long $CTEQF.
$CTEQF Long
A bargain right now at just under $.62.
$CQL
Agree adding today. I expect this to be our $AUPH. Put in a drawer for 3-4 years and have a 5-10 bagger.
I added also. I said I would add as much as I could stomach under 80 cents. Turns out I can stomach quite a bit.
Hey, I liked it at 55 cents. I liked it at 80 cents. I liked it at 72 cents.
I sure like it at 64 cents.
My total position is now very slightly in the red but very large.
Average about 66 cents.
The stock will go strictly on sentiment, news and slow increases in investor awareness since there are no sales to speak of. And the institutions cannot buy penny stocks.
As far as the potential I think it is bigger and faster than 5x or even 10x.
I have trouble imaging what would shake me out of this other than total fraud. Throwing it in the safe and losing the key.
I’m with you, I loaded up big time at 62.5 cents. This one feels a lot like qualcomm, and I was 3-4 years early there. I suspect we are early here too, just throw it into the incubator, and hope it grows into a monster. I see the upside/downside ratio here as bigger than anything I can remember..
I agree, the Chinese inside price was 60 cents. Of course they got warrants too.
Cobalt: The Weak Link In Tesla’s Supply Chain
Apr 7 2017, 11:05 | About: TSLA
Cobalt: The Weak Link In Tesla’s Supply Chain https://seekingalpha.com/article/4061069?source=ansh $TSLA
CleanTeQ mentioned.
Excellent read. I’ve been following Matt Bohlsen of SA, but Petersen has gone into a bit more detail in the Cobalt supply and demand. Petersen does mention $CTEQF and also $ECSIF (my long play on Cobalt), he questions their finaces to make it to production. I think CleanTeQ is set for $$ and $ECSIF has completed a private placement to complete $$ on building their mill. Thanks for posting squirrel, I hope you don’t mind I’m going to x post to;
http://www.stockgumshoe.com/2016/07/microblog-storage-of-electricity-batteries-big-image/
$CTEQF, $ECSIF long
Please be my guest
$CLQ
$CTEQF…questioning finances on CleanTeQ…I guess the author didn’t see that they got money from Pengxin specifically earmarked to fast-track production at Syerston.
I have to laugh at this one. You have two co-chairman who are each billionaires, one of them has 20% of CleanTeQ. Both have the type of contacts and reputation most other mining CEOs can only dream about.
If you are going to worry about these two guys raising capital, you are either paranoid or ignorant of the situation.
Correction…CleanTeQ ability to weather a financial storm…with the filing of March 31, Both billionaire co-chairmen control 16% each of CleanTeQ:
Robert Friedland 16%
Jiang Zhaobai 16% through control of Pengxin
$CTEQF…$CLQ…hard document stock disclosures concerning partnership with Pengxin Mining…
On the CleanTeQ website there are copies of the Australian stock notices related to the announced partnership with Pengxin mining. Go to the CleanTeQ website, then the “Investors” tab, then “ASX Announcements”. The various ownership filings are dated march 31.
They are interesting as they represent the agreement as represented in the Australian stock exchange filings:
Robert M. Friedland filed showing beneficial ownership of 92 million shares. The number of shares owned did not change, but because of the issue of share to Pengxin, he now has 16% voting rights instead of 19%.
The Pengxin Mining filing shows the acquisition by Pengxin of 92 million shares and 16% voting rights in CleanTeQ. The quantity and voting rights are exactly the same as Friedland’s.
What is interesting about the Pengxin filing is that the parties who have major interests in Pengxin are also listed.
There are lots of subsidiaries and other parties who have major interests in Pengxin or who have relations with Pengxin Mining that require disclosure. The research into these companies will be very fascinating and I intend to check them out to the degree I am able. One is getting a glimpse into the structure of Chinese business and the methods by which they hold control of their interests.
There seems to be a very deep connection to Shanghai in the Pengxin empire. It appears to me that Pengxin Mining is a state-approved corporate vehicle for acquiring foreign assets.
***
There is also an announcement of an Australian investment fund that has cut holdings from 33 million shares to 28 million or so. The shares were bought at 39 cents, the five million sold in the filing were at prices from 60 cents to $1. Looks to me like profit taking, I am not concerned although the dilution to Pengxin and the sale buy the fund are likely the reasons for the recent drop.
Long $CTEQF
CleanTeQ’s strategic partner…one entity, a dozen or so Chinese intertwined Chinese affiliates.
As mentioned In the Australian stock filings made on account of a new major stockholder, Pengxin International is the owner of record of more than 92 million shares of CleanTeQ making a 16% voting interest, equal to Robert Friedland.
Hoiwever the filing shows at least a dozen affilates, subsidiaries, and individuals related to Pengxin International.
First off, while Pengxin International holds the shares, Pengxin International Mining owns 100 % of Pengxin International.
Then there is Shanghai Pengxin, which holds 20% of Pengxin Mining.
Then there is Nantong Yingxin, which has a controlling interest in Shanghai
Pengxin.
Then there is Mr. Jiang Zhaobai, who has a controlling interest in Nantong Pengxin.
Then there are a raft of other companies that are subsidiaries of Pengxin Mining…such as Shanghai Pengxin Mining Investments; Shanghai Pengxin Technology Development; and a couple of trading companies. So it looks like the crux of the thing is Pengxin International MINING.
***
Then we have affiliates of Mr. Jiang Zhaobai, the new co-chair of CleanTeQ. His listed affilates include miners, asset managers, a capital management company, a technology investment company, and some other companies and individuals of unknown activities.
What we have is a giant Chinese organizational hairball that includes mining, finance, infrastructure, development, trade, and technology. Mr. Jiang Zhaobai is at the center of the hairball, and as hairball chairman will approve committee proposals to approve decisions of wholly owned subsidiaries of wholly owned subsidiaries. My guess is that on big decisions he probably gets the Chinese Politburo to sign off.
I checked one subsidiary that had as chairperson a Jiang Lei. I suspected that the “Jiang” implied a family relationship with Jiang Zhaobai, but wasn’t sure because I am not certain which is the family name; but I did not need confirmation, since it was disclosed that Mr. Jiang Zhaobai had no official position there, but has relationships with 6 important members of the affiliate.
***
Now what do all these affiliates, subsidiaries, and individuals do ?
Well their activities are sometimes visible, sometimes not. And whether they do what one would think is also an open question. To really investigate one would probably have to learn Mandarin, hire a team of
detectives and a couple of corporate analysts, and devote 16 hours a day for a year trying to figure it all out. For example, Shanghai Pengxin, which has a 20% interest in Pengxin Mining, is in large scale real estate and urban development, infrastructure construction, and other big stuff, as you can see on their website.
A number of “technology” affiliates pop up. Whether these actually have scientists and laboratories and do research is another open question. My guess is that they target acquisitions in companies that hold attractive technologies. This is just speculation.
Bottom line is, if one is going to get mining licenses and water purification programs in China, Pengxin is a tailor-made strategic partner.
Long CleanTeQ
Thanks for all your research, HN. Much appreciated.
Long CLQ
$CLQ
Scandium advertisement from Australia.