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.
LONG CTEQF . I just came across an interview of Sam Riggall on Oct 21, 2015 by Kevin Michael Grace from the Gold Report. Very interesting information in it. You can access it on seeking alpha under CTEQF. Sam states that the ion technology works for desalination of water. Also Sam states that there are existing agreements with CTEQF, Airbus and KBM. These agreements have been in place for at least two years. Just like you gentlemen thought. By the way , thanks for all you guys do for all of us. The quality of your analysis is excellent and CTEQF is just simply amazing in what it is attempting to accomplish. Their strategy and connections are well thought out and their implementation flawless. This stock along with IVPAF just keeps getting better and better. Thanks again Mark
Scandium CleanTeQ mentioned.
https://investorintel.com/sectors/technology-metals/technology-metals-intel/scandium-technology-metals-race-winners/
De salting water by the means of cleanteq is so new it is hard to get reliable information as to how well it will compete against existing methods. Following is link that may help;
http://pubs.acs.org/doi/abs/10.1021/acssuschemeng.6b02455?src=recsys&journalCode=ascecg
Using this statement,,,To reclaim cooling water at thermoelectric plants in the United States, a huge amount of energy usage (∼400 GWh/day) can be saved, if resin wafer electrodeionization was applied instead of commercial reverse osmosis. A just on power generation need for boiler feed water and applying a cost of $0.10 per KWH, about 1/4 of solar cost, that would yield a saving of .10 times 400 million or $40 million per DAY for boiler feedwater. IN the US.
Many other industries could yield similar savings in water short areas of the world.
Agriculture uses huge quantities of water, several gallons per pound of food and could use partially de salted water in many areas if low cost enough. cleanteq could possibly be the way. Potable water is a real need for most of the world and increasingly expensive. If cleanteq can supply abundant low cost water, what is that worth? Metals and minerals recovered during the process would be tiny in comparison. That is why I would like to see a head to head competition with the best current de salting technologies on a cost per kilo or megaliter basis.
Water desalinization…no matter where CleanTeQ would come in as a competitor in water desalinazation, if I were in their positon
I would focus on the aspects where they have no visible competition at all. Just like they are doing.
Alanh, et al…enthusiasm for CleanTeQ…in this open forum we have a very wide field of expression, and I have gotten immense pleasure from the interadctions with all of you.
I am wildly bullish about CleanTeQ. But there comes a point where my personal conviction or enthusiasm becomes irrelevant and distracting, and contributes nothing to the conversation of the subject. I think that I have reached and passed that point.
The vital facts that are available to us have been presented by various readers, and subsequent developments will tend to confirm or deny the main threads of our analysis.
For every selling point, there is a potentially contrary opinion. The stock price of the company reflects this, and every positive point can have a contrary argument against it.
COBALT DEMAND: maybe the electric vehicle movement will peter out.
NICKEL: maybe new deposits will be found.
SCANDIUM: could be years before scan/alu alloys are in demand.
SYERSTON Mine: coming on, but things can go wrong and they mine is ntot operating yet.
METAL PRICES: could stay depressed indefinitely.
CLEAN iX: maybe the cost savings and applications will be more limited than we are led to believe. After all, there are no public facts available on the costs of thise technolgy.
ROBERT FRIEDLAND: maybe he will screw the stockholders of CleanTeQ and we will be diluted badly. Some readers have openly expressed doubt and scepticism of his practices and ethics, nothwithstanding the fact that he has received many prestigious and honorable awards and trade recognitions.
POTENTIAL: yes, it may be great, but this is a company with virtually no sales or revenues.
MARKET RECOGNITION: the diversity and complexity of the company operations may hinder full recognition of value by the general market.
And some readers are completely disillusuioned about Australian stocks as an investment opportunity.
COMPETITION: there are IPO moats but many of the CleanTeQ methods are proprietary as apposed to patented.
TIME FRAMES: many of the positive developmets may take years.
Personally I am not worried about any of these events, although I recognize their possibility. Opinions and assessment of risks vary quite a bit from one person to the next. My own opinion is that the greatest risk is that something happens that makes Robert Friedland incapable of leading the company.
I like the odds. I have a large position in CleanYeQAnd everything I have seen in the last three months has srtongly contributed to my optimistic attitude towards CleanTeQ.
There has been good news, great news, and astonishing news.
Nothing at all that douses the burning flame of optimism that I have for the company…except for a drop in the stock price from my entry, the world-famous Hendrixnuzzle Effect. This is an event which is not very noteworthy, and one that I have come to expect with resigned complacency.
Timing on the flip side of the Hendrixnuzzle Effect – I have benefitted and am nicely up in $SSL (large), $IVN (large), and $CTEQF(small to moderate) positions – so thank you hendrixnuzzles for bringing them to my attention. Also holding $PVG, $CXO, $CN, sold $SEA.
$CleanTeQ..one more subjective comment
I stated recently that I think it best to restrict my comments going forward to factual developments related to the company. I have already spent a a lot of ink in speculation and hypothesis; but here is one more thought that I would like those of a short-term, trading mindset to consider when contemplating putting money into CleanTeQ.
I have listed a number of potential price catalysts that could send the stock price of Cleanteq to new levels. What is very unusual about the list is the relatively short time frame they might be expected to happen 9two years or less), and also they fact that the potential catalysts are quite disparate and for the most part have little to do with each other.
The new thought which I submit for consideration is that none of the potential catalysts, in and of themselves, will elevate the market cap of the company to anything near its full long-term valuation.
For example, suppose an off-take agreement for scandium is announced with a major like Airbus. We will surely get a nice bump in stock price. But the value of the cobalt, nickel, water purification, and mineral extraction aspects of CleanTeQ will still not be getting their due respect.
Or, suppose a major municpal or mine water processing deal is announced, for a major city in China or a big mine in Africa or elsewhere. Again, we might have a nice increase in the stock price for the day or the week. But why sell out then ? We will be looking at the tip of the iceberg. There will still no market recognition for the potential of hundreds of municipal and industrial installations…still no credit for cobalt or nickel or scandium…just a nice deal in a headline. Good news to be sure…but is the week’s stock action even going to remotely come close to realizing the value of the company ?
I don’t think so. Long CleanTeQ for the long haul.
Without any weird bad luck, this investment will be a huge winner. I love owning this company, and will enjoy watching all these aspects of the business unfolding. And at some point, the stock price is going to explode upward, and it’ll be ecstatic.
OK HN (or anyone) given that we are moving to fundamental valuations (albeit the cobalt etc is still in the ground….I hope), what ‘reasonable’ present sp would you place on each company we are following? We may never buy at the bottom, but if we buy at fair value (or less 🙂 ) sooner or later it will play catch up. Meanwhile we can sleep soundly and wake to find water treatment/scandium contracts have added to that value.
HN: You are posing the eternal questions.
Should I be a long and ignore all the noise? (Ive still got a boat load of ‘hot’ bios just waiting for their resurrection day…..Hmmm? )
Should I day trade and jump ship to steal a few $ ? No !
For my part, being long is a mindset…….but that doesnt mean sitting on my hands. Surely the trick is to buy low, sell high and buy back lower….wash rinse, repeat. Its the nature of the market that it will rise AND fall…..the market is a sea of people, and seas always have waves. Better to play both directions (although I dont short). Even if its only a penny difference….a penny gained is a penny earned. But I try to do this in the lull before the next catalyst happens . Catalysts generally dont happen to short order. Theres one, then the price falls back with profit taking….then theres another. Of course theres the risk of missing the biggy, but in my experience, the risk is somewhat over rated. (famous last words).
I did this with ARTH (thanks to your earlier advice). I bought at 17, sold at 70 and bought back at 55 (its now 45 boo hoo 🙁 ) Still, Im better off by a good few % than if Id simply stayed long as soooo many others did, and I used that profit to buy back a bigger position for the same money, ergo Im still fundamentally a long . I dont get ‘in’ in the first place unless I believe in the story. Im a trader, but with a long bias.
Alan, old friend (which I consider you even though we have not met).Let’s move away from general trading strategies for a moment. Consider the following fact about Ivanhoe:
It has three deposits which are at the very top of their respective mineral contentsworld wide: copper, zinc, and PGM metals.
There is no problem financing and management is excellent. There is ZERO discovery risk. There is no financng risk.
Their third best deposit, Platreefs, which has six high value metals and an outrageous percentage of platinum,
has already been given an established value by a real buyer of $ 3 billion dollars (10% for 300 MILLION). Thus the world’s highest quality zinc deposit (Kipushi), and a fabulously high grade copper deposit the size of London (Kamoa/Kakula) are being valued AT ZERO because Ivanhoe’s market is less than $3 billion dollars at present.
Long term or short term, I don’t care but the long term chances of losing are less on this one than short term. Do what you like, but the fact is, we are buying dollars for 20 cents. Short-term, I have watched the stock go from 80 cents to $4 to $2.83.
So short-term anything can happen. But I know that in the long term, this stock is going to have a price that will make you happy whether yo bought at 80 cents or $3.85.
AMEN!
Hey, not so much of the ‘old’ …..My good friend (and I class anyone thats done me a favour to be a friend….the list of favours youve done me is v loooong.)
As I say above, theres more than one way to play and theres risk/reward associated with each…..I guess the choice comes down to a personality thing.
Alan…For sure. A long-term investor and a short-term trader will often do the opposite in the same situation.
BTW: Long (obese!) Ivanhoe and Cleanteq and Ive done v well…iou one when we hit my Caribbean island
Also condor and PVG….. more porky than obese, but happily green. No question, mining has done me a lot more good than bio thus far.
Alan, I answered your query with reference to Ivanhoe instead of CleanTeq but the same priciples apply. Trading willl give you potential ptofit you might not get otherwise but the unpredictability of news and market reaction to it pose risks to an in-an-out approach. These guys are very well organized and when the news hits it is very big.
With every positive announcement the opposite position could be taken…buy MORE because the thesis is being proven step-by-step, but Mr. Market is stll somewhat skeptical and severely discounting the potenrtial.
I will gain more confidence with continued positive releases and will consider the bet at better odds with each positive announcement.
http://www.reuters.com/article/us-aerospace-composites-analysis-idUSKBN18P1X0?feedType=RSS&feedName=businessNews
New Russian jet heralds carbon manufacturing shake-up
Doesn’t mention scandium specificially but in the background it’s possible?
ss Yes Russia is using Scandium in their new generation of military aircraft for ,fittings, whatever that comprises. I ran across that info a year or more ago while researching Scandium. That could be the attachment structures for carbon/graphite fiber wings and body panels Cannot give citation reference right now. Plane you mention is essentially like military transport.
Russian military strategy re: aircraft…the Russians make pretty good warplanes, and one thing I read was that their strategy is to develop very good body designs and sink the new development costs into improving the insrtrumentation and weapons devlivery packages, which can be retrofitted into the existing frame designs. This makes a lot of sense
eonomically as opposed to US strategy, which is typically to develop completely new aircraft that have new everything…fusillages, wings, instrumentation, and weapon platforms. Good for Lockheed and Grumman, I suppose; but the Russian approach makes a lot of sense. It is cheaper to improve the radar, sensors and weapons packages if you have a reliable and proven air frame design that is effective.
CTEQF…scandium…the potential upside in scandium is there for sure but a lot of things have to happen before the market will really pay attentition and give credit for it:
Syerston has to go into production at good prices. There need to be off-take agreements. Big users have to have confidence to develop real products using scan-alu alloys.
So it is going to take a while even though the aerospace industry has known about the benefits of scandium for a few decades. And the current market is miniscule, a couple of dozen tons per year.
These relatively far-off developments for scandium are real and IMO likely to occur, but the long time frames for them are why CleanTeQ will tend to emphasize more near-term potential catalysts like cobalt, nickel, and water purification. The scandium is a real plus, and a big one, but the market is going to take a while before cfredit is given in the stock price.
Carbon fiber is a fascinating material about which I know very little. However as a main component for large transport vehicles I believe it has some very important disadvantages compared to aluminum, and specifically scandium/aluminum alloys. I will gladly accept any knowledgeable rebuttal of this assertion. The scandium/aluminum alloys will have many practicale advantages over carbon fiber and will be far easier to implement compared to carbon fiber. Carbon fiber has some attracctive charaxct=eristics but in total I think that scan/alu alloys will be far more dominant in the transport sector.
HN The weight is comparable but the properties are not . Carbon fiber is very flexible so it is used in golf club shafts, fishing rods and the like which must endure extreme stress bending without breaking.
Airplane wings droop at the ends when on ground but rise when bearing weight of plane in flight. Carbon fiber withstands that flex as long as it is suitably covered by coating etc.
Scandium alloy is strong and rigid and is suitable for airframes and wing attachments, panels and etc where stability is needed
Arch1: How come they dont use CF for body/wing parts yet….is it because it can shatter on impact?
Russia is leader in using carbon fiber for wings. No it does not shatter per se but it does not hold up to abrasion without coating. Body of plane needs to be rigid and strong to encase cargo/passengers. Boeing and Airbus are still using aluminium wings as flexibility of carbon fiber has its own problems that counter advantages. That may change with experience and cost/longevity. Metal develops stress cracks over time much more than CF.
Aluminum/carbon fiber…and remember aluminum is pretty cheap, so the advantages have to be pretty striking to make carbon fiber attractive.
I do not understand all the technical differences but remember that aluminum is plentiful and cheap and there are many reliable sources for it. The manufacturers are already used to it. So a totally new material has some exstremely difficult problems to overcome regardless of whatver maginal advantages it may have,
This is a dramatic contrast to using a small fraction of scandium to make an aluminum alloy that significantly improves the performance of the material that is already dominating the market.
We are going to do great with this scandium. It’ll get piled in to 3-D printers, and everything will come out from beach chairs to baseball bats to bullet trains. Its going to be worth a lot of $$$$ one of these days.
It won’t take 10 years either, the market and technology is already in place, just waiting for the supply on the material. http://www.technology-licensing.com/etl/int/en/What-we-offer/Technologies-for-licensing/Metallics-and-related-manufacturing-technologies/Scalmalloy-RP.html
http://www.marketoracle.co.uk/Article59168.html
Good vol. in Aussie market. Last time at .60 there Friedland showed up for a small buy at 60 cents and it held at that price. Wonder if FR was buying again today. It will be interesting to see. If so very positive.
All: I was watching a v looooong $3k teaser re Rick Rule and mining/metals last night. Most of it was blather, but two things made me frown. https://pro.moneymappress.com/p/RULLCH/ERULT610/?email=runningrep%40btinternet.com&src=d1&a=8&o=41616&s=61109&u=1632257&l=1336432&r=MC2&vid=rSEkBy&g=0&h=true
Once upon a time, Uranium was v cheap, went ballistic, then fell back massively in price. I can only think of one reason for this: either we are getting much better at re-processing it or theres too much being discovered/mined. Either way its created a supply and demand imbalance making it a buyers market. Ricks maps are a bit scary…looks like we are digging up the world leaving no stone unturned!. Ive never been a gold bug and his ‘discovery thats visible from space’ must be huge. Add to this all the other small gold mines around the globe and suddenly, gold aint rare any more nor does it really have any major commercial use; historically its ‘value’ relied on its scarcity. So, with so much more supply, the price must plummet…gold cutlery anyone? To some extent the same could be said of all metals. I fully believe that EV’s (in fact electric everything) is the future coz as a fuel, its 100% clean and infinitely abundant. The problem is making it portable/delivering it. Our battery technology is still pretty antique. Still, batteries need cobalt etc. So my question is: with this much mining going on, is the same likely to happen with cobalt/copper/lithium etc…..a supply imbalance?
Your thoughts would be appreciated.
Opinons only.
Copper: EV demand will rise very rapidly and Ivanhoe has low low low costs of production. They will be winners in copper because their costs will be lower than others.
Cobalt: Supplies are very irregular so big time demand will put pressure on prices, many of the suppliers will not be able to vet their sources as not originating from chold labor, etc.
Lithium: This one I do not trust on account of the many existing sources. I am not agt all comfortable makingh big bets on lithium.
Nickel: lots of sippliers but their will be increasing demand from EV.
Scandium: I can understand anyone’s skepticism on time frames but I believe it will happen faster than most people are willing to believe. There are already vehicle prototypes, a good understanding decades old from the Soviet productiojn of MIG 29s, serious interest from Airbus, finished vehicle sample prototypes, and computer printed prototype parts. Also there are strong motivations to reduce weight (hence fuel efficiency) and increase strength from major makers of all vehicle types.
In the case of CleanTeQ we have the added likelihood of a more cost effective mining process. Low costs are always going to be in style. And the environmental and water clean-up and supply problems still exist.
On gold and silver, I do not believe that new supplies will come on as fast as central governments can devalue currency. They may interfere and suppress prices, but on a true supply/demand situation I do not believe mining output increases will affect PM prices as much as investor sentiment and government creation of fiat currencies.
Again, opinions only.
re: Metals
HN – Clearheaded, thoughtful opinions are always appreciated.
Thanks, Peter
Scandium aluminium alloy is stronger and lighter than aluminum alone. also more rigid and less deformable so more difficult to machine. Every advance has its own problems to work out and it may take some time for scandium to be widely used. I would not buy stock expecting reward soon from Scandium. That is just my opinion.
Cleanteq itself stresses itself as a cobalt and nickel play. They do not feature scandium as a major selling point on the value except to those especially interested in it. Same with the water and mineral extraction.
Anybody have any idea why we are getting a shave, looks pretty extreme?
I have mostly shined off this 3 month decline in the stock price, and attributed it to just the normal ebb and flow of a volatile penny stock, since nothing changed in the story, it hasn’t concerned me that much. But a 50% decline, even if it is still up on the year, and up for the last 12 months, is still pretty extreme. So I look, and now I see nickel has dropped from over $5 to below $4 in this 3 month time frame, so that would explain a lot.
Noticed. News on the Aussie exchange that Friedlander had increased his holding by over 1 m shares in class recently
And then there is this. Anybody want to try and decipher it into plain language. Is this some kind of dilution, I see 4% but hard to wrap myself around all these numbers, its 4am my time. Is this why the stock was down as much as 12% in australia this morning? http://clients3.weblink.com.au/pdf/CLQ/01863156.pdf
They are options, right? Someone exercised some options? At least that’s how I see it. If only options, it doesn’t seem like a big deal to me, but I’m no expert.
If you have options in the money at a really great price there is not much reason to exercise , unless you intend to turn around and sell the stock fairly quickly. There are exceptions but this is generally the case. So when options are exercised, one would normally expect pressure on the stocvk price because there is more stock coming onto the market from the option exercise.
CLQ price volatility and “cleansing”…it appears to me that a lot of early investors got options at 11 cents.
So they have a profit of over five times their option value when the stock hits 50 or 60 cents. One cannot be surprised if a fair number of these early birds take some money off the table and the price tanks for a few days. Also note i the register that Aussie group through JPM had 33 million shares acquired at 39 ents and sold off 5 million between 80 cents and $1. Again, who can blame them ?
Also remember that this company has no real sales or income to speak of. It is a long-term speculation and we are going to see some wild swings based on sentiment and early investor cash-outs to ensure profit.
How many people have even heard of it, and how many see the whole picture ? You got the EV story with cobalt and nickel. You got water purification. You have element extraction from waste water. You have potential desalinization, although this is not a focus. You have a potential mining technology breakthrough. You have an undeveloped cobalt/nickel/scandium mine in Australia. You have strange deals with opaque Chinese
entitities, and a distribution agreement with a Johannesburg mining specialist nobody here has ever heard of.
Jiminy, you get batty just trying to understand what the company is all about. But for myself, daily or weekly price fluctuations are not news. They are normal for a thinly traded microcap and I am completely unconcerned, we are waiting for news and developments that will start sending the price to completely different levels that are multiples of current values. The stock has already been to a dollar this year.
Until and unless there is FUNDAMENTAL news about the company or its technology, why worry about it ?
I agree with general sentiment, but considering the stock price was double what it is now just a few months ago, you’d think early investors at super low buy-ins who wanted to cash out fantastic profits had a nice chance to do so at way higher prices. Why sell now at these prices? But whatever, I’m just thought rambling, as long as the story stays intact I don’t fret the troughs and crests.
CleanTeQ…I suspect that the mentality of big money players is more similar to Hedy1234’s thinking. They take a big position, but then cash out X percentage when they get a good gain to lock in a sure profit on the whole position and reduce their risk on the play.
Attitudes can change a lot depending on the amount of money involved, who the clients are, and who the managers have to report to, and other fasctors.
Put yourself in the position of Super Aussie, with 33 million shares at 39 cents. You see the stock hits a buck. Why not take some money off the table ? You are still in position for a huge home run with 28 million shares.
My DD has Aussie Super as a pension fund so they have to sell off some when they to much cash on balance sheet on any stock. Also regarding Aussie Super I don’t think they sold as of late… ” Their holding was diluted down to 5.04% (28,833,333 shares )when we issued the new stock to Pengxin. At law, they must disclose on market if their holding falls below 5.00% and they have not done that so they cannot have sold more than 300K shares or so.”
CTEQF…our opportunty as far as I am concerned. I averaged down, bought a lot more at 51-52 cents.
Believing the CleanteQ story, I see my position in CleanTeQ it to be a diversification from precious metals, gold and silver especially, in which I am still absurdly overweight.
CleanTeQ is a water, pollution, and technology play, as well as having potential in many other elements besides gold and silver. It lalso gives exposure to China and other third world countries in a way I am comfortable with.
Renby your math is off. This was for 288,000 shares out of 573 million shares =.0004 or .04 %. Peanuts…..
oh good, and thanks Hedy, I was just browsing around for any reason the stock was tanking 12.5% at that point, and saw that announcement, but at that fraction it means nothing.
So I have met Rick Rule at various conferences. The problem with CTEQF is that it is not in Rule’s stable so he won’t be promoting. It is an Australian company with Canadian promoters. I have been investing in Australian companies for 30 years and never met a person who has made money on any of them. Most Australian companies end up with a billion or two billion outstanding shares.
Study how Rule has made his zillions……
Everybody and their brother have had black box extraction technologies that never ever seem to work in real life. I have chased them all. Any independent verification on their black box?
They never ever ever file for patents in this industry. The problem I always had is that the owner of the black box tech would have loose lips and everybody was using his tech which was worthless. So frustrating….
One of the craziest black box techs was they would “seed” the resins with precious metals and hope they extract more out of their “proprietary technology” ionization process.
Not sure how committed Friedland is to CTEQF. I know he owns a chunk but does it motivate him now? Best of luck to all.
Mr. Lake Erie. I have great respect for your hard-boiled, experienced, and skeptical outlook, and in general your analysis, even though on occasion you pointedly ignored a legitimate question from me about your sources.
You may be correct about CleanTeQ and Aussie stocks in general, but in this case I believe you will find yourself to be mistaken. I have written extensively about the publicly available information on it, and I would be delighted to hear any negatives you might have specifically related to CleanTeQ. This does not include generalizations about the Australian stock market, mining promoters in general, or extraction technologies in general.
It has to do with a company that owns a major cobalt/nickel/scandium deposit in Australia, a company that has a binding contract to install a major water purification installation in Shanxi with a JV partner that is a Chinese state agency, a company that has supplied scandium samples to Airbus, which company has made prototype parts, and a company that has turned down a multi-year offftake agreement for cobalt with no less a player than Elon Musk of Tesla. They have deep-pocketed Chinese partners with capabilities in many related fields. And you may find their extraction technology questionable, but they are building their own mine using it, and have a major distributor in Johannesburg, Africa named Multotec that is actively promoting it on their website.
As far as Friedland’s commitment to CleanTeQ, from what I have read about him
I suspect that CleanTeQ is an extremely high priority for him. It cannot be compared to Ivanhoe at this point on account of its tiny market cap, and clearly RF has major private interests that also dwarf the current size of CleanTeQ on a financial basis. But if one takes Friedland at his word (which admittedly many do not), he has expressed deep concern about world environmental, social, and health issues…all of which CleanTeQ could be a major factor in improving. He strikes me as a 1960’s Reed College liberal who realizes you have to make a lot of money to do good in the world.
The problem is you do not understand confidential disclosures. However both I and even Dr. KSS addressed your question several times and even together and agreed on the margins. The second thing is you do not do elevator summaries so it is near impossible to understand easily your points of view. It makes it impossible to comment. I do not have the time or interest to read this entire thread. That is my problem. However I would always digest an elevator pitch and would share with my resource friends who are committed to the area and get their comments and feedback. Third you resort to name calling which I have never comprehended and gets you no where with me. I have no time for this.
Here is my latest Elevator summary for Arch as an example—you know my thoughts: https://www.stockgumshoe.com/2017/04/long-idea-of-the-year/comment-page-14/#comment-4936466
Imagine if you did a similar Elevator summary and put it in DropBox. and people shared it with their friends. I bet the stock price would not be $.46 a share. What is everyone’s entry here? Nobody has ever heard of this situation. Like Arch you need to get word out if you believe it is that good.
I once read a Elevator pitch for the old Ivanhoe in Mongolia around 2003 and I thought it was the greatest thing since slice bread. I could digest it in a matter of minutes and understand it. It was an awesome summary.
As I said good luck.
Cleveland, I do not write for the convenience of you, your friends, or anyone else. If you do not have the time to read the factual public information that has been published here and clearly referenced over a period of months, as it has occurred, then please do not lecture me or anyone else about doing due diligence.
And please do not drag Dr. Kss into this, he expressed a general opinion about margins that concurred with yours…but YOU are the one who claimed to have inside information on the actual COSTS and pointedly refused to elaborate. And this is not the bio thread,it is a hard asset thread so please stay on point.
Correction..this is the CleanTeQ thread. So Mr. Flaming Cuyahoga River can just read the opening
essay if he wants a summary
Why do you say I do not understand confidential disclosures ?
I understand them perfectly well, and if you had one about the costs of peptides similiar to those that were under discussion, all you had to do was say you were not at liberty to disclose it. You could also have given factual comparisons of other similar formulations without violating any confidences.
And one last comment about margins. A high margin on a $100 item results in a much higher retail price than an identical margin percent on a $20 item. Thus I considered the “high margin” answer as inadequate, as it did not give any indication of the potential penetration of the article based on its final cost to the end user, be it high or low.
HN: it’s perfectly obvious what this is all about. He’s trying to make people think he’s privy to some secret insider info but hiding behind I can’t divulge. It’s all Kings clothes. Either he should speak up or, if he really can’t divulge, shut up and stop dangling silly carrots. He’s just aiming to irritate team gummy. He may have some number crunching talents but beyond that, he’s naked and attention seeking.
Cleveland, why not take two minutes and check the Multotec website, see what their business is, and see whose black box purification methods are being sold to 300 African mine clients of Multotec under an exzclusive distribution agreement signed this month.
Cleveland, at least you believe your own thesis on the importance of promotion. But I do not care one iota whether CleanTeQ is is in Rick Rule’s portfolio…even though I suspect that it is. Rick Rule by his own admission has followed Robert Fruedland for over twenty years and made a fortune on Friedland’s companies.
Let’s connect the dots here. Rule is on good terms with Friedland. At the moment, to my knowledge, Friedland has only two entities in which the public can invest…one is Ivanhoe, the other one is CleanTeQ. Unfortunately for you and your negative experiences, these are Canadian and Australian listed companies.
Friedland has other major funds and investment companies that are not accessible to small investors like myself, such as Ivanhoe Capital, and a discovery technolgy called I-pulse. While Rick Rule publicly expresses
wonderment at Friedland’s serial success in mining, my suspicion is that Friedland has some proprietary discovery and analytical tools that he is keeping in his private companies but is utilizing to find important mineral deposits. Do you think Rick Rule is unaware of Friedland’s interests outside of Ivanhie and CleanTeQ ?
As I say, I am willing to wager real money that one way or another, your
acquaintance Mr. Rule has a position in CleanTeQ, and that at some point in the not-too-distant future we will see him extolling the virtues of CleanTeQ.
As far as your good buddies in the newsletter business, tell you what.
Give us the names of five resource stocks from any of these writers, and I will give five names. We’ll see whose stocks perform better by January1, 2018.
” I have been investing in Australian companies for 30 years and never met a person who has made money on any of them.” Most investors would have stopped investing by year 29. Saw post here today that someone at Sprott likes Clean Teq.
RF buying again … he should know more then any of us
http://clients3.weblink.com.au/pdf/CLQ/01863633.pdf
CTEQF…this is peanuts for RF, as mentioned before my guess is that he just has a standing order at his brokers to buy at certain prices when they fall too low. And 47 cents is pretty low.
Speaking of promotion and publicuty. . I do not put as much weight into it as some people do; but buying a few thousand shares of his own company while it is at low prices is a cheap way to get some inexpensive PR and instill investor confidence.
Putting the investment into perspective of RF’s total wealth, the amount of money imvolved is inconsequential.
I am by no means suggesting that it is a publicity stunt. Just considering some of the many possible motivations for such a small buy.
HN: Agree. I can see no other reason than promotion for such a small buy
RF just had 3 buys on open market for a total of 2,000,000 shares all around the SP of 60 cents Aussie. Much more then a few thousand shares. Sure looked to me like he was putting his finger in the dike. That was a very good thing. I think he wants the price up. Better to do deals with higher prices. He is out there now pounding the pavement . SP gives him Mojo in dealings.
RF: Not outright constructing a conspiracy theory here, but is it possible that he owns N shares in a bind account (say shares gifted to him) and he buys 1mill as RF (hoorah Rf is buying!) and sell 1 mill from the blind acct, gaining publicity and a fair profit on the bounce.
?
alan Of course there is such a possibility and would be perfectly acceptable. A person might do such also for strictly tax reasons,,, Though I must state I know nothing of Oz tax law. Profit is always a motive and thus probability.
On many penny stocks all the profit in them is by trading as they never return a profit from sales and end with all their assets owned by a new entity via buyout, merger, bankruptcy etc.
The simplest answer is that Friedland believes in the company and thinks the price is a bargain. Remember also that his deal with Jianag Zhaobai of Pengxin was PRECISELY equal in stock shares and they are in title equals…co-chairmen.
By increasing his position, he gains a slight but potentially meaningful fiduciary AND VOTING ADVANTAGE concerning company policies and decision making. This is not a small thing, and did not have to be negotiated with the Chinese partner.
$CLQ
Cleaning China’s Water BY VICTOR BIVELL – 06/06/2017
Get More Commentary, Discussion & Market Information On –
• PHK – PHOSLOCK WATER SOLUTIONS LIMITED
• EMC – EMEFCY GROUP LIMITED
• CLQ – CLEAN TEQ HOLDINGS LIMITED
• DEM – DE.MEM LIMITED
http://www.sharecafe.com.au/victor_bivell.asp?a=AV&ai=44272
Secretsquirrel…thanks, lists other Chinese waterr players. Lots of top-down pressure. No opinion on any other than CleanTeQ. Warning: Some readers strongly advise against it because it is traded on the Australian exchange.
HN I have heard warnings about trading on Vancouver and Toronto exchanges for many of the same reasons. Sovereign nations are not subject to US law except by treaty and will differ from strictly dealing in US stocks.
I am surprised that so many other nations place so much trust in US financial deals/stock market.
https://www.bloomberg.com/news/articles/2017-06-08/cobalt-upstarts-eye-glencore-s-turf-for-244-billion-ev-spoils
Clean Teq and Robert Friedland fans:
I’m posting a newly released Friedland-presentation from London not too long ago. He’s also “promoting” Clean Teq in the end.
https://insider.kitco.com/lifetime-achievement-award-presentation-fireside-chat-robert-friedland/
I know this is old 10/21/15, but theres plenty of condensed cleanteq foundational info inc desalination. I found it helpful/reassuring.
http://www.theaureport.com/pub/na/cleaner-water-and-stronger-aluminum-drive-clean-teqs-future