Scandium, Cobalt, and Water Purification: Clean Teq Holdings,Volume 2, 20182017 was a year of tremendous accomplishment for Clean Teq Holdings in every respect.
We saw remarkable achievements in mine construction, in finance, and in market development, with landmark contracts in every business segment;
We saw a complex business appear as if by magic, including business offices on four continents, and the launch of business website in the water division;
We were informed of superb existing and newly-formed strategic partnerships,
with the likes of Airbus, Peng-Xin Mining, Chinese state and power entities, Chinalco, and Multotec;
We were witness to a major off-take agreement with a leading battery manufacture;
We learned of an astute acquisition of a controlling interest in a VRB business by Mr. Friedland;
We learned of deep and valuable research and development support at prestigious universities and manufacturers;
and we became sure of unseen low-cost manufacturing contacts and alliances.
And oh-by-the-way, we got a listing on the TSX.
The company inspires confidence and optimism. Robert Friedland has a deep long-term strategy, and he knows what he is doing.
I am not sure what is more impressive: His strategic vision, or his managerial talent in executing it.
Clean Teq is a company that is worth following. It is by far my largest position.
There are a lot of companies with good concepts. But Clean Teq has a deep and brilliant strategic concept which is at the heart of major world trends; a revolutionary technology; and a management that executes flawlessly.
**
GOING FORWARD: SUITABLE TOPICS FOR THIS THREAD
1. CLEAN TEQ HOLDINGS, CLEAN TEQ WATER, and their interests, or related companies.
2. Miners and producers of COBALT, VANADIUM, SCANDIUM; also nickel, zinc, graphite, lithium, rare earths, silica, and manganese.
3. WATER PURIFICATION, especially when tied into mineral extraction therefrom.
4. “TECHNO MINERS” and other innovators in mining and material extraction
See notes below on thread and topic overlaps, which are unavoidable.
**
One year ago this week, I wrote an article on Clean Teq Holdings. It was a speculative company, but
one with a visionary and proven leader, dramatic potential in specific, attractive commodities,
innovative methods and IP for mineral extraction, and big ambitions in water purification.
Clean Teq Holdings defied easy categorization, and continues to do so.
One year later, Clean Teq has not disappointed. Clean Teq has exceeded all reasonable expectations.
**
If you need background on Clean Teq, I refer you to the predecessor of this thread: “Scandium, Cobalt,
and Water Purification: Clean Teq Holdings”, where you will also find the guidelines and rules for this
thread; and to the Clean Teq and Clean Teq Water websites, which warrant close examination.
OUR BIAS AND BASIC VIEW
This thread is for those who believe in the coming EV wave, light weighting of transport, and most importantly,
in the importance of energy storage and batteries of all scales;
and also, it is for those who believe that the disruptions caused thereby will be rapid.
Because of this opinion, it follows that the existing viable battery technologies and the materials needed
for them are important. We anticipate rapid change; we subscribe to the Tony Seba “Disruption Scenario”,
that suggests disruptiv changes are occuring faster.
If you disagree with the Disruption Scenario, or the eventual proliferation of EVs,
that is fine; but please do not debate it on this thread. The thread is for those who believe in the future of battery power,
and in the immediate opporunities in commodities related to batteries and energy storage.
We will be able to see in shortly whether we are right or wrong in this belief.
If it takes longer than we think, we will complain about ”being early.”
My perspective is for the next five years. That is “long term”. This is not a trading thread.
Occasionally short-term opportunities are appropriate to call out,
but short-term trading is not the emphasis here.
On the other hand should restrain ourselves from too much attention
to developments and materials for technologies that are likely to take longer than five years to have an impact.
We are looking for investable ideas, not 10 year forecasts on the Future of Civilization.
So let’s keep it down on hydrogen fuel cells and molten salt batteries for a couple of months.
**
NOTES ON THREAD AND TOPIC OVERLAPS
Our assumption is that Li-NCM, VRB’s, and zinc batteries are going to be the main battery formats purchased,
installed or contracted for in the near-term, hence the commodities needed for them are of interest.
New battery technologies are better discussed on the #batteries thread ,
unless they involve a vertical commodity/battery producer.
We are interested in what is going to have an impact in five years.
For example, if you are convinced that Google is about to conquer the world with a molten salt battery,
then come on over here and recommend Morton Salt as a buy-out candidate.
But debate whether molten salt batteries have a future, and when, on the #batteries thread.
News that shows increasing penetration on solar are relevant,
as they confirm the importance of large-scale energy storage.
But we would like to know who is getting the contracts and what type of battery they are using.
There is going to be some unavoidable overlap. Nickel and manganese sources are swing metals,
sometimes they may be better discussed on the Hard Asset thread as base metals.
If you make a post on the wrong thread, don’t worry too much, there are
no fines or jail time. I do it myself all the time and I understand it can be confusing.
You can also use Travis’ new cross-reference gizmo.
Long $CTEQF $CLQ Clean Teq Holdings
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.
https://www.livewiremarkets.com/wires/top-5-commodities-the-impending-energy-revolution
Chinese in photo-ops with RF
In some of the recent publicity shots from China, RF is with some heavyweights like the head of China Minmetals. I looked them up, and China Minmetals is the Chinese state-owned enterprise
directly responsible for making sure China has the minerals it needs.
There news releases are basically a list of people their Chirman has met with.
Guys like the head of Thyssen-Krupp, or the head of JP Morgan Asia, or Robert Friedland. People like that.
So it is not conjecture that RF is in direct and detailed contact with the highest levels in industrial China.
He is aware of the game plan and is playing a big role in it.
It is hard to imagine being more bullish than I was before. But I am.
I would expect quiet until after the shareholders meeting on April 18, when the capital raise is voted on. But after that…I expect a nice display of Chinese fireworks.
Gold Miners Share Price Performance: Australia vs. North America
https://www.sprottmedia.com/sprotts-thoughts/
$CTEQF – Quarterly Activities Report
Successful completion of a A$150 million institutional placement to accelerate development of the Clean TeQ Sunrise Project
Definitive Feasibility Study on track for completion in June 2018
Mining Leases granted over Clean TeQ Sunrise Project
Key executive appointments made to support Clean TeQ Sunrise execution and operational readiness
Partnership agreement with Chinalco and Chongqing University for scandium alloy development
Clean TeQ Water awarded breakthrough contract with Multotec
clients3.weblink.com.au/pdf/CLQ/01970038.pdf
Hope this link works. There are 12 pages to the report hoppe that tides you over till the 18th. 😉
$CTEQF long
Here’s the link to Clean TeQ’s report on the first quarter, dated April 11. It’s good to hear from then again.
http://clients3.weblink.com.au/pdf/CLQ/01970038.pdf
Thanks Eager I didn’t double check. Lately the formatting has come through on my comments till the comment is placed at the end of the thread and I didn’t check to see if it did. It also appears the http: wasn’t caught when I copied the URL Travis has been mucking with the code again. 🙁
$CTEQF $CLQ…real news and announcements…The release today is a recap of stuff we new already…all very good, but no new information for those following closely. I am not being critical, I think the company is doing great and deserves more
Exposure. But it makes think, as I have gotten very attentive to CLQ announcements, and find there is often more to them
If one really pays attention.
The timing of this one is sort of odd, but before saying why, let me mention something I saw this week when surfing around.
I came across a company called China Minmetals (CMC) in connection with Friedland on a Chinese visit. This company is The Chinese State in mining gear.They are responsible for making sure China as a country gets the industrial metals they need. They do everything, including and especially building mines. Direct report to the government, State owned. Anyway their news releases are pretty much very bland notes about who their Chairman met with that week. No hard announcements, just a recap of who met whom, with a flowery picture. So you see photo of RF and CMC brass one week, a German steel the next week, an international investment bank the next. All heavyweights.
What I have concluded is that the photo ops and releases are really indicators of major partnerships having been put into motion. They would not release the photos over meetings that didn’t result in anything. But the publication of these photos is in effect an announcement, to the effect “We are approving these guys and they will be doing business with China. Can’t say more right now, but we are going forward with them.”
On this assumption the bland, general, flowery language about the meeting with RF takes on much deeper meaning.
Past, present and future collaboration is emphasized. High level project planning is indicated. There is no mention of any specific project, and just a brief mention of the targets….copper, cobalt, and nickel. No mention of the meeting on Ivanhoe Mines or CLQ…because RF is dealing with CMC at the level of Ivanhoe Capital….higher up.
Anyway, scrutinizing the article, I make several deductions.
1. Deals have been done or are in the works for CMC to be involved in Sunrise, or The Kamoa-KKKW project, or both.
I think RF needs certainty, lower costs, and speed on Sunrise, and will horsetrade on the African copper project to get it.
2. The deal was done late March because the release said they met “March 26” and had discussions “in detail”.
3. Friedland has a lot of leverage because the DRC copper project will be 8 to 12x larger than Sunrise. And who was also present, but a rep from the Africa-China Development Corp.
4. CAPEX and raising money was a major point of discussion. Project level. Why do I say this . Because next to RF was Egizio Bianchini, just hired for liaison with the financiers. And why would the Head Engineer of the entire CMC company be present ? Because he needs to know what is going on. He is responsible for project costs and design and engineering. He is there because Friedland is going to be giving contracts soon on the largest copper mine in Africa.
BACK TO CLEANTEQ. The CMC meeting and release have occurred during a period where CLQ itself is involved in a capital raise. CLQ must be careful about releasing news during this period, they cannot “tamper” with the shareholder votes for the raise. But the meeting news release was from CMC, and no deals were announced, so CLQ is in the clear.
But I say, deals are done. We just have to wait until after April 18 to hear about them.
Two notable metals, SCANDIUM and VANADIUM, were NOT mentioned in the Minmetal news release. Their absence was conspicuous from our perspective, requiring some further speculation on why they were absent.
1. SCANDIUM..not an issue, because it will be taken care of at Sunrise as a by-product for the aforementioned cobalt and nickel; and because RF is all set with Chinalco, at the least. Supply will not be the bottleneck when Sunrise is up and running, at least for a while. The hold-up is now getting take-off and getting the nickel-cobalt project up and running. Scandium is a by-product and will only be available in quantity if Sunrise is producing nickel and cobalt.
2. VANADIUM…I think both sides have an incentive to keep attention away from vanadium for the moment. But I would be surprised if the sourcing of vanadium within China was not discussed, even though it did not get a mention in the Minmetal burb. In fact, I think a RF-China vanadium deal from coal or coke might be announced prior to EPC announcements on Sunrise and Kamoa. It is a smaller cap project, and Friedland’s Pu Neng has had a contract with China State Grid since November. Vanadium has got to be on the front burner for RF, even though news on it is scarcer than horned rabbits.
CLQ quarterly activities report…there is some good stuff in there.
Besides the leading bullet points we knew about, there is confirmation of some of our hypotheses and other good stuff:
–They have decided to build (see use of placement money),
–Fidelity’s 40 million shares may be over and above the Placement;
–High capex was the reason for the BFS delay; and
–The fixed price option is being pursued for Sunrise (surely with CMC)
Edited quote from CLQ’s announcement this week:
“Specifically, prior to FID, proceeds from the Placement will fund:
• Detailed engineering and design work for the process plant and associated infrastructure;
• (Long-lead procurement) including deposits for…acid plant, generators, and fabrication of special…equipment;
• (Infill drilling) to better define areas of higher cobalt grade…
• Early site works including earth works, infrastructure, construction camp and utilities.
The Placement was heavily oversubscribed and brought… new Australian, North American and international institutions onto the share register…Fidelity…became a substantial shareholder following the Placement.
[NOTE: This is a little vague, possibility that Fidelity’s 40 million shares position may be in addition to the Placement]
…
Definitive Feasibility Study Update
The Company provided an update on the progress of the DFS in late February, which included the decision to extend the delivery date to June 2018. The extension was necessary to enable the thorough evaluation of a proposal the Company received for a fixed price lump-sum Engineering-Procurement-Construct (EPC) contract for the construction of the Clean TeQ Sunrise process plant.”
[ Confirms that capex was the reason for the delaying BFS, gives weight to the idea that RF is negotiating a deal with CMC for a fixed price capex)
$Cteqf long Yes, an excellent and very encouraging report. Looking forward to the June DFS!
like you said, they have certainly decided to go ahead and build the mine, but then why do they put off the FID until the end of the year? That part doesn’t make sense to me. I know that is just the official public announcement, but still, you would think it would not take them 6 months to do that.
From IR…. While we have every intention of progressing into construction, there are a number of processes that still need to run their course before our Board will be comfortable to set the project on an irrevocable pathway toward production. Once the DFS is complete in mid-June, we will need to progress our discussions with offtake partners and our debt banks, and finalise the financing for the project. We believe completion of the DFS will enable us to complete these within the 6 month window we’ve given ourselves, however as in life there are no guarantees. The Board will want to see that the company has the funding, customers and development capability in place before they give it the official green light to progress.
Regards
Richard
Exactly. The “official green light to progress” cannot be given until the financing is in place.
A public “Final Investment Decision” does require knowledge of where the money is going to come from; and the financing is not in place, even though RF and we as investors are pretty sure it will happen.
As a practical matter, they have made a “Provisional and contingent investment decision”, insofar as they are very sure that they will get satisfactory funding, and it is going to be built.
They are spending money on things and doing things one does not do usually, unless the financing is in place.
So officially there is no “Final Investment Decision.”
There is a “Friedland-intends to-Decision.”
No doubt in my mind that the mine will be built. And as fast as possible. And this low SP has been great. I have been buying.
Me too. Hard to think the April 18 will be anything but an approval…insiders control about 40%, and the capital raise was intiated by RF and JZB who together have 26%.
The vote still has to be taken. But when ratified they have enough to go to the banks.
Especially if they have a commitment in hand from CMC for the construction bill at a fixed price….the the March 26 meeting…
All the pieces will be in place:
–smashing sales financials
–tremendous margins
–fixed capex with $150-200 mil cash on hand
for the bank loans
–key people hired
–lots of detail and advance work…hiring,
leases, equipment, mining block plans etc etc
The numbers work. RF leans on CMC to do the job for $900 or less. If pushed he can come up with $250 or more, so he needs loans of
$ 650-700. He will show the new money plus a couple of hundred million in owner’s sunk equity.
The loans will be there.
It’s going to be fascinating to watch.
https://www.fool.com.au/2018/04/11/is-clean-teq-holdings-limited-the-next-clean-energy-star/
$CTEQF…Motley Fool…great they mention it. Simple and accurate write-up. No detectable bias.
But this is what I mean when I say the analysts will consistently under-estimate Clean Teq. The MF guy does not even mention water of vanadium.; understandable, since the water announcement came two days after the MF article was published, and the vanadium deals are only visions in the HN Crystal Ball.
$CTEQF – Clean TeQ Water – Cooperation agreement with Chinese environmental research & design institute
http://clients3.weblink.com.au/pdf/CLQ/01970859.pdf
CTEQF long
CTEQF–Long…. Good to see that news Griffin !….Cowboy
$STNUF Thanks Cowboy having problems posting comments but this one was simple C&P.
btw STNUF is one of a few positions that is the green.
CLQ water deal…Pretty important. Couldn’t find much on Meili Guotu design institute, but the end customer is CITIC Construction, one of the biggest Chinese real estate/construction/ development firms, and the parent is CITIC GROUP, a State Owned corporation with 44 subsidiaries.
CITIC may appear again in the bank financing. CITIC will play a major role in infrastructure for the China industrial “Silk Road”.
CITIC has world-wide reach.
The deal probably won’t be an immediate catalyst…the traders are not even giving credit for scandium because it is too long away (!), but this is a major plus for Clean Teq and an incredible competitive advantage for water processing in China.
Also Meili and CLQ have exhanged board members, founder Peter Voigt is going to the Meili Board of Directors and Meili gets a seat on the Clean Teq Water board.
Your good…thanks for your DD
Long Live the Gummune !
Even though we are just a small enclave in a remote corner of it.
Hi HN I was wondering if you would care to share what is the percent of your investment in CLQ (CTEQF) versus your total portfolio value. I am currently long at 3.1 % and may be adding.
Thanks for being our ‘eyes and ears’ for this company.
I do not think my percentage is a good guide to go on for anyone else, because the allocation of assets I have in the stock market is not going to be the same as the next person’s, and my objectives for this money is not the same as another person’s, either.
I have more assets out of the stock market than I do in the stock market.
But to answer your question, over 30%.
It’s a little bit of a problem. I would like to diversify more, but every time I look at another resource stock and compare it to Clean Teq, I say:
“Is the leader better “…..NO.
“Is the management team better?”….NO.
“Is the deposit certainty as good?”…..Usually not
“Are the prospects and connections better?”…..NO.
“Is the mineral targets more desireable?”…NO
“Is the timetable to production as fast ?”…NO
“Is the IP as good ?”…….NO
“Is the financing as likely ?”…NO
“Is the company as diversified ?”…NO
“Is it in a better jurisdiction ?”….NO
“Will it make as much money?”…NO.
“Is it as sure a bet?”…NO.
“Do you know it as well ?”…NO.
“Clean Teq is a better investment than these.
So what the WTF are you doing ? Why buy this ?
And you are even more stupid to take money OUT
of Clean Teq ! ”
It’s like the V-8 commercial. You buy something else,
then slap yourself on the forehead and say:
“Darn ! I could have bought more Clean Teq!”
The business end of the announcement is the second header
and a little bit obscured.
“CITIC Construction…One Belt Road Initiative” is the business end of it. CITIC Construction is a subsidiary of CITIC Group, a major force in Chinese building and banking.
The One Belt Road Initiative is a major infrastructure project that will involve most of Eurasia and is probably going to be the largest infrastructure project ever built by the human race.
In a Northern Miner article from last year I read that Pengxin is the largest shareholder in a major Chinese water company. I checked and it is the one below. Traded on the Shanghai exchange but not a lot of info I could find. Very opaque but has a market cap of 7 billion CNY.
“Full Description (sic)
Heilongjiang Interchina Water Treatment Co Ltd, formerly HEILONGJIANGINTERCHINA WATERTREATMENT CO., LTD, is principally engaged in sales of water, the provision of sewage treatment service and engineering consulting service, as well as the sales of related equipment. It also provides engineering, procurement, construction (EPC) services and operational services. The Company operates its businesses mainly in Northeast China, North China, East China, South China, Central China, Northwest China, Southwest China.”
It’s becoming to look more probable that Pengxin is in there for the water and the technology. They do not need battery metals.
You are one heck of a digger. Nobody talks about water much as in investing. I think it will be huge.
#WATERisLIFE @WATERisLIFE $CLQ.asx $CTEQF $NNOCF
Please feel free to subscribe to the H2O thread >
https://www.stockgumshoe.com/2015/11/microblog-water-our-most-precious-resource/
https://www.stockgumshoe.com/2015/11/microblog-water-our-most-precious-resource/comment-page-5/#comment-4979259
All hail and credit to Gr8Full.
He started the threads on water and batteries.
I cannot keep up with him, I just try to grab an idea here and there.
$CTEQF $CLQ Clean Teq
I just noticed something. I think it is important.
It has been in our faces for a while, but the water announcement bangs you over the head with it.
Who are the usual partners for miners ? They are capital investors, or specialists in resource investing, or other miners, or users of the product, or streaming companies.
But Clean Teq is different. Clean Teq is partnering with:
–Engineering-procurement-construction firms, like CMC & CITIC.
–Conglomerates like Pengxin and CITIC, with broad capabilities
in engineering-procurement-construction, finance, development, construction, and real estate. Usually miners treat these firms as suppliers. Clean Teq is taking them as partners.
–Water specialists.. We learn Pengxin has the largest position in a major water processing company that has deep EPC capabilities and operates throughout China.
–Provincial political authorities as in the Hubei Province, and state-owned enterprises like CMC, Three Gorges.
The outline is a little blurry, but is beginning to take shape.
Putting aside the tech aspects for a moment, and even the specific mineral targets that Clean Teq may pursue, what is striking is the
preponderance of EPC capable conglomerates that are in real estate development, engineering, finance, and construction.
Something big is happening. There are a whole lot of somethings that are going to get built using CLQ technology, both for water and for mining.
Whatever these things are going to be, they are going to take a whole lot of Engineering, Procurement, Construction, and…FINANCE.
1. WATER A whole bunch of water treatment plants are coming. Municipals. Sewage treatment. Factory waste water. Pollution and ground water recycling. Mine water pollution. Of course, you need the right technology, too. But CLQ tech is not enough.
You have to have a lot of Engineering, Procurement, and Construction…and you need monster multi-project finance!!
And you need deep pockets…you need virtually unlimited financial power. You need someone with unlimited credit who can finance a lot of projects at the same time. Someone like the Chinese government.
2. MINES A number of mines and extraction plants with mineral targets are going to get built. Like Sunrise. Like those vanadium extraction plants I keep telling you about.
What do you need to build these mines ? You need EPC, you need finance, you need governmental co-operation, and you need Clean Teq technology. Sounds like #1 above, except the target is a metal, instead of purified water.
3. “Like those vanadium extraction plants”…speaking of which, you do remember what CLQ is going to use the vanadium for, don’t you ?
Of course. VRBs. Big batteries for big solar power storage. Besides making better steel for rebar and such. Easy one.
OK, it’s pretty simple to manufacture batteries and buy solar panels. But wait, it’s a little more complicated. Before you build the battery and order the panels, you gotta have the land, and a site a to build the battery and put out the panels.
You gotta have the plans and engineering.
You need all kinds of government approvals.
You gotta go to China State Grid, and get their OK.
And you gotta finance the thing.
Phew. What a hassle. But it has sort of a familiar ring to it.
engineering…procurement…construction or installation…installation…government approvals and co-operation…land…finance….
Wouldn’t it be great if Clean Teq had partners that could help them out in these areas ?
HN, There has been something in the back of my head I couldn’t put my finger on it. You got it BANG on. When Clean Teq starts to move it is going to be very fast, RF has plan and the pieces are in place.
Whatever it is up his sleeve it is really big and takes a lot of engineering, procurement, construction, finance, land, government approvals…and Clean Teq technology.
An interesting angle on Clean Teq is the relationship of technology to applications and commercialization.
In most situations, the technology is developed, and the applications and commercializations follow.
This is also the case with Clean Teq, but there is also a distinct trend that is reversing the order of usual sequence. Clean Teq is influencing the targets and direction of certain types of research, to solve specific problems for which he knows there is going to be a wide application.
This is the case in scandium and water.
http://benchmarkminerals.com/mining-journals-top-20-most-influential-people-in-mining-2017-benchmark-mineral-intelligence-gets-honorary-mention/
Kabila didn’t make the list.
$CTEQF $CLQ…Clean Teq is partnered with the research division of Chinalco. You might want to take a look at Chinalco’s website:
http://www.chinalco.com.cn/zglyen/index.htm
Public company but with the press releases not updated for a few years it’s hard to tell what they are up to.
Vanadium…some information I picked up…
I’ve been focused on vanadium in VRBs/batteries, but the applications in rail and building also are excellent.
Vanadium makes steel alloys lighter and more durable. Structural steel in buildings using 2-3% vanadium improves structural steel significantly for use in earthquake zones.
High speed rail track requires vanadium steel alloys for increased strength, stability, and durability.
These characteristics are interesting in view of the “One Belt One Road” initiative. The Chinese construction industry is going to be building a lot of infrastructure.
I have been inclined to stick with CLQ and (and SRI, but it is
very speculative) and wait for a vanadium announcement;
but maybe I should flesh out my positions a little.
We are ahead of the curve but the supply/demand demand situation is lopsided like it is with cobalt and scandium…potentially huge demand, with not a lot of supply
elasticity.
$SPNRF > Sparton Resources – SP decreased 10.58% 0.046USD
$SRI.V Decreased. 7.14 % 0.065CAD 20180413 > #B2U
$TWOU np -2U FinvizChart > edit in
$TWOU 2u 2U.com Finviz https://www.finviz.com/quote.ashx?t=twou
No recommendation on Sparton from me, even though I am long; it is too speculative.
The drop today is likely from what I expressed concern about…Barker diluted to raise dough for the Quebecois gold project.
It doesn’t jeopardize the stake in Pu Neng, it is too small. But why waste $$ on Canadian exploration when you have a real asset in VRB ?
Or at least, close a great deal on the Shaanxi vanadium. Chasing gold in Canada should not be the priority.
https://www.parkeschampionpost.com.au/story/5345116/clean-teq-to-invest-17-million-in-local-region/?cs=1496
A Look At The Junior Cobalt Miners In Early 2018
Apr. 17, 2018 3:02 AM ET|7 comments | Includes: AMSLF, ARRRF, ARTTF, AZRMF, BAR, BHP, BKTPF, BRVVF, CBBHF, CBLLF, CSSQF, CTEQF, CUZ, ECSIF, FQVLF, FTMDF, FTSSF, GBLEF, GMRSF, HIG, HLPCF, HNLMF, IIDDY, KBGCF, MCRZF, MLXEF, NDENF, NVO, NZRIF, OZMLF, PANRF, PLM, PTNUF, RNKLF, SNNAF, TAKRF, USCFF, WCTXF Matt Bohlsen
https://seekingalpha.com/article/4163388-look-junior-cobalt-miners-early-2018?
Investment advisor, portfolio strategy, growth at reasonable price 10,537 followers
Summary
Cobalt spot price history and some background cobalt articles.
A new look at the cobalt juniors that have a chance to make it.
My top picks. This idea was discussed in more depth with members of my private investing community, Trend Investing.
This article first appeared on Trend Investing on February 16, therefore all data is as of that date.
The cobalt miners had a great year in 2017, with many returning over 100% returns and some way above that. 2018 still offers the potential for strong returns in the sector, but investors need to select more carefully.
Some background cobalt articles of mine to read:
May 2016 – “Cobalt Miners Set To Boom”
December 2016 – “A Look At The Junior Cobalt Miners”
December 2016 – “Top 5 Cobalt Miners To Consider”
March 2017 – “Top 3 Cobalt Miners To Accumulate”
September 2017 – “Top 3 Cobalt Juniors To Consider”
December 2017 -“3 Well-Valued Cobalt Miners To Buy Right Now”
Cobalt spot price history – 2005 – 2018 – Price = USD 36.97
Source: InfoMine
A new look at the cobalt juniors (in order of likely production) …. #Best2ALL!
2 things of note on Matt’s article: 1) $ARRRF price down to .70 USD 2) CTEQF missing from his disclosure. Maybe it is listed under another heading/grouping not included in this article?
Disclosure: I am/we are long GLENCORE (LSX:GLEN), KATANGA MINING [TSX:KAT], NORSILK NICKEL (LME:MNOD), HIGHLANDS PACIFIC [ASX:HIG], AUSTRALIA MINES [ASX:AUZ], FORTUNE MINERALS [TSX:FT], RNC MINERALS [TSX:RNX] , ARDEA RESOURCES [ASX:ARL], COBALT BLUE [ASX:COB], AEON METALS [ASX:AML], GME RESOURCES [ASX:GME], CASSINI RESOURCES (ASX:CZI) , HAVILLAH RESOURCES [ASX:HAV], CONICO LTD [ASX:CNJ], CRUZ COBALT CORP [TSXV:CUZ], BANKERS COBALT [TSXV:BANC], POSEIDON NICKEL [ASX:POS].
Hi deanbob It’s on page 6 of 19 of the seeking alpha article. His quotes are in Australian dollars.
tanglewood, I did see the CleanTeq discussion within the body of the article; however, I thought it was odd that it did not appear the list of his long positions at the very end of the article.
$CLQ wow – Matt apparently did not own any of the concern when he wrote the article; nothing to disclose. #Best2YOU!
$CTEQF – The missing CLQ from Matts’ article today
between RNC and AUZ
My view is RNC Minerals is a well valued speculative buy, and a strong optionality play on nickel prices (and to a lesser degree cobalt) rising. Their grade is low but they have a massive sulphide ore resource and a strong financial backing JV partner at Dumont. A rising nickel price and some patience required with a multi-bagger upside if everything goes right.
Clean TeQ [ASX:CLQ] [TSX:CLQ] (OTCQX:CTEQF) – Price = AUD 1.23
Clean TeQ 100% owns the Sunrise nickel/cobalt/scandium project in NSW, Australia. Clean TeQ has 132kt contained cobalt in laterite ore at their Sunrise project. The company states that they are “uniquely positioned as one of the largest and highest grade sources of cobalt outside Africa.”
Their Proved & Probable resource is 96m tonnes at 0.65% nickel, 0.10% cobalt. The resource is shallow (5m to 40m) and extends over a 2km horizon.
A comparison of Australian laterite projects
Source
The 2016 DFS results included:
Post-tax NPV 8% of US$891m (A$1,187m) and 25% post-tax IRR.
Assuming long-term average nickel and cobalt price forecasts of US$7.50/lb and US$12.00/lb respectively.
Based on production of 18,730tpa of contained nickel metal equivalent and 3,222tpa of contained cobalt metal equivalent in years 3-20. 20+ year mine life.
C1 cash costs of US$0.89/lb nickel after cobalt by-product credits.
Capital cost of US$680m (A$906m) including US$62m (10%) contingency.
Catalysts – Q1 2018 – DFS to be released, further off-take agreements and possible project financing. Possible producer by 2019.
Current market cap is AUD 726m. Analysts’ consensus target is AUD 2.09, representing 65% upside.
Australian Mines [ASX:AUZ] (OTCPK:AMSLF) – Price = 0.091 (trading halt)
dean bob – I am a bit confused…..RNC MINERALS [TSX:RNX] on my stock page TDWebbroker, and I am long TSX:RNX but it is not RNC Minerals but Royal Nickel Corp. The OTC is RNKLF.
??
It’s all good. why TD doesn’t fix it ?? Sorry.
Lulu, I am with Fidelity, and I am only familiar with the company name(s). So, I really have no idea.
RNC MINERALS [TSX:RNX] – They changed names according to 10-K 99.99% sure. Best2ALL!
Bohlsen’s list: Over 30 picks. Too many for me, though a good list to pick from. All of the major cobalt picks and watch list tickers discussed here are there:
CLQ/CTEQF, ARL/ARRRF, AUZ, COB/CBBHF, PGM/PTNUF, ECSIF
Missing are the really small speculations like EUC, MEI
RE: Chinese infrastructure, EVs, batteries
IMPORTANT
https://www.bloomberg.com/news/features/2018-04-11/the-solar-highway-that-can-recharge-electric-cars-on-the-move
Chengtun Mining Group 2018 Q1 revenue reached #RMB 5.81 bn, rising by 81.6% over the same period, mainly due to its success in #cobalt business. Its #DRC 3500tpa Co & 10000tpa Cu comprehensive application project is planned to start commissioning on July 2018.
#InPro #China
You can see from this that companies who are actually able to ship cobalt are going to have a profit windfall, if they can get to market before the bulk of the new projects coming online.
$CLQ $CTEQF…results of April 18 meeting…capital raise and placement…Talk about low key. They just tell you:
“The issue of new shares was ratified. The Management proposal for the amount of the oversubscription was also ratified.”
They didn’t even say in the release how many new shares were
issued over and above the subscription amount ! So we don’t yet know how much cash came into the company yet…
https://www.nasdaq.com/article/chinas-beijing-easpring-looks-for-more-cobalt-nickel-offtake-deals-20180417-01456
When and if DRC cobalt comes back on line, it will take a lot of wind out of the sails of cobalt spec miners.
This has been noted as a distinct future possibility that could affect all non-DRC cobalt prospects.
I also raised the possibility that a two-tier market may emerge. Cheap cobalt from DRC, expensive cobalt from Oz.
The fact that Easpring is looking in DRC means they are hedging their bets, or that they are so large that 20% of CLQ production is not going to be enough.
Long-term I am not concerned about CLQ. For one thing they have many other minerals and avenues for income that are all on track and underestimated: Nickel, scandium, vanadium, water, Ionic.
For another their costs are expected to be less than even other 3rd world sources.
For a third, their studies are based on absurdly low cobalt prices anyway, and Sunrise is basically a nickel project.