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written by reader Scandium, Cobalt, and Water Purification: Clean Teq Holdings,Volume 2, 2018

By hendrixnuzzles, January 31, 2018

2017 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.

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rubberworm
Member
rubberworm
April 18, 2018 12:33 pm
Reply to  hendrixnuzzles

A reply from IR regarding SP ect. I agree with it and think the pain now will be well worth it. I have been buying more down here at these prices. 6 months to a year from now I’ll be glad these Aussies sold off. The land down under…..
“The market is a tough beast, sometimes despite no change in the story (or no news), sentiment turns against you. My belief is there is a little bit of movement with the placement and SPP going through the closing stages, and the market generally being a little weak for the battery minerals stocks. Fortunately we’re not alone in seeing some price movement to the downside.

Our view is that long term shareholders will be rewarded. The Sunrise Project is an outstanding asset with a cost profile that should see it deliver key products at strong margins. It’s a long journey and there will be bumps along the way.

Until we are in production our Board won’t consider paying dividends as capital is better spent on building the company. This is typical for capital intensive mining/resources companies. Once we start turning a profit, it will be the Board’s decision as to whether distributing these profits as dividends or investing in expansion/new projects provides the best return for shareholders.

Regards

Richard”

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tanglewood
April 18, 2018 9:33 pm
Reply to  hendrixnuzzles

$CLQ.AX It looks like it’s making a nice recovery. Up .05 in Australian dollars at 11:05AM Thursday Australian time

👍 644
SoGiAm
April 18, 2018 9:53 pm
Reply to  tanglewood

$CLQ.asx, $COB.asx, $AUZ.asx, $AEE.asx, $ARL.asx, PGM.asx,
Long all 🙂 Currently All UP. Perhaps capitulation day in
Australia? 🙂

🙂 #Best2ALL! 🙂

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SoGiAm
April 18, 2018 11:18 pm
Reply to  SoGiAm

20180418 ~ 2200:15 :– > + $CLQ +~ 5% @ 1.055AUD
$ARL + ~ 23% @ 1.-65 AUD

$AEE ~ + 43& 🙂 @ .30AUD

$PGM + 8% @ 0.10 AUD

$ARL ~ 24% @ 1.075 AUD

>DJIA
(closed)
24,748.07b
-38.56 (-0.16%)

S&P 500
(closed)
🙂 2,708.64 🙂

2.25 (0.08%)

FTSE
(closed)
7,317.34

0.00 (0.00%)

Hang Seng
30,694.64

410.39 (1.36%) 🙂 🙂

Crude Oil
68.73

0.26 (0.38%)

10-Year T-Note
(closed)
2.87

0.05 (1.88%)

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SoGiAm
April 19, 2018 7:06 am
Reply to  SoGiAm
👍 11604
👍 9968
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rubberworm
Member
rubberworm
April 18, 2018 6:30 pm
Reply to  hendrixnuzzles
secretsquirrel
secretsquirrel
April 18, 2018 6:54 pm
Reply to  hendrixnuzzles

The BIG boys, the sharks are of course manipulating everything that is in their view, no debate on that surely? Its not a conspiracy theory! We are all like sardines in comparison, imo of course. They clearly know the EV/Energy space has great returns potential and is inevitable 100% given time.

The only thing is hold on the fundementials (read shares) of your own research as this tree shaking thievery is masterfull at best and downright sneaky crooked at it’s worst.

I’m holding all the ones I bought for some time yet and happy with my decisions….even can live with my pig picks as can’t win them all.

Diversification here is important no matter how much you belive in any one stock and that includes CLQ which is still a conviction stock for me.

Best SS,

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rubberworm
Member
rubberworm
April 19, 2018 12:07 am
SoGiAm
April 19, 2018 12:45 am

HUGE NEWS

FOR

🙂 THE #GUMROUP 🙂

🙂 SEE 🙂 @TriforceTrader Matt Owen
#Hive #Mind ON #TradeStation

ASX ANNOUNCEMENTS … announcements done better!

https://twitter.com/awkwardTrader/status/984677694653718528

http://asxanns.com/wp-content/uploads/2018/04/cropped-logo.png
http://asxanns.com/
Using #Data #Analytics #SpreadSheets #TO #Automate #Fundamental and #Technical #Information #FinTech #IoT #Mobile #Platform #Available #ML #Mining ##Python ALSO #Stocks #Futures #Forex #Commodities
#DataAnalytics #SoMe @H0U3

UPDATE 1-China’s Beijing Easpring looks for more cobalt, nickel offtake deals
(Adds background and details)
SHANGHAI, April 18 (Reuters) – China’s Beijing Easpring
Material Technology Co Ltd <300073.SZ> is looking for additional
nickel and cobalt offtake agreements to sustain growth in
cathode materials production for electric vehicle batteries, its
general manager said on Wednesday.
“We are also looking for other partners to ensure supply of
nickel and cobalt,” Li Jianzhong said at a business forum in
Shanghai, when asked if the company had appetite for more supply
beyond the offtake deal it signed with Australia’s Clean Teq
Holdings Ltd last year.
In August 2017, Easpring signed a five-year offtake
agreement with Clean Teq for around 20 percent of cobalt
sulphate and nickel sulphate output from its Syerston project in
Australia.[nL4N1LH2P3]
Li did not say when Easpring would start to receive supply
from Australia.
Both nickel and cobalt are key ingredients in electric
vehicle batteries.
The company is also looking to source material from Africa,
including top cobalt producer the Democratic Republic of Congo,
as Australian offtake alone will not be enough, Li told Reuters
on the sidelines of the forum.
Easpring expects China’s cobalt demand to grow about 9
percent from last year to 680,000 tonnes in 2018, Li said in a
presentation.

(Reporting by Tom Daly and Meng Meng; writing by Beijing
Monitoring Desk; editing by Richard Pullin)
((vincentsy.lee@thomsonreuters.com; +86-10-6627-1277; Reuters
Messaging: vincentsy.lee.thomsonreuters.com@reuters.net; follow
me on Twitter @Rover829))

Rank : positive…
**************************************************
ASX ANNOUNCEMENTS … announcements done better!

https://twitter.com/awkwardTrader/status/984677694653718528

http://asxanns.com/wp-content/uploads/2018/04/cropped-logo.png
http://asxanns.com/
Using #Data #Analytics #SpreadSheets #TO #Automate #Fundamental and #Technical #Information #FinTech #IoT #Mobile #Platform #Available #ML #Mining ##Python ALSO #Stocks #Futures #Forex #Commodities
#DataAnalytics #SoMe @H0U3

ALSO
🙂 SEE 🙂 @TriforceTrader Matt Owen
#Hive #Mind ON #TradeStation
🙂 #Best2ALL! 🙂

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SoGiAm
April 19, 2018 1:19 am
Reply to  SoGiAm

#IB now has #IBOT Button in the upper left screen in Green 🙂
Ask IBOT information on any listed concern, company,$XYZ . 🙂
InteractiveBrokers.com
🙂 #Best2YOU! 🙂

👍 11604
edski
Irregular
April 19, 2018 10:42 am

$KBT new small position
I was looking around for a pure cobalt play making sales TODAY as opposed to future mining, and came across Cobalt27. It seems that secretsquirrel mentioned this last year to us all! Since then, they have been acquiring Streams and Royalties as well. http://www.co27.com

I have been doing some DD on it and a few things bug me.
1. No financials since last October ?
2. Bought Cobalt in the open market over a year ago and it is in storage. Sounds good, but where did they buy it from. This is important because they argue that people will want and pay more for cobalt not obtained from the DRC for political reasons.
3. Ownership… The same few names appear on the three companies holding majority ownership.
4. Previous to changing it’s name to Cobalt27, it’s (previously named companies) seemed to have only LOST money. Also had too many reverse AND foreward splits for me.
5. Russian connections. I’m just sayin, in today’s world it’s something to think about. (Mr. ANTHONY MILEWSKI, Chairman, CEO & Director has had education and lived in Russia, so no need to question a Russian connection because of that).

6. I am not good at understanding a lot of financial numbers, but there seems to be a good deal missing from the company. What was evident is how they do offer themselves shares …… the Company announced that it has adopted a Restricted Share Unit Plan (the “RSUPlan”), subject to TSX-V and disinterested shareholder approval…….SEE PAGE FOUR OF THE LATEST OCT. 31, 2017 FINANCIAL REPORT. http://www.co27.com/_resources/financials/Cobalt-27-MDA-31-Oct-2017.pdf

So I put this out there for you to offer your opinions, and see if anyone else has discovered, invested, done DD, or want to offer their ideas on the company.

Despite my concerns, I took a small position, especially since all of our common interests are down anyway, in hopes what appears to me to be “too good to be true” actually is a viable and well thought out company.

secret squirrel, have you followed this story/company from last year?

Thanks everyone…………………..sorry that I can’t be around as often as I would like to be.
edski

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secretsquirrel
secretsquirrel
April 19, 2018 11:03 am
Reply to  edski

edski,
I didn’t take any position on this.
Can’t really comment or add anything else.
Best SS.

edski
Irregular
April 19, 2018 11:05 am
Reply to  secretsquirrel

Thanks SS.

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williamstown
Irregular
April 20, 2018 6:27 am
Reply to  hendrixnuzzles

HN I spend time during the day reading your posts, both here and on Hot Copper, and I enjoy your considered comments.
The ASX lately is getting harder to invest, just have to be conscious of fundamentals, and sectors.

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John
Guest
John
April 21, 2018 7:48 pm
Reply to  hendrixnuzzles

A few envious types trying to down ramp
CLQ tech. Little do they know in 2008 before the nickel slump it was proven by none other than BHP!

“Resin-In-Pulp for Nickel, Cobalt & Scandium
Between 2004 and 2008, the application of Clean TeQ’s technology for metal recovery from lateritic ores was developed in collaboration with BHP Billiton through an A$8 million investment. Clean TeQ’s continuous resin-in-pulp (cRIP) and elution processes were proven to extract and concentrate nickel and cobalt directly from acidic lateritic pulps at a much lower cost than conventional routes.”

Also a detailed video here;

https://youtu.be/d9zBfCSExj0

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rubberworm
Member
rubberworm
April 22, 2018 1:33 am
Reply to  John

John watched video. My life was industrial maintenance. There will be lots of maintenance to do here. IHMO a higher Capex would be great. Put the money up now to keep the opex down. They should have back up systems. They have two autoclaves. Those shaker screens will need to get replaced. Should have much more then one back up system. Costs money up front to do it right.

John
Guest
John
April 22, 2018 4:33 am
Reply to  rubberworm

Yes BHP validating the tech is huge. It’s the Opex where CLQ know they are leaps and bounds ahead of everyone.

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John
Guest
John
April 22, 2018 6:35 pm
Reply to  hendrixnuzzles
renbycage
renbycage
April 20, 2018 4:23 pm

Ardea and Clean TeQ stock prices are in the dumps, sucks to retrace to these levels, but I’m not too perturbed. The story has only gotten better. Unless something tells me production on a reasonable time frame is threatened, then I don’t feel there is a thing to worry about. These resources are worth many billions, in about the best jurisdiction possible, and the demand curve just keeps getting steeper with time. I’ve been loaded up for a while, and now there is nothing to do but watch as the story unfolds. There will be peeling as I hit ambitious targets, but I see these as worthy indefinite holds.

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arch1
April 22, 2018 2:31 am

I have been absent for a while so I apologize if the video link has been posted before.
A little info on Scandium I found interesting.

https://www.youtube.com/watch?v=oL3Cd01ho18

👍 7797
Lulu
April 22, 2018 10:54 am
Reply to  arch1

Great to have yo here arch1. You are a wealth of experience and life!

secretsquirrel
secretsquirrel
April 22, 2018 3:37 pm

Essential reading –

https://www.valuewalk.com/2018/04/top-5-commodities-the-impending-energy-revolution/

Economics
Top 5 Commodities – The Impending Energy Revolution
April 10, 2018 10:26 am by rodney_forrest

https://seekingalpha.com/instablog/576542-dr-john-faessel/5063884-market-disrupting-metal-alloy-will-transform-transport-industry

With the world embarking on a potential Third Industrial Revolution, according to one well-known economic advisor to China and the European Union, Jeremy Rifkin, the landscape for the commodities of today may well not be the commodities of tomorrow. Rifkin recently said:
Get The Timeless Reading eBook in PDF

Get the entire 10-part series on Timeless Reading in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.
Timeless Reading eBook

See 2017 Hedge Fund Letters.
schlappohr / Pixabay

“Premier Li read my book … and he then instructed China to move to a Third Industrial Revolution … GDP is slowing all over the world … it is over for fossil fuels … the next big bubble will be the US$100 trillion in stranded assets in the fossil fuel industry that will make the subprime 08 like the small game.”

This is where billionaire mining entrepreneur, Robert Friedland may well be ahead of the curve solving for the Third Industrial Revolution. Robert has always been worth following. He has been recognised by the Mining Journal, as one of the most influential people shaping the future of the world of mining. BMO Capital Markets Metals, Co-Head, Egizio Bianchini, has known Friedland since 1984 and says of him:

“He’s a dreamer and the glass is always half-full. He sees things way before others do – he’s early.”

In this wire, we thought then to explore 5 commodities that Robert Friedland is currently working on and how they might influence a new paradigm shift in the impending energy revolution.
Water

“Just like butter is the new kale, water is the new oil. We think water is going to become one of the most valuable commodities in the world,” Robert has said.

According to Hexa research, the global water and wastewater market is forecast to reach $674 billion, by 2025 (growing at 7% pa), driven by the rising demand for freshwater for drinking, industrialization and agriculture.

Robert is involved in two ventures related to water, through his private company I-Pulse and asx listed Clean Teq Holdings Ltd. Clean Teq (ASX: CLQ) has a partnership with Ionic Industries and Monash University following a Federal Government funding allocation, to develop energy efficient wastewater treatment technology using graphene oxide technology. The graphene technologies being developed include a graphene oxide nano-filtration membrane and graphene oxide coated sand that aims to supersede activated carbon as an adsorbent material.

CLQ also has a strategic partnership with Pengxin Mining, a private Chinese conglomerate based in Shanghai with interests in mining, real estate, construction, water-treatment, technology and dairy farms. According to ASX announcements, Pengxin is the largest shareholder in Shanghai-listed Heilongjiang Interchina Water Treatment Co Ltd, one of China’s largest publicly-traded water treatment companies and is working with Clean Teq to support rapid development of their business.
Vanadium

“We think there’s a revolution coming in vanadium redox flow batteries,” says Friedland.

He goes on to say “The beauty of the vanadium redox battery is that you can charge and discharge it at the same time, something that can’t be

done with a lithium battery. With a vanadium redox flow battery, you can put solar power and wind power into the battery, and you can put excess grid power into the battery at night, and at the same time you can have a stable output into the grid.”

A Vanadium redox battery, is a flow battery with electricity storage technology to support a more efficient, reliable, and cleaner electrical energy market. The Chinese Government, recently issued a policy document, “Guidance on the Promotion of Energy Storage Technology and Industry Development”, which called for more investment in energy storage, including flow batteries – $320b by 2020.

Friedland says “China has the largest and highest-grade vanadium resources in the world and is poised to use this miracle metal to fundamentally transform its electricity grid. With massive amounts of renewable energy and storage coming online, China will create the most modern, clean and efficient grid in the world.”

This really does appear to be a key game changer to the renewables space in China.

“Earlier this year, Chairman Xi and I discussed the opportunity to utilize Hubei’s abundant vanadium resources and Pu Neng’s next generation technology to set a new benchmark for the global energy storage industry. This is just the first step of what will be many projects working together,” said Robert in a Pu Neng press release.

Interestingly, Pu Neng is a private clean technology, chaired by Robert Friedland with the CEO of Pu Neng, Eric Finlayson, the former head of Rio Tinto exploration in Australasia. Eric is also a Non-Exec Director of Clean Teq.
Copper

In the Democratic Republic of Congo, Ivanhoe Mines, which is founded by Robert Friedland is developing the tier-one Kamoa-Kakula Project – independently ranked as the largest copper discovery in the history of mining on the African continent and the world’s largest high-grade copper discovery. As the world moves to green energy, Friedland expects copper demand to increase and prices to rise even higher, as it will be essential to the green energy revolution, as it has the highest conductivity of any non-precious metal and plays an important role in all energy production.

According to Friedland, by 2030 the Earth’s population will reach 8.5 billion, with at least 5 billion people living in urban areas. As the population grows, the need for quality clean air will increase, as cities turn to green energy. As an example, old cars are one of the main sources of pollution, and they are now being banned in cities from Shanghai to Barcelona. They are being replaced by electric cars, which will push demand for copper even higher. That’s because while cars using internal combustion engines require up to 23 kilograms of copper each, a hybrid electric vehicle uses nearly double that amount, at 40 kilograms of copper.

Friedland has said “Electric vehicle sales are expected to overtake internal combustion cars by 2038.” For those sceptical about how fast electric cars can be adopted by the market, Friedland has described how disruption can happen very quickly, as it did with the first cars in the 1900s. “In 1900 you were unable to spot a car in the streets of New York. By 1913, you could hardly find a horse,” he said.
Cobalt

Robert has said: “If I would buy one metal, I would buy cobalt.”

Cobalt is the critical element to electric vehicle batteries, with the price having now risen 65% over the last twelve months to USD$91,250 a tonne. Our research indicates the demand for Cobalt needs to rise 400% from today’s level if it is to meet a three-fold increase in electric car production commitments by 2020, as EV will contribute to 36.6% of total production. Further from a supply side perspective, by 2020 research by CRU Mining, factoring in CAPEX in development, has found there could even be a deficit by at least 10,000 tonnes annually.

Friedland’s Clean Teq recently completed an oversubscribed institutional underwritten raising for the Syerston cobalt-nickel-platinum-scandium project in Australia. What is interesting is Syerston has the largest and higest grade Cobalt outside of Africa, and at todays spot price and guidance of 5,000 tonnes (full ramp up) it could generate revenue for Cobalt alone of cAU$778m. The pre-feasibility study presentation by Robert Friedland in February 2017 had an NPV of US$1.23b and IRR of 30%. At the time the assumed Cobalt price US$12lb, yet Cobalt is now US$42lb, some 350% higher than the original NPV assumption. Syerston also could attract a higher price, as it produces commodities in sulphate form, which can be another 30-70% higher than the metal spot price. The Definitive Feasibility Study (DFS) is due to be released by the end of this quarter, which will bring to light the economics of the project.
Scandium

Robert has said: “Scandium is a miracle alloy, that enables you to 3D print with Aluminium. You can weld with Aluminium and make it more ductile.”

With the Chinese now imposing a 25% Tariff on Aeroplanes weight, Scandium has just become the most important commodity overnight for the aviation industry. Scandium oxide can be used to produce lighter and stronger aluminium alloys and has been found to lower an aircraft’s weight by 15% and save US$9m on construction costs, per plane.

Scandium is a soft, silvery-white metallic element which tends to come as a by-product of the leaching activity associated with production of other metals. However, Friedland’s Clean Teq contains the world’s largest and highest-grade scandium resource, that is produced as a co-product not by-product. There is an agreement in place with Airbus focusing on working together to determine potential demand for Scandium. Also, a partnership agreement with the world’s third largest Aluminium producer, Chinese Chinalco, to investigate the functional and commercial benefits of scandium used in China’s automotive and aerospace industries

So, there it is. Water, Vanadium, Copper, Cobalt and Scandium are 5 commodities Robert Friedland is thinking about and developing right now. In focusing on these five commodities, given his peers see him as someone who sees things way before others, just maybe, Robert has already seen the Third Industrial Revolution and is preparing accordingly.

Sources:

SoundCloud publication Episode 70, the unabridged interview with Robert Friedland – https://soundcloud.com/northern-miner/episode-70-the-unabridged-robert-friedland-sessions

Northern Miner publication “Celebrating a Lifetime of Achievement – Robert Friedland” – http://www.northernminer.com/people-in-mining/robert-friedland-celebrating-lifetime-achievement/1003785716/

Presentation by Robert Friedland – the future of Electric Metals – http://www.cleanteq.com/wp-content/uploads/2016/12/20170130_Co-Chairman-Presentation.pdf

Scandium, re weight/cost saving “Disrupting Metal to Transform Transport” Industry – https://seekingalpha.com/instablog/576542-dr-john-faessel/5063884-market-disrupting-metal-alloy-will-transform-transport-industry

Forrest Equities Pty Ltd holds shares in Clean Teq Holdings Limited (CLQ:ASX)

Article by Rodney Forrest, Forrest Equities

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secretsquirrel
secretsquirrel
April 22, 2018 3:39 pm

I tried to post a minute ago, but re posting as could not see it….

ESSENTIAL READING, covers everything WE here are interested in!!!

https://www.valuewalk.com/2018/04/top-5-commodities-the-impending-energy-revolution/

Economics
Top 5 Commodities – The Impending Energy Revolution
April 10, 2018 10:26 am by rodney_forrest

https://seekingalpha.com/instablog/576542-dr-john-faessel/5063884-market-disrupting-metal-alloy-will-transform-transport-industry

With the world embarking on a potential Third Industrial Revolution, according to one well-known economic advisor to China and the European Union, Jeremy Rifkin, the landscape for the commodities of today may well not be the commodities of tomorrow. Rifkin recently said:
Get The Timeless Reading eBook in PDF

Get the entire 10-part series on Timeless Reading in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.
Timeless Reading eBook

See 2017 Hedge Fund Letters.
schlappohr / Pixabay

“Premier Li read my book … and he then instructed China to move to a Third Industrial Revolution … GDP is slowing all over the world … it is over for fossil fuels … the next big bubble will be the US$100 trillion in stranded assets in the fossil fuel industry that will make the subprime 08 like the small game.”

This is where billionaire mining entrepreneur, Robert Friedland may well be ahead of the curve solving for the Third Industrial Revolution. Robert has always been worth following. He has been recognised by the Mining Journal, as one of the most influential people shaping the future of the world of mining. BMO Capital Markets Metals, Co-Head, Egizio Bianchini, has known Friedland since 1984 and says of him:

“He’s a dreamer and the glass is always half-full. He sees things way before others do – he’s early.”

In this wire, we thought then to explore 5 commodities that Robert Friedland is currently working on and how they might influence a new paradigm shift in the impending energy revolution.
Water

“Just like butter is the new kale, water is the new oil. We think water is going to become one of the most valuable commodities in the world,” Robert has said.

According to Hexa research, the global water and wastewater market is forecast to reach $674 billion, by 2025 (growing at 7% pa), driven by the rising demand for freshwater for drinking, industrialization and agriculture.

Robert is involved in two ventures related to water, through his private company I-Pulse and asx listed Clean Teq Holdings Ltd. Clean Teq (ASX: CLQ) has a partnership with Ionic Industries and Monash University following a Federal Government funding allocation, to develop energy efficient wastewater treatment technology using graphene oxide technology. The graphene technologies being developed include a graphene oxide nano-filtration membrane and graphene oxide coated sand that aims to supersede activated carbon as an adsorbent material.

CLQ also has a strategic partnership with Pengxin Mining, a private Chinese conglomerate based in Shanghai with interests in mining, real estate, construction, water-treatment, technology and dairy farms. According to ASX announcements, Pengxin is the largest shareholder in Shanghai-listed Heilongjiang Interchina Water Treatment Co Ltd, one of China’s largest publicly-traded water treatment companies and is working with Clean Teq to support rapid development of their business.
Vanadium

“We think there’s a revolution coming in vanadium redox flow batteries,” says Friedland.

He goes on to say “The beauty of the vanadium redox battery is that you can charge and discharge it at the same time, something that can’t be

done with a lithium battery. With a vanadium redox flow battery, you can put solar power and wind power into the battery, and you can put excess grid power into the battery at night, and at the same time you can have a stable output into the grid.”

A Vanadium redox battery, is a flow battery with electricity storage technology to support a more efficient, reliable, and cleaner electrical energy market. The Chinese Government, recently issued a policy document, “Guidance on the Promotion of Energy Storage Technology and Industry Development”, which called for more investment in energy storage, including flow batteries – $320b by 2020.

Friedland says “China has the largest and highest-grade vanadium resources in the world and is poised to use this miracle metal to fundamentally transform its electricity grid. With massive amounts of renewable energy and storage coming online, China will create the most modern, clean and efficient grid in the world.”

This really does appear to be a key game changer to the renewables space in China.

“Earlier this year, Chairman Xi and I discussed the opportunity to utilize Hubei’s abundant vanadium resources and Pu Neng’s next generation technology to set a new benchmark for the global energy storage industry. This is just the first step of what will be many projects working together,” said Robert in a Pu Neng press release.

Interestingly, Pu Neng is a private clean technology, chaired by Robert Friedland with the CEO of Pu Neng, Eric Finlayson, the former head of Rio Tinto exploration in Australasia. Eric is also a Non-Exec Director of Clean Teq.
Copper

In the Democratic Republic of Congo, Ivanhoe Mines, which is founded by Robert Friedland is developing the tier-one Kamoa-Kakula Project – independently ranked as the largest copper discovery in the history of mining on the African continent and the world’s largest high-grade copper discovery. As the world moves to green energy, Friedland expects copper demand to increase and prices to rise even higher, as it will be essential to the green energy revolution, as it has the highest conductivity of any non-precious metal and plays an important role in all energy production.

According to Friedland, by 2030 the Earth’s population will reach 8.5 billion, with at least 5 billion people living in urban areas. As the population grows, the need for quality clean air will increase, as cities turn to green energy. As an example, old cars are one of the main sources of pollution, and they are now being banned in cities from Shanghai to Barcelona. They are being replaced by electric cars, which will push demand for copper even higher. That’s because while cars using internal combustion engines require up to 23 kilograms of copper each, a hybrid electric vehicle uses nearly double that amount, at 40 kilograms of copper.

Friedland has said “Electric vehicle sales are expected to overtake internal combustion cars by 2038.” For those sceptical about how fast electric cars can be adopted by the market, Friedland has described how disruption can happen very quickly, as it did with the first cars in the 1900s. “In 1900 you were unable to spot a car in the streets of New York. By 1913, you could hardly find a horse,” he said.
Cobalt

Robert has said: “If I would buy one metal, I would buy cobalt.”

Cobalt is the critical element to electric vehicle batteries, with the price having now risen 65% over the last twelve months to USD$91,250 a tonne. Our research indicates the demand for Cobalt needs to rise 400% from today’s level if it is to meet a three-fold increase in electric car production commitments by 2020, as EV will contribute to 36.6% of total production. Further from a supply side perspective, by 2020 research by CRU Mining, factoring in CAPEX in development, has found there could even be a deficit by at least 10,000 tonnes annually.

Friedland’s Clean Teq recently completed an oversubscribed institutional underwritten raising for the Syerston cobalt-nickel-platinum-scandium project in Australia. What is interesting is Syerston has the largest and higest grade Cobalt outside of Africa, and at todays spot price and guidance of 5,000 tonnes (full ramp up) it could generate revenue for Cobalt alone of cAU$778m. The pre-feasibility study presentation by Robert Friedland in February 2017 had an NPV of US$1.23b and IRR of 30%. At the time the assumed Cobalt price US$12lb, yet Cobalt is now US$42lb, some 350% higher than the original NPV assumption. Syerston also could attract a higher price, as it produces commodities in sulphate form, which can be another 30-70% higher than the metal spot price. The Definitive Feasibility Study (DFS) is due to be released by the end of this quarter, which will bring to light the economics of the project.
Scandium

Robert has said: “Scandium is a miracle alloy, that enables you to 3D print with Aluminium. You can weld with Aluminium and make it more ductile.”

With the Chinese now imposing a 25% Tariff on Aeroplanes weight, Scandium has just become the most important commodity overnight for the aviation industry. Scandium oxide can be used to produce lighter and stronger aluminium alloys and has been found to lower an aircraft’s weight by 15% and save US$9m on construction costs, per plane.

Scandium is a soft, silvery-white metallic element which tends to come as a by-product of the leaching activity associated with production of other metals. However, Friedland’s Clean Teq contains the world’s largest and highest-grade scandium resource, that is produced as a co-product not by-product. There is an agreement in place with Airbus focusing on working together to determine potential demand for Scandium. Also, a partnership agreement with the world’s third largest Aluminium producer, Chinese Chinalco, to investigate the functional and commercial benefits of scandium used in China’s automotive and aerospace industries

So, there it is. Water, Vanadium, Copper, Cobalt and Scandium are 5 commodities Robert Friedland is thinking about and developing right now. In focusing on these five commodities, given his peers see him as someone who sees things way before others, just maybe, Robert has already seen the Third Industrial Revolution and is preparing accordingly.

Sources:

SoundCloud publication Episode 70, the unabridged interview with Robert Friedland – https://soundcloud.com/northern-miner/episode-70-the-unabridged-robert-friedland-sessions

Northern Miner publication “Celebrating a Lifetime of Achievement – Robert Friedland” – http://www.northernminer.com/people-in-mining/robert-friedland-celebrating-lifetime-achievement/1003785716/

Presentation by Robert Friedland – the future of Electric Metals – http://www.cleanteq.com/wp-content/uploads/2016/12/20170130_Co-Chairman-Presentation.pdf

Scandium, re weight/cost saving “Disrupting Metal to Transform Transport” Industry – https://seekingalpha.com/instablog/576542-dr-john-faessel/5063884-market-disrupting-metal-alloy-will-transform-transport-industry

Forrest Equities Pty Ltd holds shares in Clean Teq Holdings Limited (CLQ:ASX)

Article by Rodney Forrest, Forrest Equities

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hedy1234
hedy1234
May 1, 2018 9:06 am
Reply to  secretsquirrel

Travis-if you read these postings please note the dates at the bottom look incorrect.

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d.mounts
d.mounts
May 1, 2018 10:28 am
Reply to  secretsquirrel

SS – Good reading. Thanks.

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renbycage
renbycage
April 22, 2018 11:14 pm

DFS

Clean TeQ’s Sunrise project is not really a mine, it is a chemical factory, and their product is not really a metal, it is a salt. It is a salt factory with three flavors, cobalt sulphate, nickel sulphate, and scandium oxide. They’ve already told us how much of these salts they think they will be able to produce, and when. In my opinion, its an exercise in futility and kind of senseless to look at this project in any other more complicated way. Its not a nickel/cobalt mine, though of course they have to mine the nickel/cobalt in order to manufacture the salt [therefore it has a mining part]. It is not a nickel mine with cobalt credits, or a cobalt mine with nickel credits, why on earth would you give one of these elements primacy, in actual money, they are worth pretty close to the same, the cobalt is 6 times the cost, and nickel is 6 times the volume. How much the metal is worth is actually completely irrelevant, how much the salt is worth is what matters. There is a direct relationship between the metal price and the salt price, but actually this relationship can vary quite a bit, The premia on the sulphate could be anywhere from 10-40%, and who knows, in the future it could very well be more. So I don’t care if the company put out its PFS using metal terminology, and if they put out their DFS using metal terminology, to me, that would be a poor choice, because it confuses what they are selling, and what its price is [They won’t be selling nickel at $7.50, they’ll be selling nickel sulphate at whatever its price is]. They simply should tell us how much of each of these salts they think they are going to produce each year, how much they estimate its going to cost to produce them, they need to use a price for what they think they can sell the salt [my own choice would be todays sulphate prices minus a 20% discount], and then they can do the math for us, which should now be easy, to tell us how much money they think they are going to make. Just my way of looking at it.

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Griffin
Griffin
April 23, 2018 12:51 am
Reply to  renbycage

That all makes sense. It would be very interesting to take Tour when operation is up and producing. It would be interesting to see how they handle the water. Not to mention what percentage they are recovering.

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