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.
When you cut out cobalt!
Tesla on fire: UK director Michael Morris’ car bursts into flames – http://www.bbc.co.uk/news/world-us-canada-44511200
$CLQ
Here we a are, waiting patiently (?) for the BFS from CLQ. I just wanted to say
THANK YOU HN…..you and Sally have amazed me with the breadth and persistence of your research, the time invested, the correspondence of questions to management, the offering of your information to ALL OF US, and just plain openness of your head and heart give me great joy.
To the many others, pretty much all the rest of you and way too many to list here, Thank You as well for all of your input and suggestions. I have been very fortunate to be associated with this group of many ages and occupations, who has kept things at a moral and civil level not seen much today. Bravo to us all!
I am honored to be a part of the group and I look forward to the association with you all for years to come.
Now, I wish to bring up something we haven’t really spoke about, to my knowledge.
That is the current situation…….wait for it………regarding possible tariffs and a Trade War with China (so far).
How do you feel about the possible hindrance of getting the jobs up and running to completion? What possible events or stoppage of work, shipments, whatever have crossed anyone’s mind? Have we thought about it with regards to China as we have with DNC?
Best to all……………….edski
Nice Edski and 100% agree re HN’s hard work and the bon ami found on this site.
I dont think you need worry re tariffs. CLQ are not importing mining goodies to US, the US will be exporting machinery to Oz, and Im not aware that Oz is on Trumps hit list. As for the cobalt and other metals they dig up….thats a ways off so theres time for the dust to settle.
Sarah, edski…thanks for the kind words. In a way it is good we are a little “off in a corner”.
Now all we need, is to be correct on our picks.
TRADE WARS…..I don’t think there is anything to worry about that pertains specifically to the resources we discuss here. If you look at the country-to-country flows of materials and metals, US-China flows are not really an issue. We got Australia-to-everywhere,
Africa-to-everywhere-though-mostly-to China.
The demand side looks to be strong enough to withstand a blip in the China-to-US
trade. I do not see battery, grid storage, or clean energy, or water purification being affected. The dangers of a secular world economic downturn do not single out our stocks.
DRC PROJECTS….As far as DRC. It could get worse. But Ivanhoe is already so cheap it is hard to see it getting a whole lot worse. If it does, it will be short-term; and besides, Platreefs is in South Africa, not the DRC. When Ivanhoe is so cheap one should look at the value as the price for Platreefs, with KKKW and Kipushi valued at zero.
Check the Ivanhoe Mines news releases on Kipushi, KKKW, and Platreefs.
What you see is the strongest rebuttals possible. Things are happening fast…they are being built as fast as possible, politics, civil unrest, mining tax codes, and ebola
outbreaks notwithstanding.
Not that they cannot be interrupted. But compare the value of what you are getting compared to any other mining stock. It is absurd.
DRC politics…there are risks, I am not saying there are not. But my opinion is that the cobalt situation has been deliberately over-emphasized; the Chinese are moving in, and in the end they will have the strongest position in the DRC, if they do not already. The westerners will panic and sell out and the companies will be sold cheaply. The Chinese will buy and build their positions.
https://investingnews.com/daily/resource-investing/critical-metals-investing/cobalt-investing/roskill-growth-cobalt-demand-battery-sector-continue/?mqsc=E3965359
Liked watching u-tube video…thanks ….Thanks gumdaddy
$AUZ.asx $COB.asx $EUC.asx… Here’s a list of the top 100 best performing resources stocks on the ASX.
Scroll or swipe for full table. Click headings to sort. https://stockhead.com.au/resources/here-are-the-top-100-performing-asx-mining-stocks-over-the-past-year/
I have an account with interactive brokers through Zacks Trade Pro. Tried to buy CSE: XMG, MGX Minerals. A warning indicated the transaction would not execute until end of day. I called support, after many transfers, was told that Zacks Trade Pro clearing firm was not allowing new purchase transactions; implied it was not safe to buy MGX Minerals. I tried but was not able to get any additional information. Confused and concerned. Emailed MGX Minerals but have gotten no reply.
$MGXMF > Accepted my buy order at TDAmeritrade.
$XMG Pure > On IB states: “Transactions in this instrument are limited to closing-only trades.” Having over ridden their two warning popup messages, IB did accept the buy order. Both orders are pending, unfilled, until the market opens.
$CTEQF, $CLQ > When #BTL first introduced me to this equity in late ’14 or early ’15, #TDAmeritrade refused to allow me to trade for well over a year. One of many reasons I chose to open an InteractiveBrokers.com account. #Best2ALL
Ionic Industries, June ’18 update > Excuse the length, no link.
R&D Update and Your Questions Answered
We’ve been making steady progress across our water and energy programmes and we have answers to a few questions that we are often asked about our business model and strategy.
R&D Update
On our water treatment program, we are working intensively with our CRC-P partners toward demonstrating a commercial product that can be produced at scale with competitive pricing. That’s not to say we haven’t faced a number of challenges some of which have delayed us, but that’s to be expected in any research and development program, and I’ll explain this further below. The good news is that we continue to gain greater understanding of the advanced graphene materials that we’re working with and how we can best use their unique characteristics to produce commercial products that address the markets we’re targeting.
We’re working rapidly toward the point where we will be ready to establish the business that will take our products to market, and we’re looking forward to positive news on this front in the near future.
On our supercapacitors, we have been working with a number of companies in Australia and overseas to understand the requirements that they have for energy storage devices, the challenges they face in developing products for their markets and figuring out ways that supercapacitors can form part of the solution. We’ve recently achieved some excellent results on small prototype devices of our Origami Capacitor devices and we’re working now to adapt these to meet the precise requirements that we’ve gathered in relation to applications in the Internet of Things market.
On our MICRENs devices, we are continuing work on the miniturisation of the printed electrodes to consistently deliver the extraordinary performance of our patented devices at commercial scales. We are currently engaging with various companies in the medical devices and wearable technology markets to identify a suitable partner to work with us on this project.
Common Questions
Here’s a couple of questions that we get asked regularly and we figure that there’s probably a few others who have the same questions. Our goal is to be as transparent as possible with all our shareholders and stakeholders, so long as we’re not compromising commercially sensitive information. So please, feel free to shoot us questions (just reply to this email) and we’ll always do our best to answer them honestly and thoroughly.
Why are you working on multiple technologies, rather than focusing on just one?
Our value is built around the expertise of our research team in the area of graphene materials. Ionic is a graphene technology platform, not a water or a supercapacitor company. While it is important that we focus on the highest priority and closest to market technology, we also need to consider what will drive value for our shareholders over the medium and long term. To this end, we have several programs of research, but they are not all given the same priority and they are not all at the same stage. We have these programs planned out over phases to achieve the right balance between next-to-market priorities and long term value. The first priority (and majority of our current effort) is our water treatment work, which we aim to deliver commercial products in the short term. Next will be our supercapacitor technologies (Origami Capacitors followed by MICRENs) in the medium-term. In the longer term, we are looking at a number of options that will build on our existing work with graphene oxide and the skill sets in our research team.
Why the delays?!
When we’re planning research and development there are a lot of uncertainties and there’s always a chance that the target that we’re working towards is completely unachieveable. So the way we plan is to take a best case scenario, which involves all of our experiments giving us the results that we’re hoping for within the time allowed. We then add some contingencies based on our experience of delays on similar projects and we set a date. We often don’t get the results we’re looking for but its impossible to predict when that will happen, so the best we can do is stay flexible and adapt quickly to redesign our experiments… but this takes extra time, hence the delays. So, some delays are all part of the R&D process. The important thing is that with each cycle of experimentation we are learning new things about our technologies and the complex materials that we are working with all of which brings us closer to commercial products.
We hope this brings you a better understanding of Ionic’s business and strategy but as always, if you’ve any other questions or concerns, please don’t hesitate to reach out. We’ll also look to answer more questions like this in future updates.
As a final point, we note that many of you have registered options resulting from the Rights Issue conducted last year. We believe Ionic will qualify qualify as an ESIC company for the 2017-18 financial year. In that event,any funds invested to take up options would be subject to the 20% tax reduction and 10 year CGT-free period associated with ESIC investments. However, as always, it is important that you seek your own independent financial advice on how this applies to your specific situation.
All the best, The Ionic Team #Best2ALL!
Ionic Industries. While it may be early in the game, the more I read about this company the more I think HN (and other private investors) is going to do very well.
Over the last year my exploration picks have not done so well, I consolidated a lot of the really risky capital for exploration that I am willing to put down and put it into Ionic Industries. This is a tech development play rather than mineral exploration and discovery.
My remaining development/exploration/discovery plays are:
$MGXMF…MGX generating strong optimism.
$MUX Mcewen (gold play with copper upside)
$ARRRF…ni-co-sc, Australia.
$LNZCF Sama Resources (RF, West Africa, ni-co-cu-graphite)
$CNRIF Condor Resources (Peru, silver)
$ERDCF Erdene Resource Development (Mongolia, gold)
These I have pretty high confidence and not embarrassed to suggest them.
MGX is more a strategic process technology play than a discovery play; Erdene and Condor have Sandstorm backing; MUX has a gold company attached to its copper project; LNZCF has advanced and telling investments by RF.
Less confidence but I am in them:
$CMDRF Commander Resources, $FEXXF Fjordlland…missed on South Voisey’s Bay nickel, but could not exit gracefully and kept it.
$TSDRF Tsodilo Resources (Southern Africa, diamonds)…raw speculation.
$SPNRF Sparton Resources (China, vanadium)…very high reward potential but not for the faint of heart. The underlying reason for having it is that they have an 18% interest in Pu Neng.
Going forward there are a number of areas I find interesting; in particular, I am looking for tech plays in the energy sector, in particular situations that will be highly leveraged to the grid storage boom. CLQ and MGX seem in that sweet spot, although I might go for something more tech and industrial like Siemens or Fluence.
Uranium seems to be catching a bid also.
A breakthrough in CLQ would simplify things for me.
Ionic Industries…thius is really long-term because there is no public market. I just have to wait it out and forget about it. But as a research organization, there are really three areas that this fills for me:
1. GRAPHENE…filtration…the best thing here is that I expect Ionic will have a direct pipeline to commercialization through CLQ. Whatever they come up with will be commercialized and distributed.
2. GRAPHENE…far-out tch energy applications…this is really technical, but the impression I have gotten is that energy technology is really a major factor in RF’s thinking. And recently, I find that graphene has applications in energy technology, and Ionic is working on supercapacitors, whatever they are. See #3 below.
3. HI TECH ENERGY: We see this in the energy angle metals he is selecting for conventional mine development…copper, zinc, nickel, cobalt.
You think, “Wow, he has picked the hot metals. KKKW…Big Zinc…Sunrise.
Bright guy.”
But then, you notice scandium. Light-weighting for transport. You think,
“Wow, really smart guy.”
Then you see that scandium has application in solid state batteries.
You think, “Hmmm. Might be something someday. Bloom Energy is doing it… ”
Then you notice that platinum is going to be included in the Sunrise BFS figures,
and you see he is going all-out to build the world’s largest platinum mine.
And what is platinum good for ? Catalystic converters…and hydrogen fuel cells !
You think: “This guy is a genius.”
But when you see RF has put $100 million into a VRB plant and is scoring VRB contracts right and left, the same number is coming up: hi-tech energy.
You think: “Holy Sh$t ! He is going after vanadium!”
So when I see that graphene has applications in advanced energy technologies,
I am surprised…but not that surprised.
And it is not coincidence that he is putting money into Sama Resources, which controls 40% give-or-take of SRG…a rich flake graphite deposit in Cote d’Ivoire.
4. AFFILIATED COMPANIES…the impression of a deep energy technology strategy is strengthened when you familiarize yourself with RF’s other companies:
I-Pulse.
HPX.
Check them out. We can’t buy them.
But they help us understand what The Master is up to.
Gr8fil! Thanks for this update, where did you find it? It’s not on the Ionic website (yet)?
PS. Ionic. Anyone know if a U.K. investor can buy shares in an ESIC?
Hi Shavian. Best to contact Simon Savage MD directly.
Mr. Savage will advise of the minimum investment and the price.
At the time I committed the investment minimum was
$25,000 AuD and the price was 4 cents a share. The entire
process took a few weeks.
As a foreigner to invest in Ionic, I had to open an account with a full service broker in OZ and qualify under OZ rules as a “qualified” investor (in the US it is called a “sophisticated investor”). The thresholds are a little different in Oz versus the US.
The personal income and asset requirements required by the Auz authorities to make a buy for a PP are enforced by the financial institution where you are going to hold the security.
As I said, this is a “buy and forget” investment. We are waiting for
an IPO or other major transaction, after R&D.
It can take years, if it ever happens at all.
This is a research company. There is no public market for the stock,
no guarantee anything will ever happen, and a razor thin market cap.
#IonicIndustries > Hi Shavian! Updates are available from the company by subscribing to their newsletter: http://www.ionicindustries.com.au/ A popup window shall appear when cruising the site. #Best2You!
Many thanks HN and GR8ful! Helpful as ever. I was already in touch with SS trying to link him up with Neill Ricketts, the CEO of Versarien – two amazing CEOs who are happy to reach out to small shareholders. He has now confirmed exactly what HN said about investing in Ionic, which I propose to investigate.
Ionic and VRS seem to me to be among the very few global leaders in graphene, Ionic for its focus on water treatment and supercapacitors, and Versarien for its seeming mastery of two avenues, graphene inks and the infusion of Graphene Nano Platelets (GNP) into all sorts of polymers and carbon fibre. Both firms have an interest in China; Ionic via CLQ and VRS via their potential jv with Shandong province to create a “graphene valley” industrial park. Just a MOU at the moment, but backed by both Chinese and U.K. governments, it looks like coming to fruition any day now.
$CBLLF np > Matt Bohlsen: Cobalt 27 Has A Rapidly Growing Portfolio Of 11 (Now 12) Cobalt And Nickel Streaming And Royalty Deals https://seekingalpha.com/article/4182973-cobalt-27-rapidly-growing-portfolio-11-now-12-cobalt-nickel-streaming-royalty-deals? Peace
Cobalt 27: this to me is an interesting cobalt-only play. It is interesting if one wants an investment that is cobalt, and only cobalt.
Ironically while I am very undiversified over all, I do like diversification into more than one metal in my mining picks, and Cobalt 27 is strictly a cobalt commodity play.
The other reason I am hesitant is that I would want to verify that the actual physical commodity is there, in the quantities and grades claimed; and I would want to know technically the costs of converting their holdings to the chemicals demanded by the battery makers, which as I understand it means cobalt sulfate.
If I wanted a “pure cobalt” speculation, I would be interested.
$MEI np > https://twitter.com/KumovaTolga/status/1009618751795408896
#Graphene
Interesting article about china’s patent proliferation in Graphene:
http://www.chinadaily.com.cn/cndy/2018-02/01/content_35623375.htm
#HN
I trust HN is OK.
Heh…..Is he meeting with Friedland or taking some time off?
That would be the best news ‘ever’…but likely busy in his garage building a crib, highchair, rocking horse etc….after all, he is going to be a ‘grandpa’. Hey HN…..you good?
Everything is good !
FANTASTICO!
$AUZ no position…in a recent video Benjamin Bell disclosed that SK International had made a commitment to finance the mine at Sconi, and that such a commitment was a PRE-REQUISITE for negotiation of the 100% off-take announced a few months ago.
While this is very good news for AUZ holders, the question it raises in my mind is, WHY THE HELL WASN”T THIS DISCLOSED AT THE TIME !?
My two questions about AUZ were:
(1) How is the mine going to be financed ?…and
(2) What did AUZ give away in the terms of the off-take, which are “commercial in-confidence?”
The disclosure of the SK commitment partially answers (1), but leaves open (2).
And unfortunately confirms my distrust of management, that they would withhold this information for several months after the off-take announcement.
They already admitted that the $65 million for 19.9% option was tied to concessions
related to the furutre off-take…so this is really an advanced payment for offtake, a loan for which they are surrendering 19.9% of their equity. I don’t like it. It is not cash in to the company, it keeps them afloat for the year.
So now we come to learn that SKI made a commitment to build Sconi, but it is not known what AUZ gave up or what the terms of the loan will be.
***
On the surface of it, I think there is upside in AUZ; but I am now more confirmed
than ever on my distrust of management. Of course the take-off was conditional upon a BFS and a finance commitment…but now we come to learn that the finance was already in place as a pre-requisite to the take-off. What a charade.
I could kick them for the three-month delay in the BFS, but it is similar to what CLQ did, no material delay has been incurred in the contrsuction timetable, so I will give them a pass.
But one other thing aside from this: they brag about having “proven” technology in their process plan. “Tried and true.”But this is the same tried-and-true laterite technology that comes in with C1 costs that start at $5 and go up from there.
So now we know that the cobalt is all sold off, and the nickel is going to have
average C1 costs. There is not going to be a lot of profit in nickel for Sconi.
To be fair, the scandium is available to sell from Sconi, and Flemington is still open for development. But I suspect that the terms of the off-take and the financing will
be the cause of chronic shareholder disappointment as time goes by and real profits and earnings get announced.
Again I think there is some upside. The deposit is great and the counterparty is terrific. But I do not trust management.
$AL8.asx, AYR.asx and more: https://www.livewiremarkets.com/wires/stuffed-to-the-gunnels-with-stock-tolga-and-the-boys-await-news-from-the-alderan-front-2018-06-21
Stunning view of the Kaluben Mountain in Hulun Buir of north China’s Inner Mongolia Autonomous Region, where the Kaluben National Wetland Park is situated. https://twitter.com/PDChina/status/1010000735096922112
Peace
$PGM.asx is up 31%, JRV.asx up 10% > https://www.asx.com.au/asx/markets/equityPrices.do?by=asxCodes&asxCodes=auz+clq+euc+jrv+ncz+pgm+arl+mei+cob+pil Best
$PGM.asx > Re: Price and volume action on the 22nd of June 18 https://www.asx.com.au/asxpdf/20180625/pdf/43w0ht3g4rdvbd.pdf Best
https://www.reuters.com/article/us-saudi-softbank-group/softbank-vision-fund-saudi-arabia-to-create-worlds-biggest-solar-power-firm-idUSKBN1H40DN
$FYI – Cobalt Miners News For The Month Of June 2018
by Matt Bohlsen @sa Includes: AEOMF, AMSLF, ARRRF, ARTTF, BHP, BKTPF, BRCSF,
Summary
Cobalt spot prices fell for the month of June.
Cobalt market news – Benchmark Minerals says “the cobalt conundrum is just beginning.”
Indian state-owned firms mandated to acquire overseas lithium and cobalt assets – A rough deadline of March 2019.
Cobalt miner news – Katanga Mining announces settlement of DRC legal dispute with Gécamines and agreement for the resolution of KCC Capital Deficiency.
https://seekingalpha.com/article/4183547-cobalt-miners-news-month-june-2018?isDirectRoadblock=true
uh oh, I’m not sure the market is going to like these numbers??????
Part of me hopes your right. The part that just placed a stink bid to double down at Fridays close, hope your wrong.
The part I really like in the DFS is”Completion of the Definitive Feasibility Study allows the Company to progress the next phase of development milestones including finalisation of offtake agreements, completion of project financing and commencement of construction subject to the final investment decision, targeted for early 2019.” I hope that means hold on to your Bippy. 🙂
$CLQ > Clean TeQ Sunrise Definitive Feasibility Study completed
50 pages 3.0MB https://www.asx.com.au/asxpdf/20180625/pdf/43w0gg7qhdyb83.pdf
Clean TeQ Sunrise to generate significant community benefits
4 pages 675.0KB https://www.asx.com.au/asxpdf/20180625/pdf/43w0gnjq3jwbpr.pdf Peace
Quick impressions: Overall a conservative DFS, the story continues the same, it doesn’t seem either better or worse than what I already know, and it doesn’t change my conviction on this investment. It unfortunately speaks of further delay, and that is not happy making. Construction now pushed to “early 2019”. To get to a nice negative C1 number after credits, they used 10 tons of scandium sales, and also a little ammonium. They will be producing 8X that amount of scandium, with capacity for 2X more than that. To me, what this DFS does to a big degree is tilt this into a scandium play. We already have kind of valued in the cobalt and nickel, and while there may be room for the stock price to increase just on that value to a degree before production, the upside is now on that tremendous excess capacity for scandium. The CAPEX is what I expected, maybe a little more than the market expected. I’m bracing for a hit on the stock price, but hoping for something different.
Renby…your initial take is the same as mine.
They came out of the closet a little on scandium…but no platinum was included.
The market reactions are a mystery to me, although the major changes were in a slight push-back on the FID decision and the higher capex/lower IRR, which had been telegraphed plainly all along.
I note that AUZ also nosedived after their 100% take-off announcement; and ARL after their DFS.
My conclusion is that short-term price action is not governed by factors we can see. But it is clear to me that short-term price action is not at all correlated to the quality of the company, or its prospects.
While the market reaction to CLQ’s DFS is disappointing, I really do not see
anything fundamentally changed in its long-term outlook. What the motives and reasons are for traders selling, I cannot say. My position is limited by my personal finances; but within those constraints I am as bullish as ever. There is plenty of great news coming; and I have complete confidence in the management of the company and their work. How long it takes for “the market” to agree, is something I cannot analyze or control.
CleanTeQ’s SP is back to where it was on May 1 and I’m sure it will climb back up again. I think the real downers in the DFS are the high capex which might be as much as 1.5 billion, and the delay. These are connected because delay has financial consequences. Not only does it take longer to see profits but costs will probably rise with time because of interest rates notching up and inflation. And then delay can also impact confidence. So there is a triple whammy. Ardea’s stock price was punished because of delay perceived in its recent PFS.
I do have one question though. Who is handling the negotiations with potential off-takers? Ardea recently hired KPMG. Has CleanTeQ hired a firm to represent them? Did I miss an announcement? The negotiations with Easpring have been going on for months.
I was able to pick up some CleanTeq for 0.68 before and now there is another buying opportunity. I’m hoping it is onward and upward from here. My main future concern is with possible dilution. We have recently witnessed significant dilution with RF’s Ivanhoe as a consequence of the CITIC deal.
Best wishes to all.
Long $CTEQF, $ARRRF, $IVPAF
This is strange. What seems to be an upbeat DFS has resulted in a 5.63 percent decline in early trading on the AX exchange. CLQ.AX at $1.00 at 10:35AM
Keep holding that .67/.68 line CTEQF !
I got some more at .68……But I also added to Fidelity’s earnings by paying $54.95 for the transaction. Proof that someone is making money on this DSF !!