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.
Hi all !
I have been back in the US for about a week after a really great extended time overseas. I am sorry to be out of contact. My positions have not changed by even one share in the last six weeks.
I have not followed developments very closely so I have no major insight or opinions that change things. I am surprised at the stock price and have noticed the major developments so I will restrict my comments for the time being to those aspects.
CLQ/CHINA…the deal with China MinMetal seems to me to remove the capital risk, but it does raise the specter of how heavily dominated by China CLQ will wind up being. Like it or not the scale is now really heavily tilted towards China. One has to reconcile that or shift assets elsewhere.
Some knowledgeable engineering types I have listened to are worried about the partner’s track record on the Ramu nickel project. Others have expressed worry about China stealing IP. In the end, these factors are worth thinking about, but I have not decided to change course on account of them.
The market has not reacted positively to the risk reduction aspect of the Minmetal EPC deal…I suppose because they are not showing capex reduction even though the risk is mitigated.
CLQ/STOCK PRICE…while the stock price is troubling I think it can be attributed to the commodity prices in cobalt and nickel. I have spent some time reconsidering whether the politics of Trump, oil, and CHina may have a long-term effect…maybe the EV revolution is overblown, maybe there will be a devaluation, etc etc. . In the end I think it is the commodity prices…nickel around $5.70, cobalt under $30.
Also…the other cobalt spec miners are also in the dumpster. For example AUZ
has 100% takeoff to Korea and sold an option to the Koreans at 12 cents…but the stock price has cratered to 4 cents. So the valuation problem is not unique to CLQ.
IONIC JV…very welcome and right on time per previous guidance.
I have a large speculation in IONIC and the JV was the first fish-or-cut-bait event that was hoped for. This is an extremely positive development for both CLQ and Ionic, but likely to be undervalued since the mining spec types don’t even give much credit for cobalt and nickel and scandium, let alone water purification. Ionic is just another long-term ace-in-the-hole…CLQ has a lot, I would love to have a short-term catalyst for one of the long-term upsides, but there is nothing I can do about it. And there is no public market for the Ionic stock now anyway, and one is not likely for several years. But hey, I got a bunch of it at 4 cents. So I will wait and see.
CLQ OFF-TAKES…nickel/cobalt…waiting; not worried, but something firm will help the stock price. High stakes poker. I think the thing to worry about here is stabilization in the DRC and increased supplies to China from DRC.
In the end the cobalt spot price will tell the story.
CLQ OFFTAKES…scandium…same waiting game but there is the chance of some European influence from Airbus although my best guess is that Chinalco will lead. When a big takeoff comes in scandium, it will be catalytic…in my opinion. The useage of any of the big guys can easily exceed world production levels, and Sunrise will be able to deliver.
VANADIUM…before my vacation, I predicted big things for Friedland interests in vanadium. CLQ may be involved, they may not be…it depends on who finds the deaI. I see no reason to back down from this prediction, although it may take a while. Friedland has $100 million invested in the leading VRB manufacturer in China and is holding big contracts that require vanadium. The only thing I saw in the last two months was that a deal was done with a Chinese vanadium producer, but I have been unable to ascertain if they hold mining interests.
FINANCING…tied up with off-take…just haven’t seen any developments.
SUMMARY. I have a big paper loss but emotionally and intellectually I am equipped to handle it.
Clean Teq has always been a LONG TERM INVESTMENT.
I would have preferred a more independent course, not as tied up in Chinese interests; but the course for Friedland is with China, and he still has leverage and enormous potential from non-Chinese sources and non-CLQ assets.
And China cannot dominate CLQ unfairly without damaging the significant Chinese stakeholders in the company. So bottom line, I can live with it.
So bottom line for me, no change in position or outlook.
As for other stocks, I have not reviewed them and have made no changes.
After CLQ my largest positions are in Ivanhoe Mines and Sandstorm Gold.
AVOIDING POLITICS…over the last two months I have spent considerable time analyzing and researching the political situation in the US, with an eye towards the investment implications of what I think is happening.
Out of deference to Travis, these political topics are to be avoided on his website. In any case, I have not arrived at many strong opinions about the financial impact of what I perceive to be the political developments…other than, I would be concerned about big tech social media tickers like Google and Facebook, which I do not hold anyway.
The main issues for me as they relate to commodities are as follows:
1. Will US/Trump policy have a major inflationary or deflationary impact ?
2. Will US/Trump energy policy have a major impact on oil, energy, or battery commodity prices ?
3. What will be the impact of US/Trump policies on the EV revolution ?
4. What will Chinese and US policies mean for the DRC, South Africa,
and metal prices ?
As I say I have not arrived at many conclusions. The future is even more unpredictable than it appeared to be two months ago.
In passing I would say, while trying to avoid controversy here, is that the attempts to censor free speech on the internet are quite real and I have experienced suppression first hand.
On Stock Gumshoe, it is tolerable and within the prerogatives of Travis.
But elsewhere it has been distressing to see political suppression on “public”
venues like facebook, youtube, Google and twitter. Personally I think the situation will reach a crisis in the near future. For the sake of everyone I hope it is resolved in favor of free speech and freedom of the individual. Censorship and suppression are bad enough…it is even worse when it is anonymous.
Welcome back Hn: everyone should be or get acquainted with their home country political issues…..it has been quite the past two months on both sides of our borders (eh)!
Welcome back hn!
Unpredictable about sums it up and that’s one thing no one needs.
The USA/China situation is disruptive, let’s hope it’s resolved.
A trade war is not what business wants, nor investors here.
Simplistic view perhaps….
https://www.cleanteqwater.com/uncategorized/clean-teq-water-expands-technology-platform-through-acquisition-of-biological-denitrification-technology-production-lines-and-patents/
Clean TeQ Water expands technology platform through acquisition of bacterial immobilization technology, production lines and patents
Long CLQ
https://www.cleanteqwater.com/uncategorized/clean-teq-water-expands-technology-platform-through-acquisition-of-biological-denitrification-technology-production-lines-and-patents/
Clean TeQ Water expands technology platform through acquisition of bacterial immobilization technology, production lines and patents
Long CLQ
Hi Squirrel, this is a new weapon in the CLQ arsenal. I speculated that the HOYO water project might be in suspense, pending new capabilities from Ionic…and it looks like I was half right, in that the newly acquired Lentikats technology was mentioned as having application in the HOYO project.
So maybe the new Ionic technology will be applied there, also.
Anyway very positive on the water, we need all the help we can get with $5.70 nickel and $27 cobalt.
$CLQ $CTEQF…acquires Lentikats, “bio lense” filtration tech
CLQ has acquired a company that makes a bacteria based filtration system.
They are indicating it will be applied in the HOYO project, also that the compoonent will be manufactured in China.
What we have witnessed in the last few months with the Ionic JV, the deSalx, and now the Lenitikats acquisition is that CLQ is assembling a complete set of technical solutions in water purification and filtration.
This is in addition to their formidable suite of mineral extraction solutions for mining extraction and mine and industrial water treatment.
What is most impressive is that in addition to a variety of technologies and applications, CLQ will have vertical manufacturing and a world-wide distribution network in place as the new technologies are developed and proven.
I have been perturbed like everyone else about the recent stock price. But between rthe Ionic graphene JV, the Lentikats acquisition, and deSalx it looks like the water division will rock and roll in a faster timeframe than one might expect.
Hi all, been reviewing the comments from the last five or six weeks.
For those who expressed appreciation, and had confidence in my sincerity,
my thanks.
For the skeptics who felt I was a “front runner” and would disappear… well…here I am.
Anyway…I am sort of adrift,”out of the flow”, as I have not been closely attending to or following my investments.
I will get back into it as I go along and speak up when I develop opinions.
If you study the long term trajectory for the companies that have turned out “GREAT” today – Microsoft, Apple and the ilk they all share long spells of little price movement, occasional surges and occasional drops. It’s hard to imagine any investor buying in on day one and holding until today. Conviction is always sorely tested.
Clean TQ has lots of interesting attributes. It could be that it is great company in formation. Those of us who have bought into the vision need continued reason to believe that we are just in one of those perplexing and disappointing periods.
I think it boils down to the integrity of Mr. Friedland and his management team. As I remember, the last private placement was at $.80. That was theoretically for “friends and family”. Despite aversion to “averaging down” the current share price under $.40 presents a tempting scenario for a “True Believer”.
So HN – please restart the news and information cycle. It would be nice to see the price inch up a little just to give us encouragement that we’re not owners of dead money for the next several years.
Thanks for your research and enthusiasm. Here’s hoping that Clean TQ is truly a great company in formation.
HN, great to see your posts again. A few years back, I think I took a similar (online) pilgrimage – although I doubt mine was to the level of yours!.
I think there may have been 1, possibly 2 serious skeptics . But, it is always good to hear from them to help confirm/re-confirm the reason(s) we chose Clean Teq in the first place, and evaluate anything that may have changed since then. As the price dropped more recently, I kept Renby’s .35-.37 price target in mind, hoping to be in a position to take advantage. When it did, I looked at adding to Ivanhoe, but decided to wait for more favorable political conditions. So, I added to my existing CleanTeq – in the range Renby spoke of. Thanks to you both!
I sort of view CleanTeq as an Octopus. While there currently may not be 8 different opportunities, there are likely more than just the water, nickle, cobalt, and scandium. Who knows what may be in the pipeline that can add to either the bottom line.
Deanbob, wishing you great returns, I think you did real well for waiting, then pouncing. I have a feeling the sector and the company is due for some kind of rebound the rest of this year, and you may have hit the “low”. I hope so.
CLQ water and mining valuations…recap from another site
I have a reputation with some readers as being an overenthusiastic
Clean Teq fanatic and Robert Friedland groupie who has been flim-flammed by CLQ propaganda, and whose judgment is corrupted by my absurdly large long position, which causes me daily distress and destroys my objectivity.
I suppose the accusations are understandable, even though they are not true.
But one troubling problem on which I want to start discussion is how and when Clean Teq stock can ever get fair value for the water division, and how on earth we ever might arrive at a fair valuation for it. This discussion is timely because it appear CLQ is about to get the ball rolling in the water division.
First off, many spec mining investors probably feel that the Aussie cobalt and nickel sector is already priced way below what it should be. This problem is not unique to Clean Teq Holdings. We can hear the same wailing from holders of other prospecting stocks…AUZ, PGM, ARL, EUC and so on.
At least in those companies we have some recognizeable metrics and numbers to go on…reserves, cost per ounce, market price history on the commodities, ways to estimate capex, cash flow, price/earnings, etcetera etcetera.
In these discussions on miners, at least we are on known ground statistically. We have data to discuss even though it is fuzzy, and we can argue and joust about with each other on what financials and valuations might look like based on past experience and expected variations in the real numbers when they materialize (if ever).
We even can estimate how long it will take to build a mine, or produce a feasibility study or drill off a deposit and assay the drilling.
***
But how the heck to we estimate income and revenue and profit for the water division ?
We have no idea what sales will be.
We have no idea of what the costs will be.
We have no idea of the size or number of the contracts.
We do not know how the contracts will be structured.
And even if we get a ballpark idea of revenue or sales or profit, how do we translate that to stock price valuation ?
Do we use the multiples of a miner, an industrial company, a tech company, or a utility ? How will the market value steady income with growth, backed in many cases by government bodies with taxing authority ?
***
We do not know very much.
But what do we know ?
We know the potential market is enormous and multi-faceted.
We see that CLQ has many key relationships and infrastructure requirements
and technologies in place.
We know that CLQ has many technical applications that will enable them to address an exceedingly large number of customers of all sizes.
We know that CLQ has a large variety of trial contracts in different sectors.
We know that CLQ is well-positioned for large infrastructure projects in China.
These are all large potentials that fire the imagination.
But how do we translate them to estimates of stock and company valuation ?
**
I am at a loss as to how to put a value on the water division.
I am sure I am not the only one.
And we all know how the investment markets feel about uncertainty…
THEY HATE IT.
And in the case of CLQ, the average investor is only vaguely aware of the mineral and mining potential of the company, let alone the water potential.
Hell, we can’t even get what we think fair value is for the cobalt, nickel and scandium, let alone the vanadium or graphene.
Currently the market cap of Clean Teq Holdings in S 500 million, give or take.
I think that the company valuation for the Sunrise project is roughly half of this, given the comps and status of the project compared to other spec miners.
This is admittedly a matter of opinion.
But for the sake of argument, we can take the cries of the mining competitors about Sunrise/CLQ’s “overvalued” status as a mining project, and put them to good use to arrive at a current value of the tech and water aspects of the company.
So just for a rough ballpark number, with ,market cap at $500 million, let’s say that Sunrise is $350 million of current valuation, and the water is $150 million.
Thus at 60 cents Australian, one might say that Sunrise is 42 cents and
the water is 18 cents.
One can vary the numbers to one’s taste. But I think both valuations are cheap, though of course opinions will vary.
There isn’t much of a basis for putting value on the water division, but if I had to pull a number out of thin air, i’d say anything over 30 million would be highly over-valued at this point in time. The facts as I see them are as follows:
1. Unlike the mineral/mining/chemistry aspect of their business, where there is in ground value, and we know revenues are pushed into the future, the water division is open for business, and has been for a number of years.
2. In those number of years, they have achieved exactly 4 projects. One in Africa, one in Oman, one in Australia, and one in China.
3. The first 3 were valued in the low single digit million dollar area, and when they said two million dollar value, or something like that, I’m assuming they mean revenue, not profit. So to justify lets say a 30 million value to the division, they are going to need many dozens of these types of projects. So far, its going super slow.
4. The China project, to me, is the only one that opens my eyes, because it is stated as a flagship project, and the hope is it serves as a precursor into the potentially lucrative Chinese market. I don’t recall they have ever placed a “value” on that contract. The disappointment for me on that project, is the contract was announced in June 2016, and they haven’t even started building it yet, and won’t until 2019 earliest. Yikes! This whole division is developing at a snails pace.
5. Two out of the other 3 projects also haven’t even started construction.
6. If I compare that to another company I hold, Cellcube Energy Storage, they are a vertically integrated Vanadium Redox battery company, with a vanadium mine, all kinds of subdivisions, a variety of products, also big potential in a fast growing sector, billion dollar aspirations within 5 years, have 130 installations worldwide. Their market cap is under 30 million [at least they were until they exploded 50% in just the last 2 trading days, I guess its up a bit from that now].
Putting a value of the clean teq water division at 150 mil, and thinking it is under-valued at that level, that seems like a super stretch for me. Even 30 mil I think is a bit of a stretch at this point. Certainly there is potential, but if the water division was a stock by itself, it would probably have to be valued under 10-12 mil for me to have an interest in buying it, just banking on the potential of it. There is no guarantee it will ever produce revenues in the tens of millions, let alone profit, it is in a very competitive field, and their is absolutely no buzz surrounding their technology outside of the company. But it could be huge. I’d have more confidence in it if things were moving a lot faster, but so far, its been almost dead. That they are adding to their technology and capabilities I guess is a good sign, but it also kind of shows they are still in a development state for their products. The graphene component, from what I could gleam, isn’t ready for commercialization, they are still working out the bugs the way I analyze the language in the announcements. It could be a long time until they are ready for prime time, and there is risk that they never get there.
My disappointment in the performance of this division, along with some disappointment with their performance on the mining side, change in capex, and other fundamentals, is why this company went from first to last in my stable of holdings, but I’m still in it, and I certainly wouldn’t sell what I have at the present price.
My central thesis on CTEQF is still the same, that a cobalt and nickel sulphate factory is an excellent investment for the future, and that scandium is also a sure thing for the future as well. Water is a secondary potential upside, but as I explained above, of negligible present value relative to present market cap. Presently I see US35-40 cents as a buy range, 40-65 cents as a hold range, and depending on how things are looking at the time, over 65-70 cents as a potential sell. I sold 80% of my shares at 69-70 cents the second I laid eyes on the DFS, as I figured correctly the elevator was going down, and I had too much money in there to ride that. My basis was 62 cents, so I locked in that 12% profit, but the 20% that I still hold has eaten that, so I am presently at almost exactly break even. But long term holders with over a 5 year horizon could just put the shares in the bottom drawer, and ignore the ups and downs. I’m no day trader, but having the right thesis is only 1/3 of the game, buy price and sell price is the other 2/3. I am not inclined to add to my holdings, even at the low levels it is now, because I find valuation is still too high relative to other nickel/cobalt stocks, which I feel have more room to grow faster as the sector rebounds. If those valuations even out, I could reconsider.
I am soooo with Renbycage on this. Not trying to be rude coz I really admire the research time you have put in here HN, but you have a habit of valuing ‘the potential’ rather than the actual. I dont think that’s the way analysts/institutions work, and I DO think its them that sets the SP. They have seen the DFS and valued the cobalt/nickel in the ground. They have seen the present market for scandium and written it off as a rounding error. And if they’ve even bothered to put a value on the water at all, they multiplied the likely income from maybe 10 machines, minus the development costs and concluded zippo! Of course this could all change in the blink of an eye if some big water/scandium order happens…..and the sp will change in the blink of an eye too. So if theres any point to guessing the value of its ‘potential’ its because your crystal ball’s reccoing a VERY long term bet. Meanwhile the price has gone from >$ to 35cents…then there’s the unspecified Chinese deal….then theres the cost of financing the mine. Its gonna take some very big news before investors holding at that top price to even break even (read me 🙁 ).
As for water, I firmly believe RF is keeping this within CLQ to fund and shelter its development. IF (and thats a BIG IF) it ever looks like it’ll be profitable, he will hive it off as a separate company, giving CLQ investors a few shekels for their bother.
Scandium is somewhat different. Digging up the cobal/nickel almost accidentally produces the scandium. But with such a small market for it at present, the best RF can do is dump it in a spare corner and wait/hope to cash it in if the market ever develops.
Sorry HN, but in the short term at least, I prefer Renbys ‘metal in the ground’ valuation to any long term ‘potential’ valuation. That could be a very very long way off and I already have a white beard.
In some ways Mining investment is very much like bio….it starts high, then wanders down for months/years, enjoys a decent bounce at each successful trial/survey stage (or gets slaughtered)….then falls back as people take profit, until finally the FDA gives approval/sales and revenue start. But each step its a binary bet with many a slip twxt cup and lip. At least with mining, the surveys indicate that theres actually something down there.
Sounds like you are holding.
Why else the sa face above?
Sorry, don’t understand. What is an sa face?
If you are holding, when would you sell or buy more?
What is an sa face? Don’t know what that means.
If you are holding, when would you sell or buy more?
sa face = Sad face 🙁 Sorry for the typo but Guests dont have the option of editing their posts after sending.
As for buying/selling…. these days I wouldn’t buy more of any stock until its tangible value (or less) was realistically reflected in the SP. Nuts to paying for ‘potential’. Ive lost far too much money buying ‘the dream’. Renbys call was spot on using this method. I’ll pay a lot more attention to what he has to say in future.
As for sell…..5 mins before the price crashes 🙂
That is so much a downrampers post. The facts are the dfs valued the company net of construction and operating costs at 1.4billion or $1.77US a share. 5 analysts currently have an average valuation of 1.71 with a spread from 2.03 to 1.40. The facts are these things never start reflecting their true value until financing is completed. For the record Peter Lynch of Fidelity Private Fund fame who has averaged 29.6% per annum return over 10 years said the “way to make money on stocks is not to be scared out of them” . Fidelity Private has purchased just under 60m shares in Clean Teq in the last year- so Sarah I prefer their preferences to your analysis.
No need to imply being a “downrampers post”.
Here we exchange ideas and share our personal decisions based on our own DD.
Comment would be better if you didn’t use those accusatory words, if you knew of the participants past contributions.
Downramper? LOL. Don’t think I’ve ever that term used on these boards, mostly sophisticated investors here.
Chill out Blackeyed. I dont say CLQ wont be a winner….dammit I own enough share certificates to wallpaper a fair sized 3 bedroomed apartment!
I was asked when I would buy/sell. I replied, I’d only buy ANY stock in future based on the known value rather than its ‘potential’. If (CLQ’s) potential is ever actually realised, I dont doubt that the sp will reflect it. But meanwhile, its better to buy at the actual value when you can. As for your ‘experts’….renby called it at 35cents and it hit 40, I’d assume there were scaredy cats out there in the ether willing to take 35 in their panic. I dont need a better ‘expert’ than someone who can call it to the penny and give valid reasons for that call.
As for selling….Im sure we can agree on ‘5 mins before a crash’.
Welcome blackeyed,
most of the posters here do not seem to engage in the “ramping” activity that is such a worry on Australian boards.
For the most part, the participants have shown themselves to be straight shooters…we all make mistakes but generally the motives of the regular contributors have been verified by their consistent posting history.
It’s a lot different on this board, we have a small number of contributors who are constructive and sincere.
Ocasionally someone unruly shows up, but the rules here are that the thread author has some editorial authority and can blaock or censor,
subject to the over-all authority of the site owner.
Hi Sarah,
No offense taken, and you are right that I value and consider potential in speculations…because our profit potential arises when we see potential in a company that is not recognized by most investors, and then at some point in the future, other investors come to our point of view.
In mining speculations this is especially the case.
The percentages of spec miners that become big hits is very small; our objective to to have a better “hit” percentage than average, by doing better analysis
than the average investor or analyst.
HM. I absolutely agree that potential must be considered as part of deciding whether to invest at all. No potential, no likelihood of serious price improvement. But I think it’s a mistake to enter at much more than proven ‘proven value in the ground’ prices. That’s where the pro’s get in and that seems to be the bottom the stock mostly hits at some point. My (our?) mistake was to pay for the potential so enter when the sp was far too high. Never mind, I still believe CLQ will repay us handsomely, but it will take longer and profit us less than if we’d bought at 45.
The time frame has moved for sure.
The thing that is frustrating is that the professionals in the acrtual business, the owners, the people in manufacturing, metals, and financing, are all bullish…it is “just” the opinion of the people trading the security that are not believing in the value.
These opinions do not change on our timetable, nor do nickel and cobalt prices.
Market says Clean Teq is the only one that will make it (for good reason).
Interesting article circ’ed by Cleanteq IR: https://mailchi.mp/cleanteq/reuters-london-metals-exchange-moves-to-ban-tainted-cobalt?e=7bb707fe49
While exploiting child labour is certainly despicable, I have to wonder whether this is just a moral crusade or whether its more a retaliatory political move. As you should know, DRC has imposed huge extra taxes/surcharges on its cobalt. Consequently it will (has?) impacted several Western nation miners’ ability to operate/invest profitably in the country…..and theyre pretty miffed. Meanwhile China, who is also heavily invested, hasnt raised a word of objection as far as anyone can tell….why their silence? Could it be that the Western world is retaliating by strangling the DRC’s ability to sell its cobalt, effectively saying ‘if you dont sell it to us at a reasonable price, you aint gonna sell it.’ Even if China buys it all, we will see to it that their cars/batteries cant be sold in the West. My bet is that several mines will soon be mothballed, the Chinese will lowball the ‘tainted cobalt’ price as there’s no other buyer and the DRC will eventually clean up their act and ‘think again’ about these taxes. They have a civil war on their hands and a lot of expensive generals to bribe, so they need the heck of a lot of money to buy arms….or swap with China for arms.
Rock and hard place methinks.
Meanwhile, CLQ will be flavour of the month and the cost of clean cobalt could rocket.
$CLQ lp
Money will always win, and as long as someone is making as much as they can by doing something, even exploited somethings under cover of a Happy Face, it will happen.
That was one of my concerns with Cobalt 21….where did it come from ?
AS for being the flavor of the month, I still think that it is way too early for that to happen, as people still see that photo (in the above mentioned link) as the current reality of CLQ…..A truck with people standing around in a field and not a hole anywhere. They can’t see what is actually happening via a tangible “thing” yet.
AS for WATER, I’ve mentioned before that I think it needs to be Spun off and not have anything to do with Sunrise. It adds to the confusion of what it has to do with Sunrise, and it’s high cost of construction.
Yes, I sold half of my stock at a 48% loss. I am holding on buying anything these days because I feel uncomfortable with every market in the world. I got rid of many small “toe dips” and consolidated monies for Dry Powder. I’ll be getting more CLQ, just a matter of when.
Oh! My $LGORF lp is up 134% since 5/31 ! $Vale SA lp up 18% from 6/22
I’m still sticking with $ARRRF lp $MGX lp for my future Battery Metals.
$NIOBF – NioCorp and Traxys North America Agree to Commercial Sales Contract for up to 120 Tonnes of Scandium Over 10 Years
https://mailchi.mp/niocorp/niocorp-and-traxys-north-america-agree-to-commercial-sales-contract-for-up-to-120-tonnes-of-scandium-over-10-years?e=d2703cb985
I’ve watching this company for a while because of Niobium hadn’t thought about their Scandium.
$CLQ/CTEQF long
$CLQ – Thanks. This is positive info re CLQ in that it was anticipated that it would take many years before the majority of CLQ’s scandium stockpile could be monitized. The increased secure availability allows manufacturers to risk changing their manufacturing process.
CLQ too long
I checked out the Niocorp deal, it is with Thyssen-Krupp.
Second deal, so Niocorp has 2 offtakes.
Both off takes could be just middle men selling product. Taking a piece of NB $. SRI has been rocking as of late …thanks nuzzles.
$CTEQF, AEE ARL AUZ CLQ EUC PIL FZO COB PGM WHK > The rout continues this a.m. in Oz: https://www.asx.com.au/asx/markets/priceLookup.do?by=asxCodes&asxCodes=AEE%20ARL%20AUZ%20CLQ%20EUC%20PIL%20FZO%20COB%20PGM%20WHK #Best2U!
“The rout continues this a.m. in Oz”
Gee thanks, Ben. Just the sort of discouraging news to go to bed on, sigh.
Still long $CTEQF (and others)
Penny
(staying up to get repaired computer back up to speed)
(Thanks everyone for the interesting discussion/analysis/proffering of investment theses over the past few weeks.)
Idle question: why am I logged in but being labelled as a Member and not as an Irregular?
Hi Penny That’s happened to me a few times, I just x’d out and started over and it seems to fix things.
I suspect this is connected to our recent hardware swap-out, which caused a few login problems for some readers. It should be fixed now, though cached files might still interfere with logins (clearing the cache/temporary internet files might fix that, though the few remaining problems caused by out-of-date versions of the site floating around in your browser will also likely go away on its own as time passes).
Hi Travis.
Recently I have spent a lot of time on reddit and other web sites. I experienced first-hand the suppression of free speech and political dissent, which I do not accuse you of, because you are up-front and visible.
I consider you to be in your rights to make this judgment, though in my case it caused me to spend less time on SG and more on other sites because political events dominated my interest during that time.
IMO, the situation on SG is different, and your restrictions are much less offensive than censorship on major public forums. Further you have permitted
an outlet that somewhat relieves the problem by allowing the Politics thread.
I found your allowance of thread authors to have an impact on editing content to be a very good solution, which should be adopted more widely, on forums presenting themselves as public.
I suggest that you permit expansion of discussion to more controversial topics with that policy. Thread posts need to conform to your overall guidelines…but thread censorship and moderation should be by individuals who are identified as the author of the thread, thus they open about their bias and position on the subject.
Freedom, liberty and justice 4 Stockgumshoe.com, Gummunity & all! Tres Agreeable & extremely well communicated, Sir! 🙂
You can delete this post after you have read it, it is not in the right place.
HN
As much as I love your work, I am not in favor of expanding topics on SG.
IMHO, SG should be about companies and stock hype ads. If I want political or other discourse/info, like you, I go to other sites that have that discourse as their mission and deal with those knuckleheads we encounter.
Obviously Travis can speak for himself but he needs to hear many voices on this issue.
I’ve gotta agree with ya hedy!
Maybe someone should start a blog dealing with Politics. Are there any out there?
Gummies, plz remember, any thread that is okayed by Travis, is a go…….no one is entitled to say ‘No’ but they are entitled NOT to subscribe to the thread. That is our prerogative as subscribers. I love the religion and other unmentionables and I am grateful for it.
Lulu- spot on. The key is that these discussions be located on the political thread not just anywhere.
Edski: There’s already a well established Politics thread….I started it ~4-5years ago to get the topic off the Bio threads. Amusingly it became one of the most frequented threads on SG and is now in its 9th+ edition. Unexpected consequences eh !
Heh…I was being facetious.
I love the thought that there may be even ONE place to go to without any political drama.
And I thank you VERY MUCH for your creating that sight, as it has helped keep things focused here.
“”I found your allowance of thread authors to have an impact on editing content to be a very good solution, which should be adopted more widely, on forums presenting themselves as public””
.In other words, you would like a forum where you can express your views, but edit out responses that don’t fit your narrative, while being free of any third party neutral interference. You are against suppression of free speech, except for free speech that you don’t agree with or like.
It may seem that way but it is not so, because here a dissenter is free to start another thread.
If someone doesn’t like CLQ or has a negative opinion on some other stock, Travis will allow them to start another thread.
The issue, and it is a difficult one, is that you get people with bad intent or who are disruptive, and the “neutral third parties” are really not neutral, and they are anonymous in addition.
On reddit, entire threads are censored, entire subjects are
forbidden, and no one knows who made the decision or why.
The neutral third parties on the public platforms are not neutral,
and hide their bias, and they are anonymous.
$CTEQF, AEE ARL AUZ CLQ EUC PIL FZO COB PGM WHK > Mostly flat, Penny,
this a.m. in Oz: https://www.asx.com.au/asx/markets/priceLookup.do?by=asxCodes&asxCodes=AEE%20ARL%20AUZ%20CLQ%20EUC%20PIL%20FZO%20COB%20PGM%20WHK There’s $ to be made either way. 🙂 #Best2U! 🙂
Thanks, Ben.
Did you see this SA article on $CTEQF?:
https://seekingalpha.com/article/4211180-clean-teqs-financing-telling
Penny
Long $CTEQF (and others).
Penny
Just saying….
Aug 20, 2018, 09:23am
Does Seeking Alpha Enable Anonymous Authors To Spread Fake News?
https://www.forbes.com/sites/richardlevick/2018/08/20/does-seeking-alpha-enable-anonymous-authors-to-spread-fake-news/
Hi secretsquirrel – good article. I’m sure it’s true for some of the contributors there.
Reading the comments following an SA article is quite instructive (just like on Stock Gumshoe, I guess.)
I have seen SA articles based on posts written on Stock Gumshoe. One guy nearly plagiarized me, had to laugh about it.
Unfortunately we have to think for ourselves
and read carefully.
Penny
The whole Alpha analysis is built on a house of cards. Three points
firstly you cannot value Cleanteq on todays cobalt and nickel prices but on prices when they first come into production in 2020. All analysts have rising prices for cobalt in 2020/21 and nickel much earlier than that. Clean teq’s price assumptions are at the mid point of analysts 2020 range
2 You cannot value the cost of an equity dilution by simply taking todays share price and assuming there will be a placement. Clean teq has consistently stated any equity will be based not on the share price but on the NPV of 1.4billion and it will not be a general placement but an equity partner and there could very well be a premium attached because of Scandium etc which reduces the dilution.
My sums suggest an earnings per share basis after dilution of 400m of 15cents to 25cents AUD with a 12 multiplier valuing the stock at between 1.80 AUD and $3.00 AUD
The consensus price target for five analysts for 2019 is $1.61 AUD
Funny it came out on the day of the 830 point pullback
Thanks for your comments, Blackeyed. I was hoping to get someone to give their analysis. We need responses like yours on this forum.
Are you long $CTEQF? I’m hanging in there.
Penny
Yes I have 100000 shares in Australia and I’m down a lot but I keep doing the analysis and I’ve kept my conviction
It can be hard. I just keep looking at the news releases and looking for reasons that poke a hole in the thesis.
Other than the low price, I can’t find very much not to like.
Blackeyed, I see you are active in A2M, is it something you could tell us about, if you believe in it ?
hendrix
I believe it will literally be the Coca Cola of Milk.
A2m infant formula is now outselling Wyeth (nestles) which is the fourth largest seller by market share in China.
The Chinese infant formula market is worth 25billion p.a. and is growing at the rate of 15% per annum because of the growth of the Chinese middle class and the removal of the one child policy. Revenue from infant formula sales last year was 725m and production has been substantially expanded.
A2 is based on milk which only comes from cows with the only the a2 gene (ordinary milk has both the a1 and a2 gene in it) Ordinary milk causes intolerance in some people because the A1 gene is implicated in bowel inflammation. Many people think they are lactose intolerant when they are a1 gene intolerant.
Consequently a2 is expanding the size of the dairy market by bringing up to 30% of the Chinese who have been dairy intolerant an 12% of us consumer back to milk and away from milk substitutes. Its a “dairy disruptor” and is changing the dairy market. Scientific studies have proven the relationship between the A1 gene and milk consumption problems.
There are many testimonials on the US, Australian, and UK a2 websites and a2 is providing milk in the US 7000 stores, Australia 33% market share now the largest of all milk producers, the U.K., Singapore, Hong Kong New Zealand Vietnam and Korea.
Revenue grew at 76% and profit at over 100% in the last year and my view is this year revenue will exceed 1.5billion and profit 70cents a share which for a stock growing as fast as a2 makes the current price very cheap. I am in it for the long term.
I believe they have an incredible “moat” on infant formula and milk because it takes five years for herds to be segregated and volume production to match A2 to occur. It therefore has incredible first mover advantage. It has Chinese government regulatory approval and the IF product is uniquely attractive to Chinese consumers because it comes from PURE NZ pure waters, pastures, and cows, which is hugely attractive to the Chinese consumer because of their polluted environment and also the a2 gene.
Nestles and Danone cannot compete with the purity and made in NZ image for Chinese consumers. I believe a2 will eventually capture over 10% of the Chinese infant formula market which is 2.5billion. It is now in 12,000 stores in China and has a rapidly growing market share which sits at 5.6%
It has no debt and had net profits of 195m with margins of 30% on IF on revenues of 925m
Blackeyed very informative post. I was invested in Jat Asx from the beginning but sold due to credibility issues.
I believe that they also hold a patent on GeneTesting for cows to prove purity of a2 milk of the cows line.
Their stock is pure bred a2. I am not sure if there is potential money being made from holding that patent, unless they offer it’s use for a fee or do the testing themselves on other peoples stock.
Do you know Blackeyed?
Thanks Blackeyed…I’m on the lookout for food/consumeables, maybe you could start a thread on A2M here on SG
$FLC.ASX lp
Fluence signs water agreement in China.
https://www.asx.com.au/asxpdf/20181012/pdf/43z6g0w2qgf4vv.pdf
All: Got this in the post yesterday. I really think everyone that invests in mining/metals should listen to this broadcast (especially HN). Its about the scams/fake news which any novice investor (anyone with less than 10yrs experience) can get sucked into. Scary.
https://www.youtube.com/watch?v=iovp5nDy5yk
Good interview with Warren Irwin on that YouTube video, Sarah.
Irwin makes many good points, but doesn’t mention the importance of an organization using reputable people to do the PEAs or PFSs.
1) I just have to put in a plug for hiring QPs (Qualified Persons) qualified through recognized professional organizations, since my spouse is a QP for reporting to authorities in Canada, the US and Australia, and he takes his QP credentials seriously. Proper sampling techniques and chain-of-custody of mineral samples are important, and yes, he knows about nuggety gold. We can thank the fallout from the Bre-X scandal for bringing him much mineral reporting consulting work!
2) See this useful discussion on PEAs/PFSs:
https://www.osler.com/en/resources/regulations/2012/mining-review-september-2012/preliminary-economic-assessments-for-mining-projects.
3) This article talks about the ins and outs of NI 43-101 Technical Reports:
https://www.micon-international.com/ni-43-101-technical-reports-theyre-not/
We always say that the naive investor know how to multiply, but not how to subtract. Gold price times the no. of ounces of gold they’re led to believe is there – eye-popping numbers! Then: (Realistic) revenue less real cost of producing that gold – sobering numbers. And the crooks love to use optimistic projected gold prices.
Penny
Hi Sarah,
Well aware of Bre-X and also of the importance of the integrity and track record of the management. Their fraud was good enough that Eric Sprott got burned.
As far as CLQ is concerned, I am not worried about this aspect of the company. In my opinion, There is no reason for Friedland to commit fraud with respect to this company…CLQ is too small , and no conceivable fraud on account of CLQ would be of interest to Friedland.
I am sensitive to this potential in the miners. Some of the companies we have looked at, I have ruled out on account of my fears on this issue. Without accusing them of anything, I would say that this type of concern worried me with AUZ and GGI. Not necessarily fraud, but a strong bias in what and how they composed their releases and dealt with the public.
The closest I have come is with PVG. Some months after they opened, the ore grade was proven to be substantially below all studies.
The nature of the ore composition gave enough doubt that the studies can be written off to chance or bad luck, rather than deliberate fraud.
And there was a contrary opinion beforehand. The truth came in better than the pessimists, and worse than the optimists.
I found this excellent interview on Battery Metals and Megafactories posted by Vector on Hot Copper’s Ardea thread.
Here’s the link if you wish to save it and read later.
https://www.cobalt27.com/blog/index.php?content_id=185
Cobalt 27 Q&A with Simon Moores, Managing Director, Benchmark Mineral Intelligence
Battery megafactories have become a buzzword in recent years. What are these factories and why do they have the battery metals industry so excited?
Battery Megafactories was a term Benchmark Mineral Intelligence created back in 2014 to describe any lithium ion battery plant over 1GWh in capacity.
Four years ago, the lithium ion battery industry was a completely different landscape. The industry was highly fragmented with very small battery plants geared to serving the mobile phone, laptop and power tool markets.
That was until Elon Musk and Tesla came along. In the early 2010’s, they introduced the Gigafactory plan to create the world’s biggest lithium ion battery cell manufacturing facility and EV manufacturing hub under one roof.
The plant, at 35GWh capacity, was equal to size of the entire industry.
Currently, the Tesla Gigafactory is at 20GWh of capacity and will produce at least 15GWh of cells in 2018. It will ramp to full capacity by Q1 2019 and produce at least 28GWh of cells in 2019 – an incredible achievement that is two years ahead of schedule.
The crazy thing is that all of these batteries are being consumed in the Model 3 – Tesla never foresaw this.
In fact, if Tesla hadn’t encountered its well-publicised engineering problems in early 2018, the company would have run out of lithium ion batteries.
What Tesla started with its Gigafactory is far more important than the company’s own achievements: it sparked a global race for electric vehicle battery cells that is still in full swing.
In Q1 2015, we had three battery megafactories in the pipeline according to Benchmark Mineral Intelligence’s Battery Megafactories Tracker – we were the only company at the time tracking these super battery plants.
Today we are at 50 megafactories worldwide and have surpassed 1TWh of capacity in the pipeline.
This is an incredible situation that is having a profound impact on the key battery raw materials of lithium, cobalt, graphite anode and nickel.
It has ushered in a new era for 21st century commodities.
How many factories exist today and how many can we expect to see over the next decade?
Right now, as I mentioned, we are at 50 megafactories.
Over half of this new capacity is located in China, with Europe emerging as the second most popular jurisdiction in recent years as Germany’s Auto OEMs seek cell supply security.
The US has been Gigafactory dependent but we expect to see more serious moves from the Korean battery majors in North America. This is especially true of LG Chem, which operates a plant in Holland, Michigan and SK Innovation that has aspirations of building a plant there.
2018 has seen a record number of plants being announced with Benchmark Minerals’ latest data standing at 24 plants end-September. This could easily surpass 30 by the end of the year and we do not expect this battery arms race to slow down anytime soon.
If the world continues pushing towards an infrastructure for tens of millions of pure EVs, together with energy storage capacity, we will need far in excess of 100 of these plants operating around the world.
Why are we seeing the emergence of the megafactories and which companies are building them?
The race to build the supply chain for electric vehicles is undoubtedly the reason behind the megafactory rush.
Battery companies have traditionally been very conservative. However, they now have enough confidence in the direction of the Auto industry that they are building battery plants in huge numbers and at scale.
Previously, anything the size of 3GWh of capacity was deemed as a significant investment.
Now we are orders of magnitudes bigger as Korean and Chinese majors push for battery plants and/or cumulative battery capacity in excess of 30GWh – close to Tesla Gigafactory size.
It’s important here to revisit my earlier point – in the early 2010s, the entire lithium ion battery industry in total was at the level of what is now a single megafactory plant’s capacity today.
And the industry thought Elon Musk was mad… now they are all following the blueprint he and Tesla have set.
The battery companies to watch are the Korea majors of LG Chem, Samsung SDI and SK Innovation, together with the Chinese battery champions of CATL and BYD.
Where is the demand growth for batteries coming from?
Pure electric vehicles are driving this trend – these are 100% battery powered vehicles with packs in excess of 50kWh in size.
Previously commentators discussed hybrids and plug-ins taking market share and impacting the supply chain.
Personally, I have never believed that hybrids and plug-ins – which represent inferior halfway-house technology – were going to beat pure EVs once they really made it onto the market.
Sure enough, we are now seeing the dawn of pure EVs where consumers have a choice at more reasonable price points. 2018 has seen the rise of Tesla’s Model 3 together with Chevrolet’s Bolt and Nissan’s new LEAF.
As I say, this is just the dawn. In the next four years a whole host of new, pure EVs from leading brands like VW, BMW, Mercedes, and Audi will reshape landscape and we will see serious choice and serious competition at even more competitive prices.
This period, between 2021 and 2023, will be an intense time for the supply chain and raw material suppliers.
The second biggest area of demand, which is just kicking off, is energy storage or ESS.
Only two years ago this market was 1GWh in size for lithium ion. In 2018, this will be four times bigger at 4GWh in size.
The crazy thing about the ESS market, is that these stationary storage projects – which can store power off-grid and recall it at the time of need – can now be upwards of 1GWh in size per project.
The second most important thing is that the utilities industry now has confidence that lithium ion technology functions at scale – primarily thanks to the success of Aliso Canyon project in California and Tesla’s Hornsdale project in South Australia.
This means more and more companies are requesting lithium ion-based systems at scales of 500MWh, 1GWh and above.
To boot, they are being installed quicker than ever.
If we think EVs will have a big impact in the supply chain for battery raw materials, just wait until this market really gets going post-2021.
Is this growth sustainable? Will it increase further in the next ten years?
Yes. This shift energy storage both in electric vehicles and in ESS is a megatrend that will define the next 100 years.
We cannot underestimate the power that high quality, abundant lithium ion batteries in these markets can hold outside of the immediate benefits of owning an EV or being able to store and sell power back to the grid.
The wider implications are game changing for the way we live out lives.
This could bring sustainable, renewable power to some of the poorest countries in the world and eventually bring about 100% pollution-free cities.
The technology is now proven and lithium ion batteries are getting better and cheaper. The innovation at the pack levels is making these cells even more effective.
Confidence in the final end product – whether it’s an EV or a energy storage system – is gaining serious momentum.
The only thing that remains is for the supply to be there and for the supply chain to scale. The demand side of the equation is no longer a debate.
How much extra battery metal supply will be required to feed the megafactories?
We are building a supply chain an order of magnitude bigger than what has been seen before.
Whereas a major battery producer used to purchase say 3,000 tonnes of lithium hydroxide a year, today they are seeking 30,000 tonnes a year all in the space of three years. A quite incredible shift.
Benchmark Minerals’ Battery Megafactory Tracker now stands at 1.1TWh of lithium ion cell capacity by 2028. This is for plants that are already being planned, there are still many more to be announced in due course.
However, based on the 1.1TWh of cell capacity, we will need:
882,000 tonnes of lithium hydroxide
218,000 tonnes of cobalt
1.3m tonnes of graphite anode
513,000 tonnes of nickel
These numbers include all cathode types and take into account our own assumptions of the move to 811 chemistry which we believe will be much slower than many are expecting primarily down to cost and safety issues.
Which metals will see the most supply pressure as a result of megafactory production?
As we stand today, lithium hydroxide will see the most pressure together with battery grade nickel chemicals.
We expect a cobalt squeeze post-2023 as these megafactories ramp up, however, it is our opinion that cobalt will never be engineered out of a lithium ion battery.
When predicting where the supply squeezes will come from, you have to consider every step in the supply chain and not just mined supply.
To make it into a lithium ion battery, these minerals and metals have to go through an extensive physical and chemical process. They have to be physically and chemically engineered at a nano scale – and in a consistent manner – to be accepted by a battery producer.
This is why scaling battery grade material is always going to be a tougher ask than building new mine capacity and an oversupply of mined material does not equal an over supply of battery grade material.
For an investor’s perspective, what are the most important points to bear in mind when considering the effect of megafactories on their battery metal portfolio?
The first is to work out what capacity is really being build and what is just announced.
The second step is to work out what cell chemistry the battery producer has chosen.
If its NCA, for example, the cobalt content will be much lower, yet if its an NCM chemistry you will need to ask what ratios of raw materials the producer is using. Is it 523 or 611? Has the battery producer invested in a low humid production facility to make 811? If so at what scale?
The third step is to really understand what partnerships and long term the cell producers have with auto OEMs – a strong supply chain based on strong relationships from mine to EV is the key to success in this market.
This analysis is something we offer in our Lithium ion Battery Megafactories Assessment subscription at Benchmark Minerals.
So what investment do you see here in the lithium ion area? This is an amazing article, thanks eager beaver!
$CTEQF..$CLQ…added to my position at 34.5 cents US.
HN if you still loved it at 34.5 are you still loving it at .26 ? seems to be no end in site of this stock bottoming! this has truly been a huge disappointment! Your DD was great but market seems to think otherwise..
Ha ha, at myself. Still have some more cash for under 30 cents.
$MGX lp
MGX Minerals Announces Arrival of First Rapid Lithium
Extraction Oil & Gas Wastewater Treatment System
https://webfiles.thecse.com/PR-10-18-2018.pdf?bCkY1Ff_.Fb78FT0CknnqctESsTGUl.c
Thanks, edski. Long MGX.
$CLQ…they are now in the manufacturing of graphene membranes
besides putting them into their water filtration projects
http://www.ionicindustries.com.au/clean-teq-ionic-to-form-water-jv/
The JV with Ionic Industries says that CLQ has worked out the manufacturing. So the technology will be leveraged into more than just the CLQ water projects. CLQ and Ionic Industries are now graphene producers.
Hey…great news HN! And doing it at a commercial level as well. Didn’t see that coming, as I don’t recall Ionic working on graphene at that scale.
Hopefully you’ll see that investment of yours in Ionic start to boogie.
HN good to read your thoughts again, at one stage there I thought you were an honorary Aussie, posting relentlessly on the HC forum.
Euc Asx awaiting results of UG Co drilling at Dobsina, expect updates over the next 5/6 weeks, as lab results become available.
These results are well overdue, looking forward to seeing the grades.
Euc Asx announced very promising results this morning, though taken from a small survey.
There’ll be further announcements / newsflow over the next 5/6 weeks.
The UG results is what investors have been waiting for, so let’s hope the high grades continue at this early stage.
See details on their website: www. europeancobalt.com
DYODD
Hi Williamstown,
The latitude in politics made the HC site attractive, though for give-and-take I prefer it over here.
I went there to see if I could shake out some good perspective on CLQ…the engineering and mining side was the best different perspective. Dunnydame has a contact but for the most part there isn’t
much input on EPC in US websites.
Wasn’t looking for new tickers so much, I’m pretty committed now to what I own, and will wait for a hit or a persuasive negative to .
Still in EUC full position, also ARL.
Never pulled the trigger on AUZ, COB, or any other Aussie cobalt.
HN stay fully in it, as I think the next 14mths should hopefully be defining.
You’ve weathered the ups and downs, stay put.
Another you should look to having a small holding in is Fgr Asx graphene, just put it into the top drawer for 18 mths and see how it performs.
As always DYODD
Hi Billville.
I’m at the limit of what I am comfortable with in terms of capital in the mining sector, and will stay in the positions I have, until something pays off and can be liquidated.
Royal Nickel struck it lucky on gold…I was in it for nickel, so I may cash in on it.
$FYI – Top 5 Cobalt Miners To Consider After The Recent Pullback
by Matt Bohlsen @sa – Includes: AEOMF, AMSLF, ARRRF, CBBHF, CBLLF, CMCLF, CTEQF, FTMDF, GLCNF, HLPCF, KATFF, NILSY, RNKLF
Summary
The cobalt sector is now full of good buying opportunities.
Cobalt demand set to surge in the next decade.
Top 5 cobalt miners to consider.
https://seekingalpha.com/article/4213128-top-5-cobalt-miners-consider-recent-pullback?isDirectRoadblock=true
$CTEQF $ARRRF long