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.
$CTEQF $CLQ Here is some Scandium Announcement Archaeology from March 2016, about a month after I posted the original Clean Teq thread in February 2016.
Seeds take a while to grow. We should see some fruit this year. These things take a while. Another orchard has been sown at Chinalco.
http://clients3.weblink.com.au/pdf/CLQ/01718890.pdf
hn comments please….?
http://www.spartonres.ca/news/press-release-march-6-2018/
Press Release – SPARTON RESOURCES
March 6, 2018
WORK PROGRAM APPROVED FOR YAO WAY
VANADIUM PROJECT, SHAANXI PROVINCE CHINA
TORONTO, ONTARIO March 6, 2018. Sparton Resources Inc. (TSXV.SRI) (“Sparton” or the “Company”) is pleased to announce that a work program has been approved for the advanced evaluation of the vanadium mineralization in the 16 square km. Yao Wan (“YW”) Polymetallic Exploration License, in the Zhen’an area of Shaanxi Province, China. See Sparton News Release dated January 2, 2018.
Yao Wan Vanadium Project
The Vanadium mineralization is strata bound and similar to other “stone coal” carbonaceous shale type vanadium deposits in China. These deposits are generally of higher grade and lower in impurities than other types of vanadium deposits such as those associated with magnetite iron ores.
Past work programs by Warwick Mining Development Company Ltd. (“WMD”), included surface and underground core drilling, surface trenching, and tunneling.
The license contains a, Chinese Category 332 and 333 vanadium pentoxide (V2O5) mineral inventory (see Cautionary Statement below) which may be considered under NI 43-101 as “Historical Estimates”. Six vanadium zones have been identified along an 11 kilometer strike length within a 9 square kilometer section of the YW License.
“Historical Estimates”
A total of 37,280,900 tonnes of vanadium mineralization in Chinese categories 332 and 333, grading an average of 0.85% V2O5 has been calculated for the six vanadium zones at YW. This equates to 316,096 tonnes of contained V2O5.
Of this total, 33% or 12,302,900 tonnes are classified as Chinese category 332 with an average grade of 0.82 % V2O5 containing 999,912 tonnes of V205. The remaining 24,973,000 tonnes are classified as Chinese category 333, grading an average of 0.86% V2O5, containing 216,284 tonnes of V2O5.
The vanadium horizon varies from 3 to 8.25 meters in thickness.
Work Program Approved
WMD, the owner of the YW License has approved the proposed work program submitted earlier by VStar Industries, the Company’s 90% owned subsidiary recently incorporated In the British Virgin Islands with a mandate to deal with the evaluation and development of vanadium related opportunities available to Sparton.
The initial part of the work program will include advance metallurgical testing of YW drill core for vanadium recovery tests. These will incorporate the technology patented by the Company in China for recovery of vanadium from stone coal mineralization similar to that at YW and will incorporate any new developments in this type of technology developed since the patents were granted in 2012-2013.
A detailed shallow drilling program of about 2000 meters is planned for the near surface vanadium mineralized zone with Historical Estimates provided by the WMD database, indicating 5,433,900 tonnes grading 1.02% V2O5 and containing 75,632 tonnes of V2O5. This work will permit conceptual open pit design and additional material for metallurgical testing.
Engineering studies will be done for process plant site location and conceptual underground mining as well. Initial environmental issues will be reviewed as results of these studies are assessed.
The full program is budgeted at approximately RMB 4.4 million or $850,000 CAD and is expected to begin in Q2 2018.
A. L. Barker M.A.Sc., P.Eng., P.Geol. the Company CEO, is the Qualified Person under NI 43-101 for the technical information in this news release. Mr. Barker has visited the YW area, reviewed all available data for the YW License, believes the “Historical Estimates” to be reliable, and has approved the contents of this news release.
For More Information Please Contact:
A. Lee Barker, M.A Sc., P. Eng., P. Geol. ,
President and CEO
Tel./Fax:647-344-7734 – Mobile:416-716-5762
Email: info@spartonres.ca
Website: http://www.spartonres.ca
Long $SRI
$SPNRF Sparton Resources…this is a very high risk speculation in vanadium and VRB that I cannot recommend for the faint of heart…not because of the geology or the target, but because the outcome depends on one person (Lee Barker)
and the legal and administrative disposition of the company’s key asset, which is an 18% equity position in Pu Neng that appears to be tucked away in the Cayman Islands, which is not a jurisdiction well known for corporate transparency.
I decided to take a chance on Sparton because the potential return is enormous and there are not many pure VRB or vanadium plays around. A couple, but not many.
The release cited is great but will be icing on the cake if it comes to fruition. The cake is the 18% equity in Pu Neng.
Squirrel, parsing the article you posted:
“Work Program Approved
WMD, the owner of the YW License has approved the proposed work program…by VStar Industries, [Sparton’s] 90% owned subsidiary…incorporated In the British Virgin Islands with a mandate [to evaluate and develop] vanadium related opportunities available to Sparton.
….These will incorporate the technology patented by the [Sparton] in China for recovery of vanadium from stone coal mineralization similar to that at YW and will incorporate any new developments in this type of technology developed since the patents were granted in 2012-2013.”
“Vstar”…holds 18% of Pu Neng. RF holds 82%.
“Technology patented by Sparton”…good to know. Barker had the patents and this implies those patents are in Sparton
“stone coal mineralization”…a clue on why RF was talking to Chinese coal companies
“will incorporate any new developments in this type of technology”…could refer to Sparton patents, but could also be a veiled reference to Clean Teq
There are guarantees on this one. Sparton and Clean Teq may be competing for vanadium projects.
Basically, as I see it, Barker has geology expertise, experience in China, and a fishing license. Hope he catches something big.
Long SPNRF
Whoops, bad typo. Meant to say,
“There are NO guarantees on this one.”
CLQ CLQ go go go go…..
3 new announcements, YES BOOM BOOM here we go…..!,
Will try to get back with more details!!
Long $CLQ nuts…..
Best to all holding in Faith and hn’s guidance….
SS.
A$150m underwritten placement to accelerate development of the Clean TeQ Sunrise Project
Yup here we go, we all new it was coming, did anyone seriously think that RF was sitting on a beach. Imagine he’s got enough on his plate with the DRC situation….
Looking forward to the dog’s interpretation on this!
$CTEQF $CLQ underwriting…the thrust of the thing is to accelerate actual production to the earliet possible moment. Basically it is a full-out acceleration to get into production as fast as possible.
See Bobby go. Bobby going fast. Go, Bobby, go.
The keep referring to a “Final Construction Decision” as though it will be made after the BFS. What a charade. The official guidance is that construction will take
2 years from the decision to be made after the BFS. That means mid-to-late 2021 for commissioning and production, officially.
Since I believe the decision is already made, the official guidance of two years from late 2018 for an FID means they have a six-month cushion to make the official guidance of mid-2021. So late 2020 or early 2021 is still in the cards, IMO. Of course this is the optimum; the timetable could slip; but at this moment, it is possible.
Lots of interesting angles to the announcement.
1. First, the public in Oz and NZ can sign up. And Pengxin can put in more and not get diluted. The upshot is that I think they could raise over the $150 million; for sure over $200; even $250 or $300, if they wanted to. I do not think they will want to. Better to finance more with debt. $200 mil is probably enough, do the rest with debt.
2. The raise should be looked at in comparison to the project cost. Last time they said $784 mil, including $100 mil contingency. Bottom line is that the money in the present placement was going to be needed anyway; I think the acceleration will have additional costs, but even a six-month earlier production schedule will more than cover.
3. The PP shows just how little problem RF will have raising money. He is picking and choosing how to divvy up debt load versus equity. As an investor I would have preferred debt, but I think the speed at which the PP can be done was decisive in this case, and I trust RF’s judgment. Look at the timetable for completion of the offering, which include public participation. Lightning fast.
4. There’s those autoclaves again. I jumped on this back in July and August…three year lead time. CLQ’s got them, the other guys do not. On Hot Copper, a qualified engineer opined that maybe going all-out a firm like SKI could compress the time to two years. Maybe he’s right. But in today’s announcement, CLQ devotes a lot of ink to the lead times on this equipment. So I say, two or three years until proven otherwise. SHOW ME THE AUTOCLAVES.
5. Nice timing compared to the competition. CLQ will make their announcement, remind everybody how far along they are, answer all the questions in advance, and tie it all up quickly with no muss, no fuss, and $150 million in their war chest.
What a company. Lots of announcements coming that will make everybody forget the dilution.
Full speed ahead.
CTEQF: My analysis of the announcement: Basically nothing much more than the company is moving as quickly as possible towards production. First year full production is still exactly where its always been: 2022. I’ve stated that multiple times over the last year, to be honest, often to counter HN’s over-optimism in this regard. They say they’ve cut the time “UP TO” one year from a project that is 6 months behind, so call it a wash. They needed to raise money because they re 6 months behind, therefore they need 6 months worth of money to get to when the full financing of the project sets in. It allows them to go shopping for some stuff now, instead of waiting til the end of the year. The penguins money [penxuing?] was supposed to get them there, but now its not. Anyway, I can live with the A 1.15 price, its basically 50% over what I paid for the company one year ago, so that locks in that progress. I liked it when the year ended at $1.18US, so not thrilled with the retrace, but progress is going fine, and this is a long freaking haul to 2022, so while this announcement isn’t anything to jump for joy, the story is playing out so far just like it is supposed to.
Renby…Overall I agree, it is to move as fast as possible. Would have preferred debt but a PP is faster and can be wrapped up in a hurry.
As you know, I consider speed to production very important in this situation, and right or wrong I tend to interpret developments in that context more than other people.
In passing, after two weeks of Trading Halt Drama with AUZ, I am back to where I was before the halt: I like ARL best after CLQ, and AUZ goes onto my watchlist.
Thinking about AUZ, they are in a really vulnerable position. SKI has out in nothing
but has locked up Sconi, and I think AUZ gave away more than they want to disclose. What really troubles me is that even the equity option for 19.9% is tied to future product discounts. In effect, AUZ may be paying SKI back the money for taking 19.9% of the company. Not good. Great deal for SKI.
The AUZ enthusiasts also are licking their chops over Flemington. Trouble is, SKI is probably licking their chops also; and any misstep by AUZ could enable SKI to move in on the company with ease. And they could care less about AUZ shareholders. AUZ could wind up in a very tough spot.
ARL is cheaper and better than AUZ IMO, a compelling combination. I’d say 3 times cheaper and 3 times better, FWIW. AUZ management seems funky, while ARL management seems outright lovely, so that settles it pretty much right there. But ARL has a deposit to die for, and it will get better with more upgrades. It also has a huge catalyst due in just weeks [PFS], while AUZ just spilt the best catalyst they’ll ever have all over the floor.
AUZ…I agree, the deal is very tilted towards SKI and benefits CLQ and ARL and the others more than the AUZ shareholders.
AUZ is going for broke, but putting themselves in a vulnerable position.
They still have to raise the money for the mine…something between $600 mil and $1 bil. And on a deadline, to boot. The crying of the AUZ holders will be intense when that happens, whether it is debt, or equity.
$CLQ.as – Why not put up links? shall edit in…
Equity Raising Presentation 43 pages 4.1MB 08/03/2018
https://www.asx.com.au/asxpdf/20180308/pdf/43s8gj49h7bzt3.pdf
9:02 AM $150m underwritten placement to accelerate Sunrise Project 8 pages 243.0KB https://www.asx.com.au/asxpdf/20180308/pdf/43s8fjj10kzjvn.pdf
08/03/2018 8:56 AM Trading Halt 2 pages 423.4KB https://www.asx.com.au/asxpdf/20180308/pdf/43s8f52tqlznvj.pdf
#Best2ALL!
Ben…good reminder. I see BenTU10K went off without crashing any computers.
CLQ Still not trading today. I estimate it is 3:45 in the afternoon.
$CLQ ow – Read the links…. possiby halted ’til the 12th: https://www.stockgumshoe.com/2018/01/microblog-scandium-cobalt-and-water-purification-clean-teq-holdingsvolume-2-2018/comment-page-3/#comment-4976394 #Best2YOU!
Could be quite a while longer. See details in the announcement.
Not sure about ASX rules.
Also I do not believe CTEQF is neessarily affected. Not sure.
$AUZ…if I posted what I really think about AUZ on Hot Copper, I would likely be assassinated by an Aussie hit squad and charged for manslaughter for causing the brains of Aussie investors to explode.
$CTEQF long – SO, is the announcement about a private placement the reason they halted the stock? Seems like the halt came after that announcement, but they said the reason for the halt was because of a funding announcement, so that fits with the prior announcement. I’m confused.
Yes it is an announcement that funds by issuance of more stock, which is placed via private and subscribed methods rather than a public issue.
$CTEQF OK, so in other words, we already got that announcement. So if we are not waiting for another announcement, I wonder why it is still not trading.
Do you expect this to have a positive effect on the stock? Hoping it will, but you never know.
Because the results of the subscription, and therefore the amount of new stock, will not be known until a future date.
What Happened When Hendrixnuzzles Looked at $AUZ
Facts only. below No opinions or conclusions are expressed.
AUZ was on my watchlist. I became very interested on Feb 16 on account of the trading halt and the SKI take-off.
BEFORE THE NEWS RELEASE ON SKI
1. Looked at website “Australian Mines”. They have no mines. Only development projects.
2. Website claims experience in mines by virtue of operating the Blair nickel mine.-The Blair mine is an inoperative nickel mine.
3. Despite having no mining operations, a feature photo is of an ore truck driving around is featured. Mining operations are implied, but there are none.
4. The feature photo on the site is of construction workers helmets. The first one shows the reflection of a jet plane. Both an active mine and some relevance to aerospace are implied. There are none that I can see, other than scandium in the ground.
5. Share issuance is in the billions of shares.
6. The leader is a geologist with no proven record in bringing mines to completion.
7. The leader has been in the company for over ten years.
8. A review of the press releases shows predominance of announcements concerning non-fundamental, share-oriented matters.
9. The website and the management repeatedly refer to Sconi as the leading
and most developed project of its type.
10. The website compares AUZ to CLQ reserve and market cap values without
informing or making any allowance of other reasons for CLQ valuation.
11. A review of the news releases showed that an accelerated hiring program was started in December.
12. An unexplained leak to an Australian paper occurred during the first trading halt. The information in it was incomplete but largely accurate.
THE SKI TAKEOFF AGREEMENT
1. The announcement was considered unsatisfactory for some reason and the company had to retract information.
2. The differences in the final approved release to the original unsatisfactory releases indicate that the fault was with the company management.
The original leak and releases referred to a value of $5 billion, whereas
the take-off agreement is not based on money, it is based on product quantities.
3. The final release revealed more information about the agreement. One of the
details revealed was that the option exercise by SKI is linked to future unspecified discounts on the take-off prices.
4. A presentation of “new partner” SKI appeared on the AUZ website on the Friday after the first halt. SKI is a “partner” only in a metaphorical sense. There was no JV
and there is no equity injected by SKI. There is only an option, to be exercised or not at SKI’s option.
5. Much discussion and controversy arose over the term “binding agreement”
with respect to the take-off. The fact is that the “binding agreement” is conditional upon fulfillment of rather specific and major accomplishments by AUZ…namely,
the timely finance and construction and production of the mine.
Such are the facts that I discovered. Draw your own conclusions.
$AUZ…The Grim Aftermath
The results of the last two weeks have been highly disappointing to AUZ partisans.
During the two-day period after the first halt, share prices were unable to reach new highs, and did not even close above the implied price of the SKI option.
Another trading halt and extension resulted in even worse results. As of this posting the price of AUZ shares has fallen even further.
I am not getting any enjoyment out of this,and my point is not to prove that I am right or wrong about anything. I have no position long or short in AUZ.
But the results show clearly that a large number of people had
a completely erroneous assessment of the situation.
We might ask ourselves, WHY ?
The main reasons, IMO:
1. Shares outstanding and overhang…AUZ has a few BILLION shares outstanding. Many people are in at very low prices, or are underwater. People who are in at a few cents may be very happy taking a profit at a dime or 12 cents, or getting out gracefully.
2. There is still a lot of project and finance risk.
3. The stock has wide following, is in a hot sector, and the tendency of management
contributes to public over-optimism.
4. SKI probably knows the company as well as any outsider can. Why, then, did they not commit to an equity position ? Granted, they might in the future. But they have not done so to the present. When and if they do, that is a pretty good reflection of an informed opinion as the the value of AUZ.
You and I can buy SKI near the price of the SKI option, today.
But we need to put up cash and take risk to do that. On the other hand,
SKI can sit and wait to buy, without putting up cash. Therefore the market value of AUZ should be somewhat below the implied value in the SKI option.
Results so far validate this interpretation.
5. IMO there is strong interest by SKI, but they are interested in one thing:
Metal in the ground held by AUZ. They do not care about AUZ shareholders.
If they can leverage a good deal on Flemington, they will do so.
AUZ has in effect taken Sconi off the market, and created a major obstacle for anyone other than SKI with respect to Flemington. This will, in my opinion, damage AUZ’s market cap since the possibility of getting full value for Flemington is damaged. They are captive to SKI.
Good deal for SKI, they got Sconi and they have a good shot at Flemington, and they paid ZERO. Not so great for AUZ holders.
Sorry another typo:
“You and I can buy AUZ near the price of the SKI option, today.
But we need to put up cash and take risk to do that. On the other hand,
SKI can sit and wait to buy, without putting up cash. Therefore the market value of AUZ should be somewhat below the implied value in the SKI option.”
$AUZ np
Sorry, but I just can’t see where you will reap earnings on AUZ with this deal. Everything produced will go to SKI, no? They have already committed to work for SKI, so where does that leave room for shareholders from this point on?
The Dramatic Future of $AUZ
There are likely to be dramatic and interesting developments on AUZ in the next year. As fascinating as they may be, and as potentially profitable as they might be for AUZ shareholders, at the present I do not intend to be financially involved.
I do not have conviction about any particular outcome for $AUZ. But there is enough risk in the situation that I am pretty sure the results will be, on the whole, somewhat disappointing for AUZ holders.
The AUZ loyalists look at Flemington, and think, “Oh boy ! We are gonna get rich!”
The SKI board looks at Flemington , and thinks: “Oh boy ! How can we get this deposit for the lowest possible price and risk ?”
I would not be surprised to see a long saga with AUZ holders continually frustrated by the inability of AUZ management to convert their considerable assets to shareholder value. If SKI exercises, there is a chance of a great outcome for AUZ holders; but this is not certain, IMO. SKI does not care about AUZ shareholders.
$CLQ financing…easy math
CLQ last forecast for Sunrise costs was about $800 mil, including $100 mil contingency.
So it looks like they want $300 mil in the current equity raise and $500 mil from the banks after the DFS/BFS.
Voila, Sunrise paid for.
If they need more they can take more debt because the BFS/DFS will
be a home run.
The numbers at this stage are inherently fuzzy but the nominal value of the cap raise may be exceeded by anti-dilution and oversubscription; and the project capex of $794 has $100 mil in contingency.
The MLA announcements said they wanted $500 mil or more from the banks.
So altogether it looks like they want to finance with 1/3 equity and 2/3 debt,
$700-900 mil capex.
$CLQ…they raised over $150 like lightning. The offering is already oversubscribed. It took one day.
Looks like we have a good shot at a stock price INCREASE after a dilution. People lined up to buy at a 6% discount.
Here’s the link to the successful completion of the A$150m underwritten placement
http://clients3.weblink.com.au/pdf/CLQ/01960157.pdf
and Clean Teq has now resumed trading on the ASX.
Long $CTEQF
$BKTPF > https://www.stockgumshoe.com/2016/07/microblog-storage-of-electricity-batteries-big-image/comment-page-9/#comment-4976535 😉
For anyone interested in vanadium.
News release section is excellent!
http://www.vanadiumprice.com
AUZ/SKI.
Inc photo of the newly just opened factory.
http://m.pulsenews.co.kr/view.php?year=2018&no=155990
SK Innovation breaks ground for EV battery plant in Hungary
2018.03.09 13:29:16 | 2018.03.09 15:40:56
South Korean battery maker SK Innovation Co. has chosen Hungary as its first European production base to make batteries that would power electric vehicles.
The company said Thursday it held a groundbreaking ceremony for its new EV battery plant in the northwestern city of Komarom. It expects the Hungary plant to serve as a strategic foothold in advancing into the European market.
It plans to inject over 840.2 billion won ($786.9 million) until 2022 in the project. The new plant would be capable of producing 7.4 gigawatt hours worth of battery packs annually, about twice the capacity of its plant in Seosan, Korea.
The plant would produce third-generation EV battery cells for electric cars capable of achieving 500 kilometers on a single charge.
“This European plant marks a pivotal moment in our decade-long push into EV batteries,” said Chey Jae-won, executive vice chairman of SK Group and younger brother of Chairman Chey Tae-won, at the ceremony. “We hope this would pave the way for SK’s efforts to power electric vehicles across the world.”
SK Innovation said that after weighing several other options in Eastern Europe, it settled on Komarom, a city 96 kilometers northwest of the capital Budapest, for its attractive location and business potential. The plant would be built on a 430,000 square-meter site, enough to fill about 60 soccer fields.
The company became the first battery maker in the world to start mass producing mid- and large-sized pouch-type NCM 811 batteries in September.
SK Innovation shares closed Friday up 0.99 percent at 204,500 won.
By Kang Doo-soon and Kim Hyo-jin
Long $AUZ.
AUZ will be on the hot seat to meet the Korean deadline.
I hope they have real SK support lined up. I mean, money, technical support, the works. AUZ needs it.
Squiirel…SK is a great partner. But you have to keep your eye on AUZ’s ability and progress in executing the financing and the construction.
Everything for AUZ depends on this. That is where the risk is.
AUZ has a thin organization, a big task, and tight deadlines. A failure to execute will be a disaster for them.
I’m not saying they won’t do it. But SKI is not the issue.
A few are awake to AUZ’s extrapolations.
$AUZ John, can you expound?
https://www.asx.com.au/asxpdf/20180228/pdf/43s1nfhtb39pb0.pdf
deanbob, if you sign a binding agreement with me to buy a pound of cobalt, if I can get it, at an unspecified discount to spot price three years from today, and the spot price today is $40, which headline is accurate:
Hendrixnuzzles inks Binding $40 deal with Deanbob”,
or
“HN and Deanbob reach off-take agreement on 1 pound of cobalt”
One is misleading and full of assumptions.
The other is factual.
People see the part that they want to see.
$AUZ…has anyone seen any financials on AUZ ?
Do they have any cash ? I looked on the website, could find nothing at all.
$AUZ .. hn this is showing cash of 4.64M
https://www.intelligentinvestor.com.au/company/australian-mines-limited-11119/key-financials
Cash (as at 13 November 2017) $24 million
What if?
It’s astonishing when you think about it. SK Innovation is a leviathan of a company compared to Australian Mines, AUZ, which is but a mouse in comparison, and yet the leviathan needs the mouse. AUZ did well to attract such an impressive suitor and became a focus of attention in the junior mining world. It was a bold move and now the pressure is on AUZ to perform. I wonder if AUZ might attempt another bold move. On the Queensland coast not far from AUZ’s Sconi resource is the former BHP Billiton laterite refinery at Yabulu. This became operational in 1974 but has since undergone some updating, the most recent being between 2004 and 2007. It is capable of processing laterite ore as well as imported mixed nickel-cobalt hydroxide precipitate, and is able to refine Cobalt and Nickel.
http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.511.6057&rep=rep1&type=pdf
The Yabulu refinery may, with further modification, be able to produce battery-grade Cobalt and Nickel (II) Sulphates. Since the report was written, the ownership of the refinery has passed from QNI to Australian businessman Clive Palmer and is now is some form of receivership, probably because it was very expensive to operate when Nickel was $8,500US per tonne. Now that Nickel is over $13,000US per tonne and that Cobalt has become so much in demand it might make sense to reactivate the refinery or, alternatively, some parts could be sold off cheaply and incorporated into a new refinery. i wonder if any of the leading junior miners in Eastern Australia have looked into this. Furthermore, there is no shortage of experienced former laterite refinery workers living in Townsville and the surrounding area, not far from Sconi.
It is also interesting to note that another former BHP facility, commissioned at Ravensthorpe in Western Australia in late 2007, also fell on hard times because of the fall in Nickel pricing and was sold to First Quantum Minerals in late 2009 and is now in production. I wonder if some of the junior miners in Western Australia might be able to access and benefit from time on this facility.
https://en.wikipedia.org/wiki/Ravensthorpe_Nickel_Mine
Just some thoughts.
Very interesting indeed! Thanks for that info.
It sounds like you are very familiar with the Aussie work structure. Are the workers unionized there? What has the relationship been with the unions, if any? Thanks.
Thank you edski. I’m not familiar with the Aussie work structure but I do know that a lot of skilled refinery workers lost their jobs at both plants. There was a lot of resentment towards BHP, particularly at Ravensthorpe, because the refinery had barely been open for a year before the layoffs began and its closure had a very detrimental effect on the local economy.
Good post ebeaver, it should be forwarded onto BB, he might have enough to do ha ha but that said everything you ever see started with an idea. SKI have started a business relationship with not just AUZ but BB more importantly as he went there and did Kimchi, which is very very nice, the philippines comes to mind. Maybe SKI want to source further raw materials in Australia, an exceptional safe jurisdiction. Maybe they will fund an expansions? Who you know/trust is a vital component, Asian mindset IMO, sure it business but….
Anyway food for thought, be interested to see what the AUZ HC blokes say if it appeared there?
Squirrel, in the light of recent developments, it will be interesting to see if there is a future for the refinery at Yabulu. Perhaps it could be “fettled” into a becoming a productive plant again. Ravensthorpe is already in production again in Western Australia.
$COB.asx fp Cobalt Blue 🙂
https://www.asx.com.au/asx/markets/priceLookup.do?by=asxCodes&asxCodes=COB