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.
$CTEQF $CLQ…thoughts on Fidelity
This release was done so quietly and without fanfare, it was easy to miss. But I think it is very important
for a couple of reasons.
1. As eagerbeaver noted, it is a huge vote of confidence.
2. Because of Fidelity’s size and stature, it makes CLQ a viable investment option for many other US institutions that have stayed away from CLQ on account of market cap. The fact that FIDELITY has taken a 6% position makes the other funds sit up and take notice.
3. Fidelity is presumeably a long-term holder. The stock is likely to end up in various funds and Fidelity
instruments that will not change holdings very often. Because Fidelity signed up, CLQ got 25%-33% of what they need to build, with stock, and the price of CLQ stock actually went UP.
4. The size of the placement indicates trademark RF planning and strategy. Here is CLQ with no listing
in the US, and suddenly–presto–40 million shares in the hands of American stockholders. He has been working with Fidelity and had them in his hip pocket. That is one reason the capital raise went like lightning. The deal with Fidelity coming on was all worked out.
5. The placement also indicates the the rest of the financing will go down without a hitch.
They are oversubscribed offering will probably come to a third of the capital needed for the mine,
and CLQ will nab the rest of what they need in bank debt.
Talk about underplaying your hand. What a move.
***
From prior post on CLQ catalysts:
“And most of all, we will have an indeterminate increase of investor awareness about the company.”
I think they’re going to need 300M more financing, for a total of 1.1B. I predict it will come in the form of an off-take package. I am assuming about 500M in bank financing, 250-300M in this latest offering. If I am right, my hope is whoever we off take with brings something special to the table, other than just money for a piece of the pie.
As far as the fidelity thing, that’s a lot of fan boy writing, its a good thing, but whatever. I expected some big money would notice cobalt is kind of hot these days, and Congo is kind of messed. Right now we are in the doldrums due to this annoying 6 month delay, but the stock price should pop back up to beginning of the year levels in the coming weeks, and hopefully the DFS catalyzes things up to new highs.
If this was the first big US money lot to invest into the company, that would be 4 quarters after I put up my big money. They are catching up to me, usually I’m 2-3 years ahead of them.
The world is accelerating. That’s what Tony Seba was explaining. You are as clever as before, but everything is happening faster.
CLQ finance…I see the figures the same way…they have some oversubscription in their back pocket, I thought they might get to $300 mill with $500 from the banks. They were at $794
including $100 mil contingency, but with the extra cost of rushing everything and the hint of cost issues on the engineering, I saw it as over $1 billion also.
I think they could slow down a little, if the stock goes up another $200-300 could be raised from stock without a lot of pain. What do you think the chances are of going all debt from here ?
If they got a big off-take, maybe they could swing it without any more dilution.
I would love it to be debt, but my gut feeling is it will be either the Easpring deal finalized, or something similar. I think they will go with a strategic partner who brings something unique to the table. I feel we are in a dream strategic position, and trust this management to monetize that.
Ditto. It would be great if they could do all debt. I thought of the Easpring negotiation, it is very telling that it was “still ongoing” last month; but I don’t know how they could do a JV for a factory and get cash into CLQ from it…unless they use the long-term off-take as collateral for the loan…”bingo” ? Maybe ?
More big backers back Clean Teq – money talks. AUZ and ARL are mysteriously lacking in this area.
$MGXMF – MGX Minerals Recognized as Double Finalist for S&P Global Platts Metals Awards
https://www.mgxminerals.com/investors/news/2018/335-mgx-minerals-recognized-as-double-finalist-for-s-p-global-platts-metals-awards.html
MGXMF long
$MGXMF…long…anybody know why the stock went south ?
Most of my attention has been in cobalt, and waiting for my Aussie brokerage to go live.
Don’t know if I can help most of my stocks have been down since February. MGX per Yahoo went down 3/1 and 3/13 but has been moving up after each.It does seem to be moving back up after 3/12 slower. The news releases since then seem to be positive but the market is not being nice. February was a bad month and March doesn’t seem to be much of an improvement.
$MGXMF long
$MGX
Well it seems like investors are bit fed up with news which does not really mean anything tangible, they want to see revenues and some real achievements and it seems that some promised goals are in delay.. discussion on ceo.ca is very active, too active to find useful stuff, but its there. Also it seems like it was pumped little bit too much with paid articles earlier this year. This is how I feel it. Im in at 1.06 average, should have been more patient, but yeah, same is with CLQ, learning every day 🙂 it will just need some time.
I am also underwater on MGX but not too concerned. Love the synergy with Teck, a favorite although I am not in it.
dungac…well, I bit in at $1.30 or thereabouts, so no sympathy from me on that one. If I double up I will have the same entry as you.
$AUZ ow – March 2018 Investor Presentation
https://www.asx.com.au/asxpdf/20180321/pdf/43slz74cmcd2pb.pdf
The very best to all!
$FYI – This Electric Metal Gem Is Up 55% In 2018, And Investors Have Hardly Noticed
https://seekingalpha.com/article/4158003-electric-metal-gem-55-percent-2018-investors-hardly-noticed?uprof=46&isDirectRoadblock=true
“Summary
At $14.2/lb, vanadium pentoxide’s price is up 55% in 2108 and up 280% from the 2017 low of $5/lb.
Vanadium is used in both the cathodes and the anodes of utility grid scale flow batteries that supercharge wind and solar farms.
The global vanadium supply, which is mostly Chinese, will be limited in coming years due to Chinese environmental restrictions.
With a low global inventory and growing demand, vanadiumprices are likely to be propelled higher than the current eight-year high.
Besides buying the vanadium metal, anotherway to invest in vanadium is through buying shares of vanadium miningcompanies.
Author’s note: I am the executive chairman of Prophecy Development Corp., a vanadium mineral exploration company discussed later in this article.”
note:This is a good update on the Vanadium marfket.
$VDMRF looong shot not recommended
I’ve been a shareholder of this company (PCY) for the last 3 years, and I’m more bullish now than ever! I simply don’t understand todays share price…
People don’t understand vanadium. Heck they are just discovering cobalt.
$AUZ – Australia Mines Offers Nickel-Cobalt Exposure With Three Promising Projects In Australia
https://seekingalpha.com/article/4158072-australia-mines-offers-nickel-cobalt-exposure-three-promising-projects-australia?uprof=46&isDirectRoadblock=true
AUZ np
$AUZ…the Sconi and Flemington deposits are very good but I think Thackaringa is a pipe dream.
If you look at the actual tenements you will see another company is really the boss there.
I do not like the AUZ management, they spin everything shamefully and withhold important facts.
There is a float of 2.6 billion shares, mostly retail. There is going to be a halacious dilution. They got a sub-$300 mil MC and they need to raise the cost of the mine ($500mil-$800 mil)before late September, or their vaunted partner can back out.
I wouldn’t be surprised at a major partnership of buyout. The shareholders may have a tough choice if the Koreans decide to make an offer. Something at 10 cents or so is a decent bet. I do not see any rush although the US exchange entry may give them a push. I don’t think the Koreans are in a hurry til the BFS in midyear, so I am not feeling rushed either.
Flemington is a red herring
Why?
Refer to historical maps of the region and pay note to the relationship between the dunite and nickel cobalt and scandium displacement. Only 1% of Sunrise falls into AUZ land.
https://hotcopper.com.au/threads/peer-comparisons.4080085/page-66?post_id=31857607#.WrRX-ys_WEc
But it makes for a good story.
John, all you’re posts regarding AUZ are negative to the extreme, with no real back up.
Why I ask myself?
John, you think the Flemington deposit is BS ? This would be really serious, can you give some references to check ? Or can it be determined from drilling results at AUZ ?
Speculation according to historical maps of the region of the sunrise / Syerston orebody. Read under geology;
http://www.cleanteq.com/wp-content/uploads/2016/12/9772_Clean-Teq-SYERSTON-PROJECT-GEOLOGY-AND-RESOURCE_31-1-17.pdf
Proof will be in the pudding. I think they will have some some scandium there but as the geology section says the Cobalt and Nickel is mainly concentrated within the dunite. Look at the maps.
John, I am not sure one can rely on the maps in that link. They are basically a schematic cartoon made to show the CLQ deposits. One cannot rely on it to make conclusions about dunite in the neighboring tenements.
Not that I am arguing in favor of AUZ, they make me very skeptical.
But I would never take a competitor’s rough map as a guide to another company’s deposit…if the indications are negative. If the indications are positive for the other company, then I would tend to accept it at face value.
The label on the map says “Syerston Gunnite.” They are under no obligation to indicate “Flemington Gunnite,” even if it exists.
John, SS…AUZ Flemington….I think to John’s point it is worth checking out what can be found about Flemington drilling results or establishment of resources.
AUZ talks about Thackaringa but if you look at the maps they have the short end of the stick…Cobalt Blue os the Boss. AUZ spins things all the time so it is better to see the facts on Flemington.
$AUZ no position…news today, it will be listed on the US OTC.
I think it is a positive move for the company but there are major unanswered questions on the financing, and the terms of their take-off with SKI. The recent investor presentation does not address these issues.
I have some interest, I think that SKI will exercise their option and that the mine will be built, but I fear major dilution. A takeover by SKI is also possible, IMO.
I am also very skeptical of them keeping pace with CLQ on construction, though they are striving mightily.
I will be considering moves this week, to be executed next week. I am set to put on a position in Ionic Industries.
So I would be very interested in hearing the strongest ideas from you all…I am not too interested in long-term raw exploration, I like development projects better that are farther along.
COBALT: open to more CLQ & ARRRF; could add PGM, maybe a little AUZ;
open to other suggestions, like ECSIF & COB.
OTHER BATTERY PLAYS: looking for a good vanadium play, I have only SRI and it is really a long shot.
I would consider Fluence and their associated JV partner, also Siemens.
TECHNO MINERS might add MGXMF at low levels.
RESOURCES…liking Teck at low prices; like SCCO but it got away from me and is $54
GOLD…ERDCF is really low now, the sector has been quiet
The easiest thing would be to just buy a big slug of CLQ. We are only 8 cents over the 40 million shares put on by Fidelity and have tons of catalysts coming. Sometimes the simple things are the best.
EUC ASX must be getting close to reporting on their operations in Dobsina.
Been snowing heavily.
$COB.asx ow – Cobalt Blue – LG International Strategic Partnership
https://www.asx.com.au/asxpdf/20180323/pdf/43sp1dklmtlp2y.pdf
$Best2ALL!
$COB…I saw the LG deal but something is missing. LG is massive but the deal is only for $6 mil and there is no take-off. The project looks early. I wonder if they are doing a streaming deal like a royalty company…funding drilling and studies for a percentage of future production.
Vanadium sources…I still expect Friedland to lay down something great in China on vanadium but I am starting to look at other tickers for vanadium.
The top Aussie picks appear to be
TMT
AVL hot lately
KRC mentioned here by another poster recently
TNG
LGO Largo
In addition, there is PCY and Vanadium Corp.
Just starting to sort them out. No opinions or positions as yet; may try for a little coverage and buy a few.
Anyone having something very positive or negative, please speak up.
Best regards to everybody.
CCCCF, STNUF—Long….Both in North America with high grade deposits of Vandium HN and STNUF has VFB’s for a little kicker. I haven’t seen ya over on the Battery thread lately…Cowboy
I mentioned KRC a while back. Jumped in Long immediately (5 cents) after doing some intense short DD. Has multiple options, all very good. Below is a recent HC post by thaiinvest who knows his stuff. Long way to go this one…. There have been comparisons to AVL, I believe KRC better, just my opinion of course and management seem to be on the ball.
Also regards vanadium took a Long position on AEE, underwater on this one but they have great resources in the ground. High risk/reward.
KRC post:
Sorry been traveling for a while – so missed the 3 unexpected announcements – great news on all 3 – I should go traveling more often.
Application for expansion via 3 new licenses 1,500 sq Km around Mt Remarkable – this tells me management are as bullish about Mt Remarkable as Moneymade – a very good sign
Concentration Grade Optimization – 2.11% Vandium Pentoxide, 16.23% Titanium Oxide and 63.27% FeO3 – “The highest vanadium concentration grade of all Australian (Vanadium) Deposits” – this further proves what Possum has been saying on the importance KRC concentration grades for the last several months. (hopefully this will finally silence the down rampers on grades – though I doubt it)
Additional A$6 million – 50% Underwriting of June Options. If all the options total A$12 million get cashed at the option price of A$0.10 which they should do at the current share price of over A$0.10 then the options of A$12 million + A$6 million underwriting will provide A$18 million cash. Management have done a great job progressing the company with very little – this cash provides the fuel to accelerate all the projects
– Speewah Vanadium and Titanium
-Speewah Fluorite
– Mt Remarkable –Gold
When it comes to cash a bird in the hand is worth 2 is the bush.
I do not blame anyone who sells a shares, every individual has their own target and / or trading strategy – many people once they double their entry price then sell 50% regarding the remaining shareholding as “Free Carry”, others sell simply because they need some cash, or change their sentiment on a stock. Others sell because they think a stock has “had a good run” up and is peaking and due a retrace (not helped by the bots) – however with a stock like KRC since 12 March we have seen several false peaks with very little sustained pull back and a seemly insatiable heavy demand from what would appear institutional investors pushing up the price further to yet new peaks. To me we are still in the foot hills of our climb of Everest, we will only reach base camp when the new Speewah Scoping Study is release due next 2 weeks.
I think this is way to early in the KRC story to be selling any – IMHO – Your KRC shares are worth a lot more than you think.
Investing in mining explorers is a risky business, around 80-90% of companies explorers will not make it. Fancy power point presentations, rock chips and trenching samples do not a independently verified JORC report make. Others like KRC even with great management will take many years and the right turn in the economic and commodity cycles with the right minerals to reach the achieve their true promise. Different people have different strategies – some spread their investment into a lot of companies – I tend to do a lot of research and try to sort “wheat from chaff” not always successfully and ultimately tend to invest more heavily in only a very few shares (currently AUZ, KRC & CLA). I try never to negatively compare one share versus another, as nsw004 says I think down ramping/sledging is poor form. DYOR run your own race in life, don’t look over the fence in envy, sometimes it best to keep the blinkers on.
I bought in to KRC at an average A$0.207 and enough to keep the wolf from the door. Having been a bit of a petrol head in my younger days I am now a clean energy advocate EV batteries etc (perhaps old dogs can learn new tricks !) so I was attracted to KRC because of the vanadium, and was somewhat dismissive of the gold – however after the latest new license applications around Mt Remarkable I eat humble pie on the gold and all kudos to Moneymade who always said gold was an important leg to the KRC stool (Vanadium Titanium Gold and Fluorite). I look forward to the new drilling from May on Mt Remarkable drill results I guess in June / July
I have not sold a share in KRC and don’t intend to – this has along way to go – and as I have said before, the Scoping Study due shortly will IMHO certainly not disappoint – I believe people will be very surprised just how profitable the Speewah Vanadium and Titanium project will be
I attach below for those who may not have seen it my post of 5th February this year after looking at the KRC 2012 Speech scoping study and plugging in the latest Vanadium pricing – I think I was a tad optimistic on the Titanium Pricing and hence the revenue side
I look forward to the new KRC Speewah Scoping Study due in hopefully in the next 2 weeks – we will soon see how accurate I was or was not.
Hang on to your KRC shares IMHO the best is yet to come. DYOR GLTA – Thai
Date:
05/02/18
Time:
03:54:01
Post #:
30812728
Start of thread
KRC potential valuation:-
Its always difficult to put a valuation on a exploration or mining company especially one like KRC, with great potential but no current revenues. However I thought it might be useful to try to figure out roughly / “back of envelope” what KRC could be worth and start a discussion around this with people on HC Bulletin Board who are much more knowledge than me; so feel free to chip in as there are so many great posters with lots of knowledge.
As mentioned by Blister, perhaps unknown to more recent shareholders, KRC did actually complete pit plans (issued 10 May 2011) and a full Speewah Vanadium/ Titanium scoping study 6 years ago on 23 April 2012 (see ASX website for company announcements) I attach some relevant pages of that 2012 scoping study below. Its worth a good read and print out for your KRC file. However due to the market situation at the time in 2012 KRC mothballed the project until revising it again in 2017 primarily due to the increase in mineral demand and prices particularly Vanadium. We are only now benefiting from all that hard legacy work that KRC did in 2012 and before.
As Stephen said in his earlier excellent post in Jan on the quality of our KRC Vanadium ore wrote (also attached)
“Posters may be shocked by the numbers that eventually spill out of their upcoming scoping work.”.
Not to pre-empt the new KRC scoping study due end March 2018; however I think we can get an initial rough idea of the potential financial impact of the KRC Speewah project now by looking at the 2012 scoping study and updating for some current mineral pricing figures.
2012 scoping study (see attached) assumed the following tonnages of production and prices
Titanium TiO2: 99% purity 75,000 tonne @ 3750 = US$281.25 million
Vanadium V2O5: 99% purity 12,400 tonne @ 13,500 = US$167.4 million
Iron Ore Fe2 O3: 99% purity 410,000 tonne @ 160 = US$65.6 million
Ammonium Sulfate (NH4)SO4 200,000 tonne @ 275 = US$55.0 million
Total Annual Revenues pa US$ 569 million
Total Annual Operating Costs US$ 359 million
2012 Scoping Study Net Annual Operating Cashflow EBITDA US$210million
(EBITA – Earnings before Interest, Tax and Depreciation)
Capital Expenditure/ Build Cost US US$896 (inc 10% contingency)
Payback Period: 4-5 years
Internal Rate of Return: 23.4%
Other assumptions:
Exchange rate of A$1 = US$1
Mine Life 100 years + (Note recent interview with Board Member they “gave up calculating on LOM after 1000 years”. It does mean that they could double or quadruple the 2012 Scoping study production and still be 250 years+ LOM (i.e Speewah resource base is massive largest in Australia certainly one of the largest Vanadium deposits in the world)
2018: Using 2012 Scoping Updated for Current Titanium and Vanadium prices.
(note I have used metric tonne conversions 1 tonne = 1000kg & 2204lbs.)
The great thing about mining companies in a rising commodity/ mineral price environment is that assuming the same ore processed, ore grade and production figures, the increase in metals price drops strait to the bottom line, so applying the current metal prices for TiO2 and V205 to the 2012 Scoping study I get
TiO2: 99% production 75,000 tonne @ US$4,800 per tonne = US$ 360 million
V2O5: 99% 12,400 tonne @ US$28,652 per tonne = US$355 million
Fe2O3: 99% projected price @ US$160 per tonne = US$65.6 million
(NH4)2 SO4 ; not given @ US$275 per tonne = US$ 55 million
Annual Revenues based on updated TiO2 and V205 pricing US 835.6 million
Less Annual Operating Costs US$ 359 million
Net Annual Operating Cashflow EBITA US$ 476 million
Assuming the same Capital Expenditure/ Build Costs of US$896 project payback period would decrease from 4-5 years to 2 years or slightly less.
Typically I would use a 6 X EBITA valuation however given the 100 year + LOM (life of mine) & a 2 years project payback period I think even a 8 X EBITA would still be conservative for this KRC Speewah project.
So EBITA US$476 X 8 = US$ 3,808 million @ US$1/ A$1.25 = A$4760
Current Number of Shares in issue approx. 1130.5 million
+ projected dilution via issuance 124.4 million of options due June 2018
= June 2018 Shares in issue approx. 1254.9 million shares
= KRC Valuation with Speewah in production enterprise value A$ 4,760 million / shares in circulation 1.254.9
= Project value per share A$3.80
However conservatively assuming a highly dilutive 50/50 JV to develop Speewah would be worth 50% of this so MC A$2,380 million and A$1.90 per share less of course any further share dilutions.
Notes
Given management’s large stake in the business, high profitability and rapid project payback period I assume they will keep dilution to the minimum. (i.e will fund as much as possible of capital costs with debt rather than equity)
Note the Options due in June 2018 will raise approx. A$12.7 million i.e at A$0.10 per share if exercised (only worth option holders exercising if price in June 2018 is over A$0.10 per share.)
I have not changed the Expenses assumed in the 2012 study. The capital/ build cost assumed a 10% contingency price and a exchange rate of US$1 = AS$1 as I assumed the US$ imported equipment would probably be off set by the lower A$ local build costs. The Annual Operating costs I have also not changed although they may be lower as labor paid in A$ would be lower when convert into US$ at current exchange rates, plus we don’t know the updated metallurgy costs of getting to 99.5% TiO2 & 99.5% V2O5
I used 99% rather than 99.5% titanium pricing and 98% China Vanadium flake pricing versus the 99.5% Redox Battery grade Vanadium we are aiming for, as that’s the only pricing I could get. I assumed same pricing for Fe2O3 and (NH4)2 SO4 as I could not get accurate pricing for these (it seems to vary widely based on quality)
These number are only hypothetical / back of envelope – and I look forward to the real KRC Scoping study due from KRC at end of March – however it gives an indication of what KRC’s valuation/ stock price could be once we are in production at Speewah and tells me the current stock price is currently very undervalued.
However to me its shows KRC with its Speewah Market Cap in 2-3 years could IMHO conservatively be worth circa A$ 2,380 million equating to a share price of A$ 1.90 conservatively assuming a 50% dilution for a JV and assuming current rather than projected Titanium and Vanadium mineral pricing.
+ Gold + Fluorspar + other potential minerals i.e Copper
So what’s KRC worth today if the above is correct –
> End of March hopefully with metallurgy confirmed that we can reach 99.5% Vanadium Oxide and publishing of the official Speewah Scoping study hopefully showing similar or better profitability then I think a MC of circa A$250-300 million circa A$0.25 per share seems reasonable.
> Confirmation of Finance to Build Speewah and ground breaking of mine MC of A$500 circa A$0.45-0.50 per share seems reasonable given discount for 24 – 30 month build time, with an increasing share price as we get closer to mine commissioning/ operation.
IMHO – KRC is in an increasingly good spot & all the stars, are after all these years of hard work, are finally aligning in KRC’s favor. We have :-
We have a good and long serving Board and Management team with much skin in the company.
We have with Titanium and Vanadium fairly rare and very high demand products with a rising price. Vanadium projected to increase further to circa US$20 per lb by 2020
We have a surface/ low strip / low cost mine with 1000+ year length of mine LOM/ mine life
We have once processed a very high quality ore one (much better than it initially looks – see Stephens note on the ore below)
As others have noted we have a clear and much better than many route to market / export route 30kms off the Northern Highway then 170km to Wyndham Port (Note until recently 2016 Wyndham was being used to export large quantities of Nickel – so KRC mineral products should be no problem to handle and require little if any port changes.
The key unknown now is the confirmation of being able to produce a 99.5% battery grade Vanadium oxide – hopefully this will come. If KRC can achieve 99.5% Vanadium Oxide the high product demand and profitability and fast payback of the project should attract the finance required.
There is still much work to be completed impact studies and approvals, mining license, native titles other finance/ JV agreements, probably new road works from the North Highway, mining camp/ accommodation to be built/ air strip, electrical power solutions mine and plant build and testing/ fine tuning debugging etc. minimum 24 -30 months from investment decision that will hopefully be in July this year so hopefully in production mid July 2020 (Those with mining experience please advise if you see this date as feasible)
I have only dealt with the Speewah and the original scoping study as my main interest is EV Battery mineral investments and it’s obviously easier to put a value on a 2012 KRC scoping study based on already completed JORC resources and simply updated for the current Titanium and Vanadium price, than try to put a value on our KRC gold discoveries that still require much more drilling to fully quantify JORC the total Gold resources.
Obviously Money made and others with more Gold knowledge will have better idea of what KRC’s gold maybe worth though from a resource point of view its still ‘early days” and that will change as we get more drilling results and proving up and hopefully a JORC 3rdParty resource assessment of gold in place.
Strategically its also interesting as AUZ shareholder to see AUZ’s recent plans to FOCUS on the EV/ Battery space minerals through their 3 projects Sconi, Flemington and Thackaringa by:-
Free floating their gold assets into a separate company with all AUZ shareholders getting pro rata free shares in this new gold company.
Hanging a for sale sign over their Marriotts Nickel project
In my opinion the analysts and major investors want dedicated focus on core assets, as the sum of the parts of a widely diversified portfolio is usually worth more separated rather than kept as a whole. With the high competitive customer demand for EV/Battery minerals I believe that AUZ is also looking at innovative less dilutive options to funding mine development and these could apply to KRC. IMHO these are decision that KRC management may look at down as we get further down the track.
Many thanks to all KRC posters I enjoy your posts and I hope this is useful. IMHO – its going to be a great future for KRC your share are worth more than you think – hang on to them. After so many years of toil and strife for KRC and its long term shareholders they deserve the reward I think is coming. Cornwall here’s to you getting your money back and hopefully a lot more.
GLTA DYOR
SS KRC ASX call of yours is a ripper, and looks likely to go higher.
True story, my friend asked me recently what shares I had been buying, and I said KRC, he replied never heard of it, I answered, neither had I , until SS mentioned it on a share forum site.
Anyway, he brought a few, and this week sold some to buy a car – not any ordinary car, a few years old HOLDEN SS special vehicle, which his wife has always wanted.
SS you will not be forgotten. especially by his loving wife who adores her new SS.
I’ve recently purchased a solid number of POW ASX Protean Energy shares, vanadium deposit located in Sth Korea.
Hi williamstown, excellent your mate got what he wanted for his wife. These stocks can be such a gamble, DD yes but luck and timing also. I’ve never heard of that car, Googled it, looks very cool. Regards KRC, has serious legs from this point imo, risk perhaps but is my favourite play all told. You’d think must pull back, but lots of news coming on the many fronts they have. I believe it could be a $1 stock given time….
Regarding – POW ASX Protean Energy shares, vanadium deposit located in Sth Korea. Will check it out. Thanks.
Best SS.
Ah, just worked out that $KRC is King River Copper, as listed on ASX. Looks interesting. NP (yet)
$CLQ
Did I miss a discussion of the rights offering? What are folks take?
http://clients3.weblink.com.au/pdf/CLQ/01963426.pdf
https://www.fidelity.com/viewpoints/active-investor/trading-penny-stocks
Fidelity loaded up here while giving thumbs down to penny stocks…
See how many shares Fidelity picked up ? They know more then most. Follow the money.
Hedy…It was terrific. They oversubscribed 44% in 24 hours…got the $150 and probably another $100 million they will use as they need. So $250 million, maybe 1/4 to 1/3 of what they need to build. Hoping the rest can be in bank debt, no more dilution.
The “dilution” resulted in no suffering, the stock has been higher than the $1.15 offer.
Another brilliant aspect to it was that RF had FIDELITY lined up, it came out a day or two later that Fidelity bought 40 million shares. Fidelity is one of the biggest.
What this means is that Clean Teq is now going to be fair game for big US institutions…if Fidelity can take 6% of Clean Teq, the other funds will, too.
Also since Fidelity is likely to put the stock into various funds of theirs, they will hold the stock. They are not day traders. So the new stock issued is not going to be dumped onto the market.
It’s embarrassing to praise RF so much. But the offer was handled so well, and was so well-prepared,
so lightning fast,that it is a marvel of well-thought out financing that contributes to our admiration of his management and grasp of strategic priorities. It makes me pretty confident that the rest of the way will be with debt. The mid-year BFS is going to be a shockingly good, the banks will be on board.
I thought the offer stated it was not for US direct subscription.
I think the offer was for $150 mil private placement, Fidelity was in on that offer. I am sure they were in the bag beforehand, they were identified in a separate announcement because they bought 6% and thus triggered a reporting requirement.
But over and above the $150 mil, existing shareholders in Australia and new Zealand only could sign up for $15,000 at the private price. So US shareholders were not offered the supplemental, for whatever administrative reasons.
I like hedy1234 point. I use Fidelity in one of my accounts to buy CTEQF. They charge me 50 bucks extra . That is Extra to buy CTEQF. They sent me a mail if I was an Aussie I could get in on this. Hell they are not Aussie as far as I see. So why the hell do they get this sweet deal and not me that uses them. I called them on the phone and they said I have to be Aussie. Did not know Fidelity is Aussie LOL. Would guess hendrix is right “administrative reasons”. But I am glad I have the shares I have even though I think powers to be
have been screwing me. We are the small players.
What I think happened is that the base $150 mil is a private, it can go to anybody and that is where Fidelity got their 40 million shares;
but that the Aussie & NZ (& Canadian ?) shareholders were offered supplemental
participation up to $15,000 over and above the $150 mil basic offer.
The got 44% over the $150 mil in one day; and I think the supplementals are on top of that.
I’m in Canada and this was offered to me thru my brokerage..
$CTEQF
I’ve been out of town & out of electronic contact so still catching up with e-mails, etc., sigh.
Got this reminder from Schwab today:
“Reminder Notice of Rights Exercise Offer – CLEAN TEQ HOLDINGS ORDF
Our records indicate that you hold CLEAN TEQ HOLDINGS ORDF shares in your account ending in XXX. We have not received instructions for the CLEAN TEQ HOLDINGS ORDF Rights Exercise Offer. Please go to http://www.schwab.com/corporate_actions to read the terms of the offer and submit your instructions or call 800-435-4000 (clients outside the U.S., please call +602-355-7300) for information on the terms of the offer.
You must submit your instructions to Schwab by APRIL 11, 2018.”
So – I can still take advantage of the offer? (whatever it might be since I don’t have time to read it all right this minute; my to-do list just got one item longer). Is this what is being discussed regarding Fidelity? Did others get a similar request, or was I just special?
Inspector Clouseau talks …. Sama means “Elephant”
https://www.youtube.com/watch?v=D38gVgnJZcw
Very nice. Long $SAMA. Friedland going in with $30 mil cash and the HPX toys. I hope they do better than they did at Cordoba and Labrador.
Ardea will release their PFS this coming week. There should be a ton of data that will be relevant to Clean Teq since Ardea is basically in the same business with a very similar type deposit. For people itching to see what the numbers look like for such an operation with present day nickel and cobalt numbers, this document will be of interest. I have no idea if they will include anything with scandium, platinum, or anything else.
Long Ardea and hoping for a nice little pop this week!
Cobalt Blue and LG Chem…there had to be more and they announced today LG Chem is buying $14 million shares of COB at over $1. Still small money, not enough to build, but they must have a lot of future steps planned out.
No position Cobalt Blue.
https://seekingalpha.com/article/4158667-cobalt-miners-news-month-march-2018?ifp=0
$FYI – Cobalt Miners News For The Month Of March 2018
by Matt Bohlsen @sa
Summary
Cobalt spot price news – Spot prices rise 18.7% in the past month as inventory falls. The cobalt spot price is now over USD 40/lb, and approaching USD 100,000/tonne.
Cobalt market news – China leaving West behind in race for electric-car raw materials. Battery makers descend on Australia, Canada cobalt developers.
Design News – “Cobalt will remain an expensive but necessary ingredient in our battery energy future.”
VW secures $25 billion battery supplies in electric-car surge.
Cobalt miner news – China’s GEM had agreed to buy 52,000 tonnes of cobalt from Glencore over 3 years.
https://seekingalpha.com/article/4158667-cobalt-miners-news-month-march-2018?uprof=46&isDirectRoadblock=true
$CTEQF $ECSIF long
The SA article Griffin and Rubberworm linked to has an interesting comparison of Ardea, Australian Mines, and CleanTeq numbers. Also, HN are you still looking for copper producer? The same article discusses ‘MMC Norilsk Nickel [LSX:MNOD] [GR:NNIC] (OTCPK:NILSY) ‘ which produced copper in addition to gold and other PM’s.
Thanks for the idea. I’m still avoiding big caps although maybe I should reconsider, since it does look like a bull market has started. TCK and SCCO would be my first stops.
STNUF–Long…..Vanadium and VRB’s….Found this Advertorial on STNUF from Keith Schaefer tonite… https://oilandgas-investments.com/2018/latest-reports/my-1-vanadium-stock-stina-resources/ ….Cowboy
Thanks, Cowboy. Stina looks like a good pick.
Just starting now to get serious about figuring where to put more money to work.
The landscape in vanadium has a lot of choices for such a minor metal.
There are at least 10 ideas and I want to leave open some money for whatever Friedland comes up with…
there is sure to be something soon since he is the chair of Pu Neng.
There’s a difficult selection process in vanadium. Will post thoughts after I do some more research.
I have not been around too much the last month for a couple reasons:
1. Real estate needs to close for $$
2. Not sure where to go with the $$, and I am committed to the Ionic PP for a big chunk of it
3. On vacation in Florida
4. COBALT I spent a lot of time doing a virtual investment tour of Australia ( i.e. Hotcopper) for cobalt, since I think the takeover frenzy is just starting and I wanted to be sure of my positions. IMO The AUZ halt on February 16 signal was real signal.
The long and the short of it is that the basic conclusions about cobalt that I have reached here with collective input are pretty much unchanged from a month ago, and in the next week or so I will execute from my assessments. With respect to cobalt:
CLQ still my favorite; may add though position is already a monster
ARL have small position but will expand to full or overweight
AUZ may take a position (their BFS is due in summer same as CLQ)
PGM drifting but is a bargain at current prices, under $30 mil cap. Now focus is on scandium,
they are not running in the cobalt race but trying get to scandium fast with a smaller plant
COB reasonable with LG on board, but not sure I want to dilute my positions to take it on
EUC will stay put with a fractional position
ECSIF valid idea because they have the metal
Cannot take on more than this, too many other opportunities. A position in COB or ECSIF is unlikely for me, and I am OK with AUZ at 10 cents but see no hurry. IMO the SKI option at 12 cents for 20% of AUZ is unlikely to be exercised before the BFS, so I do not feel urgency. The priorities for me would be to build up CLQ and ARL, and re-enter PGM even though it presents itself as a scandium resource.
AUZ is a trader’s stock with a giant float, and management makes me nervous, even though the Sconi deposit looks great and they have SKI supporting them. The SKI option at 12 cents is a good reference value and we can buy AUZ for 10 cents.
Mentioned CLQ, see last section – not sure how relevant it really is, maybe just a sales fee report pitch?
https://peopleexclusive.com/air-purification-systems-market-projected-at-usd-2-70-billion-global-forecast-to-2023/
Air Purification Systems Market Projected at USD 2.70 Billion – Global Forecast to 2023
The exploration entitled as ‘Global Air Purification Systems market‘ entitled USD 2.02 Billion in the year 2017 and market will account CAGR 4.96% and the Air Purification Systems industry size will worth USD 2.70 Billion amid the forecast period of 2018 to 2023. The looming Air Purification Systems market contains the authentic information of the previous years. 2017 is the base year of the Air Purification Systems market and while the forecast frame is 2018 to 2023.
At first, it shows essential definitions, scope and outline of Air Purification Systems market, its applications, determinations and Air Purification Systems drivers. Fundamental usages, documentations, and conventions utilized. All the essential elements of Air Purification Systems, that clients ought to know about, for example, official statements, procedures of Air Purification Systems industry and deals volume are clarified in this examination report. The Air Purification Systems report covers names of the considerable number of providers, merchants, producers, end-shoppers of this Air Purification Systems market.
Information as diagrams and tables help to imagine showcase gauges, showcase patterns, and Air Purification Systems improvement status. Industry specialists execute individual meetings, interviews, overview papers and research papers to know the definite viewpoint of Air Purification Systems market. Further, it comprises of data wherein it demonstrates insightful pictures, Air Purification Systems characterization, item volume, producing improvement and Air Purification Systems use esteem.
Free Air Purification Systems Report for More profound Understanding: https://market.biz/report/global-and-regional-air-purification-systems-market-hny/225370/#requestforsample
Segmentation of worldwide Air Purification Systems market statistical surveying report:
Real contenders that head the global Air Purification Systems market- Honeywell International Inc, SPX Corporation, Mann+Hummel GmbH, Clean Teq Holdings Limited, 3M Company, Clarcor Inc, Alfa Laval AB, Ltd, Sharp Corporation, Daikin Industries and Air Products and Chemicals Inc.
Someone should tell the writer of this article that Clean TeQ has been out of the air purification market for years.
How clean indoor air is becoming China’s latest luxury must-have
https://www.theguardian.com/cities/2018/mar/27/china-clean-air-indoor-quality-shanghai-cordis-hongqiao-filters?
$STNUF – Stina Announces Spring/ Summer Exploration Program for Bisoni McKay Vanadium Project, Nevada
https://static1.squarespace.com/static/59d4e92312abd97898339b6b/t/5ab9e547575d1f04212acf1d/1522132295659/NR-03272018.pdf
note: these grades are outrageous!
” Drilling adjacent to six holes from the 2005 and 2007 drill programs that ended while still in well-
mineralized material, to test the full extent of the mineralization in these locations (five of these
holes are in the areas covered by the Indicated Resource). Two of these holes ended in the highest
grade intersections encountered to date on the property (DDH BMK 05 -01, 0.76% V2O5 over 35 m,
and DDH BMK 05 -02, 0.66% V2O5 over 40 m). This information is taken from data and cross
sections published in the NI 43 -101 compliant Phase 2 Technical Report (amended August 29, 2016),
authored by Edwin Ulmer and filed on SEDAR under the Company’s name . These two intersections
have been verified by the Company’s Qualified Person, who has reviewed the geological drill logs
and all the relevant original assay certificates”
;
$ARL $ARRRF…PFS released today as promised by Renby.
Renby…your pick…I would love to hear your take on the PFS before anyone else’s.
Yes, I’m looking forward to what Renby has to say.
$ARRRF I need to go over it with a fine toothed comb, but I’ll give my initial impressions. The most shocking part was the market reaction, which gave it a shave. I didn’t see anything that warranted that. But this is a tricky time for Ardea stock price, because of these “loyalty shares”. A lot of holders of these shares may have been waiting for the PFS to dump them, that is just a guess. In a few months, these loyalty options will expire and go away, and stop being a drag on the SP. The PFS was for the most part boring, you wish for spectacular numbers, and would like to see something priced in for scandium, platinum, you’d have liked to see 4Mtpa financials just for the fun of it, instead of just a 1 and 1.5Mtpa examples. The capex was high for a 1 Mtpa project if that is the way it starts. It was an unspectacular release, and a disappointing market reaction, but it doesn’t change a thing for me re: this investment. They have a fantastic “out of africa” cobalt deposit, and the world is going to require it, one way or another. There is 22 billion dollars of cobalt and nickel at least. In just the high grade cobalt zone. Which is a fraction of the total deposit. So however this thing progresses, I figure someone huge will come along and take this over at some point, and finance this as a bigger project then outlined here. Ultimately this thing will get reasonably monetized, and that should be somewhere around 10X more then its present market cap.
I guess we can also give management some credit for getting the study out on a timely basis as guided.
Long $ARRRF OUCH!
That was a bit of a let down! Now what to do?
I don’t know about you, but I am in deep red today in ALL of my issues, mostly in PM’s Metals, AND Bio…..just sayin!
Thanks Renby I agree with most of your observations, and intend to add. Market cap really low.
The metal in the ground has not changed, and I actually respect management for their approach taking the small option on account of the relation of their market cap to capex needed.
Never like it when the stock goes south but the long term uptrend is still in place. So far it’s a 20% correction; maybe it will get worse; but it is not a rare thing, and most of the holders are above water, only recent buyers are hurting from entry (like me).
Costs are the problem. Their costs are too high. Wonder what they could do to lower them.
dont fall for the metal in the ground (IGV) hype. Even the high grade zone looks uneconomic to extract according to the PFS. The .05% stuff may as well be kangeroo droppings.
The high grade zone looks uneconomic at 40 cents nickel cost after cobalt credits? Please explain. And while I agree that uneconomical in ground value can be useless, in this scenario we are in, I disagree. Non Congo cobalt could become valuable enough where even the low grade stuff becomes worth a lot. If cobalt peaks at $120/lb and nickel at $12, what will Ardea be worth? I’d give at least a 20% chance we see prices like that in the next 5 years, and if not that, how bout $60 for cobalt. Now what are the economics? Read what the experts say about where they expect cobalt and nickel prices to go as the EV revolution progresses. This energy/battery materials revolution is a once in 20 years opportunity for those who can put 2 plus 2 together, all the info you need is readily available for those who can project what is happening.
For those who may be interested, here is the PFS for Ardea Resources (ASX.ARL; ARRRF) just released. This is for their Goongarrie Nickel Cobalt Project.
https://hotcopper.com.au/threads/ann-outstanding-pfs-for-the-goongarrie-nickel-cobalt-project.4104124/?post_id=32078404#.WrrSXiOZOCQ
Click on Download Document.
Long $ARRRF, $CTEQF
As mentioned previously the Western Australian deposits are nothing like Sunrise. They are acid guzzling. They need CLQ tech to make them worthwhile. Using standard high cost technology will blow your budget.
Why did Friedland vend into Clean Teq -technology.
At the end of the day ARL had to use spot pricing – enough said.
Long Clean Teq
So there should be a lot of value in this
https://www.multotec.com/news-articles-events/world-water-day-2018
https://www.multotec.com/product/solid-liquid-separation/clean-ix-for-metals-recovery
John re: “Why did Friedland vend into Clean Teq -technology.”
Do you mean to ask, Why did he take Pengxin as an equity partner ?
Clean-iX for metals recovery benefits:
Maximises resin performance and selectivity
Minimises reagent consumption
Reduces the number of process steps
Increases metal concentration and purity
High solids handling capability
Clean-iX can be used to recover:
Precious Metals
Gold
Silver
Platinum Group Metals
Platinum
Palladium
Rhodium
Iridium
Base Metals
Copper
Nickel
Cobalt
Zinc
Rare Earth Elements
Light (LRE)
Medium (MRE)
Heavy (HRE)
Speciality Metals
Scandium
Vanadium
Niobium
Tantalum
Uranium
Titanium
Zirconium
Nice list. Funny they don’t list lithium. Bet they can do it, but do not give a damn.
I doubt that the process they have would show an advantage over present lithium recovery methods. Nearly all lithium is from brine that is pumped into a series of ponds. Through solar evaporation the brine concentrates and three separate salts precipitate out of solution in series. After one drops out in 1st pond brine is pumped into 2nd pond where 2nd salt drops out and then to 3rd pond where final salt precipitates. Resulting salts are dredged from the ponds and go through further treatment before sale.
A foothold into China.