Friday, 18 May 2018

GEM Royalty Co. TNR Gold Los Azules Royalty Holding - Copper: Driving The Green Energy rEVolution.



InvestorIntel: TNR Gold Fine Tuning Royalty Model For Green Energy Metals.




"But the investment that could return really big bucks is another NSR that TNR holds in the Los Azules copper project in Argentina, currently being developed by former Goldcorp founder Rob McEwen. TNR holds a 0.36% NSR royalty on the project, which could return $35 billion over a 35-year mine life. A looming copper crunch as the market could move into structural deficit by 2020 means that major mining companies are hungry to pounce on attractive projects being developed by juniors. A preliminary economic assessment shows that Los Azules could deliver 415 million pounds (188,241 metric tons) of copper production a year for the first ten years of mine life with cash costs of $1.11 a pound, according to TNR.
“Investors are putting a larger discount on our cash flow because people do not expect that McEwen Mining will put this project into production,” Klip said. “All majors are looking for a good copper project and there is more and more interest.



LEGAL DISCLAIMER

Please read legal disclaimer. There is no investment advice on this blog. Always consult a qualified financial adviser before any investment decisions. DYOR.

Tesla Energy rEVolution: TNR Gold CEO On The Beginning Of A Megatrend Led By Electric Cars.





LEGAL DISCLAIMER

Please read legal disclaimer. There is no investment advice on this blog. Always consult a qualified financial adviser before any investment decisions. DYOR.

Introducing GEM Royalty Co. - The Green Energy Metals Royalty Company TNR Gold Corp.



LEGAL DISCLAIMER

Please read legal disclaimer. There is no investment advice on this blog. Always consult a qualified financial adviser before any investment decisions. DYOR.


Copper: Driving the Green Energy Revolution




Thursday, 17 May 2018

Meditations On The Future Of Tesla Energy rEVolution: Next Brilliant Move For Elon Musk After Kidman Lithium Deal Can Be Buying Stake In SQM.




I would like to congratulate Kidman Resources and Elon Musk at Tesla with this historical deal in our Lithium Universe. As we have discussed multiple times, I would really urge Elon Musk to secure Lithium Supply for Tesla Energy rEVolution and focus on Model 3 and Model Y, leaving autopilot efforts aside and allow our society to grow organically into it. This way, in my very personal humble option, Tesla will blow all competition out of the water for years ahead and sail into its Electrifying future. Hopefully, we all can follow. 





The main problem is not with autopilot technology, which still has to improve by the way, but with people and every single incident with Tesla will be blown out if proportions hurting Elon Musk personally and Tesla brand. He can sell 500,000 Electric Tesla Model 3 per year “full autopilot hardware ready” and even up to 1,000,000 of Model Y per year without making autopilot the main selling point. 





All Teslas are the best cars in their categories which just happen to be electric. On the other hand, any constraints in Tesla’s ability to gear up production of Model 3 and launch Model Y will define the Tesla’s future now. Wall Street still matters, whether Elon Musk likes it or not, if Tesla would like to have access to the capital in the long run. To avoid the bullying from banksters Elon Musk has to make up for his promises with Tesla Model 3 production numbers first. More deliveries mean positive cash flow and launch Tesla Model Y will be possible, which will eat the market share of the most lucrative sector for the ICE Age automakers.





Now let’s stop for a moment and look at the main chocking points and bottlenecks in the Tesla’s supply chain which brings the main strategic risks for this vision for our Energy Security future in the West. My strong belief is that it will not be the ability to develop the best autopilot or any other part of EV technology (arguably Tesla has already the best technology and in the worst case here new tech solutions can be bought). The main chocking point for Tesla will be the Security of Lithium Supply. 






Update: China's Tianqi Lithium to buy 24% SQM stake from Nutrien at USD4.1 Billion dollars at 22% premium to the market price.

"China's Tianqi Lithium to buy a quarter of Chile's SQM for $4.1 billion (Reuters) - China’s Tianqi Lithium Corp (002466.SZ) said on Thursday it will buy nearly a quarter of Chilean lithium producer SQM SQMa.SN for $4.1 billion, gaining it coveted access to a key ingredient in rechargeable batteries that power mobile phones and electric cars. 
The sale, however, still faces scrutiny by an anti-trust regulator in Chile as it would leave Tianqi just shy of a controlling stake in SQM, the world’s second-largest lithium producer, and likely entitle the company to appoint three seats on its board.  
Tianqi, which is already building a major lithium processor in Western Australia, said it will buy 62.5 million SQM A shares for $65 each from Canada-based fertilizer company Nutrien Ltd (NTR.TO)."




LEGAL DISCLAIMER

Please read legal disclaimer. There is no investment advice on this blog. Always consult a qualified financial adviser before any investment decisions. DYOR.

Elon Musk loves to go down to the level of physics with every problem. This is it - Lithium is the element all Tesla Energy rEVolution is based upon. Disruption of $12 Trillion markets of Energy and Transportation is based on $3 Billon Lithium market by sales in 2017. 






"Lacking any clear government strategy to support the transition to the Post Carbon Economy in the West apart from very brave experiments with "Clean Coal" in the US and "Clean DIEsel" in Europe, companies like Tesla have to compete for crucial supply chains for materials for the Next Industrial rEVolution with the state-level military machine "Made in China". China is already the largest market for EVs and the prize will be the total domination in this sector on the global scale."






"We can have very good partners, but we cannot rely upon that totally different social system will be always there for us to supply the critical material for the West. When last time have you read Karl Marx manifesto? Trade Wars have been started already."




This is why this deal is so significant for Elon Musk and for Tesla first of all. It is the most important first real step for Tesla to secure its lithium supply, but it is very small: Tesla will have 5,000 Lithium Hydroxide LCE per year offtake. Next brilliant move for Elon Musk can be to buy the stake in SQM. Chinese Tianqi is rumored being closing on this deal again, but it can change all geopolitical balance of power in the Post Carbon World after the ICE Oil Age if Elon Musk can pull it off. Some people are already concerned with growing power of China to control lithium market and Chile was even considering to block Tianqi deal to buy SQM stake.







Elon Musk move to buy SQM stake can address all these concerns in Chile and Tesla will get its own vertically integrated ecosystem with secure lithium supply which is already in production in Chile from brine in Atacama desert and now allowed to grow further, plus upcoming diversification with Kidman Resources JV in Australia in hard rock mining where SQM has 50% stake in the project and Lithium Americas brine development in Argentina where SQM has 50% stake in the JV project as well. 







Effectively Tesla can cut so-called Chinese Lithium Converters - middlemen like Ganfeng Lithium and Tianqi and secure its own strategic supply of lithium. Then Elon Musk's dream about raw materials coming into Tesla Gigafactories and Tesla Electric Cars coming out will be very close to materialization on the literally global scale.








Ganfeng and Tianqi will be fine as well. We have to produce 100 million tonnes of Lithium LCE by 2050 just to electrify our transportation and all energy storage will be on top of it, there is enough place for everybody: our starting point is 220,000 T of Lithium LCE produced in 2017.





But only strong soft power of peace can withstand the kiss of the Dragon. We are talking here about the geopolitical map of the post ICE Age world when Oil power will be greatly diminished and trillions in stranded assets will the price to be paid for the years of the bloody domination by the West in the 20th century. We still can make it and Elon Musk can lead the way as usual.





Tuesday, 15 May 2018

Tesla Energy rEVolution: China’s Lithium Supply Chain Strategy: Solidify, Diversify And Control.



"New Energy Plan developed by China over this decade is taking the most important chocking points in the supply chains in the world over step by step with the military discipline."


Lithium Race To The Total EV Market Domination Is ON: Elon Musk Confirms Next Tesla Gigafactory Will Be In China.


"Lacking any clear government strategy to support the transition to the Post Carbon Economy in the West apart from very brave experiments with "Clean Coal" in the US and "Clean DIEsel" in Europe, companies like Tesla have to compete for crucial supply chains for materials for the Next Industrial rEVolution with the state-level military machine "Made in China". China is already the largest market for EVs and the prize will be the total domination in this sector on the global scale."




Introducing GEM Royalty Co. - The Green Energy Metals Royalty Company TNR Gold Corp.



LEGAL DISCLAIMER

Please read legal disclaimer. There is no investment advice on this blog. Always consult a qualified financial adviser before any investment decisions. DYOR.

Tesla Energy rEVolution: TNR Gold CEO On The Beginning Of A Megatrend Led By Electric Cars




Tesla Energy rEVolution Chronicles: Lithium Wars And Hostile M&A - Hunting Season Is On.



"You know my bold statements related to the Energy rEVolution, The End of The ICE Age and OIL Dominance. You know my demands to Ban DIEsel. My focus was always to build Secure Lithium Supply for the West."



Verisk Maplecroft:

China’s Lithium Supply Chain Strategy: Solidify, Diversify and Control.

"China has a blueprint to steer the world’s largest auto market away from combustion engines towards a battery-powered future, but it will only succeed if it can secure a reliable supply of the minerals and metals necessary for the production of lithium-ion batteries. Lithium is unsurprisingly a priority on this front. Indeed, the wheels will fall off Beijing’s strategic play to transition towards electric vehicles (EVs) unless China can meet its soaring demand for ‘white petroleum’ amid a global rush.
There are several factors underpinning China’s EV plan. Above all, Beijing sees it as a means to reduce its dependence on oil imports, tackle chronic air pollution, meet its Paris climate targets and create a poster child for the ‘Made in China 2025’ initiative to upgrade the manufacturing sector.
For China to bolster its supply of lithium, we believe that Beijing will likely pursue three strategic objectives in 2018 (and beyond) – namely, to develop its domestic lithium resources, diversify its lithium imports, and increase its influence over the global lithium value chain. The progress China makes towards furthering these goals will go a long way to determining to what extent it can meet its EV ambitions.
Objective 1: Develop domestic lithium resources
China is heavily dependent on imports to satisfy its lithium raw material requirements, so developing its domestic resources is a pressing matter. The country is already the world’s largest consumer of lithium compounds, and domestic demand is set to skyrocket over the coming decades as China switches to EVs. The government wants to see 2 million EVs sold annually by 2020, would like EVs to account for a fifth of new vehicles sales by 2025 and is working on a timetable to phase out traditional vehicles altogether.
The pressure to improve self-sufficiency in supplies of lithium mineral resources (and in other minerals and metals essential in the production of batteries) mirrors the pressure the country faces to reduce its reliance on energy imports. In our Energy Security Index in 2018-Q1, China is the worst-performing country globally in terms of the energy self-sufficiency indicator, as it must import around half its energy needs. 
In terms of the scope to expand its domestic lithium output, according to the US Geological Survey China is home to the world’s fourth largest lithium resources and second largest reserves. Yet the Middle Kingdom currently accounts for only around 6% of global mine production, placing it far behind heavyweights such as Australia (41%), Chile (34%) and Argentina (16%). Large-scale domestic extraction has yet to take off because both brine- and rock-derived lithium present problems for producers: the quality of China’s brine deposits is generally lower than that of the deposits found in the ‘Lithium Triangle’ of South America, while the high-altitude terrain that is home to most of the country’s hard-rock deposits is difficult to mine (see figure below).
Despite the challenges associated with large-scale, commercially viable exploitation, China’s lithium mining industry will no doubt receive extensive state-backed investment and policy support this year, and in the future, as Beijing seeks to reduce its external dependency. Indeed, the outlook for domestic brine production in particular looks promising; state-owned China Minmetals announced in September 2017 that it has successfully extracted its first batch of lithium carbonate from a salt lake in Qinghai province for example.
Importing lithium raw materials is likely to remain cheaper than domestic extraction in the coming years, and will thus remain part of Beijing’s long-term industrial strategy. But given the strategic imperative of reducing its import dependency on a commodity so critical to EV expansion, we predict an uptick in China’s domestic lithium production over 2018 and beyond.
China has large lithium reserves but reaping the full benefit may prove challenging

Source: China Battery Net, 2017; China Industry Information Portal, 2017; Verisk Maplecroft, 2018
Objective 2: Diversify lithium imports
So even factoring in an increase in domestic production, China is set to remain highly dependent on foreign lithium raw materials for the foreseeable future. The government will therefore do what it can to ensure that the country’s import profile remains as secure as possible. China imports the bulk of its upstream lithium supply from the big three producers: Chile, Argentina and Australia (see map below). This geographically concentrated import model exposes China to supply disruptions in the event of, say, a political crisis, export ban or natural disaster in one of these countries.
To reduce its reliance on just a handful of suppliers, Beijing will need to diversify the source of its lithium imports: replicating a model it has successfully adopted in the hydrocarbon sector. Chinese firms are therefore likely to receive official encouragement to sign offtake agreements and strategic partnerships with companies from mid-tier and emerging production hubs – such as Zimbabwe, Brazil, Bolivia and Canada – in order to create a more diversified import model.
China’s lithium import model exposes it to potential supply disruption

Source: US Geological Survey, 2017; Verisk Maplecroft, 2018
Objective 3: Increase influence over the global lithium value chain
We expect 2018 to be another busy year in terms of Chinese firms investing overseas in mineral exploration, ore mining, brine operations and processing facilities as a means to spur additional production and lock in lithium supplies (see timeline below) – a trend driven by the commercial objectives of private companies as well as by Beijing’s strategic thinking.
Global lithium demand is expected to increase four-fold by 2025 and Beijing is wary of relying purely on market forces to meet its own rapidly increasing domestic needs. The Chinese government will therefore provide extensive, if at times unofficial, backing for a global investment spree in the form of cheap credit and diplomatic support to the country’s private and state-owned firms.
A dominant role for Chinese companies across the global value chain would secure preferential access to lithium resources for China’s domestic manufacturers and increase their influence over pricing, particularly in the event of any future supply crunch. Considerable state support for Chinese firms investing in lithium mining assets and processing facilities overseas is more than likely: this will increasingly reach not just traditional lithium producers, such as Tianqi Lithium and Ganfeng Lithium, but beyond to include lithium-ion battery and EV manufacturers, including the likes of CATL, BYD and Great Wall Motors.
China aims to increase influence over global lithium value chain

Source: Verisk Maplecroft, 2018
Beijing will cajole firms to meet EV ambitions
The government has made it crystal clear that transitioning towards EVs is a national priority and that it will wield significant policy levers to ensure that China gets ahead of the game in the global scramble for lithium resources. China is not a market economy where trade and investment decisions are made purely on commercial grounds. Rather, the Chinese Communist Party holds considerable powers of ‘persuasion’ (both carrot and stick) over its domestic firms, and increasingly expects both state-owned and private companies to serve the national interest.
Verisk Maplecroft therefore predicts that in 2018 Beijing will press ahead with its three-pronged strategy, which will start to bear fruit in terms of improving the security of the country’s lithium supplies and ensuring that China has the necessary resources to power its battery revolution. After all, a failure to do so would risk the whole endeavour running out of juice.

Wednesday, 9 May 2018

InvestorIntel: TNR Gold Fine Tuning Royalty Model For Green Energy Metals.



LEGAL DISCLAIMER

Please read legal disclaimer. There is no investment advice on this blog. Always consult a qualified financial adviser before any investment decisions. DYOR.

Tesla Energy rEVolution: TNR Gold CEO On The Beginning Of A Megatrend Led By Electric Cars.





LEGAL DISCLAIMER

Please read legal disclaimer. There is no investment advice on this blog. Always consult a qualified financial adviser before any investment decisions. DYOR.

Introducing GEM Royalty Co. - The Green Energy Metals Royalty Company TNR Gold Corp.



LEGAL DISCLAIMER

Please read legal disclaimer. There is no investment advice on this blog. Always consult a qualified financial adviser before any investment decisions. DYOR.


InvestorIntel:

TNR Gold Fine Tuning Royalty Model For Green Energy Metals.






 | MAY 08, 2018 |


Renowned mining investor Frank Holmes has spoken out about his fondness of mining royalty companies.
In terms of value proposition, they outperform mining equities and serve the important role of connecting exploration plays with financiers during lean bear markets, he says.
Kirill Klip, CEO and President of TNR Gold Corp. (TSXV: TNR), fell into this business model when he bought shares in gold mining royalty company Royal Gold for about $5 each, back when gold traded at $300 an ounce (it hasn’t traded in the $300s since 2003). He cashed out of that investment at over $70 a share and has been hooked on the royalty model ever since, where royalty proceeds funnel into new opportunities, he told InvestorIntel.
Klip says his version of a royalty company is slanted towards metals with high exposure to usage in electrical vehicles – lithium, copper, and even gold. His most mature investment to date is a position in International Lithium Corp. (TSXV: ILC), in which TNR holds a 14.1% equity interest after convertible debentures and warrants are exercised and a 1.8% net smelter royalty (NSR) on the Mariana brine project in Argentina. The key to this project is the involvement of joint venture partner Ganfeng Lithium Co., one of China’s largest processors of the material.
But the investment that could return really big bucks is another NSR that TNR holds in the Los Azules copper project in Argentina, currently being developed by former Goldcorp founder Rob McEwen. TNR holds a 0.36% NSR royalty on the project, which could return $35 billion over a 35-year mine life. A looming copper crunch as the market could move into structural deficit by 2020 means that major mining companies are hungry to pounce on attractive projects being developed by juniors. A preliminary economic assessment shows that Los Azules could deliver 415 million pounds (188,241 metric tons) of copper production a year for the first ten years of mine life with cash costs of $1.11 a pound, according to TNR.
“Investors are putting a larger discount on our cash flow because people do not expect that McEwen Mining will put this project into production,” Klip said. “All majors are looking for a good copper project and there is more and more interest.”
Despite higher prices, other externalities have evolved in favor Los Azules. Investors have returned to Argentina thanks to the reformist policies of Mauricio Macri, who was elected president in 2015 following a decade of rule by protectionist policies by Cristina Fernandez and her predecessor and husband, Nestor Kirchner. Macri’s government fared well during key mid-term elections last October, providing investors with greater optimism that he will be elected to a second term next year. The Argentine government recently signed a bilateral agreement with Chile, a key milestone for Los Azules which straddles the border of both countries.
The third major component in TNR’s portfolio is the Shotgun gold project, located close to NovaGold and Barrick Gold’s Donlin project in Alaska. Early resource numbers suggest the project holds 20.7 million tons of ore with an average gold grade of 1.06 grams a ton, with a 0.5 g/t cut-off grade. Barrick and NovaGold’s project obtained a key environmental approval from the U.S. Army Corps of Engineers in April, indicating the government of Donald Trump is more amenable to mining in Alaska. Once again, external factors are moving in TNR Gold’s favor.
Klip’s next step with Shotgun is to find an exploration partner of the same caliber as McEwen. One of TNR’s board members, Greg Johnson, founded NovaGold and was instrumental in the discovery of Donlin. He is entrusted with the task of finding that partner, Klip said. Don’t bet against TNR repeating the success it has had so far in ILC and Los Azules."

Please Note that TNR Gold Qualified Person - as it is defined by NI 43-101, was NOT able to Verify and Confirm Any Provided Information by The Third Parties in the Articles, News Releases or on the Links embedded in this post; you must NOT rely in any sense on any of this information in order to make any Resource or Value Calculation, or attribute any particular Value or Price Target to any Discussed Securities.






GEM Royalty Co.: TNR Gold Shotgun Gold - Barrick, NovaGold Project In Alaska Gets Key Environmental Approval.


LEGAL DISCLAIMER

Please read legal disclaimer. There is no investment advice on this blog. Always consult a qualified financial adviser before any investment decisions. DYOR.