European Metals Share Discussion Threads

[luisfrg] 28/2/2017 08:54

Disappointing start but lots of buys should push this back up to early 70s

[steeplejack] 28/2/2017 07:30

Rocky ride on ASX left the stock around 64 equivalent

[banshee] 26/2/2017 22:00

'He ensured the Golf-hungry crowd that "Volkswagen's Euro 6 diesels are cleaner than most from rival manufacturers,"'

Well at least he didn't insure them.

[sambuca] 26/2/2017 21:04

Apologies Petersinthemarket.
This is a follow on from the piece I found and lost about a bettery cell factory at Salzgitter. It is not the piece I originally found and dates back to the 10/11/2016.

hxxp://www.roadandtrack.com/new-cars/car-technology/news/a31518/volkswagen-battery-factory-germany/

Sam

[wrtmf] 25/2/2017 10:55

'Car buyers should have 'long, hard think' about diesel'

[banshee] 24/2/2017 13:10

From today's FT



extract

"Suppliers to Tesla and other electric carmakers are scrambling to secure shipments of the key battery material cobalt after a group of hedge funds amassed a large stockpile of the scarce metal.

In a bold wager on higher prices, half a dozen funds, including Swiss-based Pala Investments and China’s Shanghai Chaos, have purchased and stored an estimated 6,000 tonnes of cobalt, worth as much as $280m, according to the investors, traders and analysts.

The stockpile is equivalent to 17 per cent of last year’s global production of the metal.

Increasing use of batteries containing chemical forms of the metal by Chinese electric carmakers, alongside ambitious plans by the likes of Elon Musk’s Tesla, have created a fertile backdrop for speculators hoping to profit from swelling appetite for cobalt, which boosts the power of lithium-ion batteries.

They are betting that demand for electric vehicles will exceed market expectations and push the up the price of cobalt as battery makers such as Panasonic, which makes battery cells for Tesla, rush to lock-up supplies of the material.

Global demand is already expected to outstrip supply this year by 900 tonnes,
"

[aim_trader] 24/2/2017 11:19

European Metals CEO Keith Coughlan will be presenting to investors on the evening of 9th March at the Proactive One2One Forum in Mayfair, London. For details and registration, please click here:

[dvsfm] 24/2/2017 09:14

Yes I'm of the opinion we won't make it to production either one of the big boys would step in to take control of the resource.

[bookwormrobert] 24/2/2017 09:09

It was 1.15 AUS$ = 71p overnight in Oz. Frankly, I expect the share price to settle around here until news. There should be RNSs about metallurgy and potential off-take deals in the next few weeks, followed by the Preliminary Feasibility Study at the end of March. My bet is still that EMH gets taken out by a bigger company in the next two to three months.

[runthejoules] 24/2/2017 08:59

Thanks very much all for the info - disappointing share price move today & I don't blame anyone for taking profits (I would have if I'd been smarter) but have been waiting for the next results to take us over 80 & maybe get us sold. GLA!

[petersinthemarket] 24/2/2017 08:11

My remark not aimed at you sam - at Frisby.

[sambuca] 24/2/2017 07:36

Petersithemarket
It is not the groans of someone who fears he has missed the boat if you check my first posting on this bb was on 17/1/16.
The article warns that lithium is the new bubble, how many of the multi million pound dot com companies are still going?
I think EMH is is a sound investment which is why I am still invested here, taken profits yes, reduced my exposure yes but still invested.

Sam

[bookwormrobert] 24/2/2017 07:11

1.15 Aus $ overnight = 71 p.

Re: hydrogen fuels cells above - if you believe in them (I'm not sure that I do) remember that the average fuel cell contains about ten times as much platinum as a catalytic converter, and catalytic converters account for 40% of world platinum use. So you could play hydrogen fuel cells by investing in platinum miners.

[banshee] 24/2/2017 00:14

Worth posting this again as it contains some interesting info, even though EMH may have moved away from this particular tech from memory, this was what kick started the project.

[banshee] 23/2/2017 20:37

Re Hydrogen one obvious one



Not listed yet but probably coming soon

Nice looking trucks, but i wouldn't invest personally :)

[runthejoules] 23/2/2017 20:25

I do think lithium demand is not going to be quite as big in autos as people think, due to it existing alongside hydrogen (anyone got any tips on hydrogen plays other Than Shell?) bigger in home energy storage. Like an idiot, I've been caught in Kod's knife-fall & have reduced my holdings in bcn. Moneyweek also told people to avoid the london property market from 2011 onwards, I believe.

[banshee] 23/2/2017 20:08

Yes, I saw that article yesterday and was tempted to post it myself, and there have been a few similar. There will be a crash in lithium at some point - no argument there, but Moneyweek spent years telling people to buy Japan for example when it was in the doldrums, and after about five years the Nikkei obliged, fine if you had the patience.

IE It's all about timing, as the shorters who came in here at 32p discovered. I don't think there will be a problem with Lithium in the next year or two.

[petersinthemarket] 23/2/2017 20:08

Sounds like the groans of someone who fears he just missed the boat!

[melody9999] 23/2/2017 20:07

"If you’re in lithium, have an exit plan. If not, look for the next big thing"

So here is the exit plan.... look out for a commodity that will replace lithium as the key componment for mobile, electric vehicle and larger storage applications.

Until you find it, then nothing has changed so you should do nothing.

[ahbroad] 23/2/2017 19:35

Except in the case of lithium, its demand really is booming.

not very well argued

[sambuca] 23/2/2017 19:24

A word of caution make of it what you want from Dominic Frisby.

Warning: don’t touch lithium with a ten-foot bargepole
From Dominic Frisby, across the river from the City

Today’s Money Morning comes with a stark wealth warning.

Avoid lithium.

It could seriously damage your wealth.

Here’s why.

Lithium stocks have gone crazy

This story starts, like many a splendid afternoon, with a good lunch. I’d been invited to hear a lithium company present.

When I say “lithium company”, I mean a company that is developing lithium assets with a view to eventually producing lithium. (Most of the world’s lithium is extracted from brine through evaporation and electrolysis, while some is produced by crushing, roasting and leaching rock – spodumene rock, to be precise.)

The company is looking to raise some money. I took a look at the chart.

In early 2016 it was 6c. By September it had hit $2.50.

OMG.

I then had a potter through the charts of some other lithium explorers and developers. Pennies have become dimes. Dimes have become dollars. There are five and ten-baggers all over the shop.

The price of lithium carbonate and lithium hydroxide (you can’t sell pure lithium as it has a tendency to explode) has, meanwhile, more or less tripled.

Goodness me, I’ve missed out here. Quick! Jump in?

Not so fast.

I get the lithium story. It’s the fuel of the cleantech revolution.

Fifteen years ago its main uses were in ceramics and glass, lubricants, and aluminium and rubber production. Battery technology accounted for just 5% of the 70,000 tonnes of annual demand. Now battery technology accounts for 40% and annual demand is 163,000 tonnes.

According to Deutsche Bank, the market is set to triple by 2025 to 534,000 tonnes. Lithium demand for electric cars, e-bikes, and energy storage is going to rise rapidly. Energy storage and electric vehicles are the big drivers. One electric car alone requires 63kg of lithium. Where’s all the supply going to come from?

Cue a massive rush into lithium exploration and development stocks.

One microcap gold explorer I follow had been going nowhere for years. Suddenly it doubled. And it kept on going on up. How come? Then I found out it’s now a lithium play. And it’s not stopped going up.

I’m getting a sense of deja vu

We’ve been here before, folks.

Every few years a commodity comes along which is going to save the world in some way. Demand is going to balloon and there’s no supply, because people have been ignoring it for so long.

I’ve seen it happen in uranium, in silver, in palladium, in rhodium, in rare earth metals, in potash, in graphite. It even happened in lithium a few years back (so much so that I totally underestimated how high this particular rocket could go).

There is a mad rush to acquire exploration assets in that particular commodity. Last year’s rare earth metals company rebrands itself as this year’s graphite company.

Strategic Total Focus Uranium (STFU) is suddenly Outreach Max Graphite (OMG). The suspiciously white-toothed CEO regurgitates a load of spiel about this new critical commodity, investors pile in blindly and the CEO then goes prospecting on his yacht off the coast of Guadeloupe.

And the thing is, if you get in early – and you get out – you can make a shedload of money. But if you don’t get out, you get crucified. It’s greater fool theory on steroids.

Who remembers uranium?

That was probably the biggest bubble of the lot.

For years – decades – uranium did nothing and went nowhere. Then in the early 2000s the oil price started rising and rising. It was getting rather expensive. Alternatives were going to be required. Then there was the rise of China. It was investing heavily in nuclear power stations.

The uranium price started moving up. Then the Peak Oil narrative took over. The world is running out of oil. “Nuclear power is the only thing that is going to save us!”

Prominent newsletter writers as well as the media all jumped on to the story. And everyone believed it. They always do with bubbles. They believe it because there’s a lot of truth to it – just as there’s a lot of truth to everything you read about lithium now.

In June 2007 uranium peaked. The price of uranium itself had gone from about $6 per pound to more than $150. There were hundreds – I mean hundreds – of uranium exploration companies. No more than a dozen had assets with a reasonable chance of becoming producing mines.

One company I followed – Laramide Resources (LAM.TO) – was (and remains) a legit uranium exploration and development play, with two or three genuine properties. Its stock went from one cent – yes, C$0.01 in 2002 – to C$16.70 by spring 2007. It went up by even more than bitcoin.

Then it came down again.

In 2016, with the assets now further developed than they were in 2007, it touched C$0.14.

The same thing is going to happen to lithium.

If you’re in lithium, have an exit plan. If not, look for the next big thing

I don’t know if we’ve already seen the peak, or if there is going to be another surge up. Nobody knows. But I can tell you with utter surety that the bottom is going to fall out of the lithium market.

It’s a bubble – same as uranium, rare earth, rhodium and graphite all were. Like all bubbles, there is an utterly compelling story at the heart of it.

If you’re in, lucky you, clever you, well done you. I wish I was, and I’m cross with myself for missing out. A bubble is a bull market in which you don’t have a position, I often say. I’ve missed it. More fool me.

But at least I can see this for what it is.

You should now have your exit strategy clearly mapped out – and you should certainly have taken your original stake and some profit off the table.

If you’re not in, you should stay away.

You want to make megabucks? Work out what the next go-to commodity is going to be, the next commodity to save the world. Cobalt, maybe? Phosphate? Titanium?

Any ideas, please post them in the comments section on the website. I’d be glad to hear them.

Until next time,

Dominic Frisby
MoneyWeek

Sam

[banshee] 23/2/2017 13:34

I reckon the BCN involvement was dreamt up by REM BCN and EMH between them when the price of EMH was in the low thirties, in which case it would have boosted EMH - by the time the paperwork was done and the price of EMH had moved on to 80p though, it was more of a nuisance than a benefit.

[runthejoules] 23/2/2017 09:03

SPread up to 3p on HL. Had hoped TESLA news would boost this more...