European Metals Share Discussion Threads

[sambuca] 08/9/2017 20:05

And another from 3rd August 2017

German executives are preparing to announce a new home for a lithium-ion battery plant designed to rival the output at Tesla Inc.’s Gigafactory.

Terra E Holding GmbH will choose one of five candidate sites in Germany or a neighboring country next month to build its 34 gigawatt-hour battery factory, Frankfurt-based Chief Executive Officer Holger Gritzka said in an interview. The former ThyssenKrupp AG manager has helped to assemble a consortium of 17 German companies and won government support for the project, which will break ground in the fourth quarter of 2019 and reach full capacity in 2028, he said.


The battery factory is the latest sign that German industry, the motor behind the world’s fourth-biggest economy, is gearing up for a new stage in the energy revolution. Lithium-ion batteries can help stabilize intermittent flows of wind and solar power on electricity networks. They’re also projected to power millions of plug-in cars expected to roll off German production lines beginning early next decade.


“We have to be better in process technology than competitors, a constant step ahead,” said Gritzka, who emphasized that Terra E will be counting on Germany’s competitive edge in manufacturing robotics and automated production to make money.

Global battery-making capacity is set to more than double by 2021, reaching 278 gigawatt-hours, up from about 103 gigawatt-hours in the second quarter, according to Bloomberg New Energy Finance. Asia electronics makers including South Korea’s LG Ltd. and Samsung SDI Co. currently control the market. Tesla will become the world’s No. 2 battery maker once it finishes building its $5 billion, 35 gigawatt-hour Gigafactory in Nevada, according to the London-based researcher.

Sam

[sambuca] 08/9/2017 20:02

Another article I have just found dates back to the 22nd May2017.

Daimler is among one of the few major automakers with aggressive all-electric vehicle plans. The German automaker recently announced acceleration of electric car plans by 3 years and that they will spend $11 billion on 10 models by 2022.

They are backing this up with a new battery factory, which they officially unveiled today.


The German automaker produces its own battery packs through its ACCUmotive subsidiary and last year, they announced an important €500 million investment in a new battery factory in Kamenz,

Kamenz is 115km from Cinovec.

Sam

[sambuca] 08/9/2017 19:42

Jaknife
You make a case for De Beers not controlling the price of diamonds but nothing about OPEC. This excerpt clearly states what the big lithium producing countries are doing.

A Chilean professor also finessed a problem I outlined last week. The demand for lithium for the batteries of electric cars will have to rise to 400,000 tonnes per annum by 2025. That represents a compound growth from the current level of about 20 percent per year. It is doubtful whether this is feasible. About half of all lithium extraction takes place in South America (Argentina, Bolivia and Chile) where governments have been very protective of their reserves and have imposed restrictive extraction policies.

To read the full article go to
hxxps://masterinvestor.co.uk/equities/future-motor-car/?utm_source=Daily+Bulletin&utm_campaign=0dee95c6c8-Daily_Bulletin_20170908&utm_medium=email&utm_term=0_25eff0bb7f-0dee95c6c8-34899473

It wont act as a link but just copy and paste it into the search bar.

Sam

[cyfalafwr] 08/9/2017 10:32

I did sell some at 80p but not enough ,hindsight is wonderful thing specially on aim.
Surely they wont go any lower with all the car manufactures pushing EV's.
I know we need significant investment to get the stuff from the ground to the manufacturers but I thought that the location was a big plus.

[runthejoules] 08/9/2017 09:14

Over on lse they reckon it's some old options at about AUS 0.68 = 43p come onto the market and been instantly flipped. And/or possibly Cadence selling out at a distressed rate. Let's hope Directors jump in. I really wish I'd sold down ages ago and if I had any money left would be in here. Can't believe the ride I've had with these from 35p, seemed a safe bet, took a bit off at the top, and traded a bit going down, but no idea this was going to go so low and nominally 27% down. No idea how that happened. Is 43p the lowest the placement shares can go? Have opened a small spreadbet hoping that the company are restricting news until they've got rid of weak holders/quick flippers. Cos I ain't got no spare cash! Cannot believe what's happened to such a prime resource in such a prime location with every macro wind behind it. But then serves me right for hoping rather than thinking. There's always something - a placing, options, in the wind with resource stocks so best take a good profit while you can. But Good luck all lths for the recovery which must come.

[cyfalafwr] 08/9/2017 08:34

WTF 6 months low

[sambuca] 03/9/2017 13:22

Jak
It may be illegal but can you tell me the difference between that and DE Beers controlling the amount of diamonds in circulation to control the price and OPEC limiting the production of oil.

Sam

[sambuca] 02/9/2017 20:39

Interesting read.


By Keith Kohl
Written Friday, September 1, 2017

Things are going to get ugly.
Last year, Elon Musk told us that lithium was just like the “salt on the salad.”
At the time, he insisted that his metaphor was due to the fact that lithium only accounted for 2% of the total volume of his lithium-ion batteries.
He even chuckled a little after quipping, “Our cells should be called nickel-graphite...”
As usual, the media ate it up... hook, line, and sinker.
Look, Musk isn’t stupid. Not only did he know exactly what he was saying at the time, but his metaphor was carefully crafted.
Why on Earth would a man as powerful as Elon Musk need to be cautious?
Simple.
He’s protecting himself.
Dig a little deeper, dear reader, and you’ll see that Musk was trying to divert attention away from lithium so that the sharks didn’t smell blood in Tesla’s water.
Too late for that, because the real lithium war is about to erupt...



The Lithium Profiteer
Look, it should be clear today that Musk was trying to downplay the importance of lithium.
That’s understandable, isn’t it?
After all, lithium isn’t traded like your typical commodity. You can’t buy contracts for lithium delivery like you can crude oil.
Instead, a small group of three elite lithium producers (who control 85% of global supply!) set their own price.
You read that right.
These “Big Three” lithium companies get together and decide what they’re going to charge Musk (and everyone else, for that matter) for his lithium supply.
And as if Tesla shareholders didn’t have enough concerns to deal with, the lithium war is threatening to dry up future supply.
Remember, last year Musk told us flat out that his company would need to absorb the world’s current lithium-ion production in order to produce half a million cars every year.
The problem is that he’s got quite a bit of competition to deal with…
In 2018, for example, China will require that electric vehicles and hybrids account for 8% of total car sales.
India has even more aggressive goals in mind...
By 2030, India hopes to have an all-electric fleet of cars.
I’ve told my readers time and again that lithium prices have nowhere to go but higher.
And yet, Musk’s battle isn’t necessarily against China or India.
It’s against his own kind... other billionaires.



Lithium Showdown: Billionaire vs. Billionaire
It turns out Elon Musk isn’t the only one with a mind to the future.
Back in 2008, another billionaire investor made a quiet move that turned out to be a profit windfall for him.
At the time, Warren Buffett’s Berkshire Hathaway snagged a 10% stake in BYD.
Shares surged at the time, but I don’t believe the market truly understood Buffett’s end game.
They do now.
But the dirty little secret to this lithium war is that there’s really only one winner.
And it’s not Elon Musk.
It won’t even be Warren Buffett, nor will the other billionaires (including Virgin’s own Richard Branson) come out on top when all is said and done.
It will be investors like you.
You see, these industry and investing magnates are actually playing this game handcuffed by the investments they can make in the sector.
And every new Gigafactory grand opening we see from here on out means things will get that much tighter for lithium supply.
Tesla, after all, is just one name on a very long list of companies desperately scrambling to secure the lithium they require.
In the next few weeks, we’re going to travel the world over and see where these billionaires will turn for help.
More importantly, I’m going to show you the lithium stocks that will take full advantage of this billionaire showdown.
Until next time,

Keith Kohl
@KeithKohl1 on Twitter
A true insider in the energy markets, Keith is one of few financial reporters to have visited the Alberta oil sands. His research has helped thousands of investors capitalize from the rapidly changing face of energy. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital as well as Investment Director of Angel Publishing's Energy Investor. For years, Keith has been providing in-depth coverage of the Bakken, the Haynesville Shale, and the Marcellus natural gas formations — all ahead of the mainstream media. For more on Keith, go to his editor's page.

Sam

[fqr714bhp] 01/9/2017 12:48

What is it with the 1 and 2 trades?
Signals of some sort?
I wish they would get a move on with the off take contract(s)?

[cyfalafwr] 24/8/2017 10:56

runthejoules



You are forgetting this is AIM...lol

[runthejoules] 24/8/2017 10:47

Strange that the BCN update has brought their price down and seemingly EMH up!

[myst1] 24/8/2017 09:09

Statement included in the RNS from BCN today:

'The pricing environment for lithium carbonate has continued to strengthen with Seeking Alpha indicating April 2017 lithium carbonate contract prices in the order of US$14-15,500/t'

Note, in their PFS, EMH only allowed for 10,000/t so there should be a 50% uplift in the lithium price compared to the PFS - and we can all see where the lithium price is heading:

Page 19 figure 11 (sensitivity graph) of the PFS shows that only a 25% increase to the lithium price used in the PFS will double the NPV!

PFS below:

[sambuca] 23/8/2017 19:21

This is the interview I could not get the link to work for the other day.



Sam

[dozey3] 22/8/2017 15:52

Interesting article. Says CRU group follows four producers all in China and ..."Another 10 projects representing 400,000 tons are rated “probable̶1; -- in Canada, Chile, China, Mexico, Argentina and Australia. " Europe doesn't merit a mention at all. Also says that the brine pond producer in Northern Argentina undershot initial targets by circa 20%, suggesting this cheapest method is perhaps not as straightforward as predicted.
Where EMH stands relative to this is unclear in the current deafening silence. But I'll continue to hold my small slice.

[telbap] 22/8/2017 08:16

All great news long term, however, when will this company actually bite the bullet and come to market with a plan and cost so we can all either leave the table or invest further. Considering how hot this sector is becoming (EV market) I fail to see why they are taking it so slow.

[sambuca] 21/8/2017 18:09

Another interview with KC interesting what he says about the tin and tungsten.
Sorry cant post the link, but he is basically saying that the tin and tungsten deposits are looking very good at shallow depths which is very good for securing funding and funding further mining.

Sam

[myst1] 16/8/2017 22:05

As I explained earlier. Also confirmation of off takers waiting.

[myst1] 16/8/2017 07:26

The most telling news in this RNS is the employment of the experienced PM for the DFS which is already underway. IMO the costs associated with this would not be expended if current discussions with potential partners and off takers were not going to plan!

The infill drilling results are just as expected and part of the current expansion study to improve the overall economics reported in the PFS! To bring down production costs and increase the IRR!

'Gaps that could be potentially mined in the initial years. This will provide additional options for optimizing production and development schedule. I am particularly pleased with the strong tin and tungsten credits in this part of the Cinovec South deposit.'

As I've stated previously. Keith said after the PFS that one of the first things we will do is an expansion study, that is look at the economics of increasing the size of the whole operation. This infill drilling in the south is part of that expansion study. Due to the higher tin credits in the south, the production costs will be more in line with the scoping study and the overall project economics will be improved.

Five more infill drill results to follow very soon (4 of them have already been drilled and the last one underway) and then the expansion study to upgrade the PFS. The DFS has started and Partners / off takers in discussions/ watching.

Everything is going to plan!