European Metals Share Discussion Threads

[steeplejack] 23/2/2018 12:14

The Geomet of Australian miners asks the Ministry of the Environment for a prior consent to lithium mining on the last part of the Cínovci deposit. If it obtains it, it will only be entitled to future mining permits throughout the territory. The Prime Minister Andrei Babis' government from YES and other parliamentary parties want the Diamo state company to take the place of the Lithuanian tin deposit in the future instead of the Australian company. The state will have to say what to do next."The Cínovec IV mining area is designed on the northwest Cínovec deposit. The Ministry is now starting administrative proceedings with the company. The result can not be anticipated or expressed at the moment, "confirmed for Radiožurnál the reception of a new request concerning the last section of the whole large deposit ?ínovec spokesperson of the Ministry of the Environment Petra Roubí?ková.Next step to getting lithium. The Australian company is requesting a preliminary consent to mining on Cínovci. The details were found by Jan KlímováIn the administrative procedure, it will be considered whether the company fulfills the legal conditions."It is a matter of compliance with the raw materials policy of the state, which is in the competence of the Ministry of Industry, with which the Ministry of the Environment must discuss the request," Roubí?ková added.Consistency with raw material policy could be a problem. Prime Minister Andrej Babiš, after the head of the Ministry of Industry TomᚠHüner (for YES), wants to cancel the validity of the Memorandum on Cooperation of Australians with the State with regard to Lithium, signed last year by his predecessor, Ji?í Havlí?ko from the CSSD.And also to discuss further exploration of the deposit with the state-owned Diamo. As Babiš stressed after the government meeting three weeks ago, the Lithuanian profit, according to last year's resolution of deputies, remains in the Czech hands. "The Minister is instructing the state-owned company Diamo, which should proceed to the survey," Babis said.Can not anticipate, can not commentNow, as Hüner's request for the Australians demands to settle, whether it is or not in line with the state's raw materials policy, his spokesman, Št?pánka Filipová, does not want to say.The lithium mining memorandum is invalid for us, Babis said"The whole administrative procedure and the final decision are within the competence of the Ministry of the Environment. The Ministry of Industry and Trade is currently preparing only a partial opinion. What it is, can not be anticipated, "she told Radiožurnál.Similarly, the spokesman does not answer whether the Minister of Industry has already instructed Diamant State to also ask for a lithium deposit survey. Not even how it will be with the memorandum."The Ministry of Industry and Trade has a clear strategy to eliminate the risks to the Czech Republic from the Lithium Memorandum in accordance with the program statement. The individual steps can not be commented at this time, "added Filipova.Lithium mining at the latest in four yearsRichard Pavlik, the head of Geomet, did not answer questions about the negotiations with the state. He wrote in a new request for consent to the mining area at Cínovci that if the company had not submitted it, all previous investments in the survey would have lost meaning.Geomet has been working on exploring the Tinovite deposit for about seven years and investing hundreds of millions of crowns in it. The previous three parts have already received the prior consent from the state, but now only asks for the last part.The company will then have to complete the feasibility study and ask for approval of the EIA study, ie the environmental impact. With mining, the company would like to start at the latest in four years.Lithium began to be interesting as a raw material for its use in the production of batteries to now popular electric cars. The Cínovci bearing is one of the largest in the world, according to calculations, the theoretical value of the raw material at current lithium prices could be estimated at 1.5 trillion crowns.

[steeplejack] 19/2/2018 09:58

FT article in 17/18th weekend issueContains article headed Lithium faces 5bn dollar test as supplier stake sale electrifies buyer interest.References the fact that the Canadian company PotashCorp which acquired a 32 percent stake in Chiles SQM some 20 years ago will now be forced to sell the stake as a condition of its merger with rival Agrium.'While only a handful of companies are likely to compete for the stake,the eventual price will be an important measure of how seriously the hype around electric cars is being taken'The stake is currently valued at around 4.7bn dollars.The price of lithium carbonate has more than doubled over the past two years to hit 14,500 dollars a tonne.However,according to consultancy Wood Mackenzie,if electric vehicles reach 5 percent of car and light truck globally by 2025 from their current level of 2 percent,lithium prices will fall to 6900 dollars a tonne by 2025.However,if that share,including plugin hybrids,climbs to 12 percent by 2025,lithium prices will remain at current levels and move towards a long term price of 13600 dollars a tonne,the consultancy forecasts.Wherever bidders end up sitting on the spectrum of forecasts,they will also be competing against a backdrop in which lithium prices have unleashed a surge in supply.Companies are hunting for the metal,including in Cornwall,Nevada,Mali and Australia,where there has been a rapid build up of production.As a result,some analysts who follow the industry forecast a surplus for the next few years,'Why would you buy a 5bn dollar stake in a resource that is geologically abundant',asks one investor.Ben Isaacson,an analyst at Scoia bank in Toronto,says SQMs share price reflects lithium prices well above the marginal costs of production which isnt realistic.The lithium price will fall to a long term average of between 8000-10000 dollars per tonne he forecasts.'Theres a clock ticking on this deal'he says ,'this should be bought at a discount ,this should not be bought at a premium.''Lithium is experiencing a far bigger demand shock',says says Howard Klein,a New York based partner at RK Equity which advise companies in the sector.The sale of the SQM stake will reveal just how valuable the world thinks that shock is.

[steeplejack] 13/2/2018 08:21

Written back May 2016 but the basic assumptions remain valid.Pricing will could come down to how much lithium processing capacity is created.Note the the Czech Republic doesn't appear as a producer (Serbia does) and the way the Czechs are behaving,it possibly never will.It certainly appears to be something of a race to make hay while the sun shines.

[pugugly] 13/2/2018 07:55

duplicate post

[pugugly] 13/2/2018 07:54

Interesting article showing distribution and growth of resource - Could it be that there will soon be a glut of lithium production and a price crash ?


A bit dated but (imo) useful background

[telbap] 12/2/2018 23:28

May wells another chance, methinks the games are not yet finished.

[luisfrg] 12/2/2018 18:38

Nice recovery shud of bought more at 24.5p bounced twice off that price in 3 days

[telbap] 12/2/2018 10:56

If we hit anything sub 20p i have 10k ready and waiting....wait and see

[regandharry5] 12/2/2018 09:36

No me neither, but i would be interested at 20p,or even less.

[telbap] 12/2/2018 08:22

Reggy.......20p looking immenent. It would appear we are going to have a rights issue to me. Cannot se any reason else why we are back to the low 20s and dropping.

[luisfrg] 06/2/2018 11:46

Topped up 25000

[frankie83] 06/2/2018 08:21

Good time to reload I think...

[luisfrg] 06/2/2018 07:42

Slightly better ON Asc....48.5 ÷16.89 = 28.45p

[steeplejack] 05/2/2018 09:38

On page 3 of yesterday's Sunday Times,there is an article about how the cash strapped Congo Republic intends to tax producers of cobalt."Glencore is facing a $250m hit from a looming windfall fax on cobalt-a key component of the rechargeable batteries that power electric car............The new fiscal regime is set to increase the royalty rate on cobalt from 2% to 10%.Miners are also facing a 50% levy on excess profits.This windfall tax would kick in as soon as a commodity rises 25% above the prise used to test the feasibility of a mine,"Glencore and Randgold will be the two worst hit by these measures that could be signed into law by the President Joseph Kabila this week.I'm sure these developments will be bought to Mr Babis's attention.The worry must be that the Czech Republic would like to entertain similar measures for EMH but who knows.The Congo is likely to prove the world leader in the production of cobalt and already the likes of Tesla and Apple etc are looking for alternative sources,and are working with producers in Canada and America to create new supply chains.I hope that Babis doesn't similarly encourage lithium customers to look outside the Czech Republc.Its a risk that is now being reflected in the EMH share price.

[telbap] 31/1/2018 16:27

And another one today......wtf....the future of transport and the share price is talking a real beating.

[telbap] 24/1/2018 13:04

Nice find Sam. Let's hope they seal the deal with our management as well as hungry government.

[myst1] 19/1/2018 16:41

I suppose it depends on who you listen to. The exciting thing about EMH however is its location right in heartland of Europes major car manufacturers.

[myst1] 19/1/2018 16:05

Thanks for your insight JakNife.

I see from your posting history it's a hobby of yours to put a dampener on most stocks.

I'm bullish you are not. End of.