Jubilee Metals Share Discussion Threads

[niloc4] 20/2/2020 16:14

Plat Hunter will also be going down tonight at the CP.

[lostabillion] 20/2/2020 16:13

As electric car sales soar, the industry faces a cobalt crisis
Thursday 20 February 2020
First it was lithium, now its cobalt. Electric vehicles need them for batteries, but supply issues will only worsen as demand rises
Electric vehicle sales are soaring, with factories working full-pelt to churn out as many batteries as possible. And that’s creating some bottlenecks.
Global production of electric vehicles is predicted to top four million cars globally this year, rising to 12 million in 2025. In Europe alone, 540,000 electric cars will be sold this year, an increase from 319,000 last year. For that to happen, we don’t just need gigafactories to build the batteries but also need to get hold of the key materials, notably lithium and cobalt — and the gold rush on both has already begun.
Last week, The Times reported that Jaguar Land Rover would pause production on the I-Pace, pinning the blame on shortages at battery maker LG Chem. Mercedes halved its 2020 production goals after shortages with the same supplier. "Currently EV uptake is arguably being constrained more by lack of manufacturing capacity than anything else," says Paul Anderson, co-director of the Birmingham Centre for Strategic Elements and Critical Materials. "Lack of battery manufacturing capacity is a key part of this, which is why there is the rush to build gigafactories."
A lack of gigantic factories is a problem that can be relatively easily solved. "In June 2019, there were 91 factories in the pipeline for producing lithium ion cells around the world, of which around half were already in production the previous year," says Gavin Harper, research fellow at the Faraday Institution, a battery research group.
What isn’t so easily solved is the issue of getting enough raw materials out of the ground. "It’s been predicted that as demand for electric vehicles surges, there could be constraints around the key strategic elements and critical materials needed for EV battery manufacture in the future," says Harper.
Aside from the usual hurdles of sourcing and extracting deposits and processing material for use, the key ingredients for EV batteries face geopolitical upheaval including trade wars, local protests, and raise human rights and environmental concerns. That will cause "structural undersupply," says Andrew Leyland, head of strategic advisory at Benchmark Mineral Intelligence, and could wreak havoc on EV supply chains just as the industry is hoping to go mainstream.
Look at lithium. At the moment, we have enough – too much, in fact. While soaring prices of the core material in lithium-ion batteries sparked a mining rush in Australia, Argentina and Chile and – which between them provided 91 per cent of supply in 2017, says Harper – a slump in demand caused by a weak automotive market and a reduction in grants for buying such cars in China has slowed the pace of mining and processing plant construction.
Leyland says back in 2015, there were maybe 15 such lithium mines. "Now you're closer to 30, 35," he says. Most of those are in Australia, which is now the world’s biggest producer of lithium with China its biggest customer; back in the 1990s, the US was the main lithium supplier to the world, but now it has just one major producer. But just because the lithium isn’t on your land doesn’t mean you can’t get at it. The US does still have small lithium deposits – in particular, around the Salton Sea in California – but deposits in Australia and South America are vast by comparison. But America, Leyland points out, owns two of the largest chemical companies.
China is globally the biggest player in lithium, no surprise as it's also making and buying the most EVs. "This is starting to worry a lot of OEMs," says Leyland, pointing to the trade war spurred on by a tweet from US President Donald Trump. "People don't want a single point of failure in their supply chain – you can't really invest billions of dollars and then overnight, one tweet means an export tariff makes your business unsustainable."
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Lithium mines also face protests from farmers in Portugal and indigenous communities in Chile, locking mining efforts in the country, raising questions not only of supply but ethics – with both challenges faced by cobalt.
Unlike lithium, much of cobalt is found in one place, the Democratic Republic of the Congo, or DRC – 59 per cent of the world's supply is sourced from that country. Among many concerns, there's evidence of widespread use of child labour, and last year tech companies were sued for their alleged role in the death and injury of children. Then there’s the harsh economics: cobalt is also one of the most expensive metals in EV batteries, costing between $33,000 and $35,000 per tonne. And we simply may not have enough supply. Research from MIT suggests there's not enough ability to mine and process the material to meet demand. The research suggests that demand could reach 430,000 tonnes in the next decade, which is 1.6 times today's capacity.
One solution could be finding an alternative to cobalt in EV batteries. One major Chinese manufacturer, Contemporary Amperex Technology (CATL), already produces batteries that use phosphate instead of nickel-cobalt-aluminum or nickel-manganese-cobalt combinations. That's attracted the attention of Tesla, with reports suggesting the company is seeking to add lithium iron phosphate batteries to its options.
Back in 2018, Tesla CEO Elon Musk pledged that his company would stop using cobalt in the next generation of batteries, but the deal in China is likely for shorter-range cars, as phosphate batteries don't have the same capacity as cobalt ones. We're going to need better batteries, or fix cobalt, if EV sales are going to continue to soar.
Regardless of the material in question, one answer to the supply shortage could be recycling, which would help to reduce the environmental impact of EV batteries while also reusing critical materials, meaning fewer need to be mined and processed. "Some of these batteries will go on to live 'second lives' in other applications that are potentially less demanding," says Harper. "However, the eventual fate of all lithium-ion batteries should be that they are recycled when finally no longer usable."
But right now, his research has shown that existing efforts to recycle such batteries aren't suitable for the scale that a shift to EVs will cause. "Of course, it will take some time before significant numbers of EV batteries reach the end of life for this to be a resource – in the meantime, supplies for manufacturing EV batteries will have to come from primary resources, but we believe recycling will have a crucial role to play in the future, providing materials for our automotive industry."
But that's just one solution to a wide-ranging problem. The shift to EVs needs batteries. Right now, their production is the bottleneck, but the next one is likely to be supply. We can reinvent batteries using different materials, solve the recycling quandary, or simply yank more lithium and cobalt out of the ground – but if the industry doesn't sort the issue fast, EVs are going to stumble.

[kryptonsnake] 20/2/2020 15:34

CFD LOLsss

someone is about to get burnt

This is going down tomorrow after todays pump and dump


LOLsss

[plat hunter] 20/2/2020 15:33

Keep trying boys, you're swimming against the tide now.Fully allocated here now and CFD opened yesterday.Only going one way now, all aboard.

[niloc4] 20/2/2020 15:24

And they won't action it

[alwaysevolving] 20/2/2020 15:08

I believe they passed a resolution at the 2018 AGM to buy back shares Aces? Obviously they haven’t actioned that one yet!

[ginko3] 20/2/2020 15:07

deme, it was mentioned at the AGM before last but alas, came to nought

[niloc4] 20/2/2020 14:59

Dividends and share buy backs 2 more CONS BY LEON AND COLIN. IT WAS ONLY SHARE ISSUES BEING CARRIED OUT

[niloc4] 20/2/2020 14:57

Maybe the MOU jubilee had with Sylvania platinum was a memorandum of understanding by Sylvania platinum to NEVER DEAL WITH JUBILEE.

[aceshi] 20/2/2020 14:56

Yep and share buybacks

[niloc4] 20/2/2020 14:36

Sylvania could obviously see back then how incompetent tweedle d and tweedle dum were

[niloc4] 20/2/2020 14:35

It makes sense why Sylvania platinum never followed up with there MOU with jubilee about 10 years ago. SLP up over 10%

[niloc4] 20/2/2020 14:32

It makes sense why Sylvania platinum never followed up with there MOU with jubilee about 10 years ago. SLP up over 10%

[deme1] 20/2/2020 14:06

Didn't someone mention a while back that Colin mentioned possibly paying a dividend.

Changes like the wind ;)

[the bull] 20/2/2020 14:05

Maybe they should merge with SLP and become that mid cap overnight and gain an FD

[gsg] 20/2/2020 14:02

Yep, Leon's in a hurry, and I backed the resolutions at the agm, so I'm ok with it..

[scrappycat] 20/2/2020 13:57

Leon's declared aim is to become a mid cap company. The way to achieve this is to keep growing the company, rather than giving it back in part payments to the shareholders. They can take their rewards as and when they choose. This seems to be the Board's chosen path according to Leon. Like it, or lump it.

[gsg] 20/2/2020 13:47

nelson and 1MM.

I'm with you on the shareholder reward front. Just from the agm resolution and the general vibe there, I see a further large sized deal as inevitable.

One attendee at the agm specifically asked about dividends as opposed to growth. Leon gave a detailed reply and summed up his response with:

"however if that's what you are looking for, you've got the wrong board".

[bullster] 20/2/2020 13:46

..Some rough pgm calculations for January.INYONI WINDSOR2,500/ oz 2,500/ oz produced$2,600/ oz $2,600/ oz basket$450/ oz $450/ oz smelter/refiner costs$420/ oz $640/ oz concentrator cost to produce$4,525,000 $3,775,000 project earnings$8,300,000 (£6,445,100) total pgm earnings..

[1madmarky] 20/2/2020 13:44

GSG - you are probably right.... although I'd much rather nelson is.

[nelson01] 20/2/2020 13:32

I would rather we grew from organic means from now on, we have enough to be getting on with. It about time the share holders had some reward.

[gsg] 20/2/2020 13:27

Looking back at the agm resolutions. That partially tells us what we need to know.

I reckon a $50-$60m deal will hit at some point,financed via a combination of cashflow, debt and dilution.

I'm ok with that, if the distressed assets generate cash and profitability.

[fozdad] 20/2/2020 13:21

I'm hoping / expecting to hear about plans for Fine Chrome at Inyoni and Windsor very soon, all paid for out of cash flow, so no need for fundraising there.

[nelson01] 20/2/2020 13:05

Madmarky..... distressed chrome assets will be for next to nothing ,I don't see any need to raise cash and think it would kill the share price off for good....don't think it will happen.

[1madmarky] 20/2/2020 13:01

Nelson- I agree there is no need, but Leon is perusing a sweet shop at present with a number of distressed chrome assets. If he decides to conserve cash and can't be bothered with debt... he will dilute. I don't want to see it,but it's not our call.