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CEO.CA members discuss high-risk penny stocks which can lose their entire value. Only risk what you can afford to lose.
@tommy#cobalt has structural problems: it's a byproduct of nickel and copper. 100k tonnes a year market. 60% comes from DRC. Prices have begun to rise. Nickel and copper markets are stagnating. It also has a CSR problem: dangerous, illegal mining affecting 15% of supply. Child labor scares the hell out of Silicon Valley.
@racker@Jkaiser joins the Korelin weekend show as well http://www.kereport.com/2016/10/15/indepth-coverage-markets-gold-stocks/#kaiser$UVN results not that bad" - encourages shareholders to stay the course or average down but don't expect a rebound until sometime next year. Kaiser still thinks we are in a 2-3 year junior resource bull market and that gold will turn around shortly. He talks up $IVN's Kamoa and Kakula copper discoveries but says DR Congo is at risk of civil war which could send #cobalt prices to $30-40 from $12. Kaiser mentions Friedland's Clean Teq holdings $CLQ.AX, which owns a scandium nickel cobalt deposit in Australia, as a hedge against Congo conflicts. He thinks Ivanhoe is going to get bought by Chinese.
@DanOHi @mbg. There would be a recovery no doubt about it. One thing that usually gets overlooked is the fact that an electric vehicle needs three times more copper than a regular vehicle. Therefore when booming this EV industry would also increase the appetite for #copper (beside #lithium, #cobalt, #graphite). On the other hand we have to have in mind that copper is one of the few metals that can be recycled ad infinitum without losing its properties. About 30% of the world's copper consumption comes from recycling. Still what's ahead of us in terms of type of development and magnitude of changes in transportation and energy use and storage should make all of us optimistic that copper has a bright future. Cheers.
@Excelsior@Xriva - I agree with you about how Nuclear and Renewable energy (Solar, Wind, Hydro, Geothermal, Tidal) should work together as part of the energy mix to meet the more strict metrics on carbon free energy. I also think the subsidies of energy does play a large part and it has distorted free markets for some time by favoring certain energy inputs over others.
It would be a shame not to renew nuclear energy licenses, because as you mentioned, "One thing is for sure these ding dongs better give some thought and consider the long term picture. If they kill nuc's due to false economics / perverted energy markets then it may never be economically viable to restart the nuc's."
At that point public sentiment (who already hate nuclear, but have no problem charging their smart phones, or electric cars with it) would oppose the restarts. Just look at the mess Japan is in and at a time where they are floundering around and restarting their nuclear reactors makes so much sense logically, they are voting emotionally.
@DJS - Good thoughts on the cojones it takes to be a contrarian investor. I'm personally not too concerned about clean coal or nuclear fusion displacing nuclear fission any time soon. Fusion has been 10 year away for the last 50 years :-) I see the biggest threat to Nuclear being the massive public support of #RenewableEnergy and thus the politicians vote and push accordingly. For #Solar and #Wind to really work then #Backup#Batteries will play a part, and that underpins interest & growth in #Lithium#Cobalt and #Copper .
@DanONo chance in hell that base metals would have a hard time in 2017 (unless there is some major event messing with us). #Copper is good already i.e. ready to jump - reduced inventory, most of the expansions took place already, low metal price discouraged new large investments, new ops/development stories have high capex (difficult to raise billions) and if the demand kicks up a notch we should be back at $2.75/lb. Plus many large mines messed with the environment and could be closed (the most recent one is Los Pelambres). And grades are lower. And may I add we don't discover too many good deposits lately. #Zinc- we all know the story. #Cobalt should be OK. Goes in batteries as well. #Nickel - should be a notch higher but then a lot higher in a few years (nickel is steel). There I would want to see China increasing the amount of nickel that they put in their steel but generally speaking OPEC talks of 10 trillion dollars in infrastructure spending in the next 25 years and that affects anything that goes in steel ( nickel, #chromium, #tungsten, #vanadium - good for energy storage as well etc). Plus that America's infrastructure is crumbling and Hillary (a populist way to build the economy i.e. Hitler's time tested method) should/would increase infrastructure spending. China did not stop building stuff. The pace and quality would change though. India and Africa are not that far behind. And their developing stories would provide further momentum to bettering base metal prices. I think a few decades of good development are ahead of us if we don't go to war or do something stupid (stop sending those radio signals or advanced aliens would come to visit us Predator style according to Stephen Hawkins :). And don't forget to subscribe (free) to www.miningandmoney.com where you would get to know things that you won't find anywhere else.
@newstrackerMetal movements into and out of Shanghai and LME warehouses
- Shanghai copper stocks rise by 9,525t adding to an extra 1,325t into LME warehouses
- Shanghai Aluminium stocks fall 12,373t while LME Aluminium stocks fall by a further 5,450t
- #Nickel stocks fell 281t in Shanghai with LME stocks down just 6t. This barely dents the mountain of nickel out there
- #Tin stocks fell 158t in Shanghai while LME stocks rose 80t
- Shanghai Zinc stocks fell 6,000t with LME stocks falling by a further 225t
- #Cobalt is unchanged despite the artisanal invasion at Tenke Fungurume
- #Steel, moly and lead are unchanged on the LME though Shanghai lead stocks fell by 3,673t as local lead production is thought to be less than it was
Source: SP Angel – Morning View – Friday 25 11 16
@BrandonHaving said that, I like the #cobalt story even if it is hard to capitalize on. The fact it's primarily a by-product means that production won't ramp up to meet demand as easily. You're not going to see big Ni-Co or Cu-Co mines ramp up when Ni & Cu prices don't justify it, pretty much whatever Co is at.
@BrandonThis worked against #cobalt for ages where those same mines weren't lowering production in the face of a glut of Co supply, so there was just too much on the market. Their cost base for by-product Co was way lower than a primary Co miner could compete with.
@BrandonSo you have to look at the future of #Cobalt demand and compare where it's going to be compared to Cu and Ni. High enough that we'll need primary supply? Or is this shortage now just a temporary thing until the #Nickel and #Copper markets rebound and more by-product Co comes online as a result.
@valcomet@Excelsior; @APaulGill [@ExcelsiorA. Paul Gill] - interesting thoughts and comments - very much appreciated. Unfortunately, nowhere mentioning about Cobalt. Co is essential to the performance of Li-ion batteries and there are no technical developments to eliminate Co from the use in cathodes for the foreseeable future. #lithium; #cobalt
@BenKenobi@excelsior there is an interview with Larry on BNN or Howe Street (I forget) where he was saying that $AMY technology could potentially make them the largest primary producer of #cobalt in north america
@mineralisedWorth looking at $RER (ASX). 40KT contained cobalt at grade ~0.5%, along with 300KT copper at ~2.5%. Oxide resource, low clay content, starting from surface with very low strip ratio. DFS underway, 16 exploration targets in JV with Ivanhoe / near Kamoa discovery. $40M mc, $6m cash. Well respected / accomplished CEO (Mark Arnesen) and COO both comfortable with the region. Backed by Tembo capital, Sprott, Traxys and others. Previous scoping study determined an IRR of 80% using just DMS plant with no cobalt credits applied and half the resource. DFS will examine heap leach / SXEW and apply cobalt credits. Set to benefit from both copper and cobalt pricing, differentiated to nickel cobalt plays which will have nickel under pressure. Quality of core deposit means this should be economic at any time in cycle. Benefits from recent infrastructure development nearby to support Kamoa.
@mineralisedNegatives: High shares on issue (consolidation under way), single large shareholder Tembo capital (although they could have taken it private already if they wanted to), legal issues (all pretty minor and being defended due to lack of grounds). And if you are worried about DRC, then DRC. Personally not concerned with the great location of the project near huge investments, ongoing developments and very active mines.
@terrysteenI looked at KAT previously. They had some issues with killing some locals last spring, rock slide if I recall. They are involved with a major JV if I recall correctly who is calling the shots and not to keen to restart quickly. I will rehash the project again but DRC?? Another possible buyout for the Chinese? They don't care where they operate, I have seen them personally in action in the past as I usually work international oil. Anyways, I will have another look! Cheers, Terry