Monday, 8 April 2019

Tesla Energy rEVolution And The Golden Age For Copper: A Million Tons Of Copper Is On The Way - It Will Not Be Enough.




Bloomberg brings copper into the headlines again with their analysis of "bullish spirits" observed among analysts at the industry event last week. This is not even a rhetorical question for all insiders: "A Million Tons of Copper Is on the Way - It May Not Be Enough". It can be pronounced with certainty - it will not be enough. I will go here with Goldman Sachs this time. Two major trends are colliding which will define the supply and demand for the Green Energy Metal. We have exponential growth of sales for electric cars, charging, solar and wind energy systems. And lack of new discoveries and head grade going down across all copper industry.




Red metal goes green in the Tesla Energy rEVolution. Goldman Sachs now estimates that copper will be in structural "severe deficits" starting from 2023. And it is happening even before The Switch - the real mass-scale transition to renewable energy generation and when electric cars will affect millions of households all over the world. Despite stormy markets, the smart money was buying all the best copper projects last year. Only new copper giants like Los Azules Copper project under operation by the legendary McEwen Mining can bridge the coming very soon huge supply gap. 




Visual Capitalist presents a brilliant illustration of copper place in the energy rEVolution and particularly in electric vehicles. Smart Grids connecting renewables like Solar and Wind with the grid and charging infrastructure for electric cars will bring another drive for copper demand for very many years to come. Green Energy Metals Royalty Company TNR Gold holds 0.36% NSR Royalty on the entire Los Azules Copper project in Argentina and you can find more information about it in our presentation below.






PDAC 2019: Building The Green Energy Metals Royalty Company: TNR Gold Los Azules Copper NSR Royalty Holding Presentation February 2019.



"We aim to proactively manage our capital and royalty portfolio in order to optimize our holdings and meet strategic goals," commented Kirill Klip, Executive Chairman of TNR. "TNR's strategic initiatives include research and marketing of convertible royalty debentures - debt instruments allowing conversion directly into part-ownership of our royalty holdings; merger and acquisition-related activities aimed at creating partnerships on the basis of our royalty holdings and exploring the opportunities provided by blockchain technology in order to create access to capital allocated for crypto assets. We are actively seeking partners who would like to connect their digital assets with our potential future royalty cash-flow streams. 
"The TNR team has the full support of the Company's investment loan capital provider who backs our business plan and long-term strategic initiatives. It's clear that the decision of our investment loan capital provider earlier this year, to extend the due date of the investment loan by three years, is a resounding show of confidence in TNR's business strategy, asset portfolio and management team. 
"After receipt of debenture loan repayment in February, we have addressed another important issue for TNR by considerably improving our working capital and strengthening the balance sheet. We have the resources to concentrate our efforts on building a premier green energy metals royalty company by maximizing the value of our royalty portfolio of copper and lithium projects that are instrumental in the electric vehicle and green energy sectors. In addition, TNR's business plan includes investigating new strategic acquisitions and developing the Shotgun Gold project in Alaska."
TNR benefits by not being required to contribute any capital to our royalty holdings on the Los Azules copper project and on the Mariana Lithium Project in Argentina. The Company's strategy with the Shotgun Gold Project is to attract a joint venture partnership with one of the major gold mining companies. TNR is actively introducing the project to interested parties. The essence of our business model is to have industry leaders like McEwen Mining and Ganfeng Lithium as operators on the projects that will potentially generate royalty cash flows to contribute and develop significant long-term value for our shareholders.


LEGAL DISCLAIMER

Please read legal disclaimer. There is no investment advice on this blog. Always consult a qualified financial adviser before any investment decisions. DYOR.






Red Metal Goes Green During The Tesla Energy rEVolution: Frank Holmes - Will 2019 Be the Year of King Copper?





I would like to share with you today Frank Holmes's article about the big picture for copper and catalyses coming to this market in the next few years. It looks like Energy rEvolution is starting to take out our streets one by one for real with every new Tesla hitting the road. And now, finally, Tesla Model 3 is introducing the best electric cars at the more affordable prices on a truly massive mass-market scale. China is just going parabolic with EVs adoption and its "1000" new EV makers. Tesla Model Y will kill completely the brave idea that cars should be powered by the controlled explosions under the hood with enormous waste of energy and dire consequences to the health of not only the happy riders but the whole planet. The ICE Age is over and it is time to check your portfolios, Ladies and Gentlemen.




Frank Holmes is the must follow in The Switch - tectonic Energy transition happening in the world and all investment implications for the markets which are still mostly running on the oil fumes. He is CEO of U.S. Global Investors and you can follow his blog here and his twitter feed here. Both are highly recommended.




Talking about Mining Alliance of Trust initiative, Frank Holmes is one of the most trusted voices of common sense, sources of wealth of analysis, amazing charts and education for the generation of investors who are looking to stand out of the herd running to the slaughterhouse and gather the real understanding how the global economy really works and what factors are really driving it. And Mr Market, as you already know, lives his very own life which can be detached from any economic fundamentals for years by playing his favourite game aimed at hurting as many amateurs investors as possible. Here where Mining Alliance of Trust can help us all - we have enough risks in this business - we must weed out all bad actors ourselves as the industry. Every single burnt investor matters - they are never coming back.




We have a huge disconnect in our progress of technology and the material base which is making every single gadget tick and all Tesla Energy rEVolution possible. We must build a new EcoSystem which will allow the financing of full mining cycle in the West or face the world where supply chains are controlled by government-sponsored oligopolies. And this is an extremely polite way of describing the cut-throat competition to control the bottlenecks for the supply of critical materials like lithium for example. We need new ideas about how to connect available capital with entrepreneurs who are building our Green Future possible for all. Join our discussion about Blockchain Technology and the importance of Trust for the future of mining and energy.




The copper market is much more diversified than lithium one and China has not got all keys to the global supply yet, but make no mistake - smart money is buying all the best mining projects. Now, after bankers have been driving their Teslas for a few months, they are all getting the idea that electric cars are not just a fad, but this is the future of transport which is coming much faster than a lot of people are anticipating it. Frank provides great insights into this new excitement for the sector and what is driving the people who are making mining possible.




On our front of building the Green Energy Metals Energy Company, TNR Gold Team has delivered a few very important results already in 2019 after announcing our Strategic Initiatives: we have the very strong alliance with all our major shareholders. Our long-term investment loan was extended for another 3 years in order to allow the further growth of valuation for our existing Royalty Portfolio and active exploration of the new M&A opportunities. Our long-standing financing partner who is providing us capital is supporting our vision, strategic initiatives and the most important, our TNR Gold management Team. Strategic Controlling and active management of our investment portfolio have allowed us to announce the repayment in full of ILC Debenture earlier in February and now we are ready to move forward building our Company for the benefit of all shareholders.




This is where our business model comes into play. It is very important to mention that we do not need to contribute any CAPEX for our Royalty Holdings in Copper and Lithium. Mariana Lithium is being developed by Ganfeng Lithium - one of the major lithium companies from China. And legendary Rob McEwen is taking very good care of the future for the giant Los Azules copper project in Argentina. You can find more information about our NSR Royalty Holdings on the links below and Frank Holmes will connect the dots for you and explain why Red metal is going Green during the Tesla Energy rEVolution.





Tesla rEVolution And The End Of The ICE Age: Welcome A Golden Age For Copper - GEM Royalty TNR Gold Copper Presentation.






"I am very pleased that the TNR Gold team has the full support of the Company's investment loan capital provider who is supporting our business plan and long-term strategic initiatives," commented Kirill Klip, Executive Chairman of TNR. "It is clear that the decision of our investment loan capital provider is a resounding show of confidence in TNR Gold's long-term business strategy, asset portfolio and management team. Now we can concentrate our efforts on building this green energy metals royalty company by maximizing the value of our royalty portfolio of copper and lithium projects that are instrumental in the electric vehicle and green energy sectors, investigating new strategic acquisitions, and development of the Shotgun Gold project in Alaska. The essence of our business model is to have industry leaders like McEwen Mining and Ganfeng Lithium as operators on the projects that will potentially generate royalty cash flows to contribute and develop significant long-term value for our shareholders."



LEGAL DISCLAIMER

Please read legal disclaimer. There is no investment advice on this blog. Always consult a qualified financial adviser before any investment decisions. DYOR.





Bloomberg:

A Million Tons of Copper Is on the Way: It May Not Be Enough


  •  
    Analysts at industry event this week are in bullish spirits
  •  
    CRU Group sees copper deficit at 270,000 metric tons by 2023


Friday, 5 April 2019

Life After Oil, Nirvana And Energy Security: Volkswagen Group Secures Lithium Supplies - Ganfeng Will Supply Lithium To The Volkswagen Group For The Next Ten Years.



The world lost Kurt Cobain on this day in 1994. I do hope that he has found his Nirvana. Kurt and Lithium will be always remembered. As we are discussing here, lithium will power us for the next 50 years and after that - robots. Volkswagen has secured its lithium supply for the next 10 years for that transition to the Post Carbon Economy. Our congratulations are going out to the hard-working Ganfeng Lithium Team! Now, in addition to supply agreements with Tesla and BMW, they will supply VW Group.




Finally, the Great Germans are moving from their DIEselgate nightmares into the real EVs action. They are facing billions in stranded assets as the monuments to the ICE Age and very tough questions from their very angry shareholders.




Ganfeng Lithium continues its relentless advance into the position of global lithium power and now has agreements to supply all the top names from the electric cars headlines: Tesla, BMW and VW. This announcement is coming after a further $160M investment in Lithium Americas by Ganfeng and increasing its stake in Mt Marion operations after acquiring the stake from Neometals. Ganfeng is building a diversified supply chain geographically and by the type of raw material used for the production of lithium chemicals. Lithium Americas will produce lithium from lithium brine in Argentia and Mt Marion is producing lithium spodumene concentrate in Australia. Ganfeng has its investments in a number of other lithium developers in Australia.




Lithium will power Tesla Energy rEVolution for years to come, but if you look at the junior mining space you will hardly notice this excitement coming from electric cars and numerous developments in this space this year. We have a total disconnect between billions of dollars invested by OEMs into electric cars and lithium batteries production facilities; and total lack of capital for lithium developers and junior miners. How to cross this digital divide and finance Tesla Energy rEVolution supply lines? We have discussed it at length among our strategic initiatives at TNR Gold.




The ugly truth is that the industry needs $20B in the new capital to be raised by 2020 in order to be able just to increase production of lithium to 1M T LCE per year by 2026 to match the demand as estimated by UBS. The whole industry managed to raise only $2B plus in the new capital in 2018, including the very loud IPOs of Ganfeng and Livent - FMC lithium spin out. Even the best projects are now struggling to get any capital with huge discounts on already the extremely depressed market valuations. Nemaska and Orocobre development sagas are only showing one more time how it is difficult to put online lithium operations both with spodumene and brines.




Here where our GEM Royalty business model is coming into play at TNR Gold. We do not have to dilute our shareholders like there is no tomorrow at the most unfortunate time in the market place. We are holding NSR Royalty on Mariana Lithium JV with the giant from China Ganfeng Lithium as the operator. We do not have to contribute to any CAPEX for this project's development and we do not have to raise capital in order to do so when Mr Market is still trying to figure out the valuations for the lithium developers.




As notable experts are discussing these days, this process can take Mr Market a while: softer prices for lithium carbonate and hydroxide in China are only complicating the situation and adding additional concerns to the sector. After the bloody massacre in the lithium space in 2018, we have to see now when lithium majors will start moving first. Investors who will be lucky to make money on that move will start seeking lithium pre-production developers like Lithium Americas and only after that, some capital gains will start sipping down to the junior miners with FS and PEA stages. All this process will clean up brutally the market from "Thousand and one" lithium companies and, very sadly, not everybody will make it. Stay strong and always Do Your Own Research. Avoid at all cost flying with kamikaze pilots.





Building The Green Energy Metals Royalty Company: TNR Gold Reports On Mariana Lithium Royalty Holding - Ganfeng Lithium JV In Argentina Filed Report With PEA Results.




"The Mariana Lithium PEA study for ILC is the first preliminary economic study that provides a potential value for the total NSR Royalty from the project's life of mine cash flow. TNR does not have to contribute any capital for development of Mariana Lithium and 1.8% NSR Royalty is an important part of TNR's portfolio," stated Kirill Klip, Executive Chairman of TNR. "The essence of our business model is to have industry leaders like Ganfeng Lithium as operators on the projects that will potentially generate royalty cash flows to contribute significant value for our shareholders."





Lithium Will Power Us For The Next 50 Years And Then Robots: GEM Royalty TNR Gold Lithium Presentation January 2019.






"I am very pleased that the TNR Gold team has the full support of the Company's investment loan capital provider who is supporting our business plan and long-term strategic initiatives," commented Kirill Klip, Executive Chairman of TNR. "It is clear that the decision of our investment loan capital provider is a resounding show of confidence in TNR Gold's long-term business strategy, asset portfolio and management team. Now we can concentrate our efforts on building this green energy metals royalty company by maximizing the value of our royalty portfolio of copper and lithium projects that are instrumental in the electric vehicle and green energy sectors, investigating new strategic acquisitions, and development of the Shotgun Gold project in Alaska. The essence of our business model is to have industry leaders like McEwen Mining and Ganfeng Lithium as operators on the projects that will potentially generate royalty cash flows to contribute and develop significant long-term value for our shareholders."


LEGAL DISCLAIMER

Please read legal disclaimer. There is no investment advice on this blog. Always consult a qualified financial adviser before any investment decisions. DYOR.





Volkswagen Group:


The Volkswagen Group and Ganfeng Lithium Co., Ltd. registered in Jiangxi (China) have signed a memorandum of understanding on long-term lithium supplies for battery cells. Under the agreement, Ganfeng will supply lithium to the Volkswagen Group and its suppliers for the next ten years. Volkswagen is thus already securing a significant share of its lithium requirement for batteries.




Wednesday, 3 April 2019

The Mining Alliance Of Trust: Do Your Own Research - Avoid At All Costs Flying With Kamikaze Pilots.



It is time to return to our conversation about The Mining Alliance Of Trust. We have a lot of regulators in place who are helping to police and organise the market place in Canada. You can find them on my twitter feed. Among others are the British Columbia Securities CommissionInvestment Industry Regulatory Organisation of Canada and Ontario Securities CommissionEvery investor in junior mining must follow them and subscribe to their e-news. Every junior mining company must follow them and invest in a professional Corporate Secretary in order to avoid costly mistakes and not to build fortunes for lawyers instead of their company.

All regulators in Canada are doing a great job and sometimes they are catching bad actors who are too sloppy, but how many still manage to muddy the waters of junior mining for years? We cannot restore the trust and build up the new generation of investors with the existing system. The hard-working geologists who became Executives of Junior Mining Companies in order to pursue their dream do not have a relevant legal and business education and just words IIROC and BCSC on the letterhead can bring them a heart attack. 

On another hand "smooth criminals" wearing expensive ties continue to find their ways to separate investors and their money with "1000 and one" "relatively innocent scams" - buyer beware. This system is not perfect: the good hardworking guys are spending literally millions of dollars on compliance, lawyers and other red tape requirements while "smooth criminals" are gaming the system and still walking from one company to another in the Bay Street jungle. Retail investors are running in herds from one hot tip to another and losing all their money in the process. 

We can and must improve our market place all together by amplifying this discussion which we started as our initiative as The Mining Alliance Of Trust. On one side, all regulators must be open to the market participants and help them first and advise how to organise efficiently the trustworthy business in junior mining. They should not just seek to punish those who get caught the first time in the crossroads of some innocent mistakes. On another side, companies must really embrace regulations. Here I must say, that from my personal experience, I have only very positive encounters with all regulators, they are all very open and ready to help. We have to make a few improvements just to make it more user-friendly.

The very simple and helpful idea can be the systematic friendly review of the Companies by the regulators in order not just to find what to punish for, but to help these companies properly present their projects and avoid any innocent mistakes. This system is already in place for news releases with IIROC and I do recommend all companies to use it by sending news releases always to IIROC first.




Another very important step can be done with the new industry standard for Corporate Secretaries in Canada. BRE-X scandal has brought us Qualified Person certifications and NI 43-101. But we will not be able to rebuild the trust of the junior mining industry in Canada and bring the new generation of investors if Vancouver will remain The Wild West of mining. I believe that in order to solve this situation Corporate Secretary must be licenced as Auditors and Lawyers. They must be signing every news release on Corporate Material Information Disclosure as QPs do when it is necessary on technical disclosure.




For example, TNR Gold has our Continuous Disclosure, Confidentiality and Insider Trading Policy approved by the Board and Communication Protocols in place when all our news releases are prepared and approved by Corporate Secretary, signed by QP when required and can be released only by Corporate Secretary after being approved by Executive Chairman. But companies and regulators can do only so much protecting investors. Investing is a job and must be taken seriously, it requires very specific skills, discipline and making your homework every day. Respect your money.

Everybody is talking super smart during the cocktail parties about investing in mining but many are salivating about speculation and investing in the drill holes not in the companies in junior mining. Respect your money. #DYOR. Do Your Own Research and start with people and their history - avoid at all cost flying with kamikaze pilots. You have very different goals. The Same Boat must be the concept which is checked out first - should you even spend more time on your Due Diligence? 




You can find a lot of very important questions for your DD of the mining companies on the charts on this blog. The first and most important: Who are the principals and major shareholders? Are they miners, entrepreneurs or banksters? How long have they been in the mining business? Are they building the junior mining company or financial pyramid where average investor is lost in the amount of the different debt instruments and "ticking time bomb of delayed dilution"? How management is treating shareholders? Has the company become the candy store for the "super smart" executives syphoning all money back to them as interest payments, fees and commissions? Is the company diluting existing shareholders like there is no tomorrow just to keep it "as going concern"? What is a business plan? What is the burn rate in order to reach the milestones of this business plan? Have the company become a "drilling paradise" when naive investors are waiting for a golden dream intersection while management is drilling through shareholders pockets - spending all the raised money on the drilling by owned by them geological services or drilling company? 





It looks like a lot of questions? But we are talking here about your money - does it deserve your respect? The entry point in any new investment will define the success of your investment. Start with people in order to weed out all the ones where you should not waste your time anymore. As Warren Buffett has brilliantly put it: "You can't make a good deal with a bad person", I think that we can Trust him on this one. 






The Mining Alliance Of Trust: How To Cross The Digital Divide And Finance Tesla Energy rEVolution.





I would like to talk today about the very important issue - the Trust in our mining community. Not just Corporate Governance, Corporate Values, Continuous Disclosure and best industry practices guided by IIROC and BCSC, but very simple, clear and rock-solid term - Trust. You either have it or you don't. 

Today, after Nemaska Lithium announcement yesterday, we will have this issue painfully remanded to so many. In our mining business, as we have discussed numerous times, we inherently have numerous risks which are already presented in our business model: geological, economic, financial, operational, political including resource nationalism - the list goes on and on. The main question is how you can manage these risks, they are not just going away. And everything starts with people - there is no place for any bad actors in our business, we have enough of all other risks already. Every burnt investor is lost for our industry forever. Gold Bugs are literally dying and Millenials are chasing Crypto Bubbles.

We must build The Mining Alliance of Trust - we must build the new EcoSystem, the new network for mining in order to finance the production of critical materials for the Tesla Energy rEVolution. This new EcoSystem must be based not on "likes" or century-old clubs, but on Trust. Sounds like a dream? It is the dream - like everything else - but this one is beautiful.

We need every single dollar of capital available to finance Tesla Energy rEVolution and Electrify all our Energy and Transportation. We must clean our act and weed all bad actors out of the system. We need The Mining Alliance of Trust with Chair as Rob McEwen if he accepts. John Davies' The Code: Honour, Commitment and Loyalty and The Same Boat must be the guiding values and principals. Own what you are talking about, treat others money like yours. We are facing China, they are not enemies, they are Friends, but Africa is gone already and South America is next. Read more.


Friday, 29 March 2019

TNR Gold Shotgun Project: Gold In The Alaskan Elephant Country - Alaska's Donlin Gold Project Receives Crucial Permits




Gold In The Alaskan Elephant Country: Kirill Klip On TNR Gold’s Shotgun Gold Project In Alaska.





"The Company's strategy with the Shotgun Gold Project is to attract a partnership with one of the major gold mining companies. TNR is actively introducing the project to interested parties," commented Kirill Klip, Executive Chairman of TNR. "We may be at the beginning of a great discovery. There is a clear path on how to move this project forward using the geological and geophysical research currently available to target drilling to expand the resource and form the basis of a preliminary economic analysis. The next step is to acquire a partner that shares our vision and recognizes the growth potential and value to be added to the Shotgun project over time."





Why More Gold M&A Is Coming: GEM Royalty TNR Gold Presentation - Gold In Alaskan Elephant Country.





Barrick Gold is developing together with NovaGold 40MOZ giant Donlin Gold in Alaska - "arguably the most important Gold project in the world." So where will you be looking for the elephants? Maybe in the Alaskan Elephant Country. Barrick Gold received crucial permits to advance Donlin Gold last week and now this story will be getting more and more interesting.



LEGAL DISCLAIMER

Please read legal disclaimer. There is no investment advice on this blog. Always consult a qualified financial adviser before any investment decisions. DYOR.






PDAC 2019: TNR Gold Invites Expressions Of Interest For Shotgun Gold Project, Alaska.




"The Company's strategy with the Shotgun Gold Project is to attract a partnership with one of the major gold mining companies. TNR is actively introducing the project to interested parties," commented Kirill Klip, Executive Chairman of TNR. "We may be at the beginning of a great discovery. There is a clear path on how to move this project forward using the geological and geophysical research currently available to target drilling to expand the resource and form the basis of a preliminary economic analysis. The next step is to acquire a partner that shares our vision and recognizes the growth potential and value to be added to the Shotgun project over time."


LEGAL DISCLAIMER

Please read legal disclaimer. There is no investment advice on this blog. Always consult a qualified financial adviser before any investment decisions. DYOR.





The Heartland Institute:

ALASKA’S DONLIN GOLD PROJECT RECEIVES CRUCIAL PERMITS

MARCH 21, 2019
By Duggan Flanakin
The Donlin Gold project, a joint venture of Novagold Resources Alaska Inc. and Barrick Gold US Inc., is closer to becoming a reality with the state of Alaska having issued two critical permits.
The Donlin Gold project, a joint venture of Novagold Resources Alaska Inc. and Barrick Gold US Inc., is closer to becoming a reality with the state of Alaska having issued two critical permits.
The proposed mine, which is estimated to hold 39 million ounces of gold, is in the Yukon Kuskokwim region of Alaska, 280 miles west of Anchorage. The mine is expected to have an operational life of at least 27 years.
Waste Treatment, Site Recovery
The Alaska Department of Environmental Conservation approved Donlin’s waste management permit detailing how solid, liquid, and hazardous waste from mining operations will be handled. In addition, Alaska’s Department of Natural Resources (DNR) approved the mine’s reclamation permit specifying the steps its owners must take to restore the site after the mine closes.
As a requirement of its permits, Donlin guarantees to reclaim and provide long-term care and maintenance of the mine site, including water management and treatment. Donlin’s owners will also provide a $322 million bond to cover site reclamation and water management and treatment.
Unique Wetland Agreement
Donlin’s principals also agreed to protect wetlands owned by the Alaska Mental Health Trust Authority in the Cook Inlet area, to satisfy a requirement the companies offset the acreage the mine would occupy. The proposed mine would disturb about 2,800 acres of southwest Alaska wetlands, and the agreement would provide offsets for about 2,000 acres.
The wetlands agreement, according to Alaska’s Energy Desk, is the first of its kind for the Health Trust Authority and requires Donlin Gold to pay $200,000 to the trust, plus additional payments each year for 10 years while the companies decide whether to proceed. Once operations begin, Donlin Gold will pay another $1.3 million to the trust to preserve the 2,000 acres for 99 years.
Before beginning operations, Donlin still has to secure infrastructure permits for temporary roads, fiber optic lines, and pipelines to carry fuel, likely natural gas, to the project. The project must also obtain rights of way, water rights and temporary water use authorizations, and a dam safety certificate.
Public Benefits of Gold Mining
With current spot gold prices hovering above $1,300 per ounce, the project could yield gold worth more than $50 billion during its lifetime. Two other Alaska gold mining operations—the Fort Knox gold mine north of Fairbanks and the Pogo gold mine near Delta Junction—are currently providing high-paying jobs for Alaska residents.
Alaska Policy Forum Director of Operations Larry Barsukoff says jobs and revenues from the Donlin Gold project would bolster the local and state economies.
“The Donlin project represents a tremendous economic opportunity for the residents of the Yukon Kuskokwim area,” Barsukoff said. “The Alaska Policy Forum supports responsible development of natural resources, is excited to see the project move through the permitting process, and looks forward to work starting in the near future.”
Duggan Flanakin (dflanakin@gmail.comwrites from Austin, Texas.