Sunday, 17 June 2018

Lithium Race And Tesla Energy rEVolution: Proper Due Diligence Is The First Step To The Successful Investment In Any Junior Mining Company.




Every investor is making two the most important decisions for her investment: the first time when buying and the second time when selling such investment. The proper due diligence is the first step to the successful investment in any junior mining company.

Protection of shareholders and potential investors must be the first duty of every CEO and Board of Directors, but you should never rely on it solely as an investor.

One of the first steps of such DD, which I would always recommend is a letter to Legal Counsel and Corporate Secretary of the Company seeking financing.

Among the most important questions should be the following:

1. Request to provide minutes of the Board of Directors Meeting approving financing.

2. Have any of the Directors dissented from approval of the financing and why if it is the case?

3. Have any of the Secured Creditors or Debenture holders voted against granting General Security Agreement if it is the part of the Debt financing?

4. Are there any claims or potential claims against the Company, Directors and Management?

5. In case of participation of Insiders of the Company in the financing, can Legal Counsel confirm that approval of such financing was done appropriately without any violations of the security law?

6. In case of the exemption under which such financing has been conditionally approved, does it still apply to your particular case?

Corporate Governance is very important for all our industry: Clean Energy must be done with Clean Hands.





Sunday, 10 June 2018

Tesla Energy rEVolution: The Catalyst - Elon Musk Expects Cost Below $100 Per kWh For Lithium Battery Cells This Year And For Battery Packs in 2020.



In my opinion, it was the most important announcement for Tesla Energy rEVolution made by Elon Musk at the Tesla's shareholders meeting this month. Finally, our Holly Grail for electric cars is within reach! Even if it will end up to be "Elon Time", we can expect that Lithium Batteries' cost will drop below $100 per kWh in a couple of years! It means that 100 kWh Lithium Battery will cost only $10k. Just compare it to the $35k price tag on the 70 kWh Tesla batteries for the first Model S.





The rule of thumb in the industry is that lithium battery represents 1/3 of electric car cost. Tesla Model 3 priced at $35k and with a healthy margin for Tesla will be possible with an increased volume of production. Actually, tear down in Germany, which Elon Musk called one of the best reports, has found that cost of materials and labor for Model 3 in the range of $28k. Elon Musk has twitted later that this price for Tesla Model 3 can be reached with 10k production rate per week.




Tesla is looking for a location for Tesla Gigafactory in Europe and is very close now to the announcement of its Gigafactory in China and we have discussed it at length before. After the largest investment in Lithium Market by Chinese Tianqi Lithium of $4B dollars by buying 24% stake in Chilean SQM the grip of China on Lithium Supply is only getter stronger.





The West is very slow to address this situation and control of all the best projects are going to those who are willing to invest in the future of Energy rEVolution. There was always Oligopoly in charge of Lithium Kingdom, now it becomes The Lithium Empire and China is already The Centre of Lithium Universe. Companies like Tesla or NorthVolt which is preparing to break ground for the largest Lithium Batteries plant in Europe will be competing with the military machine "Made in China" for the security of Lithium Supply.




Chinese companies are taking over all chocking points in Lithium Supply Chain and this year increasing this concentration of power. We must be ready that Trade Wars will only add gas to the fire. Control of $3B Lithium Market gives China the control of disruption of $12T industries of Energy and Transportation. There will be always "Fast and Furious" banksters in the West who are ready to sell everything and everybody for a buck. The Lithium Wars have started already and Hunting Season is ON.




Security of Lithium Supply is everything now and understanding of the Copper place in Tesla Energy rEVolution will be coming next. We call our company GEM Royalty Co.: Green Energy Metals Royalty Company and my dream is to build it up on the base of TNR Gold to participate in this Energy rEvolution. We have started with Security of Lithium Supply. Now in our carefully crafted portfolio, we have Royalties on one of the largest Copper deposits in the world - Los Azules in Argentina under the operation of McEwen Mining and on Mariana Lithium under the operation of Ganfeng Lithium. Shotgun Gold in Alaska is the next step and we are looking for the strategic partner of the McEwen caliber to advance this opportunity in Alaska.





InvestorIntel: TNR Gold Fine Tuning Royalty Model For Green Energy Metals.




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.

InvestorIntel:

TNR Gold Fine Tuning Royalty Model For Green Energy Metals.





 | MAY 08, 2018 |


Renowned mining investor Frank Holmes has spoken out about his fondness of mining royalty companies.
In terms of value proposition, they outperform mining equities and serve the important role of connecting exploration plays with financiers during lean bear markets, he says.
Kirill Klip, CEO and President of TNR Gold Corp. (TSXV: TNR), fell into this business model when he bought shares in gold mining royalty company Royal Gold for about $5 each, back when gold traded at $300 an ounce (it hasn’t traded in the $300s since 2003). He cashed out of that investment at over $70 a share and has been hooked on the royalty model ever since, where royalty proceeds funnel into new opportunities, he told InvestorIntel.
Klip says his version of a royalty company is slanted towards metals with high exposure to usage in electrical vehicles – lithium, copper, and even gold. His most mature investment to date is a position in International Lithium Corp. (TSXV: ILC), in which TNR holds a 14.1% equity interest after convertible debentures and warrants are exercised and a 1.8% net smelter royalty (NSR) on the Mariana brine project in Argentina. The key to this project is the involvement of joint venture partner Ganfeng Lithium Co., one of China’s largest processors of the material. Read more.

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.




Thursday, 7 June 2018

GEM Royalty Co. TNR Gold Shotgun Gold Project: Gold In Alaskan Elephant Country.




InvestorIntel: TNR Gold Fine Tuning Royalty Model For Green Energy Metals.


"The third major component in TNR’s portfolio is the Shotgun gold project, located close to NovaGold and Barrick Gold’s Donlin project in Alaska. Early resource numbers suggest the project holds 20.7 million tons of ore with an average gold grade of 1.06 grams a ton, with a 0.5 g/t cut-off grade. Barrick and NovaGold’s project obtained a key environmental approval from the U.S. Army Corps of Engineers in April, indicating the government of Donald Trump is more amenable to mining in Alaska. Once again, external factors are moving in TNR Gold’s favor. 
Klip’s next step with Shotgun is to find an exploration partner of the same caliber as McEwen. One of TNR’s board members, Greg Johnson, founded NovaGold and was instrumental in the discovery of Donlin. He is entrusted with the task of finding that partner, Klip said. Don’t bet against TNR repeating the success it has had so far in ILC and Los Azules."




GEM Royalty Co.: TNR Gold Shotgun Gold - Barrick, NovaGold Project In Alaska Gets Key Environmental Approval.






This major Gold discovery in Alaska by NovaGold and Barrick Gold will not only put Alaska back on the radar screens of gold bugs and investors but can bring the long-expected turn around for the whole sector of gold mining and exploration companies.


Mining News:

TNR LOOKING TO JV SHOTGUN GOLD PROPERTY

"TNR Gold Corp. Feb. 2 said it is seeking a major gold mining company to become a joint venture partner on its Shotgun gold project in Alaska. 
Located about 110 miles of Donlin Gold and about the same distance northeast of Pebble, this property lies at the intersection of two trends known to host big deposits. 
TNR optioned Shotgun from Novagold Resources Inc. in 2002 and gained full ownership of..."









Gold In Alaskan Elephant Country: TNR Gold Shotgun Gold Project, Alaska.


Mineralization described on the Shotgun Gold project shares several key similarities both in timing and style of mineralization with that of the Donlin Gold project as well as other reduced intrusion-related gold systems within the Kuskokwim Gold Belt, which is included in the prolific Tintina Gold Province.

One of the founders of NovaGold Greg Johnson is on the Board of TNR Gold. We are working on attracting one of the major gold mining companies as our partner to develop Shotgun Gold.

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.

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.


Shotgun Gold


Property Geology

Mineralization described on the Shotgun Gold project shares several key similarities both in timing and style of mineralization with that of the Donlin Gold project as well as other reduced intrusion-related gold systems within the Kuskokwim Gold Belt, which is included in the prolific Tintina Gold Province.

One of the founders of NovaGold Greg Johnson is on the Board of TNR Gold. We are working on attracting one of the major gold mining companies as our partner to develop Shotgun Gold.






Mineral Resources

TNR commissioned GeoVector Management Inc. (“GeoVetor”) to produce a resource estimate on the Property in 2013. Geovector reported an Inferred Resource of 20,734,313 tonnes at 1.06 grams per tonne (“g/t”) gold for a total of 705,960 ounces gold (“Au”) using a 0.5 g/t Au cut-off grade (news release issued on April 22nd, 2013 and filed on SEDAR).

The main target at Shotgun is an intrusion-related gold system within the western extent of the Tintina gold province, Alaska.

We are looking for a strategic partner to advance this project. Alaska is back to business now, projects are moving forward and gold price above $1,300 will make our phone red-hot again.  There is already a substantial interest from financial institutions to Shogun Gold project.

Our new presentations are published on all our projects and you can find them on TNR Gold website.




Please Note that TNR Gold Qualified Person - as it is defined by NI 43-101, was NOT able to Verify and Confirm Any Provided Information by The Third Parties in the Articles, News Releases or on the Links embedded in this post; you must NOT rely in any sense on any of this information in order to make any Resource or Value Calculation, or attribute any particular Value or Price Target to any Discussed Securities.

Monday, 28 May 2018

Tesla Energy rEVolution Chronicles: China's Quest For Control Of Electric Cars And ESS Markets - Tianqi Makes Largest Lithium M&A With $4B Investment To Buy 24% Of SQM.





There are quite polarized views on the carefully designed and executed by China New Energy Plan to gain control of lithium market. This plan is nothing new and even we have been discussing it here for years, but recent M&A deals are becoming too big just to ignore it. China is executing its plan with military discipline in order to dominate and control lithium supply chain. In the Post Carbon World, if you can control $3B Lithium Market (by sales in 2017) you can control Disruption of $12T  Energy and Transportation Industries. I would like to point a few quite obvious, but very important facts which will affect Tesla Energy rEVolution for years to come.




Audi is talking about DIEsel cars again: in light of all recent news about new cheating devices found in numerous German auto brands and models, we can stop our celebration about Siemens joining NorthVolt project short of getting fully excited. This constant double talk by all major western automakers will make their production facilities multi-billon example of Stranded Assets left after Energy rEVolution and their business life will be left as the subject of history books very soon but, unfortunately, we will be paying the very big price for it. All American automakers are not much better as well - GM even had to announce that its "electrification plan" will continue, while they are all salivating in line and waiting for Trump Administration to roll back the emission standards.




Tesla is the only company in the West which is standing close to the mass production of electric cars and will be competing for Security of Lithium Supply with the military machine "Made in China".  Tesla is not getting any significant quantities of lithium as raw material now, lithium cells are supplied mainly by Panasonic and some by Samsung. We have discussed the importance of Kidman deal for Tesla just a couple of weeks ago. It is a great first real step to secure the lithium supply for the future, but it is very small and more must be done very fast here by Elon Musk.

"But only strong soft power of peace can withstand the kiss of the Dragon. We are talking here about the geopolitical map of the post ICE Age world when Oil power will be greatly diminished and trillions in stranded assets will the price to be paid for the years of the bloody domination by the West in the 20th century. We still can make it and Elon Musk can lead the way as usual."




Elon Musk's attempts to negotiate and built lithium producing facilities in Chile were enough to put all efforts of Tianqi to acquire that SQM stake in the ludicrous mode and official China was very fast to warn Chile to think twice before raising any concerns about concentration of Chinese control in the Lithium Market. We can talk all day whether Tianqi is just another miracle representing private capital enterprise from Communist China or not. And whether 24% of voting SQM shares will bring Tianqi any influence on the SQM operations - only the future will tell. The most important here is the fact that it was enough for China not to allow us even the opportunity to speculate whether Tesla can have any such control on the Lithium Supply in the future in case if Tesla would acquire this SQM stake.




Now lithium market is tested by this $4B largest Chinese acquisition so far. Ganfeng Lithium $1B plus Hong Kong IPO will be next and $500M FMC IPO of its Lithium division will be next in the Fall.




After the recent attack on the Lithium Market by hired banksters, who suddenly get overwhelmed by the coming Lithium Oversupply from SQM, the celebration for capital raise by Nemaska has come with tears and very heavy price of a dilution with 60% discount to the company's share price back in January. The lithium market is drying up for lithium juniors again and "healthy consolidation" can be the old mining "synergy saga" when "two holes put together are making an even larger hole".




Another very important trend now is rising very fast Capital cost ("CAPEX") for the new Lithium projects to be put into production. It used to be an industry standard that CAPEX of $15,000 can buy you a 1,000 LCE Lithium T/Y production per year. The most popular dream about 25,000 LCE Lithium T/Y production used to come with $375M - $400M financing plan. New revised FS for many lithium projects are coming with over $25,000 CAPEX per 1,000 LCE Lithium T/Y production. In case of Nemaska, this number can be even as high as $30,000. According to some reports, Nemaska has raised $1B for 33,000 LCE Lithium T/Y plant in Canada.

In order just to meet UBS target of 1,000,000 LCE Lithium T/Y production rate by 2026, we have to make a jump from 220,000 LCE Lithium T/Y produced in 2017. New production facilities for min 780,000 LCE Lithium T/Y must be built and if we assume the low CAPEX of $20,000 per 1,000 LCE Lithium T/Y industry urgently needs $16B - $20B in investment in the next 2-3 years. Part of it will come from SQM's expansion plan. Who will finance SQM? If it will be Tianqi we can expect the takeoff rights being attached and the rhetorical question who controls SQM lithium supply now will be answered. Where the rest of the capital for lithium industry will come from? This question will be the key to the Tesla Energy rEVolution in the next 2-3 years.




Regarding China, nothing is really "super sinister or outrages" so far, they will always participate in "50 cents trades" or maybe even make it happen, but the most important is that the West cannot just rely on China to supply its needs in critical commodities for the Post Carbon Economy. It is not a brave "free market theory" anymore: numerous reports are providing insights in the Lithium Universe in China now and that Chinese EVs will be allowed enjoying government subsidiaries only in case if they are representing "Made in China" in all major categories including Lithium Batteries and the most advanced technology - long-range Battery Electric Vehicles ("BEV").




The future of Tesla Energy rEVolution, disruption and electrification of $12T Energy and Transportation Industries and Post Carbon Economy depend on Security of Lithium Supply. After the major $4B investment by Tianqi buying 24% of SQM China's grip on the Lithium Market is only getting stronger. Only much needed $16B - $20B of investments in Lithium Market in the next 2-3 years can bring some balance to this tightly controlled market and prevent the total dependence on China to produce and provide Lithium Batteries for the Electric Cars and Energy Storage Systems ('ESS").

"Looking ahead, Klip predicts, "Lithium-producing nations will ban exports of lithium, and only export rechargeable batteries. If that happens, China will monopolize lithium because of its vested interest in the product." 
If the price of lithium hits the roof due to low supply, China and only China will be able to secure cheap lithium, and proceed with development of rechargeable batteries and EV. That is the predicted scenario that is being quietly talked about by those in the know."       
The Mainichi.






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.

Tesla Energy rEVolution: TNR Gold CEO On The Beginning Of A Megatrend Led By Electric Cars.





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.


Introducing GEM Royalty Co. - The Green Energy Metals Royalty Company TNR Gold Corp.




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.


InvestorIntel:








 | MAY 08, 2018 |


Renowned mining investor Frank Holmes has spoken out about his fondness of mining royalty companies.
In terms of value proposition, they outperform mining equities and serve the important role of connecting exploration plays with financiers during lean bear markets, he says.
Kirill Klip, CEO and President of TNR Gold Corp. (TSXV: TNR), fell into this business model when he bought shares in gold mining royalty company Royal Gold for about $5 each, back when gold traded at $300 an ounce (it hasn’t traded in the $300s since 2003). He cashed out of that investment at over $70 a share and has been hooked on the royalty model ever since, where royalty proceeds funnel into new opportunities, he told InvestorIntel.
Klip says his version of a royalty company is slanted towards metals with high exposure to usage in electrical vehicles – lithium, copper, and even gold. His most mature investment to date is a position in International Lithium Corp. (TSXV: ILC), in which TNR holds a 14.1% equity interest after convertible debentures and warrants are exercised and a 1.8% net smelter royalty (NSR) on the Mariana brine project in Argentina. The key to this project is the involvement of joint venture partner Ganfeng Lithium Co., one of China’s largest processors of the material..."


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.

Friday, 18 May 2018

GEM Royalty Co. TNR Gold Los Azules Royalty Holding - Copper: Driving The Green Energy rEVolution.



InvestorIntel: TNR Gold Fine Tuning Royalty Model For Green Energy Metals.




"But the investment that could return really big bucks is another NSR that TNR holds in the Los Azules copper project in Argentina, currently being developed by former Goldcorp founder Rob McEwen. TNR holds a 0.36% NSR royalty on the project, which could return $35 billion over a 35-year mine life. A looming copper crunch as the market could move into structural deficit by 2020 means that major mining companies are hungry to pounce on attractive projects being developed by juniors. A preliminary economic assessment shows that Los Azules could deliver 415 million pounds (188,241 metric tons) of copper production a year for the first ten years of mine life with cash costs of $1.11 a pound, according to TNR.
“Investors are putting a larger discount on our cash flow because people do not expect that McEwen Mining will put this project into production,” Klip said. “All majors are looking for a good copper project and there is more and more interest.



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.

Tesla Energy rEVolution: TNR Gold CEO On The Beginning Of A Megatrend Led By Electric Cars.





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.

Introducing GEM Royalty Co. - The Green Energy Metals Royalty Company TNR Gold Corp.



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.


Copper: Driving the Green Energy Revolution