Monday, 13 November 2017

Frank Holmes: Car Manufacturers Are Electrifying Copper, “The Metal of the Future”.

Frank Holmes from U.S. Global Investors is providing his insight on The Red Metal Going Green. He is explaining to investors how the megatrend of Electrification of our Transportation and Energy systems is affecting the copper supply and demand picture already. This exponential growth in sales for electric cars has only just started and China is leading the way returning to the more sustainable growth based on the New Energy Plan.

Electrification of China and India will drive the next phase of the worldwide growth in EV fleet. India has announced that all new cars on sale will be electric by 2030 and they are taking it seriously making the first tender for 10,000 EVs to be supplied for the government ministries and agencies now. Transfer of the best technology for Lithium Batteries and Electric Cars will be next. China is already The Centre of The Lithium Universe and exercises its state-level New Energy Plan step by step with the military discipline, starting with securing a Lithium Supply Chain.

Cheap Lithium Batteries change everything. Electric Cars, Solar and Wind Power Generation will be leading 21st-century economy. We are talking here about the real Energy Security with Distributed Energy Generation. As with mobile communications, the whole subcontinents will skip "the fixed line phone" era straight into the future: no central power generation, but local distributed Solar and Wind Power Generation Systems. These systems will need a lot of new specific infrastructure with wiring mostly based on copper. The Red metal is going Green in the 21st century.

TNR Gold is Plugged-In into the Energy rEVolution with its stake in International Lithium and Royalty holdings in Lithium and Copper projects which are operated by the industry leaders like Ganfeng Lithium and McEwen MiningWe are building Green Energy Metals Royalty company.

TNR Gold: McEwen Mining Files Preliminary Economic Assessment For Los Azules Copper Project, Estimates Life Of Mine Undiscounted NSR Of $35 Billion.

TNR Gold holds 0.36% Net Smelter Return  Royalty on the entire Los Azules Copper project - USD $35.2 Billion is the undiscounted Net Smelter Return cash flow for the life of mine reported by McEwen Mining in its new PEA.

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

“The Los Azules PEA study for McEwen Mining is the first preliminary economic study that provides a potential value for the total net smelter return from the project’s life of mine cash flow. TNR’s 0.36% royalty on the net smelter return is an important part of TNR’s portfolio,” commented Kirill Klip, Executive Chairman of TNR. “Further advancement of this project and building on the results of the PEA will continue to contribute significant value for our shareholders.”

TNR Gold Royalty Holding Update After News by McEwen Mining On The Los Azules Copper Project, Argentina.

“We would like to congratulate McEwen Mining on a significant increase in the new resource estimations for copper, gold and silver at Los Azules Copper project, important upgraded quality of these resources in all categories and reported enhanced economics overall for the project,” commented Kirill Klip, Executive Chairman of TNR. “The PEA provided by McEwen Mining demonstrates a robust, high margin, rapid pay-back and long-life potential economics for the project and it will affect positively the potential implied valuation of TNR Gold’s royalty holding.”

Frank Holmes:

Car Manufacturers Are Electrifying Copper, “The Metal of the Future”

October 16, 2017
Copper is being called the metal of the future
As many of you know, copper is often seen as an indicator of economic health, historically falling when overall manufacturing and construction is in contraction mode, rising in times of expansion.
That appears to be the case today. Currently trading above $3 a pound, “Doctor Copper” is up close to 28 percent year-to-date and far outperforming its five-year average from 2012 to 2016.
Several factors are driving the price of the red metal right now. Manufacturing activity, as measured by the purchasing manager’s index (PMI), is expanding at a pace we haven’t seen in years in the U.S., eurozone and China. The U.S. expanded for the 100th straight month in September, climbing to a 13-year high of 60.8.
Speculators are also buying in response to word of copper shortages in China, despite September imports of the metal rising to its highest level since March. The world’s second-largest economy took in 1.47 million metric tons of copper ore and concentrates last month, an amount that’s 6 percent higher than the same month in 2016.

Why Copper Is the “Metal of the Future”

Why are we seeing so much copper entering China? One reason could be battery electric vehicles (BEVs), which require three to four times as much copper as traditional fossil fuel-powered vehicles.
China is already the world’s largest and most profitable market for BEVs, and Beijing is now reportedly working on plans to curb and eventually ban the sale of fossil fuel-powered vehicles, according to the Financial Times. This would place the Asian giant in league with a number of other powerful countries similarly crafting bans on internal combustion engines within the next 25 years, including Germany, France, Norway, the United Kingdom and India.
Because of the sheer size of the Chinese market, this move is sure to delight copper bulls and investors in any metal that’s set to benefit from higher BEV production. That includes cobalt, lithium and nickel.
According to Bloomberg New Energy Finance, BEVs will account for 54 percent of all new car sales by 2040. That year, China, Europe and the U.S. are expected to make up 60 percent of the global BEV fleet.
This could have a huge effect on copper prices over the next 10 years and more. With fewer and fewer large deposits being discovered, demand should accelerate from 185,000 metric tons today to an estimated 1.74 million tonnes in 2027, according to the International Copper Association.
These are among the reasons why Arnoud Balhuizen, chief commercial officer of Australian mining giant BHP Billiton, called copper “the metal of the future” in an interview with Reuters last month.
“2017 is the revolution year [for electric vehicles], and copper is the metal of the future,” Balhuizen said, adding that the market is grossly underestimating the red metal’s potential as BEV adoption surges around the world.

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