Tuesday 30 June 2020

TNR Gold Royalty Holding On Los Azules Copper Project With McEwen Mining: "Copper Deposit Discovery Rate Remains Dismal, Says S&P."



Dr Copper is trying to tell us something after the best quarter on record.  It is very important to mention that this performance comes after a near-death experience during the outbreak of CoronaVirus. Pandemic is still here and with coming "Trillion-dollar Infrastructure Plans" Copper will have its place in the war against the deadly disease. Now you can better understand why I was talking about Copper Genius Club earlier in Spring




Mining Weekly draws our attention today to S&P report: "Copper deposit discovery rate remains dismal". Tesla Energy rEvolution collides with Copper Industry which was built by our great-grandfathers in the last century. 




Majority of the largest Copper operating mines are more than 70 years old. Copper Industry head grade is going lower every year. New major discoveries are coming few and far between. 




Resource Nationalism will bring its toll to this very concerning picture of the widening gap between supply and demand. 




Goldman Sachs was talking about "Severe Deficit" even before the pandemic, now we have even more delayed projects and mine developments.  




Any "return to normal" will be driving demand for Copper. I will not even calculate here "how many Copper door nobs can China install in the next 100 years to beat the virus". 




We have enough information with solid charts from industry leaders and "new-comers" like Barrick Gold, who is looking "for strategic copper" for the next phase of growth




In our very small interconnected mining world, we all are ready for the next phase of the brave "New World Without Any Order" which is run by the adepts of MMT theory. Now the noise of the money printing presses is overcoming the heavy machinery buzz, but it is not for long. The tide of Trillion dollars in QE and "Stimulus Plans" will be lifting mega yachts first, and the cargo ships next.




Our Team at TNR Gold have been working very hard these months and I am very pleased to report that we have survived and all Team is ready to Rock. Auditors gave us a clean bill of health and our website deserves the visit for all intrigued with our idea of building The Green Energy Metals Royalty and Gold Company




I would like to thank all our shareholders for your support and on your behalf all our GEM Royalty Team at TNR Gold. We have protected all our assets and counting down for the launch of our Story. GEM Royalty is on the launch pad ready for the next catalyst. 




There are only a very limited number of projects with the magnitude of Los Azules in the world which are opened for development. The Perfect Storm has reached the Gold market first and the Copper market is next. Rob McEwen is ready for a JV deal to move project fast forward into the development stage after receiving the bilateral agreement between Argentina and Chile supporting this development. 




TNR Gold is Plugged Into Energy rEVolution with our Lithium and Copper Royalty Holdings. This "Sleeping Giant" - as Rob McEwen calls Los Azules - is ready to be awakened by the industry majors and will provide the new catalyst for valuation for our NSR Royalty Holding on the entire deposit. Learn more about Copper and this unique market opportunity in the presentation below and do your own research as usual.  





Tesla Energy rEVolution And The Golden Age For Copper: Kirill Klip GEM Royalty TNR Gold Copper Presentation May 2020.




"Now it is time, at least judging from Nicholas Winton and Northstar brilliant charts, to dive into the Copper story again. FT reports: "Barrick Gold On The Hunt For Copper Deals." Barrick Gold's search for "Strategic Copper" was interrupted by Covid-19 pandemic, but now Mark Bristow is on his quest again. M&A deals we were talking about in January, are getting in the headlines. Below you can find the digest of our discussions which can help you with your own research on the value matrix among top world mining companies and world-class Copper mining assets. As you already know, TNR Gold has its own place among all these players and GEM Royalty is plugged into the Energy rEVolution with our Royalty Holdings on Los Azules Copper with McEwen Mining and Mariana Lithium with Ganfeng Lithium as JV Operator."







Please always read legal disclaimer. There is NO investment advice on any Kirill Klip feeds and blog. Always consult a qualified financial adviser before any investment decisions. 
Do Your Own Research.






TNR Gold GEM Royalty And Energy rEVolution: There Is Time To Sow And Time To Reap The Rewards - "Barrick Gold On The Hunt For Copper Deals."




There is time to buy and time to sell. Your entry point will always define the success of every investment decision you ever make. Buy low, sell high. It is simple. If you know the future or if you know how to do it. Nobody knows the future. So the best decision-makers in this world are always important to follow. And the big decision-makers of this world can bend the gravity and markets, and the money will follow. 


Chart by Nicholas Winton.


We have discussed with you Mark Bristow's - CEO of Barrick Gold - views on the internal drivers of the Gold Bull market and that the best Gold mining companies are "Self-funded Insurance Policies" in the world "gone mad" with MMT on steroids. 


Chart by Northstar.


Now it is time, at least judging from Nicholas Winton and Northstar brilliant charts, to dive into the Copper story again. FT reports: "Barrick Gold On The Hunt For Copper Deals." Barrick Gold's search for "Strategic Copper" was interrupted by Covid-19 pandemic, but now Mark Bristow is on his quest again. M&A deals we were talking about in January, are getting in the headlines. Below you can find the digest of our discussions which can help you with your own research on the value matrix among top world mining companies and world-class Copper mining assets. As you already know, TNR Gold has its own place among all these players and GEM Royalty is plugged into the Energy rEVolution with our Royalty Holdings on Los Azules Copper with McEwen Mining and Mariana Lithium with Ganfeng Lithium as JV Operator.


Chart by Nicholas Winton.



"TNR also holds a 0.36% NSR on the Los Azules Copper Project, located in San Juan Province of Argentina. The Los Azules Project is owned 100% by McEwen Mining Inc (NYSE:MUX) and is expected to be the 26th largest copper mine in the world once it reaches production. 
A PEA at the project completed in September 2017, demonstrated a post-tax NPV8 of US$2.2bn with a post-tax IRR of 20.1%. Based on the PEA figures the mine is expected to generate average revenue per annum of U$953mln, which could generate around US$3.5mln a year to TNR over 37 years."

Now investors can do their own research and start putting the different pieces into their own valuation puzzle. Rob McEwen has prepared Los Azules to the potential major JV deal in the copper space. Agreements between Argentina and Chile are signed in order to advance the Los Azules project and the new road is being under feasibility study. The new approach by Rob McEwen which he has articulated in order to jump-start the development is making a huge difference for any potential partners:

"McEwen Mining conference call, Robert McEwen -- Chairman and Chief Owner
Happy to. We had past discussions with a senior base metal producer. What we were looking for was recovering part of the cash we put in. We were looking for $100 million upfront that the partner would advance the project to feasibility and then into production and we would continue with an interest of 20% or 25% of the property going forward."

Needless to say that any potential deal will bring the new valuation drivers for all parties involved: McEwen Mining and TNR Goldas the project will be moving into the feasibility and construction stage. Development of Los Azules will provide enormous economic benefits for San Juan, which is ready to support this kind of responsible mining business for the benefit of proud people of Argentina. I have been calling Argentina the potential Energy Power House for many years, it can finally coming all together now."





Mining Weekly:


29th June 2020 BY: TASNEEM BULBULIA 

"Of the nearly 1.08-billion tonnes of copper resources discovered since 1990, only 8% is contained in deposits discovered in the past decade, a report published by S&P Global Market Intelligence shows.

The report outlines that 224 copper deposits have been discovered between 1990 and 2019 period, containing 1.08-billion tonnes of copper in reserves, resources and past production.

Of these, only 16 have been found in the last ten years, and only one since 2015, S&P points out.

S&P has been tracking the lower trend of new major discoveries for some time and says conditions have been worsening.

While S&P says this underperformance is mostly the result of less exploration for new discoveries, a portion of the shortfall reflects the additional exploration still required at recent discoveries to expand the endowment above the major discovery threshold.

To account for this, S&P estimates the amount of copper in discoveries will meet its criteria in the future. This has resulted in the amount of discovered copper increasing in recent years, with the total for the past decade having increased to 253-million tonnes.

While there is still an abundance of undeveloped discoveries, most are smaller or low grade, with relatively few high-quality assets available for development.  There is a lack of high-quality discoveries available for development, the report notes. 

Meanwhile, over the next five years, only seven of the undeveloped discoveries are expected to enter into production. 

Even when the additional exploration efforts are completed over the coming years, 2010 to 2019 is expected to remain the worst decade for copper discoveries, says S&P. It notes that one factor contributing to the lack of major discoveries is a key shift in focus within the exploration sectors, with companies focusing more on established assets.

Over the next decade, only three deposits discovered since 1990 are almost guaranteed to start production, as they are currently under development. A further four assets will likely come on line by 2030.

While there are enough quality assets being developed to meet increasing demand over the near term, additional assets will be required for the medium term as existing operations ramp down or close.

This means that companies of all sizes need to invest more in grassroots exploration to discover the deposits that will be required to supply demand 20 years from now.

REGIONAL BREAKDOWN

Latin America remains the most prolific region for copper discoveries, but the discovery rate is decreasing, the report notes.

The region hosts many of the world’s largest copper mines and accounted for almost half of the world's copper mines in 2019.

The region remained the top location for discoveries in the past ten years, with 24.5-million tonnes of copper discovered during the period; however, this is considerably lower than in any other decade since 1990.

Conversely, the discovery rate in Africa has increased considerably in the past ten years, accounting for one-quarter of the copper discovered during the period.

Further, although not traditionally prolific locations for copper discoveries, Canada and the US have languished over the past decade, with no major copper discoveries at all.

S&P says this trend is unlikely to change anytime soon, as there have been only ten copper deposits with initial resources in North America over the past five years, with none containing more than 100 000 t of copper. 

EDITED BY: Chanel de Bruyn CREAMER MEDIA SENIOR DEPUTY EDITOR ONLINE"




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