We have been discussing here for quite a while the ongoing Tesla Energy rEVolution and exponential growth of sales for electric cars. The secure supply lines for this rEVolution are starting with the production of Lithium raw materials by the Lithium mining industry. Even before the CoronaVirus pandemic, Lithium industry was starving for capital available for its development.
Now we have to make an enormous jump from just over 300,000 T of LCE produced in the last year to the required over 1 million T of LCE production annually by 2026. Even some major Lithium companies, like Tanqi Lithium from China, are struggling to deal with debt.
Others, like Orocobre, have been battling technical problems ramping up production of battery-grade Lithium for years and now are facing even more trouble with the falling prices for its products. Junior miners are fighting for survival. Not everybody will be able to cross this desert, only the strongest Lithium companies will make it. And the so much needed capital will not be the only obstacle in order to build the secure supply chains of this strategic commodity. Lithium industry is riddled with technical problems and other challenges.
Today you can have another perspective on the ongoing trends in the Lithium industry from this YouTube video produced by "EV Stock Channel". Howard Klein is diving deep into the lithium market and spelling out the internal drivers and dynamics of the Lithium supply chains. Digging through a lot of technical details you can start to appreciate the challenges all major players are facing now in order to meet the exponentially growing Lithium demand. Howard is talking about Lithium demand growing to 2 million T of LCE annual production by 2030.
It means that we have to accelerate the output from the recent level of production by almost 7 times in a short 9 years. Typical Lithium mine can easily take 5-7 years just to develop it if you have resources and capital available.
Listening to all the technical problems related to Lithium industry - starting with available capital and continued with numerous technical challenges which are unique to every project - you can better understand the leading role of the companies like giant Ganfeng Lithium from China.
Ganfeng Lithium is one of the major "Top Lithium 5" in the world who has secured capital, developed technology and is building its own resource base all over the world to meet this exponential Lithium demand. As a testament to the leading position in the market, they have already secured Lithium supply deals with Tesla, Volkswagen and BMW.
It looks like Ganfeng Lithium even managed to shake of the CoronaVirus fever and resumed its uptrend already as well. From the very early days, Ganfeng Lithium was taking strategic steps in order to build up its own Lithium raw materials base.
We started working with Ganfeng Lithium in 2009 at TNR Gold. Today, after many years of development and many dozens of millions of dollars invested in Mariana Lithium we are holding NSR Royalty on this project under Ganfeng Lithium management.
The Green Energy Metals Royalty and Gold Company is plugged into the Tesla Energy rEVolution with our unique business model. We do not have to contribute any capital to the development of this project. Analysts, like Dr Ryan D Long, are already applying some of their valuations to our Royalty Holdings.
Now the world is waking up to the realities of the post-pandemic economy and cheap Lithium batteries change everything. Electric cars are already cheaper to own than comparable ICE models. The ICE Age Is Over. Electric cars are better and will be cheaper to buy as well very soon. We have The World Just Before The Internet - we are entering the mass market for electric cars. This kind of unique investment opportunities comes once a generation.
I was very pleased to see that after the announcement of the increase in Lithium resources of more than 250% announced in February Ganfeng Lithium has published in their 2019 annual report: "The feasibility study on Mariana Lithium was completed in 2019, and environmental assessment and construction of the project are planned to be conducted". Below you can find more information about GEM Royalty TNR Gold for your own research.
Lithium Will Power Us For The Next 50 Years And Then Robots: Kirill Klip GEM Royalty TNR Gold Lithium Presentation May 2020.
"Kirill Klip, Executive Chairman of the Company commented, “We are very pleased to see this more than 250% increase in measured and indicated resources from the 2017 resource estimate at Mariana and that Ganfeng Lithium is advancing this project in Argentina towards further updated PEA and pre-feasibility studies. The Mariana Project preliminary economic assessment (“PEA”), as announced in our news release of January 28, 2019, was the first PEA on the project that provided a potential value for the total NSR Royalty from Mariana’s life of mine cashflow. TNR Gold does not have to contribute any capital for development of Mariana and our NSR Royalty does not depend on the size of ILC’s potentially diluted ownership in the Mariana Project. The 1.8% Mariana NSR Royalty is an important part of TNR Gold’s portfolio. The essence of our business model is to have industry leaders like Ganfeng Lithium as operators on the projects that will potentially generate royalty cashflows to contribute significant value for our shareholders.”
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 Mariana Lithium NSR Royalty Holding: Ganfeng Lithium - "The Feasibility Study Of Mariana Project In Argentina Was Completed In 2019, And Environmental Assessment And Construction Of The Project Are Planned To Be Conducted."
The supersonic boom has brought to us the great public news from China to brighten the universal gloom. Ganfeng Lithium has released publicly its Annual Report 2019 and we can finally find more public information on the development of Mariana Lithium.
We have the catalyst in place for TNR Gold NSR Royalty Holding on Mariana Lithium project under the operation by the giant from China Ganfeng Lithium.
"Kirill Klip, Executive Chairman of the Company commented, “We are very pleased to see this more than 250% increase in measured and indicated resources from the 2017 resource estimate at Mariana and that Ganfeng Lithium is advancing this project in Argentina towards further updated PEA and pre-feasibility studies. The Mariana Project preliminary economic assessment (“PEA”), as announced in our news release of January 28, 2019, was the first PEA on the project that provided a potential value for the total NSR Royalty from Mariana’s life of mine cashflow. TNR Gold does not have to contribute any capital for development of Mariana and our NSR Royalty does not depend on the size of ILC’s potentially diluted ownership in the Mariana Project. The 1.8% Mariana NSR Royalty is an important part of TNR Gold’s portfolio. The essence of our business model is to have industry leaders like Ganfeng Lithium as operators on the projects that will potentially generate royalty cashflows to contribute significant value for our shareholders.”
"The feasibility study of Mariana Project in Argentina was completed in 2019 smoothly, and environmental assessments and construction of the project were planned to be conducted gradually." Ganfeng Lithium Annual Report 2019.
"The feasibility study of Mariana Project in Argentina was completed in 2019 smoothly, and environmental assessments and construction of the project are planned to be conducted gradually." Ganfeng Lithium Annual Report 2019.
TNR Gold Reports On Royalty Holding: Ganfeng Provides Technical Report With Increase Of Measured + Indicated Resource To 4.41 Million Tonnes LCE At Mariana Lithium Brine Project.
Kirill Klip, Executive Chairman of the Company commented, “We are very pleased to see this more than 250% increase in measured and indicated resources from the 2017 resource estimate at Mariana and that Ganfeng Lithium is advancing this project in Argentina towards further updated PEA and pre-feasibility studies. The Mariana Project preliminary economic assessment (“PEA”), as announced in our news release of January 28, 2019, was the first PEA on the project that provided a potential value for the total NSR Royalty from Mariana’s life of mine cashflow. TNR Gold does not have to contribute any capital for development of Mariana and our NSR Royalty does not depend on the size of ILC’s potentially diluted ownership in the Mariana Project. The 1.8% Mariana NSR Royalty is an important part of TNR Gold’s portfolio. The essence of our business model is to have industry leaders like Ganfeng Lithium as operators on the projects that will potentially generate royalty cashflows to contribute significant value for our shareholders.”
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