Thursday 30 November 2017

Chronicles Of Energy rEVolution. Mike Beck: Lithium - The Perfect Storm With An Unprecedented Demand Profile.



Today I would like to share this great interview with Mike Beck. His message is very clear and it is one of the best introductions to Energy rEVolution Supply Chains and 101 on lithium. Security of lithium supply is everything now. And I do agree that the perfect storm is coming very fast now. I cannot endorse the particular company discussed by Mike, as you already know where my heart belongs and where Ganfeng Lithium is JV partner. Do you own DD and welcome to the Energy rEVolution. Lithium Race is gaining momentum with big money looking for the best boats to enjoy the coming tide.




"The Economist" is dissecting Electric Cars phenomenon and why 2018 will be the tipping point for the coming mass market for EVs. "Dirty Secret" mentioned in this video is not a secret, but an Oil industry-funded promotion of another myth that electric cars are "powered by coal". We are not there yet, even if some politicians are trying hard to bring the "Clean Coal" back. Electric Cars are 50% cleaner in the US even with existing grid electricity generation mix and they are getting cleaner every year.  In 2018 electric cars will become cheaper to own than the ICE ones.





Please pay attention to the real New Energy Plan story developing in China and far-reaching geopolitical implications of this tectonic shift. China is The Center of The Lithium Universe and The Economist is only scratching the surface here. You can find more information on the links below. UBS is already talking about the surge in demand for Lithium ... by 2,898% "In A 100% EV World." We are moving very fast to the iPhone Moment for electric cars and China is already in control of the supply chain for the Energy rEVolution.






We are reaching the tipping point this year: convergence of technology, new players who bring competition and prices down; and anti-pollution movement by the most important countries for the automakers. DIEselGate was the last drop and auto lobby cannot just swipe it under the rug anymore, consumers are not buying "Clean DIEsel".






Tesla's rEVolution: The Dramatic Increase In Demand For Lithium Will Require Accelerated Production From All Known Reserves Of Lithium.



Tesla's rEVolution: The Dramatic Increase In Demand For Lithium Will Require Accelerated Production From All Known Reserves Of Lithium.

Kirill Klip, Executive Chairman of International Lithium Corp.




Tesla New Roadster And Electric Semi Truck.



I am a very strong believer in the ongoing fundamental shift in technology which is happening these days. We are entering the era of Post Carbon Economy. The Oil ICE Age is over: for centuries we have been burning things just to get the energy and it has been mostly oil for the last 100 years, but now we can produce electricity by using Solar and Wind Power Generation.





Electricity is the best and the most efficient form of energy known to us and now we can store it and use it when we really needed it. Cheap lithium batteries change everything. Electric Cars will become cheaper to own than comparable models of fuel-powered cars next year according to UBS. Tesla Model 3, with more than 400,000 advance reservations for purchase is starting the real mass market for electric cars. Now Bloomberg estimates that more than 200 models of electric cars will be available by 2020.






We are at the tipping point for the mass market of electric cars. It took us all human history to get to 1 million electric cars on the roads by 2015 and then less than a couple of years to double this EV fleet. I expect that in 2018, worldwide sales of EVs will exceed 1 million units per year.






We are in the exponential stage of the adoption rate for electric cars, but most of the investment banks who are following lithium batteries' supply chains are still estimating 5% - 10% of cars being sold in the next 5 years will be EVs. I have a different view: that all cars will be electric mush faster than a lot of people are anticipating. We are talking here about the disruption of $4 Trillion Transportation and $8 Trillion Energy industries. 

Energy storage for Solar and Wind power generation will be consuming, even more, lithium batteries than transportation in the future. Disruption of $12 Trillion industries is reliant on the lithium market which was last year around 200,000 T of Lithium Carbonate Equivalent ("LCE") in production terms. In monetary value, it was close only to $2.5 Billion dollars in sales even after the dramatic increase in lithium prices. 





This is why we are witnessing very strong prices this year, when spot prices in Shanghai are above $20,000 for both LCE and Lithium Hydroxide and long-term prices are reaching $15,000 per LCE T. This view of the ongoing fundamental shift and that The Switch is already happening, when millions of people will be buying electric cars, is finally making its way in the mainstream media and in the reports of government agencies and major financial institutions.









The views on the rate of adoption for electric cars can be different, but industry trends are already supporting this very bullish case for lithium. "Old Lithium Big Three": Albemarle, SQM and FMC "had to accept" the new aggressive players: Ganfeng Lithium and Tianqi from China. "The New Lithium Top Five" now looks more like: Albermarle, SQM, Ganfeng Lithium, Tianqi and FMC. But if we will be talking about lithium supply chain in terms of lithium chemical products used in lithium batteries, China is already in the lead and controls close to 75% of supply. For example, Tesla Gigafactory lithium supply chain goes all around the globe and back to China as well. And now there are 24 Lithium Megafactories announced to be built all around the world with the majority of them being located in China.





We are already witnessing the wave of consolidation in the sector in order to secure the supply of lithium as raw material, which is becoming critical. SQM is diversifying this year from brine lithium operations into hard rock lithium mining with its JV partner Kidman Resources in Australia following Albemarle. Tianqi bought 51% in Talison Lithium in Australia with Rockwood holding 49% in 2014 and after that Albemarle has acquired Rockwood and this way becoming partners with Tianqi.






Ganfeng Lithium, the largest integrated lithium producer from China, was very early in securing the supply chain for lithium raw materials. Ganfeng has acquired the strategic stake in International Lithium IPO in 2011 and now operates two JVs with ILC: Mariana lithium brine project in Argentina and Avalonia with lithium hard rock exploration in Ireland. Ganfeng has bought a stake in Neometals and in its lithium hard rock mining operations at Mt Marion lithium project in Australia in 2015. This year Ganfeng has bought a stake in Lithium Americas and its JV developing lithium brine operations with SQM in Argentina. Last spring Ganfeng acquired another stake in Australian lithium developer Pilbara Minerals, this time 5%, suggesting that Ganfeng is really after the security of supply. The main part of the deal is the off-take agreement for 160,000 T of lithium concentrate.




But M&A in the lithium sector can only redistribute the existing known resources of lithium. The next phase of the game to secure supply for the Energy rEVolution will the advanced exploration and new technologies to recover lithium. We are talking a lot about the new groundbreaking technologies for electric cars and lithium batteries. Now it is time to consider the most advanced technologies for the production of lithium as a raw material. The increasing usage of lithium batteries is driving the demand for lithium as a raw material and new extraction technologies will provide the technological advantage to the most progressive companies investing in the future.







My lower estimate for future demand is that 36 million tonnes of LCE (Lithium Carbonate Equivalent) must be produced by 2040 in order to meet the IEA's target for the 600 million electric cars necessary to keep global temperature increase below 2%. However, over 100 million tonnes of LCE will be needed if all new cars are to be electric by 2040, this being one of IMF's scenarios for the future. Now let's just start adding here the Energy Storage for Solar and Wind Power Generation.







Our starting point for electric cars is just over 1% of total auto sales in the world and only 200,000 tonnes of LCE produced in 2016. The dramatic increase in demand for lithium will require accelerated production from all known reserves of lithium and new resources will need to be found and put into production, this being crucial to the Energy rEVolution.





At International Lithium, we are very interested in processes developed for the recovery of Lithium Hydroxide directly from brine. Lithium Hydroxide is the highly sought strategic commodity which is used in lithium batteries as Tesla and Panasonic are doing for example at Tesla Gigafactory


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.





All latest information is available in Company's filings on SEDAR www.sedar.com




In September International Lithium has announced that it has received a final report, "Proof of Concept Study — Lithium Recovery Using Membrane Separation" (the "Study") prepared by Synexus (Pty) Limited of South Africa ("Synexus"). The Study was conducted utilizing (filtered) raw brine from the Salar de Llullaillaico, location of the Mariana lithium brine joint venture project ("Mariana") in Salta, Argentina. Results from the Study indicate that the selective recovery of lithium directly from raw (filtered) brine, with the simultaneous rejection of other cation and anion species, using a proprietary lithium selective separation process (the "technology") is possible. Lithium was selectively recovered from the raw brine to produce lithium hydroxide ("LiOH"), a high-value ingredient used directly in lithium battery manufacturing, as a final product.







Summary of Study Results:
  • The use of the technology presents a possible alternative to the natural evaporation process currently proposed at Mariana.
  • The technology could provide a process route to produce lithium hydroxide directly from the raw brine without the need to remove contaminants like magnesium by liming, as would be required in the natural evaporation process. 
  • Based on initial estimates, the technology can achieve higher recoveries than natural evaporation even with relatively low concentrations of lithium.*
  • Use of technology has the potential to enable a considerable increase in production rate compared to evaporative ponds. Lithium is directly removed from the brine and the (spent) brine can be returned to the basin with little effect on the water balance.* 
  • With further refining, the technology could also permit the recovery of potassium and other cations if desired.


Now Mariana JV partners Ganfeng Lithium and International Lithium are studying the results of this report and the best way to incorporate the advanced lithium extraction technologies into  Mariana Lithium development phase leading to Preliminary Economic Assessment and Pre Feasibility studies of the project. 



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.



TNR Gold Royalty Holding Update: Argentina And Chile Agree To Facilitate Development Of McEwen Mining's Los Azules Copper Project.




'The support and cooperation being exhibited by Chile and Argentina for potential mine development at Los Azules comes as very good news to us and signifies another important step in the development of one of the largest copper porphyry projects in the world,' commented Kirill Klip, Executive Chairman of TNR. 


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.

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


“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.”








McEwen Mining has released a very impressive new PEA on giant Los Azules Copper project located in San Juan, Argentina. Please note all disclaimers and that all this information is from public sources released by McEwen Mining. TNR Gold holds 0.36% NSR royalty on the entire Los Azules project. Rob McEwen has done a great job and Los Azules Copper now is even larger than before:

New Resources in all categories reported by McEwen Mining:

1. Copper is up from 19B lb to 29.5B lb - plus 55%
2. Gold is up from 3.42 Moz to 5.5 Moz - plus 61%
3. Silver is up from 108.7 Moz to 191.1 Moz - plus 76%

The quality of resource has improved as well, according to McEwen Mining:

Copper before was 28% Indicated to Inferred

Copper now is 53% Indicated to Inferred.

$2.2 Billion After-Tax NPV@8% and IRR of 20.1%


3.6 Year Payback at $3.00/lb. Copper and 36 Year Mine Life
415 Million lbs. Average Annual Copper Production For The First 10 Years
$1.11/lb. Copper Average Cash Production Cost (C1) For First 10 Years




 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 article; 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.




TNR, through its lead generator business model, has been successful in generating high-quality exploration projects in the Americas and Europe. With the Company’s expertise, resources and industry network, it identified the potential of the Los Azules copper project in Argentina and now holds a 0.36% NSR Royalty on the prospect.
At its core, TNR provides significant exposure to gold, copper and lithium through its holdings in Alaska (the Shotgun gold porphyry project) and Argentina, and is committed to continued generation of in-demand projects, while diversifying its markets and building shareholder value.
TNR is a major shareholder of International Lithium Corp. (TSXV: ILC) (“ILC”), a green energy metals company that was created through the spinout of TNR’s energy metals portfolio in 2011.  ILC holds interests in lithium projects in Argentina, Ireland and Canada. TNR is holding a Strategic Stake in ILC.
TNR retains a 1.8% NSR Royalty on ILC’s Mariana lithium property in Argentina. ILC maintains a right to repurchase 1.0% of the NSR on the Mariana property. The Company would receive $900,000 on exercise of the repurchase right. The project is being advanced in a joint venture between ILC and Ganfeng Lithium International Co. Ltd., a leading lithium product manufacturer seeking to secure its raw materials supply.

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.






TNR Gold:

TNR Gold Royalty Holding Update: Argentina and Chile Agree to Facilitate Development of McEwen Mining's Los Azules Copper Project


Vancouver, British Columbia (November 30, 2017) - TNR Gold Corp.(TSXV: TNR) ('TNR' or the 'Company') advises that the governments of Chile and Argentina have signed a protocol to facilitate the development of the Los Azules Copper project located in San Juan, Argentina. McEwen Mining Inc. ('McEwen Mining') owns 100% of the project and TNR holds a 0.36% royalty on the net smelter return ('NSR') of the entire Los Azules project.

The two countries signed a bilateral mining integration agreement in 1999. The purpose of this new protocol is to facilitate project-related activities in the border zone between San Juan province in Argentina and Limari province in Chile.

'The support and cooperation being exhibited by Chile and Argentina for potential mine development at Los Azules comes as very good news to us and signifies another important step in the development of one of the largest copper porphyry projects in the world,' commented Kirill Klip, Executive Chairman of TNR. 

Please refer to the recent Company news release issued on November 2, 2017; 'McEwen Mining Files Preliminary Economic Assessment for Los Azules Project, Estimates Life of Mine Undiscounted NSR of $35 billion,' for an update on TNR's royalty holding on the Los Azules project.



TNR Gold Corp. is working to become an energy metals royalty company. Over the past twenty-two years, TNR, through its lead generator business model, has been successful in generating high quality exploration projects around the globe. With the Company's expertise, resources and industry network, it identified the potential of the Los Azules copper project in Argentina and now holds a 0.36% NSR royalty on the prospect.

TNR is also a major shareholder of International Lithium Corp. ('ILC'), with current holdings of approximately 11% of the outstanding shares of ILC. ILC holds interests in lithium projects in Argentina, Ireland and Canada.

TNR retains a 1.8% NSR royalty on the Mariana Lithium property in Argentina. ILC maintains a right to repurchase 1.0% of the NSR royalty on the Mariana Lithium property of which 0.9% relates to the Company's NSR interest. The Company would receive $900,000 on execution of the repurchase. The project is currently being advanced in a joint venture between ILC and Ganfeng Lithium International Co. Ltd.

At its core, TNR provides significant exposure to gold, copper and lithium through its holdings in Alaska (the Shotgun gold porphyry project) and Argentina, and is committed to continued generation of in-demand projects, while diversifying its markets and building shareholder value.

On behalf of the Board of Directors,

Kirill Klip
Executive Chairman


For further information concerning this news release please contact +1 604-700-8912
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statement Regarding Forward-Looking Information
Except for statements of historical fact, this news release contains certain 'forward-looking information' within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as 'plan', 'expect', 'project', 'intend', 'believe', 'anticipate', 'estimate', 'will', 'could' and other similar words, or statements that certain events or conditions 'may' or 'could' occur, although not all forward-looking statements contain these identifying wordsSpecifically, forward-looking statements in this news release include, but are not limited to, statements made in relation to: TNR's corporate objectives, changes in share capital, market conditions for energy commodities, the results of McEwen Mining's PEA, and improvements in the financial performance of the Company. Such forward-looking information is based on a number of assumptions and subject to a variety of risks and uncertainties, including but not limited to those discussed in the sections entitled 'Risks' and 'Forward-Looking Statements' in the Company's interim and annual Management's Discussion and Analysis which are available under the Company's profile on www.sedar.com. While management believes that the assumptions made and reflected in this news release are reasonable, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking information. In particular, there can be no assurance that: TNR will be repay its loans or complete any further royalty acquisitions or sales; debt or other financing will be available to TNR; or that TNR will be able to achieve any of its corporate objectives. Given these uncertainties, readers are cautioned that forward-looking statements included herein are not guarantees of future performance, and such forward-looking statements should not be unduly relied on.
In formulating the forward-looking statements contained herein, management has assumed that business and economic conditions affecting TNR and its royalty partners, McEwen Mining Inc. and International Lithium Corp. or its joint venture partner, Ganfeng Lithium International Co. Ltd. will continue substantially in the ordinary course, including without limitation with respect to general industry conditions, general levels of economic activity and regulations. These assumptions, although considered reasonable by management at the time of preparation, may prove to be incorrect.
Forward-looking information herein and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this cautionary statement. Except as required by law, the Company assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change."

Tuesday 28 November 2017

International Lithium Closes Private Placement of Convertible Securities.




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.

All latest information is available in Company's filings on SEDAR www.sedar.com


International Lithium:

International Lithium Closes Private Placement of Convertible Securities

"Vancouver, B.C. November 27, 2017: International Lithium Corp. (the “Company” or “ILC”) (TSX VENTURE: ILC) announces that it has closed the previously announced private placement of convertible securities to raise proceeds of $700,000 from a non-arms’ length party, being a significant shareholder of the Company, TNR Gold Corp. (“TNR”). The convertible securities bear interest at the rate of 15% per annum, payable January 31 of each year, and have a maturity date of January 31, 2019.  The lender may convert at any time, all or a portion of the principal into common shares of the Company at a price of $0.14 per common share. The Company has the right to repay the convertible loan, at any time on the last business day of the month, upon 10 days’ notice to the lender.
The proceeds of the private placement will be used for general working capital purposes.  All private placement securities will be restricted from trading for a period of four months from closing.
The issuance of private placement securities to a non-arms’ length party constitutes a related-party transaction under under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). Because the Company’s shares trade only on the TSX Venture Exchange, the issuance of securities is exempt from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to Subsection 5.5(b) of MI 61-101 and exempt from the minority approval requirements of Section 5.6 of MI 61-101 pursuant to Section 5.7(b). The post-closing ownership in ILC by TNR, before conversion of the debenture, is 9,252,390 shares, equivalent to approximately 10.1% of the outstanding common shares of the Company. Should the convertible debenture held by TNR be exercised, its holdings would be 14,252,390 shares, equivalent to approximately 14.8% of the issued common shares. The Company did not file a material change report 21 days prior to the closing of the private placement as the details of the participation of insiders of the Company had not been confirmed at that time.
On behalf of the Board of Directors, 
Kirill Klip
Executive Chairman 
For further information concerning this news release please contact +1 604-700-8912
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statement Regarding Forward-Looking Information
Except for statements of historical fact, this news release contains certain “forward-looking information” within the meaning of applicable securities law. Forward-looking information or forward-looking statements in this news release include: the timing and anticipated results of environmental impact studies and pump tests, timing of preliminary economic studies on the Mariana project, the expectation of feasibility studies, lithium recoveries, modelling of capital and operating costs, and the Company’s continued interest in the Mariana project. Such forward-looking information is based on a number of assumptions and subject to a variety of risks and uncertainties, including but not limited to those discussed in the sections entitled “Risks” and “Forward-Looking Statements” in the interim and annual Management’s Discussion and Analysis which are available at www.sedar.com. While management believes that the assumptions made are reasonable, there can be no assurance that forward-looking statements will prove to be accurate. Should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking information. Forward-looking information herein, and all subsequent written and oral forward-looking information are based on expectations, estimates and opinions of management on the dates they are made that, while considered reasonable by the Company as of the time of such statements, are subject to significant business, economic and competitive uncertainties and contingencies. These estimates and assumptions may prove to be incorrect and are expressly qualified in their entirety by this cautionary statement. Except as required by law, the Company assumes no obligation to update forward-looking information should circumstances or management’s estimates or opinions change. 
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available."