Monday 6 August 2018

TNR Gold Los Azules Copper Royalty With McEwen Mining: Tesla Supercharging Mining M&A - Copper Supply Woes On Show With World No. 2 Mine Output To Halve.

Bloomberg is reporting on the further stress coming to the copper supply side. We have the manifestation of the new commodity investment supercycle when two megatrends are converging to create the tectonic shift in the marketplace. The Switch to Renewable Energy Generation and sustainable consumption with Solar, Wind and Electric Cars will demand the secure supply of Green Energy Metals like Copper and Lithium. And this explosive growth in demand for copper will be met with supply side struggling with Resource Nationalism, Labor distractions and head grade going lower all across the industry.

“The problems facing copper supply are meaningful, widespread and generally underestimated," said David Lilley, managing director of Drakewood Capital Management. "It seems like wherever you look there are challenges be they political, labor unrest, under-investment, ore-grade depletion or some combination of them all." Bloomberg.

Bloomberg is showing these technical challenges for Freeport McMoran at Grasberg copper mine very well today. Years of junior mining sector starvation for capital for exploration resulted in a lack of supply for the new major projects to replenish the production pipelines. "The World's Biggest Miners Want More Copper, But Nobody's Selling."

New projects must be developed and the new wave of M&A will help to redistribute the known resources. But this mining development will take years to bring production online, price shocks are imminent and the Copper price will have to go much higher to allow these new projects development. Next, we can expect the revaluation of copper in the ground for the juniors holding promising properties going into the development stage.

And now majors, finally, have some money to spend on the new acquisitions. In the sharp contrast to the junior mining situation, major mining companies have managed to repair balance sheets. "World's top miners have strongest balance sheets in years." Diversification from coal assets must help as well with pressure from institutional investors. The copper investing game when "Red Metal Goes Green" will be the new mantra for pension funds seeking stable returns with a sustainable profile for the next decade.

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TNR Gold holds NSR Royalty on Los Azules with McEwen Mining with a very impressive USD $127 million potential undiscounted cash flow presented by McEwen Mining in their PEA. I must mention that TNR Gold QP was not able to verify any data presented by McEwen Mining and no indication of values should be taken as an investment advice here, as usual.

TNR Gold Los Azules Copper Royalty With McEwen Mining: Supercharging The Power House In Argentina - Barrick Gold And Shandong To Take Partnership To The Next Level.

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.

We are discussing here in great detail how Chinese companies are circling the Globe in order to secure supply chains for the New Energy Plan leading China into the Post Carbon Economy leadership now. They are using every market opportunity to pick up the best mining projects in critical commodities for Tesla Energy rEVolution: Lithium, Copper and other Green Energy Metals.

Long-term thinking and state level support allows Chinese companies to have an overwhelming competitive advantage over short-term minded Western competitors. Half of Africa is already speaking Mandarine and Argentina is rising next to become the true Power House of the Green Energy rEvolution. Currency crises will come and go, nothing will be perfect, but Argentina is back to business with its proud people and the great mining projects will stay and will be developed.

Today we have another confirmation of the vision of Daniel Meilan, Secretary of Mining of Argentina: Pascua Lama is going forward with the new announcement of the very strong partnership between Barrick Gold and Shandong Gold from China. Argentina gave the green light for the project and Chile will follow after the environmental concerns will be met.

On the Los Azules side, McEwen Mining has revamped its website putting a lot of new information about this "sleeping giant". The new road to the project is being under construction now and potential JV partners are being dated in order to move the project to the development stage. Mining Secretary Daniel Meilan was talking about Los Azules as the next huge international business opportunity for Argentina after Pascua Lama's development challenges with Chile. And he has delivered his part of the promise: last year the mutual protocol was signed between Argentina and Chile about the support for the development of Los Azules. Now Rob McEwen's Midas touch will be in play - what international mining house can he engage to unlock the value of his "sleeping giant"?

The winter is warming up in Argentina and we can have a very hot spring for the M&A deals in Southern Hemisphere following the heatwave all over the Globe. Trade Wars will come and go and the smart money will be moving forward. There is just one planet Earth and we have our investment supercycle in place with supercharged new market dynamics. On one hand, we have to protect our planet and build very fast the new infrastructure for the Tesla Energy rEVolution and on another hand, the secure supply of Green Energy Metals becomes crucial while new discoveries are getting harder and harder to find and even more challenging to put into production.