Elon Musk And Lithium: "Salt On A Salad"? - It Looks More Like Water In The Desert Needed For Tesla To Continue To Grow To The Sky.

Elon Musk is talking about lithium again. This time around even the laziest investors are already chasing everything with lithium in their name. Lithium prices have separated themselves from any ideas about the dirt and dust which is lying around in Nevada "full of Battery Grade Lithium" and just waiting to jump straight into the battery packs.

 

Lithium prices jumped first through the roofs of the empty warehouses in China and after that went Space X vertical to the new all-time high of USD$78,300 per T of LCE spot price in the Chinese domestic market.

 

 

Very soon many investors will realise the danger of the digital divide between them and their money during the electrification of our transportation and energy sectors. The dreams about Lithium are driven by the real desire of automakers to have it yesterday. They wish that they can rely on a secure stable supply of critical metals to feed Tesla Energy rEVolution. But this crucial ability to produce Battery Grade Lithium and the word lithium in the names of many companies are not the same.

There is a brutal harsh reality of the expanding very fast gap between the exponentially growing demand for Battery Grade Lithium and the very limited available supply. Every new all-time high price set for lithium sounds alarms in the boardrooms all across the globe. We have a major shift in the marketplace. Major corporations are going FOMO on the Energy Transition and Electrification of our Energy and Transportation systems. 

Mines producing lithium cannot grow overnight to supply all these beautiful Energy Transition dreams at once with the Battery Grade Lithium. The flood of money that is seeking the best returns in exponentially growing EVs space is hitting a very small lithium market. Price shocks were imminent. These all-time high prices are already affecting the cost of lithium batteries, but the secure supply of Battery Grade Lithium is even more important than price.

Elon Musk has been talking for years about Lithium "as salt on a salad". It looks more like water in the desert needed for Tesla to continue to grow to the sky. It took only 10 months to build Tesla Gigafactory 3 in Shanghai. It can take up to 10 years to build up a lithium mine depending on the type of resource.  

"Supply chains are not ready. All stability of the US$12 Trillion dollars of the inverted Pyramid of Energy and Transportation Sectors depends on the security of supply provided by the Lithium market with a size of less than US$4 Billion dollars by sales in 2020."

"The tsunami wave after the Tesla earthquake has shattered all ICE legacy automakers is hitting the very small market of specialised lithium chemicals products. Price shocks for Battery Grade Lithium were imminent." 

"Lithium price goes up first and a new stable secure supply of Battery Grade Lithium will be coming much later after many years of development. The industry might and investments of Billions of dollars are only the start, each lithium project is a unique "chemical soup" and only a few companies in the world have a "Know-How" to unlock the potential of new projects and reach the "Number Plate" - Battery Grade  Lithium quality and announced capacity of annual production. "Skyrocketing lithium prices unlikely stabilise soon", says Ganfeng Chairman and now you can understand why."

Now you can better understand, why I am congratulating all our TNR Gold Team and expressing my gratitude to all our shareholders for their support of our Company, particularly today. 

Elon Musk talks about the lithium business and we have just announced our best news about TNR Gold NSR Royalty Holding on Mariana Lithium with Ganfeng. And we have not even started to talk about Robots...

 

"Kirill Klip, TNR's Chief Executive Officer commented, "We have seen Ganfeng Lithium consolidate 100% of the Mariana Lithium Project and both TNR Gold and Ganfeng Lithium's subsidiary Litio Minera Argentina Corp. ("LMA") have acknowledged LMA's responsibility to pay the 2% NSR royalty on the commencement of Commercial Production at the Mariana Lithium Project, and LMA has assumed the right to the repurchase of 50% of the NSR royalty (that is 1%)." 

 

We have had a validation point of our Lithium business strategy for the last 14 years. Now we are moving into the crystallisation point for our assets and their potential market valuations. 

"We believe that our royalty holdings are undervalued, and their appropriate values are not reflected in the Company's share price. We have received significant industry interest in our assets and the Company is working on potential new strategic partnerships to provide benchmarks for the market valuations of our royalty holdings. Such strategic transactions may potentially allow us to substantially improve our working capital position."

These potential transactions may allow everybody in the marketplace to see our lithium, copper, gold and silver assets' values more clearly. And even more, very naughty and ruthless Mr Market may start to recognise these real values as well.

There is a long journey between dreams about lithium, copper, gold and silver and the share price of the company reflecting the real valuations and going steadily up on the screen of your iPhone. This is what I call "Mr Market Time Machine". You are buying when nobody wants it. When there is still a unique opportunity and you can buy a much better business at a very reasonable price before the FOMO crowd will be driving the share price up. 

You are buying the Dream before it became reality. Then after very hard work and if you get lucky you can go "Back Into The Future". In the future for me personally, I can see the UniVerse where only TNR Gold Royalty Holdings in Mariana Lithium with Ganfeng and in Los Azules Copper, Gold and Silver with McEwen Mining can each potentially justify valuations representing multiples of our recent market cap. 

 

"Using my previous articles presented below, we can check and review the main driving market forces behind this phenomenal price performance for Lithium. This is the reflection of the exponentially growing demand and the very limited ability of the established producing facilities to increase the supply of Battery Grade Lithium. "Skyrocketing Lithium prices unlikely to stabilize soon", says Ganfeng Lithium Chairman: "Overall global demand for the material could reach 3 million tons by 2030". 

"With these kinds of numbers, some analysts in our industry may start calculating potential future NSR Royalty cash flows for TNR Gold from the Mariana Lithium Project closer to US$15 million per year rather than US$5 million, even after Ganfeng will execute its buyback right for 1% of NSR."

 

This is why I constantly invest in TNR Gold and other insiders joined me. Nobody knows the future, we can only do our best to make it. 

"There is magic, but you have to be a Magician to make this magic happen". Sidney Sheldon.

We have found Mariana Lithium Project many years ago in 2009. Now after more than a decade this beautiful project has grown into one of the largest Lithium Brine projects in the world.

"Ganfeng has successfully advanced Mariana Lithium to the construction stage. This is after a 55% increase in the measured and indicated resource estimate from the previously announced 2020 resource estimate at Mariana. We extend our congratulations to Ganfeng and salute the people of Argentina on the successful approval of the Environmental Impact Report by the Salta regional government in Argentina and approvals for the construction of a plant with a designed annualized capacity of 20,000 tonnes per annum of lithium chloride."

"We are very pleased to see that this new plan represents a design capacity of 20,000 tonnes lithium chloride (LiCl) over the previously planned annual lithium production rate of 10,000 tonne-per-year lithium carbonate equivalent (LCE) presented in the Mariana Project preliminary economic assessment ("PEA"), announced in our news release of January 28, 2019. It was the first PEA on the project and provided a potential value for the total NSR royalty from Mariana's life of mine cashflow, which has now been significantly increased. We welcome the news from the Salta regional government, following its discussions with Ganfeng, that the likely project expenditure to bring the Mariana Project to full production is approximately US$600 million."

"We believe that our royalty holdings are undervalued, and their appropriate values are not reflected in the Company's share price. We have received significant industry interest in our assets and the Company is working on potential new strategic partnerships to provide benchmarks for the market valuations of our royalty holdings. Such strategic transactions may potentially allow us to substantially improve our working capital position."

"TNR does not have to contribute any capital for the development of the Mariana Project. The 2.0% NSR royalty on the entire Mariana Project with Ganfeng Lithium is an important part of TNR's portfolio, (TNR holds a 0.2% NSR on behalf of a shareholder). Lithium Minera Argentina retains the buyback right on 1.0% of the NSR royalty as described herein. 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."

 

Now the largest integrated lithium producer from China Ganfeng Lithium is developing this massive Mariana Lithium brine salar in Salta, Argentina. We are not even talking yet about any potash values at this stage, Mariana Salar brine contains one of the highest potash grades in Argentina. 

And today the most important message for the future of the Mariana Lithium Project development will be a slide from the Ganfeng Lithium presentation, where they are calling this plan for 20,000 T Lithium Chloride annual production "Phase 1".

I consider my personal investment in TNR Gold, as a unique entry point into the state of the art vertically integrated lithium business being built by Ganfeng Lithium for the 21st century. We are building The Green Energy Royalty and Gold Company and participating in the creation of secure supply lines feeding The Switch and Tesla Energy rEVolution. 

On my blog following the links below, you can find more information about TNR Gold Corp. and our Royalty Holdings. Do your own research, read all disclaimers, as usual, stay safe and prosper. Join rEVolution. 

TNR Gold Considers Partial Ganfeng's Mariana Lithium Royalty Sale

 

TNR Gold NSR Royalty Holding On Mariana Lithium With Ganfeng: Lithium Price Hits And Continues To Hold All-Time High Of $78,300/T In China

Lithium price hits and continues to hold the new all-time high of over $78,300/T LCE in China. Ganfeng Lithium is moving Mariana Lithium Project fast forward with their US$600 million investment plan for the approved "Phase 1" with 20,000 T of the annual production capacity of Lithium Chloride.

Fastmarkets confirms all-time high Lithium prices all across the board, as well. Lithium Carbonate spot price, ex-works domestic China, reached as high as CNY510,000 in March.

Today, I would like to put all these recent developments in the Lithium market and their consequences for the potential valuations of TNR Gold NSR Royalty Holding into the perspective of our previous discussions about the looming deficit in the supply chain for Battery Grade Lithium.

Using my previous articles presented below, we can check and review the main driving market forces behind this phenomenal price performance for Lithium. This is the reflection of the exponentially growing demand and the very limited ability of the established producing facilities to increase the supply of Battery Grade Lithium. "Skyrocketing Lithium prices unlikely to stabilize soon", says Ganfeng Lithium Chairman: "Overall global demand for the material could reach 3 million tons by 2030". 

With these kinds of numbers, some analysts in our industry may start calculating potential future NSR Royalty cash flows for TNR Gold from the Mariana Lithium Project closer to US$15 million per year rather than US$5 million, even after Ganfeng will execute its buyback right for 1% of NSR.

"TNR retains a 2.0% NSR Royalty on the entire Mariana Lithium Project in Argentina with Ganfeng Lithium, (TNR holds a 0.2% NSR on behalf of a shareholder). Ganfeng’s subsidiary, Litio Minera Argentina, has a right to repurchase 1.0% of the NSR Royalty on the Mariana Project, of which 0.9% relates to the Company’s NSR Royalty interest. The Company would receive $900,000 on the completion of the repurchase. The project is currently being advanced by Ganfeng Lithium International Co. Ltd.

 

Mariana Lithium Project** measured and indicated resource: 4,410,000 T of LCE and 49,700,000 T of potash with the additional inferred resource: 786,000 T of LCE and 9,260,000 T of potash.

(Updated Mariana Lithium Project measured and indicated resource: 6,854,000 T of LCE with the additional inferred resource: 1,267,000 T of LCE – Company news release, July 14, 2021)"   

 

We are building The Green Energy Metals Royalty and Gold Company. Insiders continue to invest in TNR Gold. On the links below you can find more information about TNR Gold, our assets and learn more about the Lithium market. As usual, make your own research, stay safe and prosper. Join rEVolution!

TNR Gold Investor Presentation - Building The Green Energy Metals Royalty and Gold Company from Kirill Klip

Please visit the TNR Gold website for all updated presentations.

Please read my legal disclaimer. There is NO investment advice on any Kirill Klip feeds and blogs. Always consult a qualified financial adviser before any investment decisions. 

Do Your Own Research.

"We have more great news for TNR Gold NSR Royalty Holding on Mariana Lithium Project development by Ganfeng Lithium coming from Salta, Argentina. Ganfeng is moving construction of the Mariana Lithium Project fast forward with their US$600 million investment plan for the approved "Phase 1" with 20,000 T of the annual production capacity of Lithium Chloride."

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"Skyrocketing Lithium Prices Unlikely To Stabilize Soon", Says Ganfeng Chairman: "Overall Global Demand For The Material Could Reach 3 Million Tons By 2030".