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."

"What will the Llullaillaco Solar park be like?" 

Gaceta Mercantil 

  

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

Ganfeng Lithium is going from strength to strength riding the tsunami wave after the Tesla earthquake shattered all legacy ICE Age auto industry. Our Team at TNR Gold just congratulated our partner - Ganfeng is developing the giant Mariana Lithium Project where we have our NSR Royalty Holding - upon their signing a 3-year Lithium supply agreement with Tesla. All legacy automakers are chasing Tesla and investors are chasing their Lithium dreams. Your ability to find the best Lithium plays will define your success for the years to come. We have found our Mariana Lithium Project and Ganfeng Lithium many years ago and now industry insiders and investors are finding our GEM Royalty Story. 

"All this flood of money that is seeking the best investment returns during the Energy Transition and Electrification of our Energy and Transportation sectors will be creating a tsunami of shock waves across Lithium supply lines that are not ready and still being built to feed Tesla Energy rEVolution."

"All Lithium market was less than US$4 Billion in size just a year ago. Now Lithium price has tripled. Choose very wisely among the best lithium companies to participate in this generational investment trend."

Due to the technical complexity, only the strongest Lithium companies will be able to develop new projects and achieve a significant production increase of Battery Grade Lithium. The whole industry produced only 369,000 T LCE of Lithium in 2020 and now we have to jump first to over 1 million T LCE by 2025. Ganfeng's Chairman is talking about 3 million T LCE annual demand by 2030 and Canaccord Genuity estimated that only Tesla will consume 2.7 million T LCE annually by 2030.

TNR Gold is plugged in Tesla Energy rEVolution with our NSR Royalty Holding on the entire Mariana Lithium Project with Ganfeng Lithium. Now the project is moving closer to production with its USD$600 million investment plan. Construction is underway after the "Environmental Impact Report" was approved for "Phase 1" of 20,000 T LCE of Lithium Chloride of annual production. 

In early October, Ganfeng Lithium Team in Argentina presented Mariana Lithium Project in Salta to the local government. The Governor of Salta praised Ganfeng Lithium Team and the proud people of Argentina are ready to open a new chapter for their beautiful country. Argentina has everything in order to become the powerhouse of the Tesla Energy rEVoltion.   

Chart by Nicholas Winton

The future is bright for Green Energy Metals, investors are waking up to the new generational opportunity. A very important slide from the Ganfeng presentation for TNR Gold shareholders shows that this fantastic increase of 100% in the planned lithium production rate is called now "Phase 1"! Hopefully, we will see the further development of this giant Lithium project in the future and the potential cash flow for TNR Gold from our NSR Royalty Holding may increase very significantly as well.

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, as usual, stay safe and prosper. Join rEVolution. 

Caixin Global:

Skyrocketing Lithium Prices Unlikely to Stabilize Soon, Says Ganfeng Chairman

"Skyrocketing lithium prices aren’t likely to stabilize unless the new-energy vehicle industry begins to mass-produce alternative battery technologies or major recycling programs are put in place, according to the head of China’s largest miner of the metal. Li Liangbin, chairman of Ganfeng Lithium Co. Ltd., told Caixin in an interview that the volume of installed batteries could exceed 3,000 gigawatt-hours (GWh) by 2030 and overall global demand for the material could reach 3 million tons." 

TNR Gold Mariana Lithium Royalty Holding Partner: "China's Ganfeng Lithium Inks 3-year Supply Contract With Tesla."

We extend our congratulations today to our Mariana Lithium Royalty Holding Partner - Ganfeng Lithium. Reuters reports: "China's Ganfeng Lithium inks 3-year supply contract with Tesla". 

We have discussed in depth here that Tesla Lithium supply lines are going all around the globe and back to China. Today we have another confirmation for the Ganfeng Lithium's status as a major leader in the technology of the reliable and sustainable production of battery-grade Lithium. 

Ganfeng is already supplying Lithium to Tesla, Volkswagen and BMW among many other battery producers and automakers. Reuters reports today that a new deal will be in place for Ganfeng and Tesla for another 3 years starting from 2022. 

Now Ganfeng's "Phase 1" plan for 20,000 T of LCE annual production at Mariana Lithium can be seen via the new perspective. The whole Lithium industry will be put to a major test of its ability to ramp up the supply of battery-grade Lithium just in a few years. 

"We are very pleased to see that this new plan represents a 100% increase of the previously planned lithium annual production rate 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 very significantly increased."

 

Hopefully, "Phase 2" will be following after "Phase 1" at Mariana Lithium and it will potentially increase TNR Gold NSR Royalty Holding valuation and the potential future cash flow even more.    

All Lithium market was less than US$4 Billion in size just a year ago. Now Lithium price has tripled. Choose very wisely among the best lithium companies to participate in this generational investment trend.

Only about 369,000 T of LCE Lithium was produced in 2020. Now the industry has to jump to over 1 million T of Lithium production annually by 2025 just to keep Tesla headlines going. Who will have Lithium ready to feed it to the hungry autos at all-time high prices during the coming deficit years?

TNR Gold is plugged in Tesla Energy rEVolution with our NSR Royalty Holding on the entire Mariana Lithium Project with Ganfeng Lithium. In early October, Ganfeng Lithium Team in Argentina presented Mariana Lithium Project in Salta to the local government. 

A very important slide from the Ganfeng presentation for TNR Gold shareholders shows that this fantastic increase of 100% in planned lithium production rate is called now "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 Companyand 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, as usual, stay safe and prosper. Join rEVolution. 

TNR Gold Royalty Holding Update: ILC Reports Ganfeng Subsidiary Litio Minera Argentina Assumes All Rights And Obligations In Respect Of Mariana Lithium.

Kirill Klip, Executive Chairman of the Company commented, “We are pleased with the great news regarding Ganfeng Lithium, our NSR Royalty holding and advance of the Mariana Lithium Project to construction. I am also very pleased to see that this deal between ILC and Ganfeng Lithium included confirmation that Ganfeng’s subsidiary, Litio Minera Argentina, assumes all rights and obligations that ILC had in respect of the Mariana Lithium Project, including in respect to TNR Gold NSR Royalty Holding. Ganfeng Lithium has now consolidated 100% of the Mariana Lithium Project and advanced it to the construction stage. 

This news comes after a 55% increase in the measured and indicated resource estimate from the previously announced 2020 increase of more than 250% in measured and indicated resources at the Mariana Lithium Project. We extend our congratulations to Ganfeng and salute the people of Argentina on the celebration of ‘Pachamama’ – the ritual that thanks the earth for all that we receive from it. This ritual was performed at Mariana Lithium in September after 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 100% increase of the previously planned lithium annual production rate 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 very 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.

TNR does not have to contribute any capital for the development of the Mariana Project. The 2.0% Mariana NSR Royalty on the Mariana Project with Ganfeng Lithium is a very important part of TNR Gold’s portfolio, (TNR holds a 0.2% NSR on behalf of a shareholder). 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.”

WSJ: Single Firm Holds More Than 50% of Copper in LME Warehouses.

  

  Red Kite is the well known company to the industry insiders, what do they know the others don't about the coming squeeze in the Copper market? Fortunes can turn around very quickly with rising Copper price in the tight market and China's SRB coming into the market again.

TNR Gold NSR In Los Azules Copper Project: What Is Net Smelter Return?

TNR Gold Receives Royalty From McEwen Mining On "One Of The Largest Undeveloped Copper Projects".

I am very pleased to report our latest development on Los Azules.
We have finally locked up the participation in this unique world-class copper  asset for the benefit of all our shareholders: Read more."

WSJ:

Just one firm has more than half the copper in LME warehouses

Updated Oct. 26, 2014 7:21 p.m. ET

"A single buyer has snapped up more than half the copper held in London Metal Exchange warehouses, giving it control over a crucial source of supply and raising concerns among traders about the potential for higher prices.

On several occasions in the last month, this buyer held as much as 90% of the world’s copper stored in LME-licensed warehouses, equal to about 140,000 tons, or enough to make the copper parts of the Statue of Liberty more than 1,700 times. As of Wednesday, the buyer owned between 50% and 80% of copper held in warehouses, according to the most recent exchange data.

At today’s prices, a 50% to 80% share of LME copper inventories would be worth anywhere from roughly $535 million to about $850 million.

Although the exchange doesn’t identify the owners of metals, eight traders and brokers working for different firms active on the LME said they believe Red Kite Group, a London hedge-fund manager that focuses on metals trading, was the one buying. One of the brokers said that when he needs to buy copper for clients, contacts in the market refer him to Red Kite, indicating the fund is sitting on a large pile of metal.

ENLARGE

Red Kite declined to comment.

Banks often hold large portions of the metal in LME-licensed warehouses on behalf of clients, but a hedge fund holding that much copper is less common, traders and brokers say. The London Metal Exchange, owned by Hong Kong Exchanges & Clearing Ltd. , doesn’t limit how much metal a single trader may hold in its warehouses, and says that it has mechanisms in place to prevent market squeezes—a situation in which holders of a large share of the supplies use their position to jack up prices. For example, it requires a company with a dominant position to lend metal for short periods and it caps the amount of money that can be charged for that service.

“The LME constantly monitors its markets to ensure that trading is orderly,” a spokeswoman for the LME said. The LME’s “lending guidance” system “is the most effective way to manage pressure arising from dominant positions in our market.”

Prices ticked higher last week in response to positive economic news from China, the world’s biggest consumer of the metal. They remain below their levels at the start of the year because demand has been sluggish and production capacity is expected to increase. The official price of copper for delivery in three months on the LME was $6,696 on Friday.

The metal’s owner could be wagering that global copper supplies will tighten, causing prices to shoot up, analysts say. The price of copper traded on the LME is used as a global benchmark, and metal users rely on the exchange’s warehouses for emergency supplies. If one firm owns most of that spare supply, it can charge higher prices to buyers, analysts say.

“There’s no reason for anyone to be holding 70% of the stocks of the commodity,” said Jessica Fung, head of Commodities Metals at BMO Capital Markets.

Established in 2004, Red Kite is now run by two of its founding partners, Michael Farmer and David Lilley, both alumni of the German industrial conglomerate Metallgesellschaft AG, which collapsed in 1993. The fund is known for its bold and extremely profitable trades involving copper, as well as other metals. Red Kite Group manages $2.3 billion, according to its website.

A single firm has owned at least 50% of the copper in LME-licensed warehouses for much of the last four months. Accumulating such a dominant position became easier in June because the amount of metal under the exchange’s watch had plummeted, as had prices. The warehouses have held less than 160,000 tons of copper since mid-June, compared with more than 360,000 tons at the start of the year. Some analysts say copper production is running behind demand, forcing some users to draw on stockpiles in LME-licensed warehouses.

Some traders say the concentration of so much copper under one firm’s control is already driving up prices. It costs about $72 more per ton to buy copper for delivery today than for delivery in three months. Others say copper is more expensive because miners aren’t meeting global demand.

The LME’s regulatory function has come under intense criticism from aluminum buyers, who have complained of long waits and high costs to get supplies out of certain warehouses. The exchange has responded by changing its rules.

—Tatyana Shumsky contributed to this article.

Write to Sarah Kent at sarah.kent@wsj.com, Ese Erheriene at ese.erheriene@wsj.com and Ira Iosebashvili atira.iosebashvili@wsj.com"