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.

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 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"?

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. 

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.

Supply For Tesla Energy rEVolution. GEM Royalty TNR Gold NSR Copper Holding With McEwen Mining: "Los Azules - Our Sleeping Giant."

Bloomberg:

Copper Supply Woes on Show With World No. 2 Mine Output to Halve

By 

Danielle Bochove

 and 

Jack Farchy

August 3, 2018, 

•  
  Freeport lowered Grasberg guidance after technical challenges
•  
  Grasberg production may drop by more than 300,000 tons in 2019

TNR Gold Los Azules Copper Royalty With McEwen Mining: Renewable Energy To Drive Copper Demand, Says BMO.

BMO connects the dots of the Tesla Energy rEVolution demand for the secure supply of Green Energy Metals and available resources into the global long-term supply and demand picture for Copper. 

“Based on our thorough analysis of long-term demand, supply and incentive pricing, we have raised our long-term copper price forecast to US$3.25/lb (from US$3.05/lb), above the consensus real long-term price of US$2.95/lb,” BMO said.

BMO says renewable energy infrastructure is the biggest single driver of global demand growth for copper over the coming years, with the need to connect significant numbers of small-scale electricity generation units into the grid providing “a major boost” to copper – with solar generation capacity set to triple and wind capacity double by 2025.

“We expect copper demand growth rates through to 2030 at above 3% compound annual growth rate,” BMO said.

Red metal goes Green with renewables taking the charge in energy generation. Dramatical reduction in the cost of Solar and Wind power and cheap Lithium Batteries are changing everything. 

We are entering into the new commodities supercycle for Green Energy Metals which is driven by The Switch to Clean Renewable Energy Generation. Electric Cars will be taking over on the consumer side of the energy distribution providing mobility on demand with "pay as you go" service in the future. 

Smart Grids will disrupt Power Grid business like mobile phones have disrupted the fixed lines communications. This explosive demand for Green Energy Metals will be met with supply side struggling with the disruptions due to the labor disputes and Resource Nationalism, lower head grade in existing mines and the fact that "Copper exploration has been increasingly unsuccessful."

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: The World's Biggest Miners Want More Copper But Nobody's Selling.

Thomas Biesheuvel reports from the boardrooms of major mining companies confirming my observations for TNR Gold from the ground in Argentina. There is a growing appetite for the copper assets and majors are hunting for the best projects to replenish the exhausted production pipelines. Nobody is ready to sell the operating mines and companies will have to look at the development opportunities left. 

We have discussed heating up mining M&A activities on the example of Pascua Lama with Barrick Gold and Los Azules with McEwen Mining in Argentina. The charts below are putting this situation into perspective. Copper head grades are going lower, existing copper supply is threatened by labor disputes interruptions and exploration for the new projects has been "increasingly unsuccessful" ...

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.

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.

"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"? Read more."

"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. Read more."

"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. Read more."

Resources Rising Stars:

Renewable energy to drive copper demand, says BMO

"Copper has one of the best longer-term fundamentals among commodity markets, according to BMO Capital Markets, prompting the global broker to lift its long-term copper price forecast by 7% to US$3.25/lb.

BMO says the upgrade reflects its “increased confidence and positive view on copper”, advising investors to “accumulate shares in companies with growing copper production and improving balance sheets”.

“Based on our thorough analysis of long-term demand, supply and incentive pricing, we have raised our long-term copper price forecast to US$3.25/lb (from US$3.05/lb), above the consensus real long-term price of US$2.95/lb,” BMO said.

BMO says renewable energy infrastructure is the biggest single driver of global demand growth for copper over the coming years, with the need to connect significant numbers of small-scale electricity generation units into the grid providing “a major boost” to copper – with solar generation capacity set to triple and wind capacity double by 2025.

“We expect copper demand growth rates through to 2030 at above 3% compound annual growth rate,” BMO said.

“Changing long-run commodity prices should be a rare event and should only take place where there is a marked shift in the future outlook,” it says.

“In our view, the growth trend in copper demand owing to a combination of rising renewable energy forecasts and increased consumption in the automotive sector as the electric vehicle trend accelerates is such an event.

“Importantly, these are global trends rather than China-specific ones, with these sectors adding ~6Mt of copper demand by 2025.”

BMO says a copper price above current levels is required to incentivise new production with the copper project pipeline “thin” compared to history.

“The current probably and highly probable copper pipeline is currently the lowest we have seen this century, both in terms of number of projects and capacity,” it said.

“Recent years have seen both cancellation and delivery of potential projects, and both of which have served to reduce the list and shorten the x-axis on our incentive price curve. We see the need for ~5Mt of new projects from new primary mine supply to bring the market into equilibrium over the 2025-203 period.”

BMO forecasts that the copper market will move into a significant deficit over the 2019-20 period, owing to lack of supply growth.

While most of the copper stocks covered by BMO are major North American companies such as First Quantum, Teck and Ivanhoe, local copper stocks like Sandfire Resources (ASX: SFR) benefited from the bullish sentiment towards copper (and a rising price for the red metal) during the week.

Sandfire hit a record high of $9.31 during the week, capitalising the debt-free producer at nearly $1.5 billion."

TNR Gold's Shotgun Project: Mining M&A - NovaGold’s Laser-focused Strategy Of Unlocking The Value Of Donlin Gold In Alaska After Newmont Buys Out Share Of Galore Creek.

This is why I am calling TNR Gold's Shotgun Gold project location in Alaska "Gold in Alaskan Elephant Country":

“This transaction is a win-win for all parties,” said Thomas Kaplan, NovaGold’s chairman. “For NovaGold’s shareholders, it is the continuation of a laser-focused strategy of unlocking the value of its assets and transforming the company into a pure play on Donlin gold, which we believe is the most important gold development story in the industry.”

Now Nova Gold has more capital to advance Donlin Gold and Alaska is getting back into mining business with the new wave of M&A activity in mining. The driving force for the next wave of consolidation in mining will be the lack of available exploration capital for the mining juniors due to the down cycle in the Gold market and smaller and smaller returns on the invested capital with the exploration in the green fields. 

To put it simply: it is harder and harder to find the promising projects with the initial confirmed resource, blue sky exploration potential, and stable mining jurisdiction to capitalize on the major gold discovery. I believe, that TNR Gold's Shotgun project is well placed in this part of the cycle in order to attract the major strategic partner for its development.

InvestorIntel: TNR Gold Fine Tuning Royalty Model For Green Energy Metals.

"The third major component in TNR’s portfolio is the Shotgun gold project, located close to NovaGold and Barrick Gold’s Donlin project in Alaska. Early resource numbers suggest the project holds 20.7 million tons of ore with an average gold grade of 1.06 grams a ton, with a 0.5 g/t cut-off grade. Barrick and NovaGold’s project obtained a key environmental approval from the U.S. Army Corps of Engineers in April, indicating the government of Donald Trump is more amenable to mining in Alaska. Once again, external factors are moving in TNR Gold’s favor. 

Klip’s next step with Shotgun is to find an exploration partner of the same caliber as McEwen. One of TNR’s board members, Greg Johnson, founded NovaGold and was instrumental in the discovery of Donlin. He is entrusted with the task of finding that partner, Klip said. Don’t bet against TNR repeating the success it has had so far in ILC and Los Azules."

Alaska is coming back in play as the best jurisdiction for the elephant style Gold deposits on the American soil. Barrick and Nova Gold are moving forward the giant Donlin Gold deposit and now the whole region play will bring the reevaluation for all players involved. 

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.

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 Shotgun Gold Project: Gold In Alaskan Elephant Country - NovaGold And Barrick Hit 130.5m At 5.93g/t Gold.

This major Gold discovery in Alaska by NovaGold and Barrick Gold will not only put Alaska back on the radar screens of gold bugs and investors but can bring the long-expected turn around for the whole sector of gold mining and exploration companies.

Mining News:

TNR LOOKING TO JV SHOTGUN GOLD PROPERTY

"TNR Gold Corp. Feb. 2 said it is seeking a major gold mining company to become a joint venture partner on its Shotgun gold project in Alaska. 

Located about 110 miles of Donlin Gold and about the same distance northeast of Pebble, this property lies at the intersection of two trends known to host big deposits. 

TNR optioned Shotgun from Novagold Resources Inc. in 2002 and gained full ownership of..."

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.

CIMMagazine:

Newmont buys out NovaGold’s share of Galore Creek

Newmont purchase of stake in Galore Creek comes as multiple miners look to acquire copper assets

By Kevin Martine

Newmont Mining will buy NovaGold Resources’ 50 per cent interest in the joint-venture Galore Creek copper-gold-silver project for US$275 million, making it Teck Resources’ new partner on the project.

Galore Creek, located 150 kilometres northwest of Stewart, B.C. in the Tahltan Nation’s traditional territory, has Proven and Probable Reserves of 69 million tonnes at 0.59 per cent copper and 0.32 grams per tonne (g/t) gold.

Under the terms of the deal, Newmont will pay NovaGold US$100 million upfront, US$75 million after Newmont and Teck complete an updated prefeasibility study, and a further US$25 million after the completion of a feasibility study. Both Teck and Newmont have agreed to each spend between US$10-15 million annually on updating the prefeasibility study, which they anticipate will be completed in the next three to four years.

The final US$75-million payment is contingent upon Teck and Newmont’s decision to develop the project.

“Galore Creek holds the potential to support decades of profitable copper and gold production in a favorable mining jurisdiction, in line with our strategy to create long-term value for our stakeholders,” Newmont CEO Gary Goldberg said in a press release. “Partnering with Teck allows us to bring both organizations’ considerable technical, financial and sustainability strengths to bear in evaluating and refining development plans for Galore Creek, and to build on the strong relationships Teck has established with the Tahltan First Nation and British Columbia.”

Interest in copper projects has been growing among major mining companies. This year Lundin Mining made repeated offers to acquire Nevsun Resources’ Timok copper-gold project in Serbia, most recently earlier this month, and Rio Tinto is reportedly on the hunt for a “prime” copper asset.  

Copper is expected to be in continued high demand thanks to its role in batteries for electric vehicles and renewable energy. London-based CRU Group expects 15 per cent of copper demand growth between 2016 and 2021 to come from the automotive sector.

NovaGold said offloading its share of Galore Creek will help improve its balance sheet as it looks to invest in its Donlin gold project in Alaska in partnership with Barrick Gold.

“This transaction is a win-win for all parties,” said Thomas Kaplan, NovaGold’s chairman. “For NovaGold’s shareholders, it is the continuation of a laser-focused strategy of unlocking the value of its assets and transforming the company into a pure play on Donlin gold, which we believe is the most important gold development story in the industry.”