Lithium price shocks are not over yet. Lithium REE War 2.0 could not have come at the worst possible moment for so many Lithium Dreamers. The “One Thousand and One” Lithium projects hyped by junior miners are gone, even if their investors who are still smoking hopium have not realised it yet.
There is only the word Lithium in the names of some lithium companies left and no real Lithium resources which can be economically produced in the next 10 years. Companies are getting cautious about deploying capital in Lithium mining and production after so many failings in the young industry. They will rather secure a stable supply from the already established players.
“Tsunami of Battery Grade Lithium” leading to oversupply will never materialise. Most projects are late, over budget and reaching the number plate of production capacity for Battery Grade Lithium slowly over many years.
"Last time Goldman Sachs "was worried" about your investments in the Lithium Universe and called the coming tsunami of the new Battery Grade Lithium Supply they were buying stakes in the Lithium companies at the same time while retail was selling in panic.'
"The problem with all estimations for the future supply in mining is the difficulty of the process to put new mining operations in place, particularly in a sustainable way. In the case of Lithium, we are dealing not only with mining operations but with literal "chemical soup", particularly in the case of Lithium Brine Operations. Every single project has a unique chemistry. Only a few companies in the world were able to put online successful Lithium operations."
"This is where science meets Wall Street and Bay Street hype. Lithium projects are always delayed, they are never on budget and only a few companies managed to organise operations to reach the previously announced annual capacity production of Battery Grade Lithium."
"Investors must remember that a lot of "Lithium companies" have only the word Lithium in their name, but not any real Lithium resources which can be produced economically in the next 10 years. The flood of money following the new Lithium all-time high of over USD$85,000 in China last year was chasing Bay Street Lithium Dragons all over the junior mining space."
"Now, these Dragons flew away with investors' money following Crypto Dragons. A lot of investors will be burnt again, and retail will start chasing the new wild dreams to become rich overnight. Memories about "One Thousand and One" junior mining Lithium projects will stay as monuments for the happy times."
"Dreams about Lithium meet mining realities. Only a few giant companies will be able to withstand Goldman Sachs and Ark Invest manipulations with their worries about Lithium oversupply. They will continue increasing their domination by acquiring the best Lithium projects."
Resource Nationalism will be another wake-up call for all daydreaming about Africa's riches. On the other side of demand, EVs sales jumped over 14% globally in 2022 and still rising exponentially. After 20% electric cars will go truly mainstream.
Lithium Majors understand it and steadily invest capital in the best projects to increase capacity and their market share, while carefully painting the “Lithium price curve” and driving out of business so many aspirational speakers. You have to choose wisely and not participate in the digital divide between you and your money. There were eToys and AtHome before we all got Amazon and Google. DYOR and stay safe. The world is changing. Real Assets, Real People. #MiningAllianceOfTrust.
TNR Gold is plugged into Tesla Energy rEVolution with our Royalty Holdings on the Mariana Lithium Project with Ganfeng Lithium. 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.
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, and stay safe and prosper. Join rEVolution!
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.
Forbes Argentina provided us with the opportunity to learn more technical details about the progress of the Mariana Lithium Project development by Ganfeng in Argentina. Sebastian Vaca, the Construction Manager of the Mariana Project of the Ganfeng Lithium, shares with TNR Gold shareholders the positive news from the construction site in Salta.
“We are building The Green Energy Metals Royalty and Gold Company. Our business model provides the unique entry point into the creation of supply chains for critical materials like energy metals which are powering Tesla Energy rEVolution and Gold industry which is providing the ultimate hedge during this part of the economic cycle. Our shareholders are participating in the building of The Green Energy Metals Royalty and Gold Company. In our portfolio, we have a unique combination of assets providing exposure to different parts of mining cycle: starting with the power of blue sky discovery and including partnerships with industry leaders like McEwen Mining, Ganfeng Lithium and Lundin Mining as operators on the projects that will potentially generate royalty cashflows to contribute significant value for our shareholders.”
"The Company is of the view that the recent market prices of its Shares do not properly reflect the underlying value of the Shares. The Company has available cash from its sale of a portion of the Mariana Royalty sale and after repayment of outstanding debt. No insiders of the Company intend to participate in the Bid."
"For all TNR Gold shareholders, the following chart from the Ganfeng Lithium presentation is particularly important. The production facilities of 20,000 T of Lithium Chloride per year are called "Phase 1".
TNR Gold is plugged into Tesla Energy rEVolution with our Royalty Holdings on the Mariana Lithium Project with Ganfeng Lithium. 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.
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, and stay safe and prosper. Join rEVolution!
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.
"In an interview with Forbes, the Construction Manager of the Mariana Project of the Ganfeng mining company, tells about the plans of the Chinese company in Argentina and talks about the possibility of manufacturing batteries in the country.
The mining giant Ganfeng sought out a pure strain from Salta to lead the construction teams of its projects in Argentina, where this province stands out from the rest of those that are part of the lithium triangle in the company's investment portfolio.
"I was born in Salta, raised in Salta, I studied in Salta, I did a large part of my career here and I think it is a particularly attractive province for mining because of the boost that is being given to it through many laws". This is how the Construction Manager of the Mariana Project, Sebastián Vaca, introduces himself to Forbes, before beginning an interview during his time at the International Lithium Seminar.
- What is the role that the company has worldwide and why did you decide to bet on Argentina?
Ganfeng is headquartered in China, it is one of the top 3 in lithium production and not only that, but we are covering everything from extraction to manufacturing and recycling of lithium batteries. We aim to be number one in lithium production. In the case of the Mariana Project in the Salar de Llullaillaco, the production that we will obtain is Lithium Chloride.
- What is the difference between lithium carbonate, hydroxide and chloride?
All products are lithium salts. The production process differs widely between them. The main difference lies in the chemical elements with which lithium is combined. The choice to produce one or the other brand on the entire market. In general, the 3 products can be used to produce Lithium batteries and the product they need depends on each company.
- What state is the Mariana Project in? What is the production expectation?
Mariana officially started construction last year in May 2022, that's when we did the construction inauguration ceremony. We are now in the construction stage. This project has two stages. In the salt flat, what we do is evaporation and a first part of the process where we obtain a pre-concentrated brine. This, later, will be transported to the Güemes industrial park, where we have already started the construction of the plant that will carry out the second stage of the process where we will obtain lithium chloride. So, we have been officially under construction since May of last year and we are making the pre-evaporation pools, there are 1,400 hectares of pools, soil movement and lining with geomembranes and geotextiles, which we have already executed about 45% to 50% of all. these pools, which is very good progress. At the end of last year, we started filling the pools, that is, we can say that we are in the "pre-production stage". When we begin to fill the pools with brine, we start pre-production because it is the initial stage to obtain the concentrated brine. We are also building the plants, the buildings, where the brine will enter, which as I was saying is where we are going to finish pre-processing the brine in Mariana to send it to Güemes and complete the entire process and obtain the lithium chloride that is in this case our final product. We start pre-production because it is the initial stage to obtain the concentrated brine. We are also building the plants, the buildings, where the brine will enter, which as I was saying is where we are going to finish pre-processing the brine in Mariana to send it to Güemes and complete the entire process and obtain the lithium chloride that is in this case our final product. We start pre-production because it is the initial stage to obtain the concentrated brine. We are also building the plants, the buildings, where the brine will enter, which as I was saying is where we are going to finish pre-processing the brine in Mariana to send it to Güemes and complete the entire process and obtain the lithium chloride that is in this case our final product.
- What production capacity will it have?
The estimated initial production of the Mariana Project is 20,000 tons of lithium chloride.
- When will production start?
The idea is to go into production during the year 2024, approximately between the second and third quarters, we are thinking of already having part of the production.
- How are your other exploration projects coming along and what depends on whether they are done?
Like any mining project, there are times that may seem very long. In particular, what we have is the Incahuasi project, where advanced exploration is being carried out to determine the actual amount of resources that it has. And then another project that we acquired over the past year is Pozuelos-Pastos Grandes, which is a little further along, in the engineering development stage. The idea we have is that during the first quarter of 2024 it will already enter the construction phase.
Sebastian Vaca, Ganfeng
- Are you one of the companies with the most projects in the pipeline?
We have, as I told you, these three. In addition, Ganfeng is the majority shareholder of the Cauchari-Olaroz project in Jujuy, they are the owners of 51% of the private part and have a strategic participation as a shareholder in the Sal de la Puna project. And we are constantly looking for new projects that we can incorporate into our portfolio. Ganfeng's idea is to be the number one benchmark and for that we need a lot of resources to work on them and make them go from being simply a resource to a material asset.
- Are you looking to be the main producers in the world, but also in Argentina?
Exactly. We are not currently in production, but there are some projects that are in production, such as the one I mentioned about Minera Exar, Cauchari-Olaroz, which is not entirely ours. Ganfeng's idea is to be number one worldwide and obviously in Argentina as well.
- How many tons can you imagine producing?
This first project has 20,000 tons of lithium chloride as a target. I cannot give you the numbers for this expansion and the others for sure because they are in the exploration stages, but they will be in that order of magnitude or more. It all depends on how good the results are. Besides, Ganfeng is not only here in Argentina, but there are several other places where it has operations.
- What is the attraction you see in Argentina to make such a strong commitment?
Argentina is friendly with mining in general and in particular with sustainable lithium mining. Although in recent times there had been talk of the nationalization of lithium, we know that it is something that is not consistent with the Constitution, which are resources that depend on each of the provinces that own them. This, added to the fact that mining companies were given a boost in Salta through many laws and created a very positive environment for mining investment, is what makes mining particularly attractive at this time in Argentina and in particular in Salta. There are obviously many things still to improve, because unfortunately it is not all rosy, but compared to other places, other markets, other countries, it is still attractive to make mining investment in Argentina.
- You mentioned that the company, in addition to producing lithium, also produces batteries. How do you see Argentina to play a role in that link?
At this moment, the first link must be given a lot of impetus, because it is not something that is so simple either. It requires and demands a lot of manpower, a lot of work, and a lot of added value in going from the brine that is in a deposit in the salt flat to obtaining lithium chloride. Then, obviously, if it gets to the point of saying I can do and generate the complete battery, it would also be great and hopefully it really happens, that we can have all the necessary technology here in the country and the knowledge and human resources to do it. So, let's first focus on this first process, which is what is flourishing. And the other step is not going to be taken overnight. Of course it can be done, but it is not immediate. It requires a lot of effort, a lot of technology and other metals that we do not currently produce in the country and should be imported. At the moment, Country conditions and import conditions for all these inputs are quite complicated. There are many things to improve, such as the exchange rate, and the conditions in the country that are not so stable.
- Don't they rule it out for a second stage?
Under current conditions, we cannot give precision or be certain of this. I think it would be very beneficial for everyone, but you have to work a lot from all sides. From the mining companies, which are the ones who make the most of the investment; the provincial governments with whom we particularly have a very good relationship; and the national government, which is a little more in charge of providing certain macroeconomic conditions that allow for a good development of the project in general."
Mining.com provides the latest information from Rob McEwen on the upcoming IPO and financing plans for the giant Los Azules Copper, Gold and Silver Project. The latest post-PEA drilling results confirm the PEA mineral resource model and McEwen Copper is firing on all cylinders moving closer to feasibility study.
"The company hopes to complete the feasibility study late next year or early 2025 and start producing copper toward the end of the decade. Recent investments by automaker Stellantis NV and miner Rio Tinto Group have given the venture more breathing space.
At the same time, McEwen is talking to “various sources” about providing part of the $2.5 billion needed to build the mine, said the founder and former chairman of Goldcorp Inc. Construction financing would probably see McEwen Mining Inc.’s 52% interest in the copper unit “reduced by some degree,” he said." (Mining.com)
"Strong team performance is accelerating the McEwen Copper Los Azules program in 2023. The 2023 Los Azules Project PEA results highlight the potential to create very robust leach project, while reducing environmental footprint and greater environmental and social stewardship sets the Project apart from other potential mine developments.
It’s very encouraging to see an updated independent mineral resource estimate that has increased significantly. Together with Nuton, McEwen Copper is exploring new technologies that save energy, water, time and capital, advancing Los Azules towards the goal of the leading environmental performance. The involvement of Rio Tinto with its innovative technology, may also accelerate realizing the enormous potential of the Los Azules Project."
Rob McEwen describes the opportunity to expand the deposit and the size of the giant Los Azules Project: "If you covert Copper, Gold and Silver at today's prices - you are looking at the equivalent of 60 Moz Gold deposit." You can find more very interesting comparisons of Los Azules and other major copper projects in Argentina in this video as well."
For all TNR Gold shareholders the part at 36" will be particularly interesting. According to Rob: "Osisko went into Ecuador recently and paid USD$50 million for 0.6% NSR Royalty on the deposit which is smaller than Los Azules. So, that will put just a Los Azules NSR Royalty worth maybe USD$100 million."
"Pursuant to this transaction, McEwen Copper will hold a 100% interest in the Los Azules copper project in San Juan, Argentina, and a 100% interest in the Elder Creek exploration property in Nevada, subject to a 1.25% net smelter return (NSR) royalty on both assets payable to McEwen Mining." McEwen Mining NR July 06, 2021.
"MONTRÉAL, Nov. 07, 2022 (GLOBE NEWSWIRE) — Osisko Gold Royalties Ltd (“Osisko”) (OR: TSX & NYSE) is pleased to announce that it has entered into a binding agreement with SolGold plc (“SolGold”) (SOLG: TSX & LSE) with respect to a US$50 million royalty financing (the “Transaction”) to support the advancement of SolGold’s Cascabel copper-gold property in northeastern Ecuador.
As part of the Transaction, Osisko will acquire a 0.6% net smelter return royalty (the “NSR”) covering the entire 4,979 hectare Cascabel property, including SolGold’s world-class Alpala project for which SolGold released the results of a pre-feasibility study in April of 2022 (the “PFS”)."
McEwen Mining holds 1.25% NSR Royalty on Los Azules Copper which could be valued at USD $100 million based on the Royalty deal made by Osisko Gold Royalties, according to Rob McEwen. TNR Gold Holds 0.4% NSR Royalty on the giant Los Azules Copper, Gold and Silver projectwith McEwen Mining, of which 0.04% of the 0.4% NSR Royalty is held on behalf of a shareholder.
TNR Gold's 0.36% NSR Royalty could be valued at USD $30 million, based on Rob McEwen's estimations analysing the recent Osisko Gold Royalties deal with SolGold in Ecuador. Below is the Alastair Ford article where you can find more information about TNR Gold and benchmarks for our GEM Royalty portfolio.
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, and stay safe and prosper. Join rEVolution!
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.
"Canadian mining entrepreneur Rob McEwen said he’s weighing financing options for a copper project in Argentina, with an initial public offering possible as soon as November.
While McEwen Copper Inc. is funded into next year as it drills the Los Azules project, it may go public later in 2023 or early 2024 to bankroll a feasibility study. The IPO could be in the range of $100 million to $150 million, although another private financing round is also an option, McEwen and copper unit chief Michael Meding both said in an interview.
The company hopes to complete the feasibility study late next year or early 2025 and start producing copper toward the end of the decade. Recent investments by automaker Stellantis NV and miner Rio Tinto Group have given the venture more breathing space.
At the same time, McEwen is talking to “various sources” about providing part of the $2.5 billion needed to build the mine, said the founder and former chairman of Goldcorp Inc. Construction financing would probably see McEwen Mining Inc.’s 52% interest in the copper unit “reduced by some degree,” he said.
The prospect of copper shortages — as demand for the wiring metal accelerates in the energy transition — is boosting the appeal of investing in large-scale deposits. Partly as a result, large producers are taking another look at Argentina after interventionist policies had held back the industry.
Despite an uncertain political situation in the inflation-ravaged nation, McEwen is optimistic about being able to move ahead with Los Azules no matter who is in power. The two executives spoke after outsider congressman Javier Milei pulled off an unexpected primary win that upended this year’s presidential race.
