Copper Breaks $3 Dollars: Powered By Tesla Energy rEVolution - TNR Gold Los Azules Copper NSR Royalty Holding With McEwen Mining Presentation.

 

Copper breaks USD $3.0 per lb. The Perfect Storm of FED QE Tsumani is reaching the Copper market after lifting mega yachts first and pushing Warren Buffett into Barrick Gold stake position. 

There are only a very limited number of Copper projects with the magnitude of Los Azules in the world which are opened for development. The Perfect Storm has reached the Gold market first and the Copper market is next. Rob McEwen is ready for a JV deal to move project fast forward into the development stage after receiving the bilateral agreement between Argentina and Chile supporting this development. 

TNR Gold is Plugged Into Energy rEVolution with our Lithium and Copper Royalty Holdings. This "Sleeping Giant" - as Rob McEwen calls Los Azules - is ready to be awakened by the industry majors and will provide the new catalyst for valuation for our NSR Royalty Holding on the entire deposit. Learn more about Copper and this unique market opportunity in the presentation below and do your own research as usual.  

TNR Gold Los Azules Copper NSR Royalty Holding With McEwen Mining Presentation from Kirill Klip

Please visit the TNR Gold website for all updated presentations.

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

Do Your Own Research.

Chart by @EnronChairman

TNR Gold Royalty Holding On Los Azules Copper Project With McEwen Mining: Tesla Drives Copper Into Golden Cross Supercharged By The Infrastructure Plan Dreams.

Chart by @Schuldensuehner

Dr Copper is driving up the hill in "ludicrous mode" after doing donuts in his brand new Tesla. Anyone can get really excited after reading all headlines about new EVs and "Infrastructure Stimulus Plan". If Robinhood traders can spell Copper one day, it can go totally nuts and start chasing the performance of its shiny brother Gold. 

Can you imagine how many Copper doorknobs we need to fight this CoronaVirus? Copper becomes Gold during the electrification of $12 Trillion industries of Energy and Transportation. Very respectable people are talking about Golden Cross Long Term Buy Signal for the red metal which is going green during Energy rEVolution. 

Chart by @sentimentrader

Anna Golubova from Kitco provides us with BMO observations about the recent state of the Copper industry and confirms our brave investment thesis. We will need Copper. We will need a lot of it. 

As always, it is very important who is talking about Copper now. Barrick Gold is "on the hunt for strategic Copper". And Trafigura is talking now about the surge in global Copper demand during Green rEVolution.

China is coming back online and driving prices up already on the demand spike while restocking its supply chain. "China sees a surge in Copper imports," according to Bloomberg.

And it is harder and harder to get new giant Copper mines into production in order to address the coming "Severe Deficit" as Goldman Sachs calls it. The new great Copper discoveries are coming only a few and far between, according to S&P. 

Major producing mines are more than 70 years old. Industry head grades are going down and, in general, the Copper industry was build by our great-grandfathers. After the Perfect Storm in Gold, the QE tsunami is coming to the Copper market. 

Two major megatrends are colliding and will produce real fireworks for strategic commodities. Energy Transition with the electrification of $12 Trillion Energy and Transportation Industries meets Copper industry which was built in the last century. 

The best medicine from low prices is low price. Price shocks are imminent. Nobody will be building new giant copper mines with Copper priced below USD $3/lb. The best projects which are ready for further development will get proper industry attention first. 

Now you can better appreciate the magnitude of the potential investment opportunity with the giant Los Azules Copper project development by McEwen Mining. TNR Gold holds NSR Royalty on the entire Los Azules Project and below you can find a lot of information for your further research.

Kirill Klip GEM Royalty TNR Gold Copper Presentation May 2020 from Kirill Klip

Please visit the TNR Gold website for all updated presentations.

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

Do Your Own Research.

Dr Ryan D Long has provided his personal analysis on the potential valuations for TNR Gold Royalty holding with McEwen Mining:

"TNR also holds a 0.36% NSR on the Los Azules Copper Project, located in San Juan Province of Argentina. The Los Azules Project is owned 100% by McEwen Mining Inc (NYSE:MUX) and is expected to be the 26th largest copper mine in the world once it reaches production. 

A PEA at the project completed in September 2017, demonstrated a post-tax NPV8 of US$2.2bn with a post-tax IRR of 20.1%. Based on the PEA figures the mine is expected to generate average revenue per annum of U$953mln, which could generate around US$3.5mln a year to TNR over 37 years."

Now investors can do their own research and start putting the different pieces into their own valuation puzzle. Rob McEwen has prepared Los Azules to the potential major JV deal in the copper space. 

Agreements between Argentina and Chile are signed in order to advance the Los Azules project and the new road is being under feasibility study. The new approach by Rob McEwen which he has articulated in order to jump-start the development is making a huge difference for any potential partners:

"McEwen Mining conference call, Robert McEwen -- Chairman and Chief Owner

Happy to. We had past discussions with a senior base metal producer. What we were looking for was recovering part of the cash we put in. We were looking for $100 million upfront that the partner would advance the project to feasibility and then into production and we would continue with an interest of 20% or 25% of the property going forward."

Needless to say that any potential deal will bring the new valuation drivers for all parties involved: McEwen Mining and TNR Gold, as the project will be moving into the feasibility and construction stage. Development of Los Azules will provide enormous economic benefits for San Juan, which is ready to support this kind of responsible mining business for the benefit of proud people of Argentina. I have been calling Argentina the potential Energy Power House for many years, it can finally coming all together now."

Daimler, The End Of The Internal Combustion Engine And The Curious Case Of Plug-In Hybrids.

Guest post:

Daimler, The End Of The Internal Combustion Engine And The Curious Case Of Plug-In Hybrids.

Konstantin Klip

"The “Osbourne Effect” - when you cancel or defer an order of a product because you fear it soon to be obsolete. More precisely, the phenomenon is attributed to its namesake only when it is an actual announcement of an upcoming project that is what actually impacts existing sales of a current model. 

 

This consumption behaviour, or at least the more general behaviour of lower sales due to expectations of an impending future, is also present on the supply side, where the supplier frets concerning assigning resources to what, either in whole or in part, is believed to be obsolete development (a concept that is positively encapsulated in the phrase “Never Reinforce Failure”).

 

The “Osbourne Effect” is why you rarely see Big Auto, or any company for that matter, make what would otherwise be premature announcements in regards to the development of a revolutionary product. 

 

True, market-changing R&D is rarely announced prior to immediate release – or at the announcement of a scheduled release - to the public. So to understand a company’s upcoming products, and the true net present value of its current releases, you have to put the pieces together yourself. 

 

Daimler’s historic decision to halt future gasoline engine development past September 2019 is a stark demonstration of this concept. Daimler smells obsoletion; it is mindful of the fact that ICE car sales peaked in 2017. Compare this to EV sales, particularly with the Covid19 pandemic, and how they are already well on track to beat 2019 sales. 

Committing fully, with a healthy ‘Kiai’ is key, and Daimler knows this when looking at Tesla. Tesla’s envious performance when compared to the Prius of Toyota is again demonstrative of two strategies – where one was focused on the future without concern of legacy assets, the other conducted business under a determination not to rock the boat or its business model. 

 

German sensibility has compelled Daimler to face the music and commit its developmental resources towards the future. 

 

On the topic of Germany, we already see Volkswagen, in late June, completely dedicating a German plant towards EV production. Volkswagen’s actions alone in 2020 serve as a case study for quality management in which Volkswagen shows us how to truly conduct a successful market pivot. 

 

First, it consolidated stakes in EU battery manufacturers where EV sales were strong (having outperformed China during the lockdown). Then, it looked to the future and, like many, its eyes fell upon China – making Gangfeng Lithium a strategic partner, before acquiring a stake in Guoxan High-Tech Co. and securing Anhui Jianghuai Automobile Group at the same time.

 

Having seized a stake all the way up and down the entire supply chain, VW showed another flourish of genius – it modularised its own model design in terms of battery compatibility, thus allowing it to juggle suppliers.  There are few better ways to drive battery cost down than organically integrate the tenants of competition and financial Darwinism in your own supply chain. The consideration alone is graceful, but practically it empowers VW with the ability to promise a new EV model to come every year, for the next five years, at price points projected to aggressively hound down traditional ICE cars. 

 

Dedicated production retooling amongst manufacturers will only drive the competitive price of EVs down, and we all comprehend by now that the traditional ICE market survives only by dint of time until the majority of #EVs reach true cost parity. On the topic of Volkswagen, a case study on the Golf model alone already shows that an electric Volkswagen Golf is cheaper to own than its gasoline/diesel counterpart. 

It is important to understand that one EV company’s sales do not actually compete with the sales of another EV company; a “Tesla killer” is not necessarily demanded by the market for EVs to carry the day. It is still unfortunate to see industry professionals writing for credible publications fail to understand the true condition on the ground, as it were.

 

To fact, Europe’s best selling electric vehicle isn’t a Tesla - it is, in fact, Renault’s Zoe comfortably nimble hatchback. Starting at 32,000 euros the Zoe has been touted, and indeed perceived, as an ideal second car for European families. It is also curious to see some consultancies tout a 53% quarterly increase as ‘underperforming’ and again demonstrates a systemic lack of attention to detail from traditional professional establishments when it comes to the EV industry. 

It is counter-intuitive to realise that as long as the market supply of EVs remains in a condition of undersupply, any EV purchase steals away from the ICE market more than it does from its EV competitors. It is the ICE car that is left unsold and obsolete in the long run when a particular EV purchase is made, as opposed to a competitor’s EV model which will nonetheless be eventually snapped up under production current conditions.

 

The only exception to this is perhaps with Hybrid models. Many considered Hybrids to be a sort of best-of-both-worlds approach when it comes to traditional logistical considerations favouring ICE engines while still providing the markable benefit of EV development. Certainly, all considered Hybrids to be at the very least a stepping stone of sorts that would have a market lifespan far in advance than the data we are seeing now suggests. That is the curious case at hand here; pure electric models seem to already be committing fratricide of sorts by driving a decline of hybrid (specifically plug-in) models across global markets. 

Looking at U.K. regulations alone, (the 3rd biggest EV market in Europe after Norway and Germany), the country has prioritised fully electric models over plug-in hybrids since its late 2018 subsidy changes. The subsidy cuts introduced affect plug-in hybrids much more than they do fully-electric models.

 

In France especially, a more specific analysis focusing on the Volkswagen Golf shows plug-in hybrid vehicles are often the most expensive to run over four years, in part due to the higher purchase price of vehicles that in effect have two engines and resulting in lower government incentives.

 

If the French condition becomes universal, many have remarked that hybrid electric vehicles should be viewed in the same lens as Fax machines; a practical stopgap measure during revolutionary progress that may nonetheless forever persist due to its boons of redundancy and appeal to traditionalism. For now, with the data at hand, this remains pure speculation in regards to the value of diversification vs commitment.

To sum up the historic events of the first half of 2020 in regard to EVs:  

 

We have Fisker going public with a new electric car after $50M dollars raised alongside a reverse takeover which is expected to bring $1 billion dollars to start production. We have Rivian, backed by Amazon & Ford, raising $2.5B dollars. We have the United States military, of all things, releasing official word that the next generation Humvee should be electric, with the justification that lithium EVs in the military “significantly reduce the logistical tail of the motor pool in the field” and drastically lower thermal signature of vehicles. 

 

The Switch, the Electric Revolution, is here and tangibly so. You have buoyant EV sales during a market under pandemic lockdown and under nightmarish conditions for any consumer product. You have VW and GM fully committing to securing their battery supply chains, pledging new electric models annually. For buyers, purchasing EVs has become a case of viral conversion, and we have all been shown a memorable example of inexorable viral spread. 

 

Big Auto remembers Blackberry, Kodak and Blockbuster."

Konstantin gives us today the opportunity to dive into the main drivers of the ongoing rEVolution and how legacy automakers are coping with the crisis in the industry. The Switch is here, Tesla is pushing all automakers to change or die quite literally. Lithium is the magic metal in the very heart of this rEVolution.

$12 Trillion industries of Energy and Transportation will depend on $3 billion Lithium market more and more. At the moment the Lithium market seems to be totally separated from all excitement and electricity in the air intoxicating the happy Robinhood crowd which is chasing bankrupt ideas and insolvent companies. "Opaque Lithium Kingdom" is still under consolidation. Strongest companies are getting stronger and picking up pieces of all other companies and the best projects they can find on their terms. 

 

 

 

 

All weak players will be wiped out. Ganfeng Lithium is marching on building their own global Lithium raw material resources empire. Ganfeng's 100% ownership of Mariana Lithium is now closer with "Proposed budget 2020: US $25M" when the other JV partner "has decided to temporarily cease to make contributions to the Mariana Joint Venture" again. 

 

 

 

 

TNR Gold is plugged into the Energy rEVolution with our NSR Royalty Holding on Mariana Lithium - JV under the management by the giant from China Ganfeng Lithium. Now you can better appreciate the real magnitude of Mariana Lithium Project after the increase in Lithium resources of more than 250%. I am very pleased to see that this new proposed very significant budget will be moving the project into the next stage of the development. In their 2019 Annual Report, Ganfeng Lithium published: "The feasibility study on Mariana Lithium was completed in 2019, and environmental assessment and construction of the project are planned to be conducted". 

 

 

 

Warren Buffett Dumps Goldman Sachs And Buys Barrick Gold: Investors Are Coming Home - Gold In The USA, Alaskan Elephant Country.

Gold is not Gold Bug’s religion only anymore. Investors are coming home. Gold is Real Money. Warren Buffett dumps Goldman Sachs and buys Barrick Gold. We have another piece of the puzzle put in place. The full circle. A lot of very smart people will explain to you what it all really means now. I will add just a few points relevant to our journey. 

You have one more answer helping with your questions and explaining my very brave dream: to build TNR Gold using the best Warren Buffett principles, to build The Green Energy Royalty Metals and Gold Company like an investor would do for other investors to join. Now you can better understand why I put Gold and Warren Buffett in the same sentence many years ago. 

Negative Real Interest Rates change everything. Gold is shining bright in the MMT Age. Time is a function of Energy. Money is compressed Energy. Gold is Real Money. There is nothing really esoteric at this stage - welcome to the Gold Genius Club. Now Warren Buffet revealed his $564 million membership. Eric Sprott has explained to us that the best Gold mining companies are literally printing money with expanding margins following the record high Gold prices. 

Frank Holmes presented to us his case on why money managers cannot ignore Gold mining companies anymore. Funds are coming in Gold mining stocks chasing the rising cash flow yields in the MMT Age of Negative Real Interest Rates. The best Gold mining companies generate rising cash flow yields. Gold mining companies’ margins and cash flow yields are growing with the growing pile of negative-yielding debt, which is pushing the Gold price higher. Gold is the ultimate hedge. 

The best Gold mining companies become wealth generators. As Mark Bristow, CEO of Barrick Gold puts it: “Self-funded Insurance Policy.” Now more money managers, including insurance companies and pension funds, will be allowed by their Boards to allocate funds to get at least some Gold exposure. A lot of them just cannot buy Gold, but they can buy Gold miners. Mainstream financial media is talking already about Gold as the real hedge and the only one which can substitute bonds in the “model portfolios” in the MMT Age. 

This coming tsunami of funds seeking the increased allocation to Gold will be meeting the... 0.57% of Gold share in the global equity portfolios! This is why we were talking about real fireworks this year after the 4th of July: 

"My dear Friends, we are here. Unimaginable events are happening. Not only our small worlds are affected, but we have a collectively shared manifestation on a global scale. If you read this, you can have a glimpse into my world. But you will see yours. Each of us will have to decide for ourselves, where we are going to live. Which Universe we will choose.  

We are here. Gold has hit all-time high intraday at the US $2,078, new all-time high weekly close is at the US $2,035, and the new all-time high monthly close is at the US $1,976"

Alastair Macleod provided us with his insights into the game of music chars going in the Gold market. There is no Gold in “paper gold” - there is only paper. With Warren Buffett moving in, we will see very soon who is swimming without trunks in that “paper gold”, the tide is coming out with every physical delivery now. 

But back to Barrick Gold and why "Investors are coming home", as Thomas Kaplan, Chairman of NovaGold put it? We have Peak Gold. Gold miners need new new “Elephant” projects to replenish the declining resource base. They need new giant projects just to keep Gold production at the same annual rate. 

In his recent interview on CNBC, Mark Bristow has acknowledged that even if the Barrick Gold’s official Gold price is still $1,200 for all planning purposes, “they are using now $1,500 as the indication for a mid-term time horizon.” It will not escape your attention that nobody will be buying out Barrick Gold, probably, this year, but they will have to buy themselves something big and promising. Who will be talking the Gold price up going into the M&A market as the buyer? All recent developments around NovaGold, which we have discussed in great detail with you here, are pointing us to the brave scientific question for a pure curiosity pleasure at this stage. Who will buy NovaGold first in the fight for the solid lead as the number 1 Gold mining company in the world? Will it be Newmont Mining or will Mark Bristow conclude the “unfinished business” of the previous unsuccessful buy out attempt and will finally bring Donlin Gold “back home”? In the world moving super crazy fast into the $3,000 Gold as a new normal, for me, this is just a question of time now. Nor Barrick Gold neither Newmont Mining can afford to lose Donlin Gold to each other without a walk over effectively from the race for the crown of the world’s top Gold miner. 

I must warn you again, as usual, that all my brave positive affirmations and dreams are based solely on my personal observations of public information available in the market and I do not have any other insider information. Always do your own research and now you can better understand another layer of my previous post. TNR Gold had its first double from a multi-year base. There could be some people who bought a ticket on our ship just by chance and who are not sure about the destination. Our journey involves very significant Risks of travelling, particularly nowadays, even if we are going to the amazing, possibly, even exciting opportunities. For all those who are not sure that they can hold the waves and withstand the seasickness, thank you and it will be much better for you to disembark now. 

Nobody knows the future. We will be moving into the stormy waters again. I already know that I would like next to visit the very nice beach spot marked as a "10" on the map. There could be two more doubles potentially from here after very hard work with the sails and after a lot of blisters. In my very personal vision, we do not need anything really groundbreaking and dramatic, apart from very hard work and execution of the strategy which we discussed in details here, in order to really enjoy our journey and finally to get to the “50 cents” Party at the “Club 55”, just to bring sweet memories. But then it’s again: it is all my positive affirmations and “Never buy anything you cannot hold.”

Barrick Gold has Warren Buffett now and we have Shotgun Gold for your due diligence study below. “Investors are coming home.”

"Our Team at TNR Gold is wishing all the luck to our shareholders at NovaGold in the next stage for the development of Donlin Gold and we hope this exploration program will demonstrate that exploration and mining business can be done safely in the US even now. On our side of the great Alaskan Elephant Country, Shotgun Gold is ready for a major Gold mining Company to join our Story. 

It was tough, but we used our "staying at home time" wisely. Auditors gave us the clean bill of health, Q1 MD&A and Financials are filed and I have finally received my newly acquired block of shares after closing our final tranche of the private placement. Read more." 

TNR Gold Shotgun Gold Project Presentation from Kirill Klip

Please visit the TNR Gold website for all updated presentations.

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

Do Your Own Research.