Member Info for ChameleonMan

Good day for a top-up I thought!

Technically still Q1 2023 and fine if there was no need for urgency. Would be better if it were published a little earlier to support a positive decision by Portugov’s decision makers.

This is I believe “early 2023” yet no peep from the EU on its Critical Raw Materials Act. Not surprised of course as nothing in the EU ever seems to be delivered on time, let alone early. Meanwhile, at least one EU commentator is starting to envisage what impact mining will have, “eco” or just “responsible” and some of the unknowns related to the untested geothermal projects. https://www.theparliamentmagazine.eu/news/article/lithium-mining-france
Elsewhere battery storage projects are popping up here and there on top of the new battery making and recycling plants will begin to change the industrial landscape hopefully into something cleaner and greener than what it is replacing. https://renewablesnow.com/news/tagenergy-harmony-energy-start-building-49-mw-bess-in-scotland-810860/
It’s a brave new world and SAV hopes to be a big part of it if only the EU would crack on and make things a little easier for us.

Don’t think you will be complaining soon Battery Metals. If a licence has been nominated to a company name associated with the earlier JV announcement it seems likely that this is how we will go forward with AA. Probably the licence office has let the cat out of the bag somewhat as they have published the name before the next RNS has been released? Couldn’t make it any clearer could they?

Would be interested to hear your reasons for bearishness WT. You were lucky buying at 2.4p and selling at 2.8p recently so understand that you hope to rinse and repeat but that just says opportunist rather than strategist. Any insights to share?

Seems like the Portuguese government is in deep trouble and may not survive? Let’s hope it doesn’t mean another election as everything stopped for the last one.
https://www.portugalresident.com/government-stability-hits-rocks/

Not sure whether this has anything to do with it? Recommending any small cap miners involved with batteries in 2023- lithium or copper.
Small cap mining tips 2023Wed 23:15
https://youtu.be/OASNNa-hi4s

Happy New Year to all! Looks like the Aussies think Hungary will be the big Li battery centre in Europe? More hungry refineries needing to be fed spodumene?
https://stockhead.com.au/resources/eye-on-lithium-experts-tip-hungary-as-europes-next-major-battery-producer/?amp

Indeed! Wouldn’t want to be out of here on 1st June! :)

It’s sensible to do your own DD before buying an EV but I suspect most makers will source from an industrial rather than artisanal supply?
So for my EV6, Kia buy batteries from SK Innovation who buy cobalt from Glencore under a long term supply agreement. “Glencore and SK Innovation are committed to ensuring ethical and responsible production and procurement of cobalt. There are continuous allegations of human rights abuses linked to cobalt production, and SK Innovation is voluntarily focusing on ethical and responsible sourcing. The cobalt in this supply contract will be sourced from Glencore’s industrial mining operations located in the DRC. Both parties agree that the DRC operations will be independently audited each year against the “Cobalt Refinery Supply Chain Due Diligence Standard”. This standard is defined by the Responsible Minerals Initiative.

Amid growing battery demand, SK Innovation will do its utmost to ensure stable raw material supply while fulfilling its ethical responsibilities.”
https://www.glencore.com/media-and-insights/news/sk-innovation-to-secure-significant-volume-of-cobalt-in-long-term-supply-deal-with-Glencore

From the earlier RNS “US$0.8m, payable at the sole discretion of MRG in cash, or in new ordinary shares in MRG based on the 20-day volume weighted average price at time of exercise of the Option, or a combination of cash and new ordinary shares in MRG (the 'Acquisition Consideration'); and

o In years where the Licence area generates a net profit after tax, MRG to make a 1% royalty payment to AME on revenues from product sold, calculated annually for the year completed, capped at no more than 50% of Net Profit after Tax in any given year. ”

I think most of us had written Moz off after the RT deal so this is a nice little bonus. Not surprised the DD is delayed as they usually do in my experience.

… and Mercedes Benz will make electric vans nearby from 2025.
https://www.msn.com/es-pe/dinero/empresa/el-gobierno-vasco-inyecta-19-4-millones-en-basquevolt-para-afianzar-la-tecnolog%C3%ADa-en-torno-al-coche-eléctrico/ar-AA15e6z2?ocid=EMMX

… and on the Iberian peninsula with EU support!

https://www.eba250.com/solid-state-batteries-on-the-rise-in-europe/

Good find! A more formal tie-up would certainly help to derisk both projects.

What a European automotive offtake could look like:
https://www.proactiveinvestors.co.uk/companies/news/1001824/european-lithium-inks-historic-lithium-offtake-agreement-with-bmw-1001824.html?rel=scroll
Signed for production commencing in 2026. That’s the way to do it!

I admire your positivity Tony but experience tells me I will be wearing a green hat and drinking Guinness when SAV submit!

Some busy slides! Production slipped back to 2026 but aligns with Northvolt-GALP refinery production date.

Unfortunately this action plan does not cope with recent events, namely the EBA’s panic over stalled projects and the risk of migration of the battery industry to the US following European energy crisis and the IRA . I quote the EBA from a week ago.
“ The growth of the European battery industry is currently at risk, due to geopolitical developments and unbroken dependencies from Asia, accentuating supply chain shortages. Combined with rising electricity costs in the EU, affecting OPEX, as well as emerging distortions to the transatlantic level playing field in the face of the US Inflation Reduction Act (IRA) and similar support schemes in Canada, Japan and South Korea, we see investments in the EU either stalled or refocused elsewhere.
• Investments across the EU battery value chain are being delayed also due to uncertainties around EU and/or national financial support, so far unable to match attractive CAPEX and OPEX incentives deployed by the USA inter alia via the IRA.
• The EU and national framework for industrial permitting lacks speed and clarity, compared with that of other global economies, such as the USA, contributing to additional risks and delays in investment and project execution.
• The upcoming weeks will be decisive for decision makers to act and prevent the outflow of investment from Europe.
• An emergency package of measures is urgently needed at EU, Member States and local levels to accelerate and de-risk investments, speed up industrial projects, and level the global playing field.
• The EBA has contributed by identifying a shortlist of strategic projects across the value chain for which emergency and temporary support measures would be needed to unlock investments and accelerate project execution. It estimates that this could lead to over 100bn EUR of CAPEX investments in 2023-20241, bridging gaps in the EU value chain and strengthening the EU’s industrial base.“ see emergency measures recommended.
https://8941304.fs1.hubspotusercontent-na1.net/hubfs/8941304/High-Level%20Industrial%20Meeting%20Joint%20Statements/EBA%20joint%20statement_EU%20Council_december2022.pdf

Great if it happens for the wider industry but I’ve given up believing that the EU will ever have a coherent policy towards lithium mining. After stringent ESG regulations on suppliers on top of the tough environmental standards and threatening to declare lithium a hazardous material, it’s now made a supply agreement “ giving Europe better access to Chile’s vast lithium and copper resources”. https://www.politico.eu/article/eu-trade-deal-chile-carmaker-delight-lithium/
Is the EU finding it just too troublesome to mine in Europe? How will the forthcoming EU Critical Raw Materials policy navigate through this muddle?

March 16th? I would have favoured an earlier date if I had read “will submit in Q1 2023” rather than “still on track to submit”. Maybe just a bit of legalese but this is all about confidence is it not?