Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
"Ecuador will shortly release a formal Government policy to make the mining industry a long-term key economic driver.
“Over the past two years, the mining industry has grown from 0.8% to 1.55% of GDP, and now the goal is to grow that to 4% GDP by 2021,” said the Vice Minister.
This is truly a game changer for Ecuador and prosperity for a country for decades to come.
I love the tone of this article and agree that political risk is the biggest obstacle going forward. I wonder if a potential acquirer waits for the Government policy change announcements or is actually involved in the process.
Chinese trade deal and MRE over the next 6 weeks should be very bullish.
We should start planning a party in Ecuador in 2019!!!
Unic.... why would they make that agreement ?
Im kind of confused by BHP's agreement when acquiring 100m shares..... It sems they can still do anything they want?
Why would they want to sit for 2 years and agree to only aquiring 246m shares?
Is there something Im missing here ?
Trump says he expects a 'great deal' with China, but warned more tariffs are coming if he doesn't get it
Most employees have way too much risk in the company they work for. They need some diversification and that comes by doing a risk free trade of selling stock as they acquire in the money options. Its not about an endorsement but more about not being fully exposed to one investment.
“Currently too much non-fundamental, macro noise is keeping the copper price low, but as soon as trade war jitters fade and more encouraging Chinese macro numbers are presented, fundamental drivers will take over,” said Casper Burgering, senior commodity economist at ABN AMRO in Amsterdam.
While analysts still expect shortages next year, they have cut their consensus forecast of a global deficit to 44,000 tonnes from 151,000 tonnes in the July poll.
They have also penciled in a surplus of 13,500 tonnes this year, down from their previous estimate of a shortfall of 129,000 tonnes, after a strike failed to materialize at top mine Escondida.
Bottomzup, I appreciate and value your opinion. The last thing I want is too over believe my own opinions. That's dangerous...
I believe China/US trade will find a solution soon. Canada/US solution was hastily resolved with no big win for either party. Just an illusion of toughness. I thing this will happen with China as well.
Regarding EV demand and the outlook for copper I think EV's will be far more popular than current predictions... When cheaper EV's come along in 2020-21 I thing copper demand will increase significantly. I recently bought a Nissan Leaf and it's truly a game changer as the prices come down. Love your opinions and appreciate them all. Cheers
Nobby's point is more and more copper is needed to fuel the EV economy that is coming. If you don't believe that copper has a bright future I would recommend selling this stock. I also got into Cascabel a long time ago and have ridden it all the way down and back up last year and down again this year. I did average down along the way and right now at this time think the value proposition is the greatest it's ever been. We are getting TRUMPED right now by policies that are scaring the world economy.... I won't be surprised if the US does a trade deal with China before election to try and make GOP look good and tough on trade.... GLTA
Schlemiel... I'm not one to get addicted to something and I hate watching the day to day sp moves but must admit i am addicted to my stupid computer screen and this forum..... can't wait till its over and I can move on with life
China considers the EV industry to be strategic and, by all accounts, wants to dominate it. The country plans to ban the sale of gasoline and diesel vehicles by 2040. Le Monde Diplomatique forecasts that 80% of the world's EVs will be built in China by 2020. The International Energy Agency says China, in 2017, was already by far the largest EV market, with sales growing 72%, to 580,000 vehicles. The American tally was 280,000. China has deployed almost all of the world's electric buses and last year had more than four times as many vehicle charging stations as the United States. Yet, in many ways, China is just getting started in the EV game.
China had a little help from its friends, more than a few of them Canadian. In this case, the Canadians' motto could be “follow the leader.”
Take Glencore, the Swiss-based mining and commodities-trading giant. Through its 86% control of Toronto-listed Katanga Mining, Glencore is the biggest industrial producer of cobalt in the DRC, which provides two-thirds of the global supply of the metal. Cobalt is an essential component of the batteries EV makers use (about 15% of a Tesla battery is cobalt; most of the rest is nickel). Earlier this year, Glencore signed a long-term contract to supply one-third of its cobalt output to Jingmen Gem, a Chinese battery company. There is speculation that Glencore is open to selling all of its cobalt operations in the DRC to China.
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There's more. Chengdu Chempys Chemical Industry, a Chinese maker of battery-grade lithium hydroxide, recently became the biggest shareholder of Vancouver-based NRG Metals, a small exploration company working on a promising lithium project in Argentina. Chemphys has agreed to buy all the potential production from the project.
Canadian-listed companies such as Katanga and Ivanhoe weren't immediately obvious partners in China's push into the EV industry, but the timing is perfect. Friedland has taken one of the biggest leaps so far into the country's electrification pool. He can even sell content for passengers to watch in an EV: Ivanhoe Studios focuses on Asian movies and programs, and co-produced the hit comedy Crazy Rich Asians.
The balance of power in one of the world's fastest-growing industries is shifting toward China, and savvy Canadian investors are going along for the ride.
Eric Reguly is an award-winning columnist with The Globe and Mail based in Rome. You can reach him at ereguly@globeandmail.com or on Twitter @ereguly
How Ivanhoe Mines is helping China in its quest to dominate electric vehicles
China wants to be No. 1 in electric cars, so it needs copper and cobalt. Where does it find its most helpful suppliers and allies? On Canadian stock markets
ERIC REGULY EUROPEAN BUREAU CHIEF
PUBLISHED 15 HOURS AGO
UPDATED OCTOBER 23, 2018
FOR SUBSCRIBERS
Robert Friedland, the founder and executive co-chairman of Vancouver’s Ivanhoe Mines, calls copper “the new oil." By that, he means copper is essential to the new electrified, battery-powered economy in the same way oil, a century ago, was essential to the era of mass mobility. Copper’s conductivity – its ability to transmit electricity – is superb. You cannot build a smartphone, an electrical grid or an electric car without copper, and lots of it.
China has figured out that copper and other common and rare minerals are essential to its long-term industrial ambitions. It wants to own the source of those minerals, rather than buying them on the spot market. The country’s leaders believe that whoever controls the minerals controls the end product, not just domestically, but globally. Call it an extreme form of vertical integration – from mine site to retail channel.
China can't do this alone and, as unlikely as it sounds, it has found some of its most helpful enabling partners among Canadian companies.
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Friedland is one of China’s strongest and most visible allies. Ivanhoe Mines controls the Kamoa-Kakula copper play in the Democratic Republic of Congo (DRC) – the world’s biggest undeveloped copper project. It is a joint venture with China’s Zijin Mining, which owns 9.7% of Ivanhoe. In September, the Chinese conglomerate CITIC bought 19.4% of Ivanhoe, taking total Chinese ownership to more than 29% and surpassing Friedland’s own stake of 17%. In time, Ivanhoe may evolve into a Chinese company, with a direct-to-China copper pipeline.
Much of China's industrial ambitions are focused on electric vehicles. To make EVs and their battery-driven power systems, you need hefty amounts of copper, nickel and cobalt, as well as lithium for lithium-ion batteries. The Copper Development Association of the United States estimates that the average pure-electric car contains 83 kilograms of copper, more than five times as much as is used in a car with an internal combustion engine. The charging points needed to juice up the EVs also require a lot of copper.
When North Americans think of electric cars, they think of Tesla, the manufacturer founded by Elon Musk that dominates the U.S. EV industry. The company’s stock market value is higher than either that of General Motors or Ford. But it is China that is stealing the show. Six of the world’s 10 largest EV makers are Chinese.
They include BYD, whose vehicle and battery output is bigger than Tesla's.
China considers the EV industry to be strategic and, by all accounts, wants to dominate it. The country plans to ban the sale
This is really getting crazy. Thanks to all here for the incredible information. Its been so helpful and supportive of my belief in SOLG. Below are some incredible reasons that we are at an interesting point in time.
1. Shandong Zhaojin Group
2. Gina - Hancock Prospecting
3 . BHP increasing stake
4. BHP closing sale of Shale asset to BP at end of Oct 2018 for $10.5 billion
5 New MRE coming in December
6. EV demand expecting to explode in next few years
7. Midterm Election will force DT to get along with China
I think that BHP's $10.5 billion may be a catalyst for something big here. That's a lot of powder at a very interesting time.
Just a few thoughts for everyone to ponder over the weekend....... DYOR .. GLTA
GLTA
I think the day to day movement in SP is now just noise. SOLG is now on to a different stage and day to day oscillations are only going to drive us crazy. Patience now is the only strategy as it will reward all LTH.
GLTA ... patience
CGP = Prospector 15%
SOLG = Driller 15%
BHP = developler 70%
Last night I couldn't get my head around why BHP would sign an agreement to only acquire 246m shares.... do you think that they felt NM was doing them a favor at issuing 100m share at 45P????
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Could Undiscovered Lucky Minerals (LKY: CN) be the Hottest Junior Miner in Ecuador?
2018-10-17 07:31:59 AM ET (ACCESSWIRE)
Ecuador is attracting hundreds of millions in investment dollars from top-tier majors, and the volume of deal flow in this region should catch the eye of any avid mineral investor. BPH, AAL, and NMC have all made efforts to take a stake in the region. Lucky Minerals (LKY) is the latest junior to report promising mineral sampling from a property in Southern Ecuador. Their concessions are near to the successful Fruta Del Norte mine, which was acquired for $1.2 billion and just received $400m in funding from top investors. Lucky's property could hold similar promise as this seminal find in the region. The company raised substantial capital already this summer and will continue exploration rapidly, reporting ongoing sampling and surveying results over the next 12-18 months. As things heat up and more information comes out about this underappreciated property, it may only be a matter of time before this virgin property sees its own investment from a major.
NEW YORK, NY / ACCESSWIRE / October 17, 2018 / Anglo American (AAL) has become the latest in a long string of miners to claim a foothold in Ecuador, and the deal flow here continues to impress.
The country has made headlines, slowly, as a key mining destination over the last few years, attracting hundreds of millions in new investment. This area is going from contrarian mining opportunity to mainstream as majors get involved. To name a few of the recent deals:
Newcrest Mining (NMC) took a 14% stake in Lundin Gold (LUG), which plans to bring the Fruta del Norte gold and silver mine in southeastern Ecuador online in the next 12-18 months. Lundin Gold raised $400 MILLION to fund this project in 2017. BHP (NYSE: BHP) now holds an 11% stake in SolGold (SOLG) to access the Cascabel copper/gold project after doubling down in October. Cornerstone Capital Resources Inc. (TSX-V: CGP) holds a stake in Cascabel as well. Anglo American (AAL) has now entered a joint venture agreement with Luminex Resources (LR) for three copper and gold concessions.
All of this is thanks to an improved regulatory framework and a big investor engagement campaign in Ecuador as the country opens up a promising mineral region to international firms and investors.
The number of un-partnered but explored properties is dwindling, and Lucky Minerals (LKY) could be the next big entrant as they begin to understand exactly what their property might hold. This company is exploring their promising Fortuna property, only 40 kilometers away from Lundin's Fruta Del Norte mine, and in October they released their first early exploration results with very promising findings.
Fortuna is promising partly due to its similarities to Fruta Del Norte. When this particular project was discovered by Aurelian Resources ten years ago, that undiscovered stock climbed from 50 cents to an astonishing $40.
If we don't like what someone says I recommend sending him/her to the Saudi embassy in Turkey.... they can deal with anyone who bad mouths SOLG for us!!!!
GLTA