Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Copper prices are expected to mount a modest recovery next year as burgeoning demand from the energy transition offsets global economic weakness and healthy mine supply, a Reuters poll showed. COMMODITYPOLL01
Copper prices have shed about 15% since touching the highest in more seven months in January, pressured by weak economic growth in China, fears of recession elsewhere and high interest rates.
"We see copper grinding higher over the course of 2024 as the two opposing structural trends persist - the struggles of China's property market on the one side and the energy transition on the other," said Carsten Menke at Julius Baer in Zurich.
The cash copper CMCU0 contract on the London Metal Exchange (LME) is expected to average $8,625 per metric ton in 2024, a median forecast of 28 analysts showed.
That is 3% weaker than the forecast in the previous quarterly poll, but 7% firmer than Tuesday's closing price of $8,029.
Analysts forecast a surplus of the metal used in power and construction this year of 112,000 metric tons, with oversupply rising to 302,500 tons next year, up 61% from the previous poll in July.
Two US lead and zinc mines going on care and maintenance at the end of the month, low prices beginning to have effect on mines at he higher end of the cost curve.
https://www.miningweekly.com/article/nyrstar-says-to-suspend-operations-at-two-us-zinc-mines-2023-11-01
Not everything has gone Sepl way but the company is in fine operational and financial health going forwards. Summary of the results below.
https://www.energyvoice.com/oilandgas/africa/ep-africa/540122/seplat-sees-anoh-exxon-deal-delayed/
The global zinc market surplus widened to 22,000 metric tons in August from 2,900 tons a month earlier, data from the International Lead and Zinc Study Group (ILZSG) showed on Tuesday. During the first eight months of the year, the global surplus was 489,000 tons, up from a surplus of 156,000 tons in the same period last year.
The global lead market surplus widened to 47,600 metric tons in August from 26,200 tons in July, data from the International Lead and Zinc Study Group (ILZSG) showed on Tuesday. During the first eight months of 2023, ILZSG data showed a surplus of 71,000 tons versus a deficit of 141,000 tons in the same period of 2022.
The big setback here has been the issues with the FPSO, upuntil that point all had gone well, great acquisitions all adding to production.
Maari failing to complete was another setback although JSE couldn't be faulted there except for not pulling the plug earlier.
Even now if they put the FPSO under the management of a company who specialises in this would they be any better off? I doubt it now they've learnt the hard way all there is to know about safe operations of these vessels, and even so I would lay all the blame at JSE door, COVID restrictions have a lot to answer for rather than just being consigned to history as an error of government.
Had they been allowed to keep up planned maintenance at optimal levels the crisis that followed from not doing might of been averted.
Today's problems are down to the financial burden of Akatara, plus a distressed seller, plus even if they didn't have any production as a safety net for cash generation I would still be interested in investing here purely on Akatara alone, so I see current sp weakness as a buying opportunity the distressed seller, negative sentiment due to the Montara incident, then throw in the discounted raise at 45p backed by the major shareholders have seen to that.
Fair comment Bangrak, the slim margins compared to to size of project costs is my only concern, I was here back in the day, hope it goes well and a company with cash pile and turning a profit is a rarity these days.
Maybe there is isn't going to be as much copper about as people first thought, especially if this production loss is replicated elsewhere.
Although these are huge numbers financially and production wise it highlights how much of a minnow Caml is in the mining world.
SANTIAGO (Reuters) -Chile’s Codelco, the world’s largest copper producer, on Thursday posted a 65% drop in its pre-tax profit for the first nine months of the year, pulled down by lower production and higher operating costs.
Codelco’s pre-tax profit over that period totaled $917 million.
The state-owned miner, whose credit rating was recently downgraded amid lower prices and copper output, added that copper production between January through September fell 9% to 966,000 tonnes.
Core earnings over the nine month period totaled $3.24 billion, a 31% drop from the year-earlier period, while production costs spiked nearly 30% to reach $2.04 per pound.
The state copper producer announced earlier this month a leadership shakeup, just weeks after a new chief executive took office as the company takes a lead on negotiations with private lithium miners to increase state control over the industry.
Probably the safest place to be be at present is on the sidelines, which with good rates being offered from banks for no risk makes for a compelling safe haven, that goes across most markets currently.
Before it was countries running high debt economies pointing towards a slow down and possible recession.
Now imo we have far worse on the political front with increased tensions and the threat of war a major concern.
What happened to deplomacy I don't see it anywhere just a doubling down on confrontation more of the same.
If ever we needed a Western leader who could negotiate it's now rather than sleepy Joe who can't remember what he had for breakfast, after all whatever he decides we in West follow without a descenting voice to be heard, then we have freeze Mitch McConnell how do these people get to hold office of influence?
In time KMR should come good however political events are overtaking economic matters.
I wouldn't forget history here, Cost have small margins if anything untoward occurs in ongoing projects which result in penalty clauses being triggered it can impact the balance sheet dramatically that might be why they are happy to maintain a healthy cash buffer or even worse a client contests a project not being what they expected and heads to the courts.
Low pgm prices forces a rethink at Sibanye, possible job losses and the need to increase efficiency due to low prices.
https://www.miningweekly.com/article/more-than-4-000-jobs-on-the-line-as-sibanye-considers-future-of-four-south-african-pgm-shafts-2023-10-25
Copper futures in London and New York were heading for a 2.5% weekly decline after sentiment was hurt by the stronger dollar, not least against the Chinese renminbi where the offshore yuan traded near a record low amid fears surrounding Chinese growth. A near 30% jump in copper inventories on the London Metal Exchange, the most in two years, added to the negative sentiment, despite the overall level of exchange monitored inventories in New York, London and Shanghai remaining at historical low levels.
China’s commodities import surged last month, ahead of an expected seasonal pick-up in economic activity and as government stimulus begins to filter through into raw materials and following months of destocking amid an uncertain economic outlook, the prospect for further stimulus measures are supporting a period of restocking to meet future demand for finished goods. Coal and copper ore shipments both jumped to all-time highs, crude oil imports reached the third highest level on record while iron ore imports reached a three-year high.
Overall, copper remains resilient and despite an environment of stagnant manufacturing PMIs, normally well correlated with copper demand, Chinese demand has remained surprisingly robust. Not least driven by strong, and government supported, green transition demand towards batteries, electrical traction motors, energy storage and grid upgrades.
The lack of big mining projects to ensure a steady flow of future supply continues to receive attention from long-term focused investors as it supports our structural long-term bullish outlook, driven by rising demand for green transformation metals and mining companies facing rising cash costs driven by higher input prices due to higher diesel and labour costs, lower ore grades, rising regulatory costs and government intervention, and significantly climate change causing disruptions from flooding to droughts.
For now, just like gold, we remain patiently bullish while the price of HG copper continues to trade within a $3.50 to $4 range. In the short-term, movements in the Chinese yuan will likely provide most of the directional price input as speculators, currently holding a small net short in HG copper, continue to adjust positions accordingly.
Hopefully not as low as £1, having no debt is a bonus at present inflationary pressures would be hitting hard if they were still paying debt down, Cu prices relatively healthy considering prices in 2022 were ath and compared to 2020 are up by a decent amount.
The issue here is lead and zinc demand seems to be declining mainly down to slowdown in the West plus after stating a small deficit would occur this year we have a surplus.
If it drops to £1 then p/e about 6 based on current prices so on that basis it's possible.
Been watching this for a while the company looks very promising growing the business while keeping existing clients and £50m in the bank from memory very quiet board which is usually not bad thing.
I am surprised that others have not latched onto this especially in the field they operate.
Mine life and deposits are excellent, cash generation from assets is excellent especially once this latest wcp move is completed, some here think management are good, I on the other hand think they are very average bordering on poor, that is based on cash wastage, operation output stoppage due to dry docking of vessels, which with the cash they have blown they could have spare barges, plus the negative tone to any set of results which in general gets down played.
Then we have the country which has it's issues, on going militants in the north and general sentiment of Africa in general which results in a discounted valuation, current p/e is around 2.4 which is very low imo, however due to jurisdiction I can't see this getting the valuation the asset deserves hopefully in future dividend payments will be some consolation plus there is always the long held hope that someone else will see the value here and relieve management of their duties.
Good to see a high cash position maintained, coupled with a slow down in Karo seems prudent given current pgm prices.
Although current guidance has been missed for pgms I don't see that as an issue if they had exceeded guidance with low prices that would look like a race to the bottom.
Under current circumstances chrome is key good to see it's significant contribution.
Although looking at the price action the market doesn't see anything good while I see competent management.
The company can't control river levels, good news rainfall is on the increase again so that will resolve the issue, good to see another export route being investigated, another positive is the cash position.
Good update with no other unexpected issues reported.
Alternative view to usual narrative which is a surprise.
LONDON, Oct 9 (Reuters) - Copper is overwhelmingly the top bet for base metals next year, attendees at a London Metal Exchange (LME) event said on Monday.
Copper got 53% of votes in an informal poll at the LME Seminar on which base metal is likely to have most upside in 2024, after a series of analysts presented their cases for each of the six base metals traded on the LME plus steel.