2017 was a year of tremendous accomplishment for Clean Teq Holdings in every respect.
We saw remarkable achievements in mine construction, in finance, and in market development, with landmark contracts in every business segment;
We saw a complex business appear as if by magic, including business offices on four continents, and the launch of business website in the water division;
We were informed of superb existing and newly-formed strategic partnerships,
with the likes of Airbus, Peng-Xin Mining, Chinese state and power entities, Chinalco, and Multotec;
We were witness to a major off-take agreement with a leading battery manufacture;
We learned of an astute acquisition of a controlling interest in a VRB business by Mr. Friedland;
We learned of deep and valuable research and development support at prestigious universities and manufacturers;
and we became sure of unseen low-cost manufacturing contacts and alliances.
And oh-by-the-way, we got a listing on the TSX.
The company inspires confidence and optimism. Robert Friedland has a deep long-term strategy, and he knows what he is doing.
I am not sure what is more impressive: His strategic vision, or his managerial talent in executing it.
Clean Teq is a company that is worth following. It is by far my largest position.
There are a lot of companies with good concepts. But Clean Teq has a deep and brilliant strategic concept which is at the heart of major world trends; a revolutionary technology; and a management that executes flawlessly.
**
GOING FORWARD: SUITABLE TOPICS FOR THIS THREAD
1. CLEAN TEQ HOLDINGS, CLEAN TEQ WATER, and their interests, or related companies.
2. Miners and producers of COBALT, VANADIUM, SCANDIUM; also nickel, zinc, graphite, lithium, rare earths, silica, and manganese.
3. WATER PURIFICATION, especially when tied into mineral extraction therefrom.
4. “TECHNO MINERS” and other innovators in mining and material extraction
See notes below on thread and topic overlaps, which are unavoidable.
**
One year ago this week, I wrote an article on Clean Teq Holdings. It was a speculative company, but
one with a visionary and proven leader, dramatic potential in specific, attractive commodities,
innovative methods and IP for mineral extraction, and big ambitions in water purification.
Clean Teq Holdings defied easy categorization, and continues to do so.
One year later, Clean Teq has not disappointed. Clean Teq has exceeded all reasonable expectations.
**
If you need background on Clean Teq, I refer you to the predecessor of this thread: “Scandium, Cobalt,
and Water Purification: Clean Teq Holdings”, where you will also find the guidelines and rules for this
thread; and to the Clean Teq and Clean Teq Water websites, which warrant close examination.
OUR BIAS AND BASIC VIEW
This thread is for those who believe in the coming EV wave, light weighting of transport, and most importantly,
in the importance of energy storage and batteries of all scales;
and also, it is for those who believe that the disruptions caused thereby will be rapid.
Because of this opinion, it follows that the existing viable battery technologies and the materials needed
for them are important. We anticipate rapid change; we subscribe to the Tony Seba “Disruption Scenario”,
that suggests disruptiv changes are occuring faster.
If you disagree with the Disruption Scenario, or the eventual proliferation of EVs,
that is fine; but please do not debate it on this thread. The thread is for those who believe in the future of battery power,
and in the immediate opporunities in commodities related to batteries and energy storage.
We will be able to see in shortly whether we are right or wrong in this belief.
If it takes longer than we think, we will complain about ”being early.”
My perspective is for the next five years. That is “long term”. This is not a trading thread.
Occasionally short-term opportunities are appropriate to call out,
but short-term trading is not the emphasis here.
On the other hand should restrain ourselves from too much attention
to developments and materials for technologies that are likely to take longer than five years to have an impact.
We are looking for investable ideas, not 10 year forecasts on the Future of Civilization.
So let’s keep it down on hydrogen fuel cells and molten salt batteries for a couple of months.
**
NOTES ON THREAD AND TOPIC OVERLAPS
Our assumption is that Li-NCM, VRB’s, and zinc batteries are going to be the main battery formats purchased,
installed or contracted for in the near-term, hence the commodities needed for them are of interest.
New battery technologies are better discussed on the #batteries thread ,
unless they involve a vertical commodity/battery producer.
We are interested in what is going to have an impact in five years.
For example, if you are convinced that Google is about to conquer the world with a molten salt battery,
then come on over here and recommend Morton Salt as a buy-out candidate.
But debate whether molten salt batteries have a future, and when, on the #batteries thread.
News that shows increasing penetration on solar are relevant,
as they confirm the importance of large-scale energy storage.
But we would like to know who is getting the contracts and what type of battery they are using.
There is going to be some unavoidable overlap. Nickel and manganese sources are swing metals,
sometimes they may be better discussed on the Hard Asset thread as base metals.
If you make a post on the wrong thread, don’t worry too much, there are
no fines or jail time. I do it myself all the time and I understand it can be confusing.
You can also use Travis’ new cross-reference gizmo.
Long $CTEQF $CLQ Clean Teq Holdings
This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.
$CTEQF…recent declines…OPINION…a question on the old thread was posted asking about the declines and their relationship to the overall stock market carnage.
My opinion is, that it is the baby getting thrown out with the bathwater.
It is true from a traditional investment point of view that Clean Teq is still a speculation that has no traditional underpinning, like sales and profits and margins.
So the drop might be more severe than average; it is possible.
There is certainly nothing in company fundamentals, nor in recent developments in the target commodities, that diminishes the company prospects. On the contrary, the recent Chinalco announcement and the parade of companies announcing projects and plans using Li-NCM batteries is quite bullish.
Irritated by the drops but in no way concerned about long-term prospects.
May add if the prices go lower.
Long $CTEQF
Rusal–Private..Again–Scandium producer… https://aluminiuminsider.com/rusal-mulling-industrial-scale-production-scandium-oxide-red-mud/ ….Cowboy
Cowboy…not just private…Russian. Interesting that a Russian aluminum company wants to produce scandium.
MGXMF–Long….. ( I am redoing this post because it has been in moderation for several hours..too many links I reckon ) HN just seeing if this was going to be another hairball, cause evidently China is involved here too, some kind of way with MGXMF. I was on ceo.ca and ran across this.. http://www.intecqlimited.com/6319/nanoflotation-david-bromley-engineering-ltd.html#nogo …which had links that said MGXMF was partners in some areas as you can see in the link. Which led me here… http://www.dbe2000.com/nanoflotation-low-energy-low-cost-water-treatment/ … Got too many windows open on this computer again, so I wanted to do some linkin before it locks up again and I lose something. I haven’t seen anything on these two companies websites that leads me to believe that they are public, but it appears that MGXMF has some type of business dealings with them. I’m bored again. sorry…Cowboy
Cowboy…looks like references to A Certain Rising Power get thrown into moderation. Anyway good find on Bromley. Bromley has his own company making gear but he is chief technical officer for PurLucid. MGX has an option on PurLucid. Teck has a position in MGX.
Long $MGXMF
$TECK no poition favorably inclined
MGXMF–Long…Thanks HN. I saw where MGX had an option on PurLucid. I didn’t remember the name Bromley or put them together. It is amazing, at the lack of public companies in these types of Business. We have to go in the back door to be involved. I posted this on the Battery thread also. I saw that my original post finally made moderation……Cowboy
The lack of publicly available small and starter investments is very logical because the big big interests are the ones behind the trends.
The capital needed for these big technologies are stupefyingly large and the lead times are long. But the decision makers know what is coming, so they are keeping the lion’s share of the equity for themselves and gobbling up useful small companies as they go.
The public offerings will come after the big intial gains are already there, and you know who will be getting the proceeds from the IPOs.
In passing, this is one of the reasons I am willing to take a chance on Sparton Resources $SRI $SPNRF. . The risks are high, but the payoff potential is very large. The opportunity in Sparton is an accident, but the accident results is the chance to get equity in 18% of Pu Neng, which opportunity would not otherwise be present.
Cowboy if you are trying to save a lot of links and tieing up your computer, try saving them on a WordPad doc, develop your whole comment there and then paste the whole comment here. Then you can free up windows as needed.
A different look at water, but good to remember the nano connection.
TED talks given in the past:
The weirdness of water…
(Pick up at 9 minute mark)
https://www.youtube.com/watch?v=-OLFwkfPxCg
MGXMF–Long…U-Tube interview with Jared Lazerson published 2/8/18. Speaks of earnings coming, especially from water Purification…. https://www.youtube.com/watch?time_continue=16&v=y9G9aZP5NgY ….Cowboy
$FYI – TAE Technologies Gen 5 reactor targets tripling confinement with 10 times the power by 2020
found on Yahoo and well things are slow.
https://www.nextbigfuture.com/2018/02/tae-technologies-gen-5-reactor-targets-tripling-confinement-with-10-times-the-power-by-2020.html/amp
I hope this happens just don’t be Uranium if it does.
My apologies if this has already been posted. I have done a quick scan and didn’t see it.
The most recent Clean TeQ Company Presentation in the Investors Section:
http://www.cleanteq.com/wp-content/uploads/2018/02/CLQ-Investor-Presentation_January-2018-1.pdf
It’s as comprehensive, impressive, and professionally presented as we have come to expect. 23 pages
$CTEQF…fabulous. 43%+ owned by top four holders.
Total stress on nickel and cobalt….scandium is not even mentioned until page 21 and the water division is not emphasized. What a company !
Construction targeted this year…”mid” to “late” 2018.
With the recent price beat-down, nothing much to do but wait it out or add a little depending on one’s appetite.
Kind of boring. But boring can be good !
**
Note the presentation confirms the Chinese/Euro industrial axis that I have asserted is the driver in the electrification movement. Russia and the US are followers here, not leaders.
CTEQF–Long….DRC and Cobalt article…. https://www.edelsoninstitute.com/wealth-wave/bungle-in-the-jungle-congo-glencore-katanga-cobalt-mining/ ….Cowboy
CTEQF–Long… Mining deals for Cobalt are imminent article…. http://www.mining.com/bmw-mining-deals-imminent-cobalt-price-powers-report/ ….Cowboy
Cobalt off-take…a BMW off-take in cobalt , “Contracts ready to be signed.” That will be a pretty impressive scalp on somebody’s belt.
Wonder who will get it. And I also wonder, if the contracts are “ready to be signed”, what is it exactly that they are waiting for ?
Likely an Aussie or European, with the situation in DRC who the heck is going to sign an off-take on DRC cobalt ?
**
The “contracts are ready to be signed”…. I would surmise that the completion must be something conditional on the supplier’s side that will give BMW some certainty that the mine will actually be able to deliver within a relatively short time period. Something that gives certainty that the supplier will be in production…something like finance and construction. Just a guess.
AUZ trading halt, ROCKET coming Tuesday ++…
BB has done his homework well….
Recent SP manipulation laughable.
Long AUZ and all here who hold.
Squirrel…how fast can AUZ deliver cobalt ? And lithium ?
$AUZ no position
I don’t know the answer to when regards the cobalt, they are going as fast as possible. I however think due to the recent confirmations of how totally unstable the DRC really is, anyone wanting solid cobalt supply in a safe jurisdiction might well take a view that it’s better to wrap things up sooner rather than later. I’d add this regardless of any new developments in battery content or otherwise, especially if you are not Chinese, as IMO DRC cobalt will end up go there more than elsewhere. This based purely have feet on the ground and will of course pay where and when required as corruption if rife.
I do not think the T/H is due to a BMW O/T, just my opinion, be nice but i doubt it, BB the CEO was definitely looking for partners to work with moving forward and all indications look like that will be the case.
I would also add the CLQ seems to be not for sale, whereas AUZ perhaps could be more so for the right price.
Roll on Wednesday opening….
Long AUZ
SS…DRC is a total mess.
$AUZ.asx fp – Halt, binding off-take agreement… Thx ss
https://www.asx.com.au/asxpdf/20180212/pdf/43rhjdwds2dwfg.pdf
Very interesting. Lots of questions.
They are going to use a flow sheet “similar to that of Clean Teq”. They are going to use HPAL…thus they need an autoclave.
They might get an off-take by using the demonstration plant for smaller initial volumes prior to building a full-size plant; or I suppose they could contract out in the earlier stages.
One might fairly speculate or conclude that the “ready to be signed” contracts at BMW might be with AUZ.
We’ll see.
There are some reasons to doubt, the main ones being that AUZ production is a ways away, and the autoclaves, as we know, are a three-year lead time item. BMW talks about a ten year supply; so I wonder if they would enter a ten year contract when the first three or four years cannot be counted on.
It is not actionable anyway since the trading halt is until next Wednesday. AUZ is very promotionally oriented about their news. When Clean Teq announced a 20% off-take with Easpring, they did not think it was necessary to halt trading for three days on account of it.
$AUZ no position
**
I said 2018 will be the year of the cobalt contract, if AUZ gets the BMW deal, that would be the first chip to fall [yes, clean teq signed a contract last year]. There are a lot of car and battery companies that need to lock up their cobalt, so any contract is bullish for the entire sector, and the first contract won’t necessarily be the best. Once this trend picks up it could accelerate quickly, this is a musical chairs game, when the music stops, those that don’t have their cobalt locked up could be screwed.
I would be very surprised if Robert Friedland doesn’t have a very good idea about what’s going on at the moment. Hmm… I wonder if BMW is planning to buy up the entire AUZ resource. We’ll know soon enough.
I wouldn’t be surprised to see streaming type deals, where-by car companies or other cobalt dependent parties start putting up the money to get these projects fast tracked, in return for a percentage of the take.
from the releases, it sounded more like BMW were looking to lock up 10 years of cobalt supply, as opposed to buying the whole project.
Renby, yes…Lithium too. 10 years. Sounds like one mine but there is wiggle room in the language because “contracts” is plural.
Galaxy rumored to be lithium off-take partner.
$AUZ no position…I have inquired of AUZ IR about the capacity of the demo lab autoclave.
Agree on this also; someone who is trailing Clean Teq in terms of time to development and financing might be more susceptible to give better terms to lock up a prestigious contract. The contract could provide them the collateral to raise money for construction.
Lithium vs Cobalt….sorry if this was already posted.
https://nanoone.ca/wp-content/uploads/2018/01/NanoOne_PPT_01_29_2018_web.pdf
$AUZ…demo plant…there re autoclaves, then there are AUTOCLAVES
https://australianmines.com.au/application/third_party/ckfinder/userfiles/files/Off-take-samples-on-track-for-delivery-in-February-from-demonstration-plant.pdf
The demo plant autoclave owned by AUZ is pictured in this link. It looks like AUZ bought a used one also. It is an autoclave…but it is not an AUTOCLAVE.
It is really small compared to the Clean Teq AUTOCLAVES. The AUZ autoclave looks like a regular fuel tank, maybe the size of a small truck; the Clean Teq AUTOCLAVES are simply monstrous, they are the size of submarines.
There is some reason to think they are copying Clean Teq’s strategy…they are now emphasizing the cobalt, scandium, and nickel emphasis on their website; they reference the Clean Teq process and say their flow will resemble it (HPAL system);
and they have published a photo of their autotoclave to gain credibility.
The demo plants for both seem to be sensible first steps…they produce smaller quantities to prove their capabilities, get off-takes, then go for the big production as the market develops.
Clean Teq still has the three-year lead on big HPAL production because their full-prodcution autoclaves are paid for and delivered. This is not to say AUZ can’t land some contracts.
For what it’s worth, I have been trying to estimate the length of the AUZ demonstration autoclave.
https://australianmines.com.au/application/third_party/ckfinder/userfiles/files/Off-take-samples-on-track-for-delivery-in-February-from-demonstration-plant.pdf
Now, if the white cupboard door is approx 15 inches wide, it looks like the autoclave is 5-6 cupboard door widths long which would be 75-90 inches. One meter is just over 39 inches so two meters would give us just under 79 inches. The AUZ autoclave at approx 2 meters long is one thirtieth the length of one of the 60 meter Clean TeQ autoclaves.
AUZ says their autoclave was installed over the Christmas period and it may have been fabricated in a rush order, possibly by one of the European manufacturers, and then flown in. The tank would be easy to fabricate but the fittings would take longer. Perhaps a priority order could be completed in approx. 3 months. As for off-take samples of the hydrated Cobalt and Nickel (II) Sulphates, they may not have been produced by this plant yet. AUZ says they expect to have them ready sometime this month but it would depend on how well the commissioning went.
It’s just for demo lab production. I have emailed them asking for the capacity.
It is not nearly in the same league at the Clean Teq pair…it’s like a
mini-toy compared to the pair at Sunrise. Good enough to prove the process and make samples.
$AUZ autoclave… the volume is a function of the cube of the linear dimension. Give all credit to AUZ, they have set up a demo plant, but the production capacity of their autoclave in miniscule compared to the Clean Teq monsters. They are three years behind in production until proven otherwise.
Yes, and it begs the question as to why would a company do an off-take agreement for cobalt and nickel sulphates with AUZ when Clean TeQ is miles ahead in the race to production. Presumably said company has had discussions with Clean TeQ. Perhaps it is as Squirrel suggests, that part or all of AUZ may be considered for sale, whereas Clean TeQ is not. One thing is certain, it’s going to be an exciting year for some junior miners of battery metals.
Long $CTEQF, $ARRRF Just took a small Lithium position in GALXF.
Clean TeQ I’m sure has their own criteria for what they are looking for in a company to which they will commit off-take. As each non-Congo source of cobalt gets committed to some car or battery company, the remaining sources will be in strong positions to have their demands fulfilled.
Where did the Galaxy rumour originate from? I assume your taking a position is due to that?
If cobalt was an essential part of my production line and after the DRC situation the other day and generally I would want to firm up a solid supply very soon. This is good for all mines that are holding, even if they are a bit away from production. CLQ should be one if not the 1st into the market. I’m reading that AUZ should get there to, although the autoclaves seems to matter, I’m not sure it’s been touched a upon that much on hotcopper for example. As you say hn this year will be a great year for some junior miners in battery metals.
I have also recently taken Long positions in AEE, they have uranium, but more importantly a very large amount of vanadium.
Also Long KRC for vanadium but they also have titanium. As a back up they hit gold which pushed the SP higher recently.
Galaxy mentioned in Oz paper as a rumor.
$AUZ…autoclaves…I went bananas on the autoclave announcemnt last year from Clean Teq. The announcement struck me as strange at first: Why would they make an announcement about such specific equipment ?
Then I understood that if you are going to do HPAL treatment of laterite ores, you need these autoclaves, and they take three years to get. What Clean Teq was saying was, ‘Hey look here, we are serious, we got the equipment already. Let the other developers say whatever they want to, they aren’t doing anything until they got their autoclaves, and they cost millions and take three years to build from time of order.”
Now I am not a metallurgist and there are surely other means of extraction for cobalt and other minerals. But if you are going to do laterites, it seems that HPAL is the best method. AUZ is doing HPAL. So is Clean Teq.
But Clean Teq has their autoclaves already, and they are not rinky-dink ones like the AUZ autoclave in the demo lab. They are for large volumes.
Listening to Renby and reading the announcements, I have the opinion that it is very important to be able to actually ship cobalt sulfate in the next two to three years. Sure, you can get a great multiple on a mining prospect.
But in my opiniuon it is the surest thing to have a non-DRC cobalt source that can actually ship when and if the price goes ballistic. From what I have seen that means Clean Teq, first, Clean Teq second, and Clean Teq third.
Yes Squirrel, I bought on the rumor, just a few shares. I have never owned shares in a Lithium company before, so we’ll see how do now that more battery metal off-takes are expected this year.
eager, that is what I have been wondering. I just don’t know why BMW or anybody else would do a 10 year offtake with someone who is at least two or three years from producing volume.
However AUZ may land a contract that they can use to speed up financing. It is pointless to be adamant about it, they may make an announcement today that proves me wrong.
They will make an announcement this week, so we will see what they have got. Even if they do land the Beemer deal, I will be curious as to the terms and timeframe contemplated.
I do not see how AUZ can ship major quantities of cobalt sulfate before two and a half years from now, minimum; more likely three to three and a half years, if everything goes well.
To be honest, even Clean TeQ, with its autoclaves, worker dorms, bank financing, Friedland, the Chinese, the kangaroos…… is looking at 3.5-4 years before they are fully producing. They MAY produce SOMETHING in 2020, but its an 18 month ramp up to full production according to company guidance. We all wish we could get this done quickly, but it has to go thru the process.
By the way, for a link that backs up this timeline, see page 3. http://www.macquarie.com.au/dafiles/Internet/mgl/au/apps/retail-newsletter/docs/2017-03/CLQ280317e.pdf
It is a year old I believe, but Clean Teq guidance has been that the project is “on schedule” as opposed to behind schedule, when they postponed their DFS.
HN, this is also why I don’t agree that CTEQF is 3 years ahead of everyone else, because conceivably, if someone else ordered their autoclaves tomorrow, and they get them delivered in 3 years, they could conceivably also be ready to produce in 3 years. But from what I can see, CTEQF is at least 18 months ahead of the other australian CTEQF wannabes.
renby…we can’t agree on everything. But my point of view is that postponement of the DFS is irrelevant to Sunrise, as far as the completion of the mine.
In this case, the DFS has no bearing on the construction timetable.
They have already decided to build Sunrise.It is the number one priority of the company. They are hiring people, in fact the hiring of the operations manager was announced today; they have ordered millions of dollars in equipment, including a three-year lead item, and they have off-takes.
True, the DFS is to get financing, but they are not holding up a construction decision because of the DFS. The DFS is for financing of a project THEY HAVE ALREADY DECIDED IS GOING TO BE BUILT.
It doesn’t matter if the DFS is a few months late.
They are going to break ground this year. They have said so…” Mid to late 2018″.
I grant it is possible that a different extraction method may not require an autoclave with a three-year lead time. But in the case of AUZ they are following in the footsteps of Clean Teq… their demo plant requires an autoclave for HPAL processing. They have stated the flow sheet will be like Sunrise. So if they want a big autoclave, it will take them three years from time of order.
So I say, until it is ordered, Clean Teq has a three-year lead on AUZ, until and unless AUZ can pull a magic trick and produce a 300 or 600 ton autoclave out of a hat somehow, like Clean Teq did.
As far as AUZ ordering one, it is easy enough to inquire of their IR if it is on order. They should be able to answer “yes” or “no”.
That’s all we need to know about their production timetable. It will be three years from the date they say “Yes, we have ordered the autoclave.”
No doubt, I expect them to break ground by mid year. So 3 years to build and commission, if it all goes well, start production mid 2021, with 2022 as first year full production. That is the timeline I have been going by, anything sooner is a positive surprise in my perception, but not an expectation. I said the PFS delay didn’t change anything, it just kept the same schedule from the previous year, so 2021/22.
renby…prepare to be favorably surprised. I wouldn’t be shocked if they ship out of Sunrise by the end of 2019.
We can be sure that everything that can be done to expedite production is being done.
I suppose we’ll find out the timeline in just about a month, it would be huge if we could speed things up. I keep my expectations in line with guidance, but very open to over-achievement. Right now I’ll use mid 2021 for first pour, if they can produce something in 2020, that would be beautiful. 2022 for first full year production feels so far away.
renby, you could be 100% correct.
My assertions, while I believe them, are not based on official guidance. They are inferential and based on my interpretations of what they are doing, what we can see, and the company’s past track record of underpromising and over-delivering.
Clean Teq is very cautious on initial guidance, and for this reason I do not always take them literally.
**
An example of this is the employment action at Sunrise. They are hiring people, readers have reported ads in local papers for positions, and this week they have named a Director of Operations. I just do not believe that they would put on payroll for an operation that will not be producing until three years from now.
The fact that they are making employment commitments now indicates to me no more than 2 years before operations.
This is an example of where I believe that Clean Teq’s on-the-ground actions indicate a faster internal timetable than official investor guidance.
Another example. In the official guidance on scandium, we asked them point-blank. IR totally downplayed the near-term potential of scandium. “Not an immediate priority. Future opportunity sure, but right now it’s nickel and cobalt, cobalt and nickel.”
Then within a week or two we see patents filed for
scandium processing, and then a few weeks after that we get the Chinalco announcement. In this case I do not care what IR says…I am expecting a scandium off-take within two years.
It is very much my style, whether it is an investment, product, service, or date, to manage my expectations. I hate the feeling of disappointment, so I leave more mental space for upside than downside as a general life strategy. It seems to work, as I feel extremely satisfied with things, at least for the time being.
Understood. Control of emotions is harder than making a good pick.
AUZ and ARL are high cost operations using old technology. People do not realise the importance of CLQ tech to make Sunrise viable. When it comes to costs CLQ has no competition. Meanwhile AUZ and ARL will sell bells and whistles while CLQ breaks ground in the second quarter. The serious money is behind CLQ.
ARL and CLQ will have their PFS/DFS reports out within the next 6 weeks, then we will have some real numbers to look at. I can’t wait. I really haven’t seen how much difference there is between CLQ technology for mining laterites, and “the old technology” way, both using HPAL. So I am expecting to see some kind of pound for pound lower cost the CTEQF way, since they market themselves as a better and lower cost technology. As for Ardea, I anticipate their PFS will look very compelling, and their deposit is no “bells and whistles”, right now it truly is the biggest cobalt deposit outside the congo, and by a long shot.
ARL’s KNP is decent grade, but small. It’s 1/1 acid that will ensure it’s costs are sky high. The Western Australian laterites are very different from Sunrise.
I do think it has more potential than AUZ though.
With CLQ tech ARL might make it as it has the grade. AUZ doesn’t.
Keep in mind the DFS is much more rigorous than a PFS. Higher degree of certainty. You go to banks with a DFS.
$AUZ no position…they are striving mightily to emulate Clean Teq and keep up, are saying their flow sheet is similar to Sunrise…they are showing all three targets, they say they will be using HPAL. I am not being dismissive, in fact I give them credit for paying attention to what Clean Teq is doing. But they are following.
It could be a great stock but I agree with Renby in prefering Ardea as a second cobalt pick.
The size of Ardea’s KNP cobalt would make it 4th largest in Australia, with itself as #1, and Clean TeQ as #2. Its grade is the same as CLQ, but because it is 18 months behind, and such a huge deposit, it is very likely to have several upgrades prior to their DFS, due in 2019. John’s comment about western australian laterites vs cleanteq laterites not being the same is new info for me, so he says that will make Ardea’s costs much higher. I’ll be looking for that in the PFS.
This is what Ardea has to say that may be considered somewhat of a rebuttal to some of John’s points:
In selecting HPAL, many factors were considered, including:
• Capital expenditure (CAPEX) to develop HPAL and atmospheric leach are very similar, with HPAL actually lower cost than most variations of atmospheric leach considered (reflecting the additional reagent consumption and recovery requirements of atmospheric leaching).
• Operational expenditure (OPEX) is considerably lower for HPAL than for atmospheric alternatives.
• HPAL offers considerably lower acid consumption, which is significant in terms of cost and
environmental considerations.
• Without impinging upon cobalt and nickel production, HPAL offers flexibility to recover by-products
such as scandium, aluminium and manganese from the Goongarrie Line.
The Clean Teq laterites are really easy to dig out, they don’t even need to blast a lot of it. Just stick the bulldozer in there. “Friable” is what they call it.
This may be another exceptional advantage. But I still like Ardea’s deposit size. I doubt that I would hold many cobalt stocks to the time of operation when the hard operational costs are really impacting things.
AMYZF– Long ( small position )…..Samsung to recycle Cobalt from batteries https://www.businesslive.co.za/bd/companies/2018-02-12-samsung-sdi-to-recycle-cobalt-from-cellphones-to-meet-rising-global-demand/ ….Cowboy
Morning everyone.
I had an interesting thought this morning. (to me anyway!)
I was thinking since there were streaming deals, buy offs, etc., I wonder if anyone ever thought of Co-Op’s. Farming has done it forever, and with all of the enormous costs involved today and the product scattered among thousands of permits, I think that it might one day become necessary to collectively work together to survive for some companies.
I am not talking about Bitcoin mining here.
Just a thought.
Edski, I have had the same thought, it seems to me farming finance has a lot of the same problems as mining. The only “streamer” I have found in agriculture is Input Capital Corp. They are in Canadian Canola. I like them although I have no position.
Also Live Oak Bank in North Carolina is an innovative banker that specializes in certain sectors. No position.
CTEQF–Long…. We have a fix for this in Australia I believe ! China’s Cobalt conundrum… https://www.lowyinstitute.org/the-interpreter/china-s-cobalt-conundrum-congo Cowboy
$CTEQF – Appointment of Operations Director to support Clean TeQ Sunrise Project development
Clean TeQ has today announced appointment of Mr Tim Kindred as Clean TeQ Sunrise Project Operations Director, an
important leadership role as the project progresses through development and into operations.
https://www.asx.com.au/asxpdf/20180213/pdf/43rjk1c7nj18gy.pdf
note, I’d like to see this guys resume for how many jobs he has finished ahead of schedule.
$CTEQF long
Sounds like he’s going to run the operations center after they build it.
China’s auto sales post double-digit growth in January
http://www.xinhuanet.com/english/2018-02/09/c_136962484.htm#0-twi-1-37907-7250227817ecdff034dc9540e6c76667
$CTEQF – These American Cities Are Running Out of Water
found on Yahoo;
http://observer.com/2018/02/los-angeles-atlanta-miami-and-san-francisco-are-running-out-of-water/amp/
CTEQF long
Benefits of Clean TeQ’s ore processing over the traditional methods.
On page 14 of Clean TeQ’s January 2018 Investor’s Report,
http://www.cleanteq.com/wp-content/uploads/2018/02/CLQ-Investor-Presentation_January-2018-1.pdf
three methods of ore processing are compared, namely Clean TeQ’s Clean-IX method involving Ion-Exchange after HPAL, traditional smelting (pyrometallurgical), and hydrometallugical, using aqueous fluids. Clean TeQ’s process involves significantly fewer steps than the others. So I sent the following question to their IR and received a very prompt reply from Richard Glass.
Question: Hello Richard,
With respect to your January 2018 Investor Presentation I have a question regarding Clean-IX processing on page 14. Your processing of the ore to yield high purity samples of Cobalt and Nickel (II) Sulphates involves significantly fewer steps than the traditional methods. Does this mean that Clean TeQ’s processing is both faster and cheaper than the other methods, and is it possible to put some comparative figures on this?
Many thanks for your help.
Clean TeQ Response
Thanks for your email.
It’s hard at this point to put precise figures on the benefits, however there is a benefit both from a Capex and Opex perspective.
Capex wise, if we replaced our ion-exchange component of the flow sheet with a traditional CCD system, the Capex benefit is probably in the range of 20-30%. Other benefits include a much smaller footprint. Opex wise, we’re working on these numbers as part of our DFS (due for release this quarter), however we predict there will also be strong operating cost benefits.
The ion-exchange flow sheet is not necessarily faster, however it does result in better recoveries.
(CCD – Countercurrent Distribution is a method of separating substances.)
$AUZ demo autoclave capacity…IR at $AUZ courteously answered my inquiry.
The autoclave at the demo plant has a capacity of 800 tons per year and was purchased new for the demo plant.
AUZ PR Dept.
LOL!!