mark2017's Commodities to Watch

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Old Jul 6, 2017, 8:37pm   #31
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Old Jul 7, 2017, 3:05pm   #32
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mark2017 started this thread Tesla to build world's biggest lithium ion battery in South Australia

Elon Musk’s company Tesla will partner with French utility Neoen to deliver the lithium ion battery designed to improve the security of electricity network
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Old Jul 10, 2017, 3:31pm   #33
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mark2017 started this thread Lithium Australia prepares to drill Horseshoe Pegmatite Prospect

Published on: Jul 10, 2017 | by Trevor Hoey

Shares in Lithium Australia (ASX: LIT) surged more than 40% under record trading volumes on Friday after the company informed the market that it was ready to commence drilling at the Horseshoe Pegmatite Prospect. This is part of LIT’s Ravensthorpe lithium project which is situated 500 kilometres south-east of Perth.

It should be noted that share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.

In terms of its location, it is arguably of more significance that it is only 18 kilometres from Galaxy Resources’ (ASX: GXY) Mt Cattlin lithium mine. It is possible that positive news also released by GXY last week provided additional momentum for LIT’s share price.

With an 800 metre by 800 metre flat lying footprint containing both lepidolite and spodumene, the Horseshoe Pegmatite shows strong geological similarities to mineralisation at Mt Cattlin.

After a weak share price performance in the first half of calendar year 2017, GXY started the year on a strong note with its share price increasing from $1.65 as at June 30 to close the week at $2.10 last Friday, representing an increase of 27%.

Again share trading performance should not be used as the basis for an investment as it does fluctuate and investors should approach any investment decision with caution.

GXY’s price increase made it the best performing ASX 200 stock for the first week of fiscal 2018, and interestingly there was a strong performance from another specialty metals play in emerging graphite producer, Syrah Resources (ASX: SYR) which delivered a week on week gain of 18%.

While GXY’s strong kick was possibly assisted by the absence of tax loss selling that occurred in June, there was also strong news on the operational front as recoveries of 61% from production of circa 14,000 dmt were achieved, well in excess of initial targets of between 50% and 55%.

This augurs well for a company such as LIT should the mineralisation at its Horseshoe Pegmatite be also deemed to offer robust percentage recoveries when converted to lithium concentrate.

The lithium mineralisation at LIT’s prospect is hosted by the Cocanarup swarm, and a recently excavated costean has revealed lithium mineralisation which includes spodumene, lepidolite and elbaite, all of which can be processed using the company’s proprietary Sileach process.
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Old Jul 13, 2017, 2:33pm   #34
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mark2017 started this thread Very good results

Jul 13 2017 at 4:23 PM
Updated Jul 13 2017 at 4:23 PM
Save article Print License article Northern Star Resources reports strong June quarter after digging deep on growth

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Old Jul 27, 2017, 7:05pm   #35
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mark2017 started this thread Why I think Galaxy Resources Limited could be a great buy and hold investment
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Old Aug 1, 2017, 7:03pm   #36
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mark2017 started this thread Presentation Galaxy Resources
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Old Aug 2, 2017, 6:52pm   #37
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Old Aug 3, 2017, 2:30pm   #38
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mark2017 started this thread Aug 3 2017 at 6:22 PM
Updated Aug 3 2017 at 6:22 PM
Save article Print License article Northern Star Resources maps out mine lives for a decade
Share via Email Share on Google Plus Post on facebook wall Share on twitter Post to Linkedin Share on Reddit Northern Star says it now has mine life visibility of 10 years.
Ryan Stuart

Share on twitter by Tess Ingram Northern Star Resources executive chairman Bill Beament says he hopes the gold miner's new 10-year production plan will "well and truly put to bed" persistent concerns in the market about the company's mine life.

The gold miner unveiled a tripling of gold reserves across its land holding on Thursday, which will result in higher annual production and longer lives for its assets.

Northern Star mapped out a 10-year production plan to help give the market more confidence in the sustainability of its asset base, amid ongoing concerns from analysts about a lack of long-term visibility.

Driven by increased production from its two key operations, Kalgoorlie and Jundee, Northern Star plans to increase production from 525,000 to 575,000 ounces of gold this financial year to 550,000 to 600,000 ounces in fiscal 2019 and 575,000 to 625,000 ounces from 2020 onwards.

Northern Star's Paulsens gold mine.
Ryan Stuart
The miner said this could increase to more than 700,000 ounces a year, if it has exploration success at its third operation, Paulsens, and pushed ahead with the development of its Central Tanami project in the Northern Territory from about 2021.

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View all announcements "I think our shareholders got over our mine life issue 12 to 18 months ago but this now to me is the final piece for the wider investment community," Mr Beament told The Australian Financial Review. "This well and truly puts it to bed."

The dramatic increase in reserves has been driven by Northern Star's focus on exploration around its existing assets over the past three years. A $150 million spend in that time has delivered the miner an additional 4 million ounces of gold reserves at a cost of $37 an ounce and 7 million ounces of resources at a cost of $21 an ounce.

RBC Capital Markets analyst Paul Hissey said the "strong" increase in reserves should "address persistent questions around mine life from its key assets at Jundee and Kalgoorlie".

"This, along with the strong cash margins and balance sheet strength, should be sufficient to entice fresh investment for generalists seeking domestic gold exposure," Mr Hissey said in a note to clients.

Northern Star is hosting a strategy day with analysts and investors on Saturday, which Argonaut analyst James Wilson said should provide more clarity on how the increase in reserves will translate to greater production volumes, particularly at Kalgoorlie where processing capacity is a potential bottleneck.

"Overall it is a great result and it really does reflect the significant spending they have put into exploration and the returns they are going to get out of it will be a lot more than what they have put in," Mr Wilson said.

Shares in Northern Star closed up 4 per cent or 18¢ at $4.67 per share.

It came as ASX-listed gold junior Red 5, which has a market capitalisation of about $28 million, revealed it had inked dual agreements to acquire two gold assets in Western Australia.

Red 5 will pick up Gold Fields' Darlot gold mine for $18.5 million in cash and shares as well as the King of the Hills project from Saracen Mineral Holdings for $16 million in cash and shares.

The projects are about 80 kilometres apart. Red 5 said the deals, to be part-funded via a rights issue, would provide immediate production and cash flow, offered good growth potential and set it up to utilise Darlot as a hub to process ore from other gold deposits in the region.

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Old Aug 4, 2017, 2:01pm   #39
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mark2017 started this thread Good News. Up 8%
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Old Aug 4, 2017, 7:12pm   #40
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mark2017 started this thread Why the Northern Star Resources Ltd share price is climbing today

Gold miner
Northern Star Resources Ltd
(ASX: NST) is top of the
S&P/ASX 200 (Index: ^AJXO) (ASX: XJO) leaderboard today after if flagged it would lift its gold production rate to 600,000ozpa in calendar year 2018. This compares to previous guidance for production of 525,000-575,000ozpa at A$1,000 – A$1,050/oz for FY 2018.

As a result of the improved forecast Northern Star advanced 4 per cent to $4.67 today, with the miner flagging a tripling of estimated reserves to 3.5 million ounces. Its Jundee and Kalgoorlie operations in WA both expanding their inventory and production capacity estimates.

The majority of Northern Star’s operating costs are incurred in Australian dollars, while it sells its gold in U.S. dollars, which means it is a beneficiary of a stronger U.S. dollar. However, as cash rates rise in the U.S. the gold price may suffer as gold produces no income and may become less attractive to investors who could park their money in cash as an alternative and receive growing risk-free interest payments.

According to The Financial Times the 14 analysts covering Nothern Star have a median share price target of $4.63 on the business, with a high estimate of $5.10.
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Old Aug 7, 2017, 8:21pm   #41
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mark2017 started this thread Alan Rule, chief financial officer of lithium miner Galaxy Resources, said he had recently had meetings with some of the biggest traditional car manufacturers in the world about whether the product from its proposed Sal de Vida and James Bay projects would meet their specifications

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Old Aug 8, 2017, 8:41pm   #42
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mark2017 started this thread REUTERS
Aug 7th 2017 at 4:30PM


LONDON - Producers of processed lithium — an essential element for batteries used in electric cars — are agreeing to long-term contracts with their customers to fund the investments needed to address a looming shortfall.
Demand for battery-grade lithium compounds is expected to skyrocket in the next decades in tandem with soaring demand for electric cars as governments, individual consumers and automakers from BMW to Volvo try to reduce their carbon footprint. Lithium also has a role to play in power-grid storage systems from companies like Tesla, and could be used in future technology such as the solid-state batteries being pursued by Toyota and others.
The production and use of electric cars is projected by Morgan Stanley analysts to rise to 2.9 percent of 99 million new vehicles in 2020 and to 9.4 percent of 102 million new vehicles in 2025, from 1.1 percent of 86.5 million this year.
By 2050, 81 percent of 132 million new auto sales will be electric, Morgan Stanley says.

Although there's plenty of lithium around, the problem is ensuring there is enough capacity to process it.
Battery makers and other end-users such as car manufacturers will need to sign multi-year deals that encourage large producers to invest more, and faster, industry sources say.
Some of that is already happening.
"We've established the timeline for our own expansion based on the commitments our customers are making with us," said Tom Schneberger, global business director at U.S.-listed FMC Lithium, one of the world's top four producers.
"Our first priority will be to provide the adequate supply of the high quality products upon which (our strategic customers) rely," he told Reuters.
Expansion plans by Chile's Sociedad Quimica Y Minera (SQM), another of the top four, for next year are also based on long-term agreements, the company said.

The lithium-ion batteries needed to power electric cars use lithium carbonate or lithium hydroxide, but the industry typically talks in terms of lithium carbonate equivalent, which contains both.
Two types of lithium deposits dominate.
One is hard rock as found in Australia, for which ready-to-go capacity to produce battery-grade lithium can take up to three years. The other is brine, mostly found in Chile and Argentina, which can take seven years or more.
China has reserves of both.
Consultants Roskill estimate 785,000 tons of lithium carbonate equivalent a year will be needed by 2025, amounting to a 26,000-ton shortfall from anticipated supply, compared to 217,000 tons of demand versus 227,000 tons of supply this year.
Others expect an even larger deficit.
"There's limited visibility into where we're going to get the last 200,000 tons of lithium if we hit the numbers Roskill is expecting for 2025," said Seth Ginns, a managing director at Jennison Associates.
Jennison manages more than $164 billion of investment and is a top 10 investor in both FMC and U.S.-listed Albemarle, another of the top four producers.
"We estimate the lithium industry is going to need between $4 billion-$5 billion of investment out to 2025," said Simon Moores, managing director at Benchmark Minerals Intelligence.
Price projections out to 2025 are not available, but Benchmark estimates prices of lithium carbonate will average $13,000 a ton over the 2017-2020 period from around $9,000 a ton in 2015-2016.
Demand for lithium hydroxide, preferred over carbonate as it allows greater battery capacity and longer life, is expected to grow at a faster pace. Benchmark predicts the price to average $18,000 a ton between 2017-2020 against $14,000 in 2015-2016.

Top producers are looking at a bonanza if they can ramp up investment fast enough with end-user commitments in hand.
"There are four names that dominate and that is likely to be the case for the next five years," said Jeremy Kent, a portfolio manager at Allianz Global Investors.
Roskill managing director Robert Baylis estimates FMC, Albemarle, SQM and China's Tianqi Lithium Corp. together accounted for 66 percent of the world's lithium carbonate equivalent last year. Wood Mackenzie consultant James Whiteside puts the figure at 78 percent.
FMC's lithium hydroxide capacity rose 80 percent in 2017 to 18,000 tons a year, and it has plans to boost that to 30,000 tonnes by the end of 2019. After that, capacity will be expanded as required by demand, FMC's Schneberger said.
Albemarle is planning to expand its lithium carbonate equivalent capacity to 165,000 tons by 2021 from 89,000 tons this year, a spokesperson said. "We anticipate spending $700 million and $1 billion over the next 5 years."

SQM said in an email it was planning to invest $50 million to expand its lithium carbonate capacity in Chile to 63,000 tons by 2018 from 48,000 tons currently. It also has joint ventures in Argentina and Australia to develop deposits.
Tianqi Lithium declined to comment on its investment plans.
Another company actively investing is Australia's Orocobre, which planned to produce 17,500 tons a year of lithium carbonate at its Olaroz facility in Argentina.
Severe weather cut this year's production to 11,700-11,800 tons, however.
Whiteside said Orocobre's difficulties were typical of many smaller players, noting that the Olaroz facility was the first new major brine operation started in 20 years.
"Because the number of brine operations has been so few historically, there are very few technically experienced chemical engineers to assist these junior companies," he said.
"There are people out there promoting brine projects with plans that are not as robust as they should be."
Reporting by Pratima Desai and Zandi Shabalala; additional reporting by Rosalba O'Brien and Tom Daly.

•Image Credit: Workers in a boat at lithium brine pools in Chile. Reuters
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Old Aug 10, 2017, 8:07pm   #43
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Old Aug 17, 2017, 7:55pm   #44
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mark2017 started this thread All You Need To Know About Northern Star Resources Limited’s (ASX:NST) Financial Health
Veer Mallick August 16, 2017
Stocks with market capitalization between $2B and $10B, such as Northern Star Resources Limited (ASX:NST) with a size of $2.94B, do not attract as much attention from the investing community as do the small-caps and large-caps. Surprisingly though, when accounted for risk, mid-caps have delivered better returns compared to the two other categories of stocks. Mid-caps are found to be more volatile than the large-caps but safer than small-caps, largely due to their weaker balance sheet. I will take you through a few basic checks to assess the financial health of companies with no debt.
Check out our latest analysis for Northern Star Resources

Is NST’s level of debt at an acceptable level?

ASX:NST Historical Debt Aug 16th 17

A substantially higher debt poses a significant threat to a company’s profitability during a downturn. For NST, the debt-to-equity ratio is 1.75%, which indicates that the company faces low risk associated with debt.

Can NST meet its short-term obligations with the cash in hand?

ASX:NST Net Worth Aug 16th 17

Debt to equity ratio is an important aspect of financial strength. But if the company has a substantial amount of cash on its balance sheet, that should allay some fear of a debt overhang and increase the chance of meeting upcoming liabilities. In order to measure liquidity, we must compare NST’s current assets with its upcoming liabilities. Our analysis shows that NST is able to meet its upcoming commitments with its cash and other short-term assets, which lessens our concerns for the company’s business operations should any unfavourable circumstances arise.

NST’s ability to meet its short-term liabilities is an indication of financial strength. Its debt level is also relatively low, which reduces some risk for the company and its investors. Now that you know to keep debt in mind when putting together your investment thesis, I recommend you check out our latest free analysis report on Northern Star Resources to see what other factors for NST you should consider.
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Old Aug 17, 2017, 8:09pm   #45
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mark2017 started this thread Neometals updates from Mount Marion following Mineral Resources results
Neometals Ltd updates from Mount Marion following Mineral Resources Ltd results

Neometals approaches buy-back milestone of 20 million shares
Facebook Twitter Google+ LinkedIn Email Print Download PDF version 00:54 14 Aug 2017
At June 30, Neometals held A$62 million in cash and investments, with no debt.
Neometals Ltd approaches buy-back milestone of 20 million shares
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