Posted by AGORACOM-JC
at 2:39 PM on Monday, December 9th, 2019
SPONSOR: New Age Metals Inc.
The company owns one of North America’s largest primary platinum
group metals deposit in Sudbury, Canada. Updated NI 43-101 Mineral
Resource Estimate 2,867,000 PdEq Measured and Indicated Ounces, with an
additional 1,059,000 PdEq Ounces in the Inferred. Learn More.
Palladium eyes $1,900 in record surge, gold firms on trade doubts
Palladium soared to a record just shy of the $1,900 mark on Monday
Gold edged higher as uncertainty over U.S.-China trade talks took center stage ahead of a Dec. 15 deadline for fresh U.S. tariffs.
Autocatalyst metal palladium climbed to an all-time high of $1,898.50 an ounce and was last up 0.19% at $1,881.43.
“Palladium has a very strong fundamental backdrop with supply set to
stay quite scarce and demand growth set to increase,†said Daniel Ghali,
commodity strategist at TD Securities.
Palladium has risen nearly 50% in 2019 on a sustained supply squeeze,
and has constantly been breaking records, despite a weakening global
auto sector. Increasingly stringent emissions regulations globally are
raising the palladium in autocatalysts for gasoline-powered cars and
2020 could see the most number of regulations, Ghali added.
“There is a widespread expectation that (palladium) spot prices are
headed towards $2,000 and the market does currently appear to be in a
one-way street,†INTL FCStone analyst Rhona O’Connell said in a note.
“Even with the (auto) sector under pressure, palladium will be in
deficit for the foreseeable future and the funds are chasing it higher.â€
“The tariff deadline of Dec. 15 is certainly top of everyone’s mind
… The situation is still uncertain, helping gold stay firm,†TD
Securities’ Ghali said. China said on Monday it hoped to make a trade
deal with the United States as soon as possible, as Washington’s next
round of tariffs against Chinese goods is scheduled to take effect on
Dec. 15. Also supporting bullion, equity markets were further pressured
after China’s exports shrank in November.
Markets now await the U.S. Federal Reserve’s two-day meeting starting
on Tuesday for cues on its monetary policy. The central bank is
expected to highlight the economy’s resilience and keep interest rates
on hold in the range of 1.50% to 1.75%.
U.S. investment bank Goldman Sachs said investment demand for gold
would be supported by recession fears and political uncertainty,
forecasting prices at $1,600 an ounce over a three- and 12-month period.
Platinum and silver were up 0.2% at $897.36 and $16.60 an ounce, respectively.
Posted by AGORACOM-JC
at 12:42 PM on Thursday, December 5th, 2019
SPONSOR: New Age Metals Inc.
The company owns one of North America’s largest primary platinum
group metals deposit in Sudbury, Canada. Updated NI 43-101 Mineral
Resource Estimate 2,867,000 PdEq Measured and Indicated Ounces, with an
additional 1,059,000 PdEq Ounces in the Inferred. Learn More.
Palladium zooms past $1,860/oz
Palladium was up 0.3% at $1,845.80 an ounce, after hitting a new high of $1,861.71 earlier in the session.
The metal has been breaking records daily since Nov. 25.
“Palladium positioning is slightly counter-intuitive to the price
action, implicitly confirming heavy OTC interest from the long side,â€
INTL FCStone analyst Rhona O’Connell said in a note. “After weak longs
were shaken out in early November another push to the upside is now
approaching resistance from the uptrend.â€
Concerns that supply of the metal used in car exhaust systems could
run out has helped to lift prices by more than 47% this year alone,
despite a weakening auto sector.
Silver shed 0.4% to $16.95 an ounce and platinum gained 0.4% to $903.51.
Posted by AGORACOM-JC
at 2:55 PM on Tuesday, November 26th, 2019
SPONSOR: New Age Metals Inc. The company owns one of North America’s largest primary platinum group metals deposit in Sudbury, Canada. Updated NI 43-101 Mineral Resource Estimate 2,867,000 PdEq Measured and Indicated Ounces, with an additional 1,059,000 PdEq Ounces in the Inferred. Learn More.
Investor demand to create deficit in platinum market in 2019 – WPIC
In its Platinum Quarterly report for the third quarter, the WPIC
updated its supply and demand forecast for the year and released its
initial estimates for 2020
Because of strong demand for exchange-traded products the platinum’s
expected surplus of 345,000 ounces is projected to fall into a 30,000
ounce deficit
(Kitco News) –
Unprecedented investment demand has helped to transform the platinum
market, shifting what was expected to be a surplus market into a small
deficit, according to the latest data from the World Platinum Investment
Council (WPIC).
In its Platinum Quarterly report for the third quarter, the WPIC
updated its supply and demand forecast for the year and released its
initial estimates for 2020. Because of strong demand for exchange-traded
products the platinum’s expected surplus of 345,000 ounces is projected
to fall into a 30,000 ounce deficit.
“The substantial 12% increase in total demand is driven by record ETF
buying, which more than offsets expected demand decreases in the
automotive (-5%), jewelry (-6%) and industrial (-1%) segments and total
supply growth of 2% for full-year 2019,†the WPIC said in a press
release.
According to the report, funds investment demand has driven
platinum-backed ETF holding to one million ounces so far this year; “the
highest seen since physically backed platinum ETFs were launched in
2007,†the report said.
“This ETF buying by large institutional investors, who typically take
2 to 3 year views and positions, reflect the value opportunity they
see; driven by future demand growth potential and constrained supply,”
the WPIC said.
Looking ahead, the council said that they are forecasting a surplus
of 670,000 ounces next year, reflecting a 1% increase in supply and a
10% decrease in demand.
However, Trevor Raymond, director of research with the council, said
that the estimates are fairly conservative and it wouldn’t take much to
push the market back into neutral territory. Raymond added that he
expects investor demand to remain strong.
“You only need two or three funds to increase their platinum holding
to see a repeat of this year,†he said. “The fact that investment demand
has turned the market around so quickly should not be ignored.â€
Along with investment demand, Raymond said that their estimates also
don’t include substitute projections and rising diesel vehicle demand.
With palladium expected to see its ninth consecutive year of supply
deficits, Raymond said that substitution remains an important topic
within the PGM market. He added that he suspects that auto companies are
already using cheaper platinum instead of palladium.
“I think we will start to see signs of substitution within the next 12 to 18 months,†he said.
Raymond added that a bottoming in the European diesel auto market would also be a positive sign for platinum.
“Every 4% increase in market share in the European auto market equals
roughly 100,000 ounces of platinum,†he said. “Auto companies
substituting 4% of the palladium for platinum would equal about 400,000
ounces. If a few factors come together next year the market can easily
become balanced again.â€
As for platinum jewelry demand, which has declined 6% so far this
year, Raymond said that stable higher prices could ignite renewed
interest, especially in China and India, as those markets continue to
deal with near-record high gold prices.
Posted by AGORACOM-JC
at 12:06 PM on Friday, November 22nd, 2019
SPONSOR: New Age Metals Inc.
The company’s Lithium Division has already made significant
acquisitions in Canada and the USA. The company also owns one of North
America’s largest primary platinum group metals deposit in Sudbury,
Canada. Updated NI 43-101 Mineral Resource Estimate 2,867,000 PdEq
Measured and Indicated Ounces, with an additional 1,059,000 PdEq Ounces
in the Inferred. Learn More.
What role are lithium-ion batteries playing in energy transition?
Lithium-ion batteries have been essential to the mainstream adoption of electric vehicles as part of a larger energy transition.
This has led to an unprecedented surge in the market for lithium-ion
batteries and an even larger spike in supply. Prices have fallen
recently, but demand is expected to continue rising.
Lithium-ion batteries also have potential applications in
utility-scale renewable energy, although they face competition from
newly developed technologies in that arena.
The energy transition has encouraged industries to move from fossil
fuel to renewable energy sources. In doing so, companies have faced
challenges in determining how to store significant amounts of energy for
extended periods of time. This need is especially acute in the electric
car market, which has turned to lithium batteries for energy storage. Demand for lithium
is projected to grow by as much as 20% in 2019 compared to the previous
year, according to Chilean producer SQM, largely because of increasing
investment in and mainstream adoption of electric vehicles.
More traditional technologies, like internal combustion engines, use
energy almost as soon as it is created. Comparatively, electric vehicles
need to store electrical energy for long periods of time before using
the supplies. Lithium-ion batteries, specifically those using the
compound lithium hydroxide,
store energy while taking up less space than other battery
technologies, and their adoption by the mass market has encouraged
innovation in the technologies underpinning the batteries. The impact
and success of lithium-ion battery technology and its potential in the
global energy transition to renewable energy has been recognized on an
outsized scale — the technology’s creators won the Nobel Prize for chemistry in 2019.
Tesla,
the electric car manufacturer owned by Elon Musk, has become a major
player in the American lithium business. Tesla acquired lithium deposits
across the American West while building huge “gigafactories†to mass
produce the batteries. The company’s plans call for the first of these
factories in Nevada to process 25,000 metric tons of lithium hydroxide
per year, and it has a larger footprint than any other building in the
country. Electric vehicle sales
worldwide surged 75% year over year in the first quarter of 2019, even
as the overall global automobile market contracted; regardless of
opinions over the energy transition’s evolution, all of these cars need
batteries.
Although electric vehicles have been the most significant application
of lithium-ion batteries to date in the energy transition, lithium
could also make renewable energy sources more viable for utilities.
Whereas traditional fossil fuel power plants constantly produce energy,
renewables like solar and wind can only produce energy while the sun is
shining or the wind is blowing. To ensure that the power grid works
constantly, regardless of external variables, transitioning to renewable
energy would require the utility-scale use of energy storage. S&P
Global Market Intelligence analysis shows that lithium-ion batteries are
seen as the technology to compete with in this market.
Potential alternatives to lithium-ion batteries include batteries
made from different chemical compounds. Lithium has faced some
technological challenges in its adoption at the grand scale necessary
for utilities, which resulted in multiple fires in Arizona that led a member of the state’s public utilities commission to call for different technology solutions.
The increasing demand for lithium-ion batteries and the importance
they may hold for the transition to renewable energy has sparked
geopolitical competition to secure a stable supply of batteries. Chinese
firms have invested billions of dollars in lithium deposits across Australia and South America in recent years as part of the country’s plan to quadruple electric vehicle production between 2019 and 2025. In response, European companies
have sought to expand their own investments in lithium so that their
supply of batteries does not rely on foreign supply chains. Companies
investing in European lithium processing have also voiced concerns about
the potential environmental impact
of processing the lithium into batteries in China and then shipping
them across the world for use in Europe. As similar tensions arise
between China and the U.S., lithium has become another flash point in the countries’ trade battles.
Market demand has contributed to a surge in the lithium mining and production businesses. Budgets for mining industry lithium exploration
grew nearly sevenfold worldwide between 2015 and 2018, according to
S&P Global Market Intelligence. The jump in demand for lithium-ion
batteries led to a spike in prices in the early 2010s, and acquisitions
of lithium deposits and mines rose sharply. Since then, the supply of
lithium has risen more quickly than demand, so prices have fallen and
deal-making has slowed.
Although lithium prices across autumn 2019 were on the lower side and
some projects have been delayed or cut back, many market participants
still expect the sector to grow significantly. Lithium production is expected to triple to 1.5 million metric tons worldwide by 2025. S&P Global Platts has reported on fears that even this increase in supply might not be enough to keep up with demand, especially if expected electric vehicle adoption rates continue.
Posted by AGORACOM-JC
at 11:59 AM on Thursday, November 21st, 2019
SPONSOR: New Age Metals Inc.
The company’s Lithium Division has already made significant
acquisitions in Canada and the USA. The company also owns one of North
America’s largest primary platinum group metals deposit in Sudbury,
Canada. Updated NI 43-101 Mineral Resource Estimate 2,867,000 PdEq
Measured and Indicated Ounces, with an additional 1,059,000 PdEq Ounces
in the Inferred. Learn More.
Lithium: The New Oil
Lithium prices will likely increase in the next few years.
As electric cars replace gasoline powered ones, lithium will gain a strategic value not unlike that of crude oil today.
And, Bolivia, the poorest country in South America, has the resources to become the ‘Saudi Arabia’ of lithium.
The Coup in Bolivia Could Boost Lithium Prices and Energy Resource Geopolitical Dynamics
Lithium prices will likely increase in the next few years. As
electric cars replace gasoline powered ones, lithium will gain a
strategic value not unlike that of crude oil today. And, Bolivia, the
poorest country in South America, has the resources to become the ‘Saudi
Arabia’ of lithium. The resignation of Evo Morales has tightened the
market, indefinitely putting a halt to important lithium mining
projects, which should sustain prices in the medium term. Notably, the
coup and its possible – if not probable – links to lithium mining have
stressed how all South American leaders (just as those of the Persian
Gulf in relation to oil) will have to decide how manage the largest
lithium reserves in the world.
Lithium: The New Oil
To an even more anxious extent than drivers looking for gas stations
during the 1973 OPEC oil embargo, nothing characterizes 21stcentury
‘homo-sapiens’ lifestyle quite like the (insert gadget of
choice)-battery-socket triangle. If social scientists, media gurus and
advertising copywriters have noticed this trend, investors should have
perceived by now that much monetary value lurks behind the gesture of
‘plugging-in’. The whole world needs to ‘plug-in’ angst, and the angst
to recharge batteries will only intensify as car manufacturers are
shifting away from the internal combustion engine in favor of electric
motors at a faster pace than anyone had imagined even five years ago.
Whoever has the most reliable, enduring, lightest and most powerful
battery will build the best vehicles. Batteries, in an imminent future,
will even generate enough power (and be light enough) to propel
airplanes.A cell phone, a notebook, a tablet, work because of the
energy contained and released through lithium-ion batteries. But, the
appeal of electric cars, (or even hybrid cars), is driving the appetite.
Such vehicles are, quite literally, battery packs on wheels. And the
batteries alone make up some 42% of the sticker price. (Source:
Investopedia).
Many see ‘electric power’ as the way to end dependence on oil from
the Middle East. However, such independence is the stuff of geopolitical
fantasies: the rising demand for battery generated electric power has
already shifted the geopolitical balance away from the sands of Saudi
Arabia and closer to those of South America, which holds the richest
lithium deposits in the world; especially, Argentina, Chile and Bolivia
together hold some 80% of the world’s lithium (the Salar de Uuuni,
a salt flat covering 10,000 square kilometers at 3,600 meters above sea
level). being the largest known deposit). It is located near Potosi,
perhaps the most important mining center of South America during the
Spanish colonial era. The salt flat, which is also rich in magnesium,
potassium and sodium, contains some 47% of the known world’s lithium
reserves. At a price ranging between $8,000-10,000 per metric ton, the
potential is clear.
Indeed, the batteries that have hooked the whole world are the
lithium-ion (Li-ion) kind. And they are found in anything from
smartphones to tablets, to electric cars and modern airliners.
Lithium is a low-density metal, typically found in salt form, noted
for its ability to keep its level of charge (in case of inactivity). It
is an abundant alkaline mineral, but nowhere is it abundant (and easy to
extract) as it is in vast majority of the kind that’s most suitable to
make rechargeable batteries. However, one of lithium’s main advantages
as a resource is that, unlike oil, just about everyone has some. It’s
found everywhere; and therefore, it’s unlikely that conflicts will break
out because of it. Should a geopolitical dispute develop over lithium,
it will have more to do with the know-how to advance related battery
technology than Nevertheless, because of its sheer size, all major
industrial powers, starting from the United States, are coveting South
American lithium. Those who will, write rules of the contest to build
the best lithium battery, therefore, will not focus on the geographic
control of the resource. Rather, they will focus on the ability to
combine the expertise, technology and resource together in order to
transform the resource directly into batteries. More than
power-relations, the winners of this game will excel at diplomacy.
Battery dominance will be a factor of scientific competence, mining and
geopolitics.
Who Wants South American lithium?
All industrial powers want South American lithium, though, clearly
the United States, Japan, Germany, South Korea and, of course, China
have the most interest. But, it’s China, which has been investing most
heavily in the research. And therein rests the core of the problem.
Because the real ‘resource’ is the manipulation and technology around
lithium, ambitious governments, focused on lifting standards of living,
have imposed conditions on would-be extractors. They must invest in the
mining as well as the technology. And that’s the key to understand what
happened to President Evo Morales of Bolivia – and the key to
understanding how the race for lithium, the ‘21stcentury oil’, will have
to be played. Indeed, as commercial lithium mining operations in the
Salar de Ayuni began in 2016, President Morales quickly became
dissatisfied with the notion of perpetuating the exporting model that
has kept so many countries behind: that is the export of natural
resources and the import of expensive finished goods.
Morales wanted to establish an in-house battery production process in
order to export finished batteries. And Morales reached such an
agreement in January 2019 with Germany’s ACI System(ACISA).
Among others, ACISA supplies batteries to Tesla Motors. Germany, which
is one of the remaining industrial powers, needs to secure batteries for
its large auto manufacturing groups, which have quickly developed
electric vehicle lineups, after a few years of trailing behind the
Japanese and Americans. But last November 4, the Bolivian government
canceled the agreement after protests from Potosi locals, expressing
anger over the terms of the deal and the environmental consequences
deriving from the magnesium tailings from the lithium extraction.
Morales, for his part, probably expected more investment in the human
resources through the installation of educational facilities, chemistry
faculties, or at least scholarships to train the local people in the
relevant skills. Morales, in turn, wanted to sign a $2.3 billion
agreement – this time with China – turning Beijing into its strategic
partner for lithium extraction and battery technology. Morales thought
China to offer the best solution to achieve a complete battery
production supply chain. The Bolivian government was even rumored to
attempt a nationalization of the project, but a week after the
cancellation, President Evo Morales ‘resigned’ (or was the victim of a
coup).
Is there a coincidence between the cancellation and the resignation?
Perhaps, but the resulting political turmoil has effectively cut out
Bolivia and its massive lithium resources from the market. Even China,
which had designs with a project of its own in the Salar de Uyuni, will
not have a chance to pursue any mining, given the political and social
instability – even if the new people in charge will seek re-alignment
with the West (i.e. USA, Europe) instead of China and Russia.
Posted by AGORACOM-JC
at 3:30 PM on Friday, November 15th, 2019
SPONSOR: New Age Metals Inc.
The company’s Lithium Division has already made significant
acquisitions in Canada and the USA. The company also owns one of North
America’s largest primary platinum group metals deposit in Sudbury,
Canada. Updated NI 43-101 Mineral Resource Estimate 2,867,000 PdEq
Measured and Indicated Ounces, with an additional 1,059,000 PdEq Ounces
in the Inferred. Learn More.
Europe EVs now use 57% more lithium carbonate equivalent
Changing mix of EV sales is most noticeable in Europe where the average battery in new passenger EVs sold in September contained 15.8kg of LCE
Constitutes a 57% surge compared to last year, thanks in no small part to the popularity of the Tesla Model 3 on the continent
Electric car pioneer Tesla is already producing units on a trial basis at its giant Shanghai gigafactory despite only breaking ground this year, but thanks to changes to the Chinese EV subsidy program, demand for locally-made Teslas may fall short of expectations.
On Monday, China’s automobile manufacturing industry body said fewer
new energy vehicles, or NEVs as they are termed domestically, could be
sold this year than in 2018 (last year sales boomed by more than 60%).
Sales of NEVs – which apart from battery-powered vehicles also
include hybrids and fuel cell cars – fell by more than 45% in October
from the same month last year, adding to the woes of an industry coping
with 16 straight months of declining overall sales.
Changes to China’s EV incentive program favour hybrids so lithium loads may start to tend downwards in that country too
Adamas Intelligence tracks the battery capacity (and the metals used in them)
of electric vehicles sold around the world and the slowdown in the EV
market, where lithium-ion batteries dominate, has already showed up in
raw material deployment data.
In September 2019, the average new passenger EV including plug-in and
conventional hybrids sold globally contained 12.2 kilograms of lithium
carbonate equivalent (LCE), a modest increase of 4% over 2018, according
to the latest Adamas report.
The Toronto-based research company’s data shows China still
outstripped global growth in September with a 7% increase in LCE on a
per-EV basis, reaching a sales-weighted average of just shy of 20kg
thanks to the prevalence of full electric models in the country.
That’s in stark contrast to Japan, where hybrids represent more than
90% of EV sales and average batteries contain only 1.1kg of LCE. Changes
to China’s EV incentive program favour hybrids so lithium loads may
start to tend downwards in that country too.
The changing mix of EV sales is most noticeable in Europe where the
average battery in new passenger EVs sold in September contained 15.8kg
of LCE.
That constitutes a 57% surge compared to last year, thanks in no
small part to the popularity of the Tesla Model 3 on the continent.
Teslas have always had bigger batteries than competitor cars to help
with fast-charging and range.
In the US the trend is in the opposite direction – with passenger EVs
leaving showrooms containing on average 15.2kg of LCE, 12% less than in
September 2018.
Posted by AGORACOM-JC
at 12:59 PM on Thursday, November 14th, 2019
SPONSOR: New Age Metals Inc.
The company’s Lithium Division has already made significant
acquisitions in Canada and the USA. The company also owns one of North
America’s largest primary platinum group metals deposit in Sudbury,
Canada. Updated NI 43-101 Mineral Resource Estimate 2,867,000 PdEq
Measured and Indicated Ounces, with an additional 1,059,000 PdEq Ounces
in the Inferred. Learn More.
Sales Revenue of Palladium to Soar in the Near Future Owing to Growing Consumer Adoption
Global market for palladium is likely to experience
significant growth with declining demand for metals and increasing
demand for recycling metals, leading to palladium demand outstripping
the supply.
In addition, changing prospects of investments in palladium have also contributed to the growth of the market
Palladium
is a lustrous silvery-white rare metal used in a diverse range of
applications. The metal with other elements such as osmium, iridium,
ruthenium, rhodium, and platinum are referred to as Platinum Group
Metals (PGM). Palladium is majorly consumed in the automotive industry
as catalytic converters, manufacturing of electronics and jewelry, as
well as chemical and dental applications. Palladium is sourced from two
major sources, viz., mine production and recycling.
The global market for palladium is likely to experience significant
growth with declining demand for metals and increasing demand for
recycling metals, leading to palladium demand outstripping the supply.
In addition, changing prospects of investments in palladium have also
contributed to the growth of the market. Several new palladium
exchange-traded funds by companies such as Absa Capital in South
Africa are expected to create a significant boost for the palladium
market.
Growing demand for palladium in catalytic converters in the
automotive industry in vehicles exhausts are one of the major growth
factors driving the palladium market. Demand for the metal from other
sectors such as jewelry and industrial are also anticipated to
contribute to the growth of the market. However, rising prices of
palladium owing to supply issues in South Africa and declining state
stockpiles in Russia are expected to hamper the growth of the market.
North America was the largest consumer for palladium, followed by China
owing to the presence of the vast automotive industry in the region.
Future market growth is expected to be from Asia Pacific with the
growing industrial activities in emerging economies such as India. These
factors are expected to provide new opportunities for the growth of the
market.
Posted by AGORACOM-JC
at 3:54 PM on Tuesday, November 12th, 2019
SPONSOR: New Age Metals Inc.
The company’s Lithium Division has already made significant
acquisitions in Canada and the USA. The company also owns one of North
America’s largest primary platinum group metals deposit in Sudbury,
Canada. Updated NI 43-101 Mineral Resource Estimate 2,867,000 PdEq
Measured and Indicated Ounces, with an additional 1,059,000 PdEq Ounces
in the Inferred. Learn More.
Palladium Prices Soar to Record High
Global Precious Monthly Metals Index (MMI)Â jumped six points this month, rising for a November MMI reading of 113.
As noted here many times before, platinum had historically traded at a premium to palladium.
That relationship, however, flipped as of September 2017, and has remained flipped ever since.
The palladium-platinum spread widened this month, even as platinum made gains.
The spread rose to $850/mt this month, up from $763/mt last month.
Looking Ahead
Gold and silver enjoyed a strong run-up during the summer season, but what is ahead for the precious metals?
“Having risen into the summer, gold and
silver prices have plateaued in Q3 even as some ETFs have seen strong
inflows due to accommodative monetary policies, such as falling Fed
rates and safe haven buying in the face of geopolitical uncertainty,â€
MetalMiner’s Stuart Burns explained. “But jewelry demand is down,
central bank buying of gold is lower than the same time last year and a
strong dollar set up a number of headwinds that have seen prices unwind
as news comes out about a possible winding back of tariffs between the
US and China.â€
As for platinum, prices did not tick up as much as one might have expected given trends in the automotive industry.
“Likewise, platinum prices have failed to
make any headway in Q3 despite a strong showing from other PGMs, such as
palladium and rhodium, both of which continue to benefit from the
switch to petrol internal combustion engines among European carmakers,â€
Burns added.
“Gold, silver and palladium prices are expected to ease further in
the run up to the year-end while other PGMs will be swayed more by car
production and dollar strength. Much will depend on a successful outcome
to the encouraging progress on trade talks, which could see investors
take a more bullish attitude on risk to industrial metals and weaken
demand for safe-haven investment metals.â€
Actual Metal Prices and Trends
The U.S. silver ingot/bar price rose 5.0% month over month to $18.08/ounce as of Nov. 1.
U.S. platinum bars rose 6.3% to $930/ounce. U.S. palladium bars jumped 8.7% to $1,780/ounce.
Chinese gold bullion rose 1.7% to $48.79/gram. U.S. gold bullion increased 2.3% to $1,512.70/ounce.
Posted by AGORACOM-JC
at 11:49 AM on Wednesday, November 6th, 2019
SPONSOR: New Age Metals Inc.
The company’s Lithium Division has already made significant
acquisitions in Canada and the USA. The company also owns one of North
America’s largest primary platinum group metals deposit in Sudbury,
Canada. Updated NI 43-101 Mineral Resource Estimate 2,867,000 PdEq
Measured and Indicated Ounces, with an additional 1,059,000 PdEq Ounces
in the Inferred. Learn More.
Palladium soaring: the quiet precious metal
Traditionally, gold, silver and platinum have received all the attention.
But like a spurned sibling that everyone ignored, the palladium spot price has broken free and there’s been no looking back just yet.
In notes to our clients we’ve talked a couple of times about gold,
and touched on silver and platinum which are all members of the precious
metals family. The potential for gains in all three of the metals has
been sizeable in the last few months. There has been some notable
pullbacks and profit-taking of late, particularly in gold stocks,
however there is a member of the family we have yet to discuss in any
depth. Palladium.
Traditionally, gold, silver and platinum have received all the
attention. But like a spurned sibling that everyone ignored, the
palladium spot price has broken free and there’s been no looking back
just yet.
Palladium Price $US/ounce
Source: Macrotrends
Much lesser known than the other three major precious metals,
palladium has in a very short period of time become the most expensive,
overtaking gold. Similar to platinum, not much is known about the metal –
what it is used for, how it is mined, and more importantly, how or why
has it become so darn expensive?
The majority of palladium ends up in car exhaust systems where it
aids in converting toxic pollutants into less-harmful CO2 and water
vapour. To a lesser extent, it is also used in electronics, dentistry
and jewellery. The metal is mined primarily in Russia and South Africa,
and mostly extracted as a secondary product from mines focused on other
metals such as platinum or nickel. Who would have thought a by-product
could have surged to a value of over US$1,800/oz!
Simply put, supply hasn’t responded to growing demand. Usage is
increasing as governments, especially China, tighten regulations to
crack down on pollution from vehicles, forcing automakers to increase
the amount of precious metal they use. Globally, it also looks like
we’ve been buying fewer diesel cars (which mostly use platinum) and
instead sticking with petrol powered vehicles (which use palladium)
following news that some diesel car makers were cutting corners on
carbon emissions tests.
Furthermore, population growth has not eased, and the electric car
take-up has been slower than many predicted, perhaps due to pricing and
convenience. We are still relying on petrol power (particularly in the
emerging markets).
Source: Metals Focus
Palladium’s status as a by-product to platinum or nickel mining means
output tends to lag price gains. In fact, the amount of palladium
produced is projected to fall short of demand for an eighth straight
year in 2019. That’s helped drive price to all-time high. While some
obscure metals are still more valuable, such as rhodium, palladium has
ballooned and has outpaced gold for most of this year.
Gaining any direct exposure to an investment in palladium is a
difficult proposition and would be most easily achieved via ETFs e.g.
the Aberdeen Standard Physical Palladium Shares ETF (PALL).
Posted by AGORACOM-JC
at 9:00 AM on Wednesday, October 30th, 2019
A drill permit has been issued by the Manitoba government for a drill program on the company’s Lithium Two Project.
NAM has 100% ownership of eight pegmatite hosted Lithium and Rare Element Projects in the Winnipeg River Pegmatite Field, located in southeast (SE) Manitoba.
Exploration in SE Manitoba is focused on Lithium-bearing pegmatites.
Archaeological Assessment in progress on Lithium One as part of the drill permit process.
The eight projects are strategically situated within the Winnipeg River Pegmatite Field, which hosts the world-class Tanco Pegmatite that has been mined for Tantalum, Cesium and Spodumene (one of the primary Lithium minerals) in varying capacities, since 1969.
NAM management is finalizing a plan for a 1,500-metre drill program on Lithium Two.
October 30th, 2019 – Rockport, Canada – New Age Metals Inc. (NAM) (TSX.V: NAM; OTCQB: NMTLF; FSE: P7J) New Age Metals is pleased to announce that a drill permit has been issued to the company’s wholly owned subsidiary, Lithium Canada Development by the Manitoba government for the company’s Lithium Two Project located in the Cat Lake area of southeast (SE) Manitoba.
The Winnipeg River Pegmatite Field
The
Winnipeg River-Cat Lake Pegmatite Field in SE Manitoba is host to
numerous pegmatite deposits and contains the world-class Tanco
Pegmatite. The Tanco pegmatite has been mined since 1969 in
varying capacities for spodumene (Li rich mineral), Tantalum and Cesium.
The pegmatite field contains at least 10 pegmatite groups and hosts
hundreds of pegmatite bodies. Many of the pegmatites are lithium
bearing.
The Tanco Mine, which was owned by the
Cabot Corporation, was recently sold to Sinomine Rare Metals Resources
Co. Ltd. (Sinomine) at a purchase price of $130 million ($US). Sinomine
is a joint stock public company based in China, principally engaged in
the provision of geological exploration, mining investment and base
metal chemical manufacturing. This transaction certainly adds new
interest in the region as to the potential of the pegmatite field and
lithium and/or rare element potential in the area. This sale should
advance the Lithium production potential of the area as Lithium Ore feed
may be required in the event that Sinomine commences lithium
production.
Lithium Two Project
The Lithium Two Project is located
approximately 20 kilometres north of the Tanco Mine and is an active
area for Lithium exploration. Several companies are active in the
immediate region, exploring for Lithium.
Surface exploration was carried out on the Lithium Two Project during the summer of 2018 (see News Release October 30th, 2018).
The exploration work was designed to examine the known surface
pegmatites to aid in the determination of drill targets. The field
program also focussed on more detailed structural geological mapping and
mapping of the westward extent of the Eagle Pegmatite. The Lithium Two
Project has several historically known Spodumene bearing pegmatites (see
Figure 2).
Click Image To View Full Size
Figure 1: Manitoba Lithium and Rare Element Projects 2019
The Eagle Pegmatite was drilled in 1947
with a historic (non 43-101 compliant) tonnage estimate of 544,460
tonnes with a grade of 1.4% Li2O to the 61-metre level. These historical
estimates do not use categories that conform to current CIM Definition
Standards on Mineral Resources and Mineral Reserves as outlined in
National Instrument 43-101, Standards of Disclosure for Mineral Projects
(“NI 43-101”) and have not been redefined to conform to current CIM
Definition Standards. A qualified person has not done sufficient work to
classify the historical estimates as current mineral resources and the
Company is not treating the historical estimates as current mineral
resources. Investors are cautioned that the historical estimates do not
mean or imply that economic deposits exist on the properties. The
Company has not undertaken any independent investigation of the
historical estimates or other information contained in this press
release nor has it independently analyzed the results of the previous
exploration work in order to verify the accuracy of the information. The
Company believes that these historical estimates and other information
contained in this news release are relevant to continuing exploration on
the properties as it identifies significant mineralization that will be
the target of future exploration and development.
The Eagle Pegmatite was historically reported to remain open to depth.
The FD5 Pegmatite, located east of the Eagle Pegmatite has never been
drilled. Historic assessment reports revealed a Spodumene bearing
pegmatite drilled in the late 1940’s, located approximately 500 metres
southeast of the Eagle Pegmatite but is not exposed on surface. No
assays were provided in the report at the time. This pegmatite, as well as the Eagle and FD5, will be tested during an upcoming recommended drill program.
Click Image To View Full Size
Figure 2: 2018 Lithium Assays at the Lithium Two Project, SE Manitoba
The Eagle Pegmatite has been mapped on surface for over 850 metres and has surface assays of 0.1 to 3.8% Li2O.
The FD5 pegmatite had surface assays from 0.1 to 3.3% Li2O. In
geological terms, the pegmatites encountered on the Lithium Two Project
are LCT Type (Lithium-Cesium-Tantalum) Pegmatites and are in the
Albite-Spodumene Subgroup. Spodumene is expressed in the pegmatites as
small green blades up to 3 centimetres in length. The Eagle Pegmatite is
a west-northwest to west-striking, vertically dipping, lenticular
pegmatite dyke intruded into mafic volcanics. The widths of the
pegmatite have been measured to be between 2 to 10 metres. The Eagle
Pegmatite system appears to be a swarm of closely spaced pegmatite
bodies.
Phase 1 Drill Program Planning in Progress
A drill program of 1,500 metres is planned
to test three spodumene bearing pegmatite targets. A drill permit has
recently been issued by the Manitoba government.
Lithium One Drill Program
Recently,
NAM engaged White Spruce Archaeology as part of its Exploration
Agreement with the Sagkeeng First Nation to conduct an archaeological
assessment on the proposed drill sites for Lithium One as part of the
drill permitting process. The assessment was completed in October
and the report is pending. A 1,500 metre drill program is planned to
test targets on the Silverleaf pegmatite ( News Release Sept 27, 1018) situated in the Lithium One project area.
NAM/AAZ Property Option Update
JV partner Azincourt Energy (AAZ) and NAM
are in discussions regarding AAZ’s compliance for its contractual
obligations as part of the option agreement with NAM. NAM and AAZ are in
continuing talks regarding a revision to the existing option agreement
or termination.
OPT-IN LIST
If you have not done so already, we encourage you to sign up on our website (www.newagemetals.com) to receive our updated news.
ABOUT NAM’S PGM DIVISION
NAM’s flagship project is its 100% owned River Valley PGM Project (NAM Website – River Valley Project)
in the Sudbury Mining District of Northern Ontario (100 km east of
Sudbury, Ontario). Recently the company announced the results of the
first PEA (see News Release – June 27th, 2019)
completed on the River Valley Project. The PEA has been developed by
various independent consultants – P&E Mining Consultants Inc.
(P&E) was responsible for the open pit mining, surface
infrastructure, tailings facility, and project economics; DRA Americas
Inc. (“DRA”) was responsible for all metallurgical test work and
processing aspects of the Project; and WSP Canada Inc. (“WSP”) was
responsible for the Mineral Resource Estimate. The
PEA is a preliminary report but it has demonstrated that there are
positive economics for a large-scale mining open pit operation, with 14
years of Palladium and Platinum production.
The
Genesis project is a PGM-Cu-Ni property located in the northeastern
Chugach Mountains, 75 paved road miles north of the all-season port city
of Valdez, Alaska. The project is within 3 km of the all-season
paved Richardson Highway and a high capacity electric power line. The
project is covered by 4,144 hectares of State of Alaska mining claims
owned 100% by New Age Metals. Past exploration has revealed the presence
of chromite-associated platinum and palladium mineralization and
stratabound Ni-Cu-PGM mineralization within magmatic layers of the
Tonsina Ultramafic Complex. Pyrrhotite, pentlandite, and chalcopyrite
occur in disseminations and net textured segregations associated with
platinum and palladium sulfides. There has been limited exploration over
the Genesis project and there has been no past exploration drilling on
the project. NAM management is actively seeking an option/joint-venture partner for this road accessible PGM and Multiple Element Project.
QUALIFIED PERSON
The contents contained herein that
relate to exploration results or geological aspects is based on
information compiled, reviewed or prepared by Carey Galeschuk, P. Geo., a
consulting geoscientist for New Age Metals. Mr. Galeschuk is the
Qualified Person as defined by National Instrument 43-101 and has
reviewed and approved the technical content of this news release.
On behalf of the Board of Directors
“Harry Barr”
Harry G. Barr
Chairman and CEO
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Note Regarding Forward
Looking Statements: This release contains forward-looking statements
that involve risks and uncertainties. These statements may differ
materially from actual future events or results and are based on current
expectations or beliefs. For this purpose, statements of historical
fact may be deemed to be forward-looking statements. In addition,
forward-looking statements include statements in which the Company uses
words such as “continue”, “efforts”, “expect”, “believe”, “anticipate”,
“confident”, “intend”, “strategy”, “plan”, “will”, “estimate”,
“project”, “goal”, “target”, “prospects”, “optimistic” or similar
expressions. These statements by their nature involve risks and
uncertainties, and actual results may differ materially depending on a
variety of important factors, including, among others, the Company’s
ability and continuation of efforts to timely and completely make
available adequate current public information, additional or different
regulatory and legal requirements and restrictions that may be imposed,
and other factors as may be discussed in the documents filed by the
Company on SEDAR (www.sedar.com), including the most recent reports that
identify important risk factors that could cause actual results to
differ from those contained in the forward-looking statements. The
Company does not undertake any obligation to review or confirm analysts’
expectations or estimates or to release publicly any revisions to any
forward-looking statements to reflect events or circumstances after the
date hereof or to reflect the occurrence of unanticipated events.
Investors should not place undue reliance on forward-looking statements.
