Which way? Metals

Discussion in 'Commodity Futures' started by themickey, Dec 10, 2020.

  1. easymon1

    easymon1

  2. themickey

    themickey

    Mining robot stranded on Pacific Ocean floor
    Helen Reid Apr 29, 2021 https://www.afr.com/companies/mining/mining-robot-stranded-on-pacific-ocean-floor-20210428-p57naf

    Brussels | A seabed mining robot being tested on the Pacific Ocean floor at a depth of more than 4 km has become detached, the Belgian company running the experimental trial said on Wednesday.

    Global Sea Mineral Resources (GSR), the deep-sea exploratory division of dredging company DEME Group, has been trialling Patania II, a 25-tonne mining robot prototype, in its concession in the Clarion Clipperton Zone since April 20.

    The machine is meant to collect the potato-sized nodules rich in cobalt and other battery metals that pepper the seabed in this area, and was connected to GSR’s ship with a 5km cable.

    [​IMG]
    The Patania II.

    “On its final dive in the GSR area, a lifting point separated and Patania II now stands on the seafloor,” a GSR spokesman said in an emailed statement.

    “An operation to reconnect the lifting point begins this evening and we will provide an update in due course.”

    While several companies and countries have seabed exploration contracts, regulations governing deep-sea mining have not yet been finalised by the International Seabed Authority, a UN body.

    Critics, including environmentalist David Attenborough, say seabed mining is untested and has a largely unknown environmental impact. Google, BMW, AB Volvo, and Samsung SDI have backed a call for a moratorium on deep-sea mining.

    GSR has said it will only apply for a mining contract if the science shows that deep seabed minerals have advantages, from an environmental and social perspective, over relying solely on land mining.

    Reuters
     
    #92     Apr 28, 2021
    vanzandt likes this.
  3. themickey

    themickey

    I prefer silver over gold.
    Saying that, you are aware silver is twice as volatile figuratively speaking?
    Gold imo has too much emotion attached to it, ie it is too expensive in the real world for using as an electrical conductor or for corrosion applications.
    Jewellry, gifts and hoarding seem its greatest appeal.

    Back to silver topic, I like silver over gold because silver is an industrial/electrical/medical commodity with real world use.
    Silver is mostly produced as a by-product from lead - zinc mining.
    Producing countries in order of weight: Mexico, Peru, China, Australia, Russia, Poland, Chile...

    Some Listed Silver Companies:

    upload_2021-5-4_4-47-35.png

    On the ASX: (many of these below are explorers, not producers)

    ETPMAG which is an ETF. (I hold)
    ASX:SVL Silver Mines Limited (I hold)
    ASX:G1A Galena Mining Ltd
    ASX PEX Peel Mining Ltd
    ASX:IVR Investigator Resources Ltd
    ASX:RVR Red River Resources Limited
    ASX:HRZ Horizon Minerals Ltd
    ASX:TMZ Thomson Resources Ltd
    ASX:MKR Manuka Resources Ltd (I hold)
    ASX:ARD Argent Minerals Limited
    ASX:MTH Mithril Resources Limited
    ASX:RDM Red Metal Limited
    ASX:SRN Surefire Resources NL
    ASX:SCI Silver City Minerals Ltd
    ASX:SAU Southern Gold Limited
    ASX:CBE Cobre Ltd
    ASX:S32 South32 Ltd
    ASX:AMI Aurelia Metals Ltd
    ASX:NCZ New Century Resources Ltd
    ASX:AGD Austral Gold Limited
    ASX:E2M E2 Metals Ltd
    ASX:JDR Jadar Resources Ltd
    ASX:CRS Caprice Resources Ltd
    ASX:SI6 Si6 Metals Ltd
    ASX:4CE Force Commodities Ltd
    ASX:ADT Adriatic Metals PLC
    ASX:AYM Australia United Mining Ltd

    .....There may be others....
     
    Last edited: May 3, 2021
    #93     May 3, 2021
  4. Nine_Ender

    Nine_Ender

    The problem with Silver companies is they are in general less profitable then gold miners ( so far ) and they are extremely volatile. When they sold off ( twice ) it was massive drops far more then the Silver price justified. However, if we do attack $30, most will have incredible torque because of how badly they sold off. If any of them have good earnings, that might help as well.
     
    #94     May 3, 2021
  5. themickey

    themickey

    download-2.png
    Yes, $26 is a level it struggles with atm, then $30 will be the next hurdle.
    download-4.png
    $50 appears to be a long long way to go.... like dreamland level, but it's been there before.
     
    #95     May 3, 2021
  6. themickey

    themickey

    Resource shipping costs soar to record high
    Timothy Moore Online editor May 5, 2021
    https://www.afr.com/markets/commodities/resource-shipping-costs-soar-to-record-high-20210505-p57oxv

    Shipping costs, as measured by Platts Cape T4 index, which reflects hire costs for capesize bulkers commonly used for transporting iron ore, crossed the key $US40,000 a day mark, extending a more than two-month surge.

    That’s providing an at least temporary competitive advantage to Australia’s iron ore miners over Brazilian rival Vale, given the distance from each market to ports in China.

    [​IMG]
    Liberum said the rapid pickup in freight rates was providing an advantage to Australia’s Pilbara producers. Bloomberg

    S&P Global Platts’ Pradeep Rajan said the index’s advance was “driven largely by more robust iron ore demand and China’s appetite for the primary steel-making raw material showing no let up”.

    The index reached $US40,994 a day on Tuesday. It was at $US5711 a day on February 11.

    The spot price of iron ore was flat at $US188.85 a tonne, according to pricing by Fastmarkets MB. Chinese futures markets and many businesses have been closed for several days for Labour Day holidays.

    Mr Rajan said capesize market support is also coming from strong demand for other raw commodities such as coal and bauxite and the more general restoring of commodity supply chains amidst government stimulus monies to prop up economies and COVID-19 related tonnage supply dislocations.

    The Platts Cape T4 Index, which was launched on October 1, 2019, briefly topped $US30,000 a day for the first time in early July 2020 and again in early October 2020.

    In a note on Tuesday, Liberum Capital said given the rise in steel prices globally, the strength in demand comes as no surprise, but inventories, particularly in iron ore appear to have normalised.

    Liberum’s restocking indicator continues to denote a buy signal, though the firm said it expects a pullback in export demand this coming month as rebates are pulled.

    Chinese export rebates of 13 per cent on hot rolled coil, wire rod and rebar will no longer apply from May, Liberum noted. “Iron ore grade and quality premiums are still running hot as steel mills drive for productivity gains whilst profitability is so abnormally high.”

    Liberum said the rapid pickup in freight rates was providing an advantage to Australia’s Pilbara producers.
     
    #96     May 4, 2021
  7. themickey

    themickey

    Bacanora Lithium receives takeover approach from major shareholder
    Ganfeng already has a 29% stake in Bacanora and also a 50% stake in Sonora, the junior’s lithium deposit in Mexico.

    [​IMG]
    Ganfeng has been steadily increasing its control over Bacanora and Sonora
    Bacanora Lithium PLC’s (LON:BCN) partner and major shareholder Ganfeng has made an offer to buy out the mining group.

    The Chinese giant says it will offer 67.5p per share, a 45% premium to the close yesterday and valuing AIM-listed Bacanora at £259mln, including shares to be issued through a recent placing.

    Ganfeng already has a 29% stake in Bacanora and also a 50% stake in Sonora, the junior miner’s lithium deposit in Mexico.

    Independent directors at Bacanora said the offer is attractive and that they would expect to recommend once it becomes a formal proposal, something that requires approval from the Chinese authorities.

    Ganfeng and Bacanora have a joint venture at Sonora that is now working on the construction of a mine that will produce 35,000 tonnes a year of battery-grade lithium when fully commissioned.
     
    #97     May 6, 2021
  8. themickey

    themickey

    upload_2021-5-7_7-21-18.png
    5 Year chart.

    As per as I expected when viewing the chart, the stock has been an underperformer.
    My experience and opinion, when Chinese have a large stake in a listed company, they'll hammer price down for an eventual takeover.

    I avoid stocks where I see Chinese involvement for this reason.
     
    #98     May 6, 2021
  9. themickey

    themickey

    upload_2021-5-7_7-27-13.png
    Here's a comparison of BCN.LN versus Lithium ETF (green). Minus 40% versus +168%, that's 208% difference.
     
    #99     May 6, 2021
  10. VicBee

    VicBee