David Fuller and Eoin Treacy's Comment of the Day
Category - General

    Year-end Review and Outlook

    Thanks to a subscriber for this report from M Partners focusing on the Canadian mining sector. Here is a section:

    World's No.1 Miner Is Building an EV Hub It Doesn't Want to Keep

    This article by David Stringer Bloomberg may be of interest to subscribers. Here is a section:

    “The investment in Nickel West makes sense regardless,” said James Eginton, an analyst at Sydney-based Tribeca Investments Partners Pty, a BHP shareholder that’s urged the producer to extend its suite of commodities to tap rising battery demand. Efforts to refocus the business will either boost the value of a sale, or lift the unit’s cashflow if the assets are retained, he said.

    BHP began building a nickel sulphate plant at Nickel West in recent weeks and is considering a slate of further expansions to make it the largest source of the material and a hub for other battery ingredients. It’s aiming to sell 90 percent of output into the battery supply chain by about 2021, from less than a third at the end of last year. Global nickel demand could more than double by 2050, fueled in part by rising electric vehicle sales, Bloomberg Intelligence said in a June report.

    The world’s biggest mining companies are ratcheting up their response to the booming demand for battery raw materials.

    Rio Tinto Group is developing a lithium project in Serbia, while Glencore Plc plans to double production of cobalt and is effectively “a one-stop-shop” for investors seeking exposure to EV gains, Sanford C. Bernstein Ltd. said in a note this month.

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    Email of the day on socially driven inflation

    Email of the day on dividend yields for the Autonomies

    Musings from the Oil Patch January 17th 2018

    Thanks to a subscriber for this edition of Allen Brooks’ ever interesting report for PPHB. Here is a section:

    Email of the day on exaggerated risks

    A very happy new year to you and David. I just watched this TED Talk from October and found it important enough to share. I've passed it on to friends and family because I believe the message is even more important today. As most equity markets seem to be accelerating to the upside, don't you think the downside risks become more pronounced? Would like your thoughts on the talk -  All the best!

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    A deep-dive into demographics; healthy demand ahead

    Thanks to a subscriber for this report from Deutsche Bank which may be of interest. Here is a section:

    $900M Australian rare earths mine given state approval

    This article by Andrew Topf for Mining.com may be of interest to subscribers. Here is a section:

    The company is also looking at a joint venture with OCI Company Ltd. to build a separation plant in South Korea.

    According to Arafura the Nolans Bore rare earths-phosphate deposit is "one of the largest and most intensively explored deposits of its kind in the world." The deposit contains a JORC-compliant mineral resource of 56 million tonnes at an average grade of 2.6% TREO that extends to 215 metres below the surface. Two-thirds of the contained rare earths are in the measured and indicated category.

    Arafura estimates the project would create an investment of about $900 million in Central Australia, as well as 250 to 300 permanent jobs.

    An environmental approval from the Australian government and a final approval from the state government still need to be obtained.

    The mine could supply up to 10% of world demand for neodymium and praseodymium, used in the manufacture of magnets for wind turbines, and electric vehicles.

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