The TNR win-win formula of Gold + Copper + Lithium
No matter what you read or hear about lithium and its supply, within 3 years time (by 2022) the metal will have trouble meeting the battery megafactories surging demand. Copper will also be in high demand for electric vehicles and their charging infrastructure. Electric cars are coming sooner than what most people think, therefore this will put immense pressure on lithium supply as we will need as much as 5x more lithium by 2025, based on my model’s forecasts. And this is based on only 20% electric car share by end 2025, which given electric cars will start being cheaper than conventional cars by 2022, now makes my forecast quite conservative. JP Morgan is forecasting 30% to 35% market share by 2025.
TNR Gold Corp. (TSXV: TNR) is not just a gold company, they are also working to become a green energy metals royalty company, supplying battery materials for the megatrend in electric vehicles. TNR founded International Lithium Corp. (TSXV: ILC), a green energy metals company that was made public through the spin-out of TNR’s energy metals portfolio. ILC holds interests in lithium projects in Ireland, Canada, and Argentina.
TNR’s 3 projects include gold, copper and lithium.
Shotgun Gold (90%) – Alaska
The 90% owned Shotgun Gold Project is an advanced-stage exploration prospect in south western Alaska. It is a porphyry gold deposit with potential for a bulk mineable gold resource.
In 2013 a resource estimate was produced for the property with an Inferred Resource of 20,734,313 tonnes at 1.06 grams per tonne (“g/t”) gold for a total of 705,960 ounces gold (“Au”) using a 0.5 g/t Au cut-off grade. The estimate is based on 34 diamond drill holes totaling 4,932.3 meters. The mineral resource is located from surface to a depth of 150m, and appears to be open at depth, and along strike meaning there is exploration upside. The Company strategy is to attract a joint venture partnership and is actively introducing the project to interested parties.
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Los Azules Copper Project (0.36% NSR royalty) – Argentina
100% owned by McEwen Mining, TNR holds a 0.36% net smelter return (NSR) royalty on the Project. The Los Azules Preliminary Economic Assessment (PEA) uses commodity price assumptions of $3.00/lb copper, $1,300/oz gold, and $17/oz silver, resulting in an un-discounted net smelter return over the life of the mining project of $35.2 billion, and $10.6 billion using an 8% discount rate. This means TNR’s 0.36% NSR royalty equates to ~$38m life of mine value after applying the 8% discount rate, based on the PEA’s assumptions.
Mariana Lithium Project (1.8% NSR royalty) – Argentina
TNR retains a 1.8% NSR royalty on the Mariana Lithium property that is currently being advanced in a joint venture between International Lithium Corp. and Ganfeng Lithium International Co. Ltd. Ganfeng is the world’s second largest lithium producer and China’s largest lithium producer, so the project is very likely to make it to production one day.
Kirill Klip, CEO and President of TNR, stated in an interview with Investorintel: “I am really in this game because I believe that all cars will be electric much sooner that a lot of people are anticipating. It means that we will have to produce, moving from today’s level of just 217,000 tons of lithium carbonate as a market total in sales, to 1 million tons annually.”
TNR are focusing on the new energy metals as they believe they are at the very beginning of a megatrend that will have to produce a total 12 million tons of lithium by 2030, to have 200 million electric cars on the road worldwide The total global fleet is forecast to reach 2 billion vehicles by 2030, so 200 million electric cars on the road by 2030 is very possible but will need a large number of new EV metal miners in production.
TNR offers investors the safety of gold, and the growth potential of copper and lithium at a lower risk using royalties. The EV revolution is now unstoppable and embraced by all car companies, even Volkswagen are now saying EVs will go mainstream in 2022. If you want to be part of the new green future with some safety of gold then investors should consider TNR Gold Corp.
Matthew Bohlsen is a Senior Editor for InvestorIntel.com. With a Graduate Diploma in Applied Finance and Investment (similar to CFA), and a Graduate Diploma in ... <Read more about Matthew Bohlsen>