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Critical Metals Russell Fryer on Copper and Cobalt Plans for Production in 2024

In a revealing interview at PDAC 2024, InvestorNews host Tracy Weslosky engaged with Russell Fryer, CEO and Executive Director of Critical Metals PLC (LSE: CRTM), shedding light on the company’s strategic operations in the Democratic Republic of Congo (DRC) and its forward-looking goals. Fryer discussed the evolving political climate in the DRC, highlighting the peaceful presidential election in December 2023 as evidence of the country’s commitment to democracy and the rule of law, which is crucial for investors considering Congo-based companies. He underscored the significance of the DRC in the global supply of cobalt, essential for green energy, and the high-grade copper reserves, vital as other regions face diminishing supplies.

Critical Metals PLC is set to resume production and generate profits in 2024, distinguishing itself with a poly-metallic deposit that yields copper and potentially cobalt. The company’s proactive measures, including road rehabilitation and an off-take agreement with OM Metal & Resources, are poised to enable sales in the first half of the year. Fryer also revealed plans for further drilling and the development of a JORC report, enhancing shareholder value.

The company has made strategic acquisitions, including a controlling stake in Madini Occidental Limited, which holds an indirect 70% interest in the Molulu copper/cobalt project. This acquisition aligns with Critical Metals PLC’s strategy to target projects with low entry costs and near-term cash flow potential. The company’s commitment to operational efficiency and infrastructure upgrades, such as road improvements to facilitate ore delivery, alongside its notable collaboration with OM Metals, underscores its strategy for sustainable growth.

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About Critical Metals PLC

Critical Metals PLC has acquired a controlling 100% stake in Madini Occidental Limited, which holds an indirect 70% interest in the Molulu copper/cobalt project, a producing asset in the Katangan Copperbelt in the Democratic Republic of Congo.

The Company will continue to identify future assets that are in line with its stated acquisition objective of low CAPEX and OPEX brown-field projects with near-term production and cash-flow, whilst concentrating on minerals that have strategic importance to future economic growth thereby generating significant value for shareholders.

To learn more about Critical Metals PLC, click here

Disclaimer: Critical Metals PLC is an advertorial member of InvestorNews Inc.

This interview, which was produced by InvestorNews Inc., does not contain, nor does it purport to contain, a summary of all material information concerning FendX Technologies Inc. (the “Company”), including important disclosure and risk factors associated with the Company, its business and an investment in its securities. InvestorNews offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This interview and any transcriptions or reproductions thereof (collectively, this “presentation”) does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to subscribe for or purchase any securities in the Company. The information in this presentation is provided for informational purposes only and may be subject to updating, completion or revision, and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any information herein. This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. This presentation should not be considered as the giving of investment advice by the Company or any of its directors, officers, agents, employees or advisors. Each person to whom this presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. Prospective investors are urged to review the Company’s profile on www.sedarplus.ca and to carry out independent investigations in order to determine their interest in investing in the Company.

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Australia’s Precarious Position: Navigating a Critical Minerals Market Meltdown

Australia, often celebrated as the world’s quarry, finds itself at a critical juncture as the prices of iron ore, nickel, and lithium, three of its most significant exports, have plummeted. This decline has not only exposed the inherent vulnerabilities of relying heavily on these commodities but has also highlighted the country’s dependence on China, its largest buyer. This situation is further compounded by the realization that the wider global implications of such a downturn are largely overlooked by many in the field.

Jack Lifton, the co-founder of the Critical Minerals Institute (CMI), points out that the economic feasibility of mining and refining operations is predicated on the massive demand from major players. The recent challenges faced by Lynas Rare Earths Ltd.’s (ASX: LYC) Kalgoorlie ore processing plant exemplify the precarious nature of these operations. The plant, initially constructed to comply with Malaysian regulations against importing radioactive materials, now struggles with the fallout from BHP Group’s (ASX: BHP | NYSE: BHP) decision to shut down local nickel operations, a key source of sulphuric acid, due to dwindling demand.

The repercussions of these developments are far-reaching. The collapse of the nickel industry, for instance, has revealed a manipulation of market prices reminiscent of supermarket-style scandals, but on a much grander scale. This, coupled with China’s strategic dominance over the global supply chain for rare earth elements and other critical minerals, poses a significant threat not just to Australia but to the global balance of power in the minerals market.

China’s strategy has been multifaceted, involving not only the subsidization of production costs at every step but also a willingness to absorb the environmental costs associated with such operations. This approach has allowed China to assert near-monopolistic control over the processing of about 80% of the world’s rare earths, and critical components like lithium, gallium, and germanium. The implications of this dominance are profound, affecting everything from the global race to combat climate change to the strategic military balance between major world powers.

Australia’s response to this challenge has been twofold. On one hand, it has attempted to leverage its rich deposits of critical minerals by offering subsidies to mining and processing operations in a bid to reduce dependence on Chinese processing facilities. On the other hand, the Australian government has had to contend with the immediate economic fallout from the collapse of metal prices, including providing emergency corporate aid and grappling with the loss of thousands of jobs as companies reassess the viability of their operations.

The situation is further complicated by China’s apparent readiness to use its economic power to coerce or punish countries that challenge its interests, as seen in the imposition of trade restrictions and embargoes on Australian exports following diplomatic tensions.

As Australia navigates this precarious situation, several paths forward emerge. One involves underwriting the construction of national processing facilities to add value to its mineral exports, potentially offering a cleaner alternative to Chinese-processed materials. This approach, however, would require a significant shift from recent trends towards privatization and might necessitate substantial investment to make Australia a competitive player in the global market for processed minerals.

Ultimately, Australia’s challenge is not just about responding to immediate economic pressures but about rethinking its strategic position in a rapidly changing global market. The country’s ability to adapt to these changes, diversify its economic base, and negotiate the complex interplay of global trade and politics will determine its future role on the world stage.

To stay up to date with the Critical Minerals Market, click here to join the CMI. A complimentary resource library that tracks the critical mineral lists from the USA to Australia to the UK may be accessed here.




Energy Fuels announces an MOU for a $122M investment in Astron that will supply a “new U.S.-based supply chain for decades”

For those following the critical metals space, there was some key U.S. news on December 1, 2023. The U.S. government announced their proposed policy for Foreign Entities of Concern (“FEOC”). The key part of the proposal effectively stated that starting from 2025 an eligible clean vehicle may not contain any critical minerals that were extracted, processed, or recycled by an FEOC. FEOCs were named to be China, Russia, North Korea, and Iran.

This means OEMs selling in the U.S. auto market are now in a mad scramble to source processed critical minerals from non-FEOC sources before 2025, otherwise, their customers can miss out on the US$7,500 clean vehicle subsidy (half of which is impacted by material sourcing). One of the hardest to source will be the magnet rare earths used in the permanent magnet motor of most electric vehicles and many wind turbines. This is because China dominates the rare earths industry.

Energy Fuels is making major moves to build a new rare earths supply chain in the USA

Energy Fuels Inc. (NYSE American: UUUU | TSX: EFR) is a leading U.S.-based critical minerals producer. In fact, they are the ‘leading’ U.S. producer of uranium, vanadium, and rare earth elements. Energy Fuels White Mesa Mill is “the only existing facility in North America with the licenses and capabilities to process monazite and produce advanced rare earth element products.”

2023 has been a very prosperous year for Energy Fuels with rare earth concentrate production and a booming uranium price helping their large uranium business.

Energy Fuels plan is to grow their rare earths concentrate business to also include rare earths separation to produce rare earth oxides. Phase 1 plans to have a capacity of 800 – 1,000 MT of neodymium-praseodymium (NdPr) oxide per year by Q1 2024 and Phase 2 a capacity of 1,500 – 3,000+ MT NdPr oxide per year by 2026/27. The Phase 3 plan is to produce heavy separated rare earths including dysprosium (Dy) and terbium (Tb) by 2027/28.

Energy Fuels is one of the leaders in the race to build up a U.S. rare earths supply chain independent of FEOC such as China

Source: Energy Fuels company presentation

To achieve their plan, Energy Fuels needs sufficient monazite ore as feed, hence their recent acquisitions. In February 2023, Energy Fuels acquired the Bahia heavy mineral sand (“HMS”) Project in Brazil that contains significant quantities of monazite (rare earths containing ore). But wait there’s more!

Energy Fuels announces a new rare earths sourcing MOU with Australian company Astron

As announced on December 27 Energy Fuels entered into an MOU to secure a near-term, large-scale Australian source of rare earth minerals. The announcement says this will supply a “new U.S.-based supply chain for decades” and that “most licenses and permits are in place (or at an advanced stage of completion)”. Energy Fuels proposed investment is ~A$180 million (~US$122 million) for a 49% interest in the new Joint Venture.

The MOU is with Astron Corporation Limited (ASX: ATR) (“Astron“) to jointly develop the Donald Rare Earth and Mineral Sands Project in Victoria, Australia. The announcement states:

“The Donald Project is a world-class, world scale, ‘shovel-ready’ critical mineral deposit that Energy Fuels believes would provide it with another near-term, low-cost, and large-scale source of monazite sand in an REE concentrate (“REEC“) that would be transported to the Company’s White Mesa Mill in Utah, USA (the “Mill“) for processing into REE oxides and other advanced REE materials and recovery of the contained uranium…The Donald Project is expected to provide Energy Fuels with 7,000 to 14,000 metric tons (“tonnes“) of REEC per year, containing 4,000 to 8,200 tonnes of total REE oxides (“TREO“), with commissioning and ramp-up expected to begin in 2026. Most of Energy Fuels’ proposed investment is expected to be disbursed in 2025.”

Note: REEC is rare earth elements concentrate.

Energy Fuel’s masterplan for rare earths products and supply sources

Source: Energy Fuels company presentation

Closing remarks

Energy Fuels is steadily putting together all the pieces of a jigsaw puzzle in order to create a new western supply chain of rare earths products, that will be needed to support the U.S. demand for their own electric vehicle and clean energy industry, independent of China.

The Bahia Project announced in early 2023 will provide near-term rare earth concentrate supply from Brazil, and all going to plan, the Donald Project will also provide a supply from 2026.

Meanwhile, Energy Fuels is currently doing very well from their U.S-based uranium production business, boosted by surging uranium prices in 2023 (now at US$91/lb at the time of writing).

Energy Fuels trades on a market cap of US$1.16 billion with the stock price up ~25% in the past year.




Navigating the Critical Mineral Investment Trail in the Congo: Experts Weigh in on the CMI Masterclass

U.S. apprehensions about China’s advances in the Congo underline its pivotal role in the critical minerals’ domain.

The Democratic Republic of Congo (DRC) has long been recognized for its vast mineral wealth. But with this abundance comes complexity. Recently, the Critical Minerals Institute (CMI) Masterclass series provided a deep dive into this rich, multifaceted topic, led by two individuals with considerable firsthand experience in the DRC: Melissa ‘Mel’ Sanderson, a Director for American Rare Earths Limited (ASX: ARR | OTCQB: ARRNF), and Russell Fryer, CEO and Chairman of Critical Metals PLC (LSE: CRTM). Both Mel and Russell are members for the CMI Board, committed to education and B2B resources in the critical minerals sector.

Hosted by Tracy Weslosky, the Founder and Managing Director for the CMI, the discussion spanned topics from the geopolitical to the deeply personal, offering invaluable insights to potential investors and businesses eyeing the DRC.

Entering the Congo

Both Sanderson and Fryer have unique entry points into the DRC. Sanderson’s journey began with the U.S. diplomatic service in 2003, right after “Africa’s World War” ended. She joined Freeport-McMoRan Inc. (NYSE: FCX) in building one of the world’s largest copper-cobalt mines. Her combined diplomatic and business experiences make her insights particularly relevant.

Fryer, an engineer by profession, managed the metals and mining book for a hedge fund, leading him to be deeply involved with the DRC’s mining sector. He emphasized the importance of a strong on-ground presence to effectively operate in the region.

Navigating the Investment Landscape

When it comes to investing in the DRC, both experts stressed the significance of building robust government relations. Fryer emphasized the importance of forging connections at all levels of government. His hands-on approach, combined with regular liaison with international ambassadors, has served him well in navigating the intricacies of the region.

Sanderson highlighted the role of local culture and the importance of understanding key regulations like the Foreign Corrupt Practices Act. This understanding helps businesses operate ethically while also respecting local customs and norms.

The Unique Challenges of Doing Business in the Congo

The Congo presents a unique set of challenges for investors and businesses alike, the experts outlined how the terrain is fraught with hurdles from unreliable power, water quality, to workforce and transportation issues. Moreover, certain regions, such as Bondo, necessitate heightened security measures. Fryer underlines the urgency of addressing local community needs and creating a quick revenue stream for both operational success and local welfare.

Geopolitical Implications and the Congo

Weslosky delved into geopolitical investments in the DRC. With growing interest from the Middle East, China, and the U.S., the DRC is at the heart of intricate international dynamics. Fryer shared insights into the increasing influence of countries like Saudi Arabia, UAE, and Qatar in the DRC. Addressing these geopolitical complexities requires the Congolese government to skillfully navigate these multifaceted relationships.

Empowering the Locals

On the topic of developing local talent, both experts shared their belief in the potential of the Congolese people. Sanderson spoke about initiatives to bring talented Congolese to the US for training. Fryer highlighted the need for trust, understanding the culture, and providing real opportunities.

Closing Remarks

The Masterclass shed light on the myriad of opportunities and challenges the DRC presents. As businesses and investors continue to look towards this region, the insights shared by Sanderson and Fryer provide a valuable roadmap. As Weslosky rightly put it, it’s essential for those in the resource and investment sectors to familiarize themselves with the regions they invest in. The discussion underscored the importance of understanding, respect, and hands-on involvement when it comes to successful investment in the DRC.

For those interested in exploring further, the Critical Minerals Institute ot the CMI continues to offer invaluable resources and discussions in the critical minerals sector.

CMI Masterclass Key Points:

  1. Congo’s Importance:

    • The U.S. government is concerned about China’s potential acquisitions in the Congo.
    • Highlights the region’s significance in the critical minerals sector.

  2. Investment Advice:

    • Foster strong relationships at all levels of the Congolese government.
    • Understand and respect the local culture and language.
    • Comply with international regulations, especially the Foreign Corrupt Practices Act (FCPA).

  3. Geopolitical Investments:

    • Growing interest from Middle Eastern countries (e.g., Saudi Arabia, UAE, and Qatar) in the Congo.
    • The U.S. is perceived to hold significant influence in the region.
    • The Congolese government needs to navigate geopolitical complexities wisely.

  4. Business Environment in Congo:

    • Challenges include inconsistent power outside the Katanga province, water quality, transportation, and security.
    • Companies should anticipate delays and budget for higher costs due to unforeseen challenges.
    • Engage with local communities and prioritize security.

  5. Building Relationships in the DRC:

    • Collaborate with educational institutions, notably the University of Lum Bashi.
    • Embassies can play a role in introducing businesses to relevant government officials.

  6. African Free Continental Trade Agreement:

    • Provides numerous advantages, but may not directly influence political stability in Congo.
    • There’s a need to address power consistency, infrastructure, and local beneficiation of minerals on the continent.

  7. Empowering Local Talent:

    • Emphasized importance of training and acknowledging Congolese talent.
    • Foster local leadership for successful integration with foreign businesses.

For more information on the Critical Minerals Institute or becoming a CMI Member, click here




Iluka Resources is building Australia’s first fully integrated rare earths refinery

Iluka Resources Limited (ASX: ILU) (“Iluka”) is an Australian critical metals producer, specializing in mineral sand mining and processing. Iluka is the world’s largest producer of zircon, a major producer of high grade titanium feedstocks rutile and synthetic rutile, and is set to become a significant global supplier of refined rare earths from 2025.

Iluka’s core business is the mining and processing of mineral sands to produce zircon and titanium feedstocks rutile and synthetic rutile

Source: Iluka Resources company presentation

The Eneabba rare earth oxide planned refinery

Iluka plans to build one of only a few rare earth oxide refineries globally, at Eneabba in Western Australia. This is occurring in a strategic partnership with the Australian Government which has provided Iluka with a A$1.25 billion non-recourse loan to construct the refinery.

Commissioning of the Eneabba Refinery is scheduled for 2025. The Eneabba Refinery will produce separated neodymium, praseodymium, dysprosium and terbium.

The Eneabba Refinery will be fed by Iluka’s internal feedstocks including their unique rare earths stockpile at Eneabba, Wimmera development in Western Victoria and Balranald development in New South Wales, Australia.

A summary of Iluka’s Australian operations including the planned Eneabba Refinery which will produce separated neodymium, praseodymium, dysprosium and terbium

Source: Iluka Resources company presentation

Eneabba Refinery Project update

Iluka already has a stockpile of ~1 million tonnes of high grade rare earth concentrate, readily available at surface at Eneabba.

The Eneabba Refinery feedstock operations continue to progress. Wimmera has completed a PFS (DFS underway), and Balranald has completed a DFS and taken a final investment decision.

The Eneabba Refinery has been approved and bulk earthworks continue with site preparation.

Once finished and ramped the Eneabba Refinery will produce separated rare earth oxides essential for global electrification, including ~4ktpa Nd+Pr and up to 0.75ktpa Dy+Tb. Once production is ramped the rare earth oxides are expected to potentially produce revenues slightly in excess of Iluka’s current mineral sands products revenues (see chart on page 19).

Schematic of the Eneabba Refinery once complete in 2025

Source: Iluka Resources company presentation

The Eneabba Refinery will support junior rare earths miners as they can supply feedstock for the refinery

Iluka’s Managing Director & CEO, Tom O’Leary, states:

In strategic partnership with the Australian Government, Iluka is catalysing the development of Australia’s rare earths industry by facilitating other emerging Australian mining companies into production, with Iluka as their customer, and with value addition taking place domestically. In October last year, Iluka concluded an agreement with Northern Minerals – just such an emerging rare earths company – for the future supply of concentrate from its planned rare earths mine at Browns Range in the Eastern Kimberley…….

Closing remarks

Iluka Resources is already a giant in the business of mineral sands mining and processing to produce zircon and titanium feedstocks rutile and synthetic rutile.

Even more exciting is their plans to build a globally significant rare earths integrated refinery at Eneabba in Western Australia. Once completed in 2025, the refinery will ramp up to produce key light and heavy rare earth oxides and provide the world with an alternative to the current Chinese dominated supply chain.

Well done Iluka!

Iluka Resources has net cash of A$431 million (as at 31 March 2023), trades on a PE of 9.4, and has a market cap of A$4.917 billion.




Does Nationalization Loom for Critical Minerals

The world is finally starting to pay attention to the importance of ‘critical minerals’. Different countries have different lists of what those minerals are, but every list includes lithium, rare earths (“REE”), cobalt, copper, nickel, and zinc. (One region mystifyingly includes rubber on its list, but I digress.)

The problem is, most people are missing the point of why these minerals are critical and what that means for private ownership. So let’s go back to basics.

The Importance of Critical Minerals

One of the definitions of the word critical is “important or vital; irreplaceable”. When it comes to the Green Revolution, that definition is spot on. Critical minerals are irreplaceable in the march away from fossil fuels. Without those minerals, we will continue to use fossil fuels until a better technology comes along, decades from now, during which interlude we will choke out Mother Earth.

But saying ‘we need those minerals to make rechargeable batteries and permanent magnets’ is rather simplistic. That’s not really the point. A recent article in The Economist gives better arguments about why the Green Revolution is good for countries, apart from saving the planet.

The article titled “The green revolution will stall without Latin America’s lithium” argues that nationalizing critical mineral deposits and mines (and by extension, minerals like silver that aren’t on critical mineral lists) offers benefits like a broadened tax base and more jobs within the country. Nationalization, it argues, can be good for the economy.

That argument rings hollow with me. Jobs can be created and taxes can be paid without the national government owning the assets. Mining rights can be exercised by foreign companies under a regime without the government getting into the mining business, plus does any government operate any business well? The Economist has missed the point.

Companies are Protecting Vertical Supply Chains for Critical Minerals

Before we get to the point, let’s revisit the February 2023 announcement of a General Motors Company (NYSE: GM) investment into Lithium Americas Corp. (TSX: LAC), which holds among other assets Thacker Pass. Thacker Pass is the largest known potential source of lithium in the United States of America. We’ve seen other investments from auto manufacturers into lithium companies.

Do you think they’re doing this as a long-term investment to be monetized at some point in the future? When one of the shadow Chinese investment companies invests in a critical minerals company, do you think it’s for the portfolio?

No, these are not portfolio investments. These are functional investments into irreplaceable assets. Everyone is worried about the vertical supply chain for those critical minerals for their own uses.

GM is looking to ensure it has access to lithium for its own purposes. GM isn’t going to share the lithium eventually produced at Thacker Pass (assuming Thacker Pass overcomes community challenges and gets into production).

Mercedes-Benz Group AG (XTRA: MBG) won’t share the lithium it gets from Rock Tech Lithium Inc. (TSXV: RCK), northwest of Thunder Bay, Ontario. These investments are to help ensure a vertical supply chain of lithium. Expect other investments into other critical minerals.

Countries are now Protecting Vertical Supply Chains for Critical Minerals

What did The Economist miss? Countries aren’t nationalizing or protecting mineral assets for tax or employment reasons. They are doing so to protect their own vertical supply chains for critical minerals. To do otherwise would be to turtle, to offer up a neck to be crushed by a foreign actor who has such minerals.

Countries like Peru, Argentina, Mexico, the Congo, and Kazakhstan have either announced or enabled plans to nationalize their natural resources.

Even nice Canada has taken some steps to put the ownership of Canadian assets into more friendly hands (too little, too late).

These countries won’t be the last.

When you’re investing, jurisdictional risk just became one of the largest risks to consider.




Molten Metals Aims to Meet the Rising Demand for Antimony in Energy Storage

Supply chain disruptions and geopolitical concerns caused Western governments to re-examine the source of critical metals that will drive the economic engine for decades to come.

Media attention seems focused on the battery metals required for electric vehicles (“EVs”), including lithium, cobalt, graphite, and rare earths, but antimony was one of the few metals that is on all of the critical metals lists across Australia, Canada, China, the EU, Japan, and the USA.

The importance of antimony

Currently, Antimony is primarily used as a flame retardant in items such as paints, plastics, and textiles. It is also used in brake pads, ceramics, glass for televisions and monitors, and rubber. When alloyed with lead, it is found in metal products used in ammunition and lead-acid batteries.

As we strive towards transitioning to a carbon-free society, it is essential not only to harness renewable energy but also to store it efficiently. The future increase in demand for antimony lies in its potential to become a crucial component in battery technology.

Antimony’s unique property as a heat retardant is essential in preventing thermal runaway in batteries, making it a crucial element in the development of effective energy storage systems. Its heat retardant properties enable the mass scalability of batteries, making it the only metal capable of achieving this goal.

Antimony molten salt batteries

Ambri Incorporated, a US-based energy storage company, has developed a long-duration liquid metal battery technology for the power grid with backing from prominent investors, including Bill Gates, Khosla Ventures, and SoftBank Group, and funding from the US Department of Energy.

Ambri’s battery technology uses solid antimony as the positive electrode, liquid metal calcium as the negative electrode, and a salt electrolyte consisting of calcium and chloride. The use of these metals allows for a reliable, low-cost, long-lasting, and safe energy storage solution that can enable the integration of renewable energy sources into the electric grid.

As Ambri continues with its commercialization efforts, it is estimated that its forward contract sales will require over 25% of the global production of antimony outside of China by 2026.

However, the current supply lacks the necessary capacity to fulfill this demand, leading to an imbalance in the supply-demand equation. This highlights the urgent need for investment in new antimony mines and refining (“roaster”) facilities.

FIGURE 1: Ambri’s Molten Salt Battery Chemistry

Source: Ambri’s website

Lack of supply and increasing demand drives the price higher

Currently, the global supply of antimony is heavily reliant on China, Russia, and Tajikistan, which produced over 88% of the world’s supply in 2022, according to the US Geological Survey (“USGS”).

Antimony prices have surged this year to a record high, currently trading at US$13,000 per tonne, more than double the US$5,500 per tonne rate in 2019.

FIGURE 2: Antimony Market Prices (US$/tonne)

Source: Argus Media

Newly Listed Molten Metals Corp.

Listed in August 2022, Molten Metals Corp. (CSE: MOLT| FSE: Y44) is a Canadian mineral exploration company and one of the few companies actively developing antimony assets in North America and Europe, reducing the foreign dependence on this resource.

The Company has four properties, which include a former antimony mine in Nova Scotia, Canada and it has two antimony-gold projects and one tin project in Slovakia. All of the Slovakian projects are brownfield sites, either past-producing mines or previously explored.

In Nova Scotia, Molten Metals’ West Gore project is home to one of Canada’s foremost historic antimony mines, which has been abandoned since the 1960s. The Company is currently testing the remaining stockpiles and tailings at the site, in an effort to extract valuable antimony and revive the mine.

According to the Company’s website, these stockpiles could contain up to 570 tonnes of antimony and 2,500 ounces of gold, worth approximately US$7.4 million and US$5.0 million at today’s price, respectively. These estimates were taken from a report released by George Packard in 1949 using a survey undertaken by Nova Scotia’s Department of Mines.

The Company is also focusing on the past-producing Trojarova project in Slovakia with a well-preserved mining infrastructure and a historic resource calculation, which, if correct, would make it one of the world’s largest unmined antimony projects globally.

Upcoming exploration plans include confirmation sampling and drill hole twinning to complete a NI 43-101 initial resource to validate the historical resource. Molten Metals could have one of the largest antimony resources globally if it can confirm the historical resources that were calculated in the 1980s and 1990s when Slovakia was part of the Soviet Union.

Offtake agreements and future capital

Molten Metals recently announced that it executed a non-binding Memorandum of Understanding (“MOU”) for a long-term antimony supply agreement with Swedish company Scandinavian Steel AB.

The agreement will be subject to a specific financial investment into the development of one or more of Molten Metals’ projects and a provision to upgrade the MOU to a binding offtake agreement within a reasonable time frame.

Final thoughts 

Molten Metals (CSE: MOLT| FSE: Y44) has a strong focus on antimony, which is increasingly in demand due to its use in batteries. In the short term, the Company plans to process the remaining stockpiles of tailings at its Nova Scotia project and advanced its mines in Europe. The company has two antimony-gold projects and one tin project in Slovakia that could provide a near-term, large resource and additional upside.

With a market cap of only C$1.9 million and a tight share structure of only 16.9 million shares outstanding, if you have confidence in the antimony theme, it should be a stock to watch.




Copper Mining M&A Continues as Green Energy Transition Drives Demand

Copper mergers & acquisitions continue to shine as the transition to a green economy requires a significant increase in the use of renewable energy sources, such as solar and wind power, and these sources depend on various metals to produce and store electricity, such as copper, lithium, cobalt, and nickel.

Copper is especially important for renewable energy, as it is used in electric vehicles, wind turbines, solar panels, and power grids. According to the International Energy Agency (IEA), the demand for copper could increase by 40% by 2040 under various governments’ Net Zero initiatives to cut greenhouse gas emissions.

This growing demand for copper has sparked a wave of mergers and acquisitions in the copper mining industry, as companies seek to secure access to high-quality deposits and expand their production capacity. Here are a couple of examples this year.

Teck to spin off steelmaking coal business to shareholders to create two independent companies

Teck Resources, a Canadian mining company, announced in February 2023 that it will spin off its steelmaking coal business to form two new companies: Teck Metals and Elk Valley Resources.

  • Teck Metals (“TM”) will retain Teck’s existing base metals operations and development projects, including copper mines in B.C. and Chile, a zinc mine in Alaska, a lead-zinc smelter in Trail, B.C., and copper projects in Chile and Peru.
  • Elk Valley Resources (“EVR”) will become a pure-play steelmaking coal producer with four metallurgical coal mines in B.C. and an enterprise value of C$11.5 billion.

Breakdown of the split

The split has been designed as a spin-off of Teck’s steelmaking coal business, with EVR common shares being distributed to existing Teck shareholders. Throughout a transition period, TM will maintain a significant stake in steelmaking coal cash flows, via an 87.5% interest in a gross revenue royalty (“Royalty”), as well as preferred shares of EVR (called the “Transition Capital Structure”).

As per the Transition Capital Structure, TM will receive quarterly payments consisting of Royalty payments and preferred share redemption amounts, which will collectively add up to 90% of EVR’s free cash flow.

Teck shareholders who are on record as of the relevant distribution record date will receive common shares of EVR in proportion to their Teck shareholdings, at an exchange ratio of 0.1 common shares of EVR for each Teck share (or roughly 51.9 million total EVR common shares), as well as around $0.39 cash per share, resulting in a total of $200 million in cash. Through a Dutch auction election process, shareholders will have the option to choose between receiving a greater amount of cash or common shares of EVR, subject to proration.

The separation is expected to be completed by the end of 2023, subject to regulatory and shareholder approvals with a shareholder vote expected on April 26, 2023.

Consolidating coal operations

In exchange for their minority interests in the Elkview and Greenhills coal operations, Nippon Steel Corporation (“NSC”) and POSCO, a South Korean steel-making company, have agreed to exchange their interest in the Elkview and Greenhills coal operations so EVR can own 100% of its projects.

NSC will exchange its interest and add C$1.025 billion in cash to acquire 10% of the common shares of EVR and POSCO will receive a 2.5% interest in EVR.

Strategic Move

The split will result in the formation of two resource companies, giving investors the option to allocate investments between two distinct businesses with different commodity fundamentals and value propositions.

TM will prioritize growth, boasting a copper development portfolio and premier low-cost base metals production. , while maintaining a disciplined capital returns policy.

EVR will be a Canadian high-margin steelmaking coal producer, focused on generating long-term cash flow and providing cash returns to shareholders, with ample potential for equity value accretion.

But suitors emerge

After the announcement, Glencore (LSE: GLEN), a Swiss mining company, announced an unsolicited bid to acquire Teck Resources for $22.5 billion, mostly in Glencore shares and up to $8.2 billion in cash.

According to recent reports, at least six other companies have now approached Teck to explore deals to acquire the base metals business after the split including, Anglo American (LSE: AAL), Freeport-McMoRan (NYSE: FCX), and Vale (BOVESPA: VALE3).

Hudbay Minerals to acquire Copper Mountain for US$439 million

Hudbay Minerals (TSX: HBM), a Canadian miner with operations in Canada, Peru, and the United States, announced on April 13, 2023, that it had entered into a definitive agreement to acquire Copper Mountain Mining Corporation (TSX: CMMC), a Canadian miner with assets in Australia and B.C. The transaction is expected to close in the third quarter of 2023.

The transaction, valued at US$439 million, will be carried out through an exchange of shares, whereby Copper Mountain shareholders will receive 0.381 of a Hudbay share for each Copper Mountain share they own. The deal represents a 23% premium over the 10-day volume-weighted-average share prices of both companies as of April 12, 2023.

The combination of Hudbay and Copper Mountain will create a premier Americas-focused copper producer with a diversified portfolio of high-quality, long-life assets and a robust pipeline of growth projects.

The combined company will have an annual copper production capacity of approximately 150,000 tonnes, with the potential to increase to over 200,000 tonnes through organic growth initiatives. The transaction is expected to generate an estimated US$30 million per year in operating synergies and enhance the financial position and flexibility of the combined company.

Lundin Mining to Acquire a Majority Interest in the Caserones Copper Mine in Chile

Lundin Mining (TSX: LUN), a Canadian company that operates several base metal mines, announced that it has entered into a purchase agreement with JX Nippon Mining & Metals Corporation, a subsidiary of ENEOS Holdings, Inc. (TSE: 5020), to acquire 51% of the Caserones copper mine in Chile for US$950 million.

The deal is worth US$800 million in upfront cash and US$150 million in deferred cash over six years. Lundin Mining also has the option to buy up to an additional 19% of Caserones for $350 million over five years.

Caserones is a large-scale, long-life copper-molybdenum operation located in the Atacama region of Chile. The acquisition leverages Lundin’s existing investment in the region, will increase its copper production by 50% in 2022, and enhance its cash flow generation.

Copper exploration companies to watch

Here are some other mineral exploration companies with copper projects that might be of interest to larger companies and they progress with exploration and development.

  • Clean Air Metals Inc. (TSXV: AIR | OTCQB: CLRMF): Clean Air Metals owns 100% of the high-grade Thunder Bay North Critical Minerals Project, a platinum, palladium, copper, and nickel project located near Thunder Bay, Ontario.
  • Critical Metals PLC (LSE: CRTM): Critical Metals has a 100% stake in Madini Occidental Limited, which holds an indirect 70% interest in the Molulu copper and cobalt project, an ex-producing, medium-scale asset in the Katangan Copperbelt in the Democratic Republic of Congo.
  • Fjordland Exploration Inc. (TSXV: FEX): Fjordland is a mineral exploration company that is focused on a nickel-cobalt-copper project in Newfoundland, a nickel project in Quebec, and two copper-gold properties in B.C.
  • Geophysx Jamaica Ltd. (private): Geophysx Jamaica is an exploration junior searching locally for new mineral discoveries in Jamaica and is focused on copper, gold, and rare earth metals.
  • Silver Bullet Mines Corp. (TSXV: SBMI | OTCQB: SBMCF): Silver Bullet Mines is a silver and copper exploration and development company with projects in Arizona and Idaho.
  • Troilus Gold Corp. (TSX: TLG | OTCQX: CHXMF): Troilus Gold is a mining company focused on the advancement and de-risking of the former gold and copper Troilus Mine in Quebec towards production.

Final thoughts

These deals reflect the strategic importance of copper for the green economy and the competitive advantage of owning low-cost, long-life assets that can meet the rising demand. They also indicate the challenges that copper miners face in finding new sources of supply, as existing mines are depleting, and new projects face environmental and social hurdles.

The copper mining industry is likely to see more consolidation and investment in the coming years, as the world shifts to more sustainable energy systems.




Russell Fryer of Critical Metals Plc Discusses Production from its Critical Minerals Mine in the DRC

In this InvestorIntel interview during PDAC 2023, Peter Clausi talks with Russell Fryer, Executive Director of Critical Metals Plc (LSE: CRTM) about some recent transactions which allowed the Company to now own 70% of the Molulu Project in the Democratic Republic of Congo (“DRC”).

Russel mentions that the copper and cobalt mine is cash flow generating as it went into production in January of this year, which is an “achievement for a small-cap company” listed on the London Stock Exchange.

He also discusses the potential for further acquisitions and he works through a pipeline of potential target projects.

To access the full InvestorIntel interview, click here.

Subscribe to the InvestorIntel YouTube channel by clicking here.

About Critical Metals PLC

Critical Metals Plc has acquired a controlling 100% stake in Madini Occidental Limited, which holds an indirect 70% interest in the Molulu copper/cobalt project, an ex-producing, medium-scale asset in the Katangan Copperbelt in the Democratic Republic of Congo. In line with its investment strategy of focusing primarily on known deposits, targeting projects with low entry costs and the potential to generate short-term cash flow; the Company brought the Molulu Project into production in January. 

The Company will continue to identify future assets that are in line with its stated acquisition objective of low CAPEX and OPEX projects with near-term production, concentrating on minerals that are perceived to have strategic importance to future economic growth and generate significant value for shareholders.

To know more about Critical Metals Plc, click here.

Disclaimer: Critical Metals Plc is an advertorial member of InvestorIntel Corp.

This interview, which was produced by InvestorIntel Corp. (IIC) does not contain, nor does it purport to contain, a summary of all the material information concerning the “Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This presentation may contain“forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken,  as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

If you have any questions surrounding the content of this interview, please contact us at +1 416 792 8228 and/or email us direct at [email protected].




How Does ESG Fit into the Critical Minerals Development Industry for Rare Earths Companies

As I mentioned in a previous article, I am contacting key Australian Stock Exchange-listed Critical Minerals companies to get their views on Environmental, Social, and (corporate) Governance (“ESG”). I am looking to assuage the concerns of some of our stakeholders as to the ESG credentials of those Australia-based organizations that are in a position to supply and value add to the Critical Minerals shortage the world is now facing.

The questions are not designed as a platform for investment decisions, but as an important step toward letting investors know what their values are, what their achievements have been, and where do they see our industry heading.

The reference table will include the company name, the ASX Ticker code, their website reference, their current Market Capitalization, and their response to the ESG questionnaire.

The reference table will include all of the Australia-based companies that qualify as part of the Australian Critical Minerals Strategy referenced below.

2022 Critical Minerals Strategy

The survey questions were:

  1. A brief description of your activities
  2. How do you define ESG?
  3. What should stakeholders be aware of in your approach to ESG?
  4. How do you see ESG becoming an important function in the future?
  5. Do you have any ESG lessons learned that you may wish to share?

I will update the reference tables regularly and highlight any new responses received. As this is the first time, here is the Rare Earths table. The next issue will be the Lithium table, followed by the Vanadium and Cobalt tables. Each issue will allow access to the tables via links and similarly with the ESG responses from the queried companies.

Rare Earths Company Web Site Mkt Cap AUS$
(18 Feb 2023)
ESG Response
Alpha Hpa Limited (ASX: A4N) www.Alphahpa.com.au   $578.97M Queried Feb 15
ABX Group Limited (ASX: ABX) www.abxgroup.com.au   $31.30M  
Alkane Resources Limited (ASX: ALK) www.alkane.com.au   $365.38M Queried Feb 15
Alchemy Resources Limited (ASX: ALY) www.alchemyresources.com.au   $16.02M  
American Rare Earths Limited (ASX: ARR) www.americanrareearths.com.au   $111.55M Queried Feb 15
Arafura Rare Earths Limited (ASX: ARU) www.arultd.com   $1.26B Queried Feb 15
Austin Metals Limited (ASX: AYT) www.austinmentals.com.au $6.35M
Australian Mines Limited (ASX: AUZ) www.australianmines.com.au   $28.79M  
Australian United Mining Limited (ASX: AYM) www.australianunitedmining.com.au   $2.76M  
Australian Strategic Materials Limited (ASX: ASM) www.asm-au.com   $323.41M Queried Feb 15
Encounter Resources Limited (ASX: ENR) www.encounterresorces.com.au   $49.77M  
Enova Mining Limited (ASX: ENV) www.enovamining.com   $4.69M  
Hastings Technology Metals Limited (ASX: HAS) www.hastingstechmetals.com   $387.54M Queried Feb 15
Iluka Resources Limited (ASX: ILU) www.iluka.com   $4.55B Queried Feb 15
Ionic Rare Earths Limited (ASX: IXR) www.ionicre.com.au   $127.74M Queried Feb 15
Krakatoa Resources Limited (ASX: KTA) www.ktaresources.com   $13.96M  
Legacy Iron Ore Limited (ASX: LCY) www.legacyiron.com.au   $72.08M Queried Feb 15
Lindian Resources Limited (ASX: LIN) www.lindianresources.com.au   $210.22M Queried Feb 15
Lanthanein Resources Limited (ASX: LNR) www.lanthanein.com   $22.43M  
Lynas Rare Earths Limited (ASX: LYC) www.lynasrareearths.com   $7.50B Queried Feb 15
Minbos Resources Limited (ASX: MNB) www.minbos.com   $81.46M Queried Feb 15
Mount Ridley Mines Limited (ASX: MRD) www.mtridleymines.com.au   $15.57M  
Northern Minerals Limited (ASX: NTU) www.northernminerals.com.au   $223.92M Queried Feb 15
Nova Minerals Limited (ASX: NVA) www.novaminerals.com.au   $129.18M Queried Feb 15
Orion Metals Limited (ASX: ORM) www.orionmetals.com.au   $16.35M  
Peak Rare Earths Limited (ASX: PEK) www.peakrareearths.com   $124.82M Queried Feb 15
Platina Resources Limited (ASX: PGM) www.platinaresources.com.au   $12.46M  
Prospect Resources Limited (ASX: PSC) www.prospectresources.com.au   $81.02M  
Petratherm Limited (ASX: PTR) www.petratherm.com.au   $13.77M  
RareX Limited (ASX: REE) www.rarex.com.au  $34.42M  
Sunshine Gold Limited (ASX: SHN) www.shngold.com.au   $14.62M  
Stavely Minerals Limited (ASX: SVY) www.stavely.com.au   $78.37M  
Tempus Resources Ltd. (ASX: TMR) www.tempusresources.com.au   $13.03M  
Todd River Resources Limited (ASX: TRT) www.trrltd.com.au   $9.46M  
Venus Metals Corporation Limited (ASX: VMC) www.venusmetals.com.au   $28.59M  
Vital Metals Limited (ASX: VML) www.vitalmetals.com.au   $114.97M Queried Feb 15

Note: At the time of publication, there have been no ESG responses to those Rare Earth companies queried.

As an aside, if I was responsible for responding to the above query, I would also publish that response to the ASX and include it on the company’s website for ongoing reference.