Chris Thompson on Kodiak Copper’s high-grade porphyry drill results from its MPD copper-gold project in BC

Earlier this month, Kodiak Copper Corp. (TSXV: KDK) reported additional high-grade porphyry drill results from its MPD copper-gold project in southern British Columbia.

Results are being released from a nine-hole, 4,000-metre summer drill program, primarily targeting the northern end of the 9,730-hectare (24,000-acre) property in an area called the Gate Zone.

On November 9, Kodiak released the results from drill hole MPD-20-005. It returned a mineralized interval of 515.8 metres of 0.41% copper, 0.22 g/t gold and 1.50 g/t silver from 223.5 metres down hole. This result included a high-grade interval of 45 metres of 1.18% copper, 1.01 g/t gold and 4.00 g/t silver (2.13% copper equivalent).

Claudia Tornquist, President and CEO of Kodiak commented, “This hole expands the central high-grade zone previously announced in hole MPD-20-004. Importantly, we are also starting to see significant size to the larger mineralized envelope, first identified in the near-surface by shallow historic drilling and extended down to a depth of over 800 metres by Kodiak.”

The Company also commented that the results were similar to hole MPD-20-004, originally reported in October, which assayed 535.1 metres of 0.49% copper, 0.29 g/t gold and 1.76 g/t silver (0.76% copper equivalent). This result included a high-grade interval of 45.7 metres of 1.41% copper, 1.46 g/t gold and 5.56 g/t silver (2.75% copper equivalent).

The drill results continue to define a mineralized zone and identify an area of higher copper and gold grades. See the figure below for the results and location of holes MPD-20-004 and MPD-20-005.

Final Summer Drill Results Pending and Fully Funded Through 2021

With a current backlog at the assay lab, results are still pending from 4 holes, including MPD-20-006, MPD-20-007 and MPD-20-009, which were drilled into the same Gate Zone. (See the figure below.)

In September, Kodiak completed a C$12.5 million financing, including a C$8.0 million strategic investment from Teck Resources (TSX: TECK.B) that now will own a 9.9% interest in the Company.

Proceeds from the financing will be used to fund the Company’s exploration programs on both its copper porphyry exploration projects in British Columbia and Arizona into 2021, including 30,000 metres of drilling at the MPD project.

MPD Copper-Gold Porphyry Project

Kodiak’s principal project is MPD and it is located near producing mines in the Quesnel Trough in southern British Columbia. The project is accessible year-round with paved highways within a kilometre of the drill targets.

From previous exploration on the MPD project, over 100 historical drill holes defined the potential for a large copper-gold system with multiple centres, across 10 square kilometres of the property. However historical drilling focussed mainly on shallow mineralization, down to about 200 metres and current drilling by Kodiak extends the drilling depth down to 800 metres.

The discovery hole from 2019 (MPD-19-003) underlied a large copper-in-soil anomaly with over one kilometre of strike at the Gate Zone. With these current drill results, the Company now has minerialized core from the three known copper porphyry zones on the MPD Project but believe they have literally “only scratched the surface” as many of the project’s copper-in-soil anomalies remain untested.

Don’t Let the Grade and Depth Get You Down, it is the Size that Matters

After the recent drill results were released, Kodiak’s stock price corrected downward by almost 60% from its 52-week high.

However, investors need to understand that a porphyry can be a giant of a mineral deposit. Deposit sizes range from 100 million to 5 billion tonnes of ore with grades that are typically in the 0.2% to 1% copper range.

Virtually all significant copper mines in the Quesnel Trough consist of multiple porphyry centres and Kodiak has defined three copper porphyry zones but believe there are more to discover. The upcoming 30,000-metre drill program could go a long way to proving up the project’s potential.

With recent drill result grades of 0.41% and 0.49% copper, the results compare well with the two other large-tonnage producing mines in the Quesnel Trough that average less than 0.28% copper:

  1. New Gold Inc. (TSX: NGD)
    • New Afton Mine: 10 km west of Kamloops, B.C.
    • 47.3 million tonnes at 0.77% copper, 0.66 g/t gold, 1.9 g/t silver (December 31, 2019 reserves)
  2. Copper Mountain Mining (TSX: CMMC)
    • Copper Mountain Mine: 190 km south of Kamloops, B.C.
    • 412.9 million tonnes at 0.24% copper, 0.11 g/t gold, 0.76 g/t silver (December 31, 2019 reserves)
  3. Teck Resources (TSX: TECK.B)
    • Highland Valley Mine: 75 km southwest of Kamloops, B.C.
    • 484.0 million tonnes at 0.31% copper (December 31, 2019 reserves)

Copper Demand Soon to Outstrip Supply

Copper’s forecasted supply and demand imbalance should work in Kodiak’s favour.

After hitting a 4-year low in March and in the midst of a global pandemic, the price of copper rebounded and is up over 50%, flirting near the highs of 2018.

Around the world, political pressure is calling for Green New Deals, whereby clean-generated electricity replaces fossil fuels to reduce pollution and fight climate change.

According market research, an electric vehicle requires 5-10 times more copper than a regular internal combustion engine and green electric energy from solar and wind needs 4-6 times more copper than energy generated from fossil fuels.

In addition, as fossil fuel power is replaced by wind and solar, the electrical infrastructure would need an overhaul, increasing the demand for copper further.

Finally, in various studies, copper exhibits antibacterial, antiviral and anti-fungal properties and, due to the recent pandemic, there could be a shift by manufacturers and governments from stainless steel to copper covered surfaces.

According to S&P Global Market Intelligence, copper demand from power projects, construction and electric vehicles will outstrip supply starting this year. The current forecasted shortfall is 299,000 tonnes of copper this year, rising to 489,000 tonnes in 2024.

Meanwhile, to fill the demand, the pipeline of copper development projects coming into production is low and may require higher copper prices to fuel more exploration and development interest.

The world is going to need more copper and Kodiak remains well positioned with location, cash, a strategic partner and a solid start with multiple mineralized zones to build upon.

Prophyry Example - Kodiak Gate Zone Drilling-2

Source




As the EV boom accelerates here are some smaller EV stocks with a chance to follow in Tesla’s footsteps

The second half of 2020 has seen a tremendous boost in electric vehicle (EV) sales globally. For example, in September 2020 we saw record global electric car sales, up 91% YoY, with 4.9% market share (3.4% YTD). Europe sales surged 166% YoY reaching 12% market share and China sales rose 66% YoY reaching 6.3% market share. Along with booming EV sales we had Tesla (NASDAQ: TSLA) Battery Day where Tesla shocked the world announcing plans to have a US$25,000 electric car by 3 years (2023) and to be selling 20 million EVs pa by 2030. Finally just yesterday the UK announced a ban on all new gasoline and diesel cars from 2030.

With so much good news it is not surprising we have seen a surge in new EV listings and EV stock prices. With Tesla now at a market cap of US$461 billion, many investors are searching for the next Tesla, or even the next BYD Co. (OTC: BYDDF). With this in mind I briefly discuss 11 smaller and newer EV companies with potential to follow to some degree in Tesla’s footsteps.

Arcimoto Inc. (NASDAQ: FUV)

Arcimoto is an American electric vehicle company that manufactures three-wheeled electric vehicles. Their platform product is called the ‘Fun Utility Vehicle’, or FUV. It is a tandem two-seat EV with a top speed around 75kms per hour. Arcimoto’s vehicles are affordable, ultra efficient, small-footprint electric vehicles. Arcimoto is targeting those who want a fun city EV, as well as the deliveries and fleet sectors with their ‘deliverator’ and ‘rapid responder’ tricycle. Arcimoto is currently undergoing a study by Munro & Associates to see how they can better achieve efficient high production volume. Recently Arcimoto and the City of Orlando launched a joint Municipal Pilot Program to test ultra-efficient EVs in city fleets. Their current market cap is US$300M.

Arcimoto’s 3 wheel all-electric Fun Utility Vehicle (FUV)

Source

AYRO Inc. (NASDAQ: AYRO)

AYRO is based in Texas, USA and designs and manufactures compact, ‘purpose-built’, low speed electric vehicles ideally for urban and short-haul markets. AYRO’s EVs are great for fleets used on university and corporate campuses, for commercial and urban delivery, and other low speed/short haul applications. Their current market cap is US$103M.

Electrameccanica Vehicles Corp. (NASDAQ: SOLO)

ElectraMeccanica Vehicles is a Canadian manufacturer of all-electric three-wheelers. The difference to Arcimoto is that their EV is designed for a ‘single’ (solo) driver, as most of our car travel is done alone. Their current market cap is US$537M.

Fisker Inc. (NYSE: FSR)

Fisker Inc. is a California based EV company with plans to be the world’s first digital electric car company, sitting in the ‘premium affordable’ category. Their first car, the Fisker Ocean, was the most awarded new automobile at CES 2020 and is planned to be in production by Q4 2022. Fisker recently struck an agreement with contract car manufacturer Magna International to produce the Fisker Ocean in Austria. Fisker is targeting initial sales of 8,000 EVs in 2022, 51,000 in 2023, and 175,000 in 2024. Their current market cap is US$4.72 billion.

Fisker Ocean SUV due out by Q4 2022

Source: Fisker

Hyliion Holdings Corp. (NYSE: HYLN)

Hyliion stands for ‘hybrid lithium ion”. Hyliion, based in Texas USA, is focused on electric trucks, mostly class 8 commercial vehicles (semis). Their EVs are a hybrid that combines a fully electric drivetrain and a natural gas-powered onboard generator to recharge the battery. Their Hypertruck ERX will provide more than 1,000 miles of range. Their current market cap is US$3.8 billion.

Lordstown Motors Corp. (NASDAQ: RIDE)

Lordstown Motors Corp. is based in Ohio, USA. Lordstown builds electric pickup trucks and other vehicles to revolutionize the way work gets done. Lordstown Motors unveiled their all-electric Endurance pickup truck in June and have received 27,000 orders from mainly commercial fleet customers. GM is an investor into Lordstown Motors. Their current market cap is US$4.54 billion.

Nikola Corp. (NASDAQ: NKLA)

Nikola is an American hybrid truck company based in Phoenix, Arizona. Nikola offers both battery electric vehicles (BEVs) and fuel cell electric vehicles (FCEV). Nikola has had a series of talks with General Motors (GM) regarding manufacturing their Nikola Badger electric pickup truck. Their current market cap is US$9.76 billion.

Nikola Badger

Source

Workhorse Group (NASDAQ: WKHS)

Workhorse Group is an American manufacturing company focused on manufacturing electrically powered ‘delivery and utility’ vehicles. Their current market cap is US$2.75 billion.

The top tier Chinese smaller and newer EV companies

  • Li Auto Inc. (NASDAQ: LI) – Li Auto’s sport-utility vehicle model Li ONE allows drivers to charge their cars with electricity and/or gasoline, a technology called extended range electric vehicle (EREV). Market cap is US$29.7 billion.
  • Nio Inc. (NYSE: NIO) – Nio’s focus is on all-electric, luxury, smart, and autonomous vehicles. Nio currently sells 3 luxury EVs – es8, es6, and ec6. Nio’s sales have been rapidly growing in recent months reaching 4,708 vehicles in the month of September 2020. Market cap is US$61.4 billion.
  • XPeng (NYSE: XPEV) – XPeng makes smart EVs that offer advanced internet, AI and autonomous driving technologies. XPeng has two models the G3 SUV and the P7 sedan. XPeng’s sales have been rapidly rising the last few months reaching 3,478 vehicles in the month of September 2020. XPeng has a new factory soon to be built, which once complete will lift their capacity to 250,000 EVs pa. XPeng is backed by Alibaba. Market cap is US$30.99 billion.

The XPeng G3 SUV

Source

All of the companies discussed in this article are pure play newer EV companies that are rapidly growing, and in many cases, gaining market share. As the EV boom accelerates these smaller EV companies have the potential to do very well, boosted by a massive switch to EVs as consumers come to see the enormous benefits. By 2023 EVs should be purchase price competitive with regular gasoline cars, but 5-10x cheaper to run and maintain.

Many of these EV companies have seen their stock prices rise dramatically the past 6 months, so investors need to use some caution and to do their own due diligence. One strategy can be to buy on dips or accumulate over time.

The EV future looks increasingly bright as more and more consumers choose EVs, boosted each year by cheaper EV prices, and with many Governments now supporting the sector. Will any of these newer names become the next Tesla, I cannot say. What I can say is that there is still plenty of potential for others to follow in Tesla’s footsteps, especially as we are just in the beginning stage of what most certainly looks to be a boom decade ahead for EVs.

Disclosure: The author is long Tesla, BYD Co, Fisker Inc., XPeng, and Arcimoto.




Focused on the EV sector and fintech solutions, Ideanomics identifies opportunity

The commercial electric vehicle (EV) space is starting to accelerate now, boosted by Government initiatives and favorable economics. In October 2020, there was a big announcement in China that many people missed. It was announced that China passed a plan to boost their new energy vehicle industry (NEVs are mostly comprised of EVs). The key point was: “Starting from 2021, at least 80 percent of public transportation, taxi and logistics vehicles in the national ecological civilization pilot zones in Fujian, Jiangxi, Guizhou and Hainan should be new energy vehicles.” This is very big news for the Chinese commercial EV space. The Company I am discussing today is focused precisely on this area.

The global commercial vehicle market is enormous, with the new opportunity being the switch to EVs

Source

Ideanomics, Inc. (NASDAQ: IDEX) is a global fintech company for transformative industries with a goal of empowering a new economy. Ideanomics has identified a niche market in the commercial electric vehicle (EV) segment – helping companies with EV fleet purchases by financing and brokering deals, EV leasing, and EV charging with an initial focus on China but also expanding globally. Many fleet operators are restricted in what they can borrow on EVs as opposed to on internal combustion engine (ICE) vehicles – hence an opportunity for Ideanomics.

Ideanomics has two key divisions:

  • Mobile Energy Global (MEG) – Provides group purchasing discounts on commercial electric vehicles, EV batteries and electricity as well as financing and charging solutions. The main focus for now is Chinese EV fleet operators, however a recent 14.7% investment into Solectrac (California e-tractor company) shows the intention for global expansion. Another was their 2019 51% acquisition of Treeletrik, the only licensed pure-play EV manufacturer and distributor in Malaysia.
  • Ideanomics Capital – Provides disruptive fintech solutions and services across the financial services industry. Ideanomics focuses on leveraging technology and innovation to improve efficiency, transparency, and profitability for the financial services industry. A recently announced purchase of 100% of California-based Timios Holdings Corp. (a leading title and settlement solutions provider) again shows Ideanomics is expanding globally.

Ideanomics – Driving commercial EV adoption and disruptive fintech solutions

Source

Ideanomics business model is to target new and disruptive industries such as EVs and fintech. Added to this, Ideanomics takes a long term view and aims to establish solid businesses with recurring revenues. Some examples would be regular EV fleet sales, EV charging, EV financing, real estate settlement/title services and other fintech businesses.

Ideanomics’ DNA is to serve as a catalyst for change through innovation. With innovation comes the chance to drive greater efficiencies that can lead to greater revenues and ultimately profits. Ideanomics MEG division remains Ideanomics’s core business, accounting for 95% of revenue in Q3, 2020. A November 10, 2020 paid broker report guides for Ideanomics revenues to be US$30M in CY20 (Q3 2020 revenue was US$10.6M) and to ramp up to about US$100M in CY22. They quote an end CY22 intrinsic value for Ideanomics of US$2.44/share.

Also of some interest is that there has been recent buyer activity from Morgan Stanley.

Ideanomics revenue is growing fast achieving US$10.6M in Q3 2020

Source

Commercial EV deliveries growing each month led by taxi and ride hailing

Source

Closing remarks

The commercial EV space is currently undergoing the first and early stages of an enormous disruption as the global fleets move towards electrification. China is leading the way and hence is where Ideanomics has their main initial focus. I would expect the trend to grow exponentially both in China and globally as operators start to understand the massive cost savings of running EV fleets versus combustion cars. Ideanomics has already expanded into Malaysia and California, USA.

Ideanomics has been traveling under the radar with many investors not yet knowing or understanding their business, leaving a potential opportunity for early investors. As the Company grows so will the recognition and revenues, and in time profits. Ideanomics trades on a current market cap of US$236M. One to follow.




MOU with the Saskatchewan Research Council signals another milestone for Search Minerals on their quest to produce rare earths in NA

A likely Biden victory in the USA is positive for all the rare earths miners. This is because one of Biden’s key policies is a massive $2 trillion green infrastructure and jobs plan over his first term in office that aims to have a US carbon pollution-free power sector by 2035. This would be a huge tailwind for the US renewable energy sector (solar and wind) as well as supportive to the US electric vehicle (EV) industry. Any North American rare earths suppliers who can potentially supply the USA and/or Canada with rare earths would be likely to benefit as North America embraces the green revolution.

One rare earth miner worth considering is Search Minerals Inc. (TSXV: SMY) (“Search”). Search is focused on finding and developing critical rare earth element mineral assets in Labrador, Canada.

In some very exciting recent news Search has signed a Memorandum of Understanding (MOU) with the Saskatchewan Research Council (SRC). The MOU outlines a collaboration with SRC as they build their Rare Earth Processing Facility in Saskatchewan, Canada.

Search Minerals President and CEO, Greg Andrews, commented: “We anticipate using the (SRC) conventional solvent extraction process to enable Search to validate the ability to produce the individual rare earth oxides necessary to enter the rare earth supply chain.

Recent announcements regarding building electric cars in Canada and other government led initiatives for clean and green technology provides the framework for industry access to a secure rare earth supply chain in Canada. We believe Search is well positioned to capitalize on these opportunities.”

Search controls properties in three areas of Labrador, Canada. These are:

  • The Port Hope Simpson (PHS) Critical Rare Earth Element District in SE Labrador
  • The Henley Harbour Area in Southern Labrador
  • The Red Wine Complex located in Central Labrador

Search Minerals has nearby infrastructure in place at St. Lewis, Labrador, Canada

Source

Within the Port Hope Simpson District Search’s main discoveries are the Foxtrot Resource, Deep Fox, Fox Meadow, Silver Fox, and Awesome Fox deposits which contain rare earths including dysprosium (Dy), neodymium (Nd), praseodymium (Pr), terbium (Tb), yttrium (Y), zirconium (Zr), and hafnium (Hf).

The district covers a 63 km long and 2 km wide belt. At Foxtrot the total Indicated Resource is 7.392 million tonnes with grades of neodymium oxide (1,732ppm), neodymium (1,485ppm), praseodymium (397ppm), and dysprosium (191ppm). The 14 year Life of Mine (LOM) Foxtrot Project offers an IRR of 16.7% on an after tax Net Present Value (NPV) 10% of $48M, with a CapEx of only $152M. The NPV quoted above is only for the Foxtrot Project, so once the other projects are combined into a bigger project the NPV should improve.

At Fox Meadow, 2020 channel assay results outlined two mineralized zones on the surface: The NW zone is up to 175m wide and the SE zone is up to 116m wide. Combined, the mineralization is at least 790m long and contains similar grades of the REE magnet materials (Nd, Pr, Tb and Dy) as Foxtrot and Deep Fox. This is a good result as it means Search is continuing to find more REE mineralization to potentially further grow their resource.

At Silver Fox, Search has recently successfully expanded the Silver Fox high grade zirconium-hafnium (REE) mineralized zone. In the news release Search commented: “This surface expression is significantly longer, but thinner, than the surface expressions of the nearby and related Foxtrot and Deep Fox Resources. The mineralization is similarly hosted by peralkaline volcanic rocks and contains lower grades of the REE magnet materials (Nd, Pr, Tb and Dy) but significantly higher grades of Zr and Hf.”

At Awesome Fox, the 2020 channel program (7 new channels) along with previous channels has outlined a REE mineralized zone ranging from about 4-43m thick and 850m long.

Source

Closing remarks

Earlier in 2020, rare earths expert Jack Lifton stated about Search Minerals: “I think it may well be Canada’s first commercial rare earth producer.” Given Search has completed a Resource estimate (Foxtrot, Deep Fox), a PEA (Foxtrot), has successfully produced 99% purity REO concentrate from their pilot plant and patented process, and now has a potential larger scale processing option with SRC; this all combines to suggest that Search Minerals is well on the way towards commercial production. Next steps would involve a BFS and potentially some trial production with SRC once their facility is built.

Search Mineral’s current market cap is only C$10.5M suggesting there may be plenty of upside potential ahead, especially if they continue to successfully advance towards production.




White House News: Trumps test positive for COVID-19 and critical materials national emergency declared

As Americans wake up today they will learn that their President and First Lady have both tested positive for COVID-19 (coronavirus). This follows the other big news from the White House just two days earlier that an Executive Order has been issued declaring “a national emergency” to deal with the threat of a lack of critical minerals supply chain for the US. If we add in the debate earlier this week, it certainly has been a busy and bruising week for the White House.

With just one month to go to the US election on November 3, the White House has been thrown into chaos. US futures have reacted negatively and are down. President Trump has been criticized for his poor handling of the COVID-19 crisis that has now infected almost 7.5m Americans and killed 212,694. Now he is one of them. There is no doubt as many Americans still await a long delayed stimulus package many will have mixed feelings about today’s news. For investors they will be watching the fallout as markets open.

But there is a ray of sunshine for investors in critical materials companies. On September 30 The White House announced: “Executive Order on addressing the threat to the domestic supply chain from reliance on critical minerals from foreign adversaries.

The U.S. List of 35 critical minerals include the following: (1) Aluminum (bauxite); (2) Antimony; (3) Arsenic; (4) Barite; (5) Beryllium; (6) Bismuth; (7) Cesium; (8) Chromium; (9) Cobalt; (10) Fluorspar; (11) Gallium; (12) Germanium; (13) Graphite (natural); (14) Hafnium; (15) Helium; (16) Indium; (17) Lithium; (18) Magnesium; (19) Manganese; (20) Niobium; (21) Platinum Group of Metals; (22) Potash; (23) The Rare Earth Elements Group: (Cerium, Dysprosium, Erbium, Europium, Gadolinium, Holmium, Lanthanum, Lutetium, Neodymium, Praseodymium, Promethium, Samarium, Terbium, Thulium, Ytterbium and Yttrium); (24) Rhenium; (25) Rubidium; (26) Scandium; (27) Strontium; (28) Tantalum; (29) Tellurium; (30) Tin; (31) Titanium; (32) Tungsten; (33) Uranium; (34) Vanadium and (35) Zirconium. The six underlined are those included in the ORE Act, which also seeks to secure US supply or these 6 critical materials.

Major US import sources of non-fuel mineral commodities – China dominates

Source: Courtesy US Geological Survey

The key points of the September 30 President Trump critical minerals Executive Order are:

  • The US’s undue reliance on critical minerals, in processed or unprocessed form, from foreign adversaries constitutes an unusual and extraordinary threat. “I (President Trump) hereby declare a national emergency to deal with that threat.”
  • “By expanding and strengthening domestic mining and processing capacity today, we guard against the possibility of supply chain disruptions and future attempts by our adversaries or strategic competitors to harm our economy and military readiness.”

In response to the threat President Trump proposes several measures to be taken with different time frames ranging from 30 to 60 days from September 30, 2020.

The Executive Order says the US Gov. will look into giving “grants to procure or install production equipment for the production and processing of critical minerals in the United States”, “loan guarantees” and for projects that support domestic supply chains “funding awards and loans pursuant to the Advanced Technology Vehicles Manufacturing incentive program.”

For investors in the critical minerals mining sector this is good news and very welcome. The main winners so far have been the US or Canadian based critical minerals companies or those that can help supply the USA with critical minerals. Some examples have been Lithium Americas (lithium), Westwater Resources (graphite), most of the rare earths companies, and most of the electric vehicle (EV) metal miners.

InvestorIntel Rare Earths Watchlist Top 5 from October 1, 2020

Source

The Tesla Battery Day revelations now mean that the EV revolution will rapidly accelerate. Tesla plans to have 3TWh of battery capacity by 2030, which will be enough for Tesla to make 20 million (m) EVs per year plus energy storage products. To get a feel for the demand shock wave to hit EV metal miners, if Tesla produces 20m EVs in 2030 that will require 2.7m tonnes of lithium carbonate equivalent (LCE), which is 9x total 2019 global supply. Wow!

Investing in the critical materials miners and other parts of the supply chain to support the US this decade, as the world rapidly moves to renewable energy and EVs, just got a HUGE boost.

Now we wait and see what happens next with President and Lady Trump, the US election, and the COVID-19 pandemic. No-one can say that 2020 has been a boring year!




Drolet Stock Note: Is Giga Metals the next take-over target of TESLA?

Mario Drolet, President of MI3 Communications Financières Inc. (MI3), released his Stock Notes on Giga Metals Corp. (TSXV: GIGA | OTCQB: HNCKF) for exclusive distribution on InvestorIntel. Highlights include:

  • Giga Metals focus on two of the key metals used in the batteries of electric vehicles: Nickel and Cobalt.
  • The company’s core asset is the Turnagain Project, located in northern British Columbia. It contains one of the largest undeveloped sulphide nickel and cobalt resources in the world.
  • Tesla is looking to have an interest in a Canadian mine to secure a supply of low-carbon nickel, according to a Reuters report. The battery electric vehicle maker is in talks with Canadian mining company Giga Metals to help develop a large mine to secure a source of environmentally friendly nickel.
  • Giga jump in volume… rumors of talks with TESLA.
  • Support: S2; $0.93    S1; $ 1.68
  • Resistance: R1; $2.05   R2; $2.25

About Giga Metals Corp.:

Giga Metals aims to be a premier supplier of the battery metals that will be needed as the world progresses to a future powered by clean energy. They are currently focused on two of the key metals used in the batteries of electric vehicles: Nickel and Cobalt. Their Turnagain Project is among the largest undeveloped nickel-cobalt sulphide deposits in the world in terms of total contained nickel. The NI 43-101 compliant resource contains 5.2 billion pounds of nickel and 312 million pounds of cobalt in the measured and indicated categories, plus a further 5.5 billion pounds of nickel and 327 million pounds of cobalt in the inferred resource category.

PLEASE DO YOUR DUE DILIGENCE

Disclaimer: This MI3 Technical Note produced by MI³ Communications Financières is neither an offer to sell, nor the solicitation of an offer to buy any of the securities discussed therein. The information contained is prepared by MI3, emanating from sources deemed to be reliable. MI3 Communications Financières makes no representations or warranties with respect to the accuracy, correctness or completeness of such information. MI³ Communications Financières accepts no liability whatsoever for any loss arising from the use of the information contained therein. Please take note that for compliance purposes, all directors, consultants or employees of MI3 Communications Financières are prohibited from trading the securities of the company and MI3 Communications Financières is a shareholder and do not intend to sell any shares during the distribution of this report.




The million mile battery is ahead for electric vehicles – and investors

Nano One positioned for great things as the EV boom approaches

Superior battery technology continues to move towards significant breakthroughs such as the ‘million mile battery’ and ‘low cost/fast charging’ lithium ion batteries. These new advances will act as a huge boost for electric vehicle (EV) sales and allow the next generation of EVs to become super competitive with conventional cars. The million mile battery suddenly makes EVs the preferred choice for fleet operators (taxis, hire cars, deliveries, trucking etc) and the cheaper/fast charging batteries mean that by 2022 we should start to see EVs reach price parity with conventional cars. This will lead to a tsunami of EV sales.

All of this is only possible because of scientific breakthroughs by leading companies such as Nano One Materials Corp. (TSXV: NNO). Car and battery manufacturers are jumping onboard so that they can remain competitive in a rapidly changing auto world. Volkswagen’s partnership with Nano One is just one of many examples.

Understanding the massive changes happening in the auto industry helps explain why Nano One’s stock is up 145% over the past year as investors start to see their potential of the predicted US$23 billion cathode market opportunity. Specifically, Nano One is targeting the licensing opportunity to improve cathodes estimated at $1 billion in annual revenues by 2025.

Nano One’s mission is to establish its patented technology as a leading platform for the global production of a new generation of battery materials. Nano One has developed patented technology for the low-cost production of high-performance lithium ion battery cathode materials.

Nano One is targeting a potential $1b licensing opportunity in the $23b cathode market by 2025

Source

Investors might think that it is too late to buy into Nano One looking at recent stock price gains, but actually on the current market cap of C$239m if Nano One can deliver the potential revenues below as per their targets the stock will have appeared cheap. This is because they are targeting  about $70m a year in revenues by 2025 and profit margins are expected to be extremely high.

Nano One potential revenues by 2025

Source

Nano One’s patented cathode used for the ‘million mile battery’

Nano One announced in June this year the development of a coated, single crystal cathode material for lithium ion batteries that is providing up to 4 times improvement in longevity. The technology is applicable to all of Nano One’s cathode materials but is especially relevant to lithium nickel manganese cobalt oxide (NMC811). According to Nano One, “Increased durability is critical in enabling extended range, faster charging and even million mile batteries for electric vehicles.”

This breakthrough makes the ‘million mile battery’ within reach. Such a battery would mean EVs can last at least 4x longer than a conventional car. The implications are enormous. Fleet operators will be lining up to buy EVs with million mile batteries.

Nano One’s other key projects (LFP cathodes, and solid state battery cathodes)

Nano One has also made great progress in reducing the cost and improving the performance of Lithium Iron Phosphate (LFP) cathodes. Nano One has developed patented ‘one-pot cathode materials and production processes’ that reduces both the time and cost of LFP production. Working with partners such as Pulead who specialize in LFP cathode production opens up the door for licensing opportunities.

Nano One is also working on a breakthrough for the ‘holy grail’ of batteries – a solid state battery. Nano One’s patented cathode tests positively in solid state batteries with auto companies. Nano One says that their “cobalt free cathode reduces supply chain risk, increases power and enables fast charging,” and their “coated nanocrystal cathodes (single crystal) boost durability, capacity and charge rates.”

Nano One is partnered for success

Nano One is very well partnered into the EV/battery supply chain via partnerships with industry giants Volkswagen, Pulead, Saint-Gobain and other undisclosed global automotive interests. Added to this they have had the support of the Canadian government.

Closing remarks

With so many breakthroughs in one year it is little wonder that Nano One’s stock price is up 145%. Great management, great technology, and great partners are always a winning formula.

Nano One currently has a market cap of C$234m and looks poised for great things as the real EV boom is just about to begin.

Further learning