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Metal Commodities Investment Platform Lithium and Cobalt to benefit from EV revolution
Metal Commodities Investment Platform
Lithium and Cobalt
to benefit from EV revolution
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Metal Commodities Investment Platform
Media Partner to major world-wide mining events
Published since the 1980s; an international premier independent information and advisory source on investing in the worldwide gold equity markets.
Published since October 2005; an international premier information and advisory source for investing in the international uranium equity markets.
Published since September 2010, covering the international rare earth elements, critical metals and special mineral markets. In the last few years focused on the impact of globalization on supply and demand of battery metals having the benefit of the electric vehicle revolution.
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Light Rare Earth Oxides (LREO)
europium (Eu) erbium (Er) lanthanum (La) yttrium (Y) lithium (Li)
gadolinium (Gd) thullium (Tm) cerium (Ce) scandium (Sc) cobalt (Co)
terbium (Tb) ytterbium (Yb) praseodymium (Pr) niobium (Nb) graphite (C)
dysprosium (Dy) lutetium (Lu) neodymium (Nd) tantalum (Ta) tungsten (W)
holmium (Ho) promethimium (Pm) beryllium (Be) titanium (Ti)
samarium (Sm) gallium (Ga) zirconium (Zr)
indium (In) hafnium (Hf)
germanium (Ge) antimony (Sb)
Heavy Rare Earths Oxides (HREO) Critical Metals and Special Minerals
Overview of Strategic Metals and Rare Earths
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Impact of globalization on demand and supply of critical metals
• Switch from traditional countries to emerging countries,
led by China, Russia and India
• Anticipated change of global world order
actual: to 2025:
United States China
European Union United States
Japan Russia (CIS countries)
India
• Impact of Islamic countries Iran and Turkey on future political world order
• Impact of historical political tensions (China ↔ Japan; US/Saudi Arabia ↔ Iran)
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China on its way to be the world’s largest economy by 2027
• China member World Trade Organization (WTO) - December 11, 2001
• Passes Japan as the world’s second-largest economy behind the United States
in second quarter of 2010
• Annual economic growth 6.5% - annual consumer growth 10%;
nearly $ 2,000 billion in new consumption by 2021
• In 2013 China launches Belt and Road Project with the intention to spend
roughly $ 150 billion a year in the 68 countries that have signed up the scheme
• In December 2014, China creates Silk Road Fund, an international gold fund of
US$ 40 billion
• China nowadays controls global financial markets
- $ 3,000 billion of monetary reserves
- US$ pegged to Chinese yuan (“dual currency”)
• China also controls majority of global commodity markets
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High-tech revolution 21st century
creates unlimited investment opportunities
► Industrial revolution
► Digital revolution
► Cyber revolution
As well as:
● Climate revolution (transition from fossil fuels to clean energy)
● Consumer revolution (growth of global population, with shift from
development to emerging countries)
● Electric Vehicle revolution (transition from gas and diesel cars to electric cars)
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Electric vehicle (EV) revolution
►China, the largest car maker globally (30% of sales) announced to end production of
gas and diesel cars
►Volvo of Sweden, fully-owned by Zhejiang Gaily of China, to get all its cars electric
from 2019
►In the US, Tesla, as the EV pioneer, plans to begin late 2018 with the production of
its 500,000 Model 3 electric cars annually from its new Fremont giga factory.
►Ford Motor announced commitment to invest $ 4.5 billion to bring 13 new EVs to
its portfolio by 2020.
►General Motors starts with two new, fully electric models in 2018 – than at least 18
more by 2023. Last year GM sold more cars in China (3.6 million) than it did in the
US (3 million)
►Germany’s Volkswagen aims to make up to 3 million EV’s a year by 2025 and
plans to invest more than $ 24 billion EVs by 2030 to challenge Tesla.
►France to ban sales of petrol cars by 2040.
CRU Group estimates electric car sales reach approximately
14.2 million in 2025, up from 0.77million in 2016
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Most valuable lithium-ion battery and cobalt
most essential materials
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► Contract prices for lithium carbonate remain
above US$ 10,000/t after doubling in 2016.
► Market growth rates have lifted from 10% per
annum to over 12% per annum and are
expected to reach over 15% by 2020.
► The key driver for lithium-ion batteries
in personal electronics demand growth has
shifted to electric vehicles
As of 2016, 14 countries participating in EV incentive programs have announced targets
that would require 2.7 million new EVs between 2016 and 2020 and approximately 493,000
tonnes of lithium carbonate equivalent (LCE)
Overview lithium market
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Top 8 lithium producing countries
Latest data of US Geological Survey (USGS) show 12% rise of lithium production
from 2015 to 2016 to 35,000 metric tons (Mt)
Australia 14,300 Mt (+200 Mt from 2015)
Greenbushes Lithium Project, operated by Talison Lithium, a subsidiary jointly
owned by China’s Tianqi Group and Albemarle, is recognized as the longest
operating mining area in Western Australia, having been in production for over 25 years.
Chile 12,000 Mt (+ 1,500 Mt from 2015)
SQM, a top producer in Chile, ramped up production in 2016 by 20%. The Atacama
Salt flat in Chile hosts roughly 37% of the world’s entire lithium production.
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Argentina 5,700 Mt (+ 1,100 Mt from 2015)
Argentina, producing approximately 12% of the world’s lithium, showed the
strongest increase un 2016, up from 3,600 Mt in 2015. The increase was largely
due to a new brine operation.
Bolivia, Chile and Argentina comprise the “Lithum Triangle”, which is home to more than half of
the world’s resources of lithium.
According to Reuters, lithium carbonate production in Argentina will triple by 2019
China 200 Mt (same Mt in 2015)
While production in China is relatively low, it is the largest consumer of lithium,
driven by electronics manufacturing and electric vehicles.
China now gets most of its lithium from Australia, but in 2016 there was a shortage of imports from
Australia to China.
The USGS says that the country’s resources stand at approximately 7 million Mt.
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Change Total shares
1 November 2017 Current Year-end in % issued
2017 2016 H L million local US$
US$ US$ US$ US$ US$
Albemarle Corp. NYSE ALB 140.740 86.080 63 143.69 76.32 110.5 15,551.8 15,551.8
FMC NYSE FMC 90.820 56.560 61 95.08 45.91 134.1 12,179.0 12,179.0
SQM NYSE SQM 61.280 28.650 114 63.80 26.47 120.4 7,378.1 7,378.1
HK$ HK$ HK$ HK$ HK$
Tianqi Lithium HKSE 002466 77.240 32.450 138 87.40 31.20 994.4 76,807.5 9,831.4
Euro Euro Euro Euro Euro
ERAMET Paris ERA:FP 77.55 56.74 37 78.06 36.43 26.6 2,062.8 2,392.9
A$ A$ A$ A$ A$
Galaxy Resources ASX GXY 3.690 2.630 40 3.84 1.50 403.3 1,488.2 1,156.3
Pilbara Minerals ASX PLS 0.850 0.500 70 0.88 0.31 1,616.0 1,373.6 1,067.3
Orocobre ASX ORE 5.500 4.530 21 5.53 2.62 210.9 1,160.0 901.3
Altura Mining ASX AJM 0.390 0.140 179 0.39 0.13 1,751.0 682.9 530.6
Global Geoscience ASX GSC 0.220 0.070 214 0.26 0.05 1,310.0 288.2 223.9
Neometals ASX NMT 0.460 0.340 35 0.46 0.25 543.5 250.0 194.3
Tawana Resources ASX TAW 0.340 0.120 183 0.41 0.08 459.8 156.3 121.5
C$ C$ C$ C$ C$
Lithium Americas TSX LAC 2.000 0.820 144 2.31 0.52 439.9 879.8 681.8
Nemaska Lithium TSX NMX 1.680 1.240 35 1.85 0.95 377.4 634.0 491.4
Critical Elements TSX.V CRE 1.790 0.510 251 1.85 0.47 149.1 266.9 206.8
LSC Lithium TSX.V LSC 1.500 0.422 255 1.77 1.02 134.9 202.4 156.8
Bacanora Minerals TSX.V BCN 1.490 1.010 48 1.75 1.01 132.8 197.9 153.4
Wealth Minerals TSX.V WML 1.920 1.250 54 2.10 0.95 95.3 183.0 141.8
Neo Lithium TSX NLC 1.970 1.060 86 2.16 0.85 90.1 177.5 137.6
Lithium X Energy TSX.V LIX 2.050 2.250 -9 2.37 1.40 85.5 175.3 135.8
Millennial Lithium TSX ML 2.640 1.470 80 2.72 1.20 55.1 145.5 112.7
Advantage Lithium TSX.V AAL 1.030 0.970 6 1.34 0.36 135.1 139.2 107.8
Standard Lithium TSX.V SLL 2.280 0.550 315 2.20 0.30 60.7 138.4 107.3
GBp GBp GBp GBp £
European Metals Holdings AIM EMH 0.760 34.750 -98 1.39 0.53 131.8 100.2 132.2
Overview of listed LITHIUM focused companies (by market capitalization < US 100 million)
Trading symbol Share price 12 months Market cap.
prices million
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Overview cobalt market
The Democratic Republic of Congo (DRC)
produces roughly 60% of total global cobalt
supplies estimated at around 100,000 tonnes this
year.
Canada (6%), Russia (5%), Australia (5%) and
Zambia (4%) are also major producers.
Cobalt is for 96% mined as a by-product of copper
and nickel production.
Inhuman health and safety conditions, including
child labor, may lead to shift in production and
development from DRC to Canada, US and
Australia.
Cru Group estimates that battery sector will need more than 75,000 tonnes of cobalt a year up from 41,000 tonnes this year
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Change Total shares
1 November 2017 Current Year-end in % issued
2017 2016 H L million local US$
C$ C$ C$ C$ C$
Cobalt 27 Capital 1) TSX.V KBLT 9.170 9.000 2 13.20 7.42 24.8 227.4 176.2
eCobalt Solutions TSX.V ECS 1.080 0.540 100 1.48 0.46 131.6 142.1 110.1
Fortune Minerals TSX.V FT 0.195 0.125 56 0.34 0.10 302.1 58.9 45.7
First Cobalt 2) TSX.V FCC 0.740 0.390 90 0.92 0.22 57.5 42.6 33.0
US Cobalt 3) TSX.V USCO 0.640 0.200 220 0.99 0.45 53.6 34.3 26.6
CobalTech Mining 2) TSX.V CSK 0.170 0.240 -29 0.45 0.11 90.5 15.4 11.9
Cruz Cobalt TSX.V CUZ 0.185 0.130 42 0.31 0.11 64.2 11.9 9.2
Lico Energy Metals TSX.V LIC 0.085 0.135 -37 0.24 0.08 132.4 11.3 8.7
Castle Silver Resources TSX.V CSR 0.170 0.070 143 0.30 0.02 56 9.5 7.4
Global Energy Metals 4) TSX.V GEMC 0.125 0.160 -22 0.67 0.10 35.4 4.4 3.4
A$ A$ A$ A$ A$
Ardea Resources 6) ASX ARL 1.390 0.180 672 1.39 0.17 80.7 112.2 87.2
Cobalt One 2+5) ASX CO1 0.130 0.050 160 0.19 0.02 682.0 88.7 68.9
Cobalt Blue Holdings 7) ASX COB 0.230 0.180 28 0.40 0.14 95.0 21.9 17.0
1) name change from Arak Resources - effective 10 April 2017; 1 for 20 shares consolidation as at 23 June 2017
2) signed Definitive Agreement with CobalTech Mining on August 21, 2017 and Letter of Intent to merge with Cobalt One on
June 23, 2017; Cobalt One shareholders will receive 0.145 of a First Cobalt common share for each Cobalt One ordinary
share, representing the equivalent of A$ 0.11 per CO1 share,based on the last trading price (C$ 0.76)
3) name change from Scientific Metals - effective May 25, 2017
4) announced on September 25, 2017 the acquired option from Hammer Metals for the Millennium cobalt-copper project
in the heart of Mt.Isa, Queensland, Australia
5) name change from Equator Resource - effective May 26, 2017; signed Letter of Intent to merge with First Cobalt on
June 23, 2017
January 27, 2017; listed on January 31, 2017
6) subject to joint-venture agreement with Broken Hill Prospecting on Thackeringa cobalt project; closed IPO for more than A$ 10 million on
Overview of listed COBALT focused companies (by market capitalization)
Trading symbol Share price 12 months Market cap.
prices million
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