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Aluminum Tops $3,000 For First Time Since 2008 On Supply Woes

Aluminum Tops $3,000 For First Time Since 2008 On Supply Woes

Aluminum prices on the London Metal Exchange hit a 13-year high Monday, extending…

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This article was originally published by Zero Hedge
Aluminum Tops $3,000 For First Time Since 2008 On Supply Woes

Aluminum prices on the London Metal Exchange hit a 13-year high Monday, extending a year-long vertical ramp amid supply risks in Guinea and alumina refining woes in China and Europe. 

The benchmark contract on the LME climbed nearly 1%, touching its highest level since 2008 at $3,000 per ton. Prices have jumped 50% this year and 15% in the last three weeks. 

Aluminum prices have been supported by production curbs in Chinese smelting regions, often to alleviate the strain on the power grid. The latest price surge comes from a military coup in Guinea last Monday sparked concerns over the supply of bauxite, a sedimentary rock with high aluminum content.

A stream of announcements from China has been about challenges faced by smelters. On Monday, Steelhome reported that Yunnan would limit smelter capacity to reduce energy. Smelters in the European Union are also facing pressure with record-high power costs.  

"In China and increasingly in the EU, policy risk to aluminum supply is growing," Goldman Sachs' analysts Jeff Curri told clients in a note Monday. He is not worried about the coup in Guinea affecting the bauxite supply just yet and says upside risks persist due to further logistical bottlenecks. 

Another factor boosting prices is dwindling exchange stockpiles and strong demand. LME warehouses report aluminum inventories have plunged 33% since March to 1.3 million tons, and stocks in Shanghai Futures Exchange plummeted 42% to 228,529 tons since April. 

The metal has wide applications in everything from car pates, appliances, defense weapons, airplanes, and even the soda can, has faced strong demand since the pandemic after global central banks and governments unleashed trillions of dollars in stimulus. Goldman Curri recently told clients:

"As demand improves seasonally from September, aided by reduced lockdown effects and some probable supportive policy adjustments, we expect continued tightness onshore into Q4 and support for higher import volumes of refined metal. This fundamental setup will offer support for a trend higher in both copper and aluminum prices in particular."

Another tailwind for Bloomberg Industrial Metals Index, already at a decade high, could be the troughing of China's credit impulse

Tyler Durden Mon, 09/13/2021 - 20:00

Base Metals

Hot Penny Stocks to Buy Now? 3 to Watch For a Market Rebound

Making a penny stock watchlist right now? Here’s three small-caps to check out
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3 Penny Stocks to Add to Your Watchlist Right Now 

After the less than stellar trading session yesterday, many penny stocks investors are eager for a market rebound. But, to take advantage of a bullish turnaround, investors need to have a thorough understanding of what the market is doing right now, and how to trade penny stocks. These are the best ways to ensure that you have the greatest chance of finding potentially profitable penny stocks to buy

Right now, the largest impactor on the stock market is Covid. And while the pandemic itself is impacting the stock market, the ramifications of Covid such as inflation, stimulus, geopolitical issues, and more, are all contributing as well. This means that investors need to stay ahead and work to find out as much information about the market as possible. 

[Read More] Making Money With Penny Stocks During a Stock Market Crash

Any great investor will tell you that having research by your side will keep you informed and ahead of the game. And with penny stocks specifically, momentum is more often than not, driven by news or external factors. This is also known as speculation and is the driving force behind penny stocks’ movements. So, considering all of this, let’s take a look at three penny stocks to add to your watchlist right now. 

3 Penny For Your Watchlist in September 2021 

  1. Seanergy Maritime Holdings Corp. (NASDAQ: SHIP
  2. 1847 Goedeker Inc. (NYSE: GOED
  3. Alset EHome International Inc. (NASDAQ: AEI

Seanergy Maritime Holdings Corp. (NASDAQ: SHIP)

Seanergy Maritime Holdings Corp. is a penny stock that has climbed in value by almost 20% in the past month or so. If you’re not familiar, Seanergy is a company that transports dry bulk commodities by sea, such as iron ore and coal. As of February 19th, the company had 11 Capesize vessels that can carry 1,926,117 combined deadweight tons. Since February when the report was released, the number of vessels Seanergy has is substantially greater.

On September 8th, the company took delivery of its 17th Capesize M/V Worldship. This period charter will commence immediately. It has already entered a time charter with an existing charterer at a gross fixed rate of $31,750 per day for 12 to 16 months from the delivery. This vessel was purchased with cash on hand, and the company is in talks with a leading bank to finance some of the acquisition cost.

“I am pleased to announce the addition of the seventeenth Capesize vessel to our fleet and the concurrent commencement of her period employment. Including this delivery and the sale of the M/V Leadership, 94% percent of our fleet is employed under period time charters, 87% of which are index-linked T/Cs. This allows us to fully utilize our fleet in order to capitalize on the robust market rates.”

CEO of Seanergy, Stamatis Tsantanis

In other recent news, Seanergy just presented at multiple conferences such as the 20th Annual Marine Money Week Asia. Keeping this in mind, will SHIP stock be on your watchlist?

1847 Goedeker Inc. (NYSE: GOED)

1847 Goedeker Inc. is an e-commerce company that sells a large variety of products. The products that Goedeker sells include fitness equipment, televisions, patio furniture, and many other home appliances. In addition to the sale of these products, 1847 Goedeker provides installation services and old appliance removal services for its products. In the past month, shares of GOED stock have climbed by almost 20% which is quite substantial. 

[Read More] Are Biotech Penny Stocks Worth Buying? Check These 3 Out

On August 31st, the company announced a CEO transition and steps to strengthen its leadership. The co-founder of Appliances Connection, Albert Fouerti, has been appointed CEO of 1847 Goedeker. The company also appointed capital markets veteran and meaningful stockholder Ellery W. Roberts as executive chairman. With this, it now has established a strategic planning committee to help further accelerate its growth.

“Now that Goedeker has completed the acquisition of Appliances Connection, we are well-positioned to begin aggressively scaling and pursuing market leadership. We have a clear strategy that is grounded in providing customers unmatched selection, competitive pricing, dependable and fast shipping, and a seamless online shopping experience.”

Albert Foerti, CEO of 1847 Goedker

As a result of this announcement, GOED stock has continued to climb in several recent trading sessions. The company’s stock price is at $2.95 per share as of September 21st. With all of this in mind, will GOED stock make your penny stocks watchlist in September?


Alset EHome International Inc. (NASDAQ: AEI)

Alset EHome International Inc. is a property development company that is based in the United States. This company not only develops property but also engages in biohealth activities and digital transformation technology. When it comes to property development, it offers home building, sales, rental, property management, and more. For digital technology, it designs apps for enterprise messaging and e-commerce software platforms. In regards to biohealth, it researches nutritional chemistry to create a natural sugar alternative as well as products that slow the spread of disease.

On September 9th, Alset’s subsidiary American Pacific Bancorp received a $40 million investment from Document Security Systems Inc. (NYSE: DSS). American Pacific Bancorp will issue 6,666,700 shares of common stock at $6 per share to reach the total purchase price. DSS has now acquired more than 50% of ABP’s outstanding shares of common stock and is now the majority owner of the company.

CEO of DSS Frank D. Heuszel said, “This investment represents a strong validation of APB’s business model, and this fresh injection of funds should significantly improve APB’s ability to execute its plans on an expedited basis.” This announcement caused AEI stock to climb substantially in the market. AEI stock’s volume is much higher than its market average at the moment. With all of this in mind, is AEI making your list of penny stocks to watch?


Are Penny Stocks Worth Buying Right Now?

Finding the best penny stocks to buy in 2021 can be challenging. But, with so much going on in the stock market right now, there is a lot of momentum to take advantage of.

[Read More] Best Penny Stocks To Buy Today? Retail Traders Are Watching These Now

Considering that Covid cases are beginning to decline in some areas of the country, many investors are hopeful about the future. But, it is always important to keep your investing strategy on hand no matter what the market conditions are. With all of this in mind, do you think that penny stocks are worth buying right now?

The post Hot Penny Stocks to Buy Now? 3 to Watch For a Market Rebound appeared first on Penny Stocks to Buy, Picks, News and Information |

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Monsters of Rock: New Hope turns to profit as coal miners remain buoyant

Timing is, as they say, everything. Coal miner New Hope Corporation’s financial reporting period is one example of that. While … Read More
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Timing is, as they say, everything.

Coal miner New Hope Corporation’s financial reporting period is one example of that. While most companies go by calendar or financial year, New Hope (ASX:NHC) reports from August to July.

That allowed it to soak up some of the coal bull market which has driven domestic price in China up by the hour to as high as US$670/t.

Australian producers are locked out of China at the moment due to the less-than-friendly relationship between our governments and their ability to (painstakingly) source supply from elsewhere.

Premium hard coking coal out of Australia is still up at historic highs of US$385/t though, with thermal and lower quality coking coal also generating consistently good gross margins.

While many Aussie coal miners still booked losses for FY21 while using their commentary to celebrate bullish market conditions of the 2022 financial year, New Hope gets the best of both worlds.

Thermal coal prices have risen sharply as well. Pic: New Hope Corporation


Production down, profits up for New Hope

New Hope’s production fell at its east coast coal assets from 11.3Mt in 2020 to just 9.6Mt in 2021, but saw its underlying EBITDA soar by 78% from $290 million to $367 million.

It swung from a $157 million loss to a net profit after tax of $79 million, backing a final dividend payment of 7c and a full year dividend total of 11c a share.

CEO Reinhold Schmidt said both improved prices for thermal coal and cost discipline underpinned the final result.

“The Newcastle 6000 Index hit 10 year highs by financial year end rapidly recovering from the depressed market conditions experienced at the start of the financial year. The Company achieved an average realised price of $101.36/t in 2021. At 31 July 2021, the Newcastle 6000 Index had almost doubled from January 2021 levels, to USD$150 per tonne, and has continued to trend upwards,” he said.

“The Company also benefited from reduced underlying Free on Board cash costs of $63.70 as a result of cost savings implemented at both Bengalla and New Acland, and the rationalisation of the Brisbane corporate office.”

New Hope’s realised prices doubled from the first quarter to the final quarter of the year, when it sold coal at an average of ~US$120/t, prices that would be mild by today’s standards, even for thermal coal.


New Hope Corporation share price today:



Is a correction coming in coal prices?

It is a largely accepted narrative that China’s ban on Australian coal has played a big role in the meltdown of its supply chain.

The trade between the nations was the sun around which the solar system of the met coal trade revolved, as BHP famously says, and the removal of 24mt of imports from Australia left China 16Mt short year on year.

The redirection of Australian rock elsewhere has seen China lean on its decrepit domestic mines, production from across the inland border in Mongolia and the US, Russia and Canada.

US, Russian and Canadian mines don’t export enough to satisfy China’s hungry steel and energy sectors, and Mongolian product has been hamstrung by Covid restrictions.

According to UBS, China’s imports are down around 16Mt year on year, leaving it well short of requirements and fuelling a squeeze on supplies.

But as we’ve seen in iron ore, what goes up must come down at some point.

“We expect met-coal prices in China to turn down before end-2021 with demand weakening and supply lifting; average met-coal prices are however set to remain elevated in 2022, averaging ~US$190/t (broadly flat y/y) as inventories are low and trade tensions between Australia & China are unlikely to ease near-term,” UBS analysts led by Myles Allsop said.


Will steel cuts come for coal too?

Steel production cuts and concerns around China’s struggling and debt-laden property sector that have hit iron ore could strike the end market for coal as well.

“We expect China steel output (and pig iron production) to slow into 2022 against a less favourable economic backdrop; there are also increasing signs that major China steel mills plan to cut output in 2H21 to achieve the central government’s directive of keeping annual production unchanged vs 2020,” UBS said.

“To this extent we have noted a sharp slowdown in crude steel and pig iron output so far in 3Q21.”

Higher prices could also bring supply on in China despite efforts to curb production due to safety concerns and pollution crackdowns.

“Given how elevated prices are, we expect met-coal supply to lift in China domestically over the coming months. This, combined with weaker pig iron production / met-coal demand and some alleviation in the power shortage, is likely to trigger a correction in China domestic prices from current record levels,” the analysts noted.

“The magnitude of the supply response in China may however be capped by 1) government control and 2) geological resource.

“Further, low coal inventories and the decline in the iron ore price may allow for increased tolerance of higher coal prices over the next 6 months.

“Outside China, we expect supply to lift in Australia with BHP able to lift production if prices stay high and Anglo to normalise supply/ debottleneck the Moranbah & Grosvenor complex.”


What happened on the markets?

The iron ore price feel even further overnight in the direction of US$90/t, but investors laid off the selling after yesterday’s $50 billion bloodbath.

Singapore iron ore futures were also largely unchanged.

BHP (ASX:BHP), Rio (ASX:RIO) and FMG (ASX:FMG) all held around yesterday’s trading levels and the ASX 200 Materials sector was up slightly.

Champion Iron (ASX:CIA), a pick from Tribeca Investment Partners head of research Todd Warren for when the iron ore price bottoms out, was one of the most productive mid caps.

$2.3 billion-capped Champion, which runs the Bloom Lake mine in Canada, was up more than 4% at 3.50AEST.

$2.8b rated Whitehaven Coal (ASX:WHC) also returned to winning ways with a similar gain.


Champion Iron and Whitehaven Coal share prices today:


The post Monsters of Rock: New Hope turns to profit as coal miners remain buoyant appeared first on Stockhead.

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Sultan Resources ready for 1000m drill program at Razorback Ridge

Special Report: Sultan Resources will get stuck into drilling at its high quality Razorback Ridge target in the East Lachlan … Read More
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Sultan Resources will get stuck into drilling at its high quality Razorback Ridge target in the East Lachlan Fold Belt in New South Wales.

The skarn-like gold copper target has returned a series of intriguing rock chip samples for Sultan (ASX:SLZ) across a 1km long structure, with a 1000m diamond drill program consisting of nine holes at three drill sites planned to test beneath the surface.

Soil sampling has defined a large gold and copper anomaly covering some 1500m by 200m abutting its Big Hill porphyry target.

Previous results from rock chips include:

  • 0.98g/t Au & 2.65% Cu
  • 0.55g/t Au & 2.24% Cu
  • 0.62g/t Au & 2.42% Cu
  • 0.64g/t Au & 2.00% Cu
  • 0.99g/t Au & 2.09% Cu
  • 1.12g/t Au & 0.1% Cu
  • 1.69g/t Au & 0.09% Cu
  • 1.14g/t Au & 0.1% Cu, and;
  • 2.25g/t Au & 0.07% Cu.

Razorback Ridge outcrops missed by old timers

While Razorback Ridge is marked by a north-northeast striking zone of outcropping skarn-style mineralisation that is exposed for over 1km in a copper rich district hosting some major mines, it was unrecognised by previous explorers.

Hosted in quartz sulphide vein breccias showing quartz – Fe carbonate – chlorite – sulphide – hematite +/- magnetite altered limestone and chlorite altered mafic volcanics, the mineralised outcrop is strongly coincident with a prominent north-south striking linear magnetic feature.

Sultan is especially excited about rock chip results of up to 2.25g/t Au and up to 2.65% Cu that have been returned from outcrops.

Drilling at Razorback Ridge will be relatively shallow at first and is designed to provide structural orientation, before follow-up holes target the structure at depth.

Sultan says it will use an environmentally friendly track-mounted drill rig and comply with all COVIDSafe requirements during the drilling program, which is due to start in mid-October with all regulatory approvals, landowner compensation agreements and drill contracts finalised.

It adds to the prospectivity of the Big Hill porphyry prospect, where Sultan says three recently drilled holes returned elevated copper and pathfinder elements in zones of porphyry-style alteration.

Those results strengthened the prospectivity of the area to host a porphyry system similar in geological style to Newcrest’s nearby Cadia gold mine, the largest in Australia.

Sultan’s projects are in the vicinity of some absolute monsters. Pic: Sultan Resources

Big Hill drilling picks up positive pathfinders

Drilling is yet to hit the mother lode at Big Hill, but assays from the first three drill holes put into the porphyry target have given confidence it bears similar pathfinders to the 50Moz Cadia-Ridgway mine.

“The results show elevated responses in a number of important elements at levels that are consistent with the interpretation that the drilling has intersected the distal alteration halo of a potential alkalic porphyry system,” Sultan said.

“The average copper throughout the altered volcaniclastic units across all three holes is approximately 100ppm Cu and up to 385ppm Cu locally.”

At Cadia, about 50km south of Big Hill, Sultan says those pathfinders and copper rich anomalies are found a couple hundred metres from high grade gold and copper mineralisation.

“Future step out drilling at Big Hill will aim to map an increase in distribution and intensity of the characteristic ‘reddened’ inner propylitic alteration zones to allow vectoring to the potential high grade Au-Cu porphyry core. Current drilling is likely to be >200m from an intrusive centre based on the Ridgeway model,” the company said.




This article was developed in collaboration with Sultan Resources, a Stockhead advertiser at the time of publishing.


This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post Sultan Resources ready for 1000m drill program at Razorback Ridge appeared first on Stockhead.

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