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GWH Stock: 11 Things to Know as ESS Tech Starts Trading Today

Today, ESS Tech (NYSE:GWH) is the latest special purpose acquisition company (SPAC) initial public offering (IPO) to hit the market. Today, ESS Tech…

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Today, ESS Tech (NYSE:GWH) is the latest special purpose acquisition company (SPAC) initial public offering (IPO) to hit the market. Today, ESS Tech hit the NYSE with a bang. Shares of GWH stock have thus far had an incredible morning, shooting more than 170% higher at the time of writing.

Source: petrmalinak/ShutterStock.com

As with any new IPO, some volatility is to be expected. However, an opening day such as this one is truly remarkable.

Indeed, the business model underpinning ESS Tech is attractive to growth investors. This company focuses on commercializing iron-based battery flow. This allows for long-life energy storage, something in growing demand for renewable energy players.

Given the electrification trends we’ve seen take hold in recent years, investors are starting to think about this secular catalyst in a higher-level manner. By investing in the companies supporting this trend, investors can get long-term exposure to this robust secular catalyst with potentially less risk. In the search for alpha, this is the kind of risk-reward many investors are looking for today.

Let’s dive into a few things investors may want to know about high-flying ESS Tech right now.

Why Is ESS Tech and GWH Stock Soaring?

  • ESS Tech is an Oregon-based provider of an innovative type of battery storage.
  • These batteries are comprised mainly of iron, salt and water.
  • By using readily-available materials for short-term power storage, the company aims to be a more environmentally conscious battery supplier.
  • These batteries store power for between four and 12 hours.
  • Accordingly, these batteries work well for renewable energy sources such as solar and wind.
  • As a result of its reverse SPAC merger with Pangaea Ventures, ESS Tech now trades independently under the ticker “GWH” on the NYSE.
  • ESS Tech raised approximately $308 million as a result of this deal.
  • The company has yet to record revenue.
  • However, ESS Tech aims to uses these funds to ramp up its business.
  • Investors are hopeful ESS Tech will turn a profit in 2023.
  • Bill Gates has backed ESS Tech through an investment from his fund.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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Author: Chris MacDonald

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Base Metals

Why You Shouldn’t Hop on the Tesla Train… and What You Should Do Instead

Yesterday, Hertz Global Holdings Inc. (HTZZ) announced plans to buy 100,000 electric vehicles (EVs) from Tesla.

Investors seized on this unexpected news…

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Yesterday, Hertz Global Holdings Inc. (HTZZ) announced plans to buy 100,000 electric vehicles (EVs) from Tesla.

Investors seized on this unexpected news to boost Tesla’s market cap over the $1 trillion mark. As I write this, the stock price is also still strutting its spectacular trillion-dollar valuation.

“[Hertz’s purchase is] the single-largest purchase ever for electric vehicles… and represents about $4.2 billion of revenue for Tesla,” yesterday’s Yahoo! Finance report read.

Project Mastermind Is Here!

Despite this impressive achievement, I’d caution against making a brand-new investment in Tesla shares.

For all of Tesla’s innovative prowess and creativity, the company cannot escape mundane issues like rising input costs.

Elon Musk admitted as much when he said that Tesla would be hiking its prices for the fifth time this year, “due to major supply-chain price pressure industrywide… Raw materials especially.”

The price of a Model 3 Standard Range Plus, Tesla’s cheapest vehicle, has jumped from $37,000 back in February to $41,990 today.

Surprisingly, that steep 13% price hike may not be enough to compensate for rising input costs. As I have noted previously, the prices of the main metals that make up a battery-electric vehicle (BEV) are soaring. The chart below tells the tale. It shows “back of the envelope” estimates of the raw metal costs of a Model S.

When I created the original version of this chart in February, it showed that the approximate metal costs of a Model S had surged from $2,800 in May 2020 to $4,300.

Since then, that metal input number has jumped another $600 to $4,900 per Model S.

The “Secret Ingredient” Behind My Biggest Stock Picks

That $2,100 year-over-year cost increase may not seem like a big deal for a car that retails for $80,000. But bear in mind that Tesla effectively netted just $1,442 per vehicle last year… and that net profit included regulatory credits equal to $3,160 per vehicle.

Over the next couple of years, Tesla’s income from regulatory credits will probably dwindle to almost nothing. So, if we removed those credits from the income statement and then added in the rising prices of battery metals, Tesla’s approximate $1,442 profit per Model S would flip to a per-vehicle loss of more than $2,300.

In other words, rising metals prices could squeeze Tesla’s margins enough to wipe away the profit completely.

So, sure. Tesla might be a font of creativity, and one cannot deny the appeal of its cars. But when it comes to the best place to put your money… look elsewhere.

Instead, think of it like this: Hertz’s purchase of Tesla’s EVs will certainly pave the way for other such companies to do the same… and directly contributes to the emerging green energy and battery metals megatrends I’ve written about before here.

At the epicenter of both of these trends is copper – and here are a few reasons why:

Flying on Copper’s Wings

The average EV uses almost half as much copper as the average American house. And EVs aren’t the only “green” products that are “metal hogs.”

  • Wind energy uses five to 10 times more copper per unit of electricalenergy than does the conventional burning of coal.
  • Photovoltaic solar power uses six times more copper per unit of electrical energy.
  • A Tesla Model 3 requires 240 pounds of copper, which is nearly four times what a midsized internal combustion vehicle requires.

Therefore, as the renewable energy boom gains momentum, it will produce an echo boom in demand for key battery metals like copper.

Because EVs require large quantities of metals like copper, nickel, lithium, and manganese, mining companies have become the newest heartthrobs of the global auto industry.

The car companies are realizing that if they wish to ramp up EV production, they must secure long-term supplies of the “battery metals” that make their new ecofriendly autos possible.

Mining companies are delighted by the trend – and I have my eye on one of them in Fry’s Investment Report. You can learn how to get access to that play, and the full suite of recommendations that bloom from the other megatrends I’m following, by clicking here.

The post Why You Shouldn’t Hop on the Tesla Train… and What You Should Do Instead appeared first on InvestorPlace.

Author: Eric Fry

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Base Metals

LIG Assets, Inc. (OTCMKTS: LIGA) Powerful Run into Copper Land as Real Estate Developer Goes Pink Current & Reports Record Q3 Revenues

LIG Assets, Inc. (OTCMKTS: LIGA) is making an explosive move up the charts quickly transforming into a volume leader in small caps as it moves into copper…

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LIG Assets, Inc. (OTCMKTS: LIGA) is making an explosive move up the charts quickly transforming into a volume leader in small caps as it moves into copper land. The stock is getting noticed by some big players in small caps and at current levels has plenty of room to grow. Currently under heavy accumulation LIGA is looking to blaze a path along the likes of Enzolytics or Tesoro and break out into a whole new dimension – Tesoro went to multi dollars – LIGA is moving up with power with intraday highs at $0.0117; a break over and its blue skies ahead for LIGA. 

LIGA has been making big moves in recent months going pink current and recently reporting record revenues of $6,585,263 and net income of $ 3,084,656 in Q3, 2021. The Company is also virtually debt free. LIGA recently closed on the sale of Bella Serra for $7,037,549 in an all-cash deal. On August 13 the funds were posted to LIGA’s Bank account. This closing is truly a Landmark event for LIGA, and Management is ready to get to work putting these funds to use. The Company plans to start finishing the projects that are currently in progress and new deals that will soon be announced, including; Sustainable buildings and products, Joint Ventures and Acquisitions that make sense from a revenue standpoint and play a role in the big picture at LIGA, and Livestore/Liveship partnership projects. The stock has momentum, huge liquidity and legions of new shareholders bidding up the price as LIGA makes a powerful move into copper land. 

LIG Assets, Inc. (OTCMKTS: LIGA) is a multi-faceted worldwide investment company that focuses on real estate, media, and the seafood industry. LIG Assets, Inc. in association with Robert Plarr is the emerging “Leader in Green Assets” — focused on exclusive green, renewable energy and sustainable homes, living systems, technologies and components to be utilized in residential and commercial real estate.The company owns 60 acres of land in Brentwood TN and plans to build a hurricane survivable model home in Panama City Beach FL. The company plans to enter the ‘green’ drywall business which is a rapidly expanding market. Wholly owned subsidiary LIG Developments will concentrate specifically on the burgeoning light gauge steel framing industry.  

LIGA Homes unique residential and commercial developments utilize specially designed and manufactured recycled “element resistant” steel framing, in addition to toxic free magnesium oxide building materials and panels that are 100% mold, fungus, termite and rot resistant and fire resistant against temperatures up to 3500 degrees Fahrenheit as well as famed environmentalist Robert Plarr’s exclusive “maximum rated” R-60 insulation — combining to create disaster resistant materials and structures that can withstand up to a 7.5 magnitude earthquake and sustained gale force winds up to 175 MPH while negating damage caused by rain and flood exposure. With the addition of Plarr’s green and renewable systems and products, LIGA Homes is now capable of providing affordable, fully sustainable and disaster resistant living environments – LIGA Homes is at the forefront of this new and improved direction for the green, sustainable and construction sectors. 

To Find out the inside Scoop on LIGA Subscribe to Microcapdaily.com Right Now by entering your Email in the box below

LIGA

Microcapdaily first reported on LIGA on August 30, 2019 stating at the time: “In February LIGA launched the Company’s Joint Venture where the team of LIGA and real estate franchise leader EXIT Realty Elite have negotiated a two-part deal to purchase a beautiful 60.19-acre tract along the hillsides of Brentwood, Tennessee. First phase of the acquisition on Bluff Rd., which officially closed with Smart Title & Escrow, Franklin TN, January on 30, 2018 entails the purchase of 30 acres for the price of $1,000,000 with first option to purchase the remaining 30.19 acres for an additional $1,000,000 within 12 months of the originally executed purchase agreement. The residential subdivision project for the first 30 acres will consist of 42 upscale single-family residences ranging in price from $599,000 to $1,000,000+ with square footage beginning from 2800 square feet and up, bringing the projects gross revenue potential a minimum of $28,000,000 once completed. 

The Company has been making big moves; in August they returned to PINK CURRENT status with OTC Markets. At the same time the Company removed Aric Simons from the BOD and voted in Marvin Baker in as the new Chairman of the Board at LIG Assets to add to his current role of President. LIG also closed on the sale of Bella Serra for $7,037,549 in an all-cash deal. On August 13 the funds were posted to LIGA’s Bank account. This closing is truly a Landmark event for LIGA, and Management is ready to get to work putting these funds to use. The Company plans to start finishing the projects that are currently in progress and new deals that will soon be announced, including; Sustainable buildings and products, Joint Ventures and Acquisitions that make sense from a revenue standpoint and play a role in the big picture at LIGA, and Livestore/Liveship partnership projects. 

Last week the Company hosted the LIGA 2021 – 5th Annual Sustainability Impact Conference at the Buck Lake Ranch. LIG Assets CEO Dakota Forgione, President Marvin Baker, Partner and Renowned Environmentalist Robert Plarr, and various Strategic Partners and Joint Venture partners spoke at the conference.  

For More on LIGA Subscribe Right Now!

LIGA is making an explosive move up the charts quickly transforming into a volume leader in small caps as it moves into copper land. The stock is getting noticed by some big players in small caps and at current levels has plenty of room to grow. Currently under heavy accumulation LIGA is looking to blaze a path along the likes of Enzolytics or Tesoro and break out into a whole new dimension – Tesoro went to multi dollars – LIGA is moving up with power with intraday highs at $0.0117; a break over and its blue skies ahead for LIGA. LIGA has been making big moves in recent months going pink current and recently reporting record revenues of $6,585,263 and net income of $ 3,084,656 in Q3, 2021. The Company is also virtually debt free. LIGA recently closed on the sale of Bella Serra for $7,037,549 in an all-cash deal. On August 13 the funds were posted to LIGA’s Bank account. This closing is truly a Landmark event for LIGA, and Management is ready to get to work putting these funds to use. The Company plans to start finishing the projects that are currently in progress and new deals that will soon be announced, including; Sustainable buildings and products, Joint Ventures and Acquisitions that make sense from a revenue standpoint and play a role in the big picture at LIGA, and Livestore/Liveship partnership projects. The stock has momentum, huge liquidity and legions of new shareholders bidding up the price as LIGA makes a powerful move into copper land. We will be updating on LIGA when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with LIGA.

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Disclosure: we hold no position in LIGA either long or short and we have not been compensated for this article.

The post LIG Assets, Inc. (OTCMKTS: LIGA) Powerful Run into Copper Land as Real Estate Developer Goes Pink Current & Reports Record Q3 Revenues first appeared on Micro Cap Daily.



Author: Boe Rimes

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Energy & Critical Metals

Explorers and Developers Targeting Cobalt Projects

By Ellsworth Dickson Historically, the metal cobalt was a by-product of mines that were mainly…

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By Ellsworth Dickson

Historically, the metal cobalt was a by-product of mines that were mainly concerned with other metals, for example, silver. That was the case for the1903 silver rush around the Town of Cobalt in northeastern Ontario. The hundreds of veins in the camp featured high-grade silver values accompanied by several cobalt minerals.

The silver rush was slow to get started but by 1906 there were 263 mining companies in the Cobalt district. Many famous mines were built such as the Coniagas, Nipissing 407, Agaunico, Silverfields, O’Brien, Glen Lake Mines, Deer Horn Mines, Agnico, Temiskaming, Trethaway, Hi-Ho, Cart Lake and more.

Silver mining continued into the 1980s with cobalt still of secondary interest. The Cobalt area mines lay dormant until about 2017 when the rising price of cobalt resulted in a staking rush with both cobalt and silver of interest. Since 2017, there have been a number of activities in the Cobalt camp – exploration and drill programs, staking, new discoveries, consolidations, changes of plans, and so on. The initial fever has naturally given way to people in it for the long haul. (more later on)

Cobalt is used to make superalloys, high-temperature alloys, cutting tools, magnetic materials, petrochemical catalysts, pharmaceuticals, steels and glaze materials. Back in the 1990s, only 1% of cobalt demand was from its use in rechargeable batteries.

Today, the cobalt market is largely being driven by “new economy” drivers, including lithium-ion batteries, consumer electronics, Electric Vehicles (EVs) and Energy Storage Systems (ESS) that are the dominant uses for lithium-ion batteries, representing 64% of cobalt demand in 2020.

Various world governments have actually mandated the manufacture of EVs and the tapering off of internal combustion engines, resulting in an EV sales growth forecast of 30%. Consequences of the COVID virus have sometimes affected the cobalt marker but that will eventually end. Cobalt is currently trading at US$24.03 per pound, up about 57% from a year ago. Consequently, cobalt explorers and developers have targeted projects in various locales around the world.

Cobalt, being a fairly rare metal, means that there are not that many cobalt projects or mines – either as a primary commodity or as a secondary product, usually with copper, nickel or silver Cobalt is not like, say, the gold or copper sector that generates many projects and mines.

Commodity trader and miner Glencore Plc [GLEN-LSE] recently said it will restart operations at the world’s largest cobalt mine, Mutanda in southeast Democratic Republic of Congo (DRC), towards the end of this year and return to production in 2022.

The DRC (Kinshasa) continues to be the world’s leading source of mined cobalt, supplying approximately 70% of global mine production. The use of child labour at artisanal mines is a big problem.

According to the United States Geological Survey, 2020 mine production was DRC: 95,000 tonnes; Russia: 6,300 tonnes; Philippines: 4,700 tonnes; Canada: 3,200 tonnes; China: 2,300 tonnes; U.S.: 600 tonnes; and Australia: 5,700 tonnes. In 2020, total global production in 2020 was 140,000 tonnes with world reserves pegged at 7.1 million tonnes.

The 2021 diamond drilling program at the Fortune Minerals NICO Project, NWT.

Thanks to the burgeoning EV industry, cobalt demand is expected to steadily increase as manufacturing ramps up which bodes well for the cobalt sector.

Besides northeastern Ontario, there are not a great number of other cobalt projects in North America. One company that stands out is Fortune Minerals Limited [FT-TSX] that has attracted investor interest because its flagship NICO project in Canada’s Northwest Territories that is one of the most advanced cobalt development assets outside the Democratic Republic of Congo (DRC).

Fortune is one of only a handful of global companies that could emerge as a possible supplier of “ethical cobalt” to consumers seeking an alternative to the DRC, currently the source of over 60% of the world’s production.

Amnesty International has warned electric car companies to seek out alternatives to the DRC, which is well known for its mineral wealth, but also civil wars and corruption.

However, Fortune is more than just a play on cobalt. The unique metal assemblage of the NICO deposit includes open pit and underground proven and probable reserves of 33 million tonnes, containing 1.1 million ounces of gold, 82 million pounds of cobalt, 102 million pounds of bismuth, and 27 million pounds of copper.

According to a 2014 feasibility study and recent optimizations, that material could support average annual production for the first 14 years of a 20-year mine life (2020 mine plan), including 1,800 tonnes per year of cobalt in battery grade cobalt sulphate, 47,000 ounces per year of gold in doré bars, 1,700 tonnes per year of bismuth in ingots and oxide and 300 tonnes per year of copper in cement precipitate.

The study suggest that ore can be extracted from a proposed open pit and underground mine and mill that will produce a bulk concentrate for shipment to a refinery that the company plans to construct in southern Canada.

The products that would be produced at the proposed refinery include cobalt chemicals used to make high performance rechargeable batteries, bismuth metals and chemicals, as well as gold.

It is worth noting that the company has received environmental assessment approval and key permits to construct and operate the NICO mine and concentrator in the Northwest Territories.

Fortune also owns the satellite Sue-Dianne copper-silver-gold deposit, located 25 kilometres north of the NICO mine site and other exploration projects in the Northwest Territories, and maintains the right to repurchase the Arctos anthracite coal deposits in northwest British Columbia that were previously bought by a British Columbia Crown corporation.

A helicopter prepares a diamond drill pad at the Fortune Minerals NICO Project, NWT.

Fortune sees Sue-Dianne as a potential future source of incremental mill feed that could extend the life of a NICO mill and concentrator

Sue-Dianne hosts an indicated resource of 8.4 million tonnes grading 0.80% copper, 3.2 g/t silver and 0.07 g/t gold. On top of that is an inferred resource of 1.62 million tonnes of grade 0.79% coper, 2.4 g/t silver and 0.07 g/t gold.

“Cobalt has a critical role in the accelerating transition to e-mobility, and advanced assets like our NICO Project are needed to help satisfy the growing demand and diversify the supply chain,” said Fortune President and CEO Robin Goad.

The NICO project is located 160 kilometres northwest of Yellowknife and 50 kilometres north of Whati, a First Nations community in the North Slave region

Due to the remote location, the Tlicho Highway, under construction for the NWT government, is a key enabler for the NICO development and is nearing completion and expected to open to the public later this year. The $213 million, 97-kilometre all-season road to the community of Whati, together with the spur road that Fortune plans to construct, will allow metal concentrates to be trucked from the mine to the rail head at Hay River or Enterprise, NWT for railway delivery to the company’s planned hydrometallurgical refinery.

Fortune has talked about a total project cost of around $775 million. But the focus now is on various optimizations and refinery sites aimed at delivering a more financially robust project compared to the one envisaged in the 2014 feasibility study.

In keeping with that effort, Fortune recently launched a 3,000-metre drill program to test for a potential expansion of the NICO deposit at the east end of the deposit. It said exploration crews will also test up to four additional targets defined by previous geology and geophysics programs.

Fortune recently raised almost $542,000 from a private placement offering of 3.9 million issued that were issued at 14 cents per unit. It also received a grant of $144,000 from the Government of the NWT.

On October 22, 2021, Fortune shares were trading at $0.13 in a 52-week range of 27 cents and $0.06, leaving the company with a market cap of $47.58 million based on 366 million shares outstanding.

Other companies within the cobalt mining space worth mentioning include:

Canada Silver Cobalt Works Inc. [CCW-TSXV; CCWOF-OTC] recently reported high-grade cobalt assays from its Castle East discovery located 1.5 km from its 100%-owned, past-producing Castle Mine near Gowganda in the silver-cobalt district northeast of the Town of Cobalt where the company has completed 42,000 metres of a 60,000-metre drill program aimed at significantly increasing its 43-101 resource estimate. Canada Silver Cobalt Works recently discovered a major high-grade silver vein system at Castle East. The company also has a pilot plant and processing facility.

Kuya Silver Corp. [KUYA-CSE] has given notice of intention to exercise an option to earn a 70% interest in all of First Cobalt Corp.’s [FCC-TSXV; FTSSF-OTCQX] remaining mineral rights in the Cobalt camp. Kuya previously acquired a 100% interest in a property package surrounding the Kerr Lake area for $4-million.

First Cobalt owns a hydrometallurgical cobalt refinery in the Town of Cobalt. The refinery has the potential to produce either a cobalt sulfate for the lithium-ion battery market or cobalt metal for the North American aerospace industry or other industrial and military applications.

With permits and building infrastructure already in place, the First Cobalt Refinery will be operational as early as 2022. Once operational, the Refinery will produce 25,000 tonnes of battery-grade cobalt sulfate per annum, representing more than 5 per cent of all cobalt produced around the world.

Cruz Battery Metals Corp. [CRUZ-CSE; BKTPF-OTC; A2DMG8], formerly Cruz Cobalt Corp., completed a three-hole, 837-metre diamond drill campaign at the Hector Silver-Cobalt property. The company is a large mineral land holder in the Cobalt area and also includes the Bucke, Coleman, Johnson and Lorraine prospects.

Fuse Cobalt Inc. [FUSE-TSXV; FUSEF-OTC; 43W3-FSE], formerly Lico Energy Metals, recently reported that the government of Ontario announced a joint $10-million investment in the First Cobalt refinery in Cobalt Ontario. Significantly, this refinery is located approximately 1,500 metres west of the company’s cobalt exploration property. Fuse holds the Teledyne Cobalt property in Bucke and Lorrain Townships as well as the Glencore Bucke property located on the west boundary of the Teledyne property.

Brixton Metals Corp. [BBB-TSXV; BBBXF-OTCQB] has 100% interests in the Langis-Hudbay silver-cobalt project near the Town of Cobalt. The Langis Mine produced 10.4 Moz silver at 25 oz/ton and 358,340 lbs of cobalt between 1908 and 1989. Between 1903 and 1953 the Hudson Mine produced 4 million ounces of silver and 185,570 lbs cobalt.

iMetal Resources Inc. [IMR-TSXV; ADTFF-OTC] reported grab sample values of 67.9, 29.6 and 11.3 g/t gold from its flagship Gowganda West property.

The Eagle mine of Lundin Mining Corp. [LUN-TSX; LUNMF-OTC; LUMI-Sweden] in Michigan produces a cobalt-bearing nickel concentrate.

Jervois Global Ltd. [JRV-TSXV, ASX; JRVMF-OTC] is constructing the Idaho cobalt project (ICP) about 40 km from Salmon, east-central Idaho. It is a primary cobalt deposit with production estimates of 1,200 tons per day of super-alloy grade high-purity cobalt metal over a 7-year mine life.

The company has committed more than US$30-million toward equipment, materials and labour costs, both on-site and for detailed engineering. Construction, procurement and engineering schedule is on time with plan and commissioning of the mine expected from mid-2022. Currently, underground construction has commenced.

The company said that this historic step marks the first time in decades that the United States will have a primary cobalt mine within its borders.

Bryce Croker, CEO of Jervois, said, “Cobalt is a crucially important material for both defense and civilian applications. The electrification of the United States and global transportation sectors are currently and expected to continue driving exceptional cobalt demand growth.”

Some analysts are predicting a 17% increase in cobalt demand this year over 2020 and even more demand in the future due to the electrification of the world’s vehicle fleet. For example, the Ford Motor Company [F-NYSE] recently announced a US$11 billion investment to build electric vehicles in Tennessee and Kentucky, creating 11,000 new jobs. News doesn’t get much better than that.

 

fortune minerals limited

Author: Resource World

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