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Energy & Critical Metals

Battery Mineral Resources Offers Excellent Exposure and Potential Upside to the Global Electrification Trend

Battery Mineral Resources CEO Martin Kostuik talks about BMR as a great platform for investors to be part of the green revolution.

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This article was originally published by Investing News Network

Battery Mineral Resources (TSXV:BMR) CEO Martin Kostuik was featured on the YouTube channel Jay Martin, Cambridge House. In the video interview, Kostuik said investors can look at Battery Mineral Resources (BMR) as a great venue for exposure to a global mega electrification trend. 

Kostuik explained that BMR is an opportunity for exposure into the battery mineral space acknowledging the growing trend of green energy revolution highlighting the use of batteries as power storage for utilities and electric vehicles. 

“We’re a brand new company and maybe undervalued but we have a great team with a tremendous amount of experience. Within the company, everybody’s driven towards providing value to the shareholders through excellent exposure and potential upside to this global electrification trend,” said Kostuik. 

BMR recently announced encouraging initial drill core assay results from the 2021 exploration and in-fill drill program at the Punitaqui mine complex in Chile. Punitaqui is a recently producing copper and gold mine which is slated for resumption of production in mid-2022.

“This mine is a great asset for us and a great platform to build. This is our potential foray into near-term cash flow. We’re headed towards positive cash flow with the onset of reintroducing a production scenario at Punitaqui in Chile,” added Kostuik. 

Watch the full video interview of Battery Mineral Resources (TSXV:BMR) CEO Martin Kostuik here.

The post Battery Mineral Resources Offers Excellent Exposure and Potential Upside to the Global Electrification Trend appeared first on Investing News Network.

Energy & Critical Metals

Why The Solar Industry Is the Inevitable Future of Earth’s Energy

There was a point in time when the solar industry was considered dead money.

Source: Diyana Dimitrova / Shutterstock.com

It was too expensive, too…

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There was a point in time when the solar industry was considered dead money.

Source: Diyana Dimitrova / Shutterstock.com

It was too expensive, too inefficient, and too inconsistent to be a viable alternative energy source for really anything, let alone your home or office.

But those days are long gone.

Today, solar represents the inevitable future of our planet’s energy needs because it’s cheap, efficient, consistent, and most importantly, clean.

Solar energy costs have dropped more than 70% over the past 10 years, and are now cheaper than fossil fuels in most parts of the United States. Indeed, the International Energy Agency said in 2020 that solar is the now the cheapest energy in history. Let that sink in for a moment.

Better yet, the drivers of these cost declines — economies of scale and technological improvements powered by Moore’s Law and Wright’s Law — are durable, and therefore, solar is only going to get even cheaper. Indeed, these forces are so powerful in the solar industry that they have their own law — Swanson’s Law — which states that the price of solar modules decreases by about 20% for every doubling in global solar capacity.

For what it’s worth, the U.S. Department of Energy believes solar costs can and will fall by another 60% into 2030.

So, solar is the cheapest way to power things today.

Meanwhile, solar panels have become very efficient at converting light from the sun into usable energy. Back in 1992, researchers at the University of South Florida fabricated a thin-film solar cell with 15.9% efficiency — and that was considered a breakthrough at the time.

These days, though, your average silicon solar cells sport efficiency rates north of 20%. That’s standard. And manufacturers have created prototypes that are getting 30% efficiency, while some research efforts have even managed to achieve near 50% efficiency in certain lab tests.

In other words, the theoretical best solar cells of the 1990s are substantially worse than your run-of-the-mill solar panels today, and there is a pathway here for solar efficiency to more than double over the next few years.

So, solar is also the most efficient way to power things today.

At the same time, these solar systems have become dramatically more consistent. One of the biggest hurdles for solar in the early 2000s was its intermittency — the sun doesn’t shine every day, so what do you do when its cloudy?

Well, that’s why the clean energy industry has developed energy storage solutions, which are basically just big batteries that homeowners and office building managers can install on-site and link to their solar panels to store excess solar power on super sunny days, and deploy that power on cloudy days.

By 2025, more than a quarter of all solar energy systems will be paired with a storage solution.

So, solar is now also the most consistent way to power things.

Cheapest. Most efficient. Most consistent. That’s a powerful combination. No wonder solar has accounted for 58% of all new energy capacity additions so far in 2021. Back in 2010, that number stood at just 4%, so we’ve come a long way in 10 years.

Source: SEIA

But don’t be fooled — we still have a long way to go.

Solar energy only accounts for about 4% of total energy generation capacity in the U.S. today. President Joe Biden wants to increase that number to over 40% by the 2030s — a plan that would include installing 30 gigawatts (GW) of new solar capacity every year into 2025, and 60 GW of capacity every year from 2025 to 2030.

For perspective, the U.S. installed just under 20 GW of new solar capacity in 2020, and that was a record-breaking year.

Is that aggressive plan really achievable?

Absolutely. Solar costs are plummeting. Solar efficiency rates are soaring. And the efficacy of energy storage solutions is growing.

In other words, the three drivers of solar going from 4% of new energy additions in 2010, to 58% of new additions in 2021, are only going to get stronger and more vigorous over the next 10 years — to a point where, by 2030, I wouldn’t be surprised to see solar accounting for 90%+ of all new energy capacity additions.

Needless to say, you need to be invested in solar stocks today.

But there are so many options out there. The Invesco Solar ETF (TAN), for example, has 55 holdings.

Not all 55 of those stocks will be enormous winners in the solar revolution — only a handful of them will turn into 100%-plus winners.

To help you identify that handful of solar stock winners, there’s the Daily 10X Stock Report — my ultra-exclusive investment advisory where I share with you one potential 10X stock pick every single day the market is open.

Of course, as part of the 10X upside potential mandate, I’m only unveiling the best of the best hypergrowth stocks to you — and that includes the best of the best solar stocks.

So, if you’re looking to invest only in the best solar stocks for 10X gains, The Daily 10X Stock Report may be just the product for you.

Click here to learn more.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

The post Why The Solar Industry Is the Inevitable Future of Earth’s Energy appeared first on InvestorPlace.

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Energy & Critical Metals

Arrival EV Stock: Getting Closer to Revenue

There have been some interesting companies that have listed in 2021 through a SPAC business combination. Further, there has been no dearth of companies…

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There have been some interesting companies that have listed in 2021 through a SPAC business combination. Further, there has been no dearth of companies that have listed in the electric vehicle industry.

Arrival (ARVL) seems like an attractive company in the commercial electric vehicle industry. After listing at $22.8 in March 2021, ARVL stock has been in a downtrend. The stock bottomed out at $10.40 last month and currently trades at $13.03. (See ARVL stock charts on TipRanks)

Considering the addressable market and its business developments, ARVL stock seems positioned for further upside. I am bullish on the stock as the commercial electric vehicle market growth gains traction.

As an overview, Arrival has a diversified vehicle portfolio with an electric bus, electric van and large electric van in the pipeline. By the company’s own estimates, the total addressable market for vans is $280 billion. Further, electric buses have a potential addressable market of $154 billion.

Clearly, there is a big opportunity and Arrival seems positioned to benefit.

Strong Growth in the Order Pipeline

It’s worth noting that Arrival expects electric bus production to commence in Q4 2021. Its electric van and large electric van are slated for launch in Q3 2022. Therefore, there is still time before Arrival generates meaningful revenue.

However, the company’s order intake has been robust. This is an early indication of the market potential. At the time of the SPAC business combination, Arrival reported orders worth $1.2 billion from United Parcel Service (UPS). The order is for 10,000 vans with the option for another 10,000.

Last month, Arrival reported Q2 2021 results. The company’s non-binding orders and LOI has swelled to 59,000 vehicles.

In another important development, Arrival and Uber Technologies (UBER) have collaborated on an electric car for the ride-hailing industry. The first Arrival car is expected to enter production in Q3 2023. The company is also in talks with other ride-hailing companies. This will open up another big market for Arrival.

The Microfactory Approach

In terms of manufacturing, Tesla (TSLA) has a Gigafactory approach. Arrival is entering the industry with a potentially game-changing Microfactory approach.

As the name suggests, the idea is to have smaller manufacturing units with a low capital requirement. Arrival estimates that the cost of setting up one Microfactory is $44 million. Currently, the company has a cash buffer of over $450 million. This can be utilized to set up ten microfactories.

The key advantage is that Arrival can easily create global presence through this approach. Further, with automation, the company’s Microfactory has a low break-even and lower number of employees per vehicle manufactured.

The approach can also be used for tailor-made solutions for big orders. Arrival is already setting up microfactories in U.S. and U.K. Based on the order backlog, these factors can be set up within six months in multiple locations.

Wall Street’s Take

According to TipRanks’ analyst rating consensus, ARVL stock comes in as a Moderate Buy, with one Buy assigned in the past three months.

The average ARVL price target is $20.00 per share, implying 53.49% upside potential from current levels.

Concluding Views

Another interesting fact about Arrival is the company’s extensive focus on innovation. The company has a team of more than 500 software engineers, and a strong portfolio of intellectual property. Last quarter, the company also partnered with Ambarella to deliver advanced driver assistance systems.

Overall, Arrival still has not generated revenue. However, the company has built a strong order backlog that provides growth visibility once the microfactories commence production.

It’s also worth noting that United Parcel Services, Uber and Leaseplan are big entities with global presence. Based on the initial delivery of vans, the orders might be scaled-up significantly.

These factors make ARVL stock attractive after a meaningful correction.

Disclosure: At the time of publication, Faisal Humayun did not have a position in any of the securities mentioned in this article.

Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates, and should be considered for informational purposes only. TipRanks makes no warranties about the completeness, accuracy or reliability of such information. Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. Nothing in the article constitutes legal, professional, investment and/or financial advice and/or takes into account the specific needs and/or requirements of an individual, nor does any information in the article constitute a comprehensive or complete statement of the matters or subject discussed therein. TipRanks and its affiliates disclaim all liability or responsibility with respect to the content of the article, and any action taken upon the information in the article is at your own and sole risk. The link to this article does not constitute an endorsement or recommendation by TipRanks or its affiliates. Past performance is not indicative of future results, prices or performance.

The post Arrival EV Stock: Getting Closer to Revenue appeared first on TipRanks Financial Blog.

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Energy & Critical Metals

The Rise And Fall Of 9MM Ammo Prices During COVID; What’s Next?

The Rise And Fall Of 9MM Ammo Prices During COVID; What’s Next?

Op-Ed via The Machine Gun Nest (TMGN).

The Machine Gun Nest has been open…

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The Rise And Fall Of 9MM Ammo Prices During COVID; What's Next?

Op-Ed via The Machine Gun Nest (TMGN).

The Machine Gun Nest has been open since 2015, but we've been in the firearms industry since 2013. Earlier than that, Rob (one of the owners) has been collecting guns since the early 2000s. We've seen panic buys, ammo prices fluctuate, and firearms banned and unbanned.

March of 2020. The COVID19 pandemic hits the United States. Many people (like myself) were aware of the situation in China and had time to prepare for the worst adequately. Many people were caught completely off guard.

Many things led to the recent panic buy, but most of it is related to COVID. Many people thought that the world was going to end. So many people "woke up" to the idea that they may have to fend for themselves and that no one was coming to save them. This change of mentality led to an explosion in firearms and ammo sales.

Weirdly enough, the price of ammo didn't have an immediate rise at the beginning of the pandemic. It was summertime before we started to see a real spike in price. Prices averaged $0.20 a round for 9mm until July. Then we began to see prices rise to an average of about $0.30/per round.

The price rise could be attributed to the BLM protests, counter and subsequent riots that followed, which were viewed widely across the internet and traditional media. There were depictions of innocent people getting hurt or worse, swarmed by protestors, with no police anywhere to help.

This led to a panic buy on top of a panic buy. Whereas previously, shelves had been scarce, they became empty. People started to hoard ammunition like they had been hoarding toilet paper. Since manufacturing companies were set up to meet the average demand of the "Trump Slump" of the previous years, where gun and ammo sales had been low, there started to be bottlenecks in ammunition production. Ammo manufacturers were not prepared for the sharp increase in buying.

In August 2020, we started to see prices increase even more as ammo became harder to come by. 9mm saw an average of $0.50/ per round. Major manufacturing companies started to report that they had accumulated millions of dollars in backorders. We tried to place a substantial order for ammo and were straight up told that there was no way that we'd get it within the year or next.  

Speaking to some of our friends, we gathered that there was a shortage of primers. Primers are the component within ammunition that ignites the gunpowder to expel the projectile from the bullet & firearm when struck by the firing pin. For those that don't know, primers are incredibly dangerous to produce. The manufacturing process sometimes results in death. Primers are typically the bottleneck in the production process for ammunition. A shortage of primers caused by high demand and supply chain disruption continued to help drive up the cost of ammo.

We luckily found an importer who had bought 1M rounds of Turkish 9mm. We were able to work with him to import the ammo, and that saw us through the worst of the shortages. Unfortunately, we were victims of circumstance (like everyone else) and had to pay a high cost per round to acquire the ammo.

After the 2020 election, we saw prices rise again to an average of $0.60 per round. To give you an idea of what that means- a box of ammo is 50 rounds typically. That's about 3-5 magazines, depending on how many bullets you load. 9mm is meant to be an inexpensive round. It's relatively cheap to produce, and its popularity has a lot to do with that fact. When you have people paying $30 ($0.60 per round) for a box of 9mm, as opposed to $12 (0.24 per round) eight months prior, shooting starts to get expensive, especially since the average range trip equates to about 2-300 rounds per caliber.

Consider this as well; statistics show that in 2020 alone, 23 million firearms were sold, with 6 million of those guns being bought by first-time gun owners. Suppose each of those new gun owners wants to buy enough ammo for an average range trip, 200 rounds. In that case, those people would need 1,200,000,000 rounds of ammo to satisfy the demand, and that's not even including the 32% of Americans that own guns (According to Gallup polling.) That would be about 104,960,000 people if you were wondering.

So, to satisfy that market, if each of those 104.9 Million people wanted only 200 rounds of ammo for one firearm, the amount of ammo needed would be serious. (and we know that people, in reality, want thousands of rounds per firearm). That's not including law enforcement contracts and military contracts, which usually take precedence over the civilian market.

Finally, in Jan. of 2021, we seem to reach the peak. With the Jan. 6th protests and Biden's inauguration, gun and ammo buying hit new highs. 9mm prices on average hit $0.71 per round. During this time, we regularly heard from customers that other spots were selling 9mm at $1/round.

At the time of writing this (September 2021), we're just now starting to see a drop in ammo prices and gun sales slowing down. 9mm is sitting at $0.31 per round for steel case and $0.34 per round for brass on the low end. Any well-known brand names are sitting at around $0.39 per round. Even with Biden's new "Russian Ammo Ban," prices seem to have steadily fallen, at least on 9mm.

The real question is, will the prices keep dropping? It's anyone's guess.

There's a ton of factors affecting the market right now, from unrest around the world. For example, earlier this month, a coup in Guinea sent Aluminum prices to a ten-year high. If you're unfamiliar, Guinea holds a quarter of the world's bauxite supply, a raw material that can be refined into alumina, which can then be smelted into aluminum.  

This price change can affect the cost of firearms, as manufacturers will have to pay a higher price to acquire raw materials.

Shipping and transporting are another problem now, with sea containers fetching record-high prices because of a shortage and supply chains still seeing significant disruptions.

Since the panic buy for firearms has at least subsided a little bit, people have stopped hoarding ammo and are choosier. We're seeing this in gun sales right now where customers aren't coming in and just buying anything on the wall. People are starting to do their research and are becoming pickier about their buying. I think this is the same for ammo as well. The demand has subsided a bit. If supply continues to meet demand, I think we'll continue to see a drop in prices. Barring some mutation in covid that gives the virus a 50% CFR, more supply chain disruptions, or the Biden administration passing some severe gun control legislation, I think we will continue to see the price of ammo dropping slowly.

Tyler Durden Sat, 09/18/2021 - 21:30
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