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Energy & Critical Metals

Orica addresses Scope 1, 2 and 3 emissions in latest GHG reduction pledge

Orica has announced its ambition to achieve net zero emissions by 2050, covering Scope 1 and 2 greenhouse gas (GHG) emissions and its most “material”…

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This article was originally published by International Mining

Orica has announced its ambition to achieve net zero emissions by 2050, covering Scope 1 and 2 greenhouse gas (GHG) emissions and its most “material” Scope 3 GHG emission sources.

The ambition builds on Orica’s previously announced medium-term target to reduce Scope 1 and 2 operational emissions by at least 40% by 2030.

To advance its net zero emissions ambition, Orica says it will:

  • Continue to reduce its operational footprint: prioritising Scope 1 and 2 operational emissions reductions by deploying tertiary catalyst abatement technology, sourcing renewable energy and optimising energy efficiency and industrial processes;
  • Collaborate with its suppliers: as new and emerging technologies scale and become commercial, partner with suppliers to source lower emissions intensity ammonium nitrate (AN) and ammonia to reduce Orica’s Scope 3 emissions, which account for approximately 70% of Orica’s total Scope 3 emissions;
  • Prioritise lower carbon solutions: developing lower carbon AN, as well as new products, services and technology offerings to help customers achieve their own sustainability goals; and
  • Report progress: transparently disclose performance consistent with the recommendations of the Task Force on Climate-Related Financial Disclosure.

Orica Managing Director and Chief Executive Officer, Sanjeev Gandhi, said: “Our ambition of net zero emissions by 2050 shows our commitment to playing a part in achieving the goals of the Paris Agreement. This is a strong signal that the decarbonisation of Orica will, and must, continue beyond 2030 and requires a collaborative approach across all of our stakeholders.

“We’re making solid progress having already achieved a 9% emissions reduction in financial year 2020 (to June 30, 2020) and further reductions this financial year. We’ve taken our 2030 medium-term target and extended our planning over the long term, developing a credible roadmap to support our ambition to achieve net zero emissions by 2050.

“Over the next decade, Orica is deploying tertiary catalyst abatement, prioritising renewable energy opportunities and supporting a trial of carbon capture utilisation and storage technology. Beyond 2030, how we achieve our ambition is dependent on effective global policy frameworks, supportive regulation and financial incentives, and access to new and emerging technologies operating at commercial scale.

“Orica is a company with a long history of technical innovation which is already helping our customers improve mine site safety, productivity and efficiency. We will apply the same approach by deploying low-emissions technologies to our major manufacturing sites and working with our global suppliers and stakeholders on reducing the footprint of our supply chain.”

Orica says it has already undertaken several initiatives to drive action towards its medium-term target and support its 2050 net zero emissions ambition.

In FY2020, Orica’s Bontang AN manufacturing facility in Indonesia recorded a 43% reduction in net emissions and its Kooragang Island nitrates manufacturing plant (pictured below) in Australia achieved a 6.3% reduction in net emissions, by replacing and improving the performance of selective catalyst abatement technologies, the company said.

In partnership with the Alberta Government this year, Orica’s Carseland AN manufacturing facility in Canada has commissioned tertiary catalyst abatement technology, reducing emissions by approximately 83,000 t/y of CO2e.

Orica has assigned approximately A$45 million ($33 million) over the next five years in capital to deploy similar tertiary abatement technology across its Australian AN sites, which, it says, could deliver an annual reduction of 750,000 t CO2e.

Orica will also support the construction of a mobile demonstration plant of carbon capture, utilisation and storage technology at its Kooragang Island manufacturing facility, led by Mineral Carbonation International, in partnership with the Australian Government and the University of Newcastle. The plant is scheduled to be built on Orica’s Kooragang Island site by the end of 2023 and have direct access to some 250,000 t of captured CO2 from Orica’s manufacturing operations.

The post Orica addresses Scope 1, 2 and 3 emissions in latest GHG reduction pledge appeared first on International Mining.

Energy & Critical Metals

QuantumScape is Still a Long Way From Showtime

QuantumScape (NASDAQ:QS) has had a difficult 2021. After topping out just below $133 per share in December, QS stock has lost more than 80% of its value….

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QuantumScape (NASDAQ:QS) has had a difficult 2021. After topping out just below $133 per share in December, QS stock has lost more than 80% of its value. It’s been tripped up by a number of things recently, including insider stock sales, a devastating short-seller report and a washout within the special purpose acquisition company (SPAC) arena.

Source: Tada Images / Shutterstock.com

At the heart of the matter is a simple question: Does QuantumScape’s battery technology work and offer the benefits that it purports to?

The 188-page report from Scorpion Capital earlier this year made some compelling arguments against QuantumScape’s credibility. And the company hasn’t managed to rebut much of the negative perception Scorpion created.

Rather, management continues going along with their timeline. Perhaps as the company nears commercial battery production the market will start to give QuantumScape more credit. However, a recent development casts some doubt on that theory.

Dissecting QuantumScape’s Recent Partnership

QS stock popped from around $20 to close to $29 in late September on elevated trading volume. After a difficult summer, it looked like QuantumScape might finally be charging up. However, a closer investigation of the recent move showed it didn’t hold much merit.

It started on Sept. 21, when QuantumScape announced that it had signed a partnership. QuantumScape described it as “an agreement with a second top ten (by global revenues) automotive original equipment manufacturer (“OEM”) in which the OEM committed to collaborate with the Company to evaluate prototypes of the Company’s solid-state battery cells, and to purchase 10 MWh of capacity from the Company’s pre-pilot production line facility (“QS-0”) for inclusion in pre-series vehicles, subject to satisfactory validation of intermediate milestones.”

At first glance, this seems great. A top 10 OEM wants to use QuantumScape batteries. That should add a lot of revenue, right? Not so fast.

For one, we don’t know who the OEM is. Think back to QuantumScape’s first OEM partnership. Recall how Volkswagen (OTCMKTS:VWAGY) — according to the Scorpion report — was disappointed with QuantumScape’s work and transparency. It’s understandable why another OEM might not be in a rush to associate its name publicly with QuantumScape.

Furthermore, the 10 MWh purchase agreement, you’ll note, is subject to validation of intermediate milestones. These, according to the company, are expected to be satisfied sometime before it begins production in 2023. That’s potentially still quite a ways off.

A Long and Winding Road to Revenues

There are still a number of obstacles to QuantumScape reaching commercial success. It has to validate its battery technology works beyond a small scale. And then it actually has to get its production up and running and start deliveries. From there, the OEMs have to use the batteries and see if they work better than other options in their vehicles.

This process will take at least a few years to play out, if everything goes well. Meanwhile, short-sellers have raised meaningful concerns about the company’s technology and management team. These allegations have not been adequately refuted, as the sorry chart of QS stock demonstrates.

I agree with my InvestorPlace colleague, Thomas Niel, who writes that potential QuantumScape investors will be able to get a better entry point at a lower stock price in future months.

QS Stock Verdict

I’ve long argued that QuantumScape doesn’t belong on a publicly traded market yet. There simply isn’t enough information for most investors to have a highly informed outlook on the company. The battery technology is profoundly speculative. If it works, QS stock will probably be a multi-bagger. If it doesn’t work, the stock would likely be close to worthless.

This is the sort of binary outcome that venture capital (VC) is good at managing. VC firms can build a portfolio of many such moonshot companies, knowing that, while most will fail, a few will pay off tenfold.

For retail investors, however, this sort of approach is risky. There is little to go on that confirms QuantumScape’s potential. You have to simply trust management and hold through at least 2023 before there will be tangible signs of progress. For most traders, there are much more rewarding ways to invest in the electric vehicle (EV) revolution.

On the date of publication, Ian Bezek 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.

Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as a Junior Analyst for Kerrisdale Capital, a $300 million New York City-based hedge fund. You can reach him on Twitter at @irbezek.

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Precious Metals

Falcon Gold Stakes Claims Near Lithium Discovery, Shares Rise 10% Today

Falcon Gold Corp. [FG-TSXV, 3FA, GR] said Friday it has doubled the size of its…

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Falcon Gold Corp. [FG-TSXV, 3FA, GR] said Friday it has doubled the size of its Hope Brook project in Newfoundland, picking up ground near the maritime province’s first reported discovery of significant lithium mineralization.

The company said it has now staked a total of 1,660 claims, covering 41,500 hectares, which are strategically located and contiguous to First Mining Gold Corp. [FF-TSX, FFMGF-OTCQX, FMG-Frankfurt, Sokoman-Benton and Marvel Discovery Corp. [MARV-TSXV, MARVF-OTCQB, 04T1-Frankfurt].

After forming a gold exploration alliance, Sokoman and Benton recently made headlines by announcing a lithium pegmatite discovery at Hope Brook, less than 400 metres from Falcon’s newly expanded property boundary.

Sokoman and Benton said the area containing lithium-bearing pegmatite dykes, now known as The Kraken Pegmatite Swarm, measures approximately 2.2 kilometres long by 0.85 kilometres wide. They said assays from rock samples have shown that the dyke system contains economic grades of lithium (including 1.04% Li20), is widespread and open along strike.

“The highly prospective ground held by Falcon shows various lithium clusters that may extend on the company’s ground,” Falcon said in a press release.  Falcon is currently evaluating the data from government reports, which include high-resolution radiometric and magnetic surveys.

Falcon shares advanced on the news, rising 10% to 11 cents on volume of 256,000. The shares are currently trading in a 52-week range of 16 cents and $0.075.

Falcon Gold is an Americas focused exploration company. In Ontario, its portfolio of projects includes the flagship Central Canada gold project, which is located 21.5 kilometres east of Atikokan, and about 160 kilometres west of Thunder Bay and 20 kilometres southeast of Agnico Eagle Mines Ltd.’s (AEM-TSX, AEM-NYSE) Hammond Reef gold deposit.

The company holds six additional gold projects: the Camping Lake gold property and Springpole west property near Red Lake, Ont.; a 49% stake in the Burton gold property with Iamgold Corp [IMG-TSX, IAG-NYSE] near Sudbury, Ont.; in British Columbia, the Spitfire-Sunny Boy and Gaspard gold claims; and most recently the Hope Brook.

Falcon CEO Karim Rayani said the Sokoman-Benton discovery speaks to the multi-commodity nature of the large land package which his company has acquired. “Falcon’s land is situated in a very active structural corridor, giving us a tremendous opportunity for finding the next potential discovery in this camp,” he said.

Within this immediate area, the most significant deposit is the Hope Brook gold mine, which was in production from 1987 to 1997, producing 752,163 ounces of gold. The Hope Brook, now owned by First Mining, has since been optioned to Big Ridge Exploration, which has outlined an additional 6.33 million tonnes at an average grade of 4.68 g/t gold or 954,000 ounces in the indicated and inferred categories.

 

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Energy & Critical Metals

NIO Stock: There Are 240,000 Reasons EV Maker Nio Is Revving Up Today

Yesterday brought some bad news for Nio (NYSE:NIO) as the Chinese electric vehicle producer failed to make the list of the top 15 best-selling EVs in China…

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Yesterday brought some bad news for Nio (NYSE:NIO) as the Chinese electric vehicle producer failed to make the list of the top 15 best-selling EVs in China for the year. While its competitors Tesla (NASDAQ:TSLA) and Li Auto (NASDAQ:LI) both made the list, Nio’s name was nowhere to be found. However, an announcement from the company bringing good news has given investors cause for optimism with NIO stock.

Source: Sundry Photography / Shutterstock.com

What Happened With NIO Stock

According to yesterday’s announcement, Nio will be doubling the production capacity of its Hefei plan, located in China’s Anhui Province. Previous production capacity had been 120,000 units per year but this expansion will allow the company to double this figure, completing 240,000 throughout 2022.

This news has already sent NIO stock up by 4.27% as of this writing and it doesn’t show signs of slowing down. The month has been turbulent, but the future looks promising.

What It Means

It has been reported that Nio’s newly expanded production line will be completed within the first half of 2022, gearing it up for a productive second half. Shareholders should be able to anticipate what comes next in 2022 with confidence.

Despite some turbulence, the fall has been generally good for Nio. The company delivered “10,628 vehicles globally in September 2021, an all-time high monthly record representing a robust growth of 125.7% year-over-year.” This development indicated that both the company and its sector have so far been able to make progress despite the difficulties posed by supply chain problems.

The following week, a Goldman Sachs =analyst set a $56 price target for NIO stock. His reasoning?  The fast-growing company still holds considerable upside. Today’s production expansion news should only further his bull case.

Why It Matters

China’s EV market is red hot and it’s still heating up. While Tesla has a dominant slice of the market, there’s plenty of room for innovative startups to grab their own. Nio is trying to do exactly that, positioning itself well to move forward as demand increases across continents.

InvestorPlace’s Vandita Jadeja recently spoke to NIO stock’s long-term potential, noting “Nio looks attractive for long-term investors. It has low risk and the valuation will grow with time. The sales are going to increase in the coming months as the chip shortage is almost over and the company will try to meet the international demand. The strong delivery numbers will ensure that the key margins are improved.”

For anyone considering a long-term play among EV stocks, Nio is absolutely worth watching.

On the date of publication, Samuel O’Brient 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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