Connect with us

Energy & Critical Metals

The Big Green Push To Get Rid Of Coal Had The Opposite Effect

The Big Green Push To Get Rid Of Coal Had The Opposite Effect

Authored by Mike Shedlock via MishTalk.com,

An alleged big win to eliminate…

Published

on

This article was originally published by Zero Hedge

The Big Green Push To Get Rid Of Coal Had The Opposite Effect

Authored by Mike Shedlock via MishTalk.com,

An alleged big win to eliminate coal turned into a bust and then some

Investors Pushing Mining Giants to Quit Coal is Backfiring

Bloomberg has an interesting story on how Environmentalists Pushing Mining Giants to Quit Coal has backfired.

It was supposed to be a big win for climate activists: another of the world’s most powerful mining companies had caved to investor demands that it stop digging up coal.

Instead, Anglo American Plc’s exit from coal has become a case study for unintended consequences, transforming mines that were scheduled for eventual closure into the engine room for a growth-hungry coal business.

And while it’s a particularly stark example, it’s not the only one. When rival BHP Group was struggling to sell an Australian colliery this year, the company surprised investors by applying to extend mining at the site by another two decades — an apparent attempt to sweeten its appeal to potential buyers.

Now, after years of lobbying blue-chip companies to stop mining the most-polluting fuel, there’s a growing unease among climate activists and some investors that the policy many of them championed could lead to more coal being produced for longer. 

BHP may end up holding on to the Australian mine it was battling to sell, Bloomberg reported last week. Earlier this year, Glencore Plc sounded out a major climate investor group before announcing it would increase its ownership of a big Colombian coal mine, according to people familiar with the matter.

Not Just China

India now burns more coal than Europe and the U.S combined and miners are betting on rising demand over the next decade from countries such as Vietnam, Bangladesh and Indonesia, although pollution concerns and cheaper alternatives threaten to derail those plans.

Tough to Eliminate Coal

The push to abandon coal made selling the mines difficult. So companies chose to extend their life.

Developing countries that invested in coal-powered electrical plants that have many years of useful life want reparations to develop new plants. 

New wind and solar plants are cheaper but unreliable. And they are not cheaper than plants already built. 

Moreover, wind can die for days and solar has on average 12 hours a day of outages.

This places additional capital investment requirements for countries to build energy storage facilities.

Still Building 

China alone is currently building or planning coal power plants that are the equivalent of six times Germany’s entire coal burning capacity. 

It’s tough to get rid of coal when you build more coal plants than you retire.

COP26

COP26 has concluded. I will do a separate report a bit later. 

There were some alleged successes including a  watered down pledge at the last-minute to “phase down” rather than “phase out” coal.

This is considered a “success” because after weeks of bickering no statement at all regarding coal was expected. 

Credit India, with backing of China, for the watered down pledge on coal. That alone should tell you what you need to know.

The biggest failure also relates to coal. 

Rich countries did not make clear pledges to finance developing nations to the tune of what developing nations demand.

Instead, nations promised to continue talking about funding for “loss and damage associated with the adverse impacts of climate change”.

That means developing nations will not make much if any effort to get off coal.

*  *  *

Like these reports? If so, please Subscribe to MishTalk Email Alerts.

Tyler Durden
Mon, 11/15/2021 – 06:30

Author: Tyler Durden

Energy & Critical Metals

Best Penny Stocks To Buy Right Now

Penny stocks can sometimes get a bad reputation. On the… Read More
The post Best Penny Stocks To Buy Right Now appeared first on Investment U.

Penny stocks can sometimes get a bad reputation. On the one hand, they can offer tremendous growth potential as young, promising companies. But, on the other hand, they can be failing businesses with no escape plans. Luckily, I will cover the best penny stocks to buy right now and help you avoid a money-drain situation.

To be considered a penny stock, it generally includes assets trading under $5 a share. Although not all companies trade for pennies, they offer immense growth potential for those who find the hidden gems.

Check out this list for the best penny stocks to buy right now.

penny stocks to buy right now

Top 5 – The Best Penny Stocks to Buy Right Now

Penny stocks have gotten a huge boost this year from traders looking to capture the next big thing. For example, GameStop (NYSE: GME), a stock trading for less than $5 around two years ago, is now up over 3,000%.

However, it’s also important to realize these investments still come with major risks. Penny stocks are often more volatile than other types of investments.

Although not every penny stock will perform like GameStop, these businesses are making a name for themselves. With this in mind, let’s take a look.

#5 Invacare Corp. (NYSE: IVC)

  • Market Cap: 115.92M
  • Focus: Health Care Equipment
  • Key Statistic: 5.8% net sales growth in Q3.

Invacare Corp is a newer member of the penny stock club, falling from a yearly high of over $10 a share. But, after experiencing several issues in the previous quarter, the company is lowering its guidance for the rest of the year.

Between labor shortages and freight costs, the company had no choice but to change the growth outlook to -1% – 2%. As a result of the outlook changes, IVC stock is down over 60% this year.

Looking ahead, however, Invacare is in a growing medical equipment segment. The company offers several innovative patient products in categories such as mobility, rest, and patient transfer.

Despite just being surpassed by millennials as the largest generation, Baby Boomers carry the second largest population group. And with the baby boomer generation all being over the age of 65 by 2030, the demand for medical equipment will continue growing.

#4 Denison Mines (NYSE: DNN)

  • Market Cap: 1.31B
  • Focus: Uranium
  • Key Statistic: Q2 revenue grew 58% YOY.

This year, Dennis Mines has been a hot penny stock, with Uranium prices soaring in September, hitting its highest price in seven years. The demand for uranium comes as energy prices are being pushed higher due to supply chain issues brought about by the pandemic.

Additionally, uranium is considered a clean energy source since it doesn’t emit harmful gases. In fact, it provided 52% of America’s clean energy in 2020.

With that in mind, Denison has a growing portfolio of projects with enormous potential. Its flagship Wheeler River project is the largest undeveloped uranium mine, with ‘top 5’ producing potential.

As clean energy becomes more of a priority, look for the demand for uranium to continue climbing. And because of this, Denison earns a spot on the best penny stocks to buy right now list.

#3 Ocean Power Technologies (NYSE: OPTT)

  • Market Cap: 95.47M
  • Focus: Renewable Energy
  • Key Statistic: Q1 revenue growth of 60%.

There’s no denying the movement towards renewable energy sources. And what better way to capture clean energy than from one of the most abundant sources – wave energy.

According to recent insights, wave power has the potential to generate about 66% of the electricity in the United States. As a pioneer in its field, OPTT is developing technology for a cleaner future.

The company just received a U.S Department of Energy award to study next-generation wave energy technology. On top of this, the company is transitioning from research stage to deployment, offering excellent growth potential for investors.

Keep reading to discover the best penny stocks to buy right now.

Best Penny Stocks – #2 IZEA Worldwide (NASDAQ: IZEA)

  • Market Cap: 110.36M
  • Focus: Digital Marketing
  • Key Statistic: Managed services grew 130% YOY.

IZEA is an online platform that connects creators with businesses. The online marketplace makes it simple for companies to partner with top influencers to help promote their brand. The company has been developing the online influencer industry since it was started in 2006.

Despite being up over 200% since last year, IZEA stock is still down from its highs of $7.45 per share.

But, the company is starting to gain some traction growing its user base to over 850K registered creators. On top of this, the company has worked with major brands like…

  • Chipotle
  • Pepsi
  • Harley Davidson
  • And Planet Fitness

If the company can continue growing its user base with solid brands, it has a real chance of capturing a sizable position in the potential +$785 billion digital marketing industry.

Best Penny Stocks – #1 Energous Corp. (NASDAQ: WATT)

  • Market Cap: 112.36M
  • Focus: Wireless Charging Tech
  • Key Statistic: +50% YOY revenue growth in each of the last five quarters.

Another innovator, Energous Corp, is developing next-generation wireless charging technology. The company was started in 2012 and is making significant developments as of lately.

Currently, the company has +200 patents for its first-of-a-kind WattUp Technology. What’s more, Energous just received FCC approval for its unlimited distance over the air wireless charging tech.

The company is making strides to bring its product to the mainstream, a market that can be worth over $2.5 billion by 2028.

With that in mind, WATT stock is down 13% in the past year, currently sitting just under $2 a share. The innovative product, value, and potential market land Energous number one on the best penny stocks list.

Best Penny Stocks to Buy Right Now – Is Penny Stock Investing Right for You?

When it comes to investing in penny stocks, it’s essential to know the risks. Penny stocks are highly volatile and can change prices significantly in a matter of seconds. Even the best penny stocks can experience drawdowns at times.

It’s crucial to do your due diligence before investing in penny stocks. These can often be newer companies with little known about them.

But, with that said, they can also offer investors a chance to get in on the ground floor of some of the most innovative companies. If you decide to invest in penny stocks, stay up to date with the company as things can change often.

Most importantly, investing in penny stocks can take years for meaningful returns to develop. Make sure you believe in the company and its mission.

And lastly, for more of the best penny stocks to buy right now, join Trade of the Day. This free newsletter comes packed with investing tips, tricks, and resources designed to make you a better investor. Invest with the best and sign up today!

The post Best Penny Stocks To Buy Right Now appeared first on Investment U.




Author: Pete Johnson

Continue Reading

Energy & Critical Metals

New Lithium Miner, Snow Lake Resources, Completes IPO

On November 18, Manitoba-based Snow Lake Resources Ltd. (NASDAQ: LITM) issued 3.2 million shares in an IPO led by ThinkEquity
The post Snow Lake Resources,…

On November 18, Manitoba-based Snow Lake Resources Ltd. (NASDAQ: LITM) issued 3.2 million shares in an IPO led by ThinkEquity at a price of US$7.50 per share. The company hopes to develop the first renewable energy-powered mine that can produce battery grade lithium. 

Snow Lake’s planned Thompson Brothers Lithium Project encompasses 13,828 acres about 20 kilometers east of Snow Lake, Manitoba, which is generally considered a mining-friendly jurisdiction.

While Snow Lake’s business plan touches on some of the hottest buzzwords in the investing world today – battery grade lithium and renewable energy – and a gigantic volume of 24.6 million of its shares, or 125% of fully diluted shares outstanding, traded on November 19, we urge investors to exercise caution on Snow Lake stock. Admittedly, lithium stands to be in great demand in the battery cathodes of electric vehicles (EVs) for many years to come, and the cash proceeds from the IPO will allow the company to engage in necessary resource development activities and complete technical studies.

The above calculations were based on a presumed US$7.00 IPO price and did not assume that underwriters would exercise their over-allotment option.

However, the company does not plan to begin mining activities until 1Q 2024, around 2 ½ years from now. Investors who are bullish on lithium’s prospects may want to focus on companies poised to begin production in the nearer term. Moreover, a substantial amount of work must be accomplished over the next 30 months in order for mining — and cash flow — to commence. 

A Preliminary Economic Assessment is nearing completion, but permitting and environmental studies must also be finished, as well as at least 20,000 meters of drilling, during that time.

Source: Snow Lake Resources Free Writing Prospectus, dated November 12, 2021.

After factoring in the total 3.68 million shares sold in the offering, Snow Lake’s fully diluted shares outstanding are about 19.4 million. (On November 24, IPO underwriters exercised their full 480,000-share overallotment option.). At Snow Lake’s current share price of US$6.49, the company’s stock market capitalization is around US$126 million, and its enterprise value is roughly US$99 million. Snow Lake’s enterprise value reflects pro forma net cash of around US$27 million from the IPO.

An Australian-based company, Nova Minerals Limited (OTC: NVAAF), will own about a 60% stake in Snow Lake after the IPO share issuance, down from 74% pre-IPO. Snow Lake management owns around 8% of current fully diluted shares.

It is of course possible that Snow Lake’s Thompson Brothers project proves to be a huge find and that both the permitting and ultimately the mining processes proceed more smoothly and quickly than expected. In that case, the stock could perform well over the longer term.

Snowflake appears to check many boxes that have investors’ intense attention: anything related to electric vehicles (EV) and renewable energy.  Nevertheless, no cash flow seems likely for at least 2 ½ years. It seems to us that investors’ current available capital might be better channeled to EV-related companies that could generate cash in the nearer term.

Snow Lake Resources Ltd. last traded at US$6.49 on the NASDAQ.


Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

The post Snow Lake Resources, A Prospective Lithium Miner, Completes IPO; No Cash Flow Likely Until 1Q 2024 at the Earliest appeared first on the deep dive.




Author: Jim McFadden

Continue Reading

Energy & Critical Metals

We Don’t Talk About Collapse To Revel In It, We Talk About Collapse To Prevent It

We Don’t Talk About Collapse To Revel In It, We Talk About Collapse To Prevent It

Authored by Charles Hugh Smith via OfTwoMinds blog,

If…

We Don’t Talk About Collapse To Revel In It, We Talk About Collapse To Prevent It

Authored by Charles Hugh Smith via OfTwoMinds blog,

If one possible result of the current system is collapse, realizing the system itself must be changed isn’t doom-and-gloom, it’s problem-solving.

Those of us who discuss collapse are generally dismissed as doom-and-gloomers, the equivalent of people who watch dash-cam videos of vehicle crashes all day, reveling in disaster. Why would we spend so much effort discussing collapse if we didn’t long for it?

Those dismissing us all as doom-and-gloomers hoping for collapse have it backward: yes, some long for collapse as a real-life disaster movie, but those discussing collapse in systems terms are trying to avoid it, not revel in it.

If the system is vulnerable beneath a surface stability, then the only way to avoid negative consequences is to understand those vulnerabilities / fragilities and work out systemic changes that reduce those risks.

It’s not the analysis of vulnerabilities that causes collapse, it’s refusing to look at vulnerabilities because to do so is considered negative. Why not be optimistic and just go with the consensus that the status quo is impervious to serious disruption? Can-do optimism is all that’s needed to overcome any spot of bother.

The problem is humanity’s propensity to confuse optimism with magical thinking. This confusion is particularly visible in any discussion of energy. The status quo holds that every problem has a technological solution, and doubting this optimism is dismissed as naysaying: “why can’t you be positive?”

I consider myself an optimist in the sense that I see solutions that are within reach if we change our definition of the problem so we can enable new solutions. I consider myself a practical, pragmatic optimist because I understand from life experience that systemic solutions generally require arduous transformations that will demand great effort and sacrifice. In many cases, this process is mostly a series of failures and disappointments that are the essential parts of a steep learning curve.

But little of this basic awareness is visible in media descriptions of “solutions.”

Thus every advance in a lab somewhere is immediately touted as the globally scalable solution: algae-based fuel, modular nuclear reactors, new battery designs, etc., in an endless profusion of technologies which are 1) not even to the prototype stage 2) cannot be scaled 3) limited to specific uses 4) require the construction of new infrastructure 5) consume vast resources to be built, including hydrocarbons 6) are not renewable as they must be replaced every 10-15 years 7) are not cost-effective once externalities are included 8) are intrinsically impractical due to complexity, dependency on rare minerals, etc.

All this “optimism” is actually 95% magical thinking, as the practical, real-world realities are dismissed or glossed over: “oh, they’ll figure all that out.”

In other words, throw enough money and talent at a problem (“we went to the moon, so anything is possible!”) and it will always be solved in a way that’s bigger and better. This is not optimism, this is magical thinking being passed off as optimism. Real optimism is cautious and contingent, hyper-aware that solutions are a dependency chain that only reach cost-effective scalability if an entire chain of circumstances and advances line up just right.

There’s another source of confusing optimism and magical thinking: being too successful for too long. Former Intel CEO Andy Grove discussed this in his book Only the Paranoid Survive: once an organization reckons it has succeeded and has everything necessary to continue achieving success without making any systemic changes, then it’s doomed to decay and eventual collapse.

When success becomes the default then all the hard parts of success–sacrifices made, failures mopped up, gambles that didn’t pay off and gambles that did–melt away and all that’s left is a sunny confidence that somebody somewhere will work out a solution that scales up to solve the problem for all of us: “we have top people working on it–top people!”

Meanwhile, back in the real world, it takes 20 years to get a new bridge approved and built in the U.S., 20 years for a new subway line approved and built and 20 years to get a new landfill approved.

We’re supposed to make the leap to a renewable zero-net-carbon future in 20 years and we can’t even build one new-design nuclear reactor prototype in 20 years, even as we’d need hundreds of new reactors to replace a significant slice of hydrocarbon consumption.

But if you dare to point out this painfully visible discrepancy between the real-world difficulties in getting a single prototype built in less than 20 years and the claim that we’re going to transition away from hydrocarbons in 20 years, then you’re a doom-and-gloomer, a naysayer who derives some bitter pleasure from shooting down optimists working on painless, sacrifice-free techno-solutions.

The essence of magical thinking is the belief that the long dependency chain between the idea/lab experiment and a solution that’s cost-effective and scales up to serve everyone will always fall into place because it’s always fallen into place in the past, and so there’s no reason to doubt that all the pieces will fall into place going forward.

This is magical thinking because it has zero interest in the real-world constraints embedded in each link in the long chain. If you bring up any of these constraints, the magical thinking “optimist” is immediately annoyed and accuses you of being a bitter naysayer. The idea that there might be real-world constraints that “top people” can’t overcome is rejected as naysaying.

The possibility that there might be systemic constraints is rejected out of hand because “anything’s possible if we throw enough money and talent at it.” There will always be a solution / substitute which will be affordable and sacrifice-free.

That all the previous examples of this were enabled by our exploitation of the easiest-to-extract hydrocarbon wealth is overlooked as a footnote.

This leaves us all frustrated. Those of us grounded in the real world are frustrated that if we bring up any real-world constraints–for example, those wondrous untapped ore deposits that are going to make all these new techno-wonders cheap and quick and easy are far from paved highways, far from major river or bluewater ports, far from processing plants, and far from sources of the millions of liters of diesel fuel that will be needed onsite to extract the ores–then we’re bitter naysayers who can’t bear optimism and easy success, while the magical thinking “optimists” are frustrated that we’re not accepting the technocratic religion that “top people” and a tsunami of money will solve any problem.

One thing I’ve noticed is “top people” (actual experts with long experience) are never the ones hyping some new technology as the pain-free affordable solution unless they’re paid shills of special interests. Then they hype nuclear reactors as the solution without mentioning the problem of what to do with the waste, to name one constraint “optimists” inevitably ignore.

In the real world, the hard part is getting every link of the long dependency chain to work reliably and at a cost that’s sustainable/affordable. Success comes not from blithely dismissing constraints as naysaying but from accepting most potential solutions will fail due to issues for which there is no cost-effective, practical, scalable fix.

On a systemic level, this requires questioning whether the system itself has to change if we want a different result. If one possible result of the current system is collapse, realizing the system itself must be changed isn’t doom-and-gloom, it’s problem-solving.

*  *  *

Thank you, everyone who dropped a hard-earned coin in my begging bowl this week–you bolster my hope and refuel my spirits. If you found value in this content, please join me in seeking solutions by becoming a $1/month patron of my work via patreon.com.

My recent books:

A Hacker’s Teleology: Sharing the Wealth of Our Shrinking Planet (Kindle $8.95, print $20, audiobook $17.46) Read the first section for free (PDF).

Will You Be Richer or Poorer?: Profit, Power, and AI in a Traumatized World (Kindle $5, print $10, audiobook) Read the first section for free (PDF).

Pathfinding our Destiny: Preventing the Final Fall of Our Democratic Republic ($5 (Kindle), $10 (print), ( audiobook): Read the first section for free (PDF).

The Adventures of the Consulting Philosopher: The Disappearance of Drake $1.29 (Kindle), $8.95 (print); read the first chapters for free (PDF)

Money and Work Unchained $6.95 (Kindle), $15 (print) Read the first section for free (PDF).

Tyler Durden
Sat, 11/27/2021 – 11:52

Author: Tyler Durden

Continue Reading

Trending