Once upon a time – a long, long time ago – my mother was a high school debate champion in Montana.
She’s reminded me of that every day I’ve been alive.
And so, our Thanksgiving dinners – which, for most families, involve going around the table and saying what you’re thankful for – were all about debating the year’s hot topics.
I know. It sounds like a nightmare. The very thing most people try to avoid on Thanksgiving, is the one thing we actively sought.
But, as it turns out, I like debating as much as my mom. My old man does, too. My wife has picked it up, and my 18-month-old daughter is perhaps the best debater of us all (she’s excellent at saying “No” and no one has figured out a good rebuttal for that yet – the perks of being adorable, I suppose).
As they say, one man’s trash is another man’s treasure…
Many of my best memories growing up involve sitting around the dinner table at Thanksgiving, debating climate change, or the wealth gap, or even the value of modern art, going back and forth, point-for-point, until somebody concedes – and the debate is over.
Winning the annual Thanksgiving debate at the Lango household was like a badge of honor that you got to wear all year long – until next November rolled around, and you had to earn it all over again.
This tradition lives on today, and this Thanksgiving, I know exactly the debate topic I’m bringing to the table: Electric vehicles.
Specifically, I’m ready to staunchly defend the thesis that thanks to one miraculous battery breakthrough, electric vehicles will become ubiquitous by 2030.
You see… EVs are taking over the world, but they’re going about it very slowly. I mean, we’re still at just roughly 5% auto market penetration today – and the Model S launched about a decade ago.
EVs are moving at a snail’s pace, and that’s mostly because the batteries underlying electric cars have been limiting. Namely, they don’t last very long, they take forever to recharge, and you have to replace them super often.
In short: The EV Revolution won’t go mainstream until we make better batteries.
That harsh reality here is that while batteries make things work, today’s batteries are keeping EVs from working as well as they could.
Conventional lithium-ion batteries – which are currently the dominant status quo in smartphones, smartwatches, electric cars, and so on – are built on liquid battery chemistry. That is, they’re made using a solid cathode and anode with a liquid electrolyte solution connecting the two.
These batteries have worked wonders for years. But, due to the physical constraints of dealing with a liquid electrolyte, they are now reaching their limit in terms of energy cell density – which basically means that if we want our phones, watches, and electric cars to last longer and charge faster, we need a fundamentally different battery.
Insert the battery breakthrough that will fix all of that and press the fast-forward button on the EV Revolution.
Get ready, Langos, because this is going be the best debate of the past 20 years.
And for you – well, for you, this battery breakthrough may represent the most compelling investment opportunity of the past 20 years.
Click here to learn more about it.
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 This Is the Topic I’ll Be Debating Over Thanksgiving Dinner appeared first on InvestorPlace.
US Coal Is Making A Transitory Comeback
US Coal Is Making A Transitory Comeback
Authored by Tsvetana Paraskova via OilPrice.com,
U.S. coal miners, who have already benefited from…
US Coal Is Making A Transitory Comeback
U.S. coal miners, who have already benefited from rising demand from utilities this year, are in for at least another year of strong sales and cash flows
Much higher natural gas prices are making more power generators switch to coal
Annual U.S. coal-fired electricity generation is set to rise this year for the first time since 2014
While the U.S. Administration is pushing its green energy agenda and wants to decarbonize the power grid by 2035, coal is making a comeback this year as high natural gas prices incentivize more coal use in electricity generation.
This could be coal’s last hurrah, as the fossil fuel is still set for a continuous decline over the medium and long term, analysts say, amid the global push toward clean energy and the ESG trend that restricts investment and access to finance in the coal industry.
Still, U.S. coal miners, who have already benefited from rising demand from utilities this year, are in for at least another year of strong sales and cash flows as the much higher natural gas prices this year compared to 2020 are making more power generators switch to coal.
Annual U.S. coal-fired electricity generation is set to rise this year for the first time since 2014, and the share of coal in America’s power generation mix is set to rise to 23 percent in 2021 from 20 percent in 2020 as electricity demand rebounds and the delivered natural gas price for electricity generators more than doubles, according to EIA estimates.
Coal Demand Is Rising Amid High Natural Gas Prices
Rising demand for coal and muted supply response have depleted U.S. coal stocks to their lowest levels since the early 1970s. As utilities scrambled to secure supply ahead of the winter, coal prices in the United States were estimated to have hit last month the highest level since 2009.
The rise of coal this year also highlights a key challenge ahead for the green energy transition: a shift to cleaner energy will not happen overnight and keeping the lights on in America still needs a lot of coal and natural gas, regardless of the U.S. Administration’s long-term policies.
The U.S. still gets over 60 percent of its electricity generation from fossil fuels, 40 percent of which was natural gas and 20 percent coal in 2020.
This year, the EIA estimates the share of gas dropping to an average of 36 percent from 39 percent last year, but coal’s share rising by 3 percentage points to 23 percent. The share of renewables, including hydropower, is expected to remain basically flat on the year at 20 percent, EIA’s latest Short-Term Energy Outlook showed.
U.S. Coal Stocks Lowest Since the 1970s
“U.S. coal production growth has not kept pace with rising domestic demand for steam coal in the electric power sector and export growth, leading to a draw down in coal inventories held by the electric power sector,” the EIA said in the STEO in November.
Coal inventories at utilities stood in August 2021 at lowest levels since the early 1970s, according to EIA data in its latest Monthly Energy Review.
Stocks are now some two-thirds of the five-year average for this time of year, The Wall Street Journal points out.
In view of the lowest coal stocks in decades, PJM Interconnection, which coordinates wholesale electricity in all or parts of 13 states and the District of Columbia and serves a fifth of U.S. residents, said in October that until April 1, 2022, it could ask coal-fired plants to conserve stocks and curb operations if their respective remaining resources fall below 10 days worth of supply.
“This would only be implemented to address concerns with local or regional reliability,” PJM said.
“Christmas Has Come Early” For U.S. Coal Miners
Rising coal demand and the highest coal prices in more than a decade are boosting the profitability of the large U.S. coal miners, which sell their production in advance and are now looking to lock in higher prices for the next two years in negotiations with utilities.
“I’m reminded of that line, which goes who says Christmas, can’t come a little early. We are now three quarters through having our best year financial and operational performance since we went public,” Randy Atkins, CEO at Ramaco Resources, said on the Q3 earnings call last month.
The U.S. coal industry is almost sold out for 2022 as high natural gas prices have incentivized more coal-fired generation this year.
The outlook of many U.S. coal miners for 2022 and 2023 is positive, although long-term uncertainty over the role of coal is only rising.
“The reality is, there’s just been very limited investment in new coal production really everywhere domestically and as well as internationally. And as a result, there is a bit of a scramble right now as generators look to find additional volumes with gas prices, as higher as they are at around $5,” Deck Slone, Senior Vice President, Strategy at Arch, said at the end of October.
“Business conditions in the Powder River Basin are temporarily strong on a variety of factors including high natural gas pricing in regions that consume PRB coal that encourages gas-to-coal switching by power generators and various logistical issues present across the region that limits the coal industry’s ability to produce and deliver coal,” Moody’s said in early November when it revised the rating outlook on Arch Resources to positive from stable.
Coal Still On Track For Long-Term Decline
Despite the generally bullish outlook for U.S. coal through 2023, the industry is still set for a decline in the long term due to the push for more renewable energy generation and the ESG investment community shunning fossil fuels, especially coal.
“Moody’s believes that investor concerns about the coal industry’s ESG profile are still intensifying and, notwithstanding current strength in coal pricing and better debt trading levels, coal producers will be increasingly challenged by access to capital issues in the early-to-mid 2020s,” the rating agency noted.
“Looking forward, the Biden administration’s domestic energy policy agenda, combined with ESG obsessions in Europe and the United States, will most likely continue to restrict growth in fossil fuel production. Absent any significant global demand destruction, we expect fossil fuel prices will remain at elevated levels through next year and into 2023,” Alliance Resource’s CEO Joe Craft said on the Q3 call.
This year’s rise in coal power generation in the U.S. is unlikely to continue, with generation from coal plants next year expected down by 5 percent from 2021 due to continuing retirements of coal capacity and slightly lower natural gas prices, the EIA says.
Cypress Development kicks off pilot plant testing
Cypress Development (CYP.V) has started the pilot plant which will be treating the lithium-bearing claystone from the Clayton Valley lithium project…
(CYP.V) has started the pilot plant which will be treating the lithium-bearing claystone from the Clayton Valley lithium project in Nevada, using a chloride-based leaching process. The results of this pilot plant test run will be extremely important for the Clayton Valley project as this will allow the company to complete its feasibility study using chloride leaching which could be very beneficial to the overall economics.
A lot of eyes are onright now as it’s one of the few advanced US-based lithium stories out there. With the lithium carbonate price now exceeding $20,000/t, the time seems to be right for Cypress to aggressively advance the project towards feasibility, permitting and financing. Using an LCE price of $14,250/t, the after-tax IRR was estimated at US$2.2B in the 2020 pre-feasibility study and with an anticipated production rate of in excess of 27,000 tonnes of lithium carbonate per year (as per the pre-feasibility study), Clayton Valley is sufficiently large to draw some attention. We will have a more detailed update out soon.
Disclosure: The author has a long position in . Cypress is a sponsor of the website. Please read our disclaimer.
Who made the gains? Here are the top 50 resources winners for November
The top commodities in November were gold, copper and lithium. Copper, lithium, nickel and PGEs stocks increased their share of … Read More
‘Slow’vember certainly lived to its name, with only FIVE stocks making gains of 100% or more (the biggest movers being Tim Goyder-backed Devex Resources at 126% and new copper miner AIC Mines (ASX:A1M) at 118%).
Compare that with October and September which had 14 and 19 stocks above 100%, respectively.
The biggest mover both months was Chinese rare earths stock Viagold, which is still suspended because it can’t explain some suspect trading action.
No Viagolds in November, just (mostly) quality stocks with good news to share.
What were our winners looking for?
The standout commodities in November were gold, copper and lithium.
Copper, lithium, nickel and platinum group elements (PGEs) increased their share of the top 50 month-on-month.
Here are the top 50 ASX resources stocks for the month of November >>>
Scroll or swipe to reveal table. Click headings to sort. Best viewed on a laptop
|CODE||COMPANY||1 MONTH RETURN %||SHARE PRICE END NOV||MARKET CAP||COMMODITIES|
|DEV||Devex Resources||126||0.7||$ 207,342,169.32||NICKEL, COPPER, PGEs, URANIUM|
|A1M||AIC Mines||118||0.49||$ 152,813,933.91||COPPER, GOLD|
|HAW||Hawthorn Resources||102||0.105||$ 31,683,983.24||IRON ORE, GOLD|
|ASQ||Australian Silica||100||0.23||$ 50,918,805.28||SANDS, NICKEL, COPPER, PGEs|
|MRR||Minrex Resources||100||0.04||$ 15,778,450.49||LITHIUM, GOLD, COPPER|
|AVZ||AVZ Minerals||94||0.69||$ 1,995,267,061.60||LITHIUM, TIN|
|KWR||Kingwest Resources||76||0.22||$ 55,570,420.75||GOLD|
|KMT||Kopore Metals||74||0.04||$ 24,524,778.20||COPPER, GOLD|
|TRL||Tanga Resources||74||0.073||$ 32,362,250.76||GOLD|
|LCY||Legacy Iron Ore||69||0.022||$ 153,713,724.41||IRON ORE, GOLD|
|CPN||Caspin Resources||67||1.41||$ 83,435,748.45||NICKEL, COPPER, PGE|
|PSC||Prospect Resources||64||0.69||$ 287,110,768.45||LITHIUM|
|TRT||Todd River Resources||59||0.11||$ 59,261,788.22||NICKEL, COPPER, PGEs|
|MQR||Marquee Resources||52||0.12||$ 21,366,813.26||LITHIUM, GOLD, COPPER|
|ATC||Altech Chem||51||0.14||$ 180,441,939.58||HIGH PURITY ALUMINA|
|CDT||Castle Minerals||50||0.027||$ 22,862,960.93||LITHIUM, GRAPHITE, GOLD, COPPER, LEAD, ZINC|
|PNR||Pantoro||50||0.33||$ 465,134,570.34||GOLD, PGEs|
|CHN||Chalice Mining||49||9.97||$ 3,347,550,801.00||NICKEL, COPPER, PGEs|
|LMG||Latrobe Magnesium||49||0.094||$ 142,201,928.78||MAGNESIUM|
|EMT||Emetals||47||0.022||$ 7,885,000.00||RARE EARTHS, GOLD, NICKEL, COPPER|
|HIO||Hawsons Iron||43||0.11||$ 68,645,083.20||IRON ORE|
|EFE||Eastern Iron||41||0.076||$ 65,821,914.05||LITHIUM, IRON ORE|
|EGR||Ecograf Limited||39||0.85||$ 373,776,770.97||GRAPHITE|
|STM||Sunstone Metals||39||0.093||$ 214,744,413.98||COPPER, GOLD|
|JDR||Jadar Resources||38||0.054||$ 39,298,937.66||LITHIUM, COPPER, TIN|
|RLC||Reedy Lagoon||38||0.04||$ 21,601,046.64||LITHIUM, GOLD IRON ORE|
|E2M||E2 Metals||36||0.32||$ 46,646,076.03||GOLD, SILVER|
|NIC||Nickel Mines||36||1.42||$ 3,495,890,380.89||NICKEL|
|GW1||Greenwing Resources||34||0.45||$ 50,206,439.25||GRAPHITE, LITHIUM|
|M3M||M3Mininglimited||34||0.295||$ 8,463,188.40||COPPER, GOLD|
|LOM||Lucapa Diamond||33||0.084||$ 97,998,706.81||DIAMONDS|
|GLN||Galan Lithium||33||1.68||$ 434,180,203.50||LITHIUM|
|MEP||Minotaur Exploration||33||0.18||$ 87,734,350.90||KAOLIN, COPPER|
|MI6||Minerals260||33||0.62||$ 140,800,000.00||GOLD, NICKEL, COPPER, PGEs|
|SMI||Santana Minerals||32||0.33||$ 39,791,186.40||GOLD|
|KRM||Kingsrose Mining||29||0.08||$ 58,400,588.16||GOLD, SILVER, NICKEL, COPPER, PGEs|
|FNT||Frontier Resources||29||0.0245||$ 16,675,045.72||RARE EARTHS, LITHIUM, GOLD|
|NXM||Nexus Minerals||29||0.515||$ 145,417,789.60||GOLD, COPPER|
|SPQ||Superior Resources||29||0.018||$ 24,609,234.26||GOLD, NICKEL, COPPER, PGEs,|
|WCN||White Cliff Min||29||0.018||$ 8,275,142.38||RARE EARTHS, LITHIUM, GOLD|
|DME||Dome Gold Mines||28||0.23||$ 73,849,351.28||SANDS, COPPER, GOLD|
|STA||Strandline Res||28||0.255||$ 257,691,885.46||SANDS|
|IR1||Irismetals||26||0.43||$ 17,531,249.58||NICKEL, GOLD|
|S2R||S2 Resources||26||0.215||$ 74,838,719.55||GOLD, NICKEL, COPPER, PGEs|
|MGU||Magnum Mining & Exp||26||0.087||$ 40,765,882.95||IRON ORE|
|ASM||Ausstratmaterials||26||13.32||$ 1,738,244,834.76||RARE EARTHS, CRITICAL MINERALS|
|ASN||Anson Resources||25||0.125||$ 132,781,906.40||LITHIUM|
|AVL||Aust Vanadium||25||0.03||$ 91,879,454.97||VANADIUM, GOLD, NICKEL, COPPER, PGEs|
‘The Chalice Effect’
Last month, CHN hit an all-time high after announcing a truly specular maiden resource of 10Moz Pd-Pt-Au, 530,000t nickel, 330,000t copper and 53,000t cobalt — the equivalent of 1.9Mt of nickel or 17Moz of palladium.
That’s the largest platinum group elements discovery ever in Australia, and the largest nickel sulphide discovery globally in 20 years.
DEV’s chairman is Tim Goyder, the same man who has stewarded Chalice and lithium explorer Liontown into positions as two of the ASX’s best performing stocks over the past year.
The visual indications from the first two stratigraphic holes at ‘Sovereign’ — a 50-50 JV with fellow November winner Australian Silica (ASX:ASQ) — immediately to the north of Chalice’s Gonneville discovery are very promising.
“We are methodically ticking the boxes towards what we all hope will be a game-changing discovery at Sovereign,” DEV managing director Brendan Bradley says.
“The outcomes of these two widely-spaced stratigraphic holes have exceeded our expectations and given us confidence that we are very much on the right track with our exploration approach.
CPN was demerged from Cassini Resources, which was acquired by copper major OZ Minerals (ASX:OZL) in October last year for its ‘West Musgrave’ copper-nickel project.
What’s interesting about CPN is that it was one of the only explorers looking for nickel-copper-PGEs near Perth, WA, before Chalice moved next door and hit the motherlode in its very first hole.
That’s right — CPN is arguably the Julimar region OG.
Its main game is ‘Yarawinda Brook’, where drilling at the ‘XC-22’ anomaly last month intersected significant nickel and copper sulphides. Assays are pending.
TRT has one of the finest exploration teams in the business.
Managing director Will Dix was part of the team that discovered the ‘Waterloo’ nickel mine and the 2Moz ‘Thunderbox’ gold project, which is probably where he met non exec director Mark Bennett, best known for his leadership of small cap success story Sirius Resources.
Also on the board is Stu Crow, non-exec chairman at white hot lithium stock Lake Resources (ASX:LKE).
TRT has 5-6 projects, the most interesting right now being its ground near Julimar called ‘Berkshire Valley’ where 8,000m of drilling has now kicked off.
Liontown (ASX:LTR) spinout Minerals 260 has been a popular addition to the bourse.
Liontown had held the Moora gold-nickel-copper-PGE project near Julimar since 2018, with the asset now in the hands of MI6 and former Liontown CEO David Richards.
MI6 also holds an option to earn a 51% interest in the Koojan gold-nickel-copper-PGE project, the Dingo Rocks project and tenement applications at Yalwest.
A maiden gold drilling program at Moora kicked off early November.
The lithium wave strengthens
It had been another fantastic month for those veteran lithium stocks who did the hard yards when times were really bad.
Like, last year.
These near-term producers — like AVZ Minerals (ASX:AVZ), Prospect Resources (ASX:PSC), Lepidico (ASX:LPD), Galan Lithium (ASX:GLN) and Anson Resources (ASX:ASN) — have next dibs on this emerging and potentially very lucrative boom.
AVZ, PSC, LPD, GLN, ASN share price charts
But the November top 50 also contains a bunch of latecomers who are successfully riding this wave of supportive market sentiment.
The ‘Kibby Basin’ lithium project in Nevada is ~50km from Ioneer’s (ASX:INR) advanced Rhyolite Ridge lithium boron project, and 60km from MQR’s existing ‘Clayton Valley’ lithium project.
A drill campaign will begin in Q1 of 2022, MQR says.
Minrex Resources (ASX:MRR) is up ~100% since picking up a bunch of lithium projects in the Pilbara early last month.
This is all part of a strategy to become “an emergent lithium explorer with high-quality assets” within 70km of world-class lithium and tantalum producers Pilbara Minerals (ASX:PLS) and Mineral Resources (ASX:MRL), it says.
A further 97sqkm in exploration licence applications are currently subject to a ‘ballot’ (aka picking a name out of hat), including three tenements surrounding and adjoining Global Lithium’s (ASX:GLI) 10.1 million tonnes at the 1.1% Li ‘Archer’ project near Marble Bar.
MQR, MRR share price charts
The post Who made the gains? Here are the top 50 resources winners for November appeared first on Stockhead.
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