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Uranium Just Hit $35/lb; Topping Six-Years Thanks in Part to Sprott’s ETF

The spot uranium price has punched through $35/lb for first time in six years. The spark for this price rise … Read More
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This article was originally published by Stockhead

The spot uranium price has punched through $35/lb for first time in six years.

The spark for this price rise is the Sprott Physical Uranium Trust (SPUT), which started buying up and storing physical uranium a few weeks back.

 

A gigawatt-class reactor uses around 450,000 pounds per year, so this is no small amount. SPUT is removing it from market circulation for the long term, and they aren’t the only ones.

Two other companies have already declared their intent to build ATM offering programs and “I doubt they will be the last to do so”, says 808s Online, a blog run by a US nuclear professional.

Uranium bulls are convinced continued tightness in the market and the emergence of these new yellowcake buying public trusts will see prices for the nuclear fuel finally take off.

 

That’s Kevin Bambrough, former boss at Sprott and a guy who probably knows uranium more than most.

 

What’s it going to take to get new mines up and running?

A generally accepted ~$US60/lb incentive price, which we are still well short of.

It’s also important to know that the spot market is just an indicator of the term contract market, where most of the action happens between uranium miners and the utilities.

This is where the interesting stuff is happening right now, says Boss Energy’s Duncan Craib.

“What we are focused on is the term contracts, and recently they have been entered into at about $US40/lb,” he told Stockhead.

“Utility fuel buyers have been busy extending and modifying existing contracts [with incumbent producers] to satisfy some near-term demand at advantageous terms.

“In return, they are granting these existing suppliers higher prices in the longer term.”

That is normally a precursor to more general contracting with the next crop of producers — like Boss (ASX:BOE), Paladin (ASX:PDN), Vimy (ASX:VMY), and Bannerman (ASX:BMN) (just to name a few) – who are basically waiting for contracts (offtake agreements) at higher prices to pull the trigger on development.

BOE, PDN, VMY, BMN share price charts

 

 

When fuel buyers come out to do more general contracting, they will need to incentivise these new mines to come online, Craib says.

“I think what will happen is a realisation in the industry that there just isn’t that available supply, and that new mines need to be developed,” he says.

“That’s when the price will really start to move.

“That’s where our [fully permitted] Honeymoon project in South Australia is in such a good position. It is a restart project, and the current spot price is above our breakeven price.”

Price rises to +$US60/lb (and maybe beyond) are unavoidable, Craib says.

“Demand is increasing, primary supply has dropped off significantly, and inventory levels are being drawn down,” he says.

“It’s inevitable that new mines will have to come online – and they will need to be supported by a rise in contract prices.”

The post Uranium just hit six-year highs. What’s next? appeared first on Stockhead.

Author: Reuben Adams

Energy & Critical Metals

Democrats’ Tax Cuts For The Wealthy In NY, NJ Spotlights Build Back Better Hypocrisy

Democrats’ Tax Cuts For The Wealthy In NY, NJ Spotlights Build Back Better Hypocrisy

Authored by Mike Shedlock via MishTalk.com,

State and…

Democrats’ Tax Cuts For The Wealthy In NY, NJ Spotlights Build Back Better Hypocrisy

Authored by Mike Shedlock via MishTalk.com,

State and Local Tax (SALT) deductions have made hypocrites out of the entire group of House Democrats.

Tax Plan Inflames Democratic Debate

House Democrats are in a fresh revolt over SALT. 

It’s a fine (hypocritic) time for it given they all voted for the Build Back Better build. 

BBB is now in the hands of the Senate where an Inflamed Discussion is taking place. 

House passage of Democrats’ $2 trillion education, healthcare and climate package has inflamed an intraparty debate about whether the bill gives overly-generous tax benefits to high-income Americans.

At the center of the dispute is the House plan to raise the $10,000 cap on the deduction for state and local taxes to $80,000 through 2030. A small but committed group of lawmakers from high-tax states like New York and New Jersey have for years insisted on repealing the $10,000 cap, which Republicans put into place as part of the 2017 tax law.

“I think it’s bad politics, it’s bad policy,” Sen. Bernie Sanders (I., Vt.) said to reporters. “The Democrats correctly have campaigned on the understanding that amidst massive income and wealth inequality, we’ve got to demand that the wealthy start paying their fair share of taxes, not give them more tax breaks.”

Setting the tax-deduction cap at $80,000 without an income limit means that its benefit goes to even the highest-income households, who all would save $25,900 more in taxes than they do under current law. Nearly one-third of the benefit of that $80,000 cap would go to the top 1% of households, according to the Tax Policy Center.

The inclusion of the higher state and local tax deduction, or SALT, cap means the bill overall would provide a net tax cut to many wealthy households. According to the congressional Joint Committee on Taxation, more than two-thirds of households with income over $1 million would get a tax cut in 2022.

One Non-Hypocrite

The only Democrat non-hypocrite in the House (on this issue) is Rep. Jared Golden of Maine.

Golden voted against BBB, criticizing its “tax giveaways to millionaires.”

Lie of the Day

In the lie of the day, Pelosi presented this feeble excuse “This isn’t about who gets a tax cut, it’s about which states get the revenue that they need in order to meet the needs of the people, and that is a fight that I will continue to make.”

Pelosi was a late supporter of the break for millionaires when she discovered she needed votes of Democrats in NY and NJ to pass BBB. 

Senator Michael Bennett Chimes In

Senator Bennett is a Democrat from Colorado. 

Question of the Day

Ok Bernie where do you stand? 

There is no way he will vote against BBB but he will likely lower the deduction to a number that gives something like 50% of the benefit to the wealthy instead of 70%.

Meanwhile, the House Progressive Caucus Group of about 100 hypocrites silently hopes the Senate does their dirty work for them (raise taxes on the wealthy in NY and NJ).

No matter what amendments pass the Senate, it is nearly certain the House will approve them. 

Four Changes to Expect

  • Reduction but not elimination of SALT change.

  • Immigration reform goes out the Window. It’s a nonbudget item and against Reconciliation rules.

  • Manchin will remove the provision that Electric Vehicle credits go to unions only (assuming the Senate parliamentarian does not remove that provision first as a non-budget item).

  • Manchin wants any extension of the Child Tax Credit (CTC) to include a “firm” work requirement and be limited to parents with “family income” of about $60,000 or less. 

There will be other changes too, but I have no idea what they will be. Something always comes up.  

Manchin could easily kill the whole thing. Sensible people hope he does. 

Instead, expect some tinkering around the edges. That tinkering is likely to reduce the CBO cost estimate to a fully paid $1.5 trillion package. 

But at least credit Manchin that we do not see an immediate $4 trillion monstrosity. It will now only be an immediate $1.5 trillion monstrosity.

Who Has the Courage?

The lower monstrosity only sticks if Republicans get control of at least one branch of government and they then really do let the temporary entitlement programs expire.

In practice, entitlement programs have never before been cut. Perhaps it’s different this time. 

For related discussion, please consider Profiles in Non-Courage

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Tyler Durden
Sun, 11/21/2021 – 20:30

Author: Tyler Durden

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Energy & Critical Metals

CONFIRMED: Sovereign’s Kasiya rutile is the good stuff – thick, continuous and high-grade

Special Report: Sovereign’s upcoming Kasiya project resource category upgrade is looking promising after infill drilling confirmed the thick, continuous…

Sovereign’s upcoming Kasiya project resource category upgrade is looking promising after infill drilling confirmed the thick, continuous and high-grade nature of its mineralisation.

Notable assays of rutile – the rarest and highest-grade source of titanium – from the first phase of results from the 148-hole program in the central zone of the Kasiya deposit are:

  • 14m grading 1.34% rutile including 2m at 1.61% rutile;
  • 14m at 1.13% rutile including 4m at 1.62% rutile;
  • 13m at 1.12% rutile including 2m at 2.11% rutile; and
  • 12m at 1.23% rutile including 2m at 2.07% rutile.

Sovereign Metals (ASX:SVM) noted the assays are in line with previous hand-auger drilling and continue to confirm widespread, high-grade mineralisation commonly grading 1.2% to 2.0% rutile in the top 3-5m from surface.

“We are looking forward to the completion of the initial scoping study for Kasiya which will reveal the potential economics of this globally significant rutile discovery,” managing director Dr Julian Stephens said.

“This is timely as Sovereign completes its dual listing on the AIM Market of the London Stock Exchange in mid-December introducing new capital markets and generating greater exposure for the company and the strong fundamentals of the Kasiya project.”

The company is expected to be admitted to AIM on or about 14 December 2021 while the scoping study remains on track for completion in the current quarter.

Kasiya core drilling plan over existing inferred resource block model (top block) with selected highlight hole results labelled. Pic: Supplied

Drill results

Sovereign had completed 244 core holes totalling 2,484m across the Kasiya and Nsaru rutile deposits between July and September using two push-tube core rigs achieving near-100% recovery through the soft, friable, mineralised regolith profile.

Besides the near-surface, high-grade mineralisation, the 148 core holes in the central zone also intersected moderate grade mineralisation generally grading 0.5% to 1.2% rutile that commonly extends from 5m to end of hole where it remains open at depths in numerous drill-defined, northeast-striking zones.

It is currently interpreted that these deeper, northeast-striking zones of rutile mineralisation should extend to the base of the soft, friable saprolite estimated to be about 25m depth.

The company will consider testing this deeper rutile mineralisation with sonic or air-core drilling in the 2022 field season.

Additionally, a comprehensive graphite assaying program has been completed over the course of the year to systematically assay all hand-auger and core samples.

This has shown low-grade, coarse-flake graphite averaging about 1.2% total graphitic content throughout the entire Kasiya rutile resources area.

Higher grade graphite occurs at depths of more than 5m in association with the northeast-striking zones of deeper rutile mineralisation.

Metallurgical testwork on a potential graphite by-product from Kasiya is now near completion and the company is confident of including a coarse-flake graphite by-product in the upcoming scoping study.

Results are pending for the remaining 96 holes from Kasiya and Nsaru.

 


 

 

This article was developed in collaboration with Sovereign Metals, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post CONFIRMED: Sovereign’s Kasiya rutile is the good stuff – thick, continuous and high-grade appeared first on Stockhead.





Author: Special Report

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Energy & Critical Metals

Hunter Biden’s Private Equity Firm Facilitated $3.8 Billion Chinese Purchase Of American-Owned Cobalt Mine

Hunter Biden’s Private Equity Firm Facilitated $3.8 Billion Chinese Purchase Of American-Owned Cobalt Mine

An investment firm founded by Hunter…

Hunter Biden’s Private Equity Firm Facilitated $3.8 Billion Chinese Purchase Of American-Owned Cobalt Mine

An investment firm founded by Hunter Biden facilitated a $3.8 billion purchase of an American-owned cobalt mine by a Chinese conglomerate, placing a key resource used in the manufacture of electric car batteries under foreign control, according to the New York Times.

The mine, formerly owned by Freeport-McMoRan and located in the Democratic Republic of Congo, was purchased in 2016 after Chinese mining outfit China Molybdenum announced a partnership with the Biden-founded Bohai Harvest RST (BHR) – with the Chinese contributing $2.65 billion and BHR contributing $1.14 billion to buy out a minority stakeholder, Lundin Mining of Canada. The money for Bohai’s share came “entirely from Chinese state-backed companies,” according to the report.

China Molybdenum lined up about $700 million of that total as loans from Chinese state-backed banks, including China Construction Bank. BHR raised the remaining amount from obscure entities with names like Design Time Limited, an offshore company controlled by China Construction’s investment bank, according to the Hong Kong filings.

Before the deal was done, BHR also signed an agreement that allowed China Molybdenum to buy BHR’s share of the mine, which the company did two years later, the filings show. That purchase gave China Molybdenum 80 percent ownership of the mine. (Congo’s state mining enterprise kept a stake for itself.) -NYT

In 2019, when Hunter controlled 10% of the firm through Washington-based Skaneateles, LLC, BHR sold its stake. As the Times notes, Chinese corporate records show Skaneateles is still part owner of BHR, however Biden attorney Chris Clark said that Hunter “no longer holds any interest, directly or indirectly, in either BHR or Skaneateles.”

According to a former BHR board member, Hunter and the other American founders were not involved in the mine deal, and the firm only earned a ‘nominal’ fee on the deal. The proceeds allegedly went towards the firm’s operating expenses, and was not distributed to its owners.

That said, the Times does raise a good point: “It is unclear how the firm was chosen by China Molybdenum.”

A dozen executives from companies involved in the deal, including Freeport-McMoRan and Lundin, said in interviews that they were not given a reason for BHR’s participation. Most of the executives also said they were unaware during the deal of Mr. Biden’s connection to the firm.

Paul Conibear, Lundin’s chief executive at the time, said it was made clear that China Molybdenum was leading the transaction even though the buyer of Lundin’s stake was BHR.

I never really understood who they were,” Mr. Conibear said of BHR. -NYT

So – Hunter Biden’s investment firm shows up to funnel money from Chinese state-owned firms into the cobalt deal, and nobody involved knows why

Tyler Durden
Sun, 11/21/2021 – 18:00

Author: Tyler Durden

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