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Used Car Prices Hit New Record High, Signals CPI’s ‘Non-Transitory’ Surge Is Not Over Yet

Used Car Prices Hit New Record High, Signals CPI’s ‘Non-Transitory’ Surge Is Not Over Yet

Putting "team transitory" (comprising mainly of…

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This article was originally published by Zero Hedge

Used Car Prices Hit New Record High, Signals CPI’s ‘Non-Transitory’ Surge Is Not Over Yet

Putting “team transitory” (comprising mainly of pro-Fed, pro-Biden commentators) to shame is another significant jump in wholesale used car prices, continuing to make new record highs. The latest data from Manheim shows how the Bureau of Labor Statistics’ September print for used cars and trucks index is about to soar. 

The Manheim U.S. Used Vehicle Value Index increased 8.3% in the first 15 days of October compared to September. From a year ago, the index is up a whopping 37%. 

Much of the surging used car prices have primarily been a function of global supply chain woes impacting new vehicle production, forcing consumers to buy on the second-hand market. Another factor has been falling inventories at dealerships forcing them to continue accumulating used cars to replenish inventories as new car output slumps.

Manheim data reveals the lag between high-frequency data and traditional data at the BLS. We noted after last month’s CPI print that “used cars will turn higher in coming months as Manheim wholesale prices rebounded, ending a 3-mo streak of declines and modestly surpassing the prior high.” 

As for the transitory camp, the latest surge in used car and truck prices may continue pushing up consumer prices that are weighing on consumer sentiment

For much of 2021, surging used car prices have dented buying sentiment among prospective buyers. 

There are still no signs of used car prices slowing down as supply chain disruptions and global chip shortages persist. This week, there’s a new report that aluminum, used in engine blocks, transmission cases, frames, paneling, and much more, could be in short supply in the months ahead. So for the next CPI print, expect used car prices to be hot. 

Tyler Durden
Thu, 10/21/2021 – 13:46

Author: Tyler Durden

Energy & Critical Metals

Standard Lithium Files PEA Report for the South-West Arkansas Lithium Project

EL DORADO, Ark., Nov. 26, 2021 (GLOBE NEWSWIRE) — Standard Lithium Ltd. (“Standard Lithium” or the “Company”) (TSXV: SLI) (NYSE: SLI) (FRA:…

EL DORADO, Ark., Nov. 26, 2021 (GLOBE NEWSWIRE) — Standard Lithium Ltd. (“Standard Lithium” or the “Company”) (TSXV: SLI) (NYSE: SLI) (FRA: S5L), today announced it has now filed a Preliminary Economic Assessment Report (Technical Report) for the Company’s South-West Arkansas Lithium Project, further to its news release dated October 12, 2021. The report is available on www.sedar.com and https://www.standardlithium.com/projects/arkansas-smackover.

The Technical Report, entitled “Preliminary Economic Assessment of SW Arkansas Lithium Project” was prepared by independent consulting companies: NORAM, HGA (Hunt, Guillot & Associates), APEX Geoscience Ltd., ECCI, Matrix Solutions Inc., and METNETH2O Inc.

Key Points:

  • Pre-tax US$2.83 Billion NPV at 8% discount rate and IRR of 40.5%;
  • After-tax US$1.97 Billion NPV at 8% discount rate and IRR of 32.1%;
  • 20-year mine-life producing an average of 30,000 tonnes per year of battery-quality lithium hydroxide monohydrate (LHM);
  • Operating costs of US$2,599 per tonne of battery quality lithium hydroxide;
  • AACE Class 5 Total CAPEX estimate of US$870 Million including conservative 25% contingency of direct capital costs; and,
  • SW Arkansas Lithium Project PEA lithium brine resource is updated to consider the potential unitized area of production, leading to an increased total (global) in-situ resource of 1,195,000 tonnes Lithium Carbonate Equivalent (LCE) at the Inferred Category.

The final content of this news release has been reviewed by Clive Brereton, a fellow of the Canadian Academy of Engineering and vice-president of NORAM Engineering and Constructors, and reviewed and approved by Eric Mielke, of NORAM. Mr. Mielke is a qualified person as the term is defined in National Instrument 43-101 and is independent of the company.

About Standard Lithium Ltd.

Standard Lithium is an innovative technology and lithium development company. The Company’s flagship project is located in southern Arkansas, where it is engaged in the testing and proving of the commercial viability of lithium extraction from over 150,000 acres of permitted brine operations. The Company has commissioned its first-of-a-kind industrial-scale direct lithium extraction demonstration plant at Lanxess’s south plant facility in southern Arkansas. The demonstration plant utilizes the Company’s proprietary LiSTR technology to selectively extract lithium from Lanxess’s tail brine. The demonstration plant is being used for proof-of-concept and commercial feasibility studies. The scalable, environmentally friendly process eliminates the use of evaporation ponds, reduces processing time from months to hours and greatly increases the effective recovery of lithium. The Company is also pursuing the resource development of over 30,000 acres of separate brine leases located in south west Arkansas and approximately 45,000 acres of mineral leases located in the Mojave Desert in San Bernardino county, California.

Standard Lithium is jointly listed on the TSX Venture and the NYSE American Exchanges under the trading symbol “SLI”; and on the Frankfurt Stock Exchange under the symbol “S5L”. Please visit the Company’s website at www.standardlithium.com.

On behalf of the Board of Standard Lithium Ltd.
Robert Mintak, CEO & Director

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain certain “Forward-Looking Statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target”, “plan”, “forecast”, “may”, “schedule” and other similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to future prices of commodities, accuracy of mineral or resource exploration activity, reserves or resources, accuracy of the PEA, including NPV, IRR, capital and operating costs, life of mine production, progression of the project, including to a pre-feasibility study, regulatory or government requirements or approvals, the reliability of third party information, continued access to mineral properties or infrastructure, fluctuations in the market for lithium and its derivatives, changes in exploration costs and government regulation in Canada and the United States, and other factors or information. Such statements represent the Company’s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements and information other than as required by applicable laws, rules and regulations. 

CONTACT: For further information, contact Anthony Alvaro at (604) 240 4793

Contact: [email protected]
Twitter: @standardlithium
LinkedIn: https://www.linkedin.com/company/standard-lithium/

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Resources Top 5: A porphyry hunter joins the 10-bagger club for 2021, Marvel shareholders enjoy a spinoff windfall

Marvel’s holding in graphite spinoff Evolution is now valued at $25.5m Caspin may have hit ‘significant body of mineralisation’ near … Read More
The…

  • Marvel’s holding in graphite spinoff Evolution is now valued at $25.5m
  • Caspin may have hit ‘significant body of mineralisation’ near Julimar
  • More thick, high-grade copper-gold hits from Sunstone, which is now up 1,000% in 2021

Here are the biggest small cap resources winners in early trade, Friday November 26.

 

MARVEL GOLD (ASX:MVL)

MVL graphite spinoff Evolution Energy Minerals (ASX:EV1) is one of 2021’s hottest IPOs.

As at the close of trading on November 25, the EV1 share price was $0.51 per share, a 155% premium to the IPO price of 20c per share.

This has been a windfall for MVL. Based on this closing price, its holding in Evolution (31%) is now valued at $25.5 million.

This equates to a valuation of $0.043 per Marvel share, which results in an enterprise value for Marvel after subtracting cash and this listed investment of $11 million — or $11 per resource ounce.

That’s super cheap, it says. Just look at this peer comparison:

MVL is sitting on ~1Moz of gold at its ‘Tabakorole’ project in southern Mali, a region which includes Firefinch’s 7.5Moz Morila gold mine and Resolute Mining’s 7Moz Syama gold mine.

It also has a strong pipeline of regional targets, with a mammoth 15,000m auger and 15,000m aircore drill program now underway.

The company is assessing its options with respect to the EV1 investment “to ensure value is maximised for shareholders”, MVl managing director Phil Hoskins says.

The $45m market cap stock is up 10% over the past month, and 54% year-to-date.

MVL had about $5.2m in the bank at the end of the September quarter which, alongside this $25.5m windfall, gives the company plenty of cash to either return to shareholders or sink into exploration/acquisitions.

MVL, EV1 share price charts

 

CASPIN RESOURCES (ASX:CPN)

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 the only explorer looking for nickel-copper-PGEs near Perth, WA, before Chalice Mining (ASX:CHN) 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 has just intersected significant nickel and copper sulphides.

Based on visual observations, the mineralised zone is at least 40m thick with up to 20% sulphides over the first 2m and becoming more disseminated (scattered) at depth.

“The large size of the XC-22 anomaly suggests that if it is coincident with mineralisation throughout its entire extent then this could represent a significant body of mineralisation,” CEO Greg Miles says.

“Many more drill holes are required before this can be confirmed as a significant discovery and laboratory assays are required to confirm the tenor of any PGE mineralisation that may be present.

“This is an exciting development for the Yarawindah Brook Project and the results to date have given us reason to review similar AEM anomalies in the region that, in light of this new information, are potentially significant.

“We look forward to providing further updates on RC drilling at XC-22 and the interpretation of stratigraphic diamond hole YAD0019 as they come to hand.”

The $86m market cap stock is up 37% over the past month, and 118% year-to-date. It had $13.7m in the bank at the end of September.

 

SUNSTONE METALS (ASX:STM)

More extremely wide, high-grade hits from this popular South American porphyry hunter, which is now up 1,000% in 2021. 10-bagger confirmed.

The third hole from the ‘El Palmar’ gold-copper discovery in northern Ecuador just returned 105.09m at 0.75g/t gold and 0.20% copper (1.07g/t gold equivalent) from just 32m depth.

Assays now show significant grades and widths of gold and copper porphyry in five holes (EPDD001-EPDD003, and historic holes CED01 and 02) across a 300m long zone, which remains ‘open’.

Drill holes 4, 5, and 6 have been completed (assays pending), and hole 7 is underway. All holes are mineralised from shallow depths, STM says.

This is a big find that could get a lot bigger, the company says.

“Results support Sunstone’s view that only the upper portion of a porphyry system has been drilled so far, and this likely extends to considerable depth, and a second drill rig is mobilising to site to test the depth extent,” it says.

Porphyries are huge deposits responsible for ~60 per cent of the world’s copper, most of its molybdenum, and significant amounts of gold and silver. Their easy-mining large volumes make up for the low grades, typically between 0.3 per cent to 1 per cent copper equivalent.

At STM’s high-grade ‘Alba’ gold target on the Bramaderos Project in southern Ecuador, drilling of the second hole is set to start this weekend.

Last week, the company reported a maiden drill hole at Alba which pulled up an incredible 111m long intersection grading 2.3g/t – including 7.2m at 26.9g/t.

Monstrous.

The $250m market cap stock is up 83% over the past month, and 1,000% year-to-date. STM is well funded with ~$19mill in cash and equities.

 

KORAB RESOURCES (ASX:KOR)

(Up on no news)

This long time battler has moved quickly to profit from positive investor sentiment in the supply constrained magnesium and phosphate markets.

Earlier this month it decided to pull the pin on the planned sale of its increasingly valuable Winchester (magnesium) and Geolsec (phosphate) projects in the Northern Territory.

Over the last few months, KOR says it has been approached by two separate groups expressing an interest in developing the ‘Winchester’ magnesium project in the NT.

The latest unsolicited proposal would see the two parties “jointly develop the Winchester quarry where the other party will fully fund the development in exchange for sharing the future profits from the quarry”.

The company says it is also in discussions with magnesium metal users and magnesium buyers, including car makers (Fiat and Daimler), and aluminium/magnesium alloy producers.

Last week it inked a Heads of Agreement (HOA) – a non-binding deal to look at signing a real agreement – with Darwin Port for the export of up to 30,000 tonnes per annum of magnesium metal.

“The HoA with Darwin Port will allow for exporting of large quantities of high purity magnesium metal to Europe, USA, and Asia, where users of this critical metal have been suffering repeated shortages and supply interruptions that are likely to continue,” the company says.

The $30m market cap stock is up 1% over the past month and 710% year-to-date. The stock had ~$2m cash at the end of September, plus a small financing facility.

 

WHITE CLIFF MINERALS (ASX:WCN)

(Up on no news)

A good week for WCN, which yesterday raised $912,000 at 1.2c per share – equivalent to the last closing price – to hit the ground running at a couple of soon-to-be-acquired lithium and rare earth element (REE) projects in WA.

At the ‘Yinnetharra’ project, exploration historically focused on uranium, but sampling by Geological Survey of Western Australia (GSWA) showed the potential for lithium and REEs.

The ‘Preston River’ lithium project is 30km from the world-class Greenbushes lithium (+Sn/Ta) project and “situated in similar geological terrane”, WCN says.

After the acquisition completes, the company says it will hold over 4,000sqkm of lithium and REE tenure “within proven jurisdictions and nearby to operating mines and/or recent discoveries”.

Cash will also be used for ongoing exploration at the ‘Reedy South’ gold project.

Subject to shareholder approval, WCN company directors will apply for up to $60,000 worth of shares on the same terms as the placement.

The company already had $1.2m in the bank at the end of the September quarter. The $10m market cap stock is down 10% over the past month, and 40% year-to-date.



The post Resources Top 5: A porphyry hunter joins the 10-bagger club for 2021, Marvel shareholders enjoy a spinoff windfall appeared first on Stockhead.








Author: Reuben Adams

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Ground Breakers: Big miners dip to close the week as 2021 darlings hold the fort

Positivity around iron ore and other commodities that has driven the materials index to a 1.92% gain this week cooled … Read More
The post Ground Breakers:…

Positivity around iron ore and other commodities that has driven the materials index to a 1.92% gain this week cooled this morning as iron ore futures dived.

On a weak morning for trade in the big miners and across the ASX, 2021 success stories Liontown Resources (ASX:LTR) and West African Resources (ASX:WAF) were among the few to prosper.

Liontown has recovered from a selldown following the release of its Kathleen Valley definitive feasibility study earlier this month.

A 14% charge over the past week has taken the lithium developer back to all time highs of $1.94 this morning, a market cap of around $3.6 billion.

The Tim Goyder-chaired company released an ESG report this week featuring this chart based off Roskill data, which says a lot about why lithium investors are frothing at the mouth right now.

Pic: Liontown Resources

West African Resources has defied negativity around the gold space in 2021 to rise ~22% to a market cap of $1.3 billion, on the back of strong performance in the first year at its Sanbrado mine in Burkina Faso.

Liontown and West African share prices today:


 

Iron ore prices cool, dropping big miners

It’s been a week dominated by China’s apparent thawing of its frosty fiscal policy, leading to expectation steel demand would grow.

That turned this morning as Dalian iron ore future sunk by more than 5% on negative news about the impact of power issues in China and reports pollution levels would see the key steelmaking hub of Tangshan renew factory restrictions.

Equally bearish was the mid-November steel survey from the China Iron and Steel Association, which showed China’s steel mills produced at a rate of just 2.24Mt per day between November 11 and November 20, MySteel reported.

A drop of 1.5% on earlier in the month, that would place China well to meet its ambitions of keeping 2021 steel production numbers at or beneath 2020’s record of 1.065Bt.

It remains to be seen what restrictions China will keep in place after the Beijing Winter Olympics take place early next year.

Fortescue Metals Group (ASX:FMG), which has added ~$10 billion to its market cap over the past month, was down 3.13% while Rio Tinto (ASX:RIO), BHP (ASX:BHP), Champion Iron (ASX:CIA) and MinRes (ASX:MIN) all ate significant losses at the Materials index fell almost 1.5%.

 

Iron ore miners share prices today:


 

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Author: Josh Chiat

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