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TSX update:
COMMERCE RESOURCES CORP. ("CCE")
BULLETIN TYPE: Warrant Term Extension
BULLETIN DATE: June 17, 2009
TSX Venture Tier 1 Company
TSX Venture Exchange has consented to the extension in the expiry date of
the following warrants:
Private Placement:
No. of Warrants: 3,761,003
Original Expiry Date of Warrants: June 26, 2009
New Expiry Date of Warrants: June 26, 2011
Exercise Price of Warrants: $1.50
These warrants were issued pursuant to a private placement of 3,761,003
shares with 3,761,003 share purchase warrants attached, which was accepted for
filing by the Exchange effective June 25, 2007.
TSX-X
----------------------------------
COMMERCE RESOURCES CORP. ("CCE")
BULLETIN TYPE: Warrant Term Extension
BULLETIN DATE: June 17, 2009
TSX Venture Tier 1 Company
TSX Venture Exchange has consented to the extension in the expiry date of
the following warrants:
Private Placement:
No. of Warrants: 23,526,814
Original Expiry Date of Warrants: July 24, 2009 (14,674,600 warrants)
August 1, 2009 (8,852,214 warrants)
New Expiry Date of Warrants: July 24, 2011 and August 1, 2011
Exercise Price of Warrants: $1.50
These warrants were issued pursuant to a private placement of 23,526,814
shares with 23,526,814 share purchase warrants attached, which was accepted
for filing by the Exchange effective August 1, 2007.
TSX-X
>Spark, thanks; hope all is well with you.
sumi
Good news..congrats~
John Kaiser: The Race to Rare Earths
Source: The Gold Report 06/02/2009
China's export-based economy, once dependent on American greed, is now but a fading memory. While the U.S. was busy printing and preening, the Chinese were long-range planning. But America wasn't the only country caught off guard by China's strategic, if surreptitious, supply procurement. In this exclusive interview with The Gold Report, John Kaiser, mining analyst for more than 25 years, explains how the East-West economic tables got turned and why he remains steadfast in the belief that "we are not at the mercy of places like China."
The Gold Report: John, you have indicated that base metal prices will be stronger than one would expect given the gloomy global economic outlook, but more importantly, that the valuations of companies with "pounds in the ground" will surprise us on the upside. You believe that security-of-supply concerns will replace what you call short-term "economic logic" with a long-term "strategic logic" as a driving force behind valuations—particularly for the group of metals you call "infrastructure support metals." Can you give us an overview of those metals and why you think there's such a strong upside possibility?
John Kaiser: These days I'm not only concerned that the United States is losing its relative clout on the global stage, but also that countries like China are going to have to go it on their own. They're sitting on these enormous foreign reserves—$2 trillion—two-thirds of which are U.S. denominated instruments—and all of this was built up when they were very dependent on an export economy. They were making things, selling them to the United States, and then shipping the dollars back for IOUs in the future.
But this game is now over. They know it and they are developing infrastructure internally to develop their own domestic economy. They're looking around and saying, "Where are we going to get all the raw materials that will allow us to keep building our own infrastructure and economy, and what are we going to do with all these IOUs?" So they're taking these IOUs and solving this security-of-supply problem by acquiring deposits and assets around the world to ensure that they will have control of the key raw materials that are needed for their long-range plan.
Now long-range planning is not something that we in the West are accustomed to. We're always just thinking of the economics of profitability in the short term. So the rest of the world is being caught off guard as China sneaks around the world and buys up these assets. And the critical ones are not nickel and zinc and copper, the traditional base metals. There are a lot of those deposits around the world, and if the price is high enough, they can be put into production and everybody will have whatever copper they need. It's the more obscure metals—what I call infrastructure support metals—like molybdenum, the rare earth oxides, lithium, tungsten and tantalum. They represent just an incremental cost of the total end product.
Uranium is a classic example. The uranium fuel represents just 3% of the cost of producing nuclear energy. These things are essential. You cannot have the larger product without them. In the case of rare earth oxides, we're looking at a situation where the Obama Administration would like to see clean energy replace gasoline-based energy in transportation fuel. The Chinese are thinking along similar lines because they don't want to be dependent on foreign oil supplies any more than the United States does. Rare earth oxides go into these super magnets that are a key part of these hybrid and electric cars. The Japanese, the Europeans, and North American carmakers would like to commercialize the production of hybrid cars, but they are afraid to do so because all the rare earths right now come out of China. And China has said "we would like all the manufacturing to be done in China and we'll sell it to the rest of the world." Well, that puts everybody at the mercy of China. So now there's a scramble afoot to look for these deposits outside of China and never mind that China could flood the market with their rare earth oxides. The end users are thinking we need to have security of supply for these rare earth oxides so we're not at the mercy of political machinations by a country like China.
Tantalum is another metal where it's a key input in cell phone capacitors. The supply has come only from a few mines, all of which are now shut down as part of the strategy to get the processors to allow a price increase. A company like Commerce Resources Corp. (TSX.V:CCE) (PK SHEETS:CMRZF)has tied up deposits in British Columbia that are lower grade than some of the ones that have traditionally supplied this market, but their angle is that the end users need to know that their tantalum for their capacitors is assured for the next 20 years. So they will probably end up forming a consortium of end users that fund these mines and puts them into production.
But for the juniors, the opportunity right now is to source these projects. They get title to them, and when these end users want to develop them, they're going to have to pay a premium to have these projects developed. So it will not be economic logic that results in these companies getting bought out and having their deposits developed. It'll be a strategic logic linked to long-term security-of-supply and redundancy concerns. And we're seeing that sort of psychology at work in this market. It's a bit of a niche in this market. Not as big as gold, but it is an interesting one because of the long-term real economy link implications that it has.
TGR: If this becomes a strategic logic play as opposed to economic, are the potential acquirers government or large companies?
JK: In the case of most of the Chinese mining companies, they are all at least partly if not wholly owned by the State. And we just saw an example where a distressed Australian company, which had several hundred million dollars lined up from Western sources to put its rare deposit into production, had the plug pulled on them. The stock was at 10 cents, they were dead in the water, and then the Chinese came in and ponied up $360 million in a combination debt equity financing that will give them majority control of this company and, of course, they've got all the boilerplate in the news release saying we will honor all the offtake agreements. All these offtake agreements are just good for five years and they only represent a small fraction of the total resource that will now be under the control, indirectly, of the Chinese government. So, in a sense, they've tied up what could have been one of the independent sources of raw materials in the world for the non-Chinese manufacturers.
And the governments in the Western world still aren't waking up to this problem. For example, we have Mountain Pass here in California, which Molycorp owns and which a group of private investors has now bought from Chevron; and they want to get back into production. They want the government to recognize that we need these things to happen for our military and space programs and even our domestic consumer economies, so we are not at the mercy of places like China.
TGR: And is the government doing that?
JK: At the government level, nobody seems conscious of the need to nail down security of supply of some of these raw materials within friendly jurisdictions. They are very aware of it with regard to oil because you look at what countries have the big long-term reserves and they aren't exactly the "friends of America" club. Part of this move towards clean energy isn't just concern about global warming and carbon dioxide emissions. It is a strategic desire to reduce the dependency on oil coming from these unstable or unfriendly parts of the world.
But they haven't really thought about that in terms of these more obscure metals. Everybody assumes that in this globalized economy, price will determine supply. Anybody who has the dollars to pay for this stuff will get all the moly they need. Except what I'm seeing is we're starting to see a destruction of the fungibility of these commodity markets. These supply contracts are not in the open market; they're private supply contracts.
In fact, the uranium market is like that. Utilities nail down long-term contracts with suppliers so they are assured the uranium. And it's interesting that the spot price, which was as high as $140 a year and a half ago, collapsed to $40; but the lowest the long-term contracts went was about $65. So you're seeing prices being paid for commodities in this hidden market that are not reflected in the so-called public reviewable spot markets.
So with regard to these more obscure metals, you do not have the transparent global markets that we have for the more traditional metals such as gold, platinum, nickel and copper. When you simply assume that when the need arises, the price will go up and the supply will materialize, one finds that all the supply has already been privately contracted at fixed prices and there is nothing to really put into the market. Then you would probably see the spot price go crazy as the parties that absolutely need that incremental demand rush into the market to tie it up so that they can, in the case of uranium, keep their reactor going.
TGR: So are we chasing our tail? It sounds like we have technology that needs to be developed that will use these rare earths, but it won't be developed if we don't have a commercially guaranteed supply of it.
JK: Yes, exactly. It's a classic chicken-and-egg problem and what's interesting now is when you have these sorts of big picture strategic needs like clean energy or reducing dependency on a certain type of energy, suddenly there's the impetus to solve this chicken-and-egg problem. And with these commodities, it's not so much an issue of 'can we get a significantly higher price for them?' It's more 'can we expand the market for them?' Three years ago, the rare earth market was worth a piddling $1 billion.
TGR: The entire market?
JK: Yes. So that's not very interesting and the prices had already gone up a fair bit at that stage. What becomes interesting is that this market could become $5 to $10 billion due to demand growth arising precisely because end-users are guaranteed an unending supply at these prices.
There are deposits out there where they could be profitable. They have rock values of $300 to $1,000 a ton, but nobody had dreamed of developing them during the last 30 years because the size of the market wasn't large enough to absorb the supply of this raw material.
In fact, eight years ago, the Chinese did glut the market with rare earth oxides before all this hybrid stuff really started taking off. And it's only recently that they realized they were depleting their own internal resources and decided to put export quotas in place. And now that we have these application scenarios where you can scale the demand 10, 100, 1,000 times bigger and you suddenly say, "uh-oh, where are we going to get this raw material?" Well, this is where, again, I see the strategic logic come into play—where the end users, who can make a lot of money selling hybrid cars if they have these raw materials in place, will actually pay a premium to control these pounds in the ground and see them developed (even if it is at a break-even basis after it's in production).
TGR: Are there some specific rare earth or minor metals that investors should be aware of and, if so, what companies should they be looking at?
JK: There are very few companies that have any sort of meaningful resources that you can buy in the market. One that I follow is Avalon Rare Metals, Inc. (TSX:AVL), which has the Thor Lake deposit in the Northwest Territories.
They don't mine anything yet. They're doing all the pre-feasibility work to establish where the highest-grade zones of these rare earth oxides are in the system, and then they'll start a mining scenario where they'll initially produce enough to feed expected demand in the market. But the total resources are large enough so that this thing could operate for 50 years. So these types of projects with the very large resources are of enormous interest to the end users because, once these things get going, they'll operate forever.
Another company, Rare Element Resources Ltd. (TSX.V:RES) has its Bear Lodge deposit in Wyoming. The deposit, on the one hand, is farmed out to Newmont Mining Corp. (NYSE:NEM) for its gold potential and Newmont has been waiting for two years to get a full-blown environmental assessment done so that when it starts drilling, the 5 million-plus ounce target that it's seeking doesn't get stalled by having to reapply for permits. At the same time, the company has just published a 43-101 resource estimate outlining the rare earth resources that they have on the project.
So it's a nice company in that you get two completely unrelated stories for the price of one, and it doesn't have a lot of stock outstanding either; so while it would net only 20% of any multi-million ounce gold deposit that Newmont finds, it has 100% of the rare earth deposits there.
And one other one that I recently discovered because it was disguised as a uranium company is Quest Uranium Corporation (TSX.V:QUC). It turns out that they own part of the Strange Lake deposit that straddles the border between Quebec and Labrador. This was found during the '80s and it's lower grade than some of these other deposits. They did the pre-feasibility work and then shelved it and eventually abandoned it. Then Quest staked it and they found other showings suggesting similar grade.
The interesting thing about that deposit is it seems to have an unusual percentage of the heavier rare earth elements, which there was no market for back in the '80s. So these metals may have had a high price, but it was simply high because the stuff was rare and scientists would pay whatever it took to get these metals. Well, here you have an interesting situation where Quest may have an unusual abundance of the heavier rare earth elements that could become commercialized thanks to new applications that were not around during the '80s. Quest was trading at just a nickel a couple months ago and is now at $0.20 as the market discovers its rare earth story. We're seeing stocks like this start to attract market attention.
TGR: This has been very educational. Are there any other parting thoughts you'd like to give our readers who are investing in mining stocks?
JK: Yes, I would say when you're looking at these juniors, you've always got to figure out what is it that's going to change with regard to the company. Is it going to be a discovery? Is it going to be some breakthrough in metallurgy or on the cost side of the project? Or is it going to be a change in the price of the commodity that suddenly completely changes the value potential of the company's project and results in it being re-priced upwards?
You have to assume that the market is reasonably efficient in pricing these companies at the current price and you need to identify what it is that needs to change to justify a significantly higher price. And, also, on the downside, what is your downside risk? What negative potential changes are there associated with this company and its projects that could make your investment go down significantly? The lesson learned in the last 10 years is if you want significant upside potential, it only comes with significant downside potential. So you have to understand that risk-reward balance. At least with these companies, you have your 1,000% upside balancing your 90% downside, as opposed to owning a bank stock with 10% upside delivering you 90% downside.
TGR: This has been great. John, we appreciate your time.
DISCLOSURE:
I personally and/or my family own the following companies mentioned in this interview: Quest Uranium.
I personally and/or my family am not paid by the companies mentioned in this interview.
John Kaiser, a mining analyst with over 25 years experience, is editor of the Kaiser Bottom-Fishing Report. He specializes in high risk speculative Canadian securities and the resource sector is the primary focus for an investment approach he developed that combines his "bottom-fishing strategy" with his "rational speculation model." Kaiser began work in January 1983 as a research assistant with Continental Carlisle Douglas, a Vancouver brokerage firm that specialized in Vancouver Stock Exchange listed securities. In 1989 he moved to Pacific International Securities Inc where he was research director until April 1994 when he moved to the United States with his family. From 1989 until 1994 he was also a registered investment advisor. He worked six months as a researcher for Bob Bishop's Gold Mining Stock Report before branching out on his own with the publication of the first issue of the Kaiser Bottom-Fishing Report in October 1994. He has written extensively about speculative Canadian issues, is frequently quoted by the media, and is a regular speaker at investment conferences.
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Drilling Results for Commerce Resources Eldor Tantalum, Niobium, Rare Earth Project in Quebec
On Wednesday June 3, 2009, 6:00 am EDT
VANCOUVER, June 3 /CNW/ - Commerce Resources Corp. (TSXv: CCE) (FSE: D7H) (the "Company") is pleased to announce drilling results from the 2008 exploration program at the Eldor Tantalum, Niobium and Rare Earth Property in northern Quebec, Canada (the "Property").
During 2008, 26 holes, totaling 5,842 meters, were completed at the following locations:
http://finance.yahoo.com/news/Drilling-Results-for-Commerce-cnw-15421853.html?.v=1
Rare Earth Element Cos Could See Next Bull Market Run
Maandag 25 Mei 2009 21:15
By Brian Truscott
Of DOW JONES NEWSWIRES
http://www.beurs.nl/nieuws/artikel.php?id=293005&taal=US
VANCOUVER -(Dow Jones)- Two TSX Venture-listed rare earth companies are enjoying strong gains Monday - an otherwise quiet day on the Toronto Stock Exchange as U.S. markets are closed for Memorial Day.
Commerce Resources Corp. (CCE.V) and Rare Element Resources Ltd. (RES.V) are up 32% and 37% respectively, in part because two well-regarded market watchers are talking up a niche resource sector that's largely unknown to the everyday investor.
Investment-letter writers James Dines, who writes the Dines Letter, and John Kaiser, who writes the Bottom-Fish Online report, say rare earth elements are increasingly important to global markets.
Dines, who has declared himself a big-time 'investor bug' of various nascent markets in the past, said last Friday that rare earth elements could be the next major surprise bull market.
Why? Rare earth elements, which go by names such as thulium and lanthanum, are used in numerous electronic applications as well as superconductors, super-magnets, refining catalysts and hybrid-car components.
The two other rare metals one needs to know about are tantalum and niobium. Tantalum is widely used in the electronics industry. Niobium is used in steels and superalloys.
The actual amount of these elements that go into producing, say, hybrid cars is small but necessary. Supply is therefore vital to producers that need these rare elements in their products.
Kaiser agrees, saying the value of rare earth element miners will be increasingly strategic as demand for product outstrips global supply.
Enter Commerce Resources, a late-stage tantalum and niobium explorer, and Rare Element Resources, which has a key rare earth project in Wyoming.
As Kaiser says, the strategic worth of what they're sitting on in the ground is becoming as valuable as the elements themselves.
He used a recent example: state-owned China Nonferrous Metal Mining Group (CNMC) took a majority stake in Lynas Corp. (LYC.AU) this month, giving the Australian rare earth miner US$366 million in funding. While Lynas has offtake agreements to Japanese, European and U.S. clients lasting for the next five years, its rare earth supply could last some 30 years. CNMC has now secured and therefore controls the future supply from one of the richest rare earth deposits in the world, Kaiser said.
That includes tantalum and niobium.
This is all the more important because the U.S. Defence Logistics Agency stopped selling into the tantalum market in 2008. Australia's Talisman, the world's leading supplier of tantalum, has ceased production indefinitely, citing the adverse effect of the black market supply as well as intense pricing pressure.
Black-market production in war-torn Democratic Republic of Congo is, by some estimates, supplying the world with some 30% of its required supply.
As both Commerce Resources and Rare Element Resources move toward production, their leverage on global producers increases, observers say.
'Commerce Resources is in a fascinating global position; the window for tantalum has opened wide,' said David Hodge, president of Commerce Resources. 'We are becoming part of the supply solution on a global basis; no matter what the studies say in terms of the price of extraction, the industry will say yes.'
Commerce Resources is hoping to start open-pit production in 2010.
In Toronto, Commerce Resources is up 10 Canadian cents to 40 Canadian cents on 621,000 shares. Rare Element Resources is up 35 Canadian cents to C$1.30 on 633,000 shares.
Web Sites: http://www.commerceresources.com; http://www.rareelementresources.com
-Brian Truscott, Dow Jones Newswires; 604-669-1595; brian.truscott@dowjones.com
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(END) Dow Jones Newswires
May 25, 2009 15:15 ET (19:15 GMT)
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Sumisu,
thanks for your response. SRSR share holders frequently compare the two companies.
I think being on the TSX is a big boost for Commerce.
Good luck to ya,
D.
>Thanks for the questions.
Commerce does not have a producing mine. Conservatively speaking they will probably be mining around Q3 2011.
Commerce has $12 million in the bank. I probably typed in the wrong amount a while back.
Much of the work done last year has not yet been reported this year.
I think that their institutional interests stems from management presentations around Europe and Canada. Their investor relations contact, Chris Grove, can provide you with developments, past, present, and future, to help to grasp the story of Commerce.
Since I don't own SRSR and never researched it, I cannot make a comparison between the two companies.
Personally, I think that any well managed resource company located in Canada is a great buying opportunity. All natural resources seem to be in decline plus having the remaining resources in countries friendly toward each other, e.g., United States and Canada, is an important consideration during turbulent geopolitical times.
I will take a look at SRSR for possible purchase. Others have recommended it to me, but I've been short of cash.
sumi
Does Commerce have a producing mine? What do you think warrants a value of .45 a share?
I realize they have $38 mill in the bank. When are they gonna use it and start production? Ands they are on the TSX. Did being listed on the TSX play a role in thier institutional backing?
How do you rate SRSR compared to Commerce.
Thanks.
look for the bold text ref. Niobium and Tantalum
Good Reason for Optimism in Industrial Metals Investing
Apr 03, 2009 - 07:29 PM
Leonard Melman, prodigious writer (The Melman Report) and leading authority in the metals and mining arenas, sees opportunity for some "really good moves" and "fabulous returns" on the horizon, citing vibrant charts on random juniors whose values have multiplied during the last six months. Also noting the possibility of some "good price pops" in the metals themselves, Leonard considers the price of the base metals as a real key to the future of the economy. On the other hand, he shares some serious concerns about the economy in this exclusive interview with The Gold Report. For example, he is alert to several "ominous red flags" that warn of the potential for devastating hyperinflation and worries that the Humpty Dumpty of savaged financial assets may be beyond repair.
The Gold Report: We're finally seeing some good economic news. Have we hit the bottom?
Leonard Melman: As far as the general economy is concerned, I'm not exactly prepared to make a clear statement. I've been checking news headlines from around the world and still see a lot of dismal information. Japan's export economy dropped by 50% this February compared to February of 2008. Their car sales have collapsed by 43%. Toyota is talking about cutting worldwide production by half, which will just drive their economy nuts. We're getting stories out of Germany that are very negative. Czechoslovakia has just ousted its prime minister; they're in a state of chaos. Latvia and Hungary have currency problems. Poland's economy is contracting. I could go on and on. So while the United States is starting to report some good news, there's still a lot of gloom and doom, so the picture is in flux.
As far as the metal side of things, I'm getting more and more encouraged. Gold is behaving beautifully. That last decline stopped at about $860, which is still well above long-term up-trends. We're back in the $930 range again, so there is support out there. With money creation going on at the rate it is, you have to feel good about that.
Virtually every base metal—nickel, copper, zinc, lead—has risen quite dramatically since last fall's lows. So I think there is good reason for optimism on the metal side and a balanced outlook on the economic side.
TGR: Given that scenario, what should the investors be looking at?
LM: I think there is the opportunity for some really good moves. I've been looking at several charts of junior companies just at random. While some still have some difficulty to overcome and they're still fairly close to their bottoms, others quite surprisingly have doubled and tripled during the last six months. The two most widely followed mining indices, the XAU and the HUI, have broken out to relative highs for the past four to five months. So there is a chance for some very substantial gains.
TGR: So some juniors appear pretty promising.
LM: Yes, and there's always the great advantage the junior mining shares have when it comes to the total investment picture. They're very thinly traded in comparison, say, to a stock such as IBM or GE. It takes substantial sums to move those shares significantly, but it only takes a few thousand to move junior shares. With some of those junior shares dropping so far during the last year, say, from 80 cents down to 7 or 8 cents, it takes very few $1,000 investments to drive those shares higher. If you're prepared to stand the risk that the scenario may not play out quite as you want, I think there are significant potential returns over the next year.
TGR: You say a few thousand shares can drive the price up; the same can be true for driving it down.
LM: Absolutely.
TGR: What are the baseline economics that this will rise over a year or two?
LM: Even though I don't agree with the basic economic concept of all this stimulation, there is an excellent chance it will work in the sense of creating at least a boomlet—if not a full-scale boom, at least an improvement in the world's economic picture over the rest of this year. If that happens, demand for all natural resources will go up and that specifically is going to include the base metals, which are in demand for virtually any kind of manufacturing. In turn, that could cause good price pops in the metals themselves. If that happens, of course, the metal shares would likely participate on a very leveraged basis.
My problem is whether this boomlet will create increased business activity looking out a year and a half or farther. If the increased business activity behaves as it has in the past, it will stimulate demand, stimulate price increases, and with the trillions of dollars involved in stimulative and rescue programs over the last year, inflation could heat up very quickly should business conditions improve substantially. If inflation heats up, by nature that would drive interest rates higher. And rising interest rates could cut short the boom.
So I think we're playing with a fairly short-term timeframe when it comes to improving the economy dramatically. Beyond a year and a half, I really do get concerned about the potential for a hyperinflationary burst, which could create real economic and social disorder. But I hope that's a long time away if it's going to happen.
TGR: Let's hope it doesn't happen.
LM: Exactly. But some of the preliminary things that in the past have led to hyperinflations are taking place: The unlimited creation of fiat currency, the tendency to concentrate a great deal of economic authority in a few central hands. These are ominous red flags for me looking farther down the road.
TGR: It's very scary.
LM: It is. Even scarier is that in previous occurrences of hyperinflation—France during and immediately after the revolution, 1789 to 1795; Germany in 1922 and 1923; Zimbabwe today—happened to single nations, and they were nations that didn't dominate the world's economic scene. If the United States currency lapses into hyperinflation… imagine the implications of a postage stamp going from 50 cents to a dollar, then $5, $10, $50, $100—or, as happened in Germany, from 4 deutschmarks for a single postage stamp in 1920 to 50 billion deutschmarks for a single postage stamp in 1923—what happens to the world's economic structure?
TGR: What must the American government—and other governments—do to make sure it doesn't happen?
LM: If I were looking for what government should do, in my personal belief, it should try to reduce the intrusiveness of government into the production of natural resources and manufactured products to make them more efficient and increase the wealth of the country that way. It should also diminish the creation of unlimited amounts of fiat currency. And some long-term plan should be put into effect for governments to begin to accumulate gold and silver holdings, which would give an underlying value basis for their currency.
I'm a political realist. I know right now the political background does not seem conducive to those things, but I think society should work toward those directions.
TGR: Do you think the population will protest some of the currently announced government programs plans as they start to look at an inflationary environment? And would their protests act as a brake to hyperinflation?
LM: You've hit upon a terrific point. I believe we're starting to see that happen. If you notice, President Obama has changed the direction of his emphasis quite dramatically in the last several weeks. He's now talking about reining in deficits in the future. He's talking about putting programs on a sound financial basis. In the late stages of his campaign and the early stages of his presidency, he simply talked about all the wonderful things his government would do. But I notice a real advancing pattern of discussion of economic reality and I think that's been brought about by the public reaction to the staggering array of bailout rescues and dollar-creation programs.
America is a strange nation. Nobody thinks the public is very knowledgeable about these things, but they have a tradition of free enterprise and thinking that government should mind its own business, so to speak, and let the marketplace have its way. I think the public was aroused to a real danger in the direction of the first two months of the Obama administration. They're starting to speak up. So I think the public is aware and they are starting to let those feelings be known.
TGR: So in your mind there is some hope that some of this will get reined in, particularly the unlimited fiat currency.
LM: I do believe that's true. I also think there is the simple economic reality that, while America is still definitely the number-one economy, the relative position compared to 1960 or 1970, when they absolutely dominated the world scene, is that they are no longer the be-all and end-all of the world economies.
And messages are coming from other countries that something is going dreadfully wrong with America. The Director of the National Bank of China just blankly stated that they are very concerned about the future of their holdings in America because of this escalating monetary creation.
TGR: Let's go back to the junior mining shares. You mentioned that some of the juniors are still close to their bottoms and others have tripled since their lows. Can you share with us what differentiates juniors that have tripled from those that are still bouncing along the bottom?
LM: I think there's a very great distinction. Some of the companies were so hard hit during the past year or two that they have simply run out of money or their treasuries are down to near zero. They don't have the capacity, at the moment at least, to generate new discovery programs. They're just sort of lingering on hold to see whether they're going to survive. Those are the ones that are sitting back.
Others still have a sound treasury and the capital to conduct further investigations, to build reserves, and to participate in any big rally that comes in. So I think the market is taking those and saying, “Hey, they've been beaten down by 90%; let's start buying them.” That's why some of them are doubling and tripling off their bases and it looks very, very encouraging.
So I think that's the distinction. If they either have the cash on hand or the clear ability to raise new cash, the market is interested. But I think for the time being the market is avoiding those that simply have reached a care-and-maintenance situation.
TGR: So the balance sheet is driving investor sentiment rather than property or potential discoveries.
LM: Very definitely. If a company doesn't have the money to conduct further investigation, they have nowhere to go at the moment. But the outlook could be very promising for those that have money, which can be identified by a study of their balance sheets.
TGR: To what extent do metal prices have to stay where they are or increase for the juniors that have risen two to three times from their lows to remain successful over the next year?
LM: It's vitally important. Take copper, for example. It plunged from a high of $4.20, I believe, all the way down to the upper $1.20s. In the upper $1.20s, it's very unlikely that any mining production can take place and show a good profit. We're now almost at $1.80 for copper and at $1.80, suddenly the outlook is infinitely brighter.
If this economic boom does take place over the next year and a half, I believe it's reasonable that we could see copper go to $2.50 to $3 a pound. In that case, some of these holdings in the ground that are proven reserves could become valuable mines. On the other hand, if copper were to fall back into the $1.20s or below, the prospects for a profitable mine would be virtually nil. So the price of the underlying metal is of considerable importance. That's why we keep a real close watch on those trends.
TGR: So investors who are dabbling in the juniors market should be watching metals prices carefully as a signal of when, potentially, to take profits.
LM: Exactly. And there's an additional point. The markets always tend to look ahead and the base metals are no different. So if the price of the base metals starts to rise unaccountably, that's also a positive indication that this economic recovery or boomlet will indeed take place. So the price of the base metals is a real key to the future of the economy—at least it's a good solid indication. And the precious metals are also historically very good indicators of monetary stability or instability. So price is a vital consideration.
TGR: Can you share with us some of the juniors you track that are good examples—with good balance sheets and good properties and poised to take advantage of the price in metals as it goes up?
LM: There are several categories within base metals and precious metals, but also specialty metals. One company I have studied at some length is Commerce Resources Corp. (TSX.V:CCE) (PK SHEETS:CMRZF) . One particular advantage Commerce has is that they raised considerable cash during the time when their stock was much higher, which was a very, very advantageous thing to do. The cash raised was then used to conduct a very substantive investigation program throughout 2008. They've recently reduced their burn rate, the rate they're using up their capital. They still have more than enough work for their geologic team to thoroughly analyze all the drilling they did last year and put together plans to advance the property, which is located near Blue River, British Columbia, toward production.
By the way, the two metals that Commerce is concerned with are tantalum and niobium and a great number of new uses for those metals are being developed. So they have the potential to move forward because they have cash reserves on hand. If I had to pick a number, I'd say they probably have $11 or $12 million Canadian still in their treasury. That's a good example of a balance sheet working in favor of a company.
TGR: What are some of the uses of tantalum or niobium?
LM: In general, tantalum and niobium are suitable for applications requiring hardness, resistance to extremely high temperatures, and the ability to store and release electrical charges quickly, so they're ideal for aircraft, motor parts, cell phones, and particularly for capacitors where electricity changes in fluctuation very rapidly. And, as mentioned, new uses are being discovered and coming forward very rapidly.
TGR: Do you think there will still be a demand for these metals if we face more economic downturn?
LM: There is a moderate demand. Because of the economic slowdown, a lot of manufacturers have cut back production. I'm thinking as soon as it appears clear that the economies are going to advance, there's going to be a great deal of catch-up on the part of these manufacturing companies to rebuild their inventories of tantalum, niobium and other specialty metals. So I look forward under those circumstances to a very sharp increase in new demand to come into the market.
And there's something else very interesting about tantalum. Much of the supply that has been entering the market for several years has come from the Democratic Republic of Congo, or DRC. But the DRC right now is afflicted with huge social disorder and so there's an uncertainty about the future supply from there. Also, DRC production is being carried out in an anti-environmental manner. For those reasons, many of the end users of tantalum are specifically looking for a good North American supply and that's where Commerce Resources' reserves in British Columbia could become very advantageous.
TGR: I know you've also been following some silver companies and a lot of them were in Mexico. We're getting a lot of press now about Mexico, specifically all of the drug wars and kidnappings and such. If you're reading resource papers, you're hearing a lot about Mexico's depleting oil supplies and a potential pending economic situation there. What's your feeling about investing in companies that have properties in Mexico?
LM: As it happens, I travel to Mexico quite frequently and, for example, I've been able to visit the Orko Silver Corp. (TSX.V:OK) property in Durango State. There are areas of social concern for Mexico; there's no question about it. I have had the unfortunate experience of being in a vehicle headed out on a highway which was suddenly pulled off to the side of the road by the Mexican Military Police and being searched for any indication of drug traffic while soldiers hold rifles turned on you. It's unsettling, you're standing there by a road with an armed soldier pointing a rifle at you, but they're doing that to control the drug traffic.
But in terms of mining, Mexico has had good reliable laws that have supported the industry. Heck, the mining industry in Mexico goes back 400 years, right back to the Conquistadores and even before that to the Aztecs. Qualified geologists have reported that the geology of Mexico looks excellent, the production facilities in Mexico are of a high order and, as I say, the mining law is very solid and reliable.
One important question is whether the Mexican economy will hold together, as it is being negatively affected at present by two factors. First, there is ongoing depletion of their petroleum reserves and the resultant diminishment of cash flowing into the country from those reserves and, second, for quite a while Mexico has relied on the inflow of American cash from expatriates living in the United States. That's been a big staple of their economy and with the U.S. economy declining; the flow of such cash into Mexico has been diminishing.
So they have some economic problems that are serious along with the drug problem. That has to be weighed by investors. On the other hand, the geology is favorable, the production facilities are generally of a high quality, and the law is good. So it's a balanced equation and investors would have to determine their own level of risk.
TGR: You said you visited Orko Silver. Can you give us an update on what you saw there?
LM: They have a very prospective new area under exploration called the Martha Zone. It lies in a relatively flat plain with excellent ease of access compared to many reserves that are in very mountainous terrain and can be investigated only with great difficulty. Orko is building their reserves, they're also planning an updated resource estimate and obviously, the goal is to bring the property into production at the earliest possible time. According to company geologists; the quality of the reserves appears to be very substantial, perhaps six to eight ounces per tonne silver, and they are working with the goal of attaining profitable mining down the road.
TGR: Are there other silver plays there you can tell us about?
LM: As a matter of fact, right in the very same area as Orko is Avino Silver & Gold Mines Ltd. (TSX.V:ASM) (OTCBB:ASGMF) . It's quite a story. They went into silver production back in the 1960s and produced until the 1990s. They had both open-pit operations and underground mining and then finally shut the operation down because of low silver prices. In the last few years, they have gone back into the underground areas, reinvestigated and found an entire new zone of silver. They are refurbishing the plant that's still onsite and their goal, of course, is to bring the whole property back into production as fast as possible. Their aim is to re-start production by the end of this year, or early 2010 at the latest.
TGR: You're also following Hawthorne Gold Corp. (TSX.V:HGC) ?
LM: Hawthorne is a very exciting play as far as I'm concerned. They have two different projects under development. The one east of Quesnel in British Columbia is called "Fraser Gold" and is strictly a development property right now and they are advancing it as fast as possible. The other one, the Table Mountain project, is of particular interest. It's an area in the far northwest corner of British Columbia near the town of Cassiar. You'd have to be a mining nut to know where Cassiar is, located about 100 kilometers below the Yukon border. That area has been developed before. A company called Cusac owned it and then Cusac finally ceased mining when the economics no longer worked.
Hawthorne took the property over, they have reinvestigated it, they have sufficient cash on hand to continue development and there is a mill on the property that requires only minimal refurbishment. With the price of gold at close to $1,100 an ounce Canadian, company geologists believe the economics appear to be working well. So that is a very interesting prospect.
Hawthorne's properties also include the Taurus area, located adjacent to Table Mountain where a NI 43-101 compliant resource estimate shows a million-ounce resource, which appears to be amenable to open-pit mining. If a potential investor wanted to hedge against the spectacular rise in the price of gold, that kind of property is certainly well worth investigating.
TGR: That's an interesting way of thinking about it. Do you have any other interesting junior mining companies you've been following that have some exciting stories?
LM: It's hard to pick any off the top of my head. Let me put it this way: if the price of gold were to do something really spectacular like go to $1,500 or $2,000 an ounce, some properties could literally come back from the dead.
TGR: Stranger things have happened.
LM: Yes, this is a time like no other. It's one of the wildest times I can recall. I've been involved with money since 1966, and I have never seen anything like the last 12 months, nor anything like the present. We've always had recessions, even deep ones as in 1973 and 1974. But never before have we seen a Citibank drop from $55 to under $1 or General Motors lose more than 90% of its value in one year. And when I say “never,” I'm even including the Depression. You can take any example you want. We have never had this kind of savaging of financial assets in history. It leads to a great number of questions whether Humpty Dumpty can be put back together again on a sound basis.
So it is a fascinating time of flux. Good Lord, I can tell you, I'm 67 years old and I wake up every morning with the awe and wonder of a child, so to speak, thinking “What in the world's going to happen next?”
Leonard Melman is a leading metal exploration, mining and investment authority who’s been writing about precious and base metals for a quarter century. At the upcoming April 4-5 Calgary Resource & Clean Energy Investment Conference, he will serve on the “Eye Opener” panel and present the “On the Road to Hyperinflation” workshop. Early in his career, Leonard gained valuable knowledge and experience as manager of multi-million dollar consumer lending operations and as a securities and commodity broker. In 1985, he started contributing a monthly column on precious and base metals to ICMJ's Prospecting and Mining Journal (and its predecessor, California Mining Journal) and also writes a monthly column entitled "Speculations" for Resource World Magazine.
By 2003, alert to the potential for an enormous bull market, he decided to write full time and recently launched his own website, www.themelmanreport.com. The Melman Report aims to provide top-quality, objective and factual information—“not ‘buy’ or ‘sell’ recommendations but information from personal observation and from reliable sources.” Aside from magazine articles that are specifically company-related, Leonard says that his goal in writing is “to apply the world of economics and politics to the world of metals and mining, and take the influence of one and project how it will affect the other.”
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http://www.marketoracle.co.uk/Article9854.html
Brian Tang: Bullish on Finite Resources
TGR: I know one of the companies you’re following is Commerce Resources Corp. (TSX.V:CCE) (PK SHEETS:CMRZF). Can you comment on them?
BT: Vincent, our geologist, will discuss Commerce.
Vincent Weber: With regard to Commerce, they’re focusing largely on their Upper Fir project. They did 131 HQ diameter drill holes totaling just over 26,000 meters in their last phase of drilling, and they’re targeting carbonatites that host tantalum and niobium mineralization. Tantalum is used for capacitors, like those used in cell phones; niobium is used for special alloys for steels. They just put together a 2,000-ton bulk sample on the Upper Fir Carbonatite, which they’re sending to a company in Richmond, B.C., for sampling to characterize the deposit. They’re also going to put together a flow sheet and a pilot test plant to try and determine the appropriate recovery method.
SR: We believe that Commerce is one of the companies that raised capital at the best time—when the market was at a peak, so based on their latest financial statements, they had about $22 million in cash at the end of July 2008 and that’s like 20 cents per share. Share prices are currently 24 cents per share, so the market value is very little for their projects.
http://jutiagroup.com/2009/02/07/brian-tang-bullish-on-finite-resources/
Global Tantalum Market to Exceed 6.95 Million Pounds Lbs. by 2012, According to New Report by Global Industry Analysts, Inc.
Commercialization of new tantalum deposits in recent years has put forth bright prospects for the tantalum industry. The global tantalum market is projected to exceed 6.95 million pounds (lbs.) by the year 2012, registering a CAGR of nearly 3.6%.
Increased usage of electronic equipment such as computers, mobile telephones, and video cameras, is expected to boost demand for tantalum capacitors. Consumption of tantalum metal for manufacturing sputtering targets is also projected to go up in the coming years. Furthermore, research activities for developing new applications for tantalum are underway.
Europe is the largest tantalum market in the world and is projected to reach 2.5 million pounds by the year 2010, as stated by Global Industry Analysts, Inc. Asia-Pacific is projected to offer the highest growth opportunity with a CAGR of 6.75% over the period 2001-2010. In North America, tantalum consumption in electronics industry is expected to reach 614.8 thousand pounds by 2010.
Tantalum: A Global Strategic Business Report Australia accounts for about 60% of global mine production of tantalum, followed by Brazil. The remaining share is occupied by Canada, and African countries such as Ethiopia, Rwanda and Mozambique. Tantalum is also obtained as a major byproduct from tin deposits in Nigeria and Malaysia.
The report titled "Tantalum: A Global Strategic Business Report" published by Global Industry Analysts, Inc., provides a review of global tantalum market, production scenario, product overview, product introductions/ innovations and recent industry activity. The study analyzes market data and analytics in volume sales for the period 1996-2015 by the following end-use segments - Electronics, Mill Products, Super Alloys, Metal Cutting, and Chemicals. Regions covered in the report include North America, Japan, Europe, Asia-Pacific (excluding Japan), Latin America and Rest of World.
Major market participants profiled include Angus & Ross, AS Silmet, Avalon Ventures, AVX, Cabot Corporation, Cabot Supermetals, H.C. Starck, Kemet Corporation, Lynas Corporation, Mitsui Mining & Smelting, Rusina Mining, Treibacher Industrie, Nichicon, Ulba Metallurgical Plant
For more details about this research report, please visit http://www.strategyr.com/Tantalum_Market_Report.asp
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world's largest market research publishers. The company employs over 700 people worldwide and publishes more than 880 full-scale research reports each year. Additionally, the company also offers a range of over 60,000 smaller research products including company reports, market trend reports, and industry reports encompassing all major industries worldwide.
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Commerce Resources: Tantalum and niobium potential
By Malcolm Bucholz
26 Mar 2009 at 08:56 PM GMT-04:00
Niobium need creates an opportunity for Canadian firm.
When investors talk about the metals markets, they generally get swept up into conversation about copper, nickel and so forth -- the popular metals.
However, there is more to the metals sector than just the popular ones. In fact, we often tend to watch the lesser known metals for unique trading and investing opportunities.
Our adventures of late have put us onto a Canadian story involving tantalum and niobium in the Province of British Columbia.
Niobium (or as some would call it columbium) is consumed mostly by the global steel industry in the form of ferro-niobium, which acts as a powerful alloy strengthener. Superalloys represent the other major end use for niobium. Tantalum is primarily used in the manufacture of capacitors for the technology world. Next time you use your cell phone,or your iPod you are doing so thanks to tantalum-based capacitors.
What intrigues me most about niobium is the notion that Brazil is sitting on the majority of future global supply. Any time one country is sitting on the bulk of a supply source, I get intrigued. Right now Brazil is pro-western in its ideology, but what if political sentiment changes? What if Brazil goes down the path of Venezuela, Ecuador and Bolivia?
Australia has been a major supplier of tantalum but earlier this year, the Aussie's shut down a major tantalum operation for economic reasons. And with that, 30% of global supply has been affected. The Democratic Republic of the Congo (DRC) is also a source of tantalum but given the political instability of this region, end users would be foolish to place any dependence on the DRC as a supplier. Hence, the future for tantalum could be interesting indeed.
Against this backdrop, it appears logical to conclude that there may be an opportunity at hand for a Canadian player to develop a new supply. And this is where Canadian based Commerce Resources enters into the picture. Commerce trades as CCE on the TSX Venture.
The Blue River Tantalum-Niobium Project is the focus of the team at Commerce Resources and excellent progress is being made on the Upper Fir portion of this project. In fact, Commerce has now stated that it is sitting on an indicated resource of 14.68M tonnes of ore at a cutoff grade of about one-third of a pound per ton (150 g/t). Average tantalum grade on the deposit is 190 g/tonne while average niobium grade is 1300 g/tonne (about 2.6 pounds per ton).
These grades and indicated quantities suggest that Commerce is sitting on the makings of something that could someday be an operating mine. With niobium trading at $20 per pound and tantalum trading at about $45 per pound, each ton of ore would have an economic value of about $65 which should be sufficient enough to economically support a mining operation assuming these prices hold.
In terms of valuation, market cap of Commerce Resources right now is about $20 million. Shares are trading for cash in the bank plus about $7 million in value assignable to the Blue River project.
Although niobium and tantalum prices have held together quite well of late, from here the team at Commerce needs to offer the markets some clarity on future milestones. For example, further drilling information to move this indicated tonnage into the proven category would be well received by the markets. In addition, Commerce needs to provide information on feasibility to clearly show investors the economics of the project as well as projected capex to put an operation into production. Lastly, Commerce needs to make some advances on the environmental front to satisfy investors that environmental hurdles will not hobble the project. Commerce is well cashed up to accomplish these goals. Financial statements as of Jan 2009 show $13 million cash in the till.
Once this clarity is offered, I dare say the markets will embrace the Commerce story and send the share price higher. A move above 25 cents will signal that a move has started. Watch carefully.
http://www.resourceinvestor.com/pebble.asp?relid=49287
TANTALUM is one of the most versatile corrosion-resistant metals known.
It combines the inertness of glass with the strength and ductility of low-carbon steel and with a much higher heat-transfer capability than glass. The relatively high cost of tantalum has been a limiting factor in its use, but where premium corrosion resistance is important, the cost can be justified.
Fabrication techniques, in which thin linings of tantalum are used in chemical processing equipment, result in equipment that has the acid corrosion resistance provided by tantalum but at a much lower cost than an all-tantalum construction. The long life and reliability of tantalum equipment in severe-corrosion applications can offset its higher initial cost. Table lists numerous applications for tantalum in the chemical processing industry and in other industries.
Most tantalum, (approximately 60%) is used in electronics, with tantalum capacitors being the largest application by far. The constant drive for smaller portable electronic devices with high reliability has increased the demand for tantalum capacitors.
The dielectric is tantalum oxide, and the capacitor packaging protects the tantalum from the environment, so this article does not dwell on this application. The most common compositions of tantalum are unalloyed cast (UNS R05200) and unalloyed sintered (UNS R05400); tungsten alloyed, Ta-2.5W (UNS R05252); and Ta-10W (UNS R05255). Ta-2.5W is selected for greater low-temperature mechanical strength than pure tantalum, and Ta-10W has superior high-temperature strength (service up to 2480 °C, or 4500 °F).
Tantalum is processed as a powder that can be sintered or remelted using an electron beam or vacuum arc. Ta-40Nb (UNS R05240) provides higher tensile and yield strength than pure tantalum, while retaining much of the chemical resistance at a lower cost.
"Blood Tantalum" Profiteers in Congo Set to Capitalize on Dramatic 2009 Price Spike for Australian Tantalum
By Marc Davis
The bloody civil war that is creating another humanitarian crisis in the central African nation of the Democratic Republic of the Congo (DRC) is set to get far worse because of events a world away in Australia.
That promises to be the case if the world’s leading tantalum supplier in Australia acts on a threat to almost double the metal’s price, beginning in January, 2009. Apparently, Perth-based Talison Minerals means business.
To underscore its resolve, Talison will cease mining tantalum altogether in early December – at least for the foreseeable future. This leaves only its existing stockpiles, which surely won’t compensate for the fact that the company’s two major mines accounted for no less than 50% of the world’s annual supply.
What’s the connection between the endless bloodshed in the DRC and the closing of a mine thousands of miles away due to the global recession? The tantalum in the DRC is far more inexpensively produced compared to mining operations in the Western world. And some of it can be extracted dirt cheap because of the brutal enslavement of civilian workforces -- including young children -- by armed factions.
Located in war-torn eastern Congo, these primitive open pit quarries are controlled by various militias, rebel groups and renegade elements of the Congolese army. These lawless thugs have profited for the past few years from the tantalum, which is known as “coltan” in Africa, by terrorizing rural communities and forcing locals to dig for this rare mineral by hand.
By the way, if you own a mobile phone or a laptop or any other portable electronic device, then there is a good likelihood that one or more of your devices contains “blood tantalum.” And the odds are about to increase that more of this illicit tantalum will find its way into your hands. That is if the price of tantalum jumps as much as the 80-85% increase recently demanded by Talison. This, in turn, will make cheaply produced black market Congolese tantalum all the more attractive to some unscrupulous processors of the metal -- even ones that are so desperate for ore that they are willing to turn a blind eye.
With the stakes so high, much of this blood-tainted mineral is already smuggled overseas by warlords or corrupt senior army officers for lucrative cash rewards. Or it is mixed with ore from legitimate Congolese mines, which are run by foreign and domestic companies in trouble-free parts of the country.
Human rights organizations claim that some processors are willing to buy tainted tantalum on the black market at bargain prices in China and Russia. Significantly, an estimated $750 million worth of profits from this illicit activity financed the war chests of the DRC’s feuding forces between 2000 and 2004, according to the United Nations.
About four to five million mostly civilian Congolese have died, primarily from disease and starvation, as a result of the civil war and the related collapse of the nation’s economy. Currently, an estimated 1,000 people are dying every day. Millions more have been displaced from their homes.
Talison Minerals claims they are being forced to dramatically raise prices for the type of high purity tantalum that is used in electronics because it represents only a small and largely unprofitable segment of their business. And one that is slackening due to the slowdown in the miniature electronics consumer market.
Furthermore, mining companies are now demanding long-term contracts with buyers to ensure steady supplies, according to Dan Lane, marketing director of AVX Corp., a major capacitor manufacturer.
Western politicians and tantalum industry experts, alike, argue that the ultimate solution to the DRC’s escalating humanitarian crisis is two-fold: outlaw blood tantalum and stabilize the world’s legitimate tantalum supplies.
There is considerable encouragement on one front: the future introduction of an internationally-sanctioned certification of origin protocol for tantalum may eventually choke off much of the black market for blood tantalum. Yet, the need to find new tantalum supplies in conflict-free, politically stable nations is proving to be a more problematic challenge. Especially since most of the world’s remaining tantalum supplies are located in other sometimes turbulent African nations.
Very few new sources of tantalum have emerged in recent years, even though the mining industry has spent billions of dollars on mineral exploration. There have been some reports of potential new deposits in South America, Egypt and the Middle East, however, there is far more interest in the discovery of new tantalum supplies in Western nations with low political and currency risk.
The suspension of tantalum operations at both of Talison’s Australian Wodgina and Greenbushes mines due to escalating production costs and the global recession will make it all the more difficult for end-users to source out conflict-free tantalum.
The economic and political repercussions of this scenario are not lost on Talison’s CEO, Peter Robinson, whose words have chilling implications for the DRC’s already traumatized population.
“Our goal is to bring Wodgina back into production as soon as the global situation improves and demand and prices are stronger…Without Talison’s supply, the majority of the world’s tantalum will come from irregular and unreliable suppliers from politically unstable regions, with much of it coming from the Democratic Republic of the Congo,” he says.
The advent of a sudden tantalum supply/demand imbalance could precipitate yet another dramatic price spike, like so many others that have plagued the tantalum market over the past several decades. All of which have been caused by a combination of strong demand and fears about supply shortages.
Any new supply problems could be exacerbated by the fact that there are new 21st Century markets for this high-tech metal -- not the least of which is the exponential growth in the use of tantalum capacitors in automobiles.
So the race is on to develop strong reserves of reliable and legitimate tantalum ore. Otherwise the temptation to profit from “blood tantalum” may too great and will continue to heap misery on the people of the DRC.
Marc Davis,
Mining Industry Writer
Tantalum Revealed: What We Should Know
While precious metal and base metal stocks continue to be the focus of investors, speciality metals such as tantalum offer equally attractive investment opportunities. Though they may be less glamorous, savvy mining investors have always remained loyal to companies with exposure to them. Despite the important role they play in the high-tech world and in our everyday life, tantalum seems to have remained under the radar of many investors.
Tantalum is a rare metal used in the production of electronics capacitors which find their way into cell phones, DVD players, personal computers, digital cameras, gaming platforms, LCD monitors and wireless devices. In other words, tantalum keeps us entertained, productive and connected. Tantalum is also used to make super alloys for jet engines, turbines, space vehicles, nuclear reactors, power plants and cutting tools. Its high strength, high ductility, high reliability, high corrosion resistance and high thermal conductivity support the diversity of applications.
Consequently, the demand for tantalum raw material has been on the rise but the inventories in the supply chain currently are low. The US Geological Survey (USGS) and the Tantalum-Niobium International Study Centre (TIC) predict the annual demand growth for tantalum to be 7% over the next 20 years. In other words from an estimated 6 million lb. world consumption in 2007, tantalum is expected to record a four-fold consumption increase in 20 years! To meet the future demand, the market will require additional production from new projects as well as expansions from existing operations.
The Tantalum Market
Tantalum supply comes from primary sources such as mining operations, as well as secondary sources such as recycled material, processor inventories, tin slags from old dumps containing low percentage material and the United States’ Defence Logistics Agency (USDLA) stockpile.
Much of the tantalum from primary sources reportedly comes from Australia with Africa, Brazil, Asia and Canada accounting for the remainder. Primary and secondary sources account for 70% and 30% of the tantalum supply respectively. A large majority of the primary raw materials derives from one source; Talison Minerals’ Wodgina mine in Western Australia. Several other smaller mines are found in Central Africa, Brazil, China and Canada.
Source: Talison Minerals, 2007
There are two notable developments in the supply chain for tantalum raw materials. The USDLA stockpile, whose contribution to the supply side of the market over the past five years should not be understated, has heavily depleted its stockpiled inventory. The removal of this stockpile from the supply equation leaves a large gap in the tantalum raw materials market. Consequently, this gap has been filled by raw materials processors and manufacturers drawing down their inventories. These two developments should lead to strengthened tantalum prices as new material is required for future demands.
Tantalum Price
Unlike other metals, tantalum does not trade as a commodity in recognised metal markets. Consequently, tantalum trades in negotiated markets. This leaves considerable power with suppliers particularly during an up market.
While volatile politics have constrained the development of tantalum mines in Central Africa, obscure regulatory environments have restricted new mines in other African and Middle Eastern countries. The development of new tantalum projects are also facing difficulties due to strict regulations implemented by the International Atomic Energy Agency (IAEA) over the transport of the raw materials. Some potential new projects may be stalled before even graduating to a mine!
Opportunity Developing
Against this backdrop, the investment case of companies with exposure to tantalum continues to increase. None of the mining giants such as BHP Billiton and Rio Tinto have a foot in the tantalum market. With Talison Minerals and their Australian mines being the dominant supplier to the world, there is certainly room for new players. The tantalum industry is experiencing a transitional period on a number of fronts and there exists only a handful of emerging companies poised to take advantage.
Rising demand for tantalum will provide existing companies with defined resources a distinct advantage. Interestingly, there are very few pure tantalum players. Troubles with the once-dominant Australian listed Sons of Gwalia have created an opportunity for emerging tantalum companies like these. The next two years will be exciting times as the emerging fresh faces vie for a place amongst the established suppliers.
Sources & Acknowledgements:
US Geological Survey (USGS), Tantalum-Niobium International Study Centre (TIC), US Defence National Stockpile Centre (DNSC), Comprehensive Strategic Analysis of the Tantalum Industry by Joel Jeangrand
Sam Kiri
Closing of Wodgina Mine Disrupts Tantalum Supply
By Andrew Burger
Mar 26 2009 3:36PM
Recent events in the tantalum market demonstrate how turmoil in the U.S. and global financial systems and the spreading recession is disrupting supply for key mineral resources.
Squeezed by higher mining costs, Australia's Talison Minerals, one of the world's leading producers of tantalum ore, began negotiating with key customers to as much as double prices late last year. With an uncertain economic outlook, buyers down the supply chain, particularly in the key electronics industry market, took a hard line and refused. The stand-off finally came to a head late last November with Talison announcing that it would suspend tantalum ore production at its Wodgina mine, the largest in the world.
Tantalum refining and processing is a market sector long dominated by Cabot Corp. and H.C. Starck Gmbh but which now includes more recent entrants from China, Thailand and Kazakhstan eager to carve out greater market share. For the past five years, consumers of tantalum have benefited from a surplus of ore built up during the late 1990s and early 2000s, as well as regular sales of ore and refined tantalum products stockpiled by the U.S. Defense Logistics Agency (“DLA”).
The former has now likely been all but worked off according to market analysts, however. The DLA sold the last of its tantalum minerals in 2007, and the last of its tantalum metal and oxide powders as of fiscal 2006, according to the U.S. Geological Survey (“USGS’). Additionally, recycling of tin ore from mine slag and dumps, which has accounted for as much as 30% of total tantalum supply in recent years, is now yielding diminishing returns and is suffering from relatively high recovery costs.
Supply Disruption
Tantalum is a critical element in the manufacture of high-quality electronic capacitors used in mobile phones, computers, video game consoles, digital cameras and a variety of other consumer electronics. It is also used in the production of turbines for the wind and aerospace industries, anti-corrosive materials and industrial tools.
The value of tantalum powder purchased by U.S. companies is expected to increase 2.1% annually, to $100 million in 2012, according to industry researchers at Freedonia. Hence, the breakdown of negotiations and Talison closing Wodgina may spark another spike in prices as buyers rush to secure new sources of supply. By the end of 2008, capacitor manufacturers were expecting the price of tantalum capacitors to increase anywhere from 13-40% in response to Talison's announcement, an electronics industry source was quoted as saying in a late January news report.
Even though it's difficult to obtain comprehensive, reliable estimates of processors and manufacturers' raw tantalum and refined products inventories, as well as the degree to which they are insulated from supply disruptions, there's little doubt that refiners are paying greater attention to those mining companies developing, or looking to develop, tantalum ore prospects.
Tantalum in Canada
Talison’s withdrawl from the market forces refiners and buyers to look further down the supply chain to source tantalum ore from less secure, less reliable and problematic sources. That puts a premium on any new sources of supply that can be developed in stable countries.
With production totaling 45 tons, Canada was the third-largest source of tantalum ore worldwide for the past two years, according to the USGS. All of that mineral was produced by the Tantalum Mining Corp. of Canada (Tanco) from its mine near the Whiteshell Provincial Park, about 180 kilometres east-northeast of Winnipeg. A subsidiary of Boston-based Cabot Corp.'s Cabot Specialty Fluids, all of Tanco's output is bought up and feeds into the parent company's refining and processing subsidiaries.
With tantalum reserves estimated at 3,000 tons, Canada is also home to a number of prospective tantalum resources. Vancouver-based Commerce Resources' Blue River Tantalum-Niobium Project in east-central British Columbia, however, is the only one being actively explored and is one of the most advanced projects in the world.
In 2007, just before the global equity markets began to slump, the company raised $32 million through a private placement. This allowed the company to hasten exploration in 2008 and conduct its most extensive drilling program to date, consisting of 131 holes stretching 26,281 meters.
This year, as a result of the cumulative exploration success to date, the company will begin the process of aggressively moving the project forward, more specifically focusing on moving its Upper Fir deposit through the development stages towards commercial production.
“We are indeed fortunate to have built a solid financial foundation to navigate relatively unaffected through this more difficult economic environment,” said Mr. David Hodge President of Commerce. “Our sound position enables us to push ahead with the development of our project towards commercial production. It is clear that there is a need for new tantalum production, particularly from stable political locations. We are focused on becoming the next producer.”
As a first step towards development, last fall a 2,000 tonne commercial metallurgical bulk sample was extracted from several locations at the Upper Fir and stockpiled in preparation for processing by Process Research Associates. The results from this work will allow Commerce to commence and complete a preliminary economic or scoping study. The study will be a significant step towards production and will give the company an early indication of the economics of a mining operation at Blue River. If positive, it shall lead to the feasibility and mine construction stages.
“Commerce Resources is actually faced with a situation that is quite in contrast to the overall global economic environment,” continued Mr. Hodge. “Tantalum is generally priced in long-term contracts that are negotiated between consumers and producers. There continues to be a strong need for tantalum for electronic applications as well as for the raw material to originate from clean origins.”
“With the current economic environment, tantalum consumers are eager to secure additional sources of supply with price stability,” he added.
China's commodity market embraces rebound potential, analyst
Tuesday, March 17, 2009 4:05 AM
China's commodity market is prepared for a bull run that may last three to five months on fundamental supports from macro economy as well as from industries, said an analyst with Xinhu Futures, adding the past period of panic selling has gone over.................
http://www.istockanalyst.com/article/viewiStockNews/articleid/3123083
ANALYSIS - Recession fight may lift commods more than economy
By John Parry and Barani Krishnan
Thu Mar 12, 2009
NEW YORK (Reuters) - Massive government debt issuance to fight the worst recession in many decades may push commodity prices higher without boosting industrial output.
This stagflation scenario, feared by some economists, is not on the horizon yet. Since 2009 began, macroeconomic data suggests the industrialized world is experiencing zero inflation, even deflation, from falling prices of energy, cars, houses, stocks and non-government bonds.
But as central banks and governments print vast quantities of currencies to pay their way out of the downturn, the huge expansion of money supply may well stoke a major upsurge in inflation by early as 2010 as speculators rush back into commodity markets, economists caution.
Analysts expect U.S. Treasury debt issuance to hit $2.5 trillion this year alone, threatening to inundate the $6 trillion government debt market.
If speculators fuel a surge in commodity futures prices, this would make raw materials more expensive for industries already struggling with slow sales in a recession. It would also erode wealth for investors in bonds and fixed income products.
"The best bet is that we are going to experience some uncomfortable inflation in 2010 and 2011," said Bill Tedford, director of fixed income strategy at Stephens Capital Management in Little Rock, Arkansas.
He said the ultimate danger would be stagflation: a toxic combination of a stagnant or shrinking economy against a backdrop of rising prices.
"This would imply higher commodity prices without a corresponding rise in industrial activity," Tedford said.
A study of U.S. recession cycles shows commodity markets largely following the trend in equities and other global markets during periods of severe cash crunch.
The Reuters Jefferies-CRB index, a global commodities benchmark, did not show any remarkable climb during the recession of the early 1990s, caused by a surge in industrial production and manufacturing trade sales.
The index was also tame during the contraction that followed the bursting of the dotcom bubble, the Sept 2001 attacks against the United States and the Enron scandal.
The only recession periods when the RJ/CRB index spiked was during the 1973-75 and 1980-82 years, when the downturns were sparked by an escalation in oil prices.
Economists fear that record high prices of oil, metals and grains could prevent an economic recovery.
"With a ballooning money supply, stagnation with high inflation would be a more-significant risk," said Bruce McCain, chief investment strategist at Key Private Bank in Cleveland, Ohio.
"By definition, inflation is a 'generalized' rise in the price level, but actual price increases should be most intense for items in short supply and weakest for items where there is ample supply. Energy and other commodities were in short supply as the economy grew over the last year or so, and we think that will probably continue as world growth recovers," McCain said.
Crude oil prices have slumped to below $50 a barrel from a record high above $147 last summer as consumer demand tumbled.
Theresa Gusman, global head of commodities at DB Advisors, Deutsche Bank's institutional asset management business, said oil may go over $147 in coming years as the economy rebounds.
"I'm not saying that's going to happen in the next two years, but over time we will exceed that level," she said.
George M. Constantinides, Leo Melamed Professor of Finance at the Booth School of Business at the University of Chicago, concurs.
"Something drastic will have to happen with these low prices of oil because most oil-producing countries make their budgets on the assumption of oil prices being at least at $65," Constantinides said. "If this goes on, some of those countries may go bankrupt, and that will force the price back up."
If commodities soar again while the economy declines, there will be little recourse for central banks. For instance, the U.S. Federal Reserve has cut interest rates to practically zero and boosted money supply to fill stimulus packages meant to rescue teetering financial institutions and securities markets.
"I am sure that the Fed intends to reverse this stimulus before it causes inflation but, in this weak economic environment, I don't see how they can do that without prematurely forcing rates higher and thus further crippling the economy," said Stephens Capital's Tedford.
http://in.reuters.com/article/businessNews/idINIndia-38466520090312?sp=true
>I hope that you're correct about the world's economy. A lot of nations are pumping out money to support their economies.
Naturally growth will support all commodities.
Energy guy recommended this investment to me and I'm happy that I have a position.
sumi
Link still works on my end..,& reminds me to get my hands on some Tantalum when& if funds become available.
Surely the world's economy can't be going down for the count?
futrcash
some more infos on Tantalum and Niobium
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=34895587
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=34895653
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=34895671
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=34895717
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=34895885
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=34895894
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=34895943
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=34895988
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=34896063
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=34896210
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=34896379
some Tantalum and niobium information
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=35372027
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=35372351
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=35372548
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=35372689
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=35372758
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=35373443
Energy
I think you like that numbers
GFTB, thanks...I will certainly read them. :)
I like numbers and logic.
Tantalum: A Tantalizing Commodity Investment Opportunity
By W. Lorimer Wilson
18 Jul 2007 at 11:23 AM GMT-04:00
http://www.resourceinvestor.com/pebble.asp?relid=33992
There are major 'unmined' profits to be had by investing in one or more of the tantalum junior explorer companies.
TORONTO (ResourceInvestor.com) -- I’m sure you’ve heard of gold, silver, platinum, palladium, uranium and perhaps even molybdenum but have you ever heard of vanadium, cadmium, lithium, rhenium, niobium or tantalum? This essay is limited to an examination of tantalum (Ta) and what the companies that explore for, mine and process tantalum might expect in the prices of their shares given the possible shortage of a product that is used in many, many areas of our lives.
What Is Tantalum?
Tantalum is a rare metal found in Australia (56%), Africa (19%), Brazil (16%), China (5%) and Canada (4%). This high performance metal has a high melting point, high strength, high ductility, high reliability, high resistance to corrosion and high thermal conductivity making it a highly efficient, highly reliable and environmentally versatile component for use in a wide variety of applications that contribute significantly to our economy and way of life.
What Is the Market for Tantalum?
The largest application for tantalum (approximately 68%) is in the electronics capacitor industry in such products as cell phones, DVD players, personal computers, digital cameras, gaming platforms, LCD monitors, wireless devices, telephone switch boards and computer networks because of its unequalled capacity to store and release electrical charges. Other electronics applications (11%) are in PC memory chips, igniter chips for car air bags and other automotive electronics.
In addition, tantalum is used in the manufacture of super alloys (8%) for jet engines, turbines, space vehicles, nuclear reactors, power plants and chemical equipment due to its extreme hardness; in the manufacture of carbides (5%) for cutting tools, drill bits, excavator and bulldozer teeth and the forming of dies; in sputtering targets (2%) for use as optical coatings, memory chips and silicon wafers for use in microcompressors; in military and recreational ammunition (1%) and in the manufacture of a variety of other products (3%) such as rayon fibres, heat shields, ink jet printers, x-ray film, hip and knee replacement systems (because of its non-corrosive nature) and in the manufacture of surgical instruments and appliances.
What Is the Demand for Tantalum?
According to the U.S. Geological Survey Mineral Commodity Summaries report and the Tantalum-Niobium International Study Center:
World-wide demand for tantalum is currently (2006) 6 million pounds per year;
Consumption has been increasing approx. 7% per annum over the past 20 years;
Primary mine production has increased 38% since 2004 to 2.84 million pounds in 2006;
The U.S. imports 87% of its 1.5 million pounds annual requirement (the balance reclaimed from recycling) and, according to the U.S. Defense Logistics Agency;
The U.S.’s current stockpile of tantalum will be depleted by the end of 2007 at current disposal rates.
The above facts add up to an impending major imbalance in supply and demand starting in 2008 and quite possibly a major escalation in the price per pound of tantalum in the years ahead.
What Is the Current Price of Tantalum?
Tantalum is not traded on the commodity metals markets but, rather, the price is freely negotiated between supplier and processor. As such, over the past 30 years, the tantalum market has been marked by long periods of stability, punctuated by very sharp price hikes created by a combination of strong demand and fear about a shortage of supply. Such was the case in 1999 and 2000 when many buyers of tantalum capacitors falsely believed there was a shortage and speculators and traders took advantage of the lack of communication between the various players and increased the price per pound from $30/lb or so in 1999 to in excess of $240/lb in 2000. This perceived shortage caused panic-buying by major companies to increase their inventories which only now are becoming depleted. This had the effect of drastically reducing the demand for and price of tantalum.
The 2006 year end average price per pound of contained tantalum pentoxide (Ta205), also called tantalum concentrate, was $32.40 ($15/kg) while that of tantalum oxide powder (Ta) was somewhere around $500/kg and tantalum metal ingot was a reported $700/kg, up from a low of $200/kg in August, 2002. Be that as it may, prices can vary greatly because the market is relatively small. In the opinion of Ed Hone, the author of a March, 2007 article on tantalum as it related to the business prospects of a specific company he was reviewing, “Ta has gotten a lot more expensive than the USGS’s paltry $32.40. After all, the U.S. government carries gold on the books at $42.50 per ounce.”
From what we know about the many and growing market applications for tantalum, the impending supply shortage of tantalum, the present low price for tantalum and the historic high price tantalum commanded just a few years ago it is evident that the future price of tantalum has no where to go but up – big time!
How Can an Investor Profit From Tantalum?
There are major ‘unmined’ profits to be had by investing in one or more of the tantalum junior explorer companies (12 in total of which 5 are major); mining companies (14 in total with 4 producing 60% of the world’s supply); processor companies (9 of which 3 supply 80%); producer companies (26 in total of which 8 are major); integrators and recyclers. It behoves you to investigate the companies involved that are publicly traded (shares and warrants where the case may be), do your analyses, make an informed choice as to which ones to invest in and deploy your investment dollars accordingly. Tantalum is, indeed, a tantalizing investment opportunity that warrants further study. Do so and you may be on to something big!
Joel Jeangrand’s paper on “Comprehensive Strategic Analysis of the Tantalum Industry” 2005 and Ed Hone’s article of March, 2007 on tantalum are hereby acknowledged.
W. Lorimer Wilson is a Canadian investor and a frequent guest contributing editor.
guy, I posted tons of information about Niobium and Tantalum on the srsr board. you may be interested to follow my posts there :) I will post interesting stuff refering NB and TA from now on here on CCE board too...
wish you a nice weekend
Goforthebet, good article about niobium! I especially appreciate the part which explains how much niobium is used with each ton of steel produced. :)
Tantalum: A Tantalizing Commodity Investment Opportunity
By W. Lorimer Wilson
18 Jul 2007 at 11:23 AM GMT-04:00
found it here:
http://www.resourceinvestor.com/pebble.asp?relid=33992
There are major 'unmined' profits to be had by investing in one or more of the tantalum junior explorer companies.
TORONTO (ResourceInvestor.com) -- I’m sure you’ve heard of gold, silver, platinum, palladium, uranium and perhaps even molybdenum but have you ever heard of vanadium, cadmium, lithium, rhenium, niobium or tantalum? This essay is limited to an examination of tantalum (Ta) and what the companies that explore for, mine and process tantalum might expect in the prices of their shares given the possible shortage of a product that is used in many, many areas of our lives.
What Is Tantalum?
Tantalum is a rare metal found in Australia (56%), Africa (19%), Brazil (16%), China (5%) and Canada (4%). This high performance metal has a high melting point, high strength, high ductility, high reliability, high resistance to corrosion and high thermal conductivity making it a highly efficient, highly reliable and environmentally versatile component for use in a wide variety of applications that contribute significantly to our economy and way of life.
What Is the Market for Tantalum?
The largest application for tantalum (approximately 68%) is in the electronics capacitor industry in such products as cell phones, DVD players, personal computers, digital cameras, gaming platforms, LCD monitors, wireless devices, telephone switch boards and computer networks because of its unequalled capacity to store and release electrical charges. Other electronics applications (11%) are in PC memory chips, igniter chips for car air bags and other automotive electronics.
In addition, tantalum is used in the manufacture of super alloys (8%) for jet engines, turbines, space vehicles, nuclear reactors, power plants and chemical equipment due to its extreme hardness; in the manufacture of carbides (5%) for cutting tools, drill bits, excavator and bulldozer teeth and the forming of dies; in sputtering targets (2%) for use as optical coatings, memory chips and silicon wafers for use in microcompressors; in military and recreational ammunition (1%) and in the manufacture of a variety of other products (3%) such as rayon fibres, heat shields, ink jet printers, x-ray film, hip and knee replacement systems (because of its non-corrosive nature) and in the manufacture of surgical instruments and appliances.
What Is the Demand for Tantalum?
According to the U.S. Geological Survey Mineral Commodity Summaries report and the Tantalum-Niobium International Study Center:
World-wide demand for tantalum is currently (2006) 6 million pounds per year;
Consumption has been increasing approx. 7% per annum over the past 20 years;
Primary mine production has increased 38% since 2004 to 2.84 million pounds in 2006;
The U.S. imports 87% of its 1.5 million pounds annual requirement (the balance reclaimed from recycling) and, according to the U.S. Defense Logistics Agency;
The U.S.’s current stockpile of tantalum will be depleted by the end of 2007 at current disposal rates.
The above facts add up to an impending major imbalance in supply and demand starting in 2008 and quite possibly a major escalation in the price per pound of tantalum in the years ahead.
What Is the Current Price of Tantalum?
Tantalum is not traded on the commodity metals markets but, rather, the price is freely negotiated between supplier and processor. As such, over the past 30 years, the tantalum market has been marked by long periods of stability, punctuated by very sharp price hikes created by a combination of strong demand and fear about a shortage of supply. Such was the case in 1999 and 2000 when many buyers of tantalum capacitors falsely believed there was a shortage and speculators and traders took advantage of the lack of communication between the various players and increased the price per pound from $30/lb or so in 1999 to in excess of $240/lb in 2000. This perceived shortage caused panic-buying by major companies to increase their inventories which only now are becoming depleted. This had the effect of drastically reducing the demand for and price of tantalum.
The 2006 year end average price per pound of contained tantalum pentoxide (Ta205), also called tantalum concentrate, was $32.40 ($15/kg) while that of tantalum oxide powder (Ta) was somewhere around $500/kg and tantalum metal ingot was a reported $700/kg, up from a low of $200/kg in August, 2002. Be that as it may, prices can vary greatly because the market is relatively small. In the opinion of Ed Hone, the author of a March, 2007 article on tantalum as it related to the business prospects of a specific company he was reviewing, “Ta has gotten a lot more expensive than the USGS’s paltry $32.40. After all, the U.S. government carries gold on the books at $42.50 per ounce.”
From what we know about the many and growing market applications for tantalum, the impending supply shortage of tantalum, the present low price for tantalum and the historic high price tantalum commanded just a few years ago it is evident that the future price of tantalum has no where to go but up – big time!
How Can an Investor Profit From Tantalum?
There are major ‘unmined’ profits to be had by investing in one or more of the tantalum junior explorer companies (12 in total of which 5 are major); mining companies (14 in total with 4 producing 60% of the world’s supply); processor companies (9 of which 3 supply 80%); producer companies (26 in total of which 8 are major); integrators and recyclers. It behoves you to investigate the companies involved that are publicly traded (shares and warrants where the case may be), do your analyses, make an informed choice as to which ones to invest in and deploy your investment dollars accordingly. Tantalum is, indeed, a tantalizing investment opportunity that warrants further study. Do so and you may be on to something big!
Joel Jeangrand’s paper on “Comprehensive Strategic Analysis of the Tantalum Industry” 2005 and Ed Hone’s article of March, 2007 on tantalum are hereby acknowledged.
W. Lorimer Wilson is a Canadian investor and a frequent guest contributing editor.
Sumi, sometimes links don't work over a length of time. When I clicked on to the link on the Wilson article about "Tantalum a Tantalizing Investment Opportunity" nothing happened...no article.
GCC equities in Bank Sarasin's 'Top-10' 2009 investments
by Neeraj Gangalon Friday, 06 March 2009
http://www.arabianbusiness.com/548862--gcc-equities-in-bank-sarasins-top-10-investment-themes-for-09-
FUTURE WATCH: The bank’s CIO sees $80 a barrel as a sustainable level for oil in the long term.
Bank Sarasin has recommended Gulf States' equities as one of its 10 key investment themes in 2009.
The Swiss private bank’s Chief Investment Officer, Burkhard Varnholt expressed confidence about the Gulf states and hailed UAE's $10bn bond move as a 'highly welcome' step. This "only serves to solidify the fundamental investment case for the Gulf States," he said in a company press release.
Varnholt feels the Gulf States are resilient due to the following factors:
• They currently offer the cheapest valuations in seven years;
• They are generally well-managed, family-run companies;
• They have solid corporate balance sheets; and
• They are fundamentally attractive because of their resource wealth.
The bank’s CIO sees $80 a barrel as a sustainable level for oil in the long term. “"Oil prices at $30-40 a barrel are not sustainable. I think $80 a barrel is sustainable over the long term, but we probably won't see that in 2009. I expect the price to easily reach $80 or more in 2010", he said.
"The recovery in demand will support a price rise, but also supply bottlenecks, due to an inadequate investment in exploration equipment and maintenance, for example. But in the short term, as net exporters of oil and gas, the Gulf States will continue to make money. They are still break-even, even at $35 per barrel. This is not the case in Venezuela or Russia".
Sarasin has recently launched the Sarasin GCC Equity Opportunities Fund. The Fund offers exposure to Saudi Arabia, Kuwait, Qatar, Bahrain, Oman and the United Arab Emirates.
Varnhold feels that asset allocation holds the key for investment performance in 2009. The current crisis is creating "once-in-a-generation" opportunities for investors, encouraging them to be both open-minded and contrarian, he said in the press note.
Investors need to scrutinize the long-term sustainability of business models in order to assess risk, Varnhold suggested. A thematic allocation process, which provided important protection, even if limited, from a globalized, interdependent economy in 2008, should also be adopted in 2009, he added.
To hedge against the possibility of policy and economic failures, Sarasin recommends investing a 10% portfolio allocation in gold, which may also serve as hedge against the next wave of reflation and the potential devaluation of the US Dollar.
Varnholt has outlined 10 investments which he believes will be positive for investors in 2009.
These include Chinese A-shares, Gulf States' equities, selected sustainable water companies (i.e. desalination, metering, treatment, irrigation etc.), rare materials such as tantalum and platinum, wheat, grain, corn and fertilizer companies, Norwegian and Swedish Kronas, the Pound Sterling, Asian currencies (except the Hong Kong Dollar), selected convertible bonds, sustainable real estate developers and selected renewable energy companies.
Bank Sarasin launches GCC equity fund
Bank's Dubai-based asset management firm aims to raise $100mn in Q1 of 2009
Niobium demand expected to pick up in 2010
LONDON (Metal-Pages) 18-Feb-08. A strong recovery in demand for niobium should take place in 2010, though declining auto sales are expected to impact heavily on the use of niobium in ferritic stainless steel in 2009, metals consultants Roskill Information Services say.
In the stainless steel sector, niobium is used mainly in ferritic stainless, notably in automobile exhausts.
"2009 will not be a good year in this market; vehicle production forecasts are grim and Roskill expects total stainless steel demand to be nearly 20% down from its 2007 peak," Roskill says in the just-released 11th edition of its 'Economics of Niobium' report.
"In the longer term, this could be a significant growth market for niobium, particularly if continuing volatility in nickel prices leads to a large-scale and permanent switch from the use of nickel-bearing austenitic stainless to nickel-free ferritic steels," said the consultancy.
There is ample scope for niobium consumption to grow considerably in some parts of the world, particularly given global demand for gas linepipe is likely to remain buoyant for many years, the report underlines.
High-pressure linepipe is dependent on the use of high strength low alloy (HSLA) steel grades for which niobium is essential.
Last year, the overall unit consumption of niobium in steel was around 55-60g/tonne of steel produced.
In more highly developed countries the figure was 100g/tonne or more, while in China only around 40g/tonne were consumed meaning significant potential for the increased use of niobium.
Last year, around 10% of the steel produced globally contained niobium, but that share could reach as high as 20% in future with increased demand for HSLA steels, stainless steels and super-alloys, the report outlines
CCE exhibit again on the biggest yearly mining conference in Canada: PDAC 2009
CCE and Sarrisa (SRSR) listed under Session A - the only exhibitor for Niobium
http://www.pdac.ca/pdac/conv/2009/exhibitors-core-shack.html
Tantalum: A Modern Metal, Actually
Written by Tom Vulcan
Tuesday, 13 January 2009 10:36
http://www.hardassetsinvestor.com/features-and-interviews/1/1376-tantalum-a-modern-metal-actually.html
TANTALUM
A TANTALIZING COMMODITY INVESTMENT OPPORTUNITY
by W. Lorimer Wilson
July 20, 2007
http://www.financialsense.com/fsu/editorials/wilson/2007/0720.html
Commerce Resources Corp. Options Carbo Rare Earth Property to Canadian International Minerals Inc.
Tuesday February 10, 11:58 am ET
http://biz.yahoo.com/cnw/090210/commerce_resourc_corp.html?.v=1
VANCOUVER, Feb. 10 /CNW/ - Commerce Resources Corp. (TSXv: CCE) (FSE: D7H) (the "Company") announces that it has entered into a Mineral Property Option Agreement with Canadian International Minerals Inc. (CNSX: CIN) ("CIN"). Under the terms of the agreement, CIN will acquire a 75% interest in and to the Carbo Claims, subject to regulatory approval.
The Carbo Claims consist of five mineral claims, located approximately 80 km northeast of Prince George, British Columbia. The Carbo Claims cover a series of niobium and rare earth element bearing, dike- or sill-like carbonatites and syenites. The carbonatite plugs, dykes and sills occupy a northwest striking zone at least 8 km in length. The carbonatites vary in composition from sovites, pyroxene rich carbonatites, and ferro-carbonatites.
Historic Exploration
--------------------
Based upon historic exploration by Teck Corporation, in 2006, the Company conducted an exploration program including rock and soil samples, a geophysical survey and limited geologic mapping. A follow-up exploration program in 2007 included the collection of an additional 16 rock samples. Five samples of alkaline intrusives contained high REE and niobium concentrations.
The companies are both encouraged that the scale of the intrusive system coupled with the diverse styles of mineralization observed to date provide good potential for significant rare-metal and/or precious metal mineralization.
In 2009, CIN expects to complete an exploration program consisting of geological mapping, soil and rock geochemical sampling, and trenching.
In consideration for the interest in the Carbo Claims, CIN will pay to the Company a total of $30,000 cash: $10,000 on signing of the agreement (paid), $10,000 on the first year anniversary and $10,000 on the second year anniversary. CIN will also issue the Company a total of 1,500,000 common shares: 500,000 common shares with five days of the filing of the property acquisition with the CNSX, 500,000 common shares on the first year anniversary and 500,000 common shares on the second year anniversary. CIN is also required to incur a total of $198,000 in exploration expenditures on the Carbo Claims: $66,000 in the first year of the agreement, $66,000 in the second year and $66,000 in the third year. The Company will also retain a 2% NSR Royalty on the Carbo Claims.
Jody Dahrouge, P.Geol., a qualified person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.
On Behalf of the Board of Directors
COMMERCE RESOURCES CORP.
"David Hodge"
-------------
David Hodge
President and Director
Tel: 604.484.2700
The TSX Venture Exchange has neither approved nor disapproved the
information contained herein
Statements in this document which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward-looking statements in this release include the planning of the 2009 summer exploration program and the completion of the option agreement with Commerce Resources Corp.
It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Risks and uncertainties include, but are not limited to, economic, competitive, governmental, environmental and technological factors that may affect the Company's operations, markets, products and prices. Factors that could cause actual results to differ materially may include misinterpretation of data; that we may not be able to get equipment or labour as we need it; that we may not be able to raise sufficient funds to complete our intended exploration and development; that our applications to drill may be denied; that weather, logistical problems or hazards may prevent us from exploration; that equipment may not work as well as expected; that analysis of data may not be possible accurately and at depth; that results which we or others have found in any particular location are not necessarily indicative of larger areas of our property; that we may not complete environmental programs in a timely manner or at all; market prices for tantalum & niobium may not justify commercial production costs; and that despite encouraging data there may be no commercially exploitable mineralization on our properties. Readers should refer to the risk disclosures outlined in the Company's Management Discussion and Analysis of its audited financial statements filed with the British Columbia Securities Commission.
For further information
David Hodge, President and Director, Tel: (604) 484-2700
--------------------------------------------------------------------------------
Source: Commerce Resources Corp.
“Blood Tantalum” Profiteers in Congo Set to Capitalize on Dramatic 2009 Price Spike for Australian Tantalum
By Marc Davis, President, Davis & Associates Capital Corp.
05 Dec 2008 at 11:38 AM GMT-05:00
http://www.resourceinvestor.com/pebble.asp?relid=48509
The bloody civil war that is creating another humanitarian crisis in the central African nation of the Democratic Republic of the Congo (DRC) is set to get far worse because of events a world away in Australia.
VANCOUVER (ResourceInvestor.com) -- That promises to be the case if the world’s leading tantalum supplier in Australia acts on a threat to almost double the metal’s price, beginning in January, 2009. Apparently, Perth-based Talison Minerals means business.
To underscore its resolve, Talison will cease mining tantalum altogether in early December – at least for the foreseeable future. This leaves only its existing stockpiles, which surely won’t compensate for the fact that the company’s two major mines accounted for no less than 50% of the world’s annual supply.
What’s the connection between the endless bloodshed in the DRC and the closing of a mine thousands of miles away due to the global recession? The tantalum in the DRC is far more inexpensively produced compared to mining operations in the Western world. And some of it can be extracted dirt cheap because of the brutal enslavement of civilian workforces -- including young children -- by armed factions.
Located in war-torn eastern Congo, these primitive open pit quarries are controlled by various militias, rebel groups and renegade elements of the Congolese army. These lawless thugs have profited for the past few years from the tantalum, which is known as “coltan” in Africa, by terrorizing rural communities and forcing locals to dig for this rare mineral by hand.
By the way, if you own a mobile phone or a laptop or any other portable electronic device, then there is a good likelihood that one or more of your devices contains “blood tantalum.” And the odds are about to increase that more of this illicit tantalum will find its way into your hands. That is if the price of tantalum jumps as much as the 80-85% increase recently demanded by Talison. This, in turn, will make cheaply produced black market Congolese tantalum all the more attractive to some unscrupulous processors of the metal -- even ones that are so desperate for ore that they are willing to turn a blind eye.
With the stakes so high, much of this blood-tainted mineral is already smuggled overseas by warlords or corrupt senior army officers for lucrative cash rewards. Or it is mixed with ore from legitimate Congolese mines, which are run by foreign and domestic companies in trouble-free parts of the country.
Human rights organizations claim that some processors are willing to buy tainted tantalum on the black market at bargain prices in China and Russia. Significantly, an estimated $750 million worth of profits from this illicit activity financed the war chests of the DRC’s feuding forces between 2000 and 2004, according to the United Nations.
About 4-5 million, mostly civilian Congolese, have died--primarily from disease and starvation--as a result of the civil war and the related collapse of the nation’s economy. Currently, an estimated 1,000 people are dying every day. Millions more have been displaced from their homes.
Talison Minerals claims they are being forced to dramatically raise prices for the type of high purity tantalum that is used in electronics because it represents only a small and largely unprofitable segment of their business. And one that is slackening due to the slowdown in the miniature electronics consumer market.
Furthermore, mining companies are now demanding long-term contracts with buyers to ensure steady supplies, according to Dan Lane, marketing director of AVX Corp., a major capacitor manufacturer.
Western politicians and tantalum industry experts, alike, argue that the ultimate solution to the DRC’s escalating humanitarian crisis is two-fold: outlaw blood tantalum and stabilize the world’s legitimate tantalum supplies.
There is considerable encouragement on one front: the future introduction of an internationally-sanctioned certification of origin protocol for tantalum may eventually choke off much of the black market for blood tantalum. Yet, the need to find new tantalum supplies in conflict-free, politically stable nations is proving to be a more problematic challenge. Especially since most of the world’s remaining tantalum supplies are located in other sometimes turbulent African nations.
Very few new sources of tantalum have emerged in recent years, even though the mining industry has spent billions of dollars on mineral exploration. There have been some reports of potential new deposits in South America, Egypt and the Middle East, however, there is far more interest in the discovery of new tantalum supplies in Western nations with low political and currency risk.
The suspension of tantalum operations at both of Talison’s Australian Wodgina and Greenbushes mines due to escalating production costs and the global recession will make it all the more difficult for end-users to source out conflict-free tantalum.
The economic and political repercussions of this scenario are not lost on Talison’s CEO, Peter Robinson, whose words have chilling implications for the DRC’s already traumatized population.
“Our goal is to bring Wodgina back into production as soon as the global situation improves and demand and prices are stronger…Without Talison’s supply, the majority of the world’s tantalum will come from irregular and unreliable suppliers from politically unstable regions, with much of it coming from the Democratic Republic of the Congo,” he says.
The advent of a sudden tantalum supply/demand imbalance could precipitate yet another dramatic price spike, like so many others that have plagued the tantalum market over the past several decades. All of which have been caused by a combination of strong demand and fears about supply shortages.
Any new supply problems could be exacerbated by the fact that there are new, 21st century markets for this high-tech metal -- not the least of which is the exponential growth in the use of tantalum capacitors in automobiles.
This looming supply quandary is being viewed as a call to action for a small Canadian tantalum exploration and development company called Commerce Resources. It is proving up a tantalum deposit in southeastern British Columbia, one that could more than easily replace Congo’s supplies of blood tantalum, the company says.
Additionally, Commerce believes it has enough tantalum supplies to enter into long-term contracts with reputable, ore-hungry processors.
Without a doubt, Commerce’s plans to commercialize its Upper Fir tantalum deposit by 2010 or early 2011 won’t come a moment too soon in terms of helping to satisfy burgeoning worldwide demand.
So the race is on to develop strong reserves of reliable and legitimate tantalum ore. Otherwise the temptation to profit from “blood tantalum” may too great and will continue to heap misery on the people of the DRC.
Sorry, I haven't been in contact with Commerce for a while now. When I do, I will find out about the 43-101.
We are witnessing a period of forced liquidation. The latter is the primary reason for the pps continued drop off.
sumi
Sumisu, do you know when CC released its NI43-101?
Any idea why the pps dropped off recently?
Commerce Resources Corp. Updates Development and Exploration Activities at Blue River Tantalum and Niobium Project
Thursday December 4, 3:14 pm ET
http://biz.yahoo.com/cnw/081204/commerce_res_update.html?.v=1
VANCOUVER, Dec. 4 /CNW/ - Commerce Resources Corp. (TSXv: CCE) (FSE: D7H) (the "Company") is pleased to advise that the 2008 summer exploration and development program at the Company's Blue River Tantalum and Niobium Project in east-central British Columbia has been successfully completed.
During 2008, a total of 131 HQ diameter drill holes, totaling 26,281 m, were completed at the following locations:
- Upper Fir Carbonatite - 118 drill holes
- Switch Creek Carbonatite - 3 drill holes
- Hodgie 'Rare Earth' Zone - 4 drill holes
- Lower Gum Creek Zone - 6 drill holes
In addition, a bulk sample of approximately 2,000 tonnes of material from the Upper Fir Carbonatite was collected and stockpiled on the property. Regional exploration conducted during 2008 identified several new tantalum-niobium, rare earth (REE), and/or carbonatite occurrences on the property.
Upper Fir Carbonatite
---------------------
The 2008 drilling of the Upper Fir Carbonatite, was completed on November 3, 2008. The intent of this program was to both infill and expand upon the existing tantalum and niobium resource base. Prior to 2008, 40 holes totaling 8,558 m were completed at the Upper Fir deposit. During 2008, an additional
118 HQ diameter drill holes totaling 23,724 m were completed. Approximately 4,663 m of carbonatite was intersected by this drill program. All carbonatite was cut, with one half of the core sampled and sent for analysis to ACME Analytical Laboratories Ltd. in Vancouver, British Columbia.
The Company anticipates that it will receive complete analytical results for the 2008 drill program during the next few months. Some highlights from the program are as follows:
- 139.86 m of carbonatite was intersected in hole F-08-88 (thickness is apparent);
- 96.77 m, of continuous carbonatite was intersected in hole F-08-111 (thickness is apparent);
- 70.08 m true thickness of carbonatite was intersected in hole F-08-153; the southernmost hole completed to date.
Drilling to date has shown the Upper Fir Carbonatite to extend over 1,300 m in a north-south direction, and approximately 600 m in an east-west direction. The final hole of the 2008 summer exploration program, F-08-153, was completed at a location approximately 100 m further south than the nearest hole in an attempt to constrain the southerly extent of the carbonatite. This vertical hole intersected greater than 70 m of carbonatite (true thickness) representing a potentially new and significant zone south of the main deposit. A map of the drill plan is available on the company's website.
Upper Fir Bulk Sample
---------------------
The bulk sampling program was completed in early November. Approximately 2,000 tonnes of carbonatite was extracted from 17 benches at three different sample pits. The material has been stockpiled in preparation for transport and processing by Process Research Associates Ltd. ("PRA") of Richmond, B.C. Samples have been shipped to ACME Analytical Laboratories Ltd. of Vancouver, BC, for analysis.
The work will extend the characterization program previously completed as well as provide information which will support the development of a preliminary flow sheet for a pilot plant program to be conducted at PRA's facility.
Switch Creek Carbonatite
------------------------
Three holes were completed at the Switch Creek Carbonatite to follow-up drilling completed during 2007. A total of 486.33 m was drilled, with approximately 55.52 m of carbonatite intersected. As a result of the strongly fractured and faulted bedrock encountered, the recovery of core was poor.
Hodgie Rare Earth Zone
----------------------
Exploration conducted during 2008 confirmed the significance of a rare-earth element (REE) occurrence identified during the later part of 2007 and named the 'Hodgie Zone'. It is located approximately 2 kilometres southeast and upslope of the Upper Fir Carbonatite.
Prospecting within the Hodgie area suggests that rare-earth mineralization may be comprised of several zones extending at least 2,000 meters along strike. A total of 84 grab samples was collected from float and outcrops within the area. Seven samples returned total REEs + Y(yttrium) greater than 2.0% to a high of 11.1%. Results of several samples are still outstanding. A total of 812.9 m was drilled in 4 holes completed along approximately 350 m strike length at the Hodgie Zone.
Lower Gum Creek Zone
--------------------
The Lower Gum Creek Zone is located directly north of the Hodgie Zone and was identified by a series of niobium-in-soil anomalies discovered during the 2007 regional exploration program.
A total of six holes totaling 1,257 m targeted a subsurface carbonatite body, interpreted to lie upslope of the anomalies. No significant intervals of carbonatite were intersected. The source of the niobium mineralization may lay
further upslope and to the east of the area drill tested.
Regional Exploration
--------------------
The Company's regional exploration program has led to the discovery of several new carbonatites, as well as the extension of two carbonatites previously discovered within the existing property boundaries. Thirteen new claims have been staked along the southeast margin of the existing claim block to ensure full coverage of the newly discovered Felix Carbonatite. Sampling and mapping have been completed to allow further evaluation of all the carbonatite bodies.
Approximately 4,085 soil, 527 stream sediment (pan concentrate), and 127 rock samples were collected throughout the property during 2008.
In addition to the carbonatite discoveries, several areas have been identified as having elevated levels of REEs. Preliminary results reveal an area north east of Mud Lake, approximately 15 km south of the Hodgie Zone, as an anomalous area indicative of ultramafic geology. The data is currently being compiled and analysis is ongoing.
Environmental and Regulatory
----------------------------
In addition, the Company is advancing environmental and regulatory programs designed to ensure that the Blue River Tantalum and Niobium Project is well positioned to enter the environmental assessment process once a development decision is made. Field programs, which were completed on time and on budget, include surface and groundwater sampling, hydrology, wildlife, and fisheries work.
Jody Dahrouge, P.Geo. and Vice-President of Exploration, a qualified person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.
On Behalf of the Board of Directors
COMMERCE RESOURCES CORP.
"David Hodge"
-------------
David Hodge
President and Director
The TSX Venture Exchange has neither approved nor disapproved the information contained herein.
Statements in this document which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward-looking statements in this release include statements regarding the possible identification of several new tantalum-niobium, REE, and/or carbonatite occurrences on the Blue River Property; that the Company will receive complete analytical results for the 2008 drill program during the next few months; that there is a potentially new and significant zone south of the main Upper Fir Carbonatite deposit; that the bulk sample work will extend the characterization program previously completed and provide information to support the development of a preliminary flow sheet for a pilot plant program; that prospecting within the Hodgie zone area suggests that the zone of rare-earth mineralization may comprise several zones of over 2,000 meters or more strike length; and that preliminary results indicate that an area north east of Mud Lake, approximately 15 km south of the Hodgie Zone, is an anomalous area indicative of ultramafic geology.
It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Risks and uncertainties include, but are not limited to, economic, competitive, governmental, environmental and technological factors that may affect the Company's operations, markets, products and prices. Factors that could cause actual results to differ materially may include misinterpretation of data; that we may not be able to get equipment or labour as we need it; that we may not be able to raise sufficient funds to complete our intended exploration and development; that our applications to drill may be denied; that weather, logistical problems or hazards may prevent us from exploration; that equipment may not work as well as expected; that analysis of data may not be possible accurately and at depth; that results which we or others have found in any particular location are not necessarily indicative of larger areas of our property; that we may not complete environmental programs in a timely manner or at all; market prices for tantalum & niobium may not justify commercial production costs; and that despite encouraging data there may be no commercially exploitable mineralization on our properties. Readers should refer to the risk disclosures outlined in the Company's Management Discussion and Analysis of its audited financial statements filed with the British Columbia Securities Commission.
For further information
David Hodge, (604) 484-2700
--------------------------------------------------------------------------------
Source: Commerce Resources Corp.
>I know very little about SRSR, so I could not comment.
However, going forward in these trying times of financial liquidity problems, one should focus on how much a company has in the till for future operations.
For instance, Commerce has in excess of $20 million dollars, enough to carry it into production in 2 or 3 years. This is why I'm comfortable with this investment at this time.
I have be told that SRSR has varied resources, a good thing. If I were you, I would focus the analysis on company liquidity.
sumisu
How would you compare CR to SRSR in terms of what they've got in proven reserves?
In terms of actual production?
The Age Of The Technology Metals
By Jack Lifton
16 Sep 2008 at 03:18 AM GMT-04:00
Everyone is talking about minor metals but no one seems to know exactly which ones they are.
http://www.resourceinvestor.com/pebble.asp?relid=46193
Post from Energy Guy:
Wow! Commerce sp has taken a dive! I never thought it would get this low.
Apparently, the wild and greedy debt securitization mania where bundles of dubious quality loans were sold to investor funds. financial houses etc. are forcing individuals and brokerage houses to sell stocks willy nilly regardless of how low the price goes.
Merkel Lacks `Consistent' Energy, Commodities Policy, IW Says
By Rainer Buergin
http://www.bloomberg.com/apps/news?pid=20601100&sid=aGCNRAkOUluY&refer=germany
Aug. 25 (Bloomberg) -- German Chancellor Angela Merkel's government has no clear energy policy, the IW economic institute said, singling out for criticism plans to abandon nuclear power and insufficient action to secure foreign commodity sources.
``What we're missing in the area of government is a consistent energy policy, a consistent energy concept, and, as regards commodities, a clear prioritization of interests,'' IW economist Hubertus Bardt told reporters in Berlin today.
Merkel should raise pressure on governments such as China's that levy taxes on or even ban commodity exports, the institute said. Europe should speak with one voice on energy and commodity issues and push for a removal of trade barriers in bodies such as the World Trade Organization, it said.
The IW report highlights risks faced by the German economy, the world's third-largest and the biggest exporter of goods. It raises pressure on Merkel and the European Union to do more to safeguard the supply of substances needed for the production of stainless steel, jet turbines and fuel cells.
Chromium, molybdenum, niobium, platinum, tantalum and zircon top the list of commodities in ``critical'' supply because they're either controlled by a few companies or countries, will be exhausted in less than 30 years or are difficult to substitute, the Cologne-based IW said.
Fifty-four percent of German companies see the increasing scarcity of commodities as a risk, while 19 percent see it as an opportunity, the IW said, citing a survey it held this year. Nineteen percent said it poses neither risks nor opportunities.
``The problem with commodities isn't so much the physical availability, but rather the access,'' IW institute head Michael Huether said. ``A lack of competition, distorted competition as a result of government action and aggressive strategies by some countries on international commodity markets are serious problems.''
While natural gas exports from the Soviet Union were stable even in the Cold War era, Russia may use its gas reserves ``as a political instrument'' and threaten to limit deliveries, Huether said. In view of growing commodity supply risks, Germany should abandon the planned phase-out of nuclear energy by around 2023, he said.
To contact the reporter on this story: Rainer Buergin in Berlin at rbuergin1@bloomberg.net.
Last Updated: August 25, 2008 08:08 EDT
Commerce Resources Corp. Receives Updated Resource Estimate for Upper Fir Tantalum and Niobium Project
Friday August 8, 9:40 am ET
VANCOUVER, Aug. 8 /CNW/ - Commerce Resources Corp. (TSXv: CCE) (FSE: D7H) ("the Company") is in receipt of an updated resource estimate for the Upper Fir Carbonatite, located in east-central British Columbia.
The updated resource estimate is based upon 20 HQ diameter diamond drill holes completed during 2005-2006, and an additional 18 HQ diameter diamond drill holes completed during 2007. The holes outlined a series of sill-like bodies with up to 100 m total thickness, that extends for more than 1,100 m in a north-south direction and up to 600 m in an east-west direction. The carbonatite remains open both to the east and to the south.
Based on the exploration from 2005-2007, the Upper Fir Carbonatite is estimated to contain an indicated resource of 14.68 Mt with average grades of 190 g/t Ta(2)O5 (Tantalum) and 1,300 g/t Nb(2)O5 (Niobium), within a 38 m confidence limit. In addition, the mineralized body is estimated to contain an inferred resource of 19.8 Mt with average grades of 188 g/t Ta(2)O5 and 1,612 g/t Nb(2)O5, within a 100 m confidence limit. When using higher grade cut-offs of 200 g/t Ta(2)O5, the average tantalum grades increase to 231 g/t for the indicated portion and 225 g/t for the inferred portion. Other details are as follow:
[details in following link]
http://biz.yahoo.com/cnw/080808/commerce_resources.html?.v=1
‘Peak metal’ problems loom, warns scientist
Raymond Beauchemin, Deputy Foreign Editor
Last Updated: August 07. 2008 11:32PM
#msg-31305795
>At this time of year, there is only one thing that I care about that is smoking, and that is my garden. I'm expanding my garden beds for Peak Oil and experimenting with new crops.
As far as tantalum and Commerce are concerned, most commodities are in the tank supposedly because the commodity bubble is broken. But in order to be a bubble in the first place, there has to be excess inventories. Commodity prices would not be rising so fast if there were not shortages, i.e., deficient inventories.
So there you have it. The talking heads on TV are touting the death of commodities, as if 6.5 billion of the world's population doesn't want and need goods and services in the future, but their actions are just a transitory thing to prop up sagging markets.
It's just another typical summer when a lot of prices go down. The backtrack in oil is probably the last great opportunity to buy oil stocks cheaply as Peak Oil liquids is just two years away.
My friend, I will listen to and believe in Jim Rogers, before CNBC.
Hope your summer has been well.
sumi
PS Not sure if you listen to Jim Puplava at Financial Sense. I think he provides the proper perspectives for the markets.
http://www.financialsense.com/fsn/main.html
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Commerce Resources Background
Commerce Resources Corporation
1450-789 West Pender Street
Vancouver, BC V6C 1H2
U.S. Toll-Free # 1-866-484-2700
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
COMPANY WEB PAGE
http://www.commerceresources.com/
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
FACTS ABOUT COMMERCE RESOURCES AND TANTALUM
Commerce Resources has an increasingly important 100% owned tantalum-niobium property at Blue River in British Columbia Canada.
The United States does not have a tantalum mining industry because U.S. resources are of low grade, and the United States must import all of its tantalum source materials for processing.
Tantalum has been classified as a "strategic metal" by the United States Government.
It is worth currently about $200 Canadian per pound. (About $170 U.S.)
Commerce, through drilling and extensive analysis, has defined a resource of more than 8 million pounds of Ta2 05. This resource value
was developed using official 43-101 standards mandated by the Canadian Government for their resource mining companies.
Most of the World's tantalum goes into making capacitors for electronics... (for example, in cell phones).
The use of tantalum is preferred over other metals due to its reliable long life, low energy use, resistance to temperature fluctuations and high capacitance.
Tantalum is VITAL! It cannot be substituted by other metals for high function cell phones such as picture, video, colorscreen phones and Blackberry devices (small handheld e-mailers).
Given the growing usage and dependence of people on cell phones and computers,
it is no wonder that TANTALUM is being called
"THE HIGH TECH METAL" and also called "THE METAL OF THE FUTURE."
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
COMMERCE RESOURCES INC.FILINGS & PUBLIC DOCUMENTS with SEDAR
http://www.sedar.com/DisplayProfile.do?lang=EN&issuerType=03&issuerNo=00016212
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
COMPANY DETAILS
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
FOR COMMERCE NEWS RELEASES
http://finance.yahoo.com/q?s=cce.v
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
INFORMATION LINKS FOR TANTALUM AND NIOBIUM
http://minerals.usgs.gov/minerals/pubs/commodity/niobium/
TANTALUM-NIOBIUM INTERNATIONAL STUDY CENTER
http://www.tanb.org/index.html
Element Tantalum - TA
http://environmentalchemistry.com/yogi/periodic/Ta.html
Table of contents for tantalum
http://www.webelements.com/webelements/scholar/elements/tantalum/index.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
OTHER DUE DILIGENCE
Commerce Resources Corporation and Tantalum by Ed Hone, Mar 2, 2007
http://www.321gold.com/editorials/hone/hone030207.html
EMPOWERING HIGH TECH MATERIALS - H.C. Starck
http://www.youtube.com/watch?v=V7u102FJdoM
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
COMMENTS FROM SHAREHOLDERS
Sumisu 2/07/2007
"Fortuitously Commerce Resources enjoys these power and transportation advantages.
I just wish I had more funds to increase my position at the current price."
EnergyGuy62 2/06/2007
"Suppose it turns out, that the Blue River is one huge massive all-joined-together-everywhere deposit?
....if you look at a map of the Blue River Property, the Fir deposit, the Verity deposit and the Upper Fir deposit stretch across the northern part of the property.
And the Bone Creek deposit is in the south central part."
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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