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Scorpio President And CEO Resigns; Interim President And CEO Appointed
Friday, July 20, 2012 2:19 PM
http://www.kitco.com/reports/KitcoNews20120720_MM.html
Scorpio Mining Corp. (TSX:SPM) President and Chief Executive Officer Parviz Farsangi has resigned, stating he will be pursuing other career opportunities. The company replaced him as president and CEO immediately with Scorpio’s founder, Chairman and former CEO, Peter J. Hawley. The role of chairman will now be filled by Ewan Mason while Hawley handles the executive roles, the company says. “The board of directors has commenced a search for a new CEO,” the company says. “During the interim period, the day to day operations of the company will be supervised by Mr. Hawley with the support of Mr. Mason.” Scorpio Mining Corp. is a Canadian-based silver producer operating in Mexico.
As precious metals does well this year looking for that to help related stocks in that area.
Share price has been rising here all year long. To seeing the highest PPS levels of the year now!
Scorpio Mining Q2 silver output nearly doubles.
This has got to be good for the company.
http://www.reuters.com/article/2011/07/13/scorpiomining-idUSL3E7ID2FO20110713
Recovered silver was up 95 percent at 365,692 ounces, while recovered copper rose 17 percent to 438,529 pounds.
In the second quarter, mill throughput rose 86 percent to 128,674 tonnes from the year-ago quarter.
The company said the large increase in production in year-over-year figures is also partly because 2010 second-quarter throughput was affected by a ball mill failure.
Vancouver-based Scorpio said copper production at the end of this quarter lagged forecasts by 25 percent due to the lower grade of the copper ore.
Shares of Scorpio closed at C$1.46 on the Toronto Stock Exchange on Tuesday. (Reporting by Maneesha Tiwari in Bangalore; Editing by Prem Udayabhanu)
A small PR ...
http://www.tickrwatch.com/2011/07/most-popular-canadian-stock-searches_14.html
Scorpio Mining Corporation (TSE: SPM): traded higher by 0.61% or $0.01/share to $1.64. In the past year, the shares have traded as low as $0.61 and as high as $1.69. On average, 619900 shares of SPM.TO exchange hands on a given day and today's volume is recorded at 927134. The shares are currently trading above the 50-day moving average which indicates that the shares have been experiencing strong upward momentum as the 50 DMA is above the 200 DMA. The stock may come back down to test the 50-day moving average, so look for a move back to the $1.31 area where the stock will likely see buying pressure.
Scorpio Mining Provides Exploration Update on its Projects in Mexico
Company updates- http://www.newswire.ca/en/releases/archive/July2011/15/c5603.html
TORONTO, July 15, 2011 /CNW/ - Scorpio Mining Corporation (TSX: SPM) ("Scorpio Mining" or the "Corporation") is pleased to provide an update on exploration activities at its projects in Mexico. The Corporation controls over 29,000 ha in the Cosalá district, Sinaloa, which is host to over 40 known exploration targets but is relatively unexplored by modern techniques. In addition, Scorpio Mining holds two advanced, high-grade silver properties in the Parral district, Chihuahua, that are drill-ready
Gold miners are doing well. Interesting article.. From May 2011 but some good info.
http://miningspot.com/gold-stocks-report/
"Gold miners are doing well, and especially so over the past year or so. Aggregate numbers for eight global Tier I gold majors show that first-quarter 2011 produced free cash flows of USD 1.78bn, compared to USD 989m for first-quarter 2010"
Damm this took for ever. But now its starting to look like a long term hold. Nice thing is that being a zink and lead stock. Even if gold and silver stall out, this should do very well.
doinit thanks,
ot. honestly i haven't -
the drug war in Mexico scared me out!
http://www.scorpiomining.com/
I been to engaged with the old
gold mines holdings of -
Moneta and Goldstone
hey Bob,
you looked at this one recently
First let me say I have a love for that mine going back to 1960. It was then owned by ASARCO. Its not a silver mine. It is a base metal mine. LEAD and ZINC. At the present run rate if SILVER goes up a dollar an oz. It only adds 200,000 to the bottom line. If ZINC goes up .10 cents a lb, it adds one million 200 thousand to the bottom line. They are not even running at 50 % yet. This is a long term hold.Will double this year and double the year after. If the SILVER price takes off it will be a winner. If it does not, it will still be a winner. This is old, there are now more shares out. The ratios may change a bit, but it is still the same premise. The properties that they just got with the merger have even more zinc than their present mine.
Long term, any silver producer with low overhead should do well. Might take awhile for silver to hit $30 plus but it will....
I'll probably add significantly when funds are available.
I think we have a play here. Mite be promising. Mike
Well I'm in on this one, so you're not alone.
Scorpio Mining Provides Future Production Outlook
April 21, 2010 – Scorpio Mining Corporation (“Scorpio”, or the “Company”) (TSX: SPM), wishes to outline its planning and future outlook with respect to the Company’s Mexico operations and intended production increases.
Peter J. Hawley, Chairman, CEO reports, “The Company is in the process of finalizing an expansion plan for its Mexico operations. Metallurgical work and flow sheet design completed by SGS Lakefield Research show that the San Rafael mineralization (Platte River project) reports a lead concentrate that grades 58% lead and 680 g/t silver with 78% recovery, and a zinc concentrate that grades 51% zinc and 128 g/t silver with 82% recovery. The current plan is to install a second circuit for the San Rafael material at the Nuestra Señora (Cosalá) mill facility, at a normal throughput of 2,500 tonnes per day (TPD). This new circuit, together with the existing circuit of 1,600 TPD, will easily handle the planned 2012 production increase to 4,000 TPD. The Cosalá mill facility was originally designed for expansion and the existing primary crushing system and conveyors are more than sufficient for the 2012 ramp up. Modifications required for the expansion include the installation of an additional ball mill, flotation cells, thickeners, regrind mills and various pumps. The Company expects the plant expansion to be cost effective and completed by the end of the second quarter of 2011.”
“In February 2008, an in-house Preliminary Economic Assessment Study (PEA) by Mine Development Associates of Nevada for Platte River Gold Inc. (now a wholly owned subsidiary of Scorpio) looked at open pit mining of the San Rafael body at a rate of 3,000 TPD. The Company has initiated work to augment the PEA for a pre-feasibility level study (“PFS”) and design for a minimum of 2,000 TPD mining operation. To this end, the Company is in final planning for open pit infill drilling for mine planning, condemnation drilling for waste rock disposal, and geomechanical and hydrogeological drilling for rock mechanics of the pit walls and any potential water flow in the pit area. The results of this work will be incorporated in the final PFS, which is expected later this year. Importantly, the land on which the deposit sits is 100% owned by Scorpio, which will help accelerate the estimated 3-month permitting window.”
“In closing, the Company has begun an aggressive expansion program aimed at reducing operating costs while increasing metal output over the next 2.5 years, at which time it expects to achieve intermediate producer status with respect to metals produced.”
Forecast for the Year 2010 Metal Output:
First quarter mill throughput exceeded the budgeted rate of 1,000 TPD at an average of 1,173 tonnes per operating day.
Yearly throughput is budgeted at 30,000 tonnes per month (TPM) or 330,000 tonnes per year (TPY) based on 330 days operating; a 52% increase over 2009 output of an average of 660 TPD based on 330 days per year.
Lead output is expected to increase by 43% to ~6 million pounds from the 2009 output of 4.19 million pounds.
Zinc output is expected to increase by 49% to ~13 million pounds from the 2009 output of 8.75 million pounds.
Copper output is expected to increase by 1% to ~1.2 million pounds from the 2009 output of 1.19 million pounds.
Pure silver output is expected to increase by 6% to ~635,000 ounces from the 2009 output of 600,000 ounces.
Silver equivalent ounces* are estimated to total ~2.007 million ounces; a 25% increase from the 1.60 million ounces silver equivalent in 2009.
Forecast for the Year 2011 Expansion and Metal Output:
Daily mill throughput is estimated to be 2,100 TPD; an increase of 110% from the estimated 2010 mill throughput of 1,000 TPD.
Yearly throughput is budgeted at 726,000 TPY based on 330 days operating; a 120% increase from 2010.
Lead output is expected to increase by 107% to ~12.4 million pounds from the forecasted 2010 output of 6 million pounds.
Zinc output is expected to increase by 106% to ~26.8 million pounds from the forecasted 2010 output of 13 million pounds.
Copper output is expected to increase by 150% to ~3 million pounds from the forecasted 2010 output of 1.2 million pounds.
Pure Silver output is expected to increase by 86% to ~1.18 million ounces from the forecasted 2010 output of 635,000 ounces.
Silver equivalent ounces* are estimated to total 4.1 million ounces; a 104% increase from the forecasted 2.007 million ounces silver equivalent in 2010.
Forecast for the Year 2012 Expansion and Metal Output:
Daily mill throughput is estimated to be 4,000 TPD; an increase of 90% from the estimated 2011 mill throughput of 2,100 TPD.
Yearly throughput is budgeted at 1.32 million TPY based on 330 days operating; an 82% increase from 2011.
Lead output is expected to increase by 45% to ~18 million pounds from the forecasted 2011 output of 12.4 million pounds.
Zinc output is expected to increase by 46% to ~39 million pounds from the forecasted 2011 output of 26.8 million pounds.
Copper output is expected to increase by 60% to ~4.8 million pounds from the forecasted 2011 output of 3 million pounds.
Pure silver output is expected to increase by 61% to ~1.9 million ounces from the forecasted 2011 output of 1.18 million ounces.
Silver equivalent ounces* are estimated to total 6.22 million ounces; a 52% increase from the forecasted 4.1 million ounces silver equivalent in 2011.
* Metal prices used to calculate silver equivalent ounces are as follows: Lead US$0.80 per lb; zinc US$0.80 per lb; copper US$2.20 per lb and silver US$13 per ounce.
More information on the Platte River acquisition and its mineral properties can be found in the Company’s Management Information Circular, dated January 8, 2010 and filed on SEDAR at www.SEDAR.com.
Further information is available on the Company’s web site at: www.scorpiomining.com.
President, Mr. D. Roger Scammell, PGeo, is the Company’s Qualified Person for the Nuestra Señora and Platte River projects and has reviewed the content of this release.
ON BEHALF OF SCORPIO MINING CORPORATION
Peter J. Hawley
Chairman & CEO
For further information contact:
Rich Kaiser, YES International: 1-800-631-8127; 001-757-306-6090 (outside North America)
Email: yes@yesinternational.com
This news release includes certain statements that may be deemed “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to Scorpio Mining Corporation’s commitment to, and plans for increasing production. Generally, these forward-looking statements can be identified by the forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “projects”, “intends”, “anticipates”, or “does not anticipate”, or “believes”, or “variations of such words and phrases or state that certain actions, events or results “may”, “can”, “could”, “would”, “might”, or “will” be taken”, “occur” or “be achieved”. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Scorpio Mining Corporation to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the exploration and development and operation of the mineral projects, risks related to international operations, construction delays and cost overruns, the actual results of current exploration, development and construction activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of silver, zinc, copper, lead and gold, as well as those factors discussed in the sections relating to risk factors of our business filed in Scorpio Mining Corporation’s required securities filings on SEDAR, including its Annual Information Form dated March 29, 2010. Although Scorpio Mining Corporation has attempted to identify important factors that could cause results to differ materially from those contained in forward-looking statements, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended.
There can be no assurance that any forward-looking statements will prove accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Scorpio Mining Corporation does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.
TSX.SPM
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GO BABY GO. Get to 1.28 so I will be back to even on my 200,000 shares. Love this stock, but I did put the trade on poorly. Since I knew this property 50 years ago.I let my heart get in the way of my head on timeing. Best of luck to all.
For what its worth, MDGC had had a Friday Buy Rule today. SPM is still holding its gap up. It may be closed on Monday. But its showing very good strength. I feel we are getting close to breaking out to the upside.
We are no longer alone, they are starting to find us.
Filed As-Of/On Form Fullname Fund Class Shares Activity Shares Change Shares Pct. Change Hypothetical Old Value Hypothetical New Value Hypothetical Value Chg. Hypotheticals Return Hypotheticals Results Director Other Ten Pct Officer Officer Title News Article History
2009-10-30 2009-09-30 13F-HR Tocqueville Asset Management Lp Institution 617,500 New Holding 617,500 100 % - % News Article History of Tocqueville Asset Management Lp Ownership Of Scorpio Mining Corp
2009-10-14 2009-09-30 13F-HR Aris Wealth Services Inc Institution 150,000 Added More 50,000 50.00 % - % News Article History of Aris Wealth Services Inc Ownership Of Scorpio Mining Corp
2009-09-29 2009-07-31 N-Q Dfa Investment Dimensions Group Inc - Dfa International Small Cap Value Portfolio International Small-Mid-Cap Value 31,000 New Holding 31,000 100 % - % News Article History of Dfa Investment Dimensions Group Inc - Dfa International Small Cap Value Portfolio Ownership Of Scorpio Mining Corp
2009-09-29 2009-07-31 N-Q Dfa Investment Dimensions Group Inc - International Core Equity Portfolio International Small-Mid-Cap Value 32,467 New Holding 32
Sorry for the late response. I had a heart attack in between.
I am still buying more. People do not understand this stock. They do not know what there looking at. They are crying over the extra 75 million shares that were added with the PLATT deal. They have no idea how this game is played. The property is loaded with ZINK. 200 lbs per ton. The players in Platt are 4 or 5 of the best in the industry. This will be no less than 3 and could be 5 to 6 in the next few years.
You are right about this stock. It has been steadily going up and up on its own over time. Good Luck to You!
I see I am still all alone here. Thats OK I be making money. Slow but sure. There is a ton of Moose pasture out there, but this is not one of them. THIS ONE IS A WINNER AND I GOT A TON OF IT .
We on our way. We have a Friday buy rule. It looks like in the next 10 days we should get a quarter report. Me thinks it will be pretty good.
Thanks oldguy, I am doing my dd on Scorpio and I like what I see. The company seems to have very competent and honest management. And they seem to have plans to build it in the long run. I live in North Vancouver so I am not far from their Vancouver office so I may call in and have a talk with them. I like to know who I'm dealing with.
First let me say I have a love for that mine going back to 1960. It was then owned by ASARCO. Its not a silver mine. It is a base metal mine. LEAD and ZINK. At the present run rate if SILVER goes up a dollar an oz. It only adds 200,000 to the bottom line. If ZINK goes up .10 cents a lb, it adds one million 200 thousand to the bottom line. They are not even running at 50 % yet. This is a long term hold.Will double this year and double the year after. If the SILVER price takes off it will be a winner. If it does not, it will still be a winner.
How do you rate SPM against other silver and gold plays? Are you expecting silver price to move coser to the gold price? SPM looks like such a low cost producer that it looks good in any enviornment IMHO.
This is a lonely place to be. But at this price, the right place to be. It will be slow, but it will be 1.50 in 18 months. Sooner if ZINK takes off.
One more day over a million shares. With silver dropping like a lead fart and suddenly big buyers coming in, it looks like this puppy is going to make a move.
Just got back from Toronto Mining Show. They said news that the mine had closed was false. They said that a retraction was printed. I never saw it. Stated that mill was operating and doing very well. Also that even if prices do not advance, money will be made this year. Their words, not mine. We will see at least a price of a dollar a share by year end. OK
They have just closed the mine. Why, I don't know yet. But am very disapointed.
Scorpio Mining Crp Com Npv (SPM)
▼
$
0.29
Change:
-0.02 (-6.45%)
Volume:
151,800
15:04:28 EST
Jan-14-09
SCORPIO MINING CRP COM NPV
(Toronto: SPM.TO)
Last Trade: 0.25
Trade Time: Dec 10
Change: 0.00 (0.00%)
Prev Close: 0.25
Open: 0.28
Bid: 0.25
Ask: 0.26
1y Target Est: N/A
Day's Range: 0.25 - 0.28
52wk Range: 0.11 - 1.63
Volume: 98,300
Avg Vol (3m): 205,682
Market Cap: N/A
P/E (ttm): N/A
EPS (ttm): N/A
Div & Yield: N/A (N/A)
SCORPIO MINING CRP COM NPV
(Toronto: SPM.TO)
Last Trade: 0.43
Trade Time: Oct 17
Change: Down 0.08 (15.69%)
Prev Close: 0.51
Open: 0.41
Bid: 0.41
Ask: 0.43
1y Target Est: N/A
Day's Range: 0.40 - 0.47
52wk Range: 0.40 - 1.66
Volume: 254,925
http://finance.yahoo.com/q?s=SPM.TO
God Bless
We are now a producer of metals. Fearless forcast, share price will double in 12 to 18 months. Best of luck to all (2) of us. THE OLD GUY
SCORPIO MINING CRP COM NPV
(Toronto: SPM.TO)
Last Trade: 1.23
Trade Time: May 26
Change: 0.00 (0.00%)
Prev Close: 1.23
Open: 1.25
Bid: 1.30
Ask: 1.30
1y Target Est: N/A
Hello to me, I be the only one here. I have just returned from the Florida money show. The president of Bac Tec was there and we talked for over two hours. The takeover by Scoripo is now complete and if you own Scorpio. You now own about 50 % of Scorpio Gold Corporation too. Not much will happen in the first year. They have to dewater the mines and solve a Arsenic problem.Year two should get the mines ready to produce in year three. They are also looking at several projects in other countries. Two which sound very exciting. As for Scorpio it is now breaking out. I suspect partly on the increase in metal prices but more so on the two recommeddations put out to the major investment funds. Also the start of the mill at the end of March or early April has a lot of people excited. No doubt this will be 3 to 5 dollars by the end of the year. I will be leaving for the PDAC show in Toronto March 2-5. Over 200 mining companys will be there.If there is some company You want me to stop by and see, please let me know. I will talk to them and than give you my opinion.Best of luck to all. THE OLD GUY
Scorpio Mining Corp. (V.SPM) $ 1.29
-0.01 (-0.77%) Volume: 67.45 k
3:57 PM EST Feb 6, 2008
Byproducts V: Why the Run-Up in Cobalt Demand?
By Jack Lifton
27 Dec 2007 at 03:17 PM GMT-05:00
DETROIT (ResourceInvestor.com) -- The following price charts from the excellent new Internet minor metals information center http://www.minormetals.com, published by TheBullionDesk.com, clearly show the roller coaster ride that cobalt has been on during the last six months in particular, and the last two years in general. In the earlier period cobalt first doubled and then plateaued. Now in the last six months of 2007 cobalt prices have gone up another 50% above the base established during the plateau period The total increase in price of cobalt over the last two years has, as of now, been 300%; thus cobalt has been a far better investment during the last two years than either gold or platinum.
Is the current cobalt price run-up a “bubble”, or the froth around a bubble, or is it a solid movement in demand that is running ahead of supply? There are just two reasons why the price of a natural resource goes up:
The real (actual) demand exceeds the supply, or;
Speculative demand exceeds supply.
I believe that cobalt is going up in price because of a combination of the above two factors. First of all the existing uses for cobalt are growing and show no signs of moving to substitute materials. Second, a “new” cobalt use, which has so far flown under the investment radar, has begun to grow, and I believe that this has initiated a speculative surge in demand among commodity market players and a surge of risk management by the purchasing departments of some large corporate end-users of cobalt.
The first factor to be noted in trying to form an understanding of cobalt pricing and supply is the fact that “cobalt is not found as a native metal but generally found in the form of ores. Cobalt is usually not mined alone and tends to be produced as byproduct of nickel and copper mining activities…. In 2005, the Democratic Republic of the Congo was the top producer of cobalt with almost 40% of the world share, followed by Canada, Zambia, Russia, Brazil, and Cuba.”
The USGS notes that “The United States did not mine or refine [any] cobalt in 2006,” but that the U.S. imported for consumption 11,800 metric tonnes of cobalt in 2006. Since the USGS gives total mine production of cobalt globally in 2006 as 57.500 metric tones, it is clear both that the U.S. is a major consumer of cobalt and that cobalt is truly a minor metal when compared to copper and nickel, from the ores of both of which it is principally extracted, as a byproduct.
An excellent and comprehensive discussion of the current strategic and critical applications of cobalt is to be found in the October 2006 issue of the Journal of Metals, which is a subscription only publication for members of The Metals Society, a first-class organisation for those interested in technical metallurgy.
I will summarize the article briefly:
It says that “Cobalt has played an important part in the composition of nearly all the new alloys developed since the 19th century for cutting tools and wear resistance. The special properties of cobalt have been utilized in such applications as catalysts, paint dryers,…, and rechargeable battery chemicals. …Superalloys are major applications…. The major uses of cobalt based superalloys (45% cobalt) are in turbine blades for aircraft jet engines and in gas turbines for pipeline compressors.”
Of special interest from the article is the comment that “Cobalt-based batteries are…[an] extraordinary application where the use of cobalt in rechargeable batteries grew enormously between 1995 and 2000….The addition of cobalt to the electrodes substantially enhanced the cell’s life, increased [nickel metal] hydride thermodynamic stability, and inhibited corrosion.”
Finally, note the final paragraph of the article especially the last sentence, which I have put in italics:
“The increasing use of cobalt in rechargeable batteries for electric vehicle applications is expected to increase the use of cobalt even further. A major shift to hybrid-electric vehicles in automotive technology will dramatically increase the demand for cobalt-based batteries. Newly emerging demand combined with increases in cobalt use for other types of turbine engines and gas-to-liquid catalysts is underpinning the recent growth in cobalt demand and is expected to drive future cobalt consumption to unprecedented levels.”
Toyota has just announced this month that it plans to manufacture 1 million hybrid-electric vehicles a year sometime in the 2010s. It is clear that even if Toyota’s goal is not met in the actual year of 2010, the total number of hybrids made that year just by Toyota, GM and Honda will meet or exceed 1 million units. This fact is, in my opinion, the principal driver today of cobalt prices.
Let’s look at the numbers: At least 1.5 million hybrid vehicles have been manufactured since Toyota introduced the first mass produced vehicle of this type, the Prius, in 1999. Toyota alone has already made 1 million of them and 79% of all of Toyota’s hybrid vehicles have been sold in the U.S.
I have frequently reminded readers of Resource Investor that the nickel metal hydride battery packs used in a Prius contain up to 300 pounds of nickel and as much as 64 pounds of rare earth metals, principally lanathanum. Today I want to point out that each battery pack also contains cobalt. The comprehensive article “Developments in hybrid vehicles and their potential influence on minor metals”, written and presented in 2005, contains the graph below and the surrounding commentary:
The conclusions and graph above are based on the premise that future hybrid vehicles will continue to use nickel metal hydride batteries; I personally predict that some, and perhaps, even all, hybrids will utilize safe reliable nickel metal hydride batteries at least as far into the future as the above graph runs.
All of the “new” cobalt demand coming just from hybrid vehicle nickel metal hydride battery construction is today probably already in excess of market supply. Cobalt production has tripled in the last 12 years from 20,000mt per annum in 1995 to nearly 60,000mt per annum in 2007. Production will have to increase by another 25% just to keep in equilibrium with the above forecast hybrid demand and the natural growth in existing uses. A friend of mine warned me on the phone today that there is a high probability of a downside to this optimistic view of demand exceeding supply. He said that if a safe reliable lithium technology battery is developed for hybrid vehicle operation then cobalt will immediately be in surplus and the price will crash from today’s highs.
Let’s examine his thought a little. The highest energy density most efficient lithium technology battery available today, which is almost universally used in laptops, cell phones, and even concept cars is the one based on lithium/cobalt oxide electrode technology: the so-called lithium ion battery. I have written before that the world’s largest lithium producer, Chile’s SQM [NYSE:SQM], and the General Motors Corporation both agree that an optimum size lithium-ion vehicle propulsion battery would need 2 kilograms of lithium.
The (reversible) chemical reaction that describes the operation of this widely used battery is:
The above equation tells us that a battery pack utilizing 2 kilograms of lithium will require 8.4 kilograms of cobalt or 18.5 pounds; this is six times as much as the current nickel metal hydride batteries!
So, if nickel metal hydride battery packs were converted to lithion-ion, cobalt type, batteries then the 2015 demand just for such batteries of cobalt would be nearly 50,000mt annually or the equivalent of nearly all of today’s annual supply!
Take heart, though, because we are told that all kinds of newer cheaper and safer lithium ion battery technologies are “being developed.” But, in the meantime….
Ultimately I would predict that a compromise will be reached. I think that a large proportion of workaday hybrid vehicles will be made and continue to be made with nickel metal hydride batteries; some of the rest will be made with exhaustively researched and more safely designed lithium cobalt ion batteries; and the top few performance types will use one of the non-cobalt based lithium ion battery technologies.
I say this because it is clear that end-users are bidding up cobalt prices to insure their supplies for the near term production of items like superalloys where cobalt is absolutely critical and cannot be substituted, and that battery makers are hedging their bets on the future composition of the end-use hybrid battery market by laying in supplies of the metal even as, and, in particular, in case that, the global economy slows down because they recognize that since cobalt is a byproduct, a drop in either copper or nickel demand immediately impacts not only the supply of those metals but also of cobalt. The battery makers know that the demand for hybrids may well rise if the price of oil continues to go up and that hybrid vehicle customers will not wait forever for new battery technologies.
Dollar investors, take note: At this point I want you to keep in mind that the increase in demand for cobalt for the new hybrid battery use is coming today entirely from outside of the United States. Essentially all vehicular hybrid batteries are today being made in China and Japan. China and Japan both believe in national stockpiling by government funded agencies for critical metals. Private Japanese “trading” and mining companies and both “private” and state-owned Chinese trading and mining companies are today diligently scouring the world for sources and supplies of critical and strategic metals such as cobalt, nickel and lithium because, for example, in the case of cobalt, they are worried about the most extreme of the above scenarios. The Chinese are concerned first and foremost with keeping their domestic economy fed with the natural resources it needs. The Japanese also have this as a goal but it is to ensure their survival as a trading nation as well. In either case cobalt, among other resources, will be mostly unavailable in the global market place after it is acquired by China or Japan.
Should the Japanese and Chinese succeed in locking up most of the additional supply of cobalt to be created during the next decade and the most extreme of the above demand scenarios materialize, it will be a significant blow to American heavy industry and the U.S. military. In the case of civilian industry, it could result in the acceleration of its relocation to China.
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Tim Wood's Advice is Very Sound - Posted by Jack Lifton, 28 December 2007
Cobalt Investment Exposure - Posted by Ron Bye, 28 December 2007
Exposure to cobalt securities - Posted by Tim Wood, 28 December 2007
Cobalt Investment exposure - Posted by Tom Edwards, 28 December 2007
Cobalt - Posted by Steve Higgins, 28 December 2007
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I have been talking about Cobalt for three years. The US goverment stockpile is down to zip. They have none left to sell. At 92 I will not be around to see my two little Cobalt picks go to twenty dollars a share from two,but you will if you buy them. BAJ---- and------FT
All opinions expressed are my own. Hawley is not in this for a quick double or triple. He has ever intention of building a real company that is going to be around a long time.The Bac-Tec deal where we will now own 51% of a company that has proven technology for recovering gold and base metals in enviromentaly friendly ways. Thats a long term outlook. Not wanting to list on a major US exchange. Thats a long term outlook. After the first of the year there will be two buy recomendations coming out. Eight or nine months from now. The cash flow from the start up of the mine will start. Hawley will look for something else to buy. He will build a company that will last. I for one, will still be here.
Miningguy2004 Do you remmember I said I was big on Cobalt. Read the part on Cobalt. You might have to wait 2 to 3 years but
One More for the Road
By Peter Grandich
Dec 3 2007 9:58AM
www.grandich.com
Dear Santa,
First, I want to thank you, TOUT-TV (CNBC-TV) and all the little elves of the “Don’t Worry, Be Happy” crowd on Wall Street for making it a wonderful Christmas period again these last several days. It’s so good to know all is well again, not to mention Elvis and Jimmy Hoffa are with you.
There’s no need to get me anything but I realized this past week or so that there’s one, and only one, perfect gift; could you either get me a membership for the "Plunge Protection Team" or better yet, a partnership at Goldman Sachs? I’ve viewed their employee video and realized it’s the perfect Christmas gift.
XOXO, Peter
Barring some unforeseen circumstance, this will be the last issue of The Grandich Letter for 2007. Our offices will be closed from December 8, 2007 through January 6, 2008.
The markets will trade in more and more of a holiday-like atmosphere as we get closer to year-end. Because of this, we could see moves exaggerated by lack of liquidity. For the most part, it’s safe to assume we’re not witnessing any earth-shattering changes to longer term directions.
General Overview –
On the slight chance that General Kudlow, King “BooYah” and the vast armies of the “Don’t Worry, Be Happy” crowd on Wall Street umpteenth pronouncement that all is well and it’s safe to go in the water again is wrong (perish the thought), I’m going to watch this video again and remind myself of the following saying before I buy into the latest “all clear” signal:
"He who thinks he is raising a mound may only in reality be digging a pit." - Ernest Bramah
December is not usually a good month for stock market bears. With the gang on Wall Street’s Christmas bonuses riding on yearly results and a general “merry” atmosphere taking hold through years-end, I fully suspect this latest dip in the bull pool isn’t going to cause a Jaws-like exit anytime soon. However, I do believe it’s actually beneficial to the bear cause, as a major distribution top is forming that can seal the crazed Boo-yahs’ fate for years to come.
So don’t be a Grinch (or feel like one) and not enjoy the next few weeks. All the factors that led me to publish this issue on October 14, 2007, remain.
Precious and Base Metals –
One should not expect a bullish outlook on gold from Wall Street, mainstream financial media and the public-at-large, because it’s almost certain to come at the expense of financial assets and/or the argument for them. However, given how incredibly well gold has performed for the last several years versus financial assets, and the fact that it’s latest “pause that refreshes” has once again launched a wave of bearish gold forecasts (Goldman Sachs the latest – I think the G in G-7 now stands for Goldman since so many former executives are making up positions in financial arms of countries), I think its fool-hearty not to give credence to GATA and those of us who know in our hearts that governments and powerful groups interfere in so-called free markets. Yes, it’s frustrating at times when they do, but the amount and the degree in which they have in recent times strongly suggests to me that, as time goes on, the problems they so much want to keep under the rug are becoming more unmanageable for them.
Despite the grief I took through much of 2007 (including from clients and the many who wished to be clients, but in good faith I couldn’t take them on) for being outspoken bearish on base metals and choosing to be greatly over-weighted in precious metals, I believe the price action has proven me correct. Since I get beaten up enough in the junior resource market (where I always stress failure is the norm), I won’t gloat other than to say I see no reason to change that view anytime soon.
Gold –
A dramatic, near parabolic rise from $640 to $840 is now rightfully being digested. As noted earlier, liquidity should dry up as we get closer to Christmas so I wouldn’t get overly concerned whether the next $25-$50 move is up or down. Just stay focused on what got us to this price, the fact that fundamental factors remain supportive, and the world still pretty much hates the shining yellow.
Copper –
It recently tested key support just under $3 and bounced. I do believe it should eventually break that support as a massive top has formed technically and my long-term target of $2-$2.50 looks more likely. I do believe that as the price weakens to a move below $3, one should re-established with some copper exposure. The $2-$2.50 area should prove to be just a corrective level and in the next 3-5 years a move to new highs above $4 appears in the cards.
Uranium –
The sentiment has gone from extremely bullish to one of concern or outright bearishness. This comes despite perhaps even more bullish fundamentals. I continue to believe uranium exploration, development and producing companies are worthy of consideration.
Cobalt –
A few months back I noted Cobalt appeared to be a metal that could see strong price appreciation. Given this, I found this article most interesting:
Cobalt has been riding high over the past month where many other markets failed to pick up after a slowdown in the third quarter. The weak dollar had some part to play in this, with UK traders reporting both an increase in enquiries and requests by sellers to be paid in sterling.
Having topped $30/lb in mid-October the market continued moving steadily upward towards $35/lb, buoyed by both a shortage of material available in the spot market and bullish sentiment, which has seen investors start taking positions in the market. The London Metal Exchange is also, once again, turning its eye to cobalt to determine whether it, along with other minor metals, could feasibly trade on the exchange.
There are mixed feelings on whether the minor metal markets are liquid enough and would be open to the kind of transparency that the LME requires. A poll by Metal-Pages, however, came out with a surprisingly balanced result, with a small majority of those responding happy to see their metal trade on the LME. Having opened a market in cobalt futures to investors in September, Credit Suisse said the market has been even more successful than expected. This, and the fact that cobalt is already sold on open online systems by producers, makes this metal probably the most obvious candidate for trading on the exchange.
At the moment, producer stocks are said to be either sold out or running low and a small volume of five to ten tones is enough to move the market. On their online trading systems, BHP-Billiton and Norilsk Nickel have been leading the way by repeatedly increasing offer prices with every sale. BHP-Billiton moved its offer price up to $35.50/lb on November 21, having reported a five-tonne sale to North America at $34.75, the highest transaction price ever recorded on its website, while Norilsk Nickel raised its website offer price up to $33/lb on November 22.
Previous to that BHP-Billiton had raised its offer price on 16 November, for the second time in two days, to $33.30/lb on the back of a five-tonne sale. Norilsk Nickel had moved its offer price, first to $31.20/lb on 14 November and then to $32/lb on 19 November, basis in warehouse Rotterdam. In China, Jinchuan Group also lifted its price for 99.8% cobalt metal on 20 November to Rmb578,000/tonne, up from the previous Rmb566,000/tonne basis which has been in place since 9 November.
Not everyone is happy with the rising market. Said one major western consumer/processor: “The market is clearly the hostage of an incredible sense of opportunism... With each quote the Russians move up their price and we have another hit or two on BHP... It is not always easy to beat the bulls. We still believe that the hike is on the basis of speculation and not fundamentals, but the end result is unfortunately the same.”
He put the market, in the penultimate week of November, for 99.3% at $32-33/lb and for 99.8% at $33-34.50/lb, against a more general market range of $33-33.75/lb for 99.3% and $34-35 for high grade.
Previously, the price of cobalt, has topped $30 per lb just three times since the mid-1990s: March, 2007, January 2004 and February 1996.
There are now enquiries for 2008 and demand is also said to be boosted by consumption in China, particularly for making batteries.
In China prices for all cobalt products are rising, as availability of raw materials gets tighter. Concentrate prices are now quoted at $28-29/lb. Some producers are said to have halted production and have started to trade raw materials as they have difficulties raising the cash.
Prices towards the end of November went up to about Rmb630-640/kg ($38.6-39.2/lb) for 99.8% cobalt metal, some Rmb450/kg (US$27.6/lb) for 72% min Co cobalt oxide, while offer prices for industrial chemical cobalt oxalate, used in manufacturing automotive tyres have also gone up, to Rmb190,000-Rmb195,000 (as high as $26,351/tonne) for 31% min cobalt oxalate.
Cobalt has a wide variety of applications in industrial chemicals, batteries, aerospace alloys, land-based turbines and power generators. It is likely to see a growing demand in hybrid vehicles, as the automotive industry strives to be cleaner but still affordable. Japanese car manufacturer Daihatsu Motor Co recently unveiled its new fuel cell technology that eliminates the need for platinum in electrode catalysts. By changing from acidic to alkaline electrolyte membranes it can replace the costly metal with cheaper and less corrosion resistant metals such as cobalt or nickel.
Note: The article continues on to discuss other commodities. For a complete copy of the article the reader is referred to the Metal Pages November Newsletter at
U.S. Dollar –
Even beaten-up Uncle Sam is entitled to some holiday cheer. Again, remembering that the drain on liquidity is likely to come as December unfolds, and knowing the big paper profits out there on short U.S. Dollar positions, it would come as no surprise to see the U.S. Dollar Index move back towards, or even above, the 80 level. While it would cause agita for the individual speculator whose time horizon these days appears to be just hours and minutes, it would actually be healthy and useful if it did. Because 80 was a key support area for years, it’s only natural for the market to try and confirm it’s now resistance. I’m not suggesting to get long Uncle Sam, but just suggest not losing sleep over it if it should occur. It would also not surprise me to see some Central Bank intervention in the currency market in the next few months. I may be old-fashioned, but it would be nice to see them act in the light of day for a change.
Oil –
“OH MY GOD”!!!! Oil has fallen all the way back to $88. It’s cheap again –lol! I’ll spend some time on oil in our January issue.
Mining and Exploration Shares –
Given the relative strength in most metal prices versus price levels of just a few years ago, most mining and exploration shares aren’t even close to full valuation when compared to metal prices of 5, 10 and 20 years ago and their relation to mining and exploration share prices at that same time. There are many reasons for this and here, too, I’ll go into it in January. But let me remind you of a month or two ago when I suggested that we’re likely to see some serious tax-loss selling, which we recently have. This may continue for the next week or two, but with more and more compelling speculations making themselves known in this arena, I’m personally hoping to go shopping (if I can bring myself to step over so much carnage—some of which I and many so-called experts assisted unwillingly in creating).
Special Tribute –
Two-thousand-and-seven will go down as the best year in the markets for me, but it was also one of the saddest. While I’m grateful for all the times I appeared in the media, I would give them all up for just one more time with the greatest journalist and friend I ever had, Mr. Jim O’Connell.
Each time the music begins for BNN’s “Market Call”, I will always identify it with Jim beginning the best hour in financial journalism worldwide. Whenever I walk into BNN’s offices, I still yearn to see Jim coming down the aisle with his wonderful smile and overwhelming kindness. But most of all, I miss a great friend, who was a part of so many people’s lives five days a week. To his wife, Lisa, family and friends, who all miss Jim dearly, I will remember you during this holiday period and for the rest of my life so I may honor the greatest gentleman I ever knew.
“Those who walk uprightly enter into peace; they find rest as they lie in death.”
- Isaiah 57:2
GONE BUT NOT FORGOTTEN
© Cecilia M. Kocher
The years we’ve shared have been full of joy.
The memories we’ve made will go on and on.
I haven’t stopped crying since you went away,
and I’ve asked God time and time why couldn’t you stay.
You lit up my life, my hopes, and my dreams.
You’ve opened my eyes to see what it all means.
So now that you’re gone how can I forget;
because you were the greatest out of all I have met.
Merry Christmas, Happy Hanukkah and Peace Be With You in the New Year.
****
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Grandich Publications has been given the right to exercise stock options. A complete list of companies and options and share price (in Canadian dollars) is listed on the website, www.Grandich.com. Furthermore, most companies have entered into agreements to pay Grandich Publications a monthly fee.
Important Disclosure
FT and BAJ will reward your patience.
oldguy-Thank you for the wisdom! I will try to reciprocate in due time!!
For NYBOB;question for you. Will you try to look into this for me ? Last summer I was in Canada to look at a couple of mines that I have a large position in. While on a train I was having 4 or 5 Big Oranges in the club car.I struck up a conversation with a French Floozie. During the course of our conversation she asked what was in my portfolio. When I mentioned GG she got all excited and said don't sell that one. She went on to tell me that GG had bought up a whole town in canada to move it out of the way to make room for a major gold mine. Thats all I know and everone I ask seems to know less than I do. THE OLD GUY
Cars cars cars everybody thinks cars. There are 20 million electric bicycles in China. They now add 3 million per year and can't keep up with demand. They are powered by Lead acid batteries. The average life of a battery is 3 to 7 years. Each battery contains 20 lbs of lead. You do the math and you will understand why the Lead price is up 500 % . The biggest by
product of a silver mine is ? you guessed it, Lead. You now know why the price of lead is not comming down too soon. You also now know something that maybe one in one hundred thousand investors knows. Good luck with your investments. THE OLD GUY
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