Niobium demand to pick up in Q3 2009

http://www.commodityonline.com/news/Niobium-demand-to-pick-up-in-Q3-2009-16206-3-1.html

LONDON: Demand for niobium has seen enormous growth in recent years. At about 58,000t contained Nb, processors' shipments in 2007, reported by the TIC, were double those in 2003. That continued into early 2008, with H1 shipments up 18% on H1 2007 and 12% on H2 2007 (although primary production was down by 13%).

The niobium market is not, however, immune to global economic turndown and with consumers both reducing purchases and running down inventories, total shipments for 2008 were probably little higher than in 2007. Demand in H1 2009 will very likely be flat at best.

Global GDP and industrial production are expected to enter a recovery phase in 2010. Metal markets will tend to begin re-stocking before that and Roskill predicts that demand for niobium will pick up as early as Q3 2009 and quickly return to a growth trend. Niobium producers are well-placed to supply the world's ferro-niobium needs for the foreseeable future. Several new tantalum-niobium projects are also expected to become operational over the next year or two.

Niobium demand to continue growing over the long term

The recent large increases in niobium consumption have not come as a result of new applications. The principal markets - HSLA steels, stainless steels and superalloys - are essentially the same as they have been for years. Growth has come not only from the overall rise in global production of these materials, but also from the greater penetration of niobium in markets where it is already well-established and often irreplaceable.

HSLA steels, by far the largest application for niobium, are widely used in automobiles, construction and natural gas linepipe, all market segments that will return to long-term growth in a year or so. With the ongoing drive to achieve weight reduction in both the automobile and construction sectors, HSLA steels are likely to win further market share from mild steels.

The world's appetite for energy will see demand for gas linepipe remain healthy for many years to come. With the supply disruptions that have been seen in Europe recently, it is not beyond the realms of possibility that whole new transmission networks could be built. Demand for linepipe could prove to be higher than previously forecasted. The HSLA steel grades required for high-pressure linepipe cannot be made without niobium.

In the stainless steel industry, niobium is consumed mainly in ferritic stainless and most notably that used for 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. Strong recovery will begin in 2010. 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.

There is good scope for niobium consumption to grow considerably in some parts of the world. In 2008 the overall unit consumption of niobium in steel was around 55-60g/t of steel produced. In the most highly developed countries the figure was 100g/t or more, whereas in China only around 40g/t were consumed. There would appear, therefore, to be significant potential for the increased use of niobium. While, in 2008, about 10% of the steel produced globally contained niobium, that share could rise to as much as 20% in future.

Niobium prices to remain at current levels

Key characteristics of the niobium market are the important role played by long-term contracts, which now cover about 95% of total sales, and highly stable prices. From the early 1990s to the mid-2000s, the average export price for Brazilian ferro-niobium remained within the range of US$12,500-13,500/t contained Nb.

That changed in 2007, when prices for ferro-niobium and other niobium products began to climb sharply. Average import prices for ferro-niobium reported by major importing countries in 2008 were more than double those seen in 2006. In the case of Japan, the average price rose from about US$9,000/t (gross weight) to over US$22,000/t.

Roskill's view is that the increase in price is not temporary. In real terms, niobium prices had been falling for years at the same time as demand was increasing and producers were expanding capacity, probably at considerable expense. An adjustment to the benchmark price at some point was inevitable. Niobium prices, particularly ferro-niobium prices, are likely to remain at about the level seen in late 2008 and early 2009 and will display little volatility in the coming years.

Even at the higher price, niobium inputs constitute a very small part of total production costs in the main end-use markets, and the opportunities to substitute for niobium in most applications are very limited.(Courtesy: PRNewswire)

NXG NEWS OUT 12/10/08

Northgate Announces Dramatic Increase in Resources at its Young-Davidson Project

Underground Measured and Indicated Resources Double to Three Million Ounces of Gold


VANCOUVER, Dec. 10 /PRNewswire-FirstCall/ - Northgate Minerals Corporation (TSX: NGX, NYSE ALTERNEXT/AMEX: NXG) is pleased to report the results of a new NI 43-101 compliant mineral resource estimate at its 100% owned Young-Davidson property near Matachewan, Ontario. The resource estimate includes both underground and open pit resources and incorporates all diamond drilling on the property up to September 30, 2008.

see more: http://finance.yahoo.com/news/Northgate-Announces-Dramatic-prnews-13799693.html

This needs to be fought with the last breath of every free man and woman on the planet.

http://www.telegraph.co.uk/earth/environment/climatechange/3530607/Lawyers-call-for-international-court-for-the-environment.html

Lawyers call for international court for the environment

A former chairman of the Bar Council is calling for an international court for the environment to punish states that fail to protect wildlife and prevent climate change.


By Louise Gray, Environment Correspondent
Last Updated: 1:29PM GMT 28 Nov 2008

Stephen Hockman QC is proposing a body similar to the International Court of Justice in The Hague to be the supreme legal authority on issues regarding the environment.

The first role of the new body would be to enforce international agreements on cutting greenhouse gas emissions set to be agreed next year.

But the court would also fine countries or companies that fail to protect endangered species or degrade the natural environment and enforce the "right to a healthy environment".

------>This is not a right. Nowhere in our constitution is this right given nor is this an unalienable right that is given by God. Fear the day that government feels they have a mandate to enforce the right to a healthy environment.

The innovative idea is being presented to an audience of politicians, scientists and public figures for the first time at a symposium at the British Library.

Mr Hockman, a deputy High Court judge, said that the threat of climate change means it is more important than ever for the law to protect the environment.

The UN Climate Change Conference in Poznan, Poland this month is set to begin negotiations that will lead to a new agreement to replace the Kyoto Protocol in Copenhagen next year. Developed countries are expected to commit to cutting emissions drastically, while developing countries agree to halt deforestation.

Gordon Brown, the Prime Minister, has agreed the concept of an international court will be taken into account when considering how to make these international agreements on climate change binding. The court is also backed by a number of MPs, climate change experts and public figures including the actress Judi Dench.

Mr Hockman said an international court will be needed to enforce and regulate any agreement.

"The time is now ripe to set this up and get it going," he said. "Its remit will be overall climate change and the need for better regulation of carbon emissions but at the same time the implementation and enforcement of international environmental agreements and instruments."

As well as providing resolution between states, the court will also be useful for multinational businesses in ensuring environmental laws are kept to in every country.

The court would include a convention on the right to a healthy environment and provide a higher body for individuals or non-governmental organisations to protest against an environmental injustice.

Mr Hockman said the court may be able to fine businesses or states but its main role will be in making "declaratory rulings" that influence and embarrass countries into upholding the law.

He said: "Of course regulations and sanctions alone cannot deliver a global solution to problems of climate change, but without such components the incentive for individual countries to address those problems – and to achieve solutions that are politically acceptable within their own jurisdictions – will be much reduced."

The court would be led by retired judges, climate change experts and public figures. It would include a scientific body to consider evidence and provide access to any data on the environment.

Most importantly, Mr Hockman said an international court on the environment would influence public opinion which in turn would force Governments to take the environment seriously. He said: "If there are bodies around that can give definitive legal rulings that are accepted as fair and reasonable that has its own impact on public opinion."

Friends of the Earth welcomed the idea.

A spokesman said: "We think any institution that is going to promote and help people enforce their right to a clean and healthy environment is a good thing."


This is a very slippery slope and pray that this does not happen. This court would have the ability to levy fines against countries who do not follow their dictates.

The first question is where does the money produced from the fines go?

Next question is if the countries do not pay the fines, what happens? Do they send in the environmental police?

How funds the court and who presides? Who determines the judges, scientists or politicians that get to sit on it?

This may be the biggest joke on the world and is the prelude to a global cap and trade system. If a global enviro court thinks they can fine me or my country for scientific nonsense, then they may end up facing the business end of my AR-15.

-faz

Nov. 1st S&P Report on DPDW

Not sure if this has been posted yet, but here is the S&P Report for November 1st. Couple of nice things in it but one thing that stood out to me is that I noticed is that the institutional ownership is listed as 28%.

http://fazoolius.fileave.com/DPDW_SP_Report_Nov_1st_2008.pdf



-faz

I noticed too that Flotation Tech was not included in the report. A little bit surprising if you ask me.

However, from the July 21st Report, they do a review of the acquisition:

Recent Developments

In May, DPDW announced that Flotation Technologies, Inc., a world leader in the engineering, design, and manufacturing of deepwater buoyancy and polyurethane elastomer systems, received a contract award for a unique, custom-designed riser buoyancy solution from an international energy company. The $5.5 million contract is expected to be delivered in the third and fourth quarters of 2008. The client and product are confidential due to the nature of the project. On April 17, Deep Down announced a definitive agreement to purchase
all of the outstanding capital stock of Flotation Technologies, Inc.

http://fazoolius.fileave.com/DPDW_SP_Report_July_21st_2008.pdf

-faz

Yeah, this also from the summary at the end:

For fiscal year 2008, analysts estimate that DPDW will earn $0.02. For the 2nd quarter of fiscal year 2008, DPDW announced earnings per share of $-0.04, representing -200% of the total annual estimate. For fiscal year 2009, analysts estimate
that DPDW's earnings per share will grow by 450% to $0.11.


Can't wait for the next few quarters as well as the announcement of opening of offshore drilling around the country. I believe this announcement is imminent and will be very favorable for us.

-faz

S&P Report from the 6th of September. I am not sure if this has already been posted, apologies if it has.

http://fazoolius.fileave.com/DPDW_SP_Report_Sept_6th_2008.pdf

-faz

Nice!

“Recognized as one of the fastest growing companies in both Maine and the industries the company serves, Flotation Technologies has received increased market interest over the past few years due to it being one of the only U.S.-based manufacturers of the products it produces and its ability to address the growing needs within these market segments.”

http://mainebusiness.mainetoday.com/newsdirect/release.html?id=6158

-faz

Sage,

nice find! No doubt these folks were instrumental in the development of Deep Down's exciting new website. Quite possibly looks like the web development team is now in house.


-faz




"I swear by my life and my love of it that I will never live for the sake of another man, nor ask another man to live for mine." - John Galt

.80's on deck after we get though ARCA. Could go green here!

-faz




"I swear by my life and my love of it that I will never live for the sake of another man, nor ask another man to live for mine." - John Galt

bid is stacking

.77 x .78 3x2

volume 3.423 million

-faz

And a spike you shall receive!!!

Nice volume today!

-faz

I AM OFFICIALLY IN THE TWILIGHT ZONE!

.74 x .79? 3.3 million in volume?

-faz

Are we at an all time high in volume yet?!?!?

2.1 MILLION @ .65!!!!




"I swear by my life and my love of it that I will never live for the sake of another man, nor ask another man to live for mine." - John Galt

Over 1 million in volume!

Almost 900k in volume in the first 2 hours!!

-faz

ARCA sure has a lot of shares on the ask!!

Nice size hits!

-faz




"I swear by my life and my love of it that I will never live for the sake of another man, nor ask another man to live for mine." - John Galt

He definitely has an agenda eh?

Crazy volume!!

DPDW 0.71 -0.08 vol 700k

-faz

Thanks Sulphur!

I love to see them working like crazy down there.

-faz

you beat me to it mate! I agree with your assessment regarding increased jobs. This would solidify an offshore market for US petroleum for a while and would definitely increased demand for products from DPDW!

-faz

The President is speaking about lifting the ban on the OSC right now. He is really putting the spotlight on the refusal by congress to even vote on the matter.

I think that the reps and senators will be hearing an earful on this when they go home in August and hopefully they will lift their ban.

This would be a great thing for DPDW as it would mean an huge influx of rig activity to the gulf and other offshore areas around the US.

-faz

Big hits coming in on the ASK!!!

Joe,

Thanks for the summary, your work is always much appreciated!

-faz

brikk,

You might be right with your hunch, I however think that they are the same lot and that maybe they sold the 135k on the market.

The private placement was done on the 5th of June, 2008. These shares were filled on the 22nd of July, 2008 and effective as of June 30th, 2008. The position of 2,721,188 shares was acquired between March 31st and June 30th, 2008, which leads me to believe it is from the private placement.

7/22/08 fling by Dubuque: http://www.secinfo.com/$/SEC/Filing.asp?D=s2hv.tj

4/14/08 filing by Dubuque: http://www.secinfo.com/$/SEC/Filing.asp?D=s2hv.ts

(No DPDW shares reported by Dubuque on the 4/14 filing)


My gut says that these shares are the same lot as from the private placement. I am not sure where the difference comes from, for all we know they may have sold the shares to the market. However, you may indeed be right about your theory and I will have an even bigger smile on my face and sleep just a bit easier if it is indeed the way things shake out.

I am looking forward to the others institutions disclosing their positions to the public very soon.

My apologies if I confused you at all. It is late and I am off to bed.

-faz







"I swear by my life and my love of it that I will never live for the sake of another man, nor ask another man to live for mine." - John Galt

Yep, I saw your original post, I was just wanted to post the total holdings of Dubuque.

-faz




"I swear by my life and my love of it that I will never live for the sake of another man, nor ask another man to live for mine." - John Galt

Dubuque Bank and Trust holdings:



a link to this can be found at: http://www.mffais.com/institutions/125612/



-faz

thanks! a good read!

-faz

Is that ARCA on the bid at .83? Is he all done selling for now?

-faz

DESCRIPTION OF PROPERTY (from the S-1)

Flotation has owned and occupied its current Biddeford, Maine facility for approximately one year. The facility contains approximately 6,000 square feet of office space and approximately 40,000 square feet of manufacturing space. Flotation is in the process of building a second continuous mixer at a cost of $500,000. This mixer will augment the production of foam on the same manufacturing line as the original mixer.


Not sure if this has already been posted, but I like that Flotation is expanding too!

-faz

Employees (from the S-1)

We have 165 employees as of July 16, 2008. Our employees are not covered by collective bargaining agreements and we consider our employee relations to be good. Our operations depend in part on our ability to attract a skilled labor force. While we believe that our wage rates are competitive and that our relationship with our skilled labor force is good, a significant increase in the wages paid by competing employers could result in a reduction of our skilled labor force, increases in the wage rates that we pay or both.


Glad to see they are getting bigger!

-faz




"I swear by my life and my love of it that I will never live for the sake of another man, nor ask another man to live for mine." - John Galt

Good find there Joe! This just keeps getting better and better.

-faz

These guys are in for 5,000,000 shares

Perella Weinberg Partners Oasis Master Fund (footnote (aa))


http://www.pwpartners.com/

About Perella Weinberg Partners

Perella Weinberg Partners is an independent, privately-owned financial services firm that provides corporate advisory and asset management services to clients around the world. The Firm has assembled a group of talented and experienced professionals recruited from a wide variety of leading global financial institutions.

The Firm’s Partners have significant experience and tenure in the financial services industry. Our Partners share a common vision based on integrity, professionalism and trust, along with a primary commitment to serving the interests of our clients.

The Firm raised over $1 billion from a group of global strategic investors to establish operations and to fund investment strategies in the Firm’s asset management business.

These strategic investors, along with the Firm’s Partners and its Advisory Council, form the nucleus of a unique network of global relationships. Our goal is to benefit clients by leveraging this extensive network and harnessing the intellectual capital inherent in each of our businesses.

This is another intersting group:

Newland Master Fund, LTD. footnote (v)


Ken Brodkowitz and Mike Vermut

http://www.hfmweek.com/cgi-bin/item.cgi?id=1425&d=pg_dtl_print&h=pg_hdr_print&f=pg_ftr_print

2007-05-31
Elana Margulies

NEW YORK: Ken Brodkowitz and Michael Vermut, formerly partners at Balyasny Asset Management (BAM), have left to set up their maiden hedge fund, according to an investor document. The firm, Newland Capital Management, LLC, is set to debut a long/short equity hedge fund in July. Additional details could not be immediately obtained. Brodkowitz did not return a phone call seeking comment. Brodkowitz and Vermut, who will comanage the new fund, co-managed the industrial portfolio at Chicago-based BAM, a $1bn hedge fund firm that was founded in 2001 by Dmitry Balyasny, a former Schonfeld Securities trader. Before joining BAM, Brodkowitz was at the Galleon Group, first as head trader for its New Media fund and then as a portfolio manager. Vermut was a senior analyst at Harvest Management, LLC, a New York-based multi-strategy hedge fund.


These guys picked up 3,000,000 shares. Nice!

-faz




"I swear by my life and my love of it that I will never live for the sake of another man, nor ask another man to live for mine." - John Galt

brikk,

Nice. I have not gotten a chance to start getting into these names, however, I did notice who was brokering quite a few of the transactions here.

Notice that Weiss Investment Managment (not sure if this is related to Weiss Multi Strategy that owns 500k shares already) is involved in a couple of purchases. Also, Dahlman Rose has 2 other purchases by employees.

See the footnotes below and pay attention to the following ones:

(m)(n) - Dahlman Rose
(q)(w) - Weiss Investment Management

Penn Capital was also very active in this deal.

List of Shareholders from private placement:


From the filed S-1:




-faz

Thanks Penny!




"I swear by my life and my love of it that I will never live for the sake of another man, nor ask another man to live for mine." - John Galt

low volume today. 78k traded. Looking for the same flurry of activity as we got on friday.

-faz





"I swear by my life and my love of it that I will never live for the sake of another man, nor ask another man to live for mine." - John Galt

From the 10-KSB filed today:

This Annual Report on Form 10-KSB/A is filed as an amendment to the Annual Report on Form 10-KSB filed by Deep Down, Inc. (the “Company”) on March 31, 2008 (the “Original 10-KSB”). The Company is amending Item 8(a) (Controls and Procedures) to make a typographical adjustment relating to the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)). The Company is also amending Item 10. (Executive Compensation) to further clarify the required disclosures under provisions of Item 402 in Regulation S-K.


From Original Filing (May 1st, 2008):



From New Filing (Today):



looks like the Monthly vehicle allowance was added into the compensation tables.

-faz

From the 10K released today:

This Quarterly Report on Form 10-Q/A is filed as an amendment to the Quarterly Report on Form 10-Q filed by Deep Down, Inc. (the “Company”) on May 16, 2008 (the “Original 10-Q”). The Company is amending Item 4T (Controls and Procedures) to make a typographical adjustment relating to the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)).

From today's filing:

Our management, including our principal executive officer and principal financial officer, does not expect that our disclosure controls and procedures or our internal controls will prevent all error or fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Due to the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected.



From the Original 10K:

Our management, including our principal executive officer and principal financial officer, does not expect that our disclosure controls and procedures or our internal controls will prevent all error or fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Due to the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. To address the material weaknesses, we performed additional analysis and other post-closing procedures in an effort to ensure our consolidated financial statements included in this annual report have been prepared in accordance with generally accepted accounting principles. Accordingly, management believes that the financial statements included in this report fairly present in all material respects our financial condition, results of operations and cash flows for the periods presented.