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Well done. I will write one also.
This is exactly what I expected, good DD glacierguy. Should anyone initiate a complaint I am glad to support or help if needed as this certainly seems suspect.
Very accurate. Looking at Surge Tim is now a director and Tina the secretary and Ron is also involved as they were/are in Lico. To me this is a slight of hand one day after Tim did an interview with Uptick that seemed positive for the drilling plan of 2018 and 2019. Now This robs Lico of the value and the reason I owned it.
The Surge website looks to be the Lico website simply regurgitated. None of this feels solid to me. Give up 60% for a small amount of short term money? Optioned for peanuts.
Additionally I have had direct exchanges with Tim and always felt comfortable with his timely responses. Now he is running silent and running deep.
I would avoid this or Surge at all costs unless you are intraday trading if for some reason.
I can make the money back, thats easy. Trust...that I doubt could ever be earned back.
Good luck to all on your other investments.
I dont like this move or the news. I sold out late day. If there is something good to it I will re-enter at another time.
https://investingnews.com/daily/resource-investing/energy-investing/lithium-investing/lico-energy-metals-options-ontario-cobalt-properties-surge-exploration-inc/
My target is mid.20's I have 495,000 at .088 average. I am patient and understand what I own. This is a junior mining company and as such isn't going to wow us with news and material events at a rapid pace. If you have done the DD then you know that there aren't any other such companies with arrangements with Glencore. The 2 properties total about 650 ha. The material events that will propel the stock are the resource estimate that shows >100,000,000 since that is the bar Glencore has targeted. Next material event is the Glencore clawback option execution.
Imagine the demand situation on cobalt 6+ months from now, I think its the same or higher and cobalt is enticing space. Then imagine news of the Glencore clawback. That is the time I am measuring the stock price, not sooner as long as the company remains on plan(and they have so far done everything they have said) and the results remain within the expectations( and so far they have too).
This is not a short term technical trade, its an investment position. All the complaining about short term price action is simply the mm doing their job. Do the same and take advantage of the opportunity to accumulate at these levels if meets your portfolio criteria.
Just my humble opinion. If you need any DD let me know. My previous posts might help too.
CEO update today. Link to listen. Consistent with all previously stated plans and inline with the pace of a JV miner. If your in this its for the news that will come in the end of 2018 and 2019 when the resource estimates come in and Glencore claws back.
https://upticknewswire.com/featured-interview-ceo-tim-fernback-of-lico-energy-metals-inc-otcqb-wctxf-3/
Thanks for the link. I think its a good opinion article and is inline with my beliefs also/
This is the Offtake Agreement Lico has with Glencore for the Glenncore Bucke Property, notice how Teledyne property was slid into it;
"Prior to the commencement of Commercial Production, the Purchaser shall enter into an off-take agreement with the Vendor for all ores and/or concentrates produced from the Property and/or the Teledyne Property. The off-take agreement shall be on such terms and conditions as are commercially reasonable and at prevailing market prices;"
I suspect that the acceleration of the Teledyne purchase was executed to ensure that Lico and Glencore are able to create a clean JV without 3rd parties complicating the structure.
Additionally Teledyne is significantly larger in claim ha than is Glencore and after the first round of drill results setting the table makes sense, guests are coming for dinner.
I like where this is going. Considering Teledyne and Glencore Bucke properties are connected this seems to be forward planning/looking. Why else accelerate the payment unless you are preparing for jv with Glencore. Remember Glencore already had language that provided first rights to the Teledyne with Lico. Good job Tim.
Ashaman, Thanks for posting and being timely on Lico DD
I have read these several times over the last year and true to your comment, they are valuable DD documents.
Again, Much appreciated. Your DD is excellent and as a shareholder I appreciate your sharing.
The summary and analysis is much appreciated Ashaman.
I dont think so but anything is possible. I am ignoring the short term until second half 2018
I ran a spreadsheet of all the drill results of the 2017 program and heres what I get;
Glencore Bucke: 21 drill holes 1,900m drilled, avg 2.07m/.53%Co results
Teledyne: 11 drill holes 2,200m drilled, avg 2.219m/2.34%Co results
10,000 meter program planned for 2018
This is really well written and appreciated. I will need to read it thru and digest later for any questions but I thank you for sharing your knowledge and understanding.
The results are good. They validate the quality and presence of the cobalt, however its not a major catalyst or surprise since all the previous assay results had demonstrated the same thing. Dont expect any major upside or downside till the 2018 drill program starts adding data to the resource value. Recent article Tim states that this next drill program will be 10,000 meters.
Now once those start to come in and we have reached the second half of 2018 we could demonstrate an insite value of >100,000 million then based on what we are demonstrating you stand a very good chance of having Glencore clawback into this. The Clawback also gives Glencore exclusive rights to Teledyne also...
This is from the clawback language
Offtake Agreement – Prior to the commencement of Commercial Production, the Purchaser shall enter into an off-take agreement with the Vendor for all ores and/or concentrates produced from the Property and/or the Teledyne Property
What you own this stock for is the day that a press release comes out and indicates that Glencore has exercised its clawback provision and is creating a JV with Lico for both the Glencore Bucke property and Teledyne. Thats 650 ha of resource. On that day, hopefully second half 2018 we will see significant upside in multiples.
So be patient and as long as the drill program and assay results continue thats the catalyst.
Result breakdown...
Glencore Bucke: 21 drill holes 1,900m drilled, avg 2.07m/.53%Co results
Teledyne: 11 drill holes 2,200m drilled, avg 2.219m/2.34%Co results
2018 drill program planning for 10,000m
Heres the final Teledyne results. Consistent good assay result inline with all the previous.
https://web.tmxmoney.com/article.php?newsid=6535348753909425&qm_symbol=LIC
Securing safe battery supply chains
Jason Smith, special to BNN.ca from Market One Media
Fantastic visual cobalt mineralization from LiCo’s Glencore Bucke drilling program.
Fantastic visual cobalt mineralization from LiCo’s Glencore Bucke drilling program. , Image courtesy of Market One Media
As demand for lithium-ion batteries continues to surge, manufacturers are increasingly looking for stable, conflict-free supplies of their component metals.
The primary sources for cobalt, one of those component metals, are the copper mines of the Democratic Republic of Congo.
Given that country’s war-torn history, and notoriously criminal child labour laws, it’s easy to see why marquee brands like Apple, Dell, Samsung and Tesla would want to look elsewhere for its cobalt supply.
Beyond the corporate social responsibility downsides of sourcing from the DRC are the possibility that new hostilities will create supply disruptions. With almost 100% of world cobalt production tied to copper and nickel production globally, cobalt supply is subject to potential unintended swings in global copper and nickel commodity prices. Finding new sources of cobalt mined as a primary metal, and not a bi-product of mining another metal, is essential.
Furthermore, the increasing use of these energy metals within electric vehicles, smart-grid batteries, cellphones, and lithium-ion batteries absolutely requires stable, reliable supply chains for both cobalt and lithium.
And that’s where companies like LiCo Energy Metals Inc. (TSX.V: LIC) (OTCQB: WCTXF) come in.
LiCo has amassed a portfolio of lithium and cobalt projects in safe jurisdictions that could eventually be ripe targets for environmentally-conscious, supply-chain-focused manufacturers.
Company President and CEO Tim Fernback elaborated, “We wanted to spread our holdings around some of the world’s best mining jurisdictions like Canada, the USA and Chile.
“Most cobalt comes as a by-product of copper or nickel mines. Our cobalt projects are primary cobalt sources in conflict-free areas, and our lithium projects are world-class properties in safe, mining-friendly jurisdictions.”
With the electric vehicle market expected to eventually reach 40% of the overall vehicle market, effectively developing its projects could put LiCo in the proverbial catbird’s seat.
Primary Cobalt in a Safe Jurisdiction
The projects seeing the most work of late are the company’s Teledyne and Glencore Bucke cobalt properties, which are located in and around Cobalt, Ontario.
A 4,000-metre diamond drilling program completed last year on these adjoining properties identified several areas with significant cobalt mineralization.
LiCo has an option to own 100% of Teledyne, subject to a 2% net smelter royalty with Palisade Resources (now renamed “New Found Gold Corp.”).
With this option comes $25 million in inflation-adjusted work and in-place infrastructure, including an adit driven to 500 feet.
Teledyne is directly on-strike with the Aguanico Mine, the Cobalt camp’s most prolific past-producing cobalt mine. Aguanico produced 4.35 million pounds of cobalt and 980,000 ounces of silver in the early 1900s.
Glencore Bucke lies on the west side of Teledyne. LiCo can earn a 100% interest in the property from mining-major Glencore, subject to back-in rights, a production royalty and an off-take agreement.
That deal with Glencore is driving LiCo’s next steps for the property, which include another 10,000-metres of drilling.
Fernback explains, “We’re focusing on Glencore Bucke first because, if we can prove up a $100-million resource, we could entice Glencore to exercise their back-in rights, and get them to consider a joint venture. Our thirteen additional mining claims associated with the Teledyne Property will continue to add value as we strive to calculate a larger and more comprehensive underground resource in the area.”
Access to the World’s Most Prolific Lithium Brine
On the lithium side of the equation, LiCo has secured an enviable position in Chile’s Atacama Desert.
The Salar de Atacama is a 3,000-square-kilometre salt flat in the eponymously named desert. It has high lithium and potassium content and extremely low rainfall. Those characteristics make the area the world’s lithium mecca.
“The Atacama Desert is home to the lowest cost, highest productivity lithium brine in the world,” says Fernback. “Fully 37% of the world’s lithium is produced there. And if you expand your radius out to the sections of Bolivia and Argentina that, along with Chile, form the Lithium Triangle, you have close to 70% of the world’s lithium production.”
Thanks to its option to earn an initial 50% interest in the Purickuta project, LiCo is one of only four companies operating in the Salar de Atacama.
Purickuta is located 22 kilometres from SQM and Albemarle’s large-scale production facilities. The project also lies close to other needed infrastructure, including power, labour, communications, and transportation. Chile is a highly sought after mining jurisdiction and has been recognized by publications like the Mining Journal as being one of the best places in the world to operate.
Potential Lithium Supplies for Tesla’s Gigafactory
LiCo’s quest to amass high-potential projects in safe jurisdictions naturally led it to Nevada.
Not only is the state mining-friendly, but it is also prospective for lithium brine deposits.
And the capper?
Telsa is building its gigafactory near Sparks, Nevada with the goal of producing 35 gigawatt-hours (“GWh”) of battery production per year.
The presence of the gigafactory definitely enhances the value of LiCo’s two projects in the state: Black Rock Desert and Dixie Valley.
The company has a 70% earn-in option in Black Rock Desert from Nevada Energy Metals, subject to a 3% net smelter royalty. This geothermal resource area is known to generate fluids that contain anomalous lithium values.
Dixie Valley is another large geothermal system that is still active. LiCo has an option to acquire 100% of the property from Nevada Energy Metals. That deal is also subject to a 3% NSR.
Dixie Valley possesses the key attributes of a lithium brine deposit, and the company’s management team is excited about the prospect of exploring it further.
Plenty of News in 2018
Looking ahead, the expanded drill program on Glencore Bucke and Teledyne cobalt properties will drive the LiCo Energy Metals (TSXV: LIC) story in 2018, and the company remains in good position to capitalize on the bull market for cobalt.
Fernback noted, “Cobalt has been the best preforming commodity for the past three years showing over 179% growth in this period. The demand is continuing to grow, and supply cannot keep pace. It is a great place to be for LiCo. The exploration program on Glencore Bucke will be a good catalyst for growth — especially if we can get an underground resource defined and attract a JV partner like Glencore. Furthermore, we also very actively looking for new cobalt acquisitions in safe mining jurisdictions like Canada and Chile.”
On the Cobalt Camp? The one written by Equity Guru?
I know we should have the last Teledyne assay result soon. The dollar value of the slippage has appeared to me like some simple mm activity. I think the accumulators have their positions and are holding for later this year. Might be some momo traders falling out but again the dollar volume is meaningless imo.
The interest is high. This is a mining company and investors understand the time frames needed to reach full shareholder value. You will see a PR very soon I believe on the final assay results for Teledyne drilling. Owning this you should be patient and have an investors mentality if you have done the DD. It should be worth it imo.
In the meantime, go golf, fish or surf! lol, just trying to lighten the mood.
Ok, If you hear of any conformation or details let me know.
Kerch, do you know if they are attending the the convention?
Yes, there were 11 holes drilled at Teledyne, only 5 reported so far. The other 6 expected soon. After that then will be the 2018 drill program announcement and plan which I don't think they will waste anytime executing.
my target also
I am of the same mindset. The pumping was unnecessary and out of hand from some desk that had an interest. The drilling program and assay results speak for themselves as do the terms with Glencore. The company has the funds for second drill program and everything is being driven to that occurring next. This will have its best roi second half 2018.
I have done a good deal of DD and approached it from several different angles. Everything comes back good for me. I could care less what happens over the short haul as they move it around...I will hold for the material news that elevates it.
Tim is a good CEO and as long as the assay results continue to prove out we have a very good chance to see significant upside.
Thanks, a strong sign for this space.
Agreed. The results from the 2017 drill program seem to be better than the 1979-1981 drill results that set the stage we now stand upon.
The assay results seem to exceed the targeted expectations.
The relationship with Glencore and claw-back clause. Something only LiCo has as far as seems known in Canada
The size of the properties for Gb/Tdyne, almost 670 hectare.
Multiple projects and locations all aligned to a common theme
This remains undervalued because its relatively still unknown. There is a Cobalt storm coming and when the 2018 drill program starts to deliver there will be a match of product and timing.
There may very well be a day in 2018 when a news release reflects Glencores partnership to Lico, and on that day this wont be under the radar anymore and the valuation will explode.
If you can afford to be patient with this in 2018 you should have a multi-bagger. Technically this is tightened up and when it pops over .15 should go mid .20's. Nothing technically or fundamentally concerns me with this yet. I would not be surprised to see this make $1 by years end if it proves out the Cobalt. A news release with it getting Glencore support would be huge.
Should see some more soon. Listen to this as Tim does a good job of providing a sit-rep and timeline. Pay particular attention to the fact that he indicates that the relationship with Glencore could materialize in 2018.
https://upticknewswire.com/featured-interview-ceo-tim-fernback-of-lico-energy-metals-inc-otcqb-wctxf-2/
Agreed, If it bangs its head against that wall again on a similar volume event then its suspect.
Yes and No...seeing 10% of the float trade on an record volume day and not holding that move or even having a more significant move..that is not encouraging price action. Either the mm are very much in control or early investors are unloading into strength. I have a three hundred thousand share position from under .08 and I wouldn't sell before 2019 at least
Stock Day was an excellent update from the CEO. I have no doubt this is a $1 or better stock this year.
I am as long as anyone, but technically having a 14+million share day 3 days ago and trading below that day...not good technically. If the mm don't move this over .15 on the next assay result coming this or next week...then you know what this is. There have been enough assaults on that ceiling over 15 months, and each with increasing volume that its time to question the price action should it fail again.
And when is that expected?
I am not of the opinion that this will be a big mover in the short term but I do think this space and this stock will have significant upside. In the near term the assay result should be reported and I expect those to confirm the preliminary press releases, may see a bump there.
I think the stock has a solid floor at this price (.10) and I have been following this for a year now everyday on my radar so I think I have a good feel for it and how the mm are working it.
If you do some DD on Glencore and you consider the clawback option coupled with the the drill results...I think this pays multiples at this price over the next 365.
Heres some DD for you;
http://epsteinresearch.com/category/lico-energy-metals/
https://www.bloomberg.com/news/articles/2017-12-12/glencore-to-double-cobalt-output-as-electric-cars-drive-demand
Theres more out there if you dig. Cobalt plays should see some big days in the future.
Good luck
Regarding volume growth. This link is to Stocktwits were I posted a chart of volume growth since 2010. It is all CNG, LNG and RNG.
Doesn't look shrinking to me.
https://stocktwits.com/willowcharts/message/99993042
Having the right idea is different than have the wrong timing. I will say though that management is responsible for both and this is where I question AJL.