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Lithium Cobalt Nickel

Violinista
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Lithium Cobalt Nickel

#356753

Postby Violinista » November 15th, 2020, 12:57 pm

The constituents of ev cells for powering electric cars. The constituents of Blackrock World Mining (kindly listed by richfool a few topics down), don't seem to cover Lithium particularly. There's lots in Chile, but I'm more interested in the more stable Australian economy. Is anyone aware of an ETF covering these sorts of miners? How do you invest in ASX shares from the UK? Suggestions welcome.

dspp
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Re: Lithium Cobalt Nickel

#356860

Postby dspp » November 15th, 2020, 7:35 pm

Violinista wrote:The constituents of ev cells for powering electric cars. The constituents of Blackrock World Mining (kindly listed by richfool a few topics down), don't seem to cover Lithium particularly. There's lots in Chile, but I'm more interested in the more stable Australian economy. Is anyone aware of an ETF covering these sorts of miners? How do you invest in ASX shares from the UK? Suggestions welcome.


I would suggest Chile is at least as stable as Australia from a macro perspective. Personally I don't see a shortage in lithium, on the other hand nickel has often been problematic. If you want to salivate here is my battery consumption expectation for just Tesla:

Image

regards, dspp

spasmodicus
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Re: Lithium Cobalt Nickel

#397221

Postby spasmodicus » March 19th, 2021, 8:31 pm

dspp wrote:
Violinista wrote:The constituents of ev cells for powering electric cars. The constituents of Blackrock World Mining (kindly listed by richfool a few topics down), don't seem to cover Lithium particularly. There's lots in Chile, but I'm more interested in the more stable Australian economy. Is anyone aware of an ETF covering these sorts of miners? How do you invest in ASX shares from the UK? Suggestions welcome.


I would suggest Chile is at least as stable as Australia from a macro perspective. Personally I don't see a shortage in lithium, on the other hand nickel has often been problematic. If you want to salivate here is my battery consumption expectation for just Tesla:

regards, dspp


take a look at this, from 4 days ago:
https://www.mining.com/lithium-prices-continue-to-soar-up-88-in-2021/

I'm not sure whether the recent hikes in Li prices really reflect a shortage, or whether this is just market hype stoked by
China controls 60% of the world’s lithium processing and refining capacity ....

If you're interested in Australian diggers
https://themarketherald.com.au/back-to-the-future-which-asx-stocks-will-fly-in-the-new-lithium-boom-2-2021-02-08/
Each of these miners has the potential to ride the lithium wave higher, but it's up to investors to decide where to place their bets
You don't say?

or how about some from home grown Pommy drongos?
https://www.spglobal.com/platts/en/market-insights/latest-news/metals/031721-british-lithium-steps-closer-to-production-with-new-government-funding
hopes to move onto full scale production of 21,000 mt/year of lithium carbonate in three to five years' time
well, I hope that the boom in prices will not be over by then and
https://www.proactiveinvestors.co.uk/companies/news/907863/cornish-lithium-all-set-to-pioneer-the-uk-s-lithium-industry-907863.html
...where the battery metal has been found naturally dissolved in saltwater since 1864.....
but I dunno what the salt water had in it before that.

Back in the USA, our old chums the Burger Boys from the oilfield services industry just hove into view, in "if you can't beat 'em, join 'em" mode, with
https://www.slb.com/newsroom/press-release/2021/pr-2021-0318-sne-lithium-extraction-plant-nevada
Little known factoid. Carl and Marcel Schlumberger started their mineral prospecting career in 1912, by experimenting with passing electric currents through a bathtub of water with mineralized lumps of rock in it. It was not until 1927 that they ran their first electric log down a well which led on to big bucks from providing the service to oil drilling well operations, for which they are famous.

A surfeit of choice, so DYOR.
regards,
S
(edited url that wasn't working]

spasmodicus
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Re: Lithium Cobalt Nickel

#402654

Postby spasmodicus » April 8th, 2021, 4:33 pm

It seems that deep sea manganese nodules, also touted for a long time as a potential source of copper, nickel and cobalt, are coming under environmental scrutiny from the likes of BMW and Volvo, not usually renowned for their green credentials. see
https://www.bbc.co.uk/news/science-environment-56607700
It looks as though they'll have to rely on those digging the stuff up, as usual.
S

scrumpyjack
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Re: Lithium Cobalt Nickel

#402660

Postby scrumpyjack » April 8th, 2021, 4:53 pm

Just because there may be large increase in demand for a particular commodity does not necessarily mean the companies mining it will be a good investment.

It is quite possible that anticipation of increased demand stimulates lots of investment in production which ends up resulting in a surplus supply even compared to the higher demand. Prices fall and the companies mining it do badly financially.

richfool
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Re: Lithium Cobalt Nickel

#402673

Postby richfool » April 8th, 2021, 5:21 pm

I get my exposure to metals such as these mainly through CQS Natural Resources Growth & Income trust (CYN), supplemented by Blackrock Energy & Resources Income trust (BERI).

CYN Holdings include:
Copper 23.5%
Gold 15.5%
Shipping 8.3%
Fixed Interest Securities 6.9%
Base metals 6.6%
Oil & Gas 5.4%
Uranium 5.0%
Lithium 4.6%
Nickel 3.7%
Palm Oil 3.7%
Zinc 3.7%
Silver 3.1%
Rare Earth 2.9%
Platinum 1.6%
Property 1.6%
Iron 1.2%
Mineral Sands 1.2%
Coal 1.1%
https://www.hl.co.uk/shares/shares-sear ... income-25p

https://www.hl.co.uk/shares/shares-sear ... rd-gbp0.01

spasmodicus
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Re: Lithium Cobalt Nickel

#405322

Postby spasmodicus » April 19th, 2021, 12:08 pm

There’s a lot going on in the world of battery metals. Back last November, The OP asked about ETFs covering Lithium mining, but it seems that all minerals used in green technology are experiencing something of a boom at the moment.

In Australia, Orocobre and Galaxy minerals have just announced a merger to create a “global lithium chemicals company”. I had the latter on my watchlist for several months and it has risen from 0.7 to 3.84 over the last year or so. However, I already had significant exposure through ALB, the big USA based company so I have not so far bought in. Ah, the wisdom of hindsight. See
https://www.mining-technology.com/news/orocobre-merger-deal-galaxy-resources/


More generally, the L&G BATG battery supply chain ETF continues to rise steadily, trading at about 1340p compared with 600p a year ago. I looked at this a while back, when its biggest component was TSLA at about 10% and concluded that much of BATG’s increase might be due to the fact that TSLA alone had increased several hundred percent, pulling the whole fund up with it. However I see that TSLA is now in 9th place at about 3.54%, which seems altogether more reasonable. The top two slots are occupied by Pilbara Minerals and Galaxy Resources, mentioned above. At 6.38% and 4.74% respectively. According to L&G’s factsheet, BATG mirrors the “Solactive Battery Value-Chain Index Net TR USD”, in which

The Index is comprised of (sic) companies which are publically traded on various stock exchanges around the world that are either (i) mining companies that produce metals that are primarily used for manufacturing batteries or (ii) companies that develop electro-chemical energy storage technology (i.e. battery technology) and produce batteries. A “battery” is a device consisting of one or more electro-chemical cells that are capable of generating electrical energy from chemical reactions. A company is only eligible for inclusion in the Index if (1) it is of a sufficient size (determined by reference to the total market value of the proportion of its shares that are publically traded) and (2) it is sufficiently “liquid” (a measure of how actively its shares are traded on a daily basis)

further,
On a monthly basis, the weight of each company is assessed and, if any of them exceeds 15% of the Index, the weights of all companies are adjusted so that they are again equally weighted within the Index.

Nice to have a definition of what a battery is, but otherwise it’s little bit inscrutable as regards “sufficient size” and “sufficiently liquid”. Anyway, if it is equally weighted, like they say, I do not see how TSLA ended up comprising 10% of the fund at one point.

In case you are thinking that this is all about Lithium, there’s significant activity going on in the Nickel, Cobalt and rare earths sectors. See the discussions in this board on PRE and RBW. The article below highlights some startup nickel miners in Canada along with more on Lithium see
https://www.mining.com/battery-metals-snapshot-eight-companies-developing-critical-metals-for-the-future/

I haven’t investigated any of these in detail, so DYOR and you never know, there may be winners among them. That said, I think that a post Covid boom in renewables along with widespread money printing by central banks carries a significant risk of boom-bubble-bust in the longer term, so make hay while the sun shines.

Poseidon, here we come!
S


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