Kitco News
(Kitco News) – Global cumulative lithium-ion battery capacity could rise over five-fold to 5,500 gigawatt-hour (GWh) between 2021 and 2030, said Wood Mackenzine in a news release published today.
The post Global lithium-ion battery capacity to rise five-fold by 2030: Wood Mackenzie appeared first on WorldSilverNews.
David Smith
Tue, 03/22/2022 – 07:51
Financial Times/Gideon Rachman/3-21-2022
“‘Tell me how this ends?’ is one of those things that people say in films — and sometimes also in real life. It is the crucial question about the war in Ukraine — but one that is sometimes obscured by the sheer drama and horror of day-to-day events.”
USAGOLD note: Nobody, including Putin, believed that the war in Ukraine might become a Russian quagmire, but quagmire it is. Rachman raises issues that most of us would rather ignore. The tide of events, he suggests, might offer a different end game, but ultimately expect the worst – a prolonged war.
The post Today’s top gold news & opinion first appeared on Today’s top gold news and opinion.
MarketWatch/Vivien Lou Chen/3-18-2022
“Rising stagflation risks in the U.S. and Europe are raising the possibility of a ‘lost decade’ for the 60/40 portfolio mix of stocks and bonds, historically seen as a reliable investing choice for those with moderate risk appetites. Such a ‘lost decade’ is defined as an extended period of poor real returns, says Goldman Sachs Group Inc.”
USAGOLD note: While stocks languished during the stagflationary 1970s rising about 13%, gold went on a tear rising over 700%.
Gold, silver and stocks during the stagflationary 1970s
Chart courtesy of TradingView.com
The post Today’s top gold news & opinion first appeared on Today’s top gold news and opinion.
We get lots of questions from the public about precious metals.
Some people are curious about the basics. Others are skeptical about the case for owning gold and silver. Still others are longtime customers who have highly specialized inquiries.
Here we will answer a few of the most common, most broadly relevant questions we get…
It’s possible that anti-gold takes in the financial media will scare some would-be bullion buyers away. But the reality is that the Fed’s rate hikes are nothing to be afraid of – and won’t be unless and until the central bank actually gets out in front of inflation.
Fed officials opted for only a baby-step rate hike of a quarter point in March despite staring at the worst inflation problem in decades. Their rate-hike campaign may not get far, especially if market volatility and geopolitical turmoil continue to pose risks to the stability of the financial system.
The threats of inflation, supply disruptions, war, and soaring debt levels should make investors nervous.
And it’s likely more of them, not fewer, will find physical precious metals attractive as a safe haven in this environment.
A specific price objective would be somewhat arbitrary since inflation itself is constantly in motion and can be measured in many different ways.
The most popular inflation gauge, the Consumer Price Index, is running at a 40-year high of 7.9%.
As alarming as that number is, it understates the true reality of price level increases faced by American households.
The American Institute for Economic Research puts together what it calls the Everyday Price Index.
Based on its 24 components, Everyday Prices are up 9.5% from a year ago.
Meanwhile, the ShadowStats Alternate Inflation Index shows a whopping 16% year-over-year jump in consumer prices. That’s double the headline CPI number!
Even the Bureau of Labor Statistics’ understated inflation data shows that gold is far from an inflation-adjusted high. Despite rallying to over $2,000/oz in March, gold prices remain below their January 1980 peak of $850/oz in real terms. That old high would be equivalent to $3,100/oz after merely adjusting for the portion currency depreciation actually reflected in the CPI.
Gold prices could easily exceed that $3,100 level before being at a real peak.
Recent events have certainly put pressure on product availability. Customers have faced higher premiums and delivery delays on some bullion products, though Money Metals has committed significant resources to keeping those delays to a minimum and has performed better than its competitors in this regard.
While there doesn’t appear to be an actual shortage of silver at the moment, there are shortages in the pipeline from refiners to mints to wholesalers.
In March, the dysfunctional U.S. Mint announced that shortages of silver blanks for striking coins will force the cancellation of some planned products. The Mint will no longer be producing replica Morgan and Peace Silver Dollars for 2022 – a big disappointment for fans of these historic coins minted from 1878 to 1935.
The world’s most recognized mint can’t figure out how to source the raw materials needed for striking its products.
For the past two years, it has blamed COVID for failing to produce coins in sufficient quantities to meet demand. Now it’s just looking incompetent.
Investors can avoid the elevated premiums associated with U.S. Mint products by opting for privately minted rounds and bars instead. Or even the bullion coins produced by other government mints.
Even if all mints were to suspend operations, there would still be a large secondary market for coins, rounds, and bars that have previously been purchased. Dealers can get new inventory from customers who sell back to them, though it is possible for demand to overwhelm supply and make acquisition difficult at any price.
Platinum and palladium are used in pollution-scrubbing catalytic converters for conventional automobiles. They have many demand sources beyond that, including from high-tech industries, jewelers, and mints.
Catalytic converters won’t go away anytime soon, especially given rising demand for cars from billions of people in India and China who can’t afford Teslas.
Meanwhile, zero-emission vehicles may start more widely employing fuel-cell technologies that require platinum-group metals – along with silver.
That said, platinum and palladium markets can be more volatile and less liquid than gold and silver. The platinum group metals don’t have a history of being used as money like gold and silver, so they may not offer the same level of protection from a currency crisis.
But when either metal can be obtained at a lower price per ounce than gold – and currently platinum can – it tends to be a great value opportunity.
Vancouver-based Aris Gold Corp. (ARIS:TSX; ALLXF:OTCQX), today announced that “it has entered into a definitive agreement with MDC Industry Holding Company LLC (Mubadala), a wholly owned subsidiary of the Abu Dhabi based investment company Mubadala Investment Company PJSC, whereby Aris Gold will acquire a 20% joint venture interest in the Soto Norte gold project in Colombia, with the option to acquire a further 30% interest.”
The firm stated that Soto Norte is a large property that offers high-grade mineral reserves with district-scale potential. Aris Gold claimed that it has also taken additional steps to strengthen its financial position by $100 million. The company advised that is has leveraged its existing precious metals stream at the Marmato Mine by $65 million and is making arrangements to secure a $35 million convertible debenture.
The company’s Chair Ian Telfer commented, “Acquiring interests in large-scale deposits with low technical risk is the right move for Aris Gold. This is how successful gold mining companies are built, and I’m pleased to see Aris Gold is delivering on this responsible growth strategy.”
Aris Gold’s CEO Neil Woodyer added, “Aris Gold will build a successful operation using state-of-the-art technology that will provide long-lasting benefits to the local communities and significant social development opportunities for the region. Soto Norte dramatically increases our growth profile with its potential to produce over 450 Koz Au per year. Construction of Soto Norte is expected to follow the expansion of our 100%-owned Marmato gold mine.”
Industrials at Mubadala Executive Director and Minesa Chairman Danny Dweik stated, “We are delighted to bring in Aris Gold as our operating partner in Minesa. The Soto Norte project will benefit from their technical capabilities and Colombian experience, and we look forward to working with them and the local communities on bringing this world-class project to fruition.”
“The team at Aris Gold has extensive local market experience and a long track record of successfully executing complex Colombian projects. We believe they are well-positioned to support Minesa in becoming a leading gold mining company in Colombia, ” remarked Mohamed Mirza, Minesa CEO and Director at Industrials at Mubadala.
The company explained that the Soto Norte underground gold project hosts an Indicated resource containing 8.5 Moz Au, 55.3 Moz Ag and 193 Mlb Cu and an Inferred resource of 3.6 Moz Au, 22.8 Moz Ag and 107 Mlb Cu.
The underground operation at Soto Norte has the capacity to process 2.6 Mt of material yearly. The project’s Feasibility Study (FS) estimates initial total capital costs of $1.2 billion with average production of 450 Koz Au per year. The Study calls for a 14-year mine life with average all in sustaining costs (AISC) of $471/oz Au. The FS estimates that utilizing a net present value (NPV) of 5%, the property has an after-tax value of $1.5 billion and an internal rate of return (IRR) of 20.8% based upon a $1,675/oz gold price. If the average gold price were to increase to $1,925/oz, then the projects after-tax project NPV would rise to $2.0 billion, and the IRR would be 24.4%.
The company stated that Soto Norte offers district-scale potential due to successes achieved in neighboring areas by other companies. The firm indicated that the Soto Norte project is on a path to produce 400 Koz/year in addition to the production from its Marmato mine that has capacity to deliver 175 Koz Au per year.
Aris Gold advised that it is entering into a comprehensive joint venture agreement with Mubadala to advance, build, manage and operate the Soto Norte project. Under the terms of the agreement, Aris is to pay Mubadala $100 million in cash ($50 million at closing plus $50 million within 12 months) in exchange for a 20% interest in the joint venture company and Minesa.
The company stated that the transaction is expected to close in in April 2022, subject to completion of ordinary closing conditions. In addition, Aris Gold at its discretion has the option to acquire an additional 30% interest in the joint venture company and Minesa for an additional payment of $300 million in cash subject to regulatory approvals by mining agencies.
As part of the agreement between the two firms, “Mubadala is retaining a precious metals streaming interest on 7.35% of payable gold and 100% of payable silver.” The report noted that the streaming royalties will only apply to incremental production after the first 5.7 Moz Au gold has been produced.
Aris Gold advised that in order to finance its new JV at Soto Norte, “it has amended its current $110 million precious metals stream at the Marmato mine with Wheaton Precious Metals International (WPMI) to increase the aggregate total funding amount to $175 million, with additional payments to Aris Gold of (i) $15 million upon closing of the Transaction and (ii) $50 million payable during the construction and development of the new Lower Mine.”
The company mentioned that it also has made arrangements to issue a $35 million convertible senior unsecured debenture to GCM Mining Corp. (GCM:TSX) due 18 months from closing of the transaction.
Aris Gold is a mining company headquartered in Vancouver, B.C. In addition to its new JV at Soto Norte, the company operates the Marmato mine in Colombia and the advanced exploration stage Juby gold project located within the Abitibi Greenstone Belt in Ontario, Canada.
Aris Gold started the day with a market cap of around $206.7 million with approximately 137.8 million shares outstanding. ALLXF shares opened 23% higher today at $1.4698 (+$0.2781, +23.34%) over Friday’s $1.1917 closing price. The stock has traded today between $1.446 and $1.732 per share and closed for trading at $1.5479 (+$0.3572, +30.00%).
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( Companies Mentioned: ARIS:TSX; ALLXF:OTCQX,
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