FormerXBC Inc XEBEQ

Alternate renewable plays? Ones that have barely started?

[tamaracktop]

Catchascatchcan wrote:

"There is a bottomless pit of money that is being earmarked for the electric and enviro push over the next many years, and while these stocks have all suffered of late to varying degrees, many should succeed long term." 

   Someone here recently posted about 10-baggers.
   The push towards renewables is going to last for years, as catchascatchcan points out. There has been lots of press recently related to Covid-induced supply shortages resulting in higher commodity prices, lumber being the primary example.
   Sawmills don't have to plant a tree and wait till it grows to harvest lumber. Lumber prices will correct soon enough.
    The push towards renewables cannot happen without vastly increased supplies of copper. The push towards carbon neutrality simply can't happen without copper. I pointed out here recently that recycled copper can't be used for wiring. I pointed out months ago that junior copper plays are a leveraged, back-door way to play the massive secular growth in renewables that lies ahead.
   Copper hit all-time highs a week ago. All-time highs.
   Copper is up 99.5% in the last 52 weeks. Gold is up 4.87% over the same period by comparison.
    Unlike lumber, there is a considerable lag time before new copper can be mined. An untouched yet proven deposit remains very attractive to majors at these copper prices, and once it is clear that higher prices are here to stay, there will be a feeding frenzy of buyouts of attractive juniors with good deposits but inadequate funds to bring them to production. This buyout craze absolutely will happen. Personally, I see it as inevitable.
   The first acquisition will open the floodgates. It will be like a game of musical chairs where the majors won't want to be left with a safety net  of additional mineable reserves in their back pockets when the music stops.
    The time it takes to build a mine is considerable, with costs running around $7-$8 hundred million on average.
    Even if fast-tracked, any new mine will take at least 6 years to put into production. Imagine this hypothetical timeline:

Drilling to measure gold/silver, oxide, move inferred to indicated, and provide geotechnical rock data.....6-9 months

Feasibility...6 months (includes many studies needed for permitting)

Base studies and permit application studies...12-18 months

Permitting 12-24 months

Mine build  18-24 months
 

    I realize I'm off topic here and my apologies for that, but I know that everyone here is interested in renewables and I'm as certain of this scenario today as I was certain that Xebec was a good buy at 40 cents 3 1/2 years ago.
   Look for juniors with good deposits in safe jurisdictions.
   Certainly, they will be highly speculative stocks, but if you do your homework and choose carefully, the rewards will be enormous.