Post by
Joachim530 on Apr 24, 2021 5:24pm
WSJ article "TORONTO—Investors are pouring money into car co
From the jrv board: WSJ article "TORONTOInvestors are pouring money into car companies, battery makers and clean-tech startups that are poised to benefit from the global economys shift to electric power. But many small mining companies that supply the raw materials havent been invited to the party. Uncertainty over the metals quality, the short- and long-term outlook for prices and the ability of North American miners to compete with their Chinese counterparts is making investors wary. Bryce Crocker, the chief executive officer of Jervois Mining Ltd., is touting a cobalt project in Idaho. The Australian executive needs $100 million to open a mine on central Idahos Gant Mountain that the company says could eventually produce more than 15% of the cobalt consumed annually in the U.S. The blue-gray mineral is critical to making the batteries that power electric vehicles, laptops and smartphones as well as the alloys used to make jet-fighter engines. After more than a year of fundraising, he is still seeking contributions from commercial banks, private-equity firms and hedge funds. We need the support of the capital markets, he said. But this is not a commodity that lenders have traditionally loaned against. In theory, there has never been a better time to mine for cobalt and other battery minerals such as lithium in North America. Demand is surging as the global economy shifts to electric power. The U.S. and Canadian governments are concerned about Chinas dominance over the market and have begun to funnel money to ore refiners and battery makers because they want to counterbalance their Asian rival. Still, many of the small North American miners that could be the first link in the supply chains leading to the production of the batteries that power Tesla Model 3 electric sedans and the iPhone are finding it difficult to raise money, said Egizio Bianchini, head of the metals and mining group at investment bank Stifel GMP. Mining investors have been slow to buy in to the growing interest in electrification and the surging use of technologies that depend on the minerals because it can take too long for the mines to produce returns. Many mining projects can take 10 years from discovery to producing revenue, he said. That is leaving early-stage projects scrambling. In our market system, theres a mismatch between timing and expectations, said Mr. Bianchini. Its hard to expedite digging. ... Jervois has been in discussions with the federal government, said Mr. Crocker, but has so far been unable to find a funding mechanism that would give his company the funds it needs. Recent decisions by President Bidens administration to revive a dormant $40-billion loan program for clean-energy projects and its push for infrastructure spending could help miners get funding, said Mitchell Smith, CEO of Global Energy Metals Corp. The Vancouver-based company owns copper, nickel and cobalt projects in Canada, Australia, Norway and the U.S. Given the context of whats happening now, youd think there would be a flood into these projects, said Mr. Smith Its more of a trickle.
Comment by
AbuBaba on Apr 24, 2021 5:47pm
Maybe Goad could release some actual news to tap into the currents....