Suncor Energy Inc T.SU

Maybe SU Should Buy NICKEL, COBALT & LITHIUM Mines

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- worth LOOKING into on NEW UNDER-CAPITALIZED development projects in MINER-FRIENDLY JURISDICTIONS

- sure, there will be COMPETITION with the mining giants but Suncor Energy has ENORMOUS CAPITAL DEPTH and they could EASILY HIRE TOP OF THE LINE SKILLED mining executives

- at the very least, they should SCOUT for some GREAT OPPORTUNITIES and TEST RUN/SIMULATE the GAMEPLAN to see IF THE REWARDS  OUTWEIGH THE RISKS

- behold:

Stellantis inks battery metals offtake deal with Australia’s Kuniko

Reuters | July 2, 2023 | 5:37 pm
Battery Metals Australia Europe 

 

Mirafiori plant entrance in Turin with the Stellantis logo. Stock image.

Australia’s Kuniko said on Monday it had signed an offtake and equity investment agreement with Franco-Italian automaker Stellantis.

Stellantis has agreed to invest 5 million euros ($5.45 million) in the battery metals miner in return for a near 20% stake.

The carmaker will also get 35% of future production of nickel sulphate and cobalt sulphate from Kuniko’s Norway exploration projects for nine years, Kuniko said in a statement.

($1 = 0.9168 euros)

(By Rishav Chatterjee; Editing by Rashmi Aich)

https://www.mining.com/web/stellantis-inks-battery-metals-offtake-deal-with-australias-kuniko/

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- RETURNING 100% of the SURPLUS CAPITAL to shareholders is a POOR business model for a PROFICIENT industrial operator and financial POWERHOUSE like Suncor Energy - they have to think like the GLORY DAYS of the CP CONGLOMERATE and FINANCE world class GROWTH VECTORS to BALANCE their business cycles - GREEDY financial ENGINEERING DESTROYED the RESILIENT conglomerate business model - HYDROGEN

[matt2018]

The main reason they broke up those conglomerates was that they consistantly traded at a discount to their NAV.  Stick to what you know.  The Irving refinery is up for sale.  This thing is a monster at 320k bbl/day.  Don't know asking price but I hear $2B valuation.  Package in the 900 Irving gas stations (eastern Canada & New England) and convert them to PC brand.

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- yes, I agree with you that Irving Oil is an EXCELLENT MATCH for Suncor Energy - unfortunately, the TIMING is all WRONG - SU needs to keep their CAPITAL to buyout the PRIORITY Fort Hills ownership interest held by TotalEnergies  - Suncor is already a MAJOR MINING OPERATOR in that it mines BITUMEN so owning and operating nickel, cobalt and lithium mines is NOT THAT MUCH OF A STRETCH

[matt2018]

You never have enough refining capacity ztransforms.  $2B is not that big a number for SU, if that is accurate (in line with metrics CVE just paid for rest of 50% Ohio refinery).  There will not be any new ones built again., ever.  Not only too costly to build out, you won't get regulatory permits. Payback/ROI would be fairly quick & lucrative to FCF.  Cdn refinery

[mrbb]

My opinion is that CEO Randy Eresman took up banker's advice to split up Encana into 2 companies, a gas and oil unit, so some major from the US would buy out the NG portion of Encana.  The idea of sum of the part is greater than the whole was in vogue back then.  Eresman even resigned just to make the encana look more attractive to US majors. Guess no one took the bait