AVZ Discussion 2022

BEISHA

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Yanks are a bit alarmed they won't have enough of the good stuff. :oops:

As EV demand rises, Biden officials warm to new mines

U.S. regulators are warming to approving new domestic sources of electric vehicle battery metals, as Washington bids to avoid a reliance on strategic minerals imports similar to that on crude oil.
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U.S. Energy Secretary Jennifer Granholm and other officials speaking at this week’s CERAWeek energy conference in Houston said the need to domestically produce more metals is rising as EVs go mainstream, but that new mines must not harm the environment.

Granholm told conference attendees she would work to streamline permitting for new sources of EV minerals, eliciting loud applause.

“It takes forever to get a new permit. How crazy is that?” said Granholm.

Granholm’s department has already received applications for $2 billion in loans to fund U.S. strategic minerals projects from Lithium Americas Corp, ioneer, Piedmont Lithium Inc and others.

The department is also proactively contacting junior miners to discuss potential loans.

“The goal here is to make sure that people know that it’s not a lack of capital that’s holding back the development of these assets in the United States,” said Jigar Shah, head of the Energy Department’s Loan Programs Office. “

While the loan office is reviewing loan applications from some lithium projects that have faced opposition, funds will not be distributed to proposed mines that have not passed full regulatory review.

“We know that there will be some domestic mining,” U.S. Environmental Protection Agency Michael Regan said on the sidelines of the conference.

“But it can’t take place in the ways that it has in the past, which skirted some of the environmental laws and disproportionately impact communities of color and tribal communities.”


To be sure, President Joe Biden’s administration is not moving carte blanche to approve all mines.

Last month, for instance, it effectively killed Antofagasta Plc’s Twin Metals copper project in Minnesota due to concerns the mine would harm an important watershed.

But mining executives said comments from Regan, Granholm and others show the White House is beginning to view mining with a more-nuanced lens and understand its role in a clean energy transition.

www.mining.com/category/battery-metals/

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*To add and remind,

Supply shortage


Global demand for lithium, as well as prices for the metal used in lithium-ion batteries for electric vehicles (EVs) continues to grow.

The EV industry will dominate demand for lithium in the coming years, accounting for almost three quarters of the battery metal’s consumption by 2030, up from 41% in 2020.

Chile, which has one of the world’s largest lithium reserves and hosts the two biggest producers, sees lithium hydroxide taking the lead with about 56% of the total consumption versus 44% for carbonate by the end of the decade. This switch can be mainly explained by manufacturers’ growing preference for nickel-intensive cathodes, which tend to favour the use of hydroxide over carbonate, Chilean copper agency Cochilco said in a January report.

Demand associated with cell phones, computers and tablets and other consumer goods would reach 411,000 tonnes in 2030, compared with the 79,000 tonnes expected for this year.

The world’s second largest miner, Rio Tinto, which saw its lithium plans in Serbia crushed this year, sees EV sales accounting for up to 55% of the world’s total light vehicles sales as early as 2030, with about 65 million units.

This means manufacturers would need about three million tonnes of lithium, compared with the roughly 350,000 tonnes they consume today.

Existing operations and projects combined, however, are slated to contribute one million tonnes of lithium, Rio Tinto has warned.

A recent report by the International Energy Agency recommended governments start stockpiling battery metals, noting that lithium demand could increase 40-fold over the next 20 years.

IEA executive director Fatih Birol said this would become an “energy security” issue.


China dominates lithium processing, while mine supply largely comes from Chile and Australia.

www.mining.com/category/battery-metals/


*So who ya gonna call when your backs against the "Great EV Wall" Joe, C'mon, you know you want it / need it, now call your DRC Bro :love:

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I aint going to lie, i had hoped AVZ would get an offtake from the US and Europe to keep the chinese honest......:devilish:
 
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Mickyb64

Regular
The Lithium isn't worth a cent while it's still in the ground. The DRC government need to wake up, bounce the ball and get this monster moving
 
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Dazmac66

Regular
Below are screenshots from a Simply Wall Street report that was in my inbox this morning. $4.05 faaark!
Link to report

 

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Mickyb64

Regular
On Channel Nine this morning.

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JAG

Top 20
Is today the day......the rebalance....Felix and Nige together.........:cool::cool: could we see that elusive ML next week :unsure:

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:cool::cool:
 
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Misfits

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Winenut

GO AVZ!!!!
Selling pressure absolutely relentless this morning...PITA!
 
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Bray

Regular
Could today be the last day of fuckery for the big dogs? who knows.
All i know is AVZ is testing everyones patience.

On a side note.. IXR doing well today making up for AVZs lack of progress

Have a good friday everyone! ;)
 
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Winenut

GO AVZ!!!!
Interesting it was pushed down in the first hour to 82.5 and has now rebounded back to 87.5 in what seems like 10 mins

Does my head in

Nice and sunny here, not much wind.....think I'll go fishing and come back to watch the closing auction!
 
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JAG

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Winenut

GO AVZ!!!!
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Winenut

GO AVZ!!!!
Could the funds be trying to quietly sneak a few in before the closing auction???
 
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Winenut

GO AVZ!!!!
Actually bit of a question.

Do the index funds have to "wait" for the closing auction to purchase their required shares?

Or can they purchase the required shares anytime "prior" to the closing auction

My understanding is they have to closely track the index performance so does that compel them to only buy in the auction to mitigate risk of not tracking close enough???

Maybe I should DMOR instead of being lazy.... :rolleyes:

I think old Donegaldemon knows a bit but not sure he's got eyes on this forum
 
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JAG

Top 20
Actually bit of a question.

Do the index funds have to "wait" for the closing auction to purchase their required shares?

Or can they purchase the required shares anytime "prior" to the closing auction

My understanding is they have to closely track the index performance so does that compel them to only buy in the auction to mitigate risk of not tracking close enough???

Maybe I should DMOR instead of being lazy.... :rolleyes:

I think old Donegaldemon knows a bit but not sure he's got eyes on this forum
I thought you were goin fishin ;)
Homer Simpson Fox GIF by AniDom
 
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Winenut

GO AVZ!!!!
Man I think the 90c line just got SMASHED!
 
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Winenut

GO AVZ!!!!
I thought you were goin fishin ;)
Homer Simpson Fox GIF by AniDom
I was....but the bloody wind came up!

I'm a fair weather on the fishing side

Hate the wind :p
 
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Mickyb64

Regular
Actually bit of a question.

Do the index funds have to "wait" for the closing auction to purchase their required shares?

Or can they purchase the required shares anytime "prior" to the closing auction

My understanding is they have to closely track the index performance so does that compel them to only buy in the auction to mitigate risk of not tracking close enough???

Maybe I should DMOR instead of being lazy.... :rolleyes:

I think old Donegaldemon knows a bit but not sure he's got eyes on this forum
Hi Nut,

This was Donegaldemon's anwser to a similiar question on HC..

The Index does not do anything, it is simply a representation of performance / return of certain assets. The funds or money under management or ETF's that track these indices are mandated to track this index without any slippage. When a stock is included in a index on a certain date like today's case for AVZ, any funds,ETF's who track the ASX200 &300 have to buy on the closing print today because as of monday AVZ is now part of this index. If they miss buying today on the closing print price and to give an example AVZ goes up 100% on Monday and AVZ's weight in the asx 200 index was 5%, the funds /ETF's would have underperformed asx 200 by 5%. This is not acceptable for passive tracking funds or ETF's.

Hope this helps explain ,,
 
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Back up to the early 90’s.

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JAG

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Winenut

GO AVZ!!!!
Hi Nut,

This was Donegaldemon's anwser to a similiar question on HC..

The Index does not do anything, it is simply a representation of performance / return of certain assets. The funds or money under management or ETF's that track these indices are mandated to track this index without any slippage. When a stock is included in a index on a certain date like today's case for AVZ, any funds,ETF's who track the ASX200 &300 have to buy on the closing print today because as of monday AVZ is now part of this index. If they miss buying today on the closing print price and to give an example AVZ goes up 100% on Monday and AVZ's weight in the asx 200 index was 5%, the funds /ETF's would have underperformed asx 200 by 5%. This is not acceptable for passive tracking funds or ETF's.

Hope this helps explain ,,
Thanks Micky

Appreciate that

Yes ol Donegal indicates they "have" to buy on the closing print (I assume auction)

I'll do a bit more digging as well to double check exactly what they (the index funds) can and can't do and when in relation to the rebalance

All good learning!

Cheers
 
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