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In 2016, I started telling people to be excited about Nickel stocks.  First of all, they should start looking at the best Nickel stocks that are unloved now and awaiting a Happy Ending.   The LME (London Metals Exchange) started to show a decreasing warehouse stock level.  Also, the nickel price looked like it was bottoming out.  Most noteworthy, it gave me the impression that the declining curve had taken a slight deviation.  Consequently, the interest for Nickel is now a matter of history thanks to the Cobalt bull run.  In addition, the word was out that the Li-Battery needed more nickel than cobalt …etc  Oh yes,  and suddenly every nickel projects became Ni-Co projects… 🙂 My Thoughts However, my optimism is more related to the whole base metal market rather than just Nickel.  In my opinion, we have just come off one of the worst commodity crises.  So I felt with that prolonged downturn, it cleared out a lot of underperformance.  This normally meant that productivity will slowly set in for the long run.  Certainly a shallower but definitely longer wavelength of growth. Industry people tell me that there is currently about 25 weeks of surplus on the LME.  The stockpile, and according to the industry,  needs to come down to within 10 weeks and that will start to move the price. In regards to the supply issue, the general consensus from industry people is that the supply crunch will come in 2 years time.  This is the kind of timeline that the current producers and near-producers are aiming for their projects to be at maturity.  Companies such as Panoramic Resources Limited are now restarting their  Savannah Underground Nickel Mine in the East Kimberley, Western Australia. So I am guessing that the journey has begun. It is because of this factor that I like some of the lower ranks… The unloved or unknown stocks.  So I came up with the 4 Best that I like. I was going to do 5, but I got lazy… 🙂 Panoramic Resources is a company that I tag as a Valued proposition.  They are miners.  There are the Western Metals, Mincor, Norlisk, BHP, Eramet…. etc. These companies are not what I think are the unloved/unknown stocks.  I am not saying that they are of no good, in fact, I think they are very worth looking at as when things kick on, they are going to be money earners for everyone. I just bought some Western Metals… hopefully, that is a good move :-). No.1 – Legend Mining Limited (ASX: LEG) Legend Mining has come on the scene with the Rockford project, located in the Fraser Range province of Western Australia.  The project is a joint venture between Legend (70%) and Creasy Group (30%) with Legend being the operator.  The concept is to find a Nova-Bollinger style nickel-copper and Tropicana gold mineralisation. The project is has a large tenure. In fact, a total of 12 contiguous Exploration Licences covering 2,792km2.  It is 120km northeast of the Nova-Bollinger nickel-copper deposit, owned by Independence Group NL . As you can see in the diagram below, it lies along the strike of the large Gravity anomaly that house the Nova-Bollinger nickel-copper deposit. Nickel exploration is not easy and finding that Ni-S body is a lot harder than your typical gold deposit.  As a geologist who has limited nickel exploration, I have been told by good authority that finding a Ni-S body is very hard.  However, with the new technological advances in geophysical tools, it is easier now than before. As I am told. The diagram below illustrates why this is a good story.  As you can see, there is good sized mineralisation grade complimenting a decent length of mineralisation.  Always good to see some meterage in your intercepts.  There is no doubt that this is a greenfield project but so was the Nova-Bollinger mine and DeGrussa.  In fact, so was many other projects. The exploration that has been done by Legend is proving that this is a relatively safe bet. Price Chart The price chart activity is certainly more active within the last 12 months. It’s obvious that the activities are clearly related to to the Rockford project.  A joint venture into one of Mark Creasy’s projects seems to be the flavour of the month.  Since cashing out from the Novo-Bollinger project (Sirus Resources LImited), Mr Creasy has had a few more wins so I will envisage that LEG will certainly be on many watch screens in the investing sector. The only disadvantage  I see is the Market Cap of AUD80M.  It is pretty high for an explorer. The most important concept to remember is that Mark Creasy has a 30% stake in the project and a 28% stake in Legend Mining Limited.  This is a Mark Creasy company and if they get a sniff of success, there will be no issue finding new money to continue. No. 2 –  Rox Resources Limited (ASX: RXL) Rox Resources Limited (RXL) is a very interesting company. AUD15M cash EV of 3M Market Cap of 15M. East Fisher Nickel Project – Mineral Resource of 2Mt @2.5% Ni for 50,600 tonnes contained nickel. Mt Fisher Gold Project – Mineral Resource of 973,000T @ 2.75 g/t for 86,000 oz contained gold. (To be divested into another new IPO in 2018/2019). Collurabie Nickel Project – Inferred Resource of 573,000T @ 1.63% Ni, 1.19% Cu, 0.082% Co, 0.85 g/t Pt, 1.49% g/t Palladium. The East Fisher project was discovered in 2012.  In fact, I reviewed the project and wanted to put in a bid to buy it for my previous life.  Originally, this is a gold project and I felt that there were limits to the project.  I still think that is the case.  The location is pretty remote and you would need to find a lot more to make the gold work.  What I did not expect was the discovery of the nickel in the project.  This I feel will make a difference.  The discovery of the nickel is a game changer for RXL and I hope they can make this work.  In addition, with the addition of Collurabie Nickel Project, this company could provide a few surprises. I am surprised that with the discovery, things have not really happened for RXL in the share price department.  I was a shareholder a few years ago and sold out making some coin but it seemd to have stayed pretty much stagnant since that time. The photos above are some samples from East Fisher. I spoke to Ian Mulholland about the prospectivity and he explained that the ore bodies are still open and there many upsides to the story.  The good part of these deposits is that they are shallow and within 70km from the nearest mill. Collurabie is further east but when you look at the final picture, I think this is a workable project.  There are definitely some negatives, but they have the money to do the work required. The mineralisation from a geologist point of view is interesting. For me, at this stage, I am enjoying the whole geological story.  I wished I was this studious when I was doing the geological degree. Price Chart If the nickel price does head north, this will give RXL a lot of room to move.  However, the 5-year chart below shows that there is a disparity between what the potential of the company and what the market values it. This is one of those issues when a company has legacy issues and the market just does not like you. Looking at the stock, there are about 1.3B shares and that does scare some real investors away.  The stock has traded in a downward trend for too many years for a company with AUD15M in the bank.  Just does not make sense. I think they need some chinamen in there to stir the pot… 🙂  Only a chinaman can make leftovers a staple dish… Fried Rice… Long soup…Short soup… No. 3 – Talisman Mining Limited (ASX: TLM) Talisman Mining Limited (TLM) is another company that I feel is worth a good read.  They had the tenement adjacent to Sansdfire Resources Limited and when they announced the discovery of the DeGrussa deposit , and TLM share price went flying.  The management comes from good history, ex Jubilee Mines NL. If I am correct, Jubilee Mines sparked off the last run of nickel discovery in the early 2000s. The industry was having a hangover from the 1999 disaster, and the discovery of nickel was sparking the workflow. After the discovery of DeGrussa, TLM worked on their Springfield project (the one adjacent to DeGrussa) and discovered the Monty Copper Mine.  As I write, they have recently announced that they have sold that project for $AUD70M + to Sandfire with extras. So for a small company, that is a good result.  As you can see in the price chart below, it is not a bad investment/punt for the investor. The discovery of Monty would make a good read too. Maybe I will see if I can do something about that in the future. The Sinclair Nickel Project This is located in the famous Agnew-Wiluna Greenstone belt.  Probably the best known world-class district for Ni mineralisation.  It is a historic mine. It has produced 1.58Mt @2.44% nickel for 38,599t of nickel from 2008 to 2013.  The site has all the infrastructure for a working mine and has been under care and maintenance since the downturn of the nickel price. I am no expert in Nickel but my understanding is that as these lodes are very small but have high grades, so the chances of finding more are very high.  Look at the Kambalda nickel mines.  They have been producing for decades. Assuming that the management is not planning to mine the market and are really making an effort to make this work, I would bet money on finding more workable lodes of nickel sulphides. What I do know about nickel sulphides is that they are damn hard to find.  As a result, when you do find them, they tend to be something that can work.  Consequently, from an exploration point of view, I would say that I will rather be exploring at a place where there is much smoke and have been known to be flammable.  Furthermore, always remember that they are in a well know nickel province. I know I sound like I am repeating myself,  the reason I like Talisman very much now is that they are going to have a heap of cash and they have good ground to drill. To top it all off, there is a great chance that the nickel price will go up. Looks like a good combination to me. From the last published presentation, I like the look of their interpretation,  strike extension and the grades look very consistent. No. 4 – Poseidon Nickel Limited (ASX: POS) Poseidon Nickel is something of an oddball.  I actually know very little but the latest corporate moves make me think that I am missing something.  I know what they have technically.  How anyone would want to pump lots of money into the company makes me think that there is something that I have not understood.  Most importantly, I know that they a very high-grade Nickel mine, Silver Swan which is within the Black Swan Project. Price Chart Looking at the price chart, there is nothing there that will excite most people.  For instance, the lack of spikes and I mean noticeable spikes is boring.  However, I do know that there are a lot of big wigs in this stock. So if there are corporate moves, one must take note and start asking questions.  The latest manoeuvring corporately makes me more than interested. Black Swan The project is 600km east of Perth and 50km northeast of Kalgoorlie, Western Australia.  There are three components to the project, Black Swan open pit Silver Swan underground mine. Black Swan sulphide concentrator (2.15Mtpa) and supporting infrastructure. The Black Swan deposit contains serpentine ore (0.74% Ni) and talc carbonate ore (0.72%). The Silver Swan underground mine contains 147,000T @ 11.48% Ni for 17,000T  contained Ni What’s Happening with the Project First of all, as I have mentioned, there was a flurry of activities the last few months culminating in the latest scenario. There had been many talks in the street that something was happening and as a result, I have sort of kept abreast on the goings of POS.  Not diligently but it was in mind.  The result was the resulting capital raising that made headlines .  The latest fundraising is apparently going into the restart of  Silver Swan and Black Swan.  There are also talks about exploration drilling in several of their prospects.  The good news is that I am bullish on the nickel price.  Companies like POS will be in the box seat with a rising Nickel price. They have the infrastructure and the mines.  Their pricing is unloved and this is why they are on my list of things to watch. They have a Market Cap of AUD100M and I guess for a miner, that is not too high. Share price sucks but if they can make Silver Swan work again, then things may change. Finally, I  recently saw an article by   SmallCaps , regarding the exploration of the Abi Rose high-grade nickel discovery  that made a good read. Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. www.samso.com.au If you find this article informative and useful, please help me share the information.  I try and write about topics that are interesting and have the potential to be of investment value.  It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au . About Samso

I came across Pointerra Limited (ASX:3DP) in late 2015 when the company was trying to list on the ASX through an RTO (Reverse Takeover). The business is a platform that stores and allow utilisation of 3D data over the internet. The platform also allows 3D data visualisation for users.  In my opinion, it is the only and best 3D company on the ASX. To simplify the story, currently, there is no easy way to handle 3D data due to the large file sizes. The complexity of 3D data has always been an issue for users wanting a cloud experience. Pointerra’s technology allows users to use their real-time dynamic web viewing tools for simple access to their data from any device in any location. Users retain control over their data with the ability to make it public or to monetise for themselves through Pointerra’s secure transaction system. How Does the Business work? It’s quite simple.  The business deals with 3D data instead of the flatter 2D format structure.  In another past life, I was heavily involved in asset management for most of the major local governments in Perth, Western Australia.  So I am very comfortable with what the company is trying to achieve.  In those days, early 2000, the applications for 3D data today was virtually non-existent, and if it were, it was definitely in its infancy stage. Today we have AR (Augmented Reality) and AI (Artifical Intelligence), and companies such as Google now want to use 3D data to complement the Google map experience.  Have a look at the news on Google Earth .  There are companies all over the place now that deal only in 3D data.  It is no longer something that is a futuristic application. If you look at the businesses such as Tensor Flight , you cannot help but think that the 3D data world is only just starting. When you have 3D data to millimetre precision, you can do a lot with the information.  You are talking about survey quality datasets.  As a geologist, when we were using handheld GPS in the field, we were looking at 1-2m errors.  These days, the handhelds are doing centimetres to millimetres, depending on coverage and allowing for correction.  What this means for the geologist is that we do not need to send surveyors out into the field and hence saving money. In the world of engineering, it started with manual labour using laser scanners to capture the 3D information.  Now we have drones and Google.  Companies such as Rio Tinto now consistently updates their 3D data for its internal uses.  When Google collects data for its purposes such as Google maps, they collect 3D datasets as well. The 3D datasets were not well used because no technology was able to handle the logistics.  This missing technology is where Pointerra comes into the picture. When you look at Figure 1, it is a very simple Business Model.  Data is captured or given, uploaded into the system (cloud-based), and you use it.  The user has the choice of using the dataset for its use and also the option to sell that dataset to its customers. How Does it Work, Who uses 3D data? Everyone.  That may seem unlikely to the everyday person, but I keep coming back to this digital world.  What people need to understand is that when they look with their eyes, they see everything in 3D.  That is how our brain works instinctively. When we look at a 2D map, we have to make an effort to process what we see which means that it is easier for a human to interpret 3D view than that of a 2D format. Hence, the digital life that we are going to live in will need 3D data.  Whatever we use to view it will need to be allowed to process and visualise this information smoothly and seamlessly.  The system will need to be able to be used anywhere and on mobile devices. Therefore, if you understand the uses of high-resolution aerial photography and tools such as google maps, you will be excited about the endless possibilities of 3D information.  There are two main parts to this understanding, Storage The user’s visualisation of the data. The capturing of the data is the simple part. Business Model In Figure 2, you can see that entire business and potential income streams for the company.  Just so that I put the potential into context, construction of a building, or a refinery or a bridge will be so much easier to visualise in 3D.  Like when high-resolution photography came into play, it was terrific. For example, when I was using the high-resolution photography for collecting information for asset management. I could see the paving tiles enough to measure it. When you use 3D data, it is not just the visualisation; it’s the ability to calculate things on an engineering accuracy scale. Pointerra claims that they can provide users with the ability to do all these things.  Think of the utility companies and the miners such as Rio Tinto and BHPs of this world doing the uncrewed dump trucks and trains.  They would need to know in 3D, every millimetre of any scenario of their working environment. What is the Technology? I will declare at the outset that the detailed understand of the technology to me is unfortunately not my strength. What I do know is that there seem to be a lot of people out there that understand it and are making enterprise agreements with the company.  Autodesk is one of them and that, to me, speaks volume in this part of the industry.  A giant like Autodesk is a fantastic endorsement.  Pointerra’s patent-pending technology is best summarised in Figure 3, outlining the multiple facets of how things work. What’s the Attraction? If you believe the sales pitch that Pointerra is telling the investor world that there are no competitors out in the marketplace, you will start to see the myriad of income streams (Figure 4). As we continue to live in a world of AR and AI, you can imagine that the use of 3D applications will have no end.  With the onset of 5G, the use of large data format will become more accessible and more widespread.  For example, take the virtual shopping of Alibaba, the use of AR to showcase engineering products such as shipbuilding, large infrastructure projects such as railways, construction of power grids, the study of sun shadows for large urban developments… etc. All of these will require the precision survey and the use of 3D data in applications will be the norm rather than the exception. It is a bit bewildering to think that there is an endless use for 3D data.  From a geographical, technical background, I understand that the use of mapping is critical in everyday use.  The commercial world needs to understand maps to make money. Think about how Uber is to survive if they don’t have a master on maps.  How would companies such as Westfields decide where to put their shopping centre and what content will they need in those centres without maps to tell them population densities, spending habits, age distributions etc. In the City of South Perth, they are running a driverless bus.  You would wonder how does that bus know where to go, how to go…etc without the third dimension information.  In my opinion, the use of 3D data is now just being  accessed by users. Figure 5 below gives a general understanding of some near-term application for the products that Pointerra can provide at the moment. The People I remember when I was at the launch of the RTO, I was listening to the presentation and I was immediately impressed with the fact that the core people are all in the industry. If you look at the team behind the company, they are the people who helped Rio Tinto build the technology to be able to drive a dump truck remotely.  They were involved in the technology to capture and apply 3D data in pit surveys.  Just remember that to have a truck drive uncrewed, you need exact data.  Now if you are a company that lives in this world, you want your team to be vested in the business.  The founders of the company are part of the main shareholding. To me, this is critical.  If you have the best technology and the people working it has no interest in the well-being of the company, you will have a problem. What is in it for the Investor? The investor is only really interested in the capital growth of the company.  The capital growth of the share price is the only requirement for all things commercial, $$$. As of the 28th September 2018, the share price of the company is not too far from my exit in the stock 18 months ago.  It went for a rally in late 2017 on the back of the announcement of the Autodesk relationship, but it has since dived (Figure 6).  However, I believe that the new reports on the new income stream have put the company on a good momentum upwards. I re-entered the stock late 2017 after the announcement of Autodesk as I felt this was a journey in the right direction.  Unfortunately, the decline has meant that I have been averaging down :-).  I will say that this is a stock that, fortunately, or unfortunately (time will tell), I believe the darn story.  Having been in the mapping industry for the last 25years + as a geologist and a local government consultant in asset management, I can see the potential of the business.  I was a big user of GIS (Geographical Information Systems), so I appreciate digital maps and the wonder of seeing things in 3 dimensions. Peer Comparisons At these prices, the Market Cap of the company is around the AUD20M mark.  If you look at the closest comparison on the market, Nearmap , you have to wonder if there is a lot more growth.  The last time I looked at the Market Cap of Nearmap, it was almost 800M.  It may be of interest to people that Robert Newman, who is the Managing Director and CEO of Nearmaps, is also a Non-Executive Director of Pointerra.  If you want a vote of confidence on the business, that has got to be one.  Remember that Nearmaps was once at these early stages. When I look at Nearmaps and what they are doing, I cannot help myself to think that the flat structure (2D data) cannot compare with what Pointerra is offering. The difference is market awareness and proof of concept.  Nearmap has a great product, and they are doing well, and I think the high-resolution game has a market. Pointerra will be valued at those levels when the proof of commercialisation begins to filter in from the marketplace.  The last few announcements are already giving some signs, so fingers crossed. Another thing, I don’t think Nearmap has made any money yet, and they have a Market Cap of 800M.  Think about that concept.  A few months ago, Nearmap raised AUD$70M at AUD$1.70. My Concerns The company does not get this message out to the commercial world. They run out of money before delivering the message.  A capital raise at these prices again would not be good for the existing shareholding. With such a great story, why are there not more buying into the stock? In their latest Annual Reports, a few Non-Executive Directors are being paid a decent salary- from a chainaman standard; the amount is decent  :-).From experience, many NEDs don’t do anything and are handsomely paid that would add to the cost of doing business.  However, if they are doing things, then that is a different story. Conclusion Pointerra, in my opinion, is going to be a great story. The technology is fantastic and assuming that they can fend off any competition, this will be a tremendous journey. Think about what it means to be able to have precision 3D data that is available to everyone. If you appreciate the use of 2D maps such as those that are being used in Google Maps and used by Nearmaps, what could the possibilities be with one extra dimension? I hope you appreciate my thoughts and enjoy the read. Samso Declaration I am currently a shareholder of Pointerra (ASX:3DP) The purpose of this piece of writing is not to sell Pointerra shares. I have not been paid by anyone to write this article. It is also not to convince the reader to buy the shares. I just thought it is an excellent story to share. Samso is all about sharing thoughts and ideas. NOTE:  The information contained in this article is general information only. Any advice is just general advice. Neither your objectives, financial situation or needs are taken into consideration. You should consider how appropriate the information (if any) is to those objectives, financial condition and requirements, before acting on the advice. Conflict of Interest Notice SamsoPty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios. Any choice to purchase this stock should be made so after the purchaser has made their inquiries as to the validity of any information in this article. Publishers Notice The information contained in this article is current at the finalised date. The information provided in this article is based on sources reasonably considered to be reliable by Samso Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by Samso Pty Ltd. Also Check For:- Possibly the Best Copper Stock on the ASX : Castillo Copper (ASX:CCZ) Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. www.samso.com.au If you find this article informative and useful, please help me share the information.  I try and write about topics that are interesting and have the potential to be of investment value.  It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au . About Samso

Recently, I have been looking at renewable energy  applications, especially solar energy.  I wondered what is the cost of applying solutions such as those large solar power farms ? Does it affect the environment, does it alter the climate? I know it sounds strange but like all physical matters, there is always a cost of doing business. Solar energy which is the most common of the renewable space is now the norm when talking about non fossil fuel applications.  Wind power generation is the next biggest and is also very significant part of the renewable space especially in Europe. Has anyone thought about the possibility of all these changes to the natural equilibrium with habitat changes and land uses that may affect the  ecosystem?  Could we alter the climate that we are trying to save? The Renewable Infrastructure. Currently we have the following items that help us become green, Solar – solar farms are today growing rapidly and they are growing larger in size. Some of these farms can power up to 200,000 homes. Wind – Wind farms are now slowlly taking a larger role however, I do think that the visual impact and thier inefficiency may limit their purpose in the future. Hydro – This is old technology and it has a great impact on the environment and society. However, it si better than buring coal, or is it? Wave – A very new technology and the real impact is still unknown. There is a fifth component to that list which I consider is green but the general public would not consider it as a green alternative.  That fifth element is Nuclear.   In 2009,  I found information showing that nuclear power has less carbon impact than any know “green” alternative power generation.  However, at the 2019 International Business Conferrence, I heard a talk mentioned that that is no longer the case.  There is now evedecnce that solar power is getting more efficent and cheaper which is why the use of solar power is growing in popularity. Footprint – Significant or Not ? According to a report entitled “Understanding future emissions from low-carbon power systems by integration of life-cycle assessment and integrated energy modelling” , which I found on www.nature.com ,  the conclusion was that it is not significant unless you talking about Hydro… 🙂 We find that cumulative emissions attributable to upscaling low-carbon power other than hydropower are small compared with direct sectoral fossil fuel emissions and the total carbon budget. Fully considering life-cycle greenhouse gas emissions has only modest effects on the scale and structure of power production in cost-optimal mitigation scenarios. The study took into consideration emmissions including from manufacture, construction and fuel supply.  The study also included nuclear energy.  It is obvious that fossil fuels are the main bad energy source, but comparatively, the use of Hydro and Bioenergy are also considered bad. For a climate protection scenario, we project life-cycle emissions from fossil fuel carbon capture and sequestration plants of 78–110gCO2eq kWh−1, compared with 3.5–12gCO2eq kWh−1 for nuclear, wind and solar power for 2050. Life-cycle emissions from hydropower and bioenergy are substantial (∼ 100 gCO2eq kWh−1), but highly uncertain. What surprised me was the significant differentce between, nuclear,wind and solar and that of hydropower and bioenergy. It one thing to say the economic efficientcy of the different power generation types, but I do think that the impact will be on the footprint. The argument against not having a mine operation becasue it harms the environment when you look at farming is one that I find facinating.  The footprint of a typical mining operation makes is insignificant when compared to farming.  This is the same when you look at solar or wind farms.  The lack of Carbon Debt? When people talk about the carbon debt between types of renewable energy, I think the article above see to be a good answer. However, I do feel that people need to look at the longer term ramification of having these large solar and wind farms.  The visual environmental impact needs to be considered.  Its fine if you have a Sahara desert or a Gobi desert to put these panels.  I would think that the large area that is required for these solar farms will cause damage to flora and fauna. In regards to wind energy, some of the wind turbines are huge.  According to a report by CNBC, GE is building a turbine that is over 260m tall.  It will have a capacity of 12 megawatts and 107m blades.  According to GE, they will spend over USD4ooM developing and building over the next 5 years.  The turbine will produce over 65GWh annually. That will power about 16,000 European households An article in www.sciencing.com published some very interesting facts, For example, environmental reports underestimated the number of desert tortoises that would be displaced by the Ivanpah Solar Generating System in California’s Mojave Desert. The same solar farm also came under scrutiny when an increasing number of bird deaths were reported on its premises. Many of their wings had been melted or burned off by heat from the solar farm’s mirrors. Being a geologist, we are always made to be the anti-environmentalist. When in fact,we are more protective of the environment.  I have always thought that a solar farm is like tree logging, or land farming.  You need to clear lots of land.  We all know that the ecosystem is one that works hand in hand with all species that exist, so if you take one out, you are going to have an issue.  A bit like losing an arm, or a kidney or a liver ?  Sounds all very environmentall difficult but even a geologist thinks there must be an alternative :-). I am not saying that we dont have these alternative energy sources but what I am saying is that maybe having solar farms is very primitive? Should we be looking at better ways to use these solutions. Clean energy changing Climate This leads to the most interesting article I have read which glued together my pontification over this subject.  The fact that a wind or solar farm could actually change the climate. The bad would be what we have just discussed, which is the habitat and wildlife issue.  But there is research going on now that is trying to see if having a solar farm would trigger climate change.  They are trying to discover if solar and wind farms may alter the movement of air to a degree that it could create more moisture and allow vegetation to grow where it was not possible.  The study is made over the Sahara desert. In principle, this area would be ideally placed to house such a project, as it is sparsely populated and well placed to supply the growing energy demands of Europe, Africa and the Middle East. The researchers found that, when installed on a large enough scale, both wind and solar infrastructure would trigger feedback loops that bring more rainfall and promote the growth of vegetation in the desert. In a region that is already feeling the effects of global warming as the Sahara desert creeps further into the fertile lands bordering it , the scientists say the net effect would be surprisingly positive. If readers think that this is something out of Star Trek movie, the attraction of turning the Sahara desert from a non productive patch of dirt into a ocean of solar panels or wind turbines will happen. It is in breed in the human species to be greedy to make that happen.  If that was to happen, the result of more rain, more green will happen. What we dont know is if that is a good thing or a bad thing.  No doubt, the positives is that this ocean of solar and wind energy will create so much cheap and useful power to the region. It will change the whole region to productivity that the world will need to feed ourselves. There is a few articles on the reasons why wind and solar farms can bring significant climates changes to the Sahara desert.  The one that I found had a clear explanation was that in www.theconversation.com . The Future? As technology becomes smarter and cheaper, there are now a series of panels that are made to line buildings in the big cities.  They are classed as smart windows which transfer the sunlight that shines on them to energy.  A company in Australia called ClearVue (ASX:CPV) has come up with a patented advanced glazing technology that sits within an activated interlayer sandwiched between two panes of glass.  This kind of stuff makes good sense and if commercialised, it will be a big money spinner. Through the combination of special compound materials, the interlayer prevents heat and unwanted solar radiation (UV or Infrared) from penetrating the glass pane. This energy is then redirected to the edge of the glass for controlled distribution and harvesting through conventional PV solar cells, whilst allowing the natural visible wavelength light to pass through largely unaltered. — ClearVue Limited (ASX:CPV) There is a video on their website that gives a good explanation of the technology. Another form of smart windows is one that is made of perovskites. Windows with this material allow windows to be clear on cold days but turns them dark in the hot summer sun.  Some groups have mentioned that they can harvest power like solar cells from the windows. Perovskites are materials made of a mix of elements with a particular crystalline structure, and solar cells made from them are nearly as efficient at converting sunlight to electricity as state-of-the-art silicon solar panels: The best ones convert more than 22 of the energy in sunlight to electricity, compared with 25 for silicon. By changing the perovskites’ elemental components, researchers can also control their transparency. What’s more, the starting materials for perovskites are far cheaper than existing solar cells. — www.sciencemag.org Recently, I have also been working on a wave technology concept.  It is still in the early stage of commercialisation testing but I can still see a pretty big footprint too.  It is smaller than the ones I have seen so at least that is working in the right direction.  I have no idea what the solution is but I am sure there are very smart people out there that will have an answer. Conclusion The journey to have a greener energy solution is something that I am in favour.  The reality is that the use fossil fuel will be around for probably two more generations and maybe more.  In my opinion, the uptake of renewable energy will only accelerate if ggovernmentsforce the population to do adopt the changes. For example, in UK and I suppose most of the advanced countries in Europe,  this is very evident and I can see some major changes. However, the point I am trying to highlight is that the human race is damn scared of being extinct.  The rush to be green is really driven by the material greed and not the need to be morally green.  History tells us that humans will eventually make a real mess of it because our so called “greenness” is rushed because we want the green bills.  That's why we continually look back in history and see all the things that we could or should have done better. source: All photos ar sourced from Bing. Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. www.samso.com.au If you find this article informative and useful, please help me share the information.  I try and write about topics that are interesting and have the potential to be of investment value.  It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au . About Samso

A combination of sustained high economic growth, government support and financial incentives for new businesses, particularly in the technology sector, has attracted investors and technopreneurs to Asia and in particular, Southeast Asia (“SEA”). These businesses and start-ups generate demand for office spaces. Unsurprisingly, flexible workspace arrangements are favoured for businesses setting up new office locations in the region, where premier real estates in major cities typically command a high rental. Expanding Potential of Flexible Workspace in Asia The convenience of a fully-furnished flexible workspace leasing option can be a very attractive proposition. This is important in the early days of a business start-up or new regional office. Flexible workspaces allow the option to scale up when required.  This distinguishes themselves from traditional office spaces.  The flexible workspace industry in the Asia Pacific is expanding rapidly compared to the rest of the world. Flexible workspace providers in the SEA region are aggressively opening more sites.  They are leasing larger spaces and expanding their foothold.  From 2014 to 2017, flexible workspace inventory across the region recorded a compound annual growth rate of 35.7% in the Asia Pacific.  This is much higher than in the United States (25.7%) and Europe (21.6%) over the same period. The flexible workspace industry in SEA leased more than 8.0 million square feet in the last two years.  Local flexible workspace providers like JustCo, EV Hive and KMC Solutions accounted for more than half of the space leased by all such operators in 2017. KMC alone has more than 50% market share of the flexible workspace industry in the Philippines.  JustCo’s spaces are occupied by some of the region’s leading start-ups. The photos below are examples of what is available in Singapore, for example –  Office Hub  –  Club Co  –  The Working Capital  –   The Collective Works Increasing Trend with Supply of Flexible Workspace Jones Lang LaSalle (JLL) predicted that “the supply of flexible workspace is expected to grow in 2018 and beyond, thanks in part to the ambitions of major global and regional operators.”  Such findings are in line with Singapore-based flexible workspace operator, JustCo’s recent news, where it announced that it has signed an exclusive joint venture partnership with TICON, one of Thailand’s leading property owners and developers that is majority-owned by Frasers Property. JustCo is on a quest to “become the largest flexible workspace network in Asia by 2020.” The company’s ambitious plan is to open 100 centres over the next 2 years. Challenges of Flexible Workspaces One of the key challenges for operators in the Asia Pacific is that the office stock is controlled by a small number of landlords. For example, in the  United States, commercial holdings are much more dispersed.  In the Asia Pacific markets, a handful of landlords dominate the market.  What this means is that if a single landlord decides not to lease space to a particular operator, the impact to the operator will be significant.  This will leave the operator with very limited options to offer sufficient inventory to potential customers. It also means that property owners and developers have enough leverage to determine the scale of the flexible workspace market. Fortunately for operators in Asia, the flexible workspace is becoming an attractive option to those looking to create active, vibrant spaces where collaboration opportunities among tenants abound. Creating more Supply of  Flexible  Workspaces  Many are considering to develop these facilities on their own or in partnership with another operator” — as with the case between JustCo and TICON.  JustCo’s joint venture partnership with TICON will give it an edge and advantage over the competition. This provides them with the stock and first-mover advantage into an increasingly competitive market.  Yet in order to stay ahead of the game, they will need to move rapidly.  JLL predicts that “join ventures of management contracts between landlords and flexible workspace operators are likely to become more common.” Joint ventures are especially attractive for flexible workspace operators seeking to expand and for investors that are interested in entering the market.  JustCo’s strategic partnership will help the company leverage and tap a wider network of industries such as commercial real estate, retail, hospitality, food & beverage, and industrial customers. More photos of Flexible Workspaces in Singapore – The Hive –  The Great Room Mike Ghasemi is the founder and chief analyst of Mike Ghasemi Research Pte Ltd. He’s a retail and hospitality and travel industry futurist, analyzing trends and the use of emerging technologies to digitally transform organizations. Also Check for:-  Tungsten Power- A New Age Metal and The Next EV Story Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. www.samso.com.au If you find this article informative and useful, please help me share the information.  I try and write about topics that are interesting and have the potential to be of investment value.  It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au . About Samso

Malaysian Artistic Talent with Soul and it’s Not 1MDB. Who would have thought I would say this…  You would not be wrong to feel that Malaysians are now more known for the 1MDB scandal than anything with soulful artistic talents.  My recent trip to Malaysia has surprisingly shown me that there is some real profound talent in the country. Skills that do not only involve gambling or multi-billion dollar scandals. The now famous  quote by the U.S. attorney-general, Jeff Sessions, “Jeff Sessions calls Malaysia’s 1MDB scandal ‘kleptocracy at its worst’ I am Australian with Malaysian heritage or more specifically, an  Australian Sarawakian ( from Sarawak, Malaysia ).  Some call me a Banana, which in some respect may be right.  There is no denying that we expat Malaysians are full of opinions and we all know how things should be done in Malaysia.  However, I have to say; it is very refreshing to finally see and understand the Malaysia that Malaysians love apart from food.  To finally realise what people have described being as the artistic flair of Malaysia. Maybe I am just becoming an old fart now and blossoming in my appreciation of art? Serena Chiam and Michael Teh – Gold Art Distributors My friend Michael Teh ( Aureo Gallery ) invited me to a charity event where a Korean artist, who mix 24-carat gold with oil and glue to create paintings, was displaying his collection for charity.  Michael had shown me this art late last year, and I have admired from afar since.  This time I was in the same room as the artist himself.  The only downside was that I never thought of getting a photo with the man himself… Micheal Teh and I met late last year when I was asked to meet a guy who was selling Gold Art.  We hit it off immediately as we discovered our passion for ASX mineral companies. Since I have been coming to the SE Asian region, there has not been one person who understood the small-cap resource sector this well.  This guy was a refreshing sight after so many years trying to entertain people in this region with small cap companies. Serena Chiam was the instigator of the distribution of this intriguing artwork.  As I believe,  Michael came into the partnership after buying some of the art pieces himself and becoming a fan of Kim Il Tae.  Serena and Michael are the primary distributors of the art by Kim IL Tae. Having met and spoken to Serena, this is the entrepreneur side of Malaysia.  Tatler Malaysia did an excellent piece on Serena and Aureo Gallery .  In fact, from this first meet, I felt that they were onto something.  Australians are art lovers, and I had a feeling, even at that stage, that this could be a good business. The only problem was that I don’t have the background.  Although, many characters in the mineral resource sector do like to dabble in these art pieces, especially with its association with gold. Doing it the Australian way 🙂 – We adopt everything good. I know the artist is a Korean and not a Malaysian but like good Australian spirit, I have envelope great things and make it Malaysian :-).  I have learnt well from being Australian.  We have claimed, Olivia Newton-John (actually English), Mel Gibson (Born in the USA and came to Australia when he was 12yrs old), Jimmy Barnes (He is Scottish), Keith Urban (New Zealand), Nicole Kidman (Born in Honolulu), Russell Crowe (New Zealand), Naomi Watts (England)…etc. Jokes aside, the entrepreneur spirit shown by Serena and her partners are what I believe is the Malaysian thing… Finding something that is not in vogue and taking it to the market. And the introduction of this kind of art is more than impressive. My inspiration for this blog. My invite to a charity event to raise money for an Autism Centre in the Malaysian state of Perlis was the highlight of my very long roadshow in Asia.  It was like the halfway mark, and we could relax and enjoy some rest and recreation.  To my surprise, I was mentally enlightened and inspired and decided that I must write something about the night and the people I met at the table. When I think of the works by Kim Il Tae, I think of Malaysia. Its kind of silly but the mind works with an association. I am sure that no one cares what my thoughts are but I think that speaks volumes of the work that Serena and Michael are doing.  One can see that there are significant synergies between all the partners.  As a geologist, I can appreciate what Kim Il Tae is trying to do, and as I have mentioned it many times, I am impressed. Kim Il Tae I am drawn to write about Kim Il Tae because his place in time now is a journey of inner self.  Like many people in this planet, the drive to realising one’s inner passion as an artist comes about after a period of submission.  Like many people, the realisation of this passion came later in his life.  The desire is what I call “The Journey”. Kim Il Tae (b. 1956) was born and raised in South Korea. He was good at art since he was a child but did not pursue an artistic career when he graduated from college. It was only in his late thirties that Kim Il Tae rekindled his passion for art when he enrolled at a university in San Francisco to study oil painting. At that time, he harboured a dream of becoming an international fine art artist, to represent an Asian name in the art world. What’s so Special about Kim Il Tae? I admire the passion for Kim to make a difference in the art world and make it unique with the skill to create and innovate.  He has created art that will test time and be as its pristine state even when generations have left this world.  I see his craft in the same light as the creators of IT and all the modern devices in this world or like Leonardo Da Vinci, Michelangelo, Claude Monet, Vincent Van Gogh and all the world-famous artist that have gone by over the years.  The creativity to make the best software, the best app is the same as what Kim Il Tae has done.  The skill required to create and persist on this path to the ultimate goal of acceptance is a testament to his genius. What I am most impressed is that this man sat down at some time and said, what can I do to make this different… What can I do that nobody has done… And then go and create it.  The thought process is no different from the likes of Bill Gates and Steve Jobs.  These two technological maestros have transformed our lives in the area of technology.  Similarly, Kim in time will be at those levels, if he is not already. The Beginning The story – The Journey. Liu Cheng Hua – Malaysia’s Future It was also at this event that I met my first Malaysian artist.  I was seated next to a guy called Liu Cheng Hua , a young bloke who turns out to be a great up and coming artist.  He showed me his collection, and I was impressed. Liu showed me one that he had done on the current Malaysian Prime Minister Mahathir. Mr Liu has created this collection with acrylic on aluminium.  To me, a non-artist buff, this seemed very impressive. As I am the least respected art critic on this planet,  I have to say that I was impressed and thought at that moment, this guy is good. Imaginative, not mainstream, not afraid to explore his boundaries and has a great personality.  I am not sure if all artist is like him, but I suddenly got even more inspiration to write this piece.  As I mentioned, my understanding of Malaysian artist with soul. Liu Chen Hua – The Inspiration The inspiration for these works is very eye-opening.  Mr Liu was born during the Mahathir era. Since when he was young, he was told by his parents that Mahathir is a wise, intelligent and knowledgeable Prime Minister.  Today, he has seen for himself the truth that was spoken and realised that he is the person that was described by his parents.  Personally, over the years I have too learned that Mahathir is an extraordinary person.  There is no denying that there are things which may tarnish his status, but he did manage the country well.  And the recent come back to the Prime Ministerial role cements his greatness.  For Malaysia, I hope he stays around long enough to clean it up. Liu has created a collection of great pieces of art that is related to several Malaysian stories.  There are many collections, and I encourage readers to visit his site .  I am sure many Malaysian artists have this artistic soul that is not related to creating 1MDB. To Liu’s credit, he has featured in many media articles which I am sure is boasting his profile. https://www.star2.com_Liu Cheng Hua: First Sculpture Exhibition – Taiping Here are a collection of media publications. Liu’s most inspiring artists. I asked Liu what his most inspiring piece of art is and his reply was, Andy Warhol’s Two Car Crash. The braveness of the artist to show what looks like an incomplete piece of work. It makes me think that art is not just about the work that is nice or beautiful because every audience sees and think differently. Just do what we like to do! My Conclusion To me, the Andy Warhol piece looked pretty complete, but that shows the shallow understanding I have of this kind of things. Irrespective of my level of knowledge, what I did get out of all the research I had done for this piece of writing, I have really got a better appreciation of the art world, the way the artist thing and I feel that their thought process is not that different to your other inspirational people in the world.  As I mentioned, the Bill Gates, the Steve Jobs, the Elon Musk, the Mark Zuckerberg, the Jeff Bezos and the list goes on… Not seen as an artist but they came up with this thought that this thing that they want to do will change the world. Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. www.samso.com.au If you find this article informative and useful, please help me share the information.  I try and write about topics that are interesting and have the potential to be of investment value.  It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au . About Samso

This topic has been a burning question for me lately.  About 12 months ago, I started looking into Hydrogen cars.  What I found was the typical issue of  Hydrogen cars?  Are they safe?  How do they work? “.  I started doing some research in preparation to write a blog.  As I read more about it, I slowly understood the complexity of the whole issue.  Like everything in this complex world of ours, its all about money and the protection of what makes money, even though it means we put the existence of the human species at risk.  Why let the progress of humanity get in the way of making a shit load of money. 🙂 Recently, I got inspired to write on the topic again when I started seeing all these news of people taking investments on this technology.  I began to think that maybe I am just too pessimistic about the investment world.. they do care… 🙂  I started thinking that my thinking is not silly but just a bit too early… 🙂 What is a Fuel Cell? Source:  Smithsonian Institution – Fuel Cell Basics A fuel cell is a device that generates electricity by a chemical reaction. Every fuel cell has two electrodes called, respectively, the anode and cathode. The reactions that produce electricity take place at the electrodes. Every fuel cell also has an electrolyte, which carries electrically charged particles from one electrode to the other, and a catalyst, which speeds the reactions at the electrodes. Hydrogen is the basic fuel, but fuel cells also require oxygen. One great appeal of fuel cells is that they generate electricity with very little pollution–much of the hydrogen and oxygen used in generating electricity ultimately combine to form a harmless byproduct, namely water. One detail of terminology: a single fuel cell generates a tiny amount of direct current (DC) electricity. In practice, many fuel cells are usually assembled into a stack. Cell or stack, the principles are the same. How do fuel cells work? The notes from the  Smithsonian Institution – Fuel Cell Basics , has a lengthy explanation and you can read at your leisure.  In summary, the fuel cells are a combination of a combustion engine and that of battery power.  Fundamentally, fuel cells make the energy on the run. The engine uses the hydrogen and combines air to produce electricity which is then used to drive the motor.  This process creates water as a waste product, and it is so pure you can drink it.  So we are told. The vehicle stores compressed hydrogen in a tank, and it is like your traditional fuel in a combustion engine car as opposed to a battery in an electric vehicle. What is the positive news on Fuel Cell cars? Hydrogen fuel cell vehicles will be the greenest form of energy, claiming the zero-emission title.  The hydrogen is produced from water, and the only waste product is water that is pure enough to drink.  The way you fill your car will take the same amount of time as putting in traditional fuel in your car that is running on the combustion engine.  Hydrogen cars will be able to drive much further than your Tesla (although some of the newer EV cars can do that now.)  Fuel cells work best in bigger vehicles and trucks, and this will help with the current environmental issues of pollution.  The clean environment has got to be positive in anyone’s books. Imagine all those soccer mums driving Landcruisers. The other obvious positive is that you do not have to wait hours for your car to refuel.  You drive to a station and fuel up in minutes and not hours.  Your only problem now is that you don’t have a station to drive to fuel up.  But they will come soon. Readers can view other positive effects of using hydrogen fuel cells at a site called Fuel Cell Today . Why has fuel cells technology been slow for uptake? They are expensive to produce (Platinum is a key component. This I did not know), as is hydrogen. The gas is flammable and difficult to store. And while hydrogen can be produced using renewable energy via electrolysis (using a current to separate water into hydrogen and oxygen), it’s more commonly produced from natural gas, releasing carbon dioxide in the process. For those who have read my earlier postings, I talked about the environmental negatives of renewable energy.  Have a read of the blog, Solar Energy – Could we alter the Climate? Tesla’s Elon Musk has called the fuel cell technology “fool cells”. There’s an industry joke: hydrogen is the fuel of the future – and it always will be. The process of making hydrogen from natural gas is called Natural Gas Reforming , and unfortunately, this is not very green.  In short, this is the process of exposing a methane source to high-temperature steam (700-1000 degree Celsius) and 3-25bar pressure in the presence of a catalyst. Apart from all the technical issues that are apparent, the biggest stumbling block is the lack of refuelling stations. Will Hydrogen cars blow up? – Hydrogen Fuel Tank Integrity. The big issue with hydrogen cars was the previous belief that the vehicles would repeat the Hindenberg scenario . I read an article about the Honda Clarity and came across their documentation regarding the integrity of the fuel tanks. I have quoted an article on Slash Gear March 19, 2017 . The 2017 Clarity Fuel Cell actually uses two of them, splitting its fuel between a larger tank behind the rear seats and a smaller one underneath them. Each is made of carbon fiber and, in a world’s first, lined with aluminum. They’re designed both to withstand huge pressure – the total 5.46 kg of hydrogen is stored at 10,000 PSI – but also to fail, should the worst happen, in a predictable and manageable way. It’s tested to withstand extremes both of pressure and heat. Should the temperature rise to a point where an explosion could be a possibility, there’s a special valve that’s designed to safely vent the contents before that happens. Known as a thermally activated pressure relief device (TPRD), it’s a one-time-use outlet which can quickly release the hydrogen in a controlled manner. As for the possible consequences of a crash, frankly the hydrogen tank is probably the safest part of the whole car when it comes to sustaining damage. Independent testing by Vancouver’s Powertech Labs of the sort of carbon-fiber tanks Honda – and other fuel-cell vehicles currently on the road, like Toyota’s Mirai – is relying on have found that nothing short of a .50-caliber bullet can make it through. Anything less just bounces off. And if something does manage to pierce the carbon-fiber? The tanks themselves are designed to vent, but not rupture, just as the TPRD is: in effect, they release their pressure in a controlled way, rather than peeling open like a rotten cantaloupe. As the Honda engineers explained to me, it’ll be loud, and give you quite a shock, but it won’t actually explode. Hydrogen sensors scattered near the fuel cell stack and near the tanks themselves keep their electronic noses primed for any escaping gases, shutting the system down if necessary. Vents on the front fenders and at the filler cap avoid any rogue hydrogen building-up. Since it’s lighter than air, it should quickly dissipate; nonetheless, a warning message is flagged up on the dashboard of the Clarity Fuel Cell, advising the driver to contact the dealership. Recent News Recently, in an article published by “The Australian – CSIRO on brink of a breakthrough in enabling hydrogen fuel cell supplies”, where they talked about a new technology that will make hydrogen fuel cell more viable in future vehicles.  According to the article, the technology from CSIRO (Commonwealth Scientific and Industrial Research Organisation, an independent Australian federal government agency responsible for scientific research.) will solve the issue of transporting hydrogen to pumps that will refuel cars. The technology will also make it commercially viable to export hydrogen overseas as ammonia (NH3) for use in fuel cells. Earlier this month, Andrew Forrest of Fortescue Mining announced that they would invest AUD$19M over a five-year period into research at the CSIRO’s Brisbane laboratories.  I am guessing that it is a pleasant diversion for Fortescue Mining to go into something new and different.  Low-grade iron ore industry is not looking great for them at the moment. Andrew Forrest’s Fortescue joins hydrogen push with CSIRO tie-up. Andrew Forrest gives $20m to help kickstart a hydrogen industry in Australia Mining billionaire Andrew Forrest is throwing $20 million behind the CSIRO’s solution to one of the biggest problems holding back hydrogen-powered cars Who is investing in Hydrogen Fuel vehicles? The main visible proponents of hydrogen fuel vehicles have been Toyota, Honda, Hyundai and Mercedes.  The likes of BMW and Volkswagen/Audi are not far behind with prototypes.  In Germany, a program called H2 mobility is planning to build 100 hydrogen fueling stations across the country by 2019. Mercedes has been in the news lately here in Australia with the detailing of its new hydrogen fuel-cell plug-in hybrid vehicle ( www.news.com.au – 14th November 2018 ) Mercedes plans to have up to 25% of their production in electric cars by 2025.  I am sure all the car makers will be doing that, and this is the reason why there are a lot of pf people shorting the profitability of Tesla. For Hyundai, the car that has been making news is the Nexo SUV.  The price of the car would be a deterrent to your everyday folk, and the lack of refuelling station would make the lack of interest. However, like everything new, this will become more affordable with time. ( www.news.com.au –  23rd February 2019 ) What do the financial markets think about all the fuss? Honda like all its competitors are all into green technology. Electric cars are now the future, and everyone is into it. Tesla is no longer synonymous to the phrase electric vehicle.  Interestingly, there are a lot of Wall Street people who are shorting (selling, for those who are not familiar with the terminology) Tesla on the market.  Steve Eisman who is the real Steve Baum in the movie “The Big Short” is one of those guys that do not believe in the longevity of Tesla as the Michael Jordon of electric vehicles. Interestingly I found a rebuttal to this thinking, and it is worth a read. Amusing, entertaining and relatively informative.  Its an article by Clean Technica – “Does Hedgefund Honcho Steve Eisman Not Have A Research Department To Give Him The Facts On Tesla?” by a Maarten Vinkhuyzen . I must say that the recent announcement by Tesla saying that they are back on track with production may be the downfall of Steve Eisman’s issue with their execution.  He was right that they had an execution issue as Elon Musk himself said that they nearly went broke because they could not meet production numbers. Whats the Future? In regards to the hydrogen cells, the fact that all the major car makers are going there even with the whole EV market, tells me that they are all hedging their bets.  I believe that the lottery is like this,  time to charge vs the number of fueling stations.  Whichever wins, will win the war. The war is easier to win with building refuelling stations.  The recent media announcement by CSIRO will mean that the reality of hydrogen energy will be closer than say ten years ago. When you look at the EV market now, it’s not a done deal.  There are still so many factors to consider.  Hydrogen is easier to manufacture once the technology is understood, it will be a smooth ride. A recent report by the Future Fuels Cooperative Research Centre (FFCRC) announced in April 2018, has secured more than $90 million in funding (including $26.5 million from the federal government and $8 million from gas network businesses) to undertake research and development to help transition Australia’s energy infrastructure to low-carbon fuels such as hydrogen and biogas. ( Hydrogen for Australia’s Future ) I have not found any ASX companies that are in this industry so please let me know if anyone does find one. In Conclusion, I must say that two years ago I was looking at a similar project and I will make sure that I contact those guys again.  They had an exciting technology, and after doing all this research, I am very bullish on the sector.  I will revisit those guys and get them to take the technology off the shelf. Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. www.samso.com.au If you find this article informative and useful, please help me share the information.  I try and write about topics that are interesting and have the potential to be of investment value.  It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au . About Samso

The Paterson Range which lies in the Proterozoic Paterson Orogen has been a forgotten region of mineral wealth.  It has only been the focus of all punters because of the recent Greatland Gold announcements on Havieron.  In addition to that has been the rumour mill on Rio Tinto possibly finding another “Olympic Dam” style deposit.  Since the discovery of the Telfer gold-copper mine, the region has highlighted its extreme mineral wealth, but in reality, I feel that it has taken a backseat run to all the other provinces regarding discovery excitement. Paterson Range – Mineral Wealth The Paterson range is home to three world-class mineral deposit.  Geologically the area is known as the Paterson Proterozoic Orogen.  The most famous is Telfer Gold-Copper Mine followed by Nifty Copper Mine and the undeveloped Kintyre Uranium Mine .  In amongst these giants are several other gold and base metal projects such as, Warrabarty – Carbonate-hosted Zinc-Lead Woodie Woodie – Mn Magnum – Gold-Copper–Silver-tungsten (Antipa Minerals, ASX: AZY) Goosewacker – Lead-Zinc-Copper vein deposit Maroochydore – Disseminated Copper O’Callaghans – Tungsten Rainbow – Stratiform Copper Moses Chair – Pb-Zn Grevillea – Massive pyrite. Citadel – Cu Finch – Cu These are only the more significant and notable names. There are numerous projects which have had decent discoveries, but due to a lack of infrastructure and the higher cost of exploration and development, not many have advanced.  The O’Callaghans Tungsten project is a good example.  It is one of the most massive known Tungsten project outside of China and yet, it is relatively unknown as it is 300m below the surface and has little chance of being developed at today’s Tungsten price. The projects that define The Paterson Range. Telfer Copper and Gold Mine. The Telfer operations are approximately 400km east-south-east from Port Headland and 1,900km north-east from Perth. Newmont Mining first made a claim to the deposit in 1972.  However this claim is disputed by Jean-Paul Turcaud to this date. Turcaud claims he found the Telfer deposit two years before Newcrest did. In the early 1980s, Turcaud reached a settlement, accepting $25,000 from Newmont’s head office in New York City but continued his claim, demanding a Royal Commission. Turcaud continues to sign posts on Global warming to newspapers as the Discoverer of the Telfer and Nifty Mine. The official story of the discovery states that the deposit was found by Day Dawn Minerals, a small exploration company, who did not stake a claim either. One of the company’s geologists, a man called Ronnie Thomson, then moved on to work for Newmont, in which position he informed David Tyrwhitt, then exploration manager for the company in Western Australia, about the promising gold samples that had been found. Newmont paid Day Dawn $15,000 for the maps of the deposit and Tyrwhitt staked out the claim in May 1972 Despite more than 30 years of exploration, the Telfer deposit remains the only significant gold deposit in the province.  Copper and gold are hosted by veins and stockworks that are concordant in the upper parts of the mine, but crosscutting at depth. Currently, Telfer has the following facts on the mine, 2.4Moz of Gold Ore Reserves 8.2Moz of Gold Mineral Resource 0.21mt of Copper Ore Reserves 0.66mt of Copper Mineral Resources Nifty Copper Mine The mine is approximately 450km east of Port Headland, Western Australia.  Currently, the Nifty mine is owned by Metals X (ASX: MLX).  It has a resource of 21.10Mt @ 1.73% Ni and 539Kt of Copper. The deposit was discovered by Western Mining Limited (WMC, now acquired by BHP Limited) in the early 1980s.  WMC developed a conceptual model for the exploration of sediment-hosted stratiform copper deposits.  Regional fieldwork uncovered coarse-grained sandstone source and laminated dolomitic siltstone and pyritic shales as host In the 1970s,  work began with geophysical and geochemical field work with the discovery coming in the early 1980s.  Geophysical work highlighted a Pb-Zn-Cu target in the western part of the Yeneena basin.  Mapping and lag sampling confirmed the presence of the anomaly and subsequent drilling uncovered the secondary ore body.  Discovery occurred in may 1982.  Mining began in 1992. Interestingly, the Nifty copper deposit is not the most significant copper orebody. It is the only one mined.  The most substantial copper ore body is the Maroochydore disseminated copper deposit. Kintyre Uranium Project. The Kintyre uranium project is 60 km south of the Telfer gold mine and 260 km northeast of Newman at the western edge of the Great Sandy Desert in the East Pilbara region of Western Australia.  CRA Exploration (now Rio Tinto) first discovered the Kintyre deposit in Western Australia in 1985.  Cameco bought the project in 2008 from Rio Tinto in a 70% joint venture with Mitsubishi for US$495M in July 2008.  In July 2012, Cameco announced that the deposit was not economical at current market conditions, stating it required a $67 per pound uranium price. (GSWA Report 97) Maroochydore Copper Project The Maroochydore copper Project is at the western margin of the Great Sandy Desert approximately 100km south-east of the Nifty copper mine (Nifty), 100km south of the Telfer gold mine and some 450km south-east of the Port Hedland concentrate loading facility. Metals X Limited currently owns it. The prospect as 486,000T of Cu metal @1%Cu and 19,000T of Co metal @ 380ppm Co. The 2012 drilling programme, comprising 33 drill holes for 14,971 metres of pre-collared diamond drilling, commenced at the end of April 2012 and was completed in October. Drilling was undertaken over a 5km strike length and included 10,602 metres of diamond drilling at an average hole depth of approximately 453 metres. Stratabound copper sulphide mineralisation of low to medium grade tenor was located in almost all holes and was locally upgraded to narrow high-grade lenses in highly deformed and strongly brecciated folded and faulted structural traps. Note:  I have forgotten where I got the above information. I know that information did not come out of my brain. I tried to source the info but in, my untidy manner, I cannot remember.  It has been a busy weekend. What is the Issue? Like always, the investment world flock to low hanging fruits or perceived low hanging fruits.  Funding for companies is hard to find when you want to explore in “frontiers” such as at the Paterson range.  As I mentioned earlier, the lack of infrastructure for working in this region is a big negative. I remembered in 2009 when I was scouting for projects before listing my previous company,  I looked at a project in the Paterson Range. I liked the potential and the upside. No one was spending money in the region.  I loved the fact that no one was looking to do things in the Paterson Range.  I had a discussion with the vendor, and he mentioned that it would be an expensive journey and being a small company, he advised that I look elsewhere.  Reluctantly I agreed, and it made good sense at that time. Many people would have done the same. Driving over dunes and getting your drill company to do that would be an expensive exercise.  As one associate said to me recently, one dune looks the same as another. Why is the place so mineralised? According to the Geological Survey, there are 130 mineral occurrences recorded.  In my opinion, the proximity of these vast deposits indicates to me that the system source has to be of a significant size.  The Proterozoic Paterson Orogen has always been known to have the potential to be bigger than the existence of those three world-class deposits (Figure 6).  In early 2000, a company announced the discovery of micro diamonds.  Twenty micro diamonds and other indicator minerals were found during exploration.  Regarding geology, this will imply that the mineral-rich mantle source is surfacing into the Paterson Range. In terms of a Proterozoic Orogen (for those who are not geologists, the Proterozoic word describes a period in geological timeline. A quick google search will explain it), there are a lot of significant deposits.  It is one of the most mineralised geological time producing recent discoveries such as the Tropicana Gold Mine (7.9M oz) and the large Nova Nickel-Copper deposit (10MT) . Like all the mineralised fields in Australia, the Paterson Range is only under-explored due to the harshness of the region and the thick cover that exist in most parts of the Paterson Orgen. Regarding structure, the GSA (Geoscience Australia) has made studies that are implying the structures underlying the placement of the Paterson Orogen is deep-seated crustal related.  I don’t think the geological fraternity is arguing against that observation as this is why geoscientist always liked the Paterson Orogen.  If you look at the continent of Australia, thanks to its age, the land is oozing minerals out wherever the land allows this mineral-rich system to surface. So what’s the fuss all about? I only started noticing the fuss after a friend ( the one who had the wisdom to tell me that one dune looks the same as another), sent me the announcement from Greatland Gold PLC .  It was the results from their first drilling program. Greatland Gold PLC HAD001 came back with 121m @ 2.93g/t Au and 0.23% Cu.  It was deep down the hole, from 497m to 618m.  Now the intersection was impressive, but I thought that the intersection was deep down.  As usual, google searching started, and I started to see some news that Rio Tinto may have found something big also, but there was no news about that in the public domain. HAD003 came back with 21m @ 3.78g/t and 0.44% Cu and HAD002 was less significant with 1m @ 5.9g/t with 0.24% and 2m @ 5.44g/t. Greatland believes that they may have an IOCG (Iron Oxide Copper Gold Ore Deposits) on their hands although some proponents in the area think that this could be a variation of a VMS.  Whatever this may turn out to be, all I feel is that there is something substantial. The discovery by Greatland is exciting, and they seem to have raised funds to continue.  It is probably a good time to be doing all these kind of deep drilling as the market is not at it as high as in 2007/2008. Drilling costs are not prohibitive, and there are now some government incentives that subsidise this kind of “frontier” work. Artemis Resources Limited (ASX: ARV) There are a lot of players in Australia involved, but one of the more interesting ones is Artemis Resources Limited (ASX: ARV) .  The information from their releases is fascinating. The company made an announcement recently highlighting that they have raised more money and they will start exploration work.  Now I get that they have the tenement adjacent to Greatland gold.  The regular nearology play.  However, have a look at Figure 4, and Figure 5 was released with their announcement. Look at the structure, the line leading north into the Armada Prospect.  Remember that Figure 4 is from coarse magnetic data (400m spacing).  There is one going north and another primary structure heading in an SW direction into Armada.  Now if Havieron is something big,  I think Armada has got a lot of chance of turning into something significant as well. Look at the smaller structures in an east-west nature, and if they cut these primary structures, then you are going to get some action. Remember the pure theory. Liquids come spurting out at the point of least resistance.  The point where these lineaments/structures meet will be what we call an extensional point and a point of pressure release. All these assumptions are assumptions only and will be fact if and when they drill those points.  I would suspect that when they get their act together and start doing more detailed geophysics, things will become clearer for the better or the worst… 🙂 Figure 5 has more structures shown and at this stage who knows what may be in store within Armada.  As a punter in this industry for a long time, I like simple fundamental things.  We are dealing with the possibility of one or several elephant type discoveries.  I wanted to highlight in Figure 2 and Figure 6 the proximity of all those world-class deposits.  They are all within 100km from each other.  I cannot make this any clearer that the discovery is building a significant statement. Antipa Minerals Limited (ASX: AZY) The other player in the Paterson Range rush is Antipa Minerals Limited.  As I mentioned, I came very late into the scenario of “who has what?” and “what is the prospects?”.   And because of these unknown factors, I was surprised to see what Antipa had in their tenements.  Remember that Antipa is the company who has the JV with Rio Tinto, and they could be on the verge of a big payday.  With Rio doing lots of things in their tenement and giving everyone heartburn waiting in anticipation for news, the punters are taking positions. The best place to have a look at their project is n their website .  Their share price has taken a great leap in late October from about 1.3c to a high of 3.7c in late November.  However, if you look at their share price over three years, you will notice a long period of no action (Figure 7). I am not sure if shareholders are happy or not, but I have been in those prolonged short-term punts that last longer than its definition,  and I will say, I was not singing for joy. Looking at the three-year chart, you would think that the last two years were pretty dull. I am not sure what is the driver for the recent rise in October 2018 as I am not intimate with the going on of the company.  However, if you look at Figure 7a,  the journey from the Rio Tinto JV announcement till now will be very disappointing for punters (unless you sold out on the run to 6.6c).  A market capitalisation of AUD$51M appears to be high, but I would think that a discovery of the nature we have been discussing would make this company cheap at this stage. What I am understanding is why its share price has not moved with the amount of “assets” that one can see it its tenements. All the smoke that is in their tenements is proof that there is a lot of mineralisation happening and the source is very productive.  This character is consistent with the other mineral-rich provinces such as the Norseman-Wiluna Belt, the Murchison, the Hamersley, the Albany-Fraser Belt, Yamana Belt, The Arunta Block, Mount Isa, Ballarat…etc.  There are multiple big projects mixed among the numerous smaller projects. The other players in the Paterson Range Rush. Looking at Figure 8, you can look at why I am very upbeat on this whole scenario.  When I started researching the region, I was taken back at the prospect of this area. I knew that there was Telfer, O’Callaghans (Tungsten), Nifty and Kintyre but I did not know about the rest. Conclusion I am not saying that Artemis is going to have the elephant nor am I saying that Greatland has the elephant.  For all we know, the elephant may never exist at this stage.  Maybe the elephant is with Rio Tinto.  What I do know is that with the news that is coming out of Greatland and the inference you would make as a geologist,  the prospect of having kilometres of a massive structure going through your tenement is exciting for Artemis. Time will tell what the real story is.  In my opinion, the game is between Greatland Gold, Artemis, Antipa and Rio Tinto.  In a time when our technological advances in exploration are much better than 20 years ago, I think the time for a real discovery in the Paterson Range is not far away.  The Proterozoic Paterson Orogen will uncover a few more world-class mines if not at least one. To add an outsider tip, Fortescue Metals Group who have some tenements in the area may surprise the market.  I say this because this is a game for deep pockets and they have deep pockets. Companies like Artemis may have the best opportunity, but if they cannot continue to tap the market for money, they may indeed exit this game sooner than they wish.  The recent raise that they made undoubtedly is taking the company in the correct direction. Many industry experts have said over the recent years; exploration will be the most critical component of all major miners.  It will be expensive as all the low hanging fruits are taken. The research will need higher technological advancements.  Exploration will be riskier than before, but if you do it correctly, it may be more rewarding.  The rewards will be more substantial as it will be discovered in a place nobody had been before. Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. www.samso.com.au If you find this article informative and useful, please help me share the information.  I try and write about topics that are interesting and have the potential to be of investment value.  It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au . About Samso

What is the problem with vanadium?  There is a rush for the product, but the market does not seem to be giving the vanadium companies any slack.  We all know that it’s a complex element and many a company have gone bust trying to master it.  We also know about its special properties that are luring young and old to invest and take that punt hoping for a big payday. Over two centuries have passed since the Spanish scientist Andres Manuel del Rio discovered vanadium in Mexico.  Despite this, we are only now understanding the mineral’s vast potential.  If vanadium is known for anything, it’s steel. Added in small quantities – as little as 0.15% – vanadium is proven to double the strength of the alloy.  Henry Ford was one of the first exponents of the metal, using it to strengthen the Model T – the car credited with introducing the automotive industry to the masses in the early 1900s. Its the unique properties of vanadium that is driving the excitement at the moment. What is Vanadium? According to Wikipedia , Vanadium is a chemical element with symbol V and atomic number 23. It is a hard, silvery-grey, ductile, and malleable transition metal. The elemental metal is rarely found in nature, but once isolated artificially, the formation of an oxide layer ( passivation ) somewhat stabilizes the free metal against further oxidation. Andrés Manuel del Río discovered compounds of vanadium in 1801 in Mexico by analyzing a new lead-bearing mineral he called “brown lead”, and presumed its qualities were due to the presence of a new element, which he named erythronium (derived from Greek for “red”) since, upon heating, most of the salts turned red. Four years later, however, he was (erroneously) convinced by other scientists that erythronium was identical to chromium.  Chlorides of vanadium were generated in 1830 by Nils Gabriel Sefström who thereby proved that a new element was involved, which he named “vanadium” after the Scandinavian goddess of beauty and fertility, Vanadís ( Freyja ). Both names were attributed to the wide range of colors found in vanadium compounds. Del Rio’s lead mineral was later renamed vanadinite for its vanadium content. In 1867 Henry Enfield Roscoe obtained the pure element. Vanadium is the 20th most abundant mineral in the earth crust and occurs naturally in about 65 different minerals.  The metallic vanadium is rare and is known as the mineral vanadium, native vanadium.  Wikipedia has a pretty substantial write up on its uses and other factors.  One should contribute and keep it free :-). Traditional uses of Vanadium. About 90% of vanadium is used to produce speciality steel alloys.  Vanadium pentoxide is a catalyst for the production of sulfuric acid. Uses in the Renewable Sector. The recent rush to find vanadium stems from the introduction of vanadium flow batteries. As reported in altenergymag.com , these batteries allow intermittent energy supplies to be regulated from moment to moment.  This dispatchable energy or dispatchable power enables the grid to balance the amount of energy going into wires. Vanadium flow batteries utilise vanadium’s unique characteristics for rechargeable energy storage, which is critical to renewable and dispatchable power systems. Research facilities around the world are investing in vanadium flow battery research and development to meet the projected global demand.  The vanadium flow battery has virtually unlimited storage capacity with the ability to scale the batteries. As a result, the vanadium flow battery’s value to the emerging renewable energy technology sector is compelling for many utility companies and grid operators. Why is the Vanadium Flow Battery not as famous as the Lithium Battery? Currently, the Lithium Battery (LiB) are more efficient and hence more cost effective for the everyday household.  The Vanadium Flow battery (VFB) close the efficiency gap with the larger storage capacities.  However, at this stage of the technological race, the VFB is still at its infancy.  Like the tungsten battery article that I wrote about in my previous blog, at this stage, the race is still favouring the LiB. Interestingly, when you look at the capacity of the VFB,  I do see them doing well with the massive solar and wind farms.  The way the battery works will be a great benefit in those cases, but I think the cost effectiveness is going to be a big issue. Research does show that these batteries are the most efficient in large capacity requirements. The VFB has up to 40% vanadium content, and this will make the battery vulnerable to price fluctuations.  Imagine what the price of a Cobalt battery now if there was a Cobalt battery.  LiB has already established a big stronghold on technology, and as always, this is going to be hard to change.  No matter how good your technique is, once the mainstream players set their views, they are not going to change in a hurry. So what does that mean for the mineral resource fraternity? For those that have been following this sector, the lack of keen interest is becoming very frustrating.  Many people would have remembered the Windimurra Vanadium project.  The last proponents to take on this project was Atlantic, and that ended in tears.  I believe that was around 2014.  The project had a significant mineral resource.  As quoted on the Atlantic website , the resource was over 235MT.  They claimed to have highest quality ore and was building a plant as well. Recently there was news that the owners of the project are making a comeback with the rising interest in vanadium.  This project had many issues, and the volatile vanadium price did not do them any favours.  However, if my memory serves me well, the main problem was the chemistry and the issues in the plant.  Whether it is a chemistry problem or a lack of management, one will never know.  I remember talking to a few guys about this and they did say that chemistry was the issue. It was because of these issues that I have always maintained,  if you have that large a resource and you cannot get the chemistry right, what hope would any company have without all those positive parameters.  The guys who were in that industry would tell me that it is easier to work with another commodity than to try and work this one out :-).  I am sure that this is now had many technological advances and such issues would have been overcome. Vanadium Companies on the ASX There is a good list of these companies listed on www.smallcap.com.au and it had a good summary of vanadium facts.  I will admit that I have not followed them much because I feel that there is a gap in making the chemistry right.  These boutique stocks are now taking a hiatus on the market, and like all things unique, it needs the market to be hot.  Lithium and Cobalt stocks are a good example. Late last year, you could do no wrong, but now, they are not looking healthy.  Even the ones that have a good story are having a hard time getting the market to get excited. As you can see in the share price charts that I have included, things are not happening.  I have added the stocks that I have some knowledge about so please don’t think that I am favouring any particular companies. My Conclusions The vanadium Flow battery is new technology compared to the traditional Lithium variants.  My thought is that the science behind the technology is very good.  This battery can handle the fluctuation in energy within itself as if it has a living ecosystem. The fact that you have an ever-changing flow of reactions that is comfortably controlled by vanadium with its “living” oxidation states is critical.  Lithium batteries have a tendency to surge and the technology required to manage that is not simple.  This is why we don’t have a rush on electric aeroplanes. The imbalance use of charging and discharging in batteries promotes decay, and that is what these Vanadium batteries can overcome.  I feel that in the long run, the VFB will become significant tools. I read in one article that the New York’s Metropolitan Transport Authority has signed a deal to test vanadium redox batteries . Researchers are developing a prototype that can store electricity generated overnight when the demand is low. The energy stored in the cell could then be used in the morning when the demand for electricity goes up, and this would reduce the amount of power needed during the day. The city would also save money on its electricity bills because power generated overnight costs less than during the day. In the case of the most widely used renewable energy source for everyday households, the solar panels, vanadium-based redox batteries could also help in to be more efficient. Solar panels produce the most electricity in the middle of the day, when residents are often at school or work and when the demand for electricity is low. Vanadium batteries could store this excess electricity and discharge it later in the evening when people are at home to use it. Cost efficiency of these batteries is now what holds it back.  There is a company that makes a “mega-battery” that is as big as a car which sits on top of an office building in Manhattan skyscraper that is charged at night when electricity is cheap and discharge during the day to reduce the amount the building has to pat in daytime prices.  So as you can see, in future, these batteries will be a big player.  It is just a matter of time. Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. www.samso.com.au If you find this article informative and useful, please help me share the information.  I try and write about topics that are interesting and have the potential to be of investment value.  It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au . About Samso

Looking for the next money tree on the ASX, have a good look at Nuheara Limited (ASX: NUH).  Nutheara Limited makes Hearing Aids with a difference.  The company, Nuheara Limited (ASX: NUH) recently announced that they had been selected by the United Kingdom’s (UK) National Health Service (NHIS) to provide hearing solutions to adults and children with mild to moderate hearing loss. Now prescribed alongside traditional hearing aids means that they are real participants in a billion dollar industry.  Nuheara Limited has also partnered with Specsavers which is a fantastic distribution partner.  However, in my view, the main game is the health industry.  The health industry has limitless customers.  As we all know, the two sectors that never run out of customers are childcare and aged care.  The critical aspect is that a loss in hearing in an ageing population is more than a common coincidence.  Nuheara making hearing aids with a difference is a sure way to get noticed in an industry that have billions to share. My Involvement My involvement with Nuheara Limited started in 2015 by way of an investment in a small company called Wild Acre Metals Limited.  They took on this new technology called “Wearable Hearing Aids”.  I thought that Bluetooth earbuds are not exactly new and what is the whole excitement.  As my position was not significant at all, I just let the entire scenario play out but I was not impressed. In fact, for a long time, I did not think much of the technology.  I guess it was nearly18 months later that I looked into the technology and was impressed.  This lack of interest was because I had minimal exposure to the stock.  But I did make up to 5 times my investment, so that made up for it :-). Corporate Information Nuheara Limited was born out of a Reverse Takeover (RTO) of Wild Acre Metals Limited and formally incorporated in early 2016.  However, the announcement of the transaction started in 2015. Market Capitalisation: 66M (12/2018) Shares Outstanding 891.5M (06/2018) Top 20 %: 38.6%  (Two directors, Justin Miller and David Cannington own 7.1% each) What is the Technical Aspect of the Story In a very simplistic way, the Nuheara earbuds allow the user to change the frequency of sound based on the environment you are present.  If you are at a construction site or a restaurant or in an aeroplane, it works to allow the user to change the ambient noise and improve the sound of what you want to hear.  As I understand, if you are talking to someone in a construction site, you can cut out the ambient noise and allow you to listen to that person’s voice.  Similarly, in a crowded area, you can use it to cut out the surrounding talking and concentrate on the person you are talking to directly. I remember when I first bothered to look into the Nuheara Limited’s product, I was surprised that it is not just a Bluetooth earbud, but it does all these functions.  I was amazed at what the fuss was all about at that time.  I seem to have an issue with looking into details 🙂  The products range looked very stylish and wearing that would not look like your traditional hearing aids which spells Old Man So What’s the Big Deal? Now that we are all at the twilight of our lives (I am anyway…) when things such as an improvement to our health are so apparent.  As a gadget freak, I own three rather expensive wireless earbuds, and god knows how many noise cancelling headphones.  Now researching this product, I am tempted to buy the buds myself.  Imagine that we have an app on our phone (a gadget we seem to cannot live without and cannot stop touching every 5 seconds.)  that allows us to manipulate the sounds we hear.  We can cut out the surrounding noise and only listen to what we want to hear, and I am not talking about music. I love the idea that we can cut the sound of the machines and isolate the voice of the person we want to talk to directly. Having spoken to several people who are wearing hearing aids, their biggest complaint is that sounds are all pouring into the head.  They cannot isolate.  The ability to do this is a big deal.  I recently paid $200+ for a Jabra earbud .  It is great to use, but it has some of the functionalities while you are playing music but not as a hearing aid.  Now I believe that the Nuheara Limited iQbuds are both. The other factor is the use of these buds in industrial applications.  As a geologist, we are always working close to noisy drilling rigs, and we wear earplugs.  These earplugs protect our eardrums from the constant loud noise.  Imagine wearing these buds to do that, but it is connected to all the technology to play music….etc So What’s The Business? Now, this is an excellent question?  There are a heap of brands out there in the market.  Let’s not kid ourselves.  We are a species of the animal kingdom that loves brands. Brands make us feel the quality.  Even the perceived quality comes from the name and the perceived quality of the name. We are such simpletons. But you need to understand the message Nuheara is trying to sell.  They are not headphones, and I feel that many people out in the general public will miss this message. When you look at the diagram below, Nuheara had placed the IQBuds in a sector that is different from headphones.  How is it different?  The best analogy that between fossil fuel cars and Electric cars, the general public can understand the clear distinction.  However, when you ask people about dementia, they think of memory loss issue, but when you talk to carers, it is the character change that drives them nuts ( see my post on dementia ).  I fear that Nuheara is in this confusing category.  The market will lump them into the headphone industry. There is a danger that customers cannot differentiate between a hearing aid and a hearing aid with a difference. The diagram above represents where Nuheara Limited is in the market.  The traditional hearing aid industry is an $8B market but is only selling 13M devices p.a. as opposed to the conventional headphone industry of the same market value, but it sells 300+M devices p.a. When you look at those numbers, it’s an important reason to be in the industry.  There are several videos on the website that explains the IQ buds. The videos are great as it makes it clear why they are not just another Bluetooth device. Share Price Movement In Figure below,  you can see that the share price journey has been volatile, but if you smooth the curve out, it has not been too exciting.  Listing at a low of 2.5c in early 2016 and now being 7c is not what I would call impressive. Fortunately for me, my exit was well timed, but that was because I had a small shareholding and the capital gain warranted a departure.  If I had a more substantial holding, my modus operandi has always been to exit when the story changes.  In this case, that would have meant that I would be still a shareholder. Technically, the 5-year chart does show that it is trending upwards and trying to break the resistance level at 15c would appear to be approaching.  I am never one to make bold predictions on individual stocks solely on technical analysis but when you couple the recent announcements and the chart, I do feel very comfortable in predicting that the share price will test 15c again. Technically, when I look at the 3-year chart, there is more clarity on my thoughts on breaking that 15c level — lots of bullish sentiments and setting new higher lows.  As I am an advocate of horizontal support, I see several support levels.  It seems like the bulls are busy creating new highs, but the bears come in to set the lows before the bulls are back in there setting new highs again. My Thoughts I have to admit that I am now more intrigued about Nuheara Limited than before I started writing this blog.  The more I have learned about its potential, the more I feel its a reality.  So what does all this mean?  In my opinion, the Hearing Aid industry is only going to get bigger. My parents paid thousands for their hearing aid, and they tell me that it is too annoying to wear them which is also consistent with other people wearing hearing aids.  If the IQbuds can deliver what they are marketing, they will conquer the market. In regards to a view of its share price, I feel that the currently released announcements are good signs of a good foundation and the market accepting the company strategy.  Surely the oversubscribed placement in December 2018 is a testament to the direction of the company.  For me, that placement at 7.5c is now below the current share price, and this is representing good value. Conclusions Remember that once you go past the age of 35,  everything in our body is deteriorating including our hearing.  I once read that once we reach 21 years old, everything is going downhill. If there are still people, who think that the hearing aid industry is a small market you need to have a look at a company called Amplifon .  It retails and fits hearing aids and supplies correlated services aimed at the solution of problems related to the loss of hearing.  The Group operates in Italy, France, Spain, Portugal, Switzerland, Austria, Holland, the United States, Hungary, and Egypt. Amplifon operates through a network of distribution centres and licensee network affiliates.  In Q3 of 2018, they had a revenue of 303.2M Euro and a nett income of 10.6M Euro ( Bloomberg )  In August 2018,  Bloomberg reported that its IPO had returned almost 1000% since IPO. Hearing Aids market Size Projected To Reach $6.5 Billion By 2024 (www.grandviewresearch.com) The global  hearing aids market  was valued at USD 4.5 billion in 2015 and is expected to reach a value of USD 6.5 billion by 2024, according to a new report by Grand View Research, Inc. Key factors driving the market expansion include the dramatic increase in ageing population of 65 years & above and the associated loss of hearing and growing demand for new-generation instruments that are technologically enhanced and enriched equipment with better aesthetics. As per the data published by the WHO (2013), the prevalence of the same disease in adults over age of 65 years is expected to be five times more than that for the individuals below 65 years of age. It also estimates that in the developing nations around 20% of the people with hearing loss require hearing aids and less than 3% of them are expected to be using it. Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. www.samso.com.au If you find this article informative and useful, please help me share the information.  I try and write about topics that are interesting and have the potential to be of investment value.  It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au . About Samso

On 31 December 2018, Doriemus PLC (ASX: DOR) announced that they had signed a binding agreement with Rey Resources Limited (ASX: REY) to obtain a 50% interest (plus operatorship) over the 5,058km² Western Australia onshore petroleum exploration permit block EP487.  The statement by the Executive Chairman of Doriemus , David Lenigas mentioned that the first thing they want to do is get a consultant to look at how to incorporate the Fishbones Stimulation Technology. The Fishbones Stimulation Technology reportedly can help generate more profits and create efficient oil flow. In the very tight crude oil industry, any edge to allow efficient oil flow and make more money would be fantastic. What is this Fishbones Stimulation Technology? Fishbones is a provider of unique technology that has defined a new level of precision and efficiency in reservoir stimulation. Using a short pumping operation, numerous titanium tubes are extended from the mother bore to create long channels, delivering significantly improved reservoir productivity. Fishbones, like no other stimulation system available today, guarantees connectivity with your reservoir precisely where planned with the optimal use of valuable resources. The Inventor Fishbones Stimulation Technology was invented by Rune Freyer, a serial entrepreneur that holds many patents and patent applications. His vision was to deliver a shift change in completion method that creates vertical connectivity in the reservoir without the infrastructure, environmental impact and complexity of traditional fracturing treatments. Rune was the inventor, manager and owner of the successful Easywell company (swellpackers) until 2005, and is the Fishbones, principal shareholder. Reasons To Choose Fishbones Increase productivity  by connecting the well to the reservoir with up to 300 laterals. Accelerate production  by integrating stimulation in your drilling program. Avoid water or unwanted gas  by predictable penetration and location of the laterals. Simplify logistics  by using rig pumps and significantly fewer fluids. Accelerate progress  by avoiding cementing, perforating, cleanouts, running frac strings and other operations. Reduce HSE exposure  by reducing the number of operations and working hours. Reduce the environmental impact by reducing emissions and by using fewer fluids. Avoid flow back  and disposal of fluid from hydraulic fracturing. Effective reservoir conductivity  may be low due to layering or faulting. The layers or faults can be penetrated and drained by Fishbones with the mother bore not even penetrating the faults. Different intervals have different pressures and can be hard to effectively hydraulically stimulate. Fishbones allows you to stimulate zones with different pressure regimes. The Project The Derby Block occurs north of the Fitzroy Blocks and overlies the major road infrastructure in the region. It abuts the northern flank of the Fitzroy Trough and is considered prospective for both conventional oil on this northern flank as well as for significant accumulations of gas in the Laurel regional gas accumulation. REY currently holds a 100% interest in petroleum exploration permit EP487. The block is considered to be predominantly a Wet Laurel Basin Centred Gas play (“BCG”), which is regionally extensive throughout the Canning Basin, with major companies such as Mitsubishi and Buru Energy also having operations further along trend in the area. Existing infrastructure in the area is extensive due to the activities at Mitsubishi’s Valhalla and Asgard gas field operations. Oil Pricing In recent times, the price of oil has had a battering, and it seems that the start of 2019 has not made too much noise. This morning as I write, US Oil is at $45.44 which is slightly down from a recent high of about $47. Remember that the low $42 was around Christmas time 2018. All the recent news that I am hearing and reading seem to be indicating a run back up to $70 per barrel. The oil industry is similar to the iron ore miners in regards to the rush to be efficient in production. Efficient oil flow is critical in a pricing market such as what we are observing now. I remember the time when iron ore took a battering in 2009 with low prices and companies such as Rio Tinto started working on reducing production costs.  Now, the iron ore miners are travelling comfortably with the cost of production in the low $20 per tonne (so I am told). I read that some of the oil producers are currently producing at $15/barrel to overcome the low oil pricing. I am suspecting that with all the depressing oil pricing, the use of the Fishbones Stimulation Technology will be helping those marginal wells to make more profits and have more efficient oil flow. How is the Industry? When you review the news in regards to the oil and gas industry, it is business as usual. Industry people are telling me that they are still going about their business but are looking at projects that are more attractive to investors. When you think about it, this makes perfect sense. I have been in the mineral exploration industry for the last 25+ years, and this is how the industry keeps chugging along. When the commodity price takes a turn for the worst, the participants of the industry keeps going. Things are tough currently, but there are a lot of talks of oil going back to the $70/barrel levels. What’s The Good News? Industry participants tell me that it is now increasingly harder to find oil. All the previous discoveries were easy targets.  Exploration is getting expensive.  All this talk sounds like supply is decreasing, but the big question is whether the increasing use of EV vehicles will make significant changes to the demand equation.  In my opinion, this uncertainty is not a bad thing as this will move the price of oil up, for the short term anyway. Like all commodities, the cream of this industry has all been discovered. The Fishbones Stimulation Technology will bring online a lot of projects that were previously not considered.  Will this increase future supply?  I think not.  The real supply player will be the US shale oil players and many people are proposing that they will create an oversupply issue. My call is that the shale oil players will affect supply over time.   However, I don’t think it will change the oil price as the price will hang around the sub $100 range even with the Oil Shale players.  I can’t see it going over the $100+ levels. Corporate Information REY Market Capitalisation:  53M (12/2018) Shares Outstanding:  212.4M (06/2018) Top 20 Shareholding:  92.7% (2018) DOR Market Capitalisation:  4M (12/2018) Shares Outstanding:  50.4M (06/2018) Top 20 Shareholding:  57.9% (2017) This announcement is exciting as DOR which is spending $1M to get 50% of the “production field” will add significant value to the share price.  REY, on the other hand, is not going to have much action as its Top 20 shareholders own 92.7%.  It appears to be a Chinese company, and if it is, I am sure that the entire 92.7% holding will be only shared with a handful of non-related entities.  It will be tough for anyone to make shareholders get value with that holding percentage. This issue is why I believe that the play is for DOR and with a market cap of 4M, this has to be a great buy.  I had a look at the market depth, and the issue will be trying to get a meaningful amount of shares.  DOR has a lot of upsides as the Executive Chairman is  David Lenigas.  David has had a lot of successful corporate activities and the most recent is that of Artemis Resources Limited (ASX: ARV).  David is also the Executive Chairman of Artemis Resources Limited (ASX:  ARV) , Southern Hemisphere Mining Limited (ASX: SUH) and Clancy Exploration Limited (ASX: CLY) .  That is all that I know. In terms of a “good buy”, I am tempted to go for a punt with DOR.  I am currently not a shareholder, but I am going to be following this program.  I have invested in one other oil and gas play, and that was Arc Energy in the early 2000s.  That was a ride from 11c to $1.20.  The story back then was a similar scenario.  It was a new story to find oil in the Perth Basin (if I am correct). My “mentor” Geoff Donahue explained to me how the project was going to work and suggested I take a position. That was the best decision. Conclusion Investors should start looking at these technological advances that can make previous sub-standard oil fields profitable.  There will be many ASX listed companies such as Doriemus PLC  that will benefit from such technology.  Previously there was the fracking technology, but this is another advancement.  In my opinion, this kind of companies using technology such as the Fishbone Stimulation Technology will make their shareholders very happy. Currently, the ASX is very stagnant, especially within the small-cap resource/oil and gas sector.  My thought is that investors should look out for parameters that are generally not on their lists of must-have in a company. I am sure with the depressed oil price, those companies that are in the oil and gas sector will be looking for any edge they can find. Whether DOR makes this venture work is all in a crystal ball at the moment, but the main point of this discussion is the introduction of the Fishbones Stimulation Technology. Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. www.samso.com.au If you find this article informative and useful, please help me share the information.  I try and write about topics that are interesting and have the potential to be of investment value.  It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au . About Samso

Pilbara Minerals Limited ( ASX: PLS) was the flag bearer of the lithium rush.  In 2018, this rush took a backward step and there are now many unhappy shareholders.  I remember in 2017, the market could not get enough of the commodity. Then the Cobalt hype came in, and that made the market super hot.  After all the commotion, there is a reason why the market has gone into hibernation, and I don’t think its got anything to do with a lack of demand. I would describe the latest woes in lithium pricing as a hangover that had to happen. In the run-up to the end of 2017, it was all about the coming of the lithium revolution — the revelation to the market about the demand and the lack of supply. There was also the belief that there was a supply issue. When all the dust settles, I believe that my thoughts and that of the market will be consistent.  I believe that this Lithium Hype will finalise at a lower price that is economical to users and buyers.  The high prices cannot be sustained and will come down to a level that will work for all participants. Let’s work out what is what first. Before we get into all the details, let’s try and distinguish the different sources of lithium.  The hard rock stuff is more accessible to mine and process but is generally more expensive.  When the brine guys sort themselves out, they will take over as the leading supplier of lithium. Hard Rock Lithium The primary and more commonly understood types are what is called the hard rock ore.  The hard rock lithium comes from pegmatites which are bodies of rock that contain very incompatible elements.  These elements are those that nobody wants on their team, so they are the last to form and concentrate within these rock units.  They are mainly found in and around granitic rocks as their chemistry is consistent of these rock types. One of the significant characteristics of pegmatites is the vast crystal nature of the minerals.  As pegmatites are effective a large quartz vein but with more elements, when the fluids cool, the process of formation is allowed to cool slowly and form larger crystals.  See the photo of a spodumene bearing pegmatite below. What makes an excellent hard rock lithium source: Distributed homogeneously throughout the Earth’s crust; Lithium-Cesium-Tantalum pegmatites form in orogenic hinterlands as products of plate convergence; First-order criteria are an orogenic hinterland setting, appropriate regional metamorphic grades, and the presence of evolved granites and common granitic pegmatites; Neither lithium-cesium-tantalum pegmatites nor their parental granites are likely to cause serious environmental concerns; Traditional mining through movement and crushing of ore; Economic grades are between 1% and 2% LiO2; (source: www.tsxmedia.com ) Lithium Brines Lithium brines just salt lakes with a high proportion of the lithium element in the solution.  The mining process is a combination of concentration and evaporation.  There is no shortage of these lakes, but as usual, there are only a few that will have a geological and economic advantage. The mining process is straightforward.  Brine, typically carrying 200 to 1,400 milligrams per litre (mg/l) Li, is pumped to the surface and concentrated by evaporation in a succession of artificial ponds, each one in the chain having a greater Li concentration. After a few months to about a year, depending on climate, a concentrate of 1 to 2 per cent Li is further processed in a chemical plant to yield various end products, such as lithium carbonate and lithium metal. What makes a good Lithium Brine: arid climate; closed basin containing a playa or salar; tectonically driven subsidence; associated igneous or geothermal activity; suitable lithium source-rocks; one or more adequate aquifers; and sufficient time to concentrate a brine, economically 1 to 2 per cent LiO² achieved over time and evaporation, then considered economical for processing (source: www.tsxmedia.com ) So what happened in 2018? In 2018, it was all about the realisation that lithium is not a super commodity, it was not a commodity that is super-rare. It is like any other commodity. This “light-bulb” moment occurred for the cobalt and REE rush as well, and every other “super-commodity rush” that investors seem to think exists in the marketplace.  I am the last person to call myself a market expert, but it is strange that punters talk about reserves and resources when evaluating the stock while it runs from 2c to 55c or dollars?  How is that part of a value proposition?  Is it worth 2c or 55c a share or $2 per share :-)? When the stock comes back, they call it a miscarriage of justice and say management sucks.  How did the management go from Heros to Donkeys over the short space of time? There is no doubt that there is more demand with the EV story but the hype will also back to something that makes economic sense. It cannot sustain the sky-high pricing.  If you look at the graphs below, one can see a trend of decreasing price over the 2018 period. If you look at the price chart for Lithium, Cobalt and Nickel, you can see that they all share the same trend. More apparent for Lithium and Cobalt.  I am a Nickel and Copper bull so I am a bit surprised with Nickel coming back.  As much as I follow the commodities, I was very surprised to see cobalt come back the way it did.  Interestingly, I was not that surprised with lithium coming back. What happened to the stocks? When you look at the major players in the industry, they are all in the same place.  I like to put the lithium companies into three categories, Producers Resource Explorer In my opinion, there is no need to look at the explorers anymore as they are too late.  In reality, anything that has not been discovered or re-marketed is probably not worth looking at as the ship has well and truly sailed.  At this stage, the hard rock resources that are not developed or are near development may find themselves a steep hill too hard to climb.  For those resources, I do think that if the brine resources come into play, they are going to struggle to make money. Looking at the charts below, one can see the consistent run to a high and all at the same time came back over the year.  In my opinion, I think there is only a need to look a the top players in the sector.  There is no need to discuss the lower level companies. The market is now maturing so it is all about supply now.  Competitors are coming up, and the sooner the company deliver their product, the better. Pilbara Minerals Limited (ASX: PLS) – The first and most well known. Market Capitalisation:  1.23B Outstanding Shares: 1.744B (06/2018) Top 20 Shareholders: 48.1% When you look at the chart above, isn’t that just a very good looking chart?  Lately, when it reached the 60c mark, I was telling people that this has to be a good buy.  However, as I looked at all the participants in the lithium sector, they all had the same trend.  You could be forgiven to have felt all your Christmases had come at the same time. To me, PLS is the one that everyone compares to and they are the first to have made Western Australia a lithium region.  I know that Greenbushes and Wogina are big players too but they were really a Tantalum play.  Their unique geology is very good.  I think they produced up to 60% of the world’s tantalum and now they are a big lithium supplier as well.   I have not looked at the geology throughly but I am sure their grades are good too. There is not much to write about PLS that is not known in the public space. I just wanted to highlight the intersection to highlight why as a miner.  I don’t think there is a problem with the mine, its all about the market and how the market is repositioning itself.   You cant help to find comparisons in the industry.  The last one is the iron ore price going down to $40 and then it ran up to $100+ in six months.  Now, we are seeing the decoupling of the iron ore pricing with premium ore getting a higher pricing. In my opinion, once you have a good supply, such as the likes of PLS, all you have to wait for is the market to recalibrate. What is the future for the Lithium sector? I think the price of lithium will come back in 2019 and 2020.  It probably won’t be as high as before, and if the brine players are successful, it will be lower.  The slow down in China is making a dent in the hopes of bulls but I think with patience, these bulls will be proven correct.  Fortunately, this slowdown in China has been happening for a few years and it will not have a dramatic end. The Caixin China General manufacturing PMI fell short of expectations in November and may have spooked the markets in general but as you can see the depressing commodity pricing (in the charts above) has been showing this slow down for a long time.  The figure below also highlights that there has been a slow and steady decline all 2018 in manufacturing. The dark horse on the market will be the shadow banking issue that is happening in China.  This shadow banking issue has got to be the most crucial aspect of the world market as if this was in any other country other than China, the financial market would have felt its wrath a few years ago.  As it is a China issue, the Chinese government is orchestrating a soft landing which is probably a good thing for everyone. Xi Jinping How is this done? Why was Xi Jinping able to get his way? Well, my opinion the answer to the two questions comes from the doings of the past government.  What I mean is that the last government was too busy pocketing money to care about the consequence.  Hence when Xi Jinping came into power and “fixed it’, he was able to curtail any objections by using the “country first’ card and anyone that had not been asked to stay at home indefinitely, would not be speaking loudly.   Hence, wielding a big stick, Xi Jinping was able to control the masses and he inevitably created the path for a soft landing. In regards to the Lithium pricing, it is these happenings that give me comfort in saying that lithium will rebound with the continued improvement in the Chinese market. Solid State Batteries This battery will stabilise the lithium market as this new form of cells use less of the other component, nickel and cobalt and uses more lithium.  The solid-state battery replaces the liquid or polymer electrolyte found in current lithium batteries with a solid.  Saying that this is not proven technology as yet.  There are lots of research making this happen it is very likely that this will happen.  There is a lot of money being spent in this area and that will probably mean that the technology will make it happen. Benefits of solid-state batteries, smaller higher capacity and allow faster charging cheaper non-flammable – which is very important for car makers and the electric aeroplane sector. A US company, Saki3 , has announced that they can make a solid state battery that has twice as much density and at one-fifth the cost.  Currently, Panasonic makes Tesla’s battery at %500 a kilowatt-hour.  Sakti3 claim it can get the cost of 4100 a kilowatt-hour by the end of the decade. Interestingly. This private company was bought by the Dyson group who is on the path to building its own electric vehicles. Magnis Energy Technology Limited (ASX: MNS) Currently, there is one company in Australia that I found which seems to be in this space.   Magnis Energy Technology (ASX: MNS) is the company that has jumped on this sector.  I don’t know this company too much, but I remember them as a graphite story related company.  I stumbled onto their story while researching for this blog.  The chart fits the lithium story I guess. Market Capitalisation: 180M Outstanding Shares: 572.9M (06/2018) Top 20 shareholders: 39.8% What is the Big Issue with Solid State Batteries? As mentioned earlier, in 2015, Dyson (vacuum cleaner Dyson) invested 90M for the US start-up Sakti3 to secure their solid-state battery technology.  Recently, Dyson spent an additional 200M pound in August 2018 to set up six test driving tracks for their yet to be built electric vehicles.  There are already 400 employees in this automotive team which is in a site that is 17km in length. What is interesting is that nearly a billion pounds of investment went into this battery sector alone.  So this industry is not going anywhere.  What does this mean?  Well, companies such as Pilbara Minerals is suddenly looking cheap as they are the only one, apart from Galaxy Resources looking to be a real lithium supplier.  Mineral Resources is also another heavyweight slowly moving in with the Mount Marion project.  By the way, they also own 8% of Pilbara Minerals. Looking at the investments that are going into this product, it seems to me that the lithium sector is endorsing this path for the future of EV vehicles or EV products.  The traditional lithium batteries are also a big hindrance in the electric aircraft sector. The fact that the current Li-battery has a habit of power surging, it is a big issue for those working in the electric aeroplane space. Conclusion I think this is such a well known topic that there is nothing new that anyone could come up with at this stage.  What I tried to highlight is that the Lithium market is down now but I feel very comfortable in saying that the upside is not too far away.  I remember a wise man told me once that in any price surge, you should never chase but let it come back to a level where the market is trying to figure things out. Once that happens, the market will take a direction depending on its assessment of the product. I feel that we are at that point.  I think since the rush on the lithium market, there have only been one or two shipments of concentrates from Australia. Galaxy Resources Limited (ASX: GXY) was an early player and I do not include them in that list.  I remember working for them in 2008 and the lithium rush was nothing compared to what we have experienced in the last 2-3 years. I am not a shareholder in any of the companies listed but for those who have invested in the “blue” lithium stocks, I think there are good times ahead.  There will be alternatives ( Hydrogen Cell , Tungsten and Vanadium ) as I have written before, but there are no arguments that the lithium battery has the head start and looks like the volume may keep the competitors behind the pack. Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. www.samso.com.au If you find this article informative and useful, please help me share the information.  I try and write about topics that are interesting and have the potential to be of investment value.  It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au . About Samso

The Zinc market has been threatening to surge for the last three years but has been a non-event.  Initially, the talk started with a supply shortage and hence followed with a rush to zinc projects.  Everyone was chasing projects, and all of them had a high valuation, as it is always the case during these times.  Money was being raised easily as long as you mention zinc. Today, in 2019, there is still a feeling of anticipation for the wave to hit.  One can be forgiven to think that this is a never-ending story. What do we use Zinc for? The most common use for zinc is to galvanise metals for anti-corrosion., manufacture of brass and as an oxide for rubber manufacture and as a protective skin ointment. Anti-corrosion If anyone had listened in high school science or chemistry classes, they would have remembered that zinc is highly reactive.  When compared with steel or iron, it will preferentially attract all the oxidation (rusting) and corrode first. When the oxidation process starts, the reaction will form an oxide layer on the surface and acts as a barrier. It serves as a sacrificial lamb and can act as the anode or the cathode depending on the chemical situation. Alloys A widely used zinc alloy is brass, in which copper is alloyed with 3% to 45% zinc, depending upon the type of brass.  Brass is generally more ductile and stronger than copper and has superior corrosion resistance. These properties make it useful in communication equipment, hardware, musical instruments, and water valves. Other Industries Zinc oxide White pigment in paints and as a catalyst in the manufacture of rubber to disburse heat. Protect rubber polymers and plastics from ultraviolet radiation (UV). The semiconductor properties of zinc oxide make it in varistors and photocopying products. The zinc-oxide cycle is a two step thermochemical process based on zinc and zinc oxide for hydrogen production. Zinc Chloride Added to lumber as a fire retardant, and sometimes as a wood preservative. They are used to manufacture other chemicals. Zinc Sulfide and Sulfate Used in luminescent pigments such as hands of clocks, x-ray and TV screens and luminous paints. Used as lasers Dyes and pigments Antifouling paints. There are several other uses of zinc compounds as described in  Wikipedia . Where do we find Zinc? The typical resource-rich regions of China,  Australia and South America are the major producers of zinc.  Interestingly, in the 1960s, Ireland was a world-ranked producer of zinc-lead mines.  There were up to 6 producing mines and no less than 15 significant discoveries.  One of the largest zinc mines in Europe is the Tara mine in Ireland.  Tara was established in 1977 and is currently at a depth of 1km below the surface.  It was discovered in 1970 and is a zinc and lead deposit.  The initial resource was 7oMT at a grade of 10.1% Zn and 2.6% Pb (source: Boliden ).  In 2017, 2.3MT of ore were processed into metal concentrates containing, zinc, lead and silver (source: Boliden ). I learned this fact several years ago when there was a swag of Irish Zinc projects popping up. Who are the primary producers? According to Mining.com, the top 5 Mines ranked by 2017 Annual Production are as follows, Red Dog (Alaska, USA) – Teck Resources Rampura Agucha (India) – Vedanta Antamina (Peru) –  BHP/Glencore/Teck McArthur River Mine (NT, Australia) – Glencore Penasquito (Mexico) – Goldcorp According to Zinc Investing News ,  the three largest zinc producing regions are, Rampura Agucha (Indio) with 2017 production of  619,981 tonnes of zinc concentrate and 92,228 tonnes of lead concentrate. Red Dog mine (Alaska, USA) accounts for 5 percent of global zinc mine production.  In 2017, the mine produced 542,000 tonnes of zinc concentrate.  The company estimate that in 2018 it will produce 663,000 tonnes of zinc concentrates. Mount Isa Mines in Australia produced 226,000 in 2017 (a reduction of 22%). World Consumption The annual global consumption for zinc is about 14.1MT.  If we take the calculations from the above, the three largest mines in the world are producing just under 2M tonnes.  The largest zinc mine in Europe is producing about 200,000 tonnes per year so one would not be wrong in thinking that there may be a shortage soon.  According to Mining Intelligence (source: Mining.com ), the top five producers make up to 40% of the total zinc production. Based on the rough figures that I have quoted, my pure mathematics tells me that the other 60% will produce 3MT?  I think something is not correct :-). What is the Price of Zinc doing? The news on commodities is not looking good currently. The last manufacturing data from China clearly show that there is going to be a slowdown on products, which is not good news to most investors.  However, the upside is the Chinese government is being proactive in stimulating the economy, but the trade war between the US and China has not helped.  The recent announcement of tax cuts is a good sign that Beijing is making it known that things will not go south and that it is sorting out the current issues.  For the commodity market in general, all this is not helping the companies that are promoting an upside shortly. According to a report on CNBC , the outlook for Zinc is mixed.  Inventories are down, and the technical view is bearish.  The market feels that the decreasing demand is now controlling the market rather than a simple order vs supply concept.  The slowing China market is the primary driver. I would suspect that the decreasing outlook for commodities is going to bring more supply to the market.  The projects which were being held up with a buoyant market by “red-tape’ will now be loosening those barriers so to increase their fortunes.  In minerals, the lack of a cohesive front to control such matters have always made mineral pricing so much more volatile, unlike the oil and gas participants. I am not convinced that the turn around is near as China is now reaching First World Problems od rising wages and increasing administrative hurdles. The thinking that a central government is going to prop the economy up and have this unlimited use of money is now a thing of the past.  What I have heard over the last few years is the retail sector in the second tier and below cities are entirely kaput.  There is still money being used internally to buy things, but the credit control is hurting investors.  Investors internally are too scared to spend, and when they do want to spend on investments, the returns are no longer attractive.  Those that are outside the Chinese Wall are now not able to access their funds as that flow of capital is now virtually closed. Conclusion The anticipation of a market to run is premature or “publicised” without a thorough understanding of the parameters involved to sustain the economics.  Like the tungsten market in 2012 and 2013, I was marketing our tungsten project.  I could see the pricing being buoyant, but I could not understand how it could be sustained with those parameters. There appeared a rush for the product, but when I researched the fundamentals, I started to note some issue.  One of the problems was the lack of transparency with pricing and why China who reports a vast resource was a nett importer of concentrates.  If China had a lot of resources, why is there a squeeze on the price?  Typical demand vs supply fundamentals would show that supply way exceeds demand. In the case of zinc, I can see that there is a shortage coming, but there does not appear to be a clear path of supply shortages.  The projects in the pipeline in some instances seem to be sufficient for any increased consumption.  Price may still rise, but I think pricing will find an equilibrium that will sustain future pricing. I hope this gives an overview of why the Zinc market did not flourish and help interested readers have a better understanding of the zinc market.  If you need someone to help get your message across to your clients or intended audience or require some research on products or business development, please give Samso a call or send us an email at noel.ong@samso.com.au Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. 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