A roadmap for green metals in 2024

February 20, 2024

Last year was a bloodbath for mining stocks tied to the green energy transition. But with markets rallying in the early part of 2024, ‘green miners’ continue to lag.


Unfortunately, that doesn’t bode well for a sharp turnaround in 2024. Dampening that outlook further is the string of negative news over the last week.


Mining billionaire Andrew Forests’ privately owned Wyloo Metals announced a shutdown of its nickel operations in Western Australia due to falling prices. Lithium giant Albemarle (NYSE: ALB) revealed job cuts and a trimming of its capital expenditure. It also unloaded its stake in Liontown (ASX: LTR) after last years’ failed takeover bid. LTR’s stock price has now plunged more than 44% since the new year.


Even the insiders have lost faith. Pilbara Minerals (ASX: PLS) CEO, Dale Henderson, sold around 1.2 million shares following the company’s latest earnings result.


But to get a handle on what 2024 looks like, we should first clarify why green metal stocks sold down so heavily in 2023.


You see, mega renewable energy projects are expensive. So too are the mining developments which supply the raw materials for these metal intensive projects. Given we’ve just embarked on one of the most hawkish monetary regimes in modern history, it explains why the sector plummeted last year.


But according to the former chief of commodities at Goldman Sachs, Jeff Currie, ‘green’ metals could return with a vengeance this year. That’s based primarily on expected rate cuts.


You see, rising rates have diminished the public’s appetite for extravagant renewable mega-projects. It’s perhaps one of the reasons why crude came back into focus last year. Fossil fuels are energy dense, making them a relatively cheap option. We could also add uranium to the list, another energy-packed commodity that can supply reliable, base load power.


But the key point from Currie is this: in a high-cost environment, traditional energies reign. He labels them the ‘brown’ commodities.


So why could 2024 see a major pivot back to ‘green’ metals?


It’s simple really. The idea of capital-intensive green energy projects becomes a difficult pill to swallow in an economy struggling against the rising cost of living.


This observation seems rather obvious in hindsight, just look at 2023. As the narrative of ‘higher for longer’ took effect last year, Brent crude surged to $94 per barrel and uranium erupted into multi-year highs.


Meanwhile, metals tied to the green energy transition like lithium, rare earths, and graphite, fell through the floor, eliminating most of the gains that emerged during the early 2020s.


But, with rate cuts looming, could the narrative from 2023 make a dramatic U-turn? In other words, will investment flood out of the brown commodities back toward the green? It’s certainly possible.


We saw oil and gas stocks tumble in the final weeks of 2023 as expectations of rate cuts grew in the US. Large-cap lithium producers then (briefly) emerged from heavily sold-off levels.


But don’t expect a smooth recovery in the green metal market. We’re living through a period of historically elevated geopolitical tension.


Right now, the Middle East conflict is ripe for escalation. That means crude oil prices could erupt, bringing an inflationary spike.


We’ve already seen several prominent shipping companies divert vessels away from the Red Sea following attacks in December by the Houthis in Yemen on foreign cargo vessels and oil tankers.


With ships re-routing around the Cape of Good Hope, on the southern tip of Africa, delivery times have increased by up to two weeks. With that comes higher freight costs and more inflationary pressures on the global economy.


Geopolitics is a key reason why we could see a continuation of the arm wrestle between inflation versus deflation this year. There’s no clear path that signals one will win over the other.


But despite the geopolitical risks, there are potentially huge opportunities on offer.


According to the Economist, 2024 is set to be the biggest election year in history. Almost half the world’s population is lining up to vote, from India to the US. This is going to be a colossal year in politics. With incumbent governments looking to extend their time in office, expect extravagant infrastructure announcements this year. Renewables could be a major focus.


So, how do you prepare a portfolio for potential boom conditions in a year that promises plenty of geo-and-political instability? Focus on beaten-down sectors. As Rick Rule says, you’re either a contrarian or a victim.


Right now, green metals have lost their flavour. But that could offer ripe pickings for investors betting against the herd.





Source: https://www.mining.com/a-roadmap-for-green-metals-in-2024/

July 8, 2024
Dendra has evolved its aerial seeding technology to the point that it can cover up to 44 hectares per day – a 10-fold increase in just a decade. The Australian mining industry is beginning to understand the gravity of the environmental, social and governance (ESG) movement and what it means for a company’s bottom line. Regulators, investors and other stakeholders are increasingly taking ESG into account when making decisions that affect a mine’s financing and development. Dendra is enabling ESG compliance in the local resources sector by empowering miners and contractors to implement better ecosystem-restoration practices, leading to improved land treatment and relationships with Traditional Owners. As an important component of ecosystem restoration, aerial seeding sees drone fleets disperse various seed types and combinations onto disused mining areas, providing the foundation for ecosystem restoration, reducing erosion hazards, and suppressing the growth of invasive plant species. Aerial seeding usurps traditional ‘boots-on-the-ground’ methods, with drones able to seed larger and harder-to-access areas faster. In fact, Dendra is able to seed up to 44 hectares per day through its current aerial seeding processes – a 10-fold scale increase from a decade ago. Dendra has not only been able to expand the scale of its offerings but also improve the quality of its technology to handle a wider range of seed types. “In Australia, seed types range from grains to grass and everything in between,” Dendra engineering group manager Ashwin Chandrasekaran told Australian Mining. “This is where Dendra comes in – we’ve pioneered new technology that can help spread far more fibrous and difficult seed types. And we do this with a focus on operational safety and efficiency.” Dendra Australia engineering manager Alec Lewandowski said Dendra’s technology is ever evolving. “We are always adapting our system to new seed types,” he told Australian Mining. “When we receive a seed that’s outside of our capability, we perform some R&D (research and development) and get the system working again to a good level. “This is a testament to how our company works; no matter the customer request, we push to make it work.” Dendra sees new capabilities entering the drone technology sector all the time. It’s one thing to adopt a new technology, but it’s another thing to adapt it. “Every year new aircraft enters the market that has more agility or carries heavier weights,” Chandrasekaran said. “Dendra builds a system that can adapt to these aircraft. Just because an aircraft can carry ‘X’ amount of weight doesn’t mean it is better, because you still need to be able to accurately disperse a certain amount of seed per hectare.” The continued expansion of Dendra’s aerial seeding solution reflects both the growth of drone technology over the years and the company’s ability to evolve with that growth and tailor its solutions to current environmental needs. Chandrasekaran said when a mining customer in Western Australia requested its mining operation be seeded by “one of Australia’s most difficult seed types”, Dendra went to work. “The first time we saw the seed, we instantly knew it was going to be a difficult seed to work with; the seed could be compared to a bale of hay,” he said. “But we quickly made some modifications to our system and patented a new technology that focuses on how different seed types can efficiently pass through our system. “We’ve been able to improve our technology little by little, making it more and more efficient, and we’re now at the stage where we’re doing an extensive project. “We started aerial seeding about five hectares for this client. This year we’ll be doing 500 hectares.” Dendra has achieved greater scale and scope with its aerial seeding solution. The company is also changing the way undulating and difficult-to-access terrains can be rehabilitated. “Much of the mining environment is very treacherous terrain – it’s rarely flat,” Chandrasekaran said. “While traditional methods often involve trucks, tractors or teams of people on ground manually completing seeding tasks, this is not possible or safe in many mining landscapes. “This is where our aerial solution comes into effect. There is no terrain we cannot seed, which means we can easily scale because we only need to add more aircraft to increase the size of the area we’re trying to spread. “And even if the terrain is accessible, if you consider the cost per hectare, buying another drone is a lot more economical than buying another tractor to seed the same area.” Dendra makes seeding simple, with the mobility of its unmanned aerial vehicles (UAVs) meaning solutions can be quickly mobilised to a mine site. “Some of the mine sites we work with are so remote that it isn’t always practical to get machinery on-site in a short space of time,” Chandrasekaran said. “But we’re able to quickly deploy our UAVs, go out and complete hundreds of hectares of seeding over a couple of weeks. “We’re efficient, we’re safe, and we’re fully capable of being able to deliver seeding solutions at scale in a short period of time, which saves mining companies a lot of time and money.” While Dendra has already achieved so much with its aerial seeding solution, there is so much more potential for this technology to grow and evolve. Lewandowski said the company is always pushing to achieve greater volume. “The more volume an aircraft can hold, the more seeds you can hold in one flight,” he said. “This means less fly backs, less filling up of the aircraft, which means more spread and more hectares covered per day.” Dendra has a passion for technology and a passion for the environment, two critical linchpins in determining the mining sector’s ESG future.  And as Dendra establishes a stronger presence in the Australian mining sector, the company will continue to drive greater innovation and unearth safer, more efficient and more cost-effective ecosystem restoration practices. Source: https://www.australianmining.com.au/inspired-tech-and-faster-rehabilitation/
July 4, 2024
The MagneW PLUS+ electromagnetic flowmeters from Azbil Corporation are designed to measure every sort of liquid, including water, chemicals, slurries, and corrosive liquids. The standard model has a mirror-smooth PFA (perfluoroalkoxy) liner for excellent adhesion resistance that enables outstanding durability even in long-term use. It is available in an integrated type and a remote type and can be used in a wide range of settings, including explosion-proof and outdoor environments. The Azbil magnetic flowmeters offer the following features: Improved performance and greater stability Suppression of flow noise is 3.5 times that of the conventional model for excellent stability in the presence of noise. Achieves more reliable measurement in individual applications through features such as an excitation frequency change function, an optional auto spike cutoff setting, travel averaging, and manual zero adjustment. Improved factory data memory function to facilitate checking after shipment In addition to the serial number and production date on the product tag plate at shipment, the human machine interface enables checking in maintenance mode. Statuses that may be difficult to read on the product tag plate are backed up as electronic data. High-speed batch function for batch applications A high-speed response function with a damping time constant of 0.1 second can be selected as an option. This enables compatibility with high-speed batch applications, allowing use with a pulse frequency of up to 3000 hertz. Compatible with HART and CommPad communicators as a standard feature Communication with CommPad is supported as in previous models. Communication superimposed on the analogue signal can be used by selecting the HART communicator function.  For further information, contact AMS Instrumentation & Calibration , Azbil’s Australian distributor. Source: https://www.australianmining.com.au/introducing-azbils-new-electromagnetic-flowmeters/