5 top power metals stocks fueling the electric vehicle explosion … · 2018-02-17 · 2 5 top...

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5 Top “Power Metals” Stocks Fueling the Electric Vehicle Explosion

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On June 12, 2017 the International Energy Administration announced the two millionth fully electric vehicle (EV) hit the road. The watershed announcement signaled to any investor doubting the EV boom that it is here to stay, and it’s time to invest accordingly. EV’s really are the future. EV technology is getting better. The distance they can travel is getting farther. And the prices are coming down. What you’re witnessing is the preliminary stages of the greatest shake-up in the $1.7 trillion a year global auto industry since Henry Ford introduced the assembly line. There are literally trillions of dollars to be made from the rise of the electric vehicle (EV). Despite all the improvements in EVs and market growth already, the EV industry still has a major problem. A problem that’s sparking a major “arms race” for critical natural resources to make the millions of batteries required to power the EV boom. Check this out. Last year the auto industry produced 72 million new cars and trucks. Less than two million of these were either a hybrid electric vehicle (HEV) or a full out EV with no combustion engine at all. That means less than 3 out of every 100 autos produced last year had a battery power source. But that’s changing fast and millions of new EVs are coming to market. The chart below shows the growth potential of EVs in the years ahead:

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There’s staggering growth ahead. More importantly, even though there are now two million EVs on the road, that’s nothing compared to what’s coming. And that’s why I’m targeting the providers of the metals essential to make EV batteries and other components -- which I call “Power Metals” -- for major gains in the months and years ahead. Take lithium for example. Lithium is an essential component in EV batteries. In the last two years the market price for raw lithium has jumped more than 200%. It has sparked a global race for lithium driving lithium miners up around the world. That’s a great run. Here’s the thing though...lithium is just one component in the EV battery boom. There are a handful of other metals just as essential as lithium whose prices have just started to run. And there’s just as big an opportunity to buy into them early too.

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In this report you’re going to get everything you need to capitalize on the Power Metals boom including:

1. - Battery Basics: The essential materials in today’s electric vehicle batteries

2. - How demand is rising exponentially for each of those materials 3. - Why prices are up 110% or more in these metals AND there’s much more

to come 4. - How the exact same situation played out for one critical automotive metal

to deliver 1200% gains 5. - The 5 “Power Metal” companies perfectly positioned to capitalize on them

all 6. - BONUS: How History’s Richest Men Parlayed Big Trends like auto

batteries into fortunes (even Rockefeller and Carnegie have got nothing on these guys)

There’s a lot to go over here. However, once you’re done this comprehensive report, you’ll have everything you need to capitalize on this exponential growth opportunity.

The Coming Electric Vehicle Explosion

It all starts with EVs. EVs have been steadily coming for over a decade. They’re about to explode too.

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You’ve surely seen a few Tesla cars driving around. But to truly understand the scope of the EV boom you’ve got to look globally. The chart below really breaks down the future of electric vehicle sales on a geographic basis:

Earlier you saw the scale of the EV boom, here you can see the global nature of it all and how EVs are on the verge of exploding around the world. This is important because it shows the massive new investments in all the parts of the EV supply chains to meet accelerating EV demand in the years ahead. And it’s the supply chain where I believe the fortunes will be made because, in many cases, these small sectors must grow exponentially in the years ahead. You see, EVs seem a lot like regular internal combustion-powered cars from the outside. Behind the sleek exteriors though, EVs are significantly different. A regular car today can contain easily 18,000 separate parts. There are wheels and doors, but there are also thousands of screws and small components that make a modern car extremely reliable. EVs share just two-thirds of the components of traditional internal combustion autos. The wheels and the door panels are similar. But underneath the exterior almost everything is different. The heart of each EV is the battery and everything unique about the EV builds out from there. EVs have specialized brakes which act as electric generators that produce electricity from the braking force and return it to the battery. Also, EVs don’t have traditional transmissions with all those gears. They have separate drivetrains which transform electricity into power without all the gearing of a transmission. There’s also extensive wiring needed to make sure all these components work together. The average EV contains 55 pounds of copper, much of that in wiring. If you look at your computer electricity cord, it contains a few ounces of copper wire. The same cord would have to stretch to 1,490 feet (nearly a quarter of a mile) to use 55 pounds of copper like the electrical system of an EV. So much EV’s are new and unique and the growth of the EV is causing demand to surge for several metals to build all these EVs. As a result, these “Power Metals” are going to experience surging demand in the coming years.

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Currently, however, there just isn’t enough supply of Power Metals to meet the demand and the supply/demand imbalance is only going to get worse. In short, Power Metal demand is going up, supply is lagging, and it’s a good bet prices are going up… way up. Just look at the individual Power Metals too see how EV-driven demand for them could send their prices soaring and the value of the companies which produce Power Metals up massively right along with them.

Power Metals: The Basics

Power Metals are the metals contained in the battery and throughout the EV which make EVs work. The largest Power Metal demand will come from the battery. The most efficient and cost-effective battery available today is the Lithium-ion battery. This is the same type of battery which has been used in mobile phones for the past 20 years or so. The battery in a mobile phone and an EV are very similar, the only difference is the EV’s lithium-ion battery is just much, much bigger. And it’s a lithium-ion battery that uses a lot of lithium, but it requires many other metals too. Those metals include lithium as well as nickel and cobalt. These metals are essential to making lithium ion batteries work. Of course, an EV is more than just a battery. As mentioned above, a normal EV contains 55 pounds of copper in each car. So, copper’s demand is spiking due to electric vehicles’ need for this Power Metal. There’s also the brakes in EVs. They are mini electric generators which turn the forces of the slowing car back into electricity. These are dependent upon magnets which require a group of Power Metals called rare earth elements. These metals are going to see demand soar right along with the EV boom. To get an idea of the level of demand coming to these Power Metals just look at the chart below which features a couple of them:

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That’s exceptional demand. Millions and millions of tons of these critical Power Metals is essential to meeting EV growth. And it’s already having an individual impact on each. Let’s look at a few specific Power Metals to see the supply and demand situation shaping up in each and why prices for these critical metals have started to move up.

Power Metal #1: Lithium

Lithium is the essential ingredient in lithium-ion batteries. It’s going to take literally millions of tons of lithium to power the EV explosion. Consider this. A mid-range Tesla Model S has a 70kwh battery pack which contains more than 63 kilograms (or 139 pounds) of lithium. That’s just one car. So, every 15 Tesla’s that roll off the production line equal one complete ton of lithium required to make them. Now, if we extrapolate that number out over the 750,000 EVs, we’re looking at 30,000 tons of new lithium required.

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And that doesn’t include EV sales doubling and tripling over the next few years on their way to a 40x increase. It also doesn’t include the hybrid-electric vehicles which have sizeable batteries of their own. Add it all up and you’re looking at a lithium market which must double or triple in size fast just to keep up with demand. As you might expect, with demand soaring lithium prices are starting to move. Lithium isn’t a widely traded commodity like oil, so prices aren’t very transparent and real-time data is often a “trade secret” among lithium miners and end users. However, we do know one thing, lithium prices have moved up big time in the last couple of years. The chart below shows exactly what has happened to the price of lithium:

The trend is clear. Lithium prices are up big in the earliest of stage of the EV boom. The next few legs of EV growth could push lithium prices even higher. Later, below I’ll show you the best way to capitalize on the lithium price boom. Right now, I want to show you the next Power Metal.

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Power Metal #2: Cobalt

Cobalt is an essential metal in EV batteries too. It’s not in the name of the battery like lithium is, so not as many investors know about it. That’s changing fast. Metals researchers explain the

Cobalt supply remains restricted.

Although traded on the London Metal Exchange, it is hard to access supply. Production is largely a byproduct of other metals such as nickel, so it is hard to get financing for projects based on cobalt prices, despite the recent spike.

The metal also comes nearly exclusively from the Democratic Republic of Congo, which brings with it significant supply risk, given issues around mining practice, including child labor.

That’s a dangerous mix. You have both short supply and potential risks to the already insufficient cobalt supply source. It’s a good situation that could turn into a great one. And it’s already happening. Cobalt has been in oversupply for years. There has been too much cobalt and not enough demand. The growth of the EV market, however, creates an insatiable appetite for cobalt. Last year the EV market accounted for 42% of cobalt consumption. As EV sales boom, cobalt prices could explode. The chart below shows the enormous impact lithium-ion batteries are going to have on cobalt demand:

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The chart below shows the cobalt price over the last few years as it has gone from oversupply and has just crept into undersupply:

The impact of EV demand is clear right there. Investors around the world have started to chase cobalt and I’ll show you the best way to get in on cobalt with a company that virtually controls the entire cobalt market. They’re going to be winners either way.

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Power Metal #3: Copper

Copper is the next Power Metal. Copper isn’t like lithium or cobalt and used mainly in batteries. Copper is used in everything. Basically, anything electronic -- from a refrigerator in your home to the massive electric turbine in the Hoover Dam -- has enormous amounts of copper in it. Copper is a huge industry with exceptionally bright prospects. Now, I could tell you India’s renewed infrastructure construction boom, China’s ongoing infrastructure buildout, or the global drive towards carbonization and the massive electrical requirements of renewable energy sources as future drivers of copper demand. I could tell you about all those and I would be right. However, I’ll let someone who has literally made billions of dollars off copper (and remains highly invested in copper) tell you. Robert Friedland is a mining magnate whose company discovered and developed one of the world’s largest copper mine in Mongolia. He told a conference in Hong Kong:

The era of electric vehicles is dawning.

This change is coming at you so fast – the only reason you don’t know about it is that the mining industry is populated by stupid people like me.

But there’s only one commodity that benefits from the evolution of technology.

Copper.

Don’t worry about the copper price today.

You’re really going to feel it bite you on the derriere by 2021.

You’re going to need a telescope to see the copper price in 2021!

He’s got a point on the demand side of copper. The thing is though the supply side of the copper equation is facing a significant problem too.

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Researchers at Wood Mackenzie project the average grade of copper mines is in a structural decline:

Lower copper grade mines mean costs per pound of production go up and the price must go up too. That’s what has been happening for a long time. The chart below shows copper prices over the past 15 years:

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Although copper prices have been volatile, the long-term trend is up. Right now, copper prices are coming out a major dip and opportunities to get in when copper is temporarily out of favor are open. Later, I’ll show you a copper company with one of the largest copper discoveries on the planet. Well, technically, it doesn’t have one of the largest copper discoveries...it has three of them. It’s got the potential to be a big winner if copper prices hold steady. When copper prices rise, the potential gains are exponential. It’s a true gem. First though, there’s one more Power Metal situation you’ve got to see.

Power Metal #4: Rare Earth Elements

The final Power Metal is a group of metals. They’re called Rare Earth Elements, or simple REEs. Rare earths are a group of 17 metals. They’re highlighted on the periodic table below. If you’ve been around the commodities and metals markets as long as I have, you’ll recall REE’s. They were in a massive bubble back in 2011. They took the financial world by storm. However, at the time, they were just a “story” that caught fire. It was a good story… REEs are essential to modern life from military technology to microchips. China accounts for 80% of global REE production.

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And “evil” China could clamp down on REE production and squeeze the rest of the world in a multi-billion dollar political and resource power play. It never happened and REEs faded out of favor just as fast as they came in. A lot has happened in the six years since then. I’ll take just one REE, dysprosium, to show you why it’s finally time to get in on REEs. Dysprosium is a REE that’s used in the type of magnets required to produce electricity. That means dysprosium is an essential element in power plants, but it’s also required for the magnets in EV brakes to turn deceleration into electricity and extend the driving distance of EVs. The price chart of dysprosium shows what has happened since the REE bubble popped: The chart is ugly. No way around it. However, that’s exactly what make REEs so attractive.

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Investors are still licking wounds from the REE bubble in 2011. No investor wants anything to do with them. Meanwhile, millions of EVs are going to require REEs like dysprosium. It’s the perfect combination and I’ve got the dominant REE company in the world for you. It’s so strong it survived the REE bubble and bust which dozens of other REE companies failed. If it’s doing OK when REEs are in terrible shape, it will be a superstar as REEs rebound. Before I get into my top Power Metal the recommendations though, I want to go over a couple more things with you, so you get a firm handle on this. First, you’ve got to see why I’m so confident the Power Metals boom is imminent.

The Time to Get in Power Metals Is NOW

If you want to know why the time to bet on Power Metals is right now, just look at what Tesla is up to and how it’s just a fraction of the EV boom. Don’t get me wrong, Tesla has done exceptionally well. It’s a fast-growing company which will have gone from nothing to the verge of 300,000 vehicles in production, and it will do it all in about a decade’s time. At this point Tesla has outgrown the battery suppliers it relied upon to get where it is today, and it has started its own battery production facility. Tesla is calling this battery factory a Gigafactory.

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The Gigafactory is a massive undertaking with a projected capital cost of $5 billion and will eventually encompass 5.8 million square feet of space. Tesla has partnered with Panasonic to build it in the Nevada desert. Here’s a picture of it:

This picture is just the first stage of the Gigafactory which came online in January 2017. There are still two more phases of construction to complete. Once complete, the Gigafactory will be able to produce the batteries for 500,000 Tesla EVs. It’s a big deal that’s having a noticeable impact on the lithium and cobalt supplies around the world. It’s got a lot of attention too though. Tesla has a PR machine and the Gigafactory gets so much press. However, there’s something few people realize about the Gigafactory. That thing is the Gigafactory isn’t really all that impressive when compared to the battery factory buildout in the rest of the world. The Gigafactory is a drop in the proverbial global EV battery bucket. According to the Clean Energy Manufacturing Analysis Center, 88% of the world’s EV batteries come from China, South Korea, and Japan. The way things are looking, those countries will maintain that dominance.

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For example, Contemporary Amperex Technology Ltd., a Chinese company, is building out a battery factory 1.5 times larger than the Gigafactory. It’s not the only Chinese company building up battery plants. When you add up all the Chinese battery plant construction underway you will see that Chinese production in 2020 will be more than 7 times larger than the Gigafactory. And again, that’s just China. Germany has its own Gigafactory. Daimler, the maker of Mercedes, is building its own “Gigafactory” south of Berlin as part of an $11 billion investment in EVs. Then there’s Japan and South Korea too. All told, battery capacity will be 10 times Tesla’s Gigafactory when it’s complete. Global battery capacity will have to be that big to keep up with demand. Best of all though, they’re going to need to consume vast amounts of all the Power Metals you’ve already learned about. The demand will multiply many times over as these new factories come online. And investors buying into Power Metals now will make fortunes. Here’s how a comparable situation in the auto world happened before and then we’ll get into the best Power Metal stocks on the market today.

Minor Change in Auto Industry… Early Investors Walk Away With 1200% Profits

The auto industry is one of the best for investors because it’s so big even a modest change can reverberate massively throughout the world. The current switch to electric vehicles is creating boundless opportunities in the “picks and shovels” which will make electric vehicles standard throughout the world. The beauty of changes in the auto industry is that they are magnified many times over throughout the world. The U.S. cranks out about 18 million new car sales each year. Globally 72 million new cars were produced and sold in 2016. So, a single innovation can be applied millions of times over in the auto industry.

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That’s why the story of the catalytic converter -- and the fortunes it created -- shows why the auto industry innovations are a top place to watch. A catalytic converter is one of the simplest, most elegant auto innovations of the last 50 years. It was first developed in the early 1970s. There are no moving parts. It takes up no energy. And yet it reduces automotive exhaust pollution including nitrogen oxide, carbon monoxide, and other harmful gases produced in the burning of fuel in the engine by about 50%. The image below is a catalytic converter from a Ford truck:

As you can see, there’s not much to it from the outside. Inside it’s all chemically driven. Inside of it you’ll find chemical catalysts. One of the world’s top chemical catalysts is platinum. Platinum is an essential metal in so many chemical processes. Basically, gasoline would be much more expensive, and cost two or three times more than it does without platinum. Platinum was also the first metal used in the catalytic converter.

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The platinum component was the major problem with it. About 68% of the world’s platinum production comes from South African mines. Most of these mines are a mile underground and take years to develop at a cost of billions of dollars each. In other words, platinum is expensive to produce and buy. In the 1980s, researchers at Ford began to develop alternatives to platinum. What they discovered was palladium did just a good a job at a fraction of the price. As catalytic converters containing palladium with the platinum were introduced in the late 1990s the costs were cut drastically. Back in 2000 the cost of an ounce of palladium was just about $100, or about one fifth the cost of platinum which averaged about $500 an ounce. Of course, the new demand from this single innovation and its ongoing adoption in the tens of millions of cars produced each year would change all that. By 2007 the price of palladium had exploded to $800 an ounce. The shares of companies which were able to produce palladium soared. For example, Platinum Group Metals, a platinum and palladium miner in South Africa, watch its shares climb from $3.50 in 2001 to a high of $45.50 in 2007. Basically, investors had the chance to make up to 1200% on this one single innovation because it was applied millions of times over in auto industry. Now it’s all set to happen again with Power Metals. The only difference is the EV boom is on an exponentially larger scale. The potential profits could be larger than the 1200% too.

Top Power Metals Stocks to Buy Now

The best way to capitalize on the EV boom is with Power Metals. The best way to get in on Power Metals is with the companies which directly profit from increased demand and rising prices for the Power Metals. Here are my top five Power Metals stocks in that position:

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“Power Metals” Play #1:

Global Cobalt King

Cobalt is one of the most attractive Power Metals to buy into now. The run in cobalt prices is just starting to move. The present is bright… The future for cobalt is blinding. As a result, the best way to capitalize is with Glencore PLC (OTCMKTS: GLNCY). Glencore is the world’s largest cobalt producer. It has many copper mines in the Democratic Republic of Congo (DRC). The DRC is the home of the world’s highest-grade copper and cobalt mines in the world. The African nation produces 66,000 tons of cobalt a year. That’s more than the next nine largest cobalt producing countries put together. It’s also one of the rare places that can increase cobalt production too. The DRC’s cobalt production increased 5% last year. The problem is it’s a political mess and child labor is used to produce enough of the copper and cobalt to make it a PR mess too. Glencore has successfully operated there for years though due in part to its, let’s say, sordid history. Glencore is the modern version of Marc Rich’s company. Rich, you may recall, is the American commodities trader who moved to Switzerland in the 1970s and started trading oil between Iran and Apartheid South Africa. He was also pardoned by President Bill Clinton on Clinton’s last day in office. Glencore still engages in a lot of commodities trading too. In fact, it’s not just a major cobalt producer, it’s also the world’s largest cobalt trader. Basically, Glencore is as close as you’ll find to a company that controls the world’s cobalt supply. It’s moving to maintain its cobalt dominance and benefit from the EV-driven cobalt boom too.

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In 2015 it produced 19,400 tonnes of cobalt which is about one-fifth of the world’s supply. In 2016 it managed to ramp up cobalt production 26% to 24,500 tonnes. And it’s targeting a record higher than that this year. Glencore is a pretty big company with a current market cap of $67 billion. However, even though it’s big, cobalt prices have an enormous impact on its bottom line. Every $1 move in the price of a pound of cobalt can add $70 million in earnings. If cobalt doubles or triples like it could, that’s going to magnify earnings and Glencore’s share price. Glencore trades primarily on the London Stock Exchange and the simplest way for North American investors to buy Glencore shares is through its U.S. listing GLNCY.

Company Snapshot:

Name: Glencore PLC U.S. Listing: GLNCY Market Cap: $67 billion Learn More: www.glencore.com

Power Metals Play #2:

Emerging Leader In “Lithium Triangle”

Reporter: Why do you rob banks?

Willie Sutton (a notorious bank robber): Because that’s where the money’s at.

The thinking is simple and elegant. The same thinking should be applies natural resources too. Especially lithium. If you want to invest in lithium, you go where the lithium is at. Specifically, the purest, largest deposits of lithium. To do that you have to go to the “Lithium Triangle.”

http://www.glencore.com/

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The Lithium Triangle is made up of Argentina, Chile, and Bolivia which control half of the world’s lithium reserves. All three countries are right along the Andes Mountain range and have part of the massive “salt flats” in the area around South America. Underneath these dried lake beds are the world’s largest lithium-containing brines. The way the lithium is mined in the Lithium Triangle can’t be beat anywhere else in the world. The first step involves pumping the brine solution out of the ground. Then spreading it in drying beds. The process involves letting the sun evaporate the brine solution. Then they go in and scoop up the salts left over after the water in the water part of the brine evaporated, process, and sell them. It’s a very low-cost model and it’s why this part of the world can’t be beat for lithium production. And its why Sociedad Quimica y Minera de Chile (NYSE: SQM) is my top lithium recommendation. SQM one of the largest lithium mining companies within the Lithium Triangle. It’s in Chile, which is the most politically conducive mining country compared to other Triangle countries Bolivia (socialist) and Argentina (perpetual basket case). SQM is also jumping at the lithium explosion opportunity. It has laid out plans to increase its lithium production from 48,000 tonnes per year to 63,000 tonnes. A 30% expansion coupled with a rising lithium price could produce explosive gains for its shares.

Company Snapshot:

Name: Sociedad Quimica y Minera de Chile U.S. Listing: SQM Market Cap: $14 billion Learn More: www.sqm.com

http://www.sqm.com/

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Three World Class Copper Discoveries for The Price of One

My top copper stock is spinning out value in all sorts of ways. The stock is Ivanhoe Mines (OTCMKTS: IVPAF) and it’s on its way to be a Power Metals powerhouse. The company was created by mining magnate Robert Friedland. This is his “next” company in a long succession of major success stories. It’s currently in the second phase of the process which has minted Friedland and his investors tens of billions of dollars over the years. The three steps are mineral discovery, exploration and development, and eventual sales to mining majors. Ivanhoe Mines has already made the discovery of a major mineral deposit, it’s now exploring to expand and prove their mining viability. Well, I say “discovery.” I mean “discoveries” because the foundation of Ivanhoe Mines is actually three huge mineral deposits. The first deposit is Kamoa-Kakula in the Democratic Republic of Congo (DRC). The sheer scale of the Kamoa-Kakula puts Ivanhoe on par with some of the world’s largest and most successful copper companies. So far exploration efforts on Kamoa-Kakula have dug up an estimated resource amount that makes Kamoa-Kakula the fifth largest copper deposit in the world. The latest estimates put the total copper contained in Kamoa-Kakula at more than 70 billion pounds. At $3 a pound copper, that’s $210 billion worth of contained metal. It’s staggering in its own right, but it’s just part of the story. The Kamoa-Kakula deposit has two names because it is two separate copper discoveries. Kamoa and Kakula are about three kilometers apart from each other. Ivanhoe is currently drilling the area in between the two.

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If the two deposits do connect the total size of Kamoa-Kakula could increase another 50%. The Kamoa-Kakula alone makes Ivanhoe an excellent value, but the Kamoa-Kakula is not alone. The second deposit is Kipushi in the DRC. Kipushi is a world-class zinc deposit that was once mined and is currently being recommissioned by Ivanhoe. When Kipushi is brought back to full production it will be the seventh largest zinc mine in the world and have the highest grade of any of the Top 10 zinc mines in the world. The Net Present Value (NPV) of Kipushi is estimated to be about $1.27 billion based on current zinc prices and that doesn’t include any exploration potential. The third is Platreef in South Africa. This is a platinum and palladium deposit in South Africa. I don’t want to talk Platreef down. It’s big. Based on an analysis of the ore contained in the deposit and the costs of building and mining it, Platreef has an estimated after-tax NPV of $916 million. Compared to the other two deposits, it’s not going to be the big driver of Ivanhoe’s value going forward. In the end, Platreef does add nearly another $1 billion to the total value of Ivanhoe which will likely end up being worth many times more than its current $2.7 billion market value. The multi-year copper boom is still moving forward. Demand for copper from EVs is only going to increase. Ivanhoe is in perfect position with a massive copper deposit that could end up feeding into the world copper supply for years to come while generating massive gains for early investors moving in now.

Company Snapshot:

Name: Ivanhoe Mines U.S. Listing: IVPAF Market Cap: $2.7 billion Learn More: www.ivanhoemines.com

http://www.ivanhoemines.com/

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Owning China’s Power Metals Monopoly

China has been aggressively moving towards being a big supplier for the EV boom. As we’ve gone over, the country is well on its way to be the largest battery producer in the world. One of the companies directly feeding China’s battery beast is China Molybdenum (OTCMKTS: CMCLF), which we’ll call China Moly (pronounced like the name “Molly”). China Moly is a $2.5 billion Chinese mining company with tentacles throughout the mining world. The company is one of the few domestic Chinese producers of metals including copper, cobalt, molybdenum, and tungsten. It has also has extensive mineral processing operations which involved the smelting and final stages of processing of metals before they can be used by end users like EV battery makers. The company is also a REE miner with multiple domestic rare earth mining operations. It is one of the few publicly-traded REE miners to make it through the current downturn in rare earths. It has mining operations in China but also has operations in Australia, Brazil, and the DRC. Or, to look at it another way, China Moly has operations in all the countries with specific mineral deposits to provide the Power Metals required to meet the EV battery boom.

Company Snapshot:

Name: China Molybdenum U.S. Listing: CMLCF Market Cap: $2.5 billion Learn More: www.chinamoly.com/en

http://www.chinamoly.com/en

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Backdoor Power Metals Play Turning “Trash” Into $8.2 BILLION Treasure Every Year

Our first four Power Metal plays are all straightforward mining stocks. Our fifth Power Metals stock isn’t a traditional miner, but it does produce massive quantities of all types of metals, but with one major advantage. This stock doesn’t scour the Earth for major mineral deposits, spend billions of dollars building mines, or take on the massive technical and engineering risks inherent in mining. It “mines” natural resources far more safely and efficiently and, here’s the key, it can expand much faster without laying out fortunes in massive mining projects which take years to be repaid. Umicore (OTCMKTS: UMICY) may be the best-positioned Power Metals player of all. Umicore is a global metals and materials recycler and processor with operations in China, South Korea, Belgium, Brazil, and around the world. Metals and materials recycling is big business which, in Umicore’s case, is about to get much bigger very quickly. Look at what Apple recently did in its recycling efforts. The tech giant reported that it managed to recycle 2,200 pounds of gold, 4.5 million pounds of aluminum, 3 million pounds of copper, and 6,600 pounds of silver annually. That’s more than $50 million from one company. Umicore generated $12.5 billion in revenues last year. Here’s where things get interesting though. In the first half of 2016 Umicore generated $5.78 billion. In the first half of 2017 it generated $7.5 billion. That’s a 29% increase in revenues and it’s the kind of growth that can make Umicore shares much more valuable in the future. However, it’s just the starting point for Umicore. Umicore has announced its stepping up its “rechargeable battery cathode materials” (that’s Power Metals) recycling and processing business significantly in 2018.

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It announced it will be investing almost $200 million to expand its recycling facilities in South Korea and China as well as build new ones from the ground up. The net result of the expansion will be a tripling of the company’s Power Metals recycling and processing capacity. And again, all that’s set to come online in 2018 at the same time Power Metals prices are likely to be even higher than they are today.

Company Snapshot:

Name: Umicore SA U.S. Listing: UMICY Market Cap: $9 billion Learn More: www.umicore.com/en

Ride the EV Battery Bull Today

Right now, you’ve got everything you need to fully capitalize on the EV boom. You now know the numbers. You understand the epic scale of the EV battery boom. You know the specific opportunities to maximize the opportunity. You know which metals will be in extreme demand from it all. You have seen how fortunes are made in natural resources and the auto industry. And, most importantly, you have five direct ways to position yourself to profit from it all. I realize we’ve been over a lot today. It took some of your time which I greatly respect. However, I believe it will be more than worth it in time and you’ll look back on the day you got this research on the EV battery boom as a day that had a major impact on your financial future. Good investing,

Tony Daltorio Founder, Growth Stock Confidential

http://www.umicore.com/en

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P.S. As promised, you’ve got a bit of bonus research on how the richest men in history parlayed major resource bets into fortunes that would make Bill Gates feel like he’s got some work to do.

BONUS:

Resource Riches: Secret of History’s Wealthiest Men

You’ve heard of the Rockefellers, Carnegies, Vanderbilts, and Rothschilds. They’ve built some of history’s wealthiest and most-storied fortunes. Adjusting for inflation, they were all far wealthier than Bill Gates, Jeff Bezos, and Warren Buffett today. However, these iconic names are not the richest men in history. History’s richest men gained their wealth not from building companies and innovating and creating new markets, the richest in history did something far simpler. They accumulated resources before they became exceptionally valuable. Have you heard of Jakob Fuggar? Don’t worry. Few have. Fuggar though built a fortune which, at its peak, was worth four times more than Bill Gates is today. Fuggar’s formed a copper monopoly across Europe in the late 1400s and early 1500s. As fortune would have it, the western world was emerging from the Middle Ages at the time and demand for copper alloys like brass and bronze was climbing. The copper alloys were essential raw materials for the makers of artillery, clocks, and paper. As a result, the value of Fuggar’s copper monopoly soared and he became one of history’s wealthiest men. The foundation of it all was a natural resource like copper which is still in big demand today. Fuggar wasn’t alone either. Have you heard of Mansa Musa? Again, few have. Musa was the King of Mali in the 14th century.

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Mali had massive and easily recoverable supplies of salt and this was a time when salt was king. Medieval scholar Ibn Battuta reported salt was more valuable than gold at the time. Mansa Musa ruled the world’s salt supply. As a result, his fortune was estimated to be worth about $300 billion today which is more than Gates, Buffett, and Bezos altogether. The foundation for this epic fortune was again, accumulation of mass quantities of natural resources at the time these resources were in demand. It’s simple and it hasn’t changed for hundreds of years. In the end, the world we live in today may be a lot different than the past or the future, but the value of natural resources hold their value and can be the basis of major wealth accumulation. The value of owning natural resources will be one of those things that will always be incredibly valuable over the long run.

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