gemc corporate presentation pre-ipo dec. 2016
Post on 24-Jan-2017
98 Views
Preview:
TRANSCRIPT
GLOBALENERGYMETALSCORP.”PoweredbyCobalt–DrivenbyDemand”
Pre-IPORoadShowDecember2016(TSXV:GEMC)
FORWARDLOOKINGSTATEMENTSThe informa:on contained on this presenta:on is provided solely for the reader's generalknowledge. The informa:on is not intended to be a comprehensive review of all maIers anddevelopments concerning Global Energy Metals Corp. All informa:on is offered on a "bestinten:ons"basis.Nosecuri:escommissionorotherregulatoryauthority inCanadaoranyothercountry or jurisdic:on has in any way passed upon this informa:on and no representa:on orwarrantyismadebyGlobalEnergyMetalsCorp.tothateffect.GlobalEnergyMetalsCorp.isnotresponsible for the content of sites that can be reached through links on this site. Thispresenta:onmayinclude"forwardlookingstatements".Allstatements,otherthanstatementsofhistorical fact, included herein, including without limita:on, statements regarding explora:onresults,futureplansandobjec:vesofGlobalEnergyMetalsCorp.areforwardlookingstatementsthatinvolverisksanduncertain:es.Therecanbenoassurancethatsuchstatementswillprovetobeaccurateandactualresultsandfutureeventscoulddiffermateriallyfromthosean:cipatedinsuchstatements.
GlobalEnergyMetalsCorp.doesnotmakeanyrepresenta:ons,warran:esorguarantees,expressor implied, regarding the accuracy, completeness, :meliness, non-infringement, ormerchantability or fitness for a par:cular purpose or use of any informa:on contained in thispresenta:onorofanyinforma:onavailableonwebsitesthatareaccessiblebylinksfoundonthissite.Furthermore,theinforma:oninnowayshouldbeconstruedorinterpretedas,orasapartof, an offering or solicita:on of securi:es. Investors are advised to discuss all of their stockpurchaseswitharegisteredsecuri:esbrokerorpersonalfinanceprofessionalprior to inves:ng.Noobliga:on,responsibilityorliabilityshallbeincurredbyGlobalEnergyMetalsCorp.oranyofitsofficers,directors,employeesoragentsforanylossordamagewhatsoever,whetherincidental,special,indirect,consequen:al,puni:ve,exemplary,orforlostprofitsinconnec:onwith,causedbyorarisingfromanydelays,inaccuracies,errorsoromissionsinorinfringementby,orfromanyuseof,orrelianceonsuchinforma:onavailableonthiswebsite,thelinkstoothersitescontainedinthispresenta:onnoranyinforma:onavailableonsuchsites. 2
GLOBALENERGYMETALSCORP.
• Demand for baIery, storage and power deliverysystemswillcon:nuetodrivedeficitsinsupplyofkeybaIerymetals–lithium,cobalt,graphite,vanadium.
• Global Energy Metals Corp. (“GEMC”) has beenfounded on carefully forged rela:onships with themajorbaIerycomponentproducers.
• GEMCisuniquelyposi:onedto iden:fy,acquireandadvanceprojectsandothersourcesofsupplyforendusers.
THEOPPORTUNITY–ANEWCOBALTANDBATTERYMINERALSSUPPLIER
3
GLOBALENERGYMETALSCORP.
• 94% of cobalt mined is as a byproduct of nickel andcopper
• 65% of the world’s supply mined in conflict-strickenDemocra:cRepublicofCongo(DRC)
• 80% of China’s cobalt being sourced from the DRC’scopperopera:ons
• Chinalockingupthesupplychain• BaIerycomponentmakersshowinganinterestinlockinginpricesandvolumeandneeddiversifica:onandsecurityofsupply
• Thereareveryfew“primarycobalt”projects• Aworld-leader supplier of cobaltmust aggregate supplyfromvarioussourcesincludingprojects,streams&okake
THECOBALTSUPPLYPROBLEM-THEBIGGESTBATTERYCHALLENGE
4
GLOBALENERGYMETALSCORP.
• GEMC has layered onto its corecommercial rela:onships within thesupply chain the strongest execu:onteam in baIery metals projectexplora:on,developmentandsupplychainresearchandanalysis.
• With Werner Lake Cobalt Project asits founda:on,GEMC’sstrategy is toaggregate cobalt supply for our endusers.
• Enormous poten:al to grow into asignificantcobaltsupplierintheshortterm.
THEGEMCSTRATEGY–AGGREGATOR&SUPPLIER
5
$4Mmarketcap
26.9Missued&outstanding
$0.15pre-IPOfinancing
11.7Mwarrants
$1.6Mfundsraised
2.66Mop:ons
36.1%insiderownership
41.3Mfullydiluted
GLOBALENERGYMETALSCORP.
SECTOROPPORTUNITY-MOMENTUM
“Globaldemand forprimaryandsecondarybaIeries is forecast to rise7.7percentperyearto$120billionin2019.”TheFreedoniaGroup
“Howthe industrydealswithanexpectedsurge indemandwillbecri:caloverthecomingyears. Weexpectthistobeginin2016andit is likely to intensify in 2017/18,with limited new supply on themarket and baIery producers increasing their consump:on.”AndrewMiller,BenchmarkMinerals
“In addi:on to Tesla, there are at least a dozen baIerymanufacturers with numerous others rushing to join and capturegrowing market share. It is clear that security of supply of rawmaterials–cobalt,lithium,nickelandgraphite–willbeamajorissuegoingforward.”ChrisBerry,HouseMountainPartners
6
GLOBALENERGYMETALSCORP.
• Investors are searching for opportuni:es with a highly experiencedmanagementteamswhounderstandthesupplychain.
• Our 100% owned Werner Lake Cobalt project is the most advancedCanadianprimarycobaltprojects.
• AdvancingWernerLakeasafounda:onandsecuringaddi:onalsourcesofsupplyandprojectsthroughournetworkwillbethenextsteps.
• Pre-IPO funding closed, GEMC has commenced an immediate workprogram.
• GEMC is currentlynegoUaUnganumberofprojectandother supplyopportuniUes.
GEMC:TAKINGADVANTAGEOFTHISDISCONNECT
7
GLOBALENERGYMETALSCORP.
8
FOUNDATIONPROJECT:CANADA’SONLYADVANCEDPRIMARYCOBALTPROJECT• GEMC’Sfounda:onprojectconsistsofthehistoricWernerLakeandWernerLakeWestcobalt-
copper-goldmines• TheprojectlieswithintheWernerLakeBelt,thatalsohoststhehistoricGordonLakecopper-
nickelmine• ThepresentdayprojecthoststhetwoformercobaltproducersandseveralotheraIrac:ve
explora:ontargets• TheWernerLakeMineproduced146,386lbsofcobaltfrom1940to1944• TheWernerLakeWestMineproducedapproximately10,000tonnesofcobaltorebetween1996
and1997underthedirec:onofCanmineResourcesCorpora:on• Significantopportunitytoincreaseexis:ngresourcewithplannedexplora:onandextension
programTonnes Cobalt(%) Copper(%) Gold(opt)
ProvenReserves* 140,031 0.47 0.26 0.008
ProbableReserves* 40,829 0.25 0.43 0.030
Total* 180,860 0.42 0.30 0.013
IndicatedResources* 51,456 0.13 0.20 0.003
InferredResources* 869,378 0.29 0.28 0.011*Thehistoricalresourcees:matesatWernerLakearenotbeingtreatedasamineralreserveormineralresource.Keyassump:ons,parameters,andmethodsusedtopreparethehistoricales:matesarenotknown.Aqualifiedpersonhasnotdonesufficientworktoclassifythehistoricales:mateasamineralresourceormineralreserve.Addi:onaldrillingandtes:ngisrequiredtodetermineacurrentclassifica:onasamineralresourceormineralreserve.TheCompanyisnottrea:ngthehistoricalinforma:onasacurrentmineralresourceormineralreserveandthereaderiscau:onedtonotrelyuponthisdata.
GLOBALENERGYMETALSCORP.
9
WERNERLAKEBELTLOCATION
LakeWinnipeg
Lake of theWoods
WinnipegLac du Bonnet
Kenora
ONTARIOMANITOBAMINNESOTA
WERNER LAKE PROJECTCaribouFalls GrassyNarrows
10 10 20 30 40 50020 KILOMETRES
Minaki
Canadian Pacific Railway
Canadian Pacific RailwayCanadian National Railway
12
71
315
1
Werner Lake ProjectKenora Mining District, NW OntarioGlobalEnergyMetals
GLOBALENERGYMETALSCORP.
10
WERNERLAKEBELTPHASEI&IIDRILLRESULTS
Completed:• 1.21%cobaltover12.30metres• High-gradeinterceptofover12%cobaltover0.90metres• High-gradeinterceptsassociatedwithanomalousCu,NiandAuvalues• Over12%CoreturnedinholeWL10-004showingazoneofmorethan5%
sulphidesinperido:tewithpor:onsthatcarryfrom5to45%sulphides• Discoveryofhighgradeeasternextensionof800metresfromWernerLake
cobaltdeposit• 7,565mofdrillingin31holesoverthewinterandspringof2009-2010NextSteps:• UpdateandcompleteaNI43-101compliantresourcees:ma:on• Conductmetallurgicaltestworkthatwoulddeterminetheprojectsviabilityto
procurebaIerygradecobaltchemicals
GLOBALENERGYMETALSCORP.
11
WERNERLAKEBELTPHASEI&IIDRILLRESULTS
Granitoid Rocks (undivided)
Mafic Gneiss & ultramafic-mafic intrusions
Metasedimentary migmatite assemblage
Werner-Rex Lake Fault
Magmatic Ni-Cu-Cr-PGE deposits
Co-Cu and Co skarnoid deposits
Remobilised sulphide deposits
Werner Lake Mine
Gordon Lake Mine
Norpax
Deposit
East Werner
Lake
km
40
Location of Mineral Deposits in the Werner Lake Belt
Proposed Airborne Geophysics Survey
Eastern Shallows AREA OF PROPOSED AIRBORNE GEOPHYSICS
GlobalEnergyMetals
GLOBALENERGYMETALSCORP.
12
WERNERLAKEBELTPHASEI&IIDRILLRESULTS
Metasedimentary RocksGranitoid IntrusionsTonalite-Trondhjemite-Granodiorite IntrusionsUltramafic RocksMigmatitesAmphibolite & Alteration
RoadsCo-Cu-Au MineralisationFault
km 2500Limit of Mapping
Limit of Mapping
Werner Lake ProjectSimplified Geology, Mine Sites and Showings
Werner Lake West Old Mine SiteEast Zone
GlobalEnergyMetals
GLOBALENERGYMETALSCORP.
13
WERNERLAKEBELTPHASEI&IIDRILLRESULTS
*Thehistoricalresourcees:matesatWernerLakearenotbeingtreatedasamineralreserveormineralresource. Keyassump:ons,parameters,andmethodsusedtopreparethehistoricales:matesarenotknown.Aqualifiedpersonhasnotdonesufficientworktoclassifythehistoricales:mateasamineralresourceormineralreserve.Addi:onal drilling and tes:ng is required to determine a current classifica:on as amineral resource ormineral reserve. The Company is not trea:ng the historicalinforma:onasacurrentmineralresourceormineralreserveandthereaderiscau:onedtonotrelyuponthisdata.
350 m
150 m
50 m
Werner Lake Idealised Longitudinal Section
(Looking North)
200m
250 m
West East
Surface
Werner West ZoneOld Mine Site
Historic Resource Area
Recent Drill Hole10-019
0.028, 0.5073.3
0.120, 0.5601.4
0.05, 0.460.80
1.21, 0.2212.3
09-001
10-005
09-002
10-00410-003
10-006
10-00810-012
10-007
10-01910-02310-020
10-011
10-00910-010
10-028
10-018
10-021
10-025 10-027
10-030
10-026
10-032
10-024
10-022
10-013 10-017 10-01510-016
10-02910-033
10-031B
10-0140.14, 0.38
3.1
0.124, 4.3461.2
0.04, 0.201.9
0.012, 0.3230.4
0.102, 0.2662,4
0.10, 0.374.3
0.011, 0.3820.9
0.053, 0.1591.2
0.122, 0.2410.9
0.377, 0.1351.6
NSRNSR
NSR
0.011, 0.4311.3
0.020, 0.2340.9
NSR
0.025, 2.434.9
0.289, 0.0964.7
0.288, 0.1561.1
NSR
NSRNSR
0.279, 0.0852.7
0.039, 0.4221.4
0.007, 0.1421.0
0.017, 0.2743.0
0.196, 0.1452.8
NSR% Co, % Cum
GlobalEnergyMetals
GLOBALENERGYMETALSCORP.
• Wehaveiden:fiedaspecifictargetlistofprojectsandsupplyopportuni:estobepursuedaggressivelyoverthenext18to24months.
• The target list includes long-life deposits and high quality mines, as well asstreamingandokakeopportuni:es.
• Thesetargetprojectsaregenerally latestage,nearproduc:on, inproduc:on,or with a defined resource that can be rapidly advanced over the next fewyearsthroughtechnicalandcommercialpartnershipwithoff-takegroups.
• Earlierstageexplora:onprojectswithgoodpoten:alforlargescaleresourcesarealsobeingconsidered.
• GEMC is considering full buyouts, equity interests or controlling posi:ons intargetedprojectsdependingonthesitua:on.
• We will also evaluate streaming opportuni:es in rela:on to stable, reliablesuppliesofby-productcobalt.
• AshortlistoftheseprojectsisavailableunderNDA/CA
SECTOROPPORTUNITY–TARGETLIST
14
GLOBALENERGYMETALSCORP.
• Theenergystoragerevolu:onispropellinghighdemandforthekeybaIerymaterials.
• Duetothecon:nueddownturninthecommoditysector,thereareuniqueopportuni:estoacquireabankofbaIerymaterialsandprojectsfarbelowvalue.
• BaIery giants are scaling up lithium-ion baIery produc:on with“megafactories” and are ac:vely acquiring rawmaterials through okakeagreements.
• Experiencedteam,okakerela:onshipsandunderstandingofsupplychainarekeyingredientsforsuccess.
AUNIQUEMOMENTINTIME
15
GLOBALENERGYMETALSCORP.
• One of the most experienced cobalt and baIery metals teams in NorthAmerica
• FoundedbyexpertsinenergyandbaIerymetalsindustryandsupplychainwhoareshapingthesector’sfuture
• Management and Advisors with understanding of supply chain, cri:calmetallurgicalissues,projectanalysisandprojectfinance
• Interna:onalandAsianfocused
TEAM-BATTERYMETALSMARKETEXPERIENCE
16
GLOBALENERGYMETALSCORP.
THETEAM-EXECUTIVEMANAGEMENT
17
BACKGROUND&EXPERIENCE
ErinChuYerExecu&veChairperson&
Director
• Leaderinunderstanding,advancingcobaltprojects;interna:onalminingandbusinessexperienceinCentralAsia,ChinaandRussia.
• Exper:seinmanagement,finance,M&A,strategyandopera:onsandinvolvementwithChinesebaIerymanufacturerswithinnova:veokakeandfinancemechanisms.
• Government• ChairoftheCanadianEurasianBusinessAssocia:onandDirectorMacDonaldLaurierIns:tute.• HonouraryConsul(BC)toRussianFedera:on• DirectorofKhotInfrastructureHoldingsLtd.,aCSElistedinfrastructurecompany,andformer
directorofNioCorpDevelopmentInc.,aTSXlistedminingcompany;formermanagerwithPlatniumGroupMetals,MagSilver,WestTimminsMining.
• Ms.ChuIerwasrecognizedwitha2011BusinessinVancouver“Top40Under40”achievementaward.
MitchellSmithPresident&CEO
• Accomplishedexecu:veandbusinessdevelopmentprofessionalwithdeepexperienceandprovensuccessdevelopingandexecu:ngoncorporatestrategies,marke:ngrela:onshipsandmaximizingbusinessopportuni:esforlong-termengagementandstrategicrela:onships.
• Profoundunderstandingofthenaturalresourcessector,capitalmarketsandcurrentmarkettrendspar:cularlywithinthebaIerymetalsspace.
• PriortobeingappointedPresident&CEOofGlobalEnergyMetals,Mr.Smithheldincreasinglyseniorposi:onswithpreviouscompaniesincludingGlobalCobaltCorp,Interna:onalBarytexResourcesandPetaquillaCopperLtd.
PaulSarjeantVPProjects&Director
• Mr.Sarjeant,P.Geo,hasextensiveexplora:on,projectevalua:onandacquisi:onexperiencebothinCanadaandinterna:onallyandhasdevelopedasolidbackgroundincompanymanagementthroughvariousexecu:vemanagementposi:onswithseveralpubliclytradedjuniorresourcecompanies.
• Mr.SarjeantbeganhiscareerwithEchoBayMinesLtd.asaprojectgeologistworkingonprojectsintheNWT,Archeangreenstonebelts,LupinMineperipheralproject,andskarnproper:esinBCandEcuador.
• HewasappointedSeniorGeologist,Interna:onalExplora:onGroup,responsibleforprojectevalua:onoutsideofNorthAmerica,includingpreciousandbasemetalsprojectsinSouthAmerica,EastAfrica,SouthEastAsia,Russia,Mongolia,Australia,NewZealandandEurope.
GLOBALENERGYMETALSCORP.
THETEAM–DIRECTORS
18
BACKGROUND&EXPERIENCE
RayCastelliDirector
• Mr.CastelliwasappointedCEOofWeatherhaven,oneoftheworld'sleadingmanufacturersofredeployablecampsandsheltersystems,inJanuary2008.
• WeatherhavenhasgrowntobecomeakeysuppliertotheCanadian,US,AustralianandNATOarmedforces,numerousresourceexplora:oncompaniesaswellastheUnitedNa:onsandotherdisasterandhumanitarianreliefagencies.
• Mr.Castelliwasco-founderandSeniorVicePresidentofQuadrem,aDallas-basedglobalsupplychainande-procurementcompany,serving19oftheworld'slargestnaturalresourcecompanies,includingRioTinto,BHPBilliton,AlcanandInco.Hisrolewastobuildtheglobalorganiza:onandproductsetforthise-businesspioneer.
• Mr.CastellijoinedAlcanin1995followingbusinessschoolinEurope.HewaspromotedtoAlcan'sMontrealheadquartersin1997asDirectorofStrategicPlanning.
GastonReymenantsDirector
• Mr.Reymenantshasheldadis:nguishedcareerinmining,smel:ng,refiningandmetaltradingspansoverfortyyears,duringwhich,hewasalsoresponsibleforthefinancingofseveraloff-takeprojectsinAustralia,ChinaandtheAmericas.
• Hehasservedover20yearswithFalconbridgeInterna:onalinvariousmanagerialposi:onsandwaspartofthejointventurewithNorilskKombinat.
• Mr.ReymenantswasthemanagingdirectorofKolaInterna:onalMurmansk,andhelddirectorand/orseniormanagerialposi:onswithseveralcompanieswithcobaltassetsincludingBajaMining,PolymetMiningandKCM.
• Mr.Reymenants’wealthofknowledgeinthecobaltandindustrialmetalssectorswillproveanexcellentresourcetoGlobalEnergyMetals.
PeterReynoldsDirector
• Mr.ReynoldshasbeenengagedbyEBRDtocarryoutreviewsofEBRD'sinvestmentsforseveralprojectsinMongolia,CentralAsiaandRussiaandwaspreviouslytheEBRD'snominatedDirectorontheBoardofIMHL.
• Mr.Reynoldsholdsprofessionaldesigna:onswiththeAustralasianIns:tuteofMiningandMetallurgy,CanadianIns:tuteofMiningandtheAustralianIns:tuteofCompanyDirectors.
• Hehasover45yearsexperienceinthemineralsindustry,withhigh-levelexperienceatvariousminesincludingbeingformerlyManagerofOpera:onsPlanning&MineProjects/ManagerMineBusinessImprovementforBHPBillitonatOlympicDam,ManagingDirectorofASXlistedMarlboroughResources,DirectorofASXlistedOutbackMetalsandmanagerofseveralofNormandyMining’sopera:ons.
GLOBALENERGYMETALSCORP.
THETEAM–PARTNERS
19
BACKGROUND&EXPERIENCE
JamesGilbertPartner
• Jimhas20+yearsofminingandmetalsinvestment,financingandtransac:onexper:se,acquiredinadvisory,execu:veleadershipandgovernancerolesinbothpublicly-listedandprivatecompanies.
• Hisexperienceincludesthestructuring,nego:a:onandclosingofbaseandpreciousmetalsprojectfinancingtransac:ons,forsingleandmul:-sponsorprojectstotallingbillionsofdollars,aswellastheunderlyingjointventurearrangementsamongprojectsponsors--includingstrategicpartnersandokakers.
• Hehasalsoexecutedcorporateandassetlevelmergersandacquisi:ontransac:onsinvolvingminingcompaniesandprojectsinNorthAmerica,La:nAmerica,EuropeandAfrica.
• Jimhasheldseniorlevelposi:onswithFirstPointMineralsCorp.,MineraS.A,GeraldMetalsInc.andRothschild’sminingandmetalsinvestmentbankinggroup.
ChrisBerryPartner
• Chrisisawell-knownwriter,speaker,andanalystwithafocusonenergymetalssupplychains,specializinginlithium,cobalt,andgraphite.• Heistheco-authorofanewsleIerfocusedondiscoverycalledTheDisrup:veDiscoveriesJournal.• Hewasamemberofagroup,whichco-foundedTheDiscoveryInves:ngScoreboard,aprogramdesignedtousecrowdsourcedinforma:ontorank
equi:esofvariousmarketcapitaliza:ons.• Chrisspent15yearsworkingacrossvariousrolesinsalesandbrokerageonWallStreetbeforedevo:nghiseffortstowardsmacroeconomicandnatural
resourceanalysis.• HeholdsanMBAinFinancewithaninterna:onalfocusfromFordhamUniversity,andaBAinInterna:onalStudiesfromTheVirginiaMilitaryIns:tute.
StromcrowCapitalJonHykawy&
TomChudnovskyPartner
• StormcrowCapitalisaTorontobasedresearch,consul:ng,andcapitalmarketsfirm,whichfocusesheavilyonnicheindustrialmaterialsthatarecri:calinenergyandtechnologyapplica:ons.
• TheprincipalsatStormcrowbringdeeptechnicalandmarketexper:seinlithium,cobalt,graphite,:n,andothers.• Asformerseniormembersofvariousinvestmentbankingins:tu:ons,theprincipalsalsobringastrongprofessional,clientandstrategicnetwork,which
willbecri:calinhelpingGlobalEnergyMetalsachieveitslongtermobjec:ves.JonHykawy,PhD(Physics),MBA• 15+yearsofcapitalmarketsexperienceasSeniorAnalystorHeadofResearchatindependentTorontoinvestmentbanks• ChalkRiverNuclearLaboratoryofAECL• SudburyNeutrinoObservatoryTomChudnovsky• 10yearsofInvestmentBanking,Ins:tu:onalSales,andIns:tu:onalAgencyTradingexperience• Tom'spastcapitalmarketsexperienceincludebeingVP,InvestmentBankingatByronCapitalMarkets,VP,Ins:tu:onalEquitySalesatByronCapital
Markets,Ins:tu:onalEquityTraderatBlackmontCapitalandIns:tu:onalEquityTraderatClarusSecuri:esInc.
NewTigersConsulUngWeiQianPartner
• ExcellentChinesebaIerymarketsectorrela:onships.• NewTigersConsul:ngLimitedandWeiQianhavenego:atedandexecutedokakeandfinancialarrangementsforvariousresourcefocusedgroups.• WorkswithastrongnetworkofbaIerymetalscompaniesandprofessionalsinBeijing,GreaterShanghaiarea,Shenzhen,Australia,Canada,Irelandand
theUSA.• Since1997,hehasprovidedinterna:onaltrade,businessandmarketstrategyhasbuiltareputa:onforoutstandingresultsacrossarangeofservices
speciallytailoredtoforeigninvestmentandcompanyforma:oninChina.
GLOBALENERGYMETALSCORP.
CONNECTWITHGEMC
CORPORATEOFFICETHESUNTOWER#1501–128WESTPENDERST.VANCOUVER|BC|V6B1R8+1(604)688-4219WWW.GLOBALENERGYMETALS.COM
CONTACTSMITCHELLSMITH–PRESIDENT&CEO+1.604.209.6678MSMITH@GLOBALENERGYMETALS.COMERINCHUTTER–CHAIRPERSON,DIRECTOR+1.604.808.6420ECHUTTER@GLOBALENERGYMETALS.COM
@EnergyMetals linkedin.com/in/globalenergymetals
GLOBALENERGYMETALSCORP.
THEOPPORTUNITY–BATTERYMETALSSUPPLY
Upstream Downstream
BaIerySupplyChainSchema:c
BaIeryMetalsProjects
• Lithium• Cobalt
• Graphite
BaIeryComponentManufacturers
Cathodes
Anodes
SPECSSPECS
BaIeryProducers
KeyGEMCRela:onships
21
GLOBALENERGYMETALSCORP.
22
IT’SNOTJUSTLITHIUMINLI-IONBATTERIESFACT:Cobaltchemicalsareacri:calcomponentforrechargeablebaIeries• TherechargeablebaIerymarketisexperiencingrapidgrowthduetothecon:nuedprolifera:onof
portableelectronicdevices.• Inaddi:ontheemergenceofelectricvehiclesisan:cipatedtofurtherboostthedemandforcobaltin
baIeries• BaIeryisthesinglelargestuseofcobaltaccoun:ngfor42%ofcobaltdemandandistheprimary
driverofthecobaltmarket
LITHIUMCOBALTBATTERIES:Advanced,HigherEnergyDensity,LighterLithiumCobaltOxide(LCO)
60%CobaltbyWeight
10-20%CobaltbyWeight
9%CobaltbyWeight
BytheYear2020COBALTuseinbaIeryapplica:onsises:matedtobegreaterthanthecurrenten:reworldmarketforrefinedcobalt
LithiumNickelManganeseCobaltOxide(NMC)
LithiumNickelCobaltAluminumOxide(NCA)
22
GLOBALENERGYMETALSCORP.
23
BATTERYMARKETFUELINGDEMANDFORCOBALT
Lithium-IonBaYeries
Darton Commodities Ltd (January 2016) © 32 St Thomas Court, 39 Epsom Road, Guildford, Surrey GU1 3LA, UK
Tel: +44 (0) 1483 579825 Fax: +44 (0) 1483 514177
Vehicle electrification going mainstream... A short impression of just some of the car manufacturers building an xEV future. Recently introduced its full electric Model X and is targeting to reveal the new Model 3 in March 2016, with
production and introduction of the $35,000 model scheduled for 2017. Construction of Tesla's $5 billion Gigafactory is ahead of schedule. First ESS cell production for Tesla Energy products is scheduled for the end of 2016 and first vehicle cell production is now targeted for 2017. Tesla delivered 50,557 Model S cars in 2015 and is aiming to ramp production up to 500,000 cars by 2020 (for a more detailed description of Tesla's Gigafactory and the impact on cobalt we refer to the 2014-2015 version of the Cobalt Market Review).
Scheduled to bring 13 new EV models to market by 2020 and recently announced to invest a further US$4.5 billion to achieve its electrification targets.
Will be introducing four entirely new electric car models to the market starting 2017. At the same time it plans to introduce plug-in hybrid versions for most of the standard models already being in production.
In January 2016, VW's CEO confirmed a fundamental realignment of the group towards electric cars after its latest emission scandal, announcing that there will be at least 20 electric or plug-in hybrid vehicles in the VW Group's model range by 2020 (including Seat, Audi and Skoda).
Have embarked on a radical engineering overhaul which could see all future models from the 3-series upwards become all-wheel drive range extender electric cars, a technology already present in its recently introduced i3 and i8 models.
Is introducing the all electric Chevrolet Bolt in 2017. This car, which is considered to be the first true mass market electric car, will cost around $30,000 and have a 320 km range. Its battery can be charged to 80% in under an hour.
Will be adding plug-in hybrid vehicles across its entire model range. In addition it is developing a whole new line of electrified smaller cars and will build an all-electric car by 2019. The company expects 10% of its global sales to be electric by 2020.
Initially a producer of rechargeable batteries has rapidly developed its New Energy Vehicle and ESS business, becoming the world's largest manufacturer of (plug-in hybrid) electric vehicles by 2015. The company, backed by Warren Buffet's Berkshire Hathaway Inc. is looking to invest in a number of battery production plants which would bring its total capacity to around 34 GWh of ESS and vehicle batteries by 2020, in line with Tesla's intended capacity at its US$5 billion Gigafactory.
The Renault-Nissan alliance has committed around US $5.2 billion into its EV and battery development programs, aiming to become the global leader in zero-emission transportation. Until late 2015, when BYD took over in volume sales, the alliance was the world's largest electric vehicle manufacturer.
The Mitsubishi Outlander was Europe's top selling plug in car in 2015. The company is currently scheduled to launch another three new SUV models as PHEV and EV before 2020.
Is investing Φ1 billion on production facilities to produce its first all-electric sports car. At the same time is aiming to have plug-in hybrid versions of all its models available in the foreseeable future, including a plug-in hybrid of the 911 model which will hit the market by 2018.
The company, a symbol for all things V-12, confirmed it will launch an all-electric Rapide by the end of 2017 and the first plug-in hybrid model soon thereafter. Aston Martin's CEO recently stated that the entire industry will move to electricity as the diving costs of building electric cars coupled with ever increasing emission standards are quickly eroding the advantages of the traditional petrol engine.
Whilst not formally announced, it has become an 'open secret' that both Google and Apple are developing a full electric vehicle. It is believed that Apple is targeting a market introduction by 2019.
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
2015 2020
LIB Market by Cathode Type(in MT of cathode material)
LCO NMCNCA LMOLFP
> 69,300 MT
42,360 MT Co*
*Figure excludes approx 2,200 MT of Co used in NiMH and NiCd batteries. Source: Darton Commodities Ltd.
Co
: ~
60
%
Co
:~ 1
0-2
0%
Co
: ~
9%
Co
: 0
%
Co
: 0
%
0
100
200
300
400
2015 2020 2025
Rechargeable Battery Market
in GWh
Portable Electronics, Power Tools and E-bike Vehicle ElectrifcationEnergy Storage Systems
Source: Umicore Capital Markets Day, 2 September 2015
Demand –Batteries Really Matter
9
Source: Avicenne (2015)
GLOBALENERGYMETALSCORP.
24
COBALTSUPPLY&DEMANDBALANCE
Lithium-IonBaYeries
Darton Commodities Ltd (January 2016) © 37
St Thomas Court, 39 Epsom Road, Guildford, Surrey GU1 3LA, UK
Tel: +44 (0) 1483 579825 Fax: +44 (0) 1483 514177
3.0 Supply / Demand balance
- Demand growth (5.4%) outpaced supply growth (2.4%), reducing surplus output to approx. 2,000 MT or 2.1% of supply. - Supply / demand balance expected to move into deficit territory from 2016 onwards as net refined production declines. - A projected slowdown in demand is offset by a significantly bigger decline in refined cobalt supply during 2016. - Metal market balance to tighten in 2016 as metal output is scheduled to fall at least 11% from 2015, or 3,750 MT .
The annual surplus of refined cobalt production has trended lower for a third consecutive year, dropping to a five year low in
2015 at approximately 2,000 MT. Several years of production surpluses have contributed to a meaningful stock accumulation
of primarily chemical grades of cobalt, mostly held in China. Restrictions in mined cobalt availability and consequently raw
material supply is likely to curtail refined production growth during the 2016-2018 period which, together with weaker market
conditions, is likely to lead to significant destocking in the Chinese market. With no significant 'new' cobalt bearing mining
projects expected to bring on additional supply before 2018 / 2019, the market is likely to experience a sustained period of
production deficit whereby market demand is likely to outstrip refined production. However, accumulated stocks of both
refining feed materials and refined downstream products and the subsequent destocking thereof would suggest that the
impact of a tightening market may not become apparent until later in the year.
Cobalt - Supply / Demand Balance (2007-2017)
Source: Darton Commodities Ltd. estimates
It should be noted that the forecast for 2016 and beyond is based on the rather pessimistic projection that the rate of
demand growth will continue to see a significant slowdown during 2016, dropping to its lowest level since the crisis year of
2009. At 2.8% it assumes that demand growth from the battery sector drops to less than half the level seen in 2015, with
5.0%
4.1%
-2.1%
12.1%
5.9% 7.0%
5.0%
7.6%
5.4%
2.8%5.7%
6.5%
0.0%
5.8% 6.2%
30.3%
2.3%
-0.5%
8.0%
5.5%
2.4%
-2.2%
5.2%
3.1%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
-10,000
-5,000
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
55,000
60,000
65,000
70,000
75,000
80,000
85,000
90,000
95,000
100,000
105,000
110,000
2007 2008 2009 2010 2011 2012 2013 2014 2015(E) 2016(F) 2017(F) 2018(F)MT of Co
Refined Cobalt Supply
Refined Cobalt Demand
S/D Balance
Year-on-year demand growth
Year-on-year supply growth
2007-2015 CAGR:Demand: 5.6%
Supply: 6.7%
2014-2018 CAGR:Demand: 5.5%
Supply: 2.8%
GLOBALENERGYMETALSCORP.
25
COBALTSUPPLYBYPRODUCTTYPE-2015
Lithium-IonBaYeries
Darton Commodities Ltd (January 2016) © 6
St Thomas Court, 39 Epsom Road, Guildford, Surrey GU1 3LA, UK
Tel: +44 (0) 1483 579825 Fax: +44 (0) 1483 514177
Cobalt metal and coarse cobalt powder producers: • Chambishi Metals (Zambia) - cobalt cathode production declined an estimated 31% as the company lost over 900 MT of
cobalt metal output during the April to June 2015 period. Chambishi closed its metals refinery for three months due to a
shortage in sulphide concentrate feed from its primary supply source, Boss Mining in the DRC. Feed supply issues
continued to impact operations during the balance of the year, reducing its average monthly output well below the
levels seen in previous years.
• Glencore Nikkelverk (Norway) - a reduction in the processing of cobalt bearing third party feed caused cobalt cathode
production at Glencore's Kristiansand based refinery to drop an estimated 700 MT or 19%,
• Jiangsu KLK Cobalt Nickel Metal Co Ltd. (China) - continued to ramp up cobalt metal production during 2015 following
the restart of its metal production in August 2014. Output grew to 1,400 MT, up from 500 MT produced in 2014.
• Sumitomo Metal Mining (Japan) - production at the Niihama refinery increased by more than 500 MT and at 4,300 MT
was close to reaching plant capacity following a multi-year ramp-up.
• Ambatovy (Madagascar) - continued ramp-up efforts at the Ambatovy refinery allowed the company to raise its cobalt
output by 13%, reaching a total of 3,460 MT for the year.
• Sherritt / ICCI (Canada) - a higher cobalt ratio in the mined ore pushed output up by an estimated 16% to 3,733 MT.
• CTT (Morocco) - improved operational performance at CTT's mine and refinery, combined with an increase in third party
tolling activities, helped to raise output by over 30%, reaching an estimated 1,850 MT for the year.
Cobalt Supply by Product Type - 2015 (E)
Source: Darton Commodities Ltd. estimates
0
10,000
20,000
30,000
40,000
50,000
60,000
53,040 MT
12,500 MT 9,500 MT
7,900 MT 6,460 MT
2,200 MT 1,200 MT- Sherritt- Minara- Ambattovy
- Xstrata- Jinchuan- Sumitomo- Jiangsu KLK - Sherritt
- Freeport- Minara, Implats,
Ambatovy
- Chambishi- Katanga- CTT- Tocantins
- Norilsk- Vale Inco
- Umicore- Freeport Co.- QNI- Eramet- China:
HuayouJinchuanKLK / GEM Yi Hao / Umicore TengyuanJiayuanHanruiKelixen+ others
Cut Co cathode supply:
Jinchuan: 3,500 MT Xstrata / Falco: 2,900 MTSumitomo: 4,300 MTJiangsu KLK: 1,400 MTYantai Cash: 400 MT Rubamin: -TOTAL: 12,500 MT
Broken Co cathode supply:
Chambishi: 3,400 MT Katanga: 2,900 MTCTT: 1,850 MTVotorantim: 1,350 MTKasese: -Mopani: -TOTAL: 9,500 MT
Co briquette supply:
Sherritt: 2,400 MTMinara: 2,500 MTAmbatovy: 3,300 MTTOTAL: 8,200 MT
Coarse Co powder supply:
Freeport: 4,500 MTSherritt: 1,400 MTMinara, Ambatovy+ Impala 560 MTTOTAL: 6,460 MT
Metric Tons
China share: 43,200 MT / 81%
- Sherritt- Minara- Ambattovy
- Xstrata- Jinchuan- Sumitomo- Jiangsu KLK - Sherritt
- Freeport- Minara, Implats,
Ambatovy
- Chambishi- Katanga- CTT- Tocantins
- Norilsk- Vale Inco
- Umicore- Freeport Co.- QNI- Eramet- China:
HuayouJinchuanKLK / GEM Yi Hao / Umicore TengyuanJiayuanHanruiKelixen+ others
Cut Co cathode supply:
Jinchuan: 3,500 MT Xstrata / Falco: 2,900 MTSumitomo: 4,300 MTJiangsu KLK: 1,400 MTYantai Cash: 400 MT Rubamin: -TOTAL: 12,500 MT
Broken Co cathode supply:
Chambishi: 3,000 MT Katanga: 2,900 MTCTT: 1,850 MTVotorantim: 1,350 MTKasese: -Mopani: -TOTAL: 9,100 MT
Co briquette supply:
Sherritt: 2,400 MTMinara: 2,500 MTAmbatovy: 3,300 MTTOTAL: 8,200 MT
Coarse Co powder supply:
Freeport: 4,500 MTSherritt: 1,400 MTMinara, Ambatovy+ Impala 560 MTTOTAL: 6,460 MT
Metric Tons
China share: 43,200 MT / 81%
2016 Forecast: Chambishi: 2,000 - 3,600 MTKatanaga: 0 MTCTT: 1,700 -1,900 MTVotorantim: 300 - 400 MT TOTAL: 4,000 - 5,900 MT
35-56 %
GLOBALENERGYMETALSCORP.
26
COBALTDEMANDBYENDUSE-2015
Lithium-IonBaYeries
Darton Commodities Ltd (January 2016) © 28
St Thomas Court, 39 Epsom Road, Guildford, Surrey GU1 3LA, UK
Tel: +44 (0) 1483 579825 Fax: +44 (0) 1483 514177
The OECD notes that its recent projections have been based on the assumption that China can achieve a balanced and smooth transition from industrial to services-based growth. However, Chinese industrial production growth has slowed more dramatically in 2015, falling to the weakest rate since 2008. The easing of total expenditure growth combined with declining export volumes has prompted concerns that the slowdown in China could be deeper and progressing more rapidly than initially thought. This has prompted steep corrections on Chinese stock markets and sharp reactions in financial markets worldwide. If Chinese domestic demand were to slow more than currently anticipated, the global repercussions could be significant and more severe than implied only by direct trade and financial links, considering the indirect confidence and sentiment effects this will have on financial and commodity markets. The OECD has calculated that a reduction of 2% in Chinese domestic demand growth could, exacerbated by global financial stresses, reduce global GDP growth by over 0.5% in the following two years. Furthermore, slower than anticipated demand growth will inevitably place additional downward pressure on global commodity demand and prices.
Cobalt Demand by End Use - 2015
(in MT by end-use + yoy change)
Source: Darton Commodities Ltd estimates.
49%
18%
8%
6%
5%
4%
4%
3%
3%
0% 10% 20% 30% 40% 50% 60%
Battery chemicals
Superalloys
Hardmetals
Ceramics / Pigments
Catalysts
Hard Facing
Tyres / Paint Driers
Magnets
Others
Nickel / cobalt based alloys- Aerospace- Land based turbines / IGT- Medical (prosthetics )- Others
Rechargeable batteries - Li Ion: LCO, NCM, NCA cathode- NiMH / NiCd: anode / cathode
Cobalt as binding material(in cemented carbides and diamond tools):- Cutting tools, mining, oil & gas drilling etc.
Cobalt salts as precursor for catalysts- Oxidation (PTA / PET production)- Hydrotreating / desulfurization(gas, oil refining, petrochemicals)
- Fischer Tropsch (GTL)
Pigment / decolouriser- ceramics, glas and colouring applications
Permanent magnets:- AlNiCo, SmCo, NdFeB, CoFe
Soaps and driers: - Drying agent in paint and ink - Rubber adhesion promotor
Various:- Electroplating- High speed steels- Agriculture / animal feed- Synthetic diamonds
Hardfacing alloys for wear solutions- Stellites, Triballoy etc.
2015 Refined Cobalt Demand (E)
90,150 MT
15.950 MT
5,150 MT
7,470 MT
3,500 MT
3,600 MT
4,800 MT
2,600 MT
2,700 MT
-3%
+ 3%
+ 1%
-8%
+ 3%
+2 %
+ 4%
-6%
+ 5.4%
GLOBALENERGYMETALSCORP.
27
GLOBALMINED&REFINEDCOBALTPRODUCTION
Lithium-IonBaYeries
Darton Commodities Ltd (January 2016) © 20 St Thomas Court, 39 Epsom Road, Guildford, Surrey GU1 3LA, UK
Tel: +44 (0) 1483 579825 Fax: +44 (0) 1483 514177
Chemaf Ltd. (Lubumbashi, DRC)
Output (MT): 2013:
1,170
2014:
2,006
2015 (E):
2,300
% change YOY:
+10%
2016 (E):
2,400-2,800
2015
developments:
A series of process and equipment improvements have continued to improve throughput, plant capacity and recoveries, resulting in an estimated 10% increase in cobalt output.
2016 outlook:
Chemaf is in the process of constructing a flotation concentrator and roaster which are expected to be operational by mid 2016. This investment will allow the processing of significant quantities of both sulfide ores and tailings from the Etoile mine and should eventually help Chemaf to increase cobalt output by an additional 3,000 MT.
Global Mined and Refined Cobalt Production Key cobalt ore and intermediate trade flows / 2015 estimates, in 1,000 MT per year)
Source: Darton Commodities Ltd estimates
Canada 2.8
5.8
Cuba 5.3
Brazil 0.9
1.3
Morocco 1.3
1.8
DRC 69.2
2.9
Philippines 4.5
New Caledonia 2.0
Australia 4.3
4.9
China 1.3
52.3
Japan
4.3
Norway
2.9
Finland
9.6 Russia 5.8
2.4
Zambia 1.6
3.4
Madagascar 3,6
3,5
Belgium
1.3
Mined Co production
Refined Co production
Nickel by-product
Copper by-product
Main ore / intermediate trade flows ( > 1.0 k tpa of Co contained)
Primary cobalt source
Papua NG 2.5
Keycobaltoreandintermediatetradeflows–2015es:matesin1,000MTperyear
GLOBALENERGYMETALSCORP.
28
HISTORICALCOBALTPRICES2007-2015
Lithium-IonBaYeries
Darton Commodities Ltd (January 2016) © 40 St Thomas Court, 39 Epsom Road, Guildford, Surrey GU1 3LA, UK
Tel: +44 (0) 1483 579825 Fax: +44 (0) 1483 514177
Source: Metal Bulletin
-$2.00
$2.00
$6.00
$10.00
$14.00
$18.00
$22.00
$26.00
$30.00
$34.00
$38.00
$42.00
$46.00
$50.00
$54.00
2007 2008 2009 2010 2011 2012 2013 2014 2015
US
$/lb
Historical Cobalt Prices 2007-2015(Metal Bulletin High / Low averages)
Difference Low Grade Cobalt High Grade Cobalt
LG Avg $36.01/lb
LG Avg$13.45/lb
LG Avg$16.43/lb
LG Avg$18.75/lbLG Avg
$15.96/lb
LG Avg$28.27/lb
LG Avg$12.75/lb
LG Avg$14.16/lb
LGL Avg$15.92/lb
LGL Avg$12.94/lb
LGL Avg$12.20/lb
LGL Avg$13.72/lb
LGL Avg$17.93/lb
LGL Avg$15.17/lb
LGL Avg$35.16/lb
LGL Avg$27.70/lb
LG Avg$12.99/lb
LGL Avg$12.52/lb
-$2.00
$2.00
$6.00
$10.00
$14.00
$18.00
$22.00
$26.00
$30.00
$34.00
$38.00
$42.00
$46.00
$50.00
$54.00
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
US
$/lb
Historical Cobalt Prices 1997-2015(Metal Bulletin High / Low averages)
Difference Low Grade Cobalt High Grade Cobalt
GLOBALENERGYMETALSCORP.
SECTOROPPORTUNITY–SUPPLY/DEMAND
• Lithium is currently enjoying a “hot”moment in the equitymarkets, butlongertermbaIerydrivendemandgoesbeyondlithium.
• Of these, substan:al new sources of secure, long term supply will berequired tomeet 200%+ increases in demand for each of lithium, cobaltandgraphite–eachintheformofproductsmee:ngstrictspecifica:ons.
Year LCE(t) Co(t) NaturalCg(t) Mn(t) Ni(t)
All* BaIery BaIery BaIery BaIery
2015 193,750 53,403 55,194 34,546 15,394
2020 304,767 89,316 103,081 51,670 32,881
2025 399,760 120,660 156,312 58,871 54,595
CAGR%2015-2025 12.6% 8.5% 11.0% 5.5% 13.5%
Source:StormcrowCapitalLimited
ForecastDemandforBaIeryMetals
*Lithiumdemandshownincorporatesallpossibleapplica:onsandnotjustthatusedinbaIeries
29
GLOBALENERGYMETALSCORP.
30
THECOBALTMARKET–EXECUTIVESUMMARYRefinedcobaltproducUon2015/2016Globalrefinedcobaltoutputincreased2.0%in2015,reaching92,877MT.Outputofrefinedcobaltchemicalsandspecialtyproductsincreased5.8%from2014,cobaltmetaloutputwasup3.7%..During2016refinedcobaltoutputisforecasttodrop2%,drivenbyclosuresatVotoran:mandKatangaMining.Cobaltmetalsupplyisforecastedtodeclineby10.5%to30,050MT-thelowestlevelsince2010.Withminersfacingtheworstcommodityroutindecades,furtherproduc:oncutscanbeexpectedduring2016.MinedcobaltproducUon2015/2016Globalcobaltsupplyfromminingopera:onsincreasedanes:mated12%,reaching108,620MTofcobaltcontained.2016isforecasttodeclineby3,200-6,400MTduetoannouncedclosuresandreduc:onsinar:sanalmining.SupplyDevelopmentsintheDemocraUcRepublicofCongo(DRC)DRC'scobaltoutputincreased9%year-on-year,totalling69,200MTandrepresen:ng65%ofglobalminesupply.Produc:onofcrudecobalthydroxideincreasedanes:mated13%in2015,reaching40,500MT.Asubstan:alincreaseinar:sanalminingac:vityhasboostedavailabilityofcobaltheterogenite/concentrate.Despitesubstan:alreduc:oninproduc:onandexportsofBossMining,DRCconcentrateexportsincreasedby22%.AmnestyInterna:onal'sreportonar:sanalcobaltminingtoimpactdemandforandsupplyofheterogenitein2016.Lowcopperpricespresentameaningfuldownsiderisktoexis:ngandfutureDRCmininginvestments.SupplyDevelopmentsinChinaRefinedChinesecobaltproduc:onincreased9.0%in2015,reaching48,500MTor52%oftotalglobalsupply.Chineseimportsofcobaltrawmaterialsincreased30%yearonyear,fallingjustshortof60,000MT.Importsofcobaltintermediateswereupanes:mated41%,andcobaltconcentratesup36%from2014levels.Totalimportsfarexceededactualconsump:on,resul:nginasignificantinventoryaccumula:onofrefiningfeed.TheChineseStateReserveBureausourcedatotalof2,200MTofcobaltmetalfordeliveryQ42015-Q42016.
30
GLOBALENERGYMETALSCORP.
THECOBALTMARKET–EXECUTIVESUMMARYIncrementalSupplyin2016/NewProjectsNewrefinedproduc:onisexpectedtoreachthemarketfromNorilsk'scathodeplantandBoleoMininginMexico.Increasesareoffsetbysignificantreduc:onselsewhere,reducingrefinedmetaloutputnolessthan2,700-4,000MT.Non-refined/minedoutputincreaseswillbeoffsetbylargedeclinesatBossMiningandother,mainlyDRCopera:ons.GlobalCobaltDemandGlobalcobaltdemandgrowthrateslowedto5.4%in2015,withtotaldemandes:matedat90,150MT.TherechargeablebaIerymarketremainstheindustry'sgrowthdriver,withdemandfromthissectorup11.7%.BaIeryrelatedgrowthwasoffsetbyweakerdemandinotherandGDPsensi:veend-usegeographicmarkets.Demandgrowthfortradi:onalLCO1precursormaterialsdeclinedonslowingsmart-phoneandtabletsales.WeakerLCOgrowthisoff-setbyrapidlyincreasingdemandforNCM2materials,mainlydrivenbyautomo:vemarket.Automo:verelatedbaIerydemandrapidlygainingmomentum,Chinesesalesof'NewEnergyVehicles'up343%in2015.Refinersareshi}ingresourcesandcapacityfromLCOmaterialsproduc:ontoNCM-markettoincrease4-foldby2020.Superalloyrelateddemandup3%;strongeraerospacesalesoffsetbyweaksalestomining,oilandgassector.Bothairplaneandengineordersdroppedsignificantlyin2015yetalloydemands:llsupportedbyhigherbuildrates.Demandfromthehardmetalanddiamondtoolsectordeclinedduetoareneweddownturninkeyendusemarkets.Catalystdemandsufferedfromweakeroilprices,resul:ngindras:cdemandcutsforhydroprocessingcatalysts.Supply/DemandBalanceDemandgrowthoutpacedsupplygrowthin2015,reducingsurplusoutputtojustunder2,000MT,2.1%oftotalsupply.Marketbalanceexpectedtomoveintodeficitterritoryfrom2016onwardsasnetrefinedproduc:ondeclines.Significantstocksofrefiningfeedanddownstreamrefinedproductsmaydampenimpactofoutputshor~allonmarket.Themetalmarketisprojectedto:ghtenonlowerstocks,outputcutsandChina'sSRBstockpilingac:vity.MarketPricesTheMetalBulle:nLowGradelowaveragedUS$12.52/lb.in2015,down9%fromthepreviousyear.Downwardpricetrendsprevailedformuchoftheyear,withmarketmovingeventshavingliIleornoupwardimpact.Bearishcommoditysen:ment,producerdestockingandtradepressurepushedtheMBquotetoalowof$9.00/lb.Changingsupply-demanddynamicsarelikelytobringahigherdegreeofvola:litytomarketpricesin2016. 31
GLOBALENERGYMETALSCORP.
top related