Share this story:

Which Miners Are Equipped to Supply the Green Transition?



Metals like copper, lithium and nickel are increasingly important as demand soars for batteries, EVs and solar panels. But which stocks offer exposure to this demand? This article discusses the topic with reference to Freeport-McMoRan Inc (NYSE: FCX), Albemarle Corporation (NYSE: ALB), Vale SA (NYSE: VALE) and Vortex Metals Inc (TSX.V: VMS).

Vortex Metals Inc (TSX.V: VMS) provides exploration and mining services, with a focus on copper and gold projects.

A recent update showcased Vortex Metals Inc’s Riqueza Marina Volcanogenic Massive Sulfide (VMS) project in Mexico, a potential significant copper source. The project comprises three mineral leases close to paved roads, power and a deep-water port.

The project’s rhyolite dome target is a priority due to the scale and strength of the geophysical anomaly. Additionally, surface sampling identified “extensive exposures of oxidized copper-gold mineralization that can be interpreted as potential extensions of sub-surface mineralization”.

Vortex Metals Inc is planning additional surface studies and says it is making strong progress towards securing drilling permits.

Vortex’s projects were personally curated by the late David Jones, a renowned geologist who believed they could be his next big discovery. Jones previously discovered the successful Los Filos mine, where there is over 7 million Oz of gold and 5 million Oz of silver, while he was Teck Resources’ senior geologist.

Vortex Metals Inc CEO, Co-Founder and Director, Vikas Ranjan, commented: “The previous exploration conducted to date by late David Jones provides Vortex with multiple outstanding targets that have been identified. Given the size of the anomalies to date and grades we are seeing at surface we feel Riqueza Marina presents a unique opportunity”.

Vortex boasts of a marquee technical team, that includes renowned VMS expert Dr James (Jim) Franklin, a mining hall of famer, as senior technical advisor. With projects progressing and a stellar team in place, the company will be hoping that copper demand will accelerate following a dip in prices.

This hope could be fulfilled, with John LaForge, Head of Real Asset Strategy at Wells Fargo, recently commenting: “The market is just reflecting the immediate concerns. But if you really thought about the future, you can see the world is clearly changing. It's going to be electrified, and it's going to need a lot of copper.”

Freeport-McMoRan Inc (NYSE: FCX) is an international natural resources company which operates large, long-lived, geographically diverse assets with significant reserves of copper, gold, molybdenum, cobalt, oil and gas.

Freeport-McMoRan Inc owns some of the largest copper mines in the United States, with its seven open pit operations including the Morenci, Safford and Sierrita projects.

The company’s most recent earnings update showed copper and gold sales volumes which were above April 2022 guidance by 5% and 18%, respectively. Meanwhile they were also ahead of the same quarter in 2021 by 17% and 56%, respectively.

Commenting on the results, Freeport-McMoRan Inc Chairman and CEO, Richard Adkerson, said:

“Our assets are valuable and scarce. The future prospects for our markets, the quality of our assets and the experience of our team will enable us to deliver substantial value as global conditions improve.”

However, Freeport-McMoRan Inc still faces challenges. For example, planned expansion works at the company’s Grasberg copper mine in Indonesia have been delayed by around two years due to geological changes.

This change, in addition to news of COVID-related difficulties, came alongside news that the company had trimmed full-year production guidance. Even so, the business remains confident it can take advantage of high demand for copper.

Albemarle Corporation (NYSE: ALB) produces specialty chemicals. The company offers plastics, polymers, and elastomers, as well as cleaning products, agricultural compounds, pharmaceuticals, photographic chemicals, drilling compounds and biocides. The business focuses on lithium, bromine, refining catalysts and applied surface treatment.

Albemarle Corporation’s most recent earnings saw the business announce plans to build integrated lithium operations in the United States. These include projects at the Kings Mountain, North Carolina, as well as a spodumene mine and a lithium conversion plant in the southeast.

Even without the impact of these future projects, the company expects full year lithium volume to grow by between 20% and 30% due to increased capacity.

The company is attempting to expand its operations at pace, with developments including plans to increase the size of its Silver Peak lithium production facility. The project in Nevada faces objections from some segments of the local population who are concerned about its impact on the environment.

On a related note, the company has recently urged the US government to make it easier for domestic producers to transport their lithium to market. Albemarle Corporation is clearly hoping to gain an edge on Chinese lithium producers who currently dominate the market.

Vale SA (NYSE: VALE) produces and sells iron ore, pellets, manganese, alloys, gold, nickel, copper, kaolin, bauxite, alumina, aluminum and potash. The company is based in Brazil, where it owns and operates railroads and maritime terminals.

The company’s second quarter earnings update saw nickel and copper production both decline compared to the corresponding period last year. Nickel production fell by 16.1% and copper by 23.9%, though Vale SA attributed these declines to planned maintenance programs.

With that being said, Vale SA has since upped its guidance for nickel production from between 200,000 and 220,000 metric tons to 230,000 to 245,000. Its focus on the metal is a sign the business is looking to take advantage of increasing demand as the rise of technologies such as the EV continues.

However, it’s worth noting that the business has suffered damage to its reputation in recent years. For example, 2015 saw the collapse of a waste reservoir operated by Vale's subsidiary, Samarco, in the town of Mariana. This has seen the company having to pay significant damages.

A separate tailings dam disaster from 2019 resulted in 259 confirmed deaths and resulted in Vale SA taking a $7bn hit for reparations for those affected by the incident.

ValueTheMarkets News Commentary

IMPORTANT NOTICE AND DISCLAIMER

PAID ADVERTISEMENT

This communication is a paid advertisement. ValueTheMarkets is a trading name of Digitonic Ltd, and its owners, directors, officers, employees, affiliates, agents and assigns (collectively the Publisher) is often paid by one or more of the profiled companies or a third party to disseminate these types of communications. In this case, the Publisher has been compensated by Vortex Metals Inc to conduct investor awareness advertising and marketing and has paid the Publisher the equivalent of twelve thousand US dollars to produce and disseminate this and other similar articles and certain related banner advertisements. This compensation should be viewed as a major conflict with the Publisher's ability to provide unbiased information or opinion.

CHANGES IN SHARE TRADING AND PRICE

Readers should beware that third parties, profiled companies, and/or their affiliates may liquidate shares of the profiled companies at any time, including at or near the time you receive this communication, which has the potential to adversely affect share prices. Frequently companies profiled in our articles experience a large increase in share trading volume and share price during the course of investor awareness marketing, which often ends as soon as the investor awareness marketing ceases. The investor awareness marketing may be as brief as one day, after which a large decrease in share trading volume and share price may likely occur.

NO OFFER TO SELL OR BUY SECURITIES

This communication is not, and should not be construed to be, an offer to sell or a solicitation of an offer to buy any security.

INFORMATION

Neither this communication nor the Publisher purport to provide a complete analysis of any company or its financial position.This communication is based on information generally available to the public and on an interview conducted with the company's CEO, and does not contain any material, non-public information. The information on which it is based is believed to be reliable. Nevertheless, the Publisher does not guarantee the accuracy or completeness of the information. Further, the information in this communication is not updated after publication and may become inaccurate or outdated. No reliance should be placed on the price or statistics information and no responsibility or liability is accepted for any error or inaccuracy. Any statements made should not be taken as an endorsement of analyst views.

NO FINANCIAL ADVICE

The Publisher is not, and does not purport to be, a broker-dealer or registered investment adviser or a financial adviser. The Publisher has no access to non-public information about publicly traded companies. The information provided is general and impersonal, and is not tailored to any particular individual's financial situation or investment objective(s) and this communication is not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular investor or a personal recommendation to deal or invest in any particular company or product. Any investment should be made only after consulting a professional investment advisor and only after reviewing the financial statements and other pertinent corporate information about the company. Further, readers are advised to read and carefully consider the Risk Factors identified and discussed in the advertised company's SEC, SEDAR and/or other government filings. Investing in securities, particularly microcap securities, is speculative and carries a high degree of risk. Past performance does not guarantee future results.

FORWARD LOOKING STATEMENTS

This communication contains forward-looking statements, including statements regarding expected continual growth of the featured companies and/or industry. Statements in this communication that look forward in time, which include everything other than historical information, are based on assumptions and estimates by our content providers and involve risks and uncertainties that may affect the profiled company's actual results of operations. These statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results and performance to differ materially from any future results or performance expressed or implied in the forward-looking statements. These risks, uncertainties and other factors include, among others: the success of the profiled company's operations; the size and growth of the market for the company's products and services; the company's ability to fund its capital requirements in the near term and long term; pricing pressures; changes in business strategy, practices or customer relationships; general worldwide economic and business conditions; currency exchange and interest rate fluctuations; government, statutory, regulatory or administrative initiatives affecting the company's business.

INDEMNIFICATION/RELEASE OF LIABILITY

By reading this communication, you acknowledge that you have read and understand this disclaimer in full, and agree and accept that the Publisher provides no warranty in respect of the communication or the profiled company and accepts no liability whatsoever. You acknowledge and accept this disclaimer and that, to the greatest extent permitted under applicable law, you release and hold harmless the Publisher from any and all liability, damages, injury and adverse consequences arising from your use of this communication. You further agree that you are solely responsible for any financial outcome related to or arising from your investment decisions.

TERMS OF USE AND DISCLAIMER

By reading this communication you agree that you have reviewed and fully agree to the Terms of Use found here https://www.valuethemarkets.com/terms-conditions/ and acknowledge that you have reviewed the Disclaimer found here https://www.valuethemarkets.com/disclaimer/. If you do not agree to the Terms of Use, please contact valuethemarkets.com to discontinue receiving future communications.

INTELLECTUAL PROPERTY

All trademarks used in this communication are the property of their respective trademark holders. Other than valuethemarkets.com, the Publisher is not affiliated, connected, or associated with, and the communication is not sponsored, approved, or originated by, the trademark holders unless otherwise stated. No claim is made by the Publisher to any rights in any third-party trademarks other than valuethemarkets.com.

AUTHORS: VALUETHEMARKETS valuethemarkets.com and Digitonic Ltd and our affiliates are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above. This article does not provide any financial advice and is not a recommendation to deal in any securities or product. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance.ValueTheMarkets do not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above piece. ValueTheMarkets have been paid to produce this piece by the company or companies mentioned above. Digitonic Ltd, the owner of valuethemarkets.com, has been paid for the production of this piece by the company or companies mentioned above.

Contact Details

ValueTheMarkets

editor@valuethemarkets.com

Company Website

https://www.valuethemarkets.com/