Big news from Capital 10X HQ – we’re excited to launch Capital 10X Mining Quantitative Insights this month. It’ll be a resource where all mining investors can analyze explorers and producers on a fundamental quantitative basis – it’ll be one of the most comprehensive mining resources available publicly. Stay tuned!

Also, we’ll be organizing and participating in weekly Twitter Spaces (conference calls) on growth sectors. We participated in a very dynamic discussion on the vanadium industry last week (details in later in this note). Follow us on Twitter to get notified when our live discussions take place, they will also available on replay.

Base metals have been on a tear since the end of September; Nickle is up over +37% and Copper +13% – while crude has been flattish at +2%. China reopening is a big catalyst, coupled with the fact that the Fed is projecting pivot to the market.

Powell’s remarks at the Brookings Institution last Wednesday: “The time for moderating the pace of rate increases may come as soon as the December meeting” put a strong bid behind risk assets, the US 5-Year Treasury yield has fallen 0.75% from the peak.

We’re also getting clear signs from the Chinese government that the draconian lockdowns are set to end; these lockdowns have been met with riots and have severely dampened economic activity.

Hu Xijin, a journalist at Global Time – the state-run newspaper, stated that China’s lifting of lockdowns will result in near term chaos however the Chinese economy will usher a strong rebound.

BATTERY METALS

Sigma Lithium NPV Update & Financing

The big news over the weekend was Sigma Lithium (TSX:SGML) announcing the tripling of its NPV to US$15.3 billion from its production expansion study and the securing of $100 million in debt financing.  This puts focus around companies operating near their Grota do Cirilo Project in Minas Gerais, Brazil. Lithium Ionic (TSX:LTH) is one such company with 2,000 hectares located in the Minas Gerais state.

Vanadium Insights with Largo Physical Vanadium

Capital 10X was pleased to join a dynamic conversation about the vanadium industry and the potential of Vanadium Redox Flow Batteries (VRFBs). You can listen to the discussion through this link, it’s the first hour and half of the recording.

The conversation was organized by Jennifer Shaigec, a fantastic follow on Twitter for commodity news and insights. We were joined by Jonathan Lee (Director) from Largo Physical Vanadium (CVE:VAND), he brought a wealth of insight on VRFB technology and the promising future of the market.

Thomas George and Scott Willis from Grizzle also participated in the discussion, discussing the value of vanadium in the context of other battery metals and the attractive valuation of Largo (TSX:LGO). Grizzle had the opportunity to chat about vanadium and the future of battery storage with Alberto Arias (Chairman of Largo) on their podcast – a very worthwhile listen for battery metal investors.

GM & LG Energy Investing $275 million to Expand EV Battery Plant

General Motors (NYSE:GM) and LG Energy Solution will spend an additional $275 million in their joint venture battery plant in Tennessee to increase production by more than 40%.  This is in addition to the $2.3 billion announced in 2021 to build the facility.

This significant expansion of battery plants around the world will continue to drive demand for electric metals such as lithium, nickel, copper and vanadium.

South Korea is Investing in Australia, with a Focus on Battery Metals

Ben Bosung Kim, Managing Director for steel giant POSCO said the company has invested approximately $3.4 billion in Australia – focusing on iron ore and coal, as well as lithium nickel, graphite and other battery metals needed for electric vehicles.

Last year POSCO entered into a joint venture deal with Pilbara Minerals Ltd (PLS.AX) to build a 43,000 tonne lithium hydroxide chemical facility in Gwangyang, South Korea. The company also purchased a 30% stake in First Quantum Minerals Ravensthorpe nickel mine in Western Australia.

Their EVP and Head of Hydrogen Business, Juik Choo, said that they plan to become a global hydrogen provider with capacity to produce 7 million tonnes by 2050. Part of this plan is to a build large-scale hydrogen production base in Australia that can deliver 1 million tonnes by 2030.

Canadian Federal Government Invests $27M in Lithium Extraction

François-Philippe Champagne, Minister of Innovation, Science, and Industry along with George Chahal, Member of Parliament for Calgary Skyview, announced a $27 million contribution to E3 Lithium Ltd (CVE: ETL). through the Strategic Innovation Fund’s Net Zero Accelerator initiative.

This investment supports E3 Lithium’s $87 million project for the construction of a demonstration plant specializing in lithium production. This facility is being built as a first step toward a full-scale lithium production plant that will produce 20,000 tonnes of battery-grade lithium. The Canadian government is aiding the mining sector to develop a sustainable, long-term source of lithium supply – critical to building electric vehicles and strengthen the supply chain.

HEALTH & TECH

Cannabis Stocks Rally on Banking Reform

The rally in cannabis stocks was spurred by comments by Chuck Schumer in October that lawmakers were “very close” to a deal on much delated cannabis banking legislation (SAFE Banking Act).

The SAFE Banking Act would make it easier for cannabis companies to access the U.S. banking system. The balancing act for lawmakers is the need to pair the bill with additional criminal justice and equity reforms around drug offenses.

U.S. cannabis stocks have rallied 50% since October 1st, however the sector is still down -48% for the year.

Mindset Pharma CEO, James Lanthier Issues Letter to Shareholders

Mindset Pharma Inc. (CSE: MSET) (OTCQB: MSSTF) issued a letter to shareholders from CEO James Lanthier, discussing their accomplishments this year. With their programs moving to the clinical stage, leading industry partnerships and expanding IP pipeline, the company is becoming an industry leader in developing next-generation optimized psychedelics for patients.

Largo Inc. is a market awareness client of Capital 10X.