FN Media Group Presents Oilprice.com Market Commentary
LONDON, Nov. 19, 2024 /PRNewswire/ -- With JP Morgan CEO Jamie Dimon warning Washington that China and Russia are seeking to dismantle the Western world, and "World War III has already begun", access to critical metals that serve as the fuel of America's military has become the most urgent issue of our time. Companies mentioned in this release include: Northrop Grumman (NYSE: NOC), Boeing (NYSE: BA), BHP Group (NYSE: BHP), Albemarle Corporation (NYSE: ALB), Energy Fuels (NYSE American: UUUU).
Critical metals will determine superpower status and global domination.
China is winning because it controls the bulk of the world's critical metals, from mining to refining. Washington has been slow to discover domestic or friendly resources, at a time when the U.S. Army desperately needs them.
So, when a North American junior miner emerges as the owner of key critical metals properties in Europe and North America that could provide a new supply of one of these critical metals, the Western world sees hope.
The critical metal that is now poised to make or break a global superpower is antimony, and the miner is Military Metals Corp. (MILI.CN; MILIF.QB) - a little-known company that just put itself on the critical metals map through some smart strategic acquisitions.
Antimony (Sb), a critical metalloid, is a key element of the American war machine, essential for communication equipment, night vision goggles, explosives, ammunition, nuclear weapons, submarines, warships, optics, laser sighting and more, according to U.S. Army Major General (retired) James Marks. Not only does China control nearly half of the world's antimony production, but it also cut off antimony exports to the U.S. beginning in September this year.
The U.S. Army is Now Desperate for Antimony
China produces an astonishing ~70% of the world's rare earth minerals and controls nearly 50% of the global antimony supply. While China was pushing ahead at full speed, America was napping instead of discovering and developing new critical metals reserves.
Then, at the height of the trade war, China threatened to restrict the export of some rare earth minerals. It made good on that threat this year, and last: First, with Germanium and Gallium in 2023, and then with antimony in September this year.
Now, the U.S. Army has found itself short on an essential element of its military production line, just as war beckons from Europe to the Middle East. And it will need large amounts of antimony to succeed with a new push to ramp up production of artillery shells at newly launched manufacturing facilities after years of destocking.
Meanwhile, American manufacturers use more than 50 million pounds of antimony each year for fireproofing compounds, batteries, ammunition, electronics, specialty glass, and other products, according to MetalTech.
Now, it's past time for America to stake its claims on critical metals reserves, and Military Metals (MILI.CN; MILIF.QB) is helping to do just that.
New Antimony Resources for the Coming Critical Demand Surge
Military Metals Corp. is on an antimony acquisition binge that's taken it as far away as EU-member Slovakia, Nova Scotia in Canada and most recently in the US.
It's planning to help retell the American antimony story by exploring new and re-developing historical venues that could chip away at China's control over what is essentially a "military metal".
Military Metals Corp. recently announced that it has purchased one of Europe's largest antimony deposits in Slovakia with historical resources. In the heart of Central Europe, it's a promising Soviet-era resource with an initial discovery from the 1950s and prior development in the '80s and '90s. It's already seen two phases of exploration, including drilling and adit excavation.
At the Trojarova Antimony Project, which could turn Slovakia into a European critical minerals hub, Military Metals Corp. says that underground development of this historical resource, funded by the Slovakian government, was shuttered in the 90s "prior to reaching the richest part of the deposit".
Back then, with the Cold War winding down, and antimony already having served its purpose as the hero of World War II, the motivation just wasn't there.
Today, the situation is very different, and EU'S Trojarova project--with a historical resource of over 61,998 tons of antimony worth around $2billion in situ value at today's spot prices-could now become a military kingmaker. But Military Metals Corp. isn't concentrating all of its effects on a single continent: it's also making huge moves back in North America, in Canada's famous WWI antimony mine in Nova Scotia.
Military Metals Corp. is sitting on a recently acquired historical antimony/gold play, the West Gore Antimony Project-one of Canada's biggest past producing antimony mine and a key supplier to the Allied Forces in WWI.
It's an impressive historical resource, with historical drilling results demonstrating over 7 meters of 10.6 gpt gold and 3.4% antimony.
It's not stopping there, however. On October 24th, 2024, the company pounced on another opportunity to further consolidate this territory by signing an LOI to acquire more claims flanking West Gore.
The move to consolidate territory surrounding West Gore-one of the biggest heroes of WWI-is a strategic move that could tie the junior miner directly to North American defense at a time when prices are skyrocketing.
The Antimony Land Rush is a Junior Game
This smart, fast-moving investment strategy could, according to Forbes, be the "latest to generate short-term profits of more than 100% on money invested". Forbes was right, even if it underestimated the returns. Shares in junior mining stocks focused on antimony have surged recently, netting investors up to 800% returns in a very short time.
Australian ASX-listed companies were the first to light up the exchange, with shares in domestic Larvotto Resources Ltd. (LRV) surging over 800% in the past six months. The Australian government has placed antimony on its critical metals list, and Australian traders are calling it an "antimony party". But compared to its closet peer, Perpetua Resources, Military Metals Corp. appears to have quite a lot of room to run, based on resource estimates and current valuation.
Perpetua is currently valued at around $700 million, with ~90,000 tons of antimony. The U.S. government is in the process of providing a $1.86 billion loan to Perpetua to have their Antimony mine in production by 2029.
Military Metals Corp. is valued at only $23 million right now; but its new play in Slovakia is valued at $2 billion in situ of ore at today's Antimony spot prices that keeps climbing every week. And that's only one of its new antimony acquisitions. When you add the potential of West Gore in Nova Scotia, valuations could get even more attractive.
Pricing Power on the Brink of War
Military Metals Corp. CEO Scott Eldridge sees a major antimony supply crunch coming. He's certainly not alone.
"An extreme supply shortage since April has led to the sharpest price rally ever recorded in the antimony market since Fastmarkets started pricing the metal back in the early 1980s," according to the UK's Minor Metals Trade Association (MMTA).
"The military uses of Sb [antimony] are now the tail that wags the dog. Everyone needs it for armaments so it is better to hang onto it than sell it," Christopher Ecclestone of London-based Hallgarten & Company recently told the Financial Review, calling it a "sign of the times".
"This will put a real squeeze on the US and European militaries," Ecclestone added.
Germany has essentially been demilitarized, with its own defense ministry estimating it has about 2 days of ammunition if there is a war with Russia, which it expects to happen within the next few years at most. Germany and the EU have mandated 2 million artillery shells to be manufactured by the end of 2025 with a investment of 500,000,000 euros.
Indeed, antimony prices have more than tripled since earlier this year from $12,000 per ton to over $38,000.
Two major wars are already involving enemies and allies on four continents, and World War III is already underway for all intents and purposes, making Military Metals Corp.'s (MILI.CN; MILIF.QB) strategic acquisition binge a fast-moving opportunity that continues to expand with every day that China squeezes supply and America is stuck playing catch-up.
Other companies that are worth keeping a close eye on:
Northrop Grumman (NYSE: NOC) is a leading global security company providing innovative systems, products, and solutions in autonomous systems, cyber, C4ISR, space, strike, and logistics and modernization to customers worldwide. With approximately 90,000 employees, Northrop Grumman is a major player in the defense and aerospace industry. The company is known for its expertise in developing cutting-edge technology, including stealth aircraft, unmanned aerial vehicles (UAVs), and missile defense systems.
Northrop Grumman's commitment to research and development ensures that its customers have access to the latest technology and capabilities. The company's global presence also allows it to support its customers around the world.
Boeing (NYSE: BA) is the world's largest aerospace company and a leading manufacturer of commercial jetliners, defense, space and security systems, and global services. A major player in the global economy, Boeing employs more than 140,000 people across the United States and in more than 65 countries.
Boeing's commercial airplanes business is one of the company's most important divisions. Boeing is the world's leading manufacturer of commercial airplanes, and its products are used by airlines around the world. The company's defense, space & security business is another key part of Boeing's operations.
BHP Group (NYSE:BHP) is a vital contributor to US security by bolstering key supply chains. As a major producer of metallurgical coal, BHP fuels the US steel industry, which is crucial for infrastructure, manufacturing, and defense. This reduces reliance on potentially unstable coal sources and strengthens the domestic industrial base.
Additionally, BHP's nickel production is essential for advanced technologies used in aerospace, defense, and energy, ensuring the US maintains a technological edge. By sourcing these critical materials from stable partners like Australia, BHP enhances supply chain resilience, mitigating risks associated with geopolitical instability or natural disasters.
Albemarle Corporation (NYSE:ALB) plays a critical role in fortifying US security through its dominance in lithium production. Lithium is indispensable for lithium-ion batteries, which power everything from electric vehicles to military equipment.
Moreover, Albemarle's investments in US lithium production, including its planned North Carolina facility, reduce reliance on foreign sources and contribute to domestic job creation, further strengthening the US economy and national security.
Energy Fuels (NYSE American: UUUU) is a leading U.S.-based uranium mining company, operating the only conventional uranium mill in the United States. They have a diverse portfolio of uranium mines and projects in key uranium districts across the Western U.S. Energy Fuels also produces vanadium, a metal used in high-strength steel alloys and aerospace applications.
This company matters because they are a crucial player in the U.S. nuclear fuel cycle. Uranium is the primary fuel for nuclear power plants, which provide a significant portion of the nation's electricity.
By. James Stafford
**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**
Forward-Looking Statements
This publication contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. The forward-looking statements in this publication are based on current expectations and assumptions about future events, geopolitical developments, trade policies, market conditions, the company's strategic initiatives to address the critical shortage of antimony, and current expectations, estimates, and projections about the industry and markets in which the company operates. Factors that could change or prevent these statements from coming to fruition include, but are not limited to, the potential impact of the upcoming U.S. elections on various industries and specific companies, changes in government policies, market conditions, regulatory developments, geopolitical events and the company's ability to successfully acquire and develop new antimony resources and fluctuations in antimony prices. The forward-looking information contained herein is given as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.
DISCLAIMERS
This communication is for entertainment purposes only. Never invest purely based on our communication. We have not been compensated by the companies mentioned in this article but may in the future be compensated to conduct investor awareness advertising and marketing. While the opinions expressed in this article are based on information believed to be accurate and reliable, such information in our communications and on our website has not been independently verified and is not guaranteed to be correct. The content of this article is based solely on our opinions which are based on very limited analysis, and we are not professional analysts or advisors.
SHARE OWNERSHIP. The owner of Oilprice.com owns shares of the companies featured in this article and therefore has an incentive to see the featured companies' stock perform well. The owner of Oilprice.com will not notify the market when it decides to buy more or sell shares of the featured companies in the market. The owner of Oilprice.com will be buying and selling shares of the featured companies for its own profit and may take this opportunity to liquidate a portion of its position. Accordingly, our views and opinions in this article are subject to bias, and why we stress that you should conduct your own extensive due diligence regarding the featured companies as well as seek the advice of your professional financial advisor or a registered broker-dealer before you consider investing in any securities of the featured companies or otherwise.
NOT AN INVESTMENT ADVISOR. Oilprice.com is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. You should not treat any opinion expressed herein as an inducement to make a particular investment or to follow a particular strategy, but only as an expression of opinion. The opinions expressed herein do not consider the suitability of any investment with your particular objectives or risk tolerance. Investments or strategies mentioned in this article and on our website may not be suitable for you and are not intended as recommendations.
ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making any investment. This communication should not be used as a basis for making any investment in any securities. Past performance is not indicative of future results.
RISK OF INVESTING. Investing is inherently risky. Do not trade with money you cannot afford to lose. There is a real risk of loss (including total loss of investment) in following any strategy or investment discussed in this article or on our website. This is neither an offer to purchase, nor a solicitation of an offer to sell, subscribe for or buy any securities or the solicitation of any vote in any jurisdiction. No representation is being made as to the future price of securities mentioned herein, or that any stock acquisition will or is likely to achieve profits.
DISCLAIMER: OilPrice.com is Source of all content listed above. FN Media Group, LLC (FNM), is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated in any manner with OilPrice.com or any company mentioned herein. The commentary, views and opinions expressed in this release by OilPrice.com are solely those of OilPrice.com and are not shared by and do not reflect in any manner the views or opinions of FNM. FNM is not liable for any investment decisions by its readers or subscribers. FNM and its affiliated companies are a news dissemination and financial marketing solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. FNM was not compensated by any public company mentioned herein to disseminate this press release.
FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to update such statements.
Contact Information:
Media Contact e-mail: editor@financialnewsmedia.com U.S. Phone: +1(954)345-0611
View original content:https://www.prnewswire.co.uk/news-releases/global-antimony-shortage-is-a-ticking-time-bomb-for-the-us-military-302309911.html
