Years ago I heard a guy on AM radio talking about investing. Seems like he was talking about batteries for electric cars (this was about 10 years ago). In his opinion it would be best to invest in companies who supply the components needed to actually build the batteries rather than the battery manufacturer. I guess that is a thought to consider.
Talon Metals Up Over 33%, On Pace for Highest Close Since February 2012 -- Data Talk
BY Dow Jones & Company, Inc.
â€” 11:48 AM ET 02/09/2021
Talon Metals Corp. ( TLOFF
) is currently at C$0.80, up C$0.20 or 33.33%
-- Would be highest close since Feb. 8, 2012, when it closed at C$0.85
-- On pace for largest percent increase since June 14, 2018, when it rose 37.5%
-- Currently up four of the past five days
-- Currently up two consecutive days; up 35.59% over this period
-- Best two day stretch since the two days ending July 28, 2020, when it rose 40.91%
-- Up 45.45% month-to-date
-- Up 56.86% year-to-date
-- Down 70.23% from its all-time closing high of C$2.69 on March 29, 2011
-- Up 492.59% from 52 weeks ago (Feb. 11, 2020), when it closed at C$0.14
-- Would be a new 52 week closing high
-- Up 900% from its 52 week closing low of C$0.08 on March 31, 2020
-- Traded as high as C$0.85; highest intraday level since Feb. 8, 2012, when it hit C$0.85
-- Up 41.67% at today's intraday high; largest intraday percent increase since June 4, 2018, when it rose as much as 42.86%
I bought this a last year and watched it sit there. Over the last few days it's started to make it's move. This is nothing more than my opinion so treat it that way. (some of y'all know me!! That should tell you something. LOL) This is a OTC stock.
This info is from an advisory service I subscribe to = pay for.
EV use is also at a big tipping point. Nearly every auto manufacturer is either producing EVs or has plans to.
Electric buses are big in China and catching on here. And electric semitrucks are not far behind.
The lithium-ion batteries that EVs run on all use a lot of nickel, in addition to lithium and other metals. But as you can see from one of Talonâ€™s recent corporate presentations, most of the battery by weight is nickel.
And EV manufacturers are looking ahead. Their new battery designs will contain 80% nickel.
Needless to say, EV makers are scrambling and trying to lock in new supplies. Hereâ€™s Muskâ€™s plea to nickel miners during a recent quarterly conference call: â€œPlease mine more nickel. Tesla will give you a giant contract for a long period of time if you mine nickel efficiently and in an environmentally sensitive way.â€
Why is Musk doing this?
Because nickel is a crucial component in Teslaâ€™s lithium-ion battery. And it looks like supplies of battery-grade nickel could be in short supply by as soon as 2023.
Nickel is also a component of stainless steel. But the demand from EVs will eventually dwarf the demand from stainless steel manufacturing.
That comment by Musk juiced the shares of a number of nickel companies. Traders are starting to move money into all types of metals, including precious metals.
These metals tend to move higher as the value of the dollar decreases. And with Congress about to print even more money, the value of those metals in dollar terms is only going to continue to rise.
Our play here is actually a triple play on nickel, copper and cobalt. And itâ€™s right here in the United States.
Thatâ€™s important for U.S.-based EV manufacturers. As the nickel market gets tight, theyâ€™ll have a source of supply here at home.
The mining company is Talon Metals Corporation. The company is focused on mining base metals, including nickel, copper and cobalt.
All three are found in the companyâ€™s Tamarack Project, 54 miles west of Duluth, Minnesota. Talon has a joint venture with Rio Tinto (NYSE: RIO) to develop the project.
With Rio Tintoâ€™s backing, thereâ€™s no question that this is going to get developed. The Tamarack Project is the only known U.S. resource containing all three metals.
The deposit has an amazing concentration of nickel. Consider this: Most nickel deposits are low-grade. You have to mine 900 tons of rock to produce 1 ton of nickel. And only 60% of the nickel in the rock can be extracted.
But the Tamarack high-grade deposit is something else. It will produce 1 ton of nickel for every 38 tons of ore mined. Even better, 85% of the nickel in the rock is extractable.
With Tamarack, less tonnage is mined, less energy is used and thereâ€™s less waste. And in the end, more nickel is produced.
Tamarack is unique in several other ways too. The energy to power the mining project (it will be an underground mine) will come from renewable energy.
The mining fleet will be all-electric. That will reduce energy and pollution.
Talon Metals is a junior mining company. It has a market cap of $372 million.
There are 534.5 million shares outstanding. Add in outstanding warrants and options and you end up with 629.2 million fully diluted shares.
It primarily trades on the Toronto Stock Exchange under the symbol TLO. You can also purchase shares on the over-the-counter bulletin board market under the symbol TLOFF, but they will be more liquid on the Toronto Exchange.
Sorry, speculators, there are no options for this pick.
Yesterdayâ€™s closing price in Toronto was CA $0.80. On the OTC, it was $0.63. Daily trading volumes averaged 718,000 on the Toronto Stock Exchange and 480,000 on the OTC exchange.
Please use a limit order and buy this in small lots or you run the risk of running the shares up. And I would strongly recommend purchasing on the Toronto Stock Exchange if possible. We will follow the Toronto share price in our portfolio.
***Action to Take***
Buy Talon Metals Corporation (TSX: TLO) shares using a limit order. Try to buy in small quantities, and donâ€™t pay more than CA $0.90 per share.