EV Demand Set Lithium Portfolios On Fire. Now Its Telluriums Turn As Investors Eye Plans For Solar Expansion
Tellerium - Lead-1
IF YOUVE NEVER HEARD OF TELLURIUM
This Rare Earth Mineral Is 8X Less Abundant Than Gold, Rarer Than All Rare Earths, and As Critical To Solar Panels As Lithium Is To EVs
> For decades, Chinas rare earth stranglehold has crippled North Americas efforts to take a leading role in the green energy revolution. That may not be the case for much longer.
> A brand-new mining sector has birthed a stunning opportunity, and one company at the center of it has seen its shares rise more than 100% in just 2 months.
> Investors need to get up to speed in a hurry because this new U.S. mine could be a potent threat to Chinas grip on 93% of the worlds rarest minerals.1
This Could Be the Beginning of a Massive Field Day, As History Is Made in the American West
A small minerals exploration outfit is developing a project that could soon yield one of the worlds rarest, and suddenly most important minerals.
That rare mineral is tellurium.
It is a hard-working mineral thats essential in making the thin-film photovoltaic cells for solar panels.
BUT TODAY, TELLURIUM IS ALSO AT THE HEART OF A BREAKTHROUGH THAT COULD FUEL ONE OF MANKINDS MOST SENSATIONAL ADVANCES IN SOLAR TECHNOLOGIES.
Thats why investors need to make a deep dive in a hurry into junior explorer First Tellurium Corp. (CSE:FTEL, OTC:GODYF).
First Telluriums property, known as the Klondike, has a story behind it that should quicken the heartbeats of even the most veteran natural resource investor.
Thats because First Telluriums property was formerly owned and explored by First Solar (NASDAQ:FSLR), which is one of the worlds largest solar panel makers and has a share price pushing $120.
It optioned the Klondike for one reason alone to build a mine as a private, steady, and exclusive source of the tellurium thats vital to its solar panel manufacturing.
Then All Hell Broke Loose with Its Shareholders
Ultimately, First Solar sold the property after shareholder concerns because its operation was the opposite of the companys earth- friendly, green-industry brand.
To resolve the dispute, First Solar sold the Klondike property to members of its executive mining team, headed by the companys acting North American Exploration Manager, John Keller.
The mining team then concluded an agreement with First Tellurium Corp. (CSE:FTEL, OTC:GODYF) for the property.
Americas First Dedicated Tellurium Mine
Now, heres the real kicker. Not only does First Tellurium Corp. (CSE:FTEL, OTC:GODYF) look to be sitting on what could be a bonanza- grade property.
Its Klondike project would be the very first dedicated tellurium mine in the U.S
and the second in production world-over. 3
A rather surprising fact for a mineral thats so vital to the worlds energy needs. But, theres a good reason for the lack of tellurium mines across the globe.
A by-product of copper and gold refining, tellurium supply has long been adequate to meet the minor demand of about 490- to 500-metric tons a year.
That was the case, until First Solar recently announced plans for a massive expansion.
At the same time, a major technological breakthrough revealed telluriums hidden ability to supercharge lithium batteries.
And this next factor could radically accelerate demand even higher, putting the little- known resource on the radar of investors across the globe
Right on the heels of what looks to be a massive supply crunch, the U.S. government crippled a domestic tellurium supply chain when they denied permits for a significant new gold and copper mine in Alaska, as well as a copper mine in Minnesota. Expectations are likely that this trend in permit denials could become the status quo.
What were once counted on as important tellurium supply chains are now vanishing, just as tellurium is set to become a vital advanced battery component.
This trifecta could place First Tellurium Corp. (CSE:FTEL, OTC:GODYF) at the forefront of the rare earth minerals mining scene.
Heres The Whole Story
As you read about telluriums critical role in the manufacturing of photovoltaic cells for solar panels keep in mind one sobering reality.
Theres a huge reason why a small company such as First Tellurium Corp. (CSE:FTEL, OTC:GODYF), could likely have a starring role on the world stage.
As it is with many of the energy metals, the tellurium supply revolves around China, which mines 93% of the all the worlds rare earth elements.3
This could create a huge risk of supply disruptions for two reasons:
> On many occasions, China has tightened their export of essential rare earth elements due to supply crunches.
> Chinas ports are vulnerable to both labor problems and natural disasters.
But while the devastation of a natural disaster or limited supply could have grave repercussions for the worlds rare minerals trade, it is political machinations thats the real threat.
Having a near Monopoly on Crucial Elements like Tellurium Allows China to Restrict Access Whenever It Wants
For example, when Japan detained the captain of a Chinese fishing trawler that collided with Japanese coast guard vessels in 2010, China responded by halting all shipments of rare earth elements to Japan, which the country relies on to produce hybrid cars and electronics.
Holding a weak hand, Japan capitulated and released the captain.
China exerted its influence again a few years later when it lowered the price of global rare earth minerals in a vicious (and successful) ploy to force a U.S. company operating the Mountain Pass Rare Earth Mine in California into bankruptcy.
Now keep in mind, its relatively easy for China to push around a small company mining a singular resource. But that wont be so simple with a diversified mining company like First Tellurium Corp. (CSE:FTEL, OTC:GODYF).
>As China Eyes Afghanistans $1 Trillion of Minerals The Taliban Could Be All Ears
When the U.S. invaded Afghanistan in 2001, the global economy looked a lot different
there was no Tesla, no iPhone, no iPad, a world full of EVs was a distant, almost unimaginable, idea.
Back then, China was just emerging as a first-world economy and months away from joining the World Trade Organization.
Now China is entrenched in the modern global economy. Its an economy powered by high-tech chips and large-capacity batteries of varying sizes.
The chips and the batteries are made with a range of minerals, including rare earths, of which tellurium is one. And China covets rare earth minerals.
When the U.S. walked away from Afghanistan in late August, it knew it was handing the militant Taliban government complete control of rare earth deposits estimated to be worth at least $1 trillion by the U.S. Defense Department.
Now the Fear Is That China Will Ingratiate Itself with Neighboring Afghanistan
The state-owned China Metallurgical Group has already invested nearly $3 billion, including $371 million for infrastructure, to build a copper mine at Mes Aynack.4
Moreover, China has committed $62 billion toward improving infrastructure in Pakistan, which shares a border with China and Afghanistan.
A trillion dollars of rare earth minerals is a big, tempting number, even for revolutionary militants such as the Taliban.
So, the question now is, as Afghanistan descends into economic chaos, will the Taliban consolidate its power by offering such sweet deals that China has no choice but to open its checkbook?
The U.S. and Canada should not wait for the answer. They need to drop the pedal to the metal and as rapidly as possible develop reliable domestic sources of rare earth minerals.
And, that is why, companies such as First Tellurium Corp. (CSE:FTEL, OTC:GODYF) could be so vital to the smooth expansion of the North American economy.
An Ace Up First Telluriums Sleeve
You see, once First Tellurium starts its mining operation, its unlikely China could gain leverage against it.
Initial exploration of its Colorado tellurium property suggests that the Klondike property also holds as much as 1.2 ounces of gold per ton (33 g/t) of rock and earth. Those are significant grades, especially for a company thats just beginning exploration.3
And with Newmont Minings famous Cripple Creek project just 68 miles to the northeast, the likelihood of a massive discovery has real potential.
Not to get too far ahead of First Telluriums potential, but over the decades, Cripple Creek has produced more than 23 million ounces.
In 2019 alone Cripple Creek produced 322,000 troy ounces of gold worth more than $523 million,5 with proven and probable reserves reported to be 3.45 million troy ounces.6
Just something to consider: With tellurium as the target, gold is a heck of a byproduct.
Surface exploration has found the ground to hold as much as 3% tellurium.7 To give you a clear picture of what that means 3% of a ton is 60 pounds or 27.27 kilograms. That may sound small, but its outrageously huge as tellurium deposits go.
In fact, most rocks contain an average of about 3 parts per billion tellurium, making it rarer than rare earth elements and eight times less abundant than gold.8
Clean Energy Goals Multiply The Potential
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If I had the cash to invest I would jump in real quick on this one.
Links at the stock symbols.