The building blocks for everything on Earth are made from 90 different naturally occurring elements. 

As discussed last month, I am a fan of Rio Tinto (RIO) beyond massive dividends. It was, therefore, pleasing that it today announced it has “completed the acquisition of the Rincon lithium project in Argentina for $825 million, following approval from Australia’s Foreign Investment Review Board (FIRB)”. It makes sense for it to be beyond just iron ore, even if the shares are a touch down today.

Hello Share Squirmers. In his spring budget, Rishi Sunak failed to mention any green matters. Which is odd given the impetus taking place in the world. Not only are the major countries working towards being carbon free. But the curbs and, probably quite soon, the complete shunning of oil and gas from Russia, makes the environment revolution even more urgent.

Hello Share Thrashers. The only sectors looking to be rising in the shadow of the war are mining and oil. Trident Royalties (TRR) has fingers in many mining pies, including gold. It’s share price has been tickling all-time highs but seems stable at the moment. That could change if gold continues to glow. Especially as the company has recently released some good news from the gold fields of California.

Hello Share Collectors. This old punter has long thought the company that invents the everlasting battery would find overnight it had the fastest growing share of all time. But like the indestructible tyre, that’s probably not going to happen. Nevertheless, a company which specialises in longer-lasting giant batteries could be worth a look.

Now that the acquisition of Bacanora Lithium (BCN) by Gangfeng has completed, many former shareholders will be wondering whether to keep hold of the shares they were awarded in Zinnwald Lithium (ZNWD) as part of that deal.

Castillo Copper (CCZ) states that it “is pleased to provide an update on the company’s copper and lithium assets” and the shares have responded higher above 2p and an approx. £27 million market cap. So what’s the news and where to next for the shares?

Bacanora Lithium (BCN) is a company that I have covered a few times previously, most recently when major shareholder and joint venture partner Gangfeng made a takeover bid for it.

Shares in mining giant Rio Tinto (RIO) have performed well for me ever since I realised back in October here that ‘investors should focus on China not cultural heritage’.  Actually if truth is told, it is more than just China because demand for the iron ore, copper and aluminium exporter is centred on a broader changing world.  Or as Rio Tinto put it on a chart in its second quarter numbers a few days ago, ‘we produce materials essentially for a low-carbon future’.  

As many of you will know, I’ve never exactly been a big fan of shares in small AIM listed lithium miners and viewed most as being junk when they were being heavily promoted a few years back when the metal was suddenly in the limelight and any sort of mention of it had private investors scrambling to buy in.

As a still loyal shareholder in Jubilee Metals (JLP), notwithstanding its penny share spiv Chairman, I take a keen interest in PGM prices where, my instinct, is that the outlook is very bright indeed. It is something I shall be chatting to Ross Norman about on video next week. Anyhow, in that context I thought you might enjoy this detailed note on PGM & Lithium prices from broker Fox Davies.

Hello Share Chasers. You'll know that Uncle Tom has arranged a new online share show for next weekend (Saturday, July 18). This one is dedicated to mining. And, being Tom, he’s managed to assemble a collection of friends and colleagues, who happen to be the country’s best mining investment experts. This is good because, just like oil exploration used to be, choosing the right miner to invest in can benefit your portfolio valuation possibly more than any other strategy.

Hello Share  Peekers.  Lithium, as my sharp-witted colleague Gary Newman observes, is not that rare a metal. Which has made me wary of buying shares in lithium miners and explorers. Ah, yes, you say, but lithium batteries are needed for the new electric cars. Not to mention the ubiquitous phones, laptops, tablets, electric bikes and all that jive. 

Hello, Share Swampers. The world is changing. And part of the move is away from fossil fuels, including petrol. So it makes sense for armchair tycoons like us to look for companies in tune with this growing trend. Cadence Minerals (KDNC) is one such firm...

Companies which have undergone several name changes and have never managed to achieve anything in their previous incarnations always raise red flags for me, and I suspect that Power Metal Resources (POW) will follow a similar trend to many others that fall into this category.

2018 should be seen as a reset year for lithium. Low-quality Chinese lithium surprised the market, but it doesn’t change the long-term demand picture. If anything demand continues to strengthen and he has never seen a more significant disconnect in any commodity. Analyst Chris Berry says, “Energy metals are a compelling place to be investing.”

Is there anything better than sitting back and reading a well-written article on a lazy Sunday? Every week ShareProphets features some long form journalism that you'll find of interest. Grab your cuppa and enjoy these five articles.

VSA Resources is house broker to Bacanora (BCN) but has visited its operations and come back initiating its coverage with a detailed report, below.

I pick up the writings of an anonymous but influential Battery Materials writer, a well known City figure who warns that the misery for shareholders in Bacanora Lithium (BCN) is set to intensify. In an email sent out this morning he notes, with the stock at 35p:

James West has made money from the Canadian cannabis bubble, but...

Hello, Share Shiners. My investment in Glencore (GLEN) has not exactly sparkled. But I have better hopes for the future. Glencore does a lot in the copper world. And as that great Shareprophets contributor, WildRides correctly says, the copper market is promising at the moment. But I’m also encouraged by the developments in a wrangle Glencore has with its ex-partner Dan Gertler. This disagreement is over royalty rights for copper mining in the Democratic Republic of Congo.

A City source has revealed to me that the long serving and self serving fat cat boss of serial uber dog Arian Silver (AGQ), Mr Jim Williams is set leave the company within days. The forced departure of Williams, whose pay has been obscene in relation to the 99% shareholder wipeout which he has presided over, is a prelude to yet another fund raise.

Blenheim Natural Resources (BNR) has always been one of the more popular shares on the AIM market, but given its performance to date it is hard to see why that is.

Lithium has been all the rage amongst AIM investors over the past few years, but the reality is that many of the projects which people have been getting excited about will fail to ever actually produce anything.

There was a time when Premier African Minerals (PREM) looked to have genuine potential, but in the few years since then it has consistently disappointed investors and is now trading at a fraction of the share price it once hit.

Twitter and the bulletin boards were awash with people saying how great the Blenheim Natural Resources (BNR) news was this morning, but having had a good read myself I think they may have been over-egging it somewhat!

Rick Rule of Sprott argues that there is capital misallocation on locating and extracting gold from the ground. Precious metals historically have been the most volatile part of the resource market. Reasons for this include the narrative around gold and silver being more interesting than say that of copper and coal. There is an allure to it. Thus there is a flaw in the way investors think. Investors that focus on precious metals likely do themselves a disservice.

As expected the full year results for URU Metals (URU) came out on the last possible day yesterday and, also as expected, they didn’t provide any answers to the questions I raised in my preview piece (HERE). However, that didn’t stop John Zorbas finding something new to get excited about and distract investors about the pitiful lack of progress here.

The only real surprise when it comes to persistent AIM failure Arian Silver (AGQ) is that some people thought that things were actually going to turn out differently this time around!

I’m expecting URU Metals (URU) to issue its end of year results on the last possible day  on 29 September, next Friday week, and am also expecting a sleight of hand masterpiece from the CEO, John Zorbas, who loves to distract from the real issue here, namely an uneconomic mine. Here’s a contrast of what I would like to see in the results and what I expect to see.

When a tiny AIM company suddenly becomes popular all over Twitter and the bulletin boards, and without any real news to justify that sudden attention, then you have to question why it is happening.

Blenheim Natural Resources (BNR) isn’t exactly on my list favourite AIM companies to invest in, but even I have been surprised by the recent sizeable drop in share price.

Regular readers here will know that I am not exactly a fan of Blenheim Natural Resources (BNR), nor have I ever been despite plenty of interest from private investors in this company.

Premier African Minerals (PREM) was a company that I had high hopes for a couple of years back, but since then it has largely failed to live up to expectations on the operational front – especially in terms of producing revenue.

I think we are in a crazy market for resource juniors and I am expressly NOT recommending you buy any of the shares below. But such is the madness that prevails, all sorts of mining and oil junors are seeing their shares fly. Worthless assets, crap management, no cash. Who cares? Just say you are looking at Lithium and off we go. So this is an experiment. Steve Moore will track the 12 stocks below, largely suggested by you and report back after 1 week, 1 month, 3 months, 6 months and on December 31 comparing this portfolio with the FTSE AIM Index and the FTSE 100. Just for fun, the dirty dozen are:

Blenheim Natural Resources (BNR) may have seen a large increase in its share price, but in my opinion it is still one to avoid and was basically insolvent on paper prior to the recent placing, and had been for several months!

Private investors seem to be going mad for shares in anything involving lithium at the moment, in the same way as they were for oil and gas a few years back.

The mere mention of lithium seems to be enough to send the share price soaring on many small AIM companies, until reality hits home and the almost inevitable pullback starts.

Andrew Monk of VSA Resources was today explaining in his private daily email why RedT Energy (RED) was his nap share tip of the year. Now bear in mind VSA acts for Red T but Monk is a principled sort of fellow and if he says he believes in something he really does.  As such it is over to the Monkey who writes:

There aren’t many of the small AIM mining companies that I’d consider as an actual investment, but I believe that Savannah Resources (SAV) is one that potentially falls into that category.

Lithium is one of those commodities where its mere mention seems to be enough to send the share price of smaller companies soaring, often to crazy levels compared to the actual news.

Rare Earth Minerals (REM) has seen its market cap more than double in the space of a month, but it is hard to see anything that justifies such a meteoric rise.

With plenty of turmoil in economies around the world, precious metals look set to show continued strength, particularly when it comes to gold.

Some people argue that lithium has become a bubble. But there is a bull case and it is something that is explored in this week's podcast from my colleagues at Palisade Capital.

This is the question posed by top broker Andrew Monk today. I put it down to associated Lenigas stink and the fact that its assets are just not that great. But over to the VSA expert who writes. 

On 15 December 2015 long time David Lenigas lackey Roland "fatty" Cornish floated, already Aussie listed, European Metals (EMH) on the AIM Casino on the back of its Cinovec lithium project in the Czech Republic.

Bacanora Minerals (BCN), the AIM and TSX-listed lithium explorer with assets in the Sonora province of Mexico, has stood out from its peers in the junior exploration space in recent years.  While share prices have collapsed all around it, this lithium play has maintained a market cap of £70 million despite having yet to release a PFS.   Part of this is because lithium was the hot commodity of 2015, but also because (as Peter Secker alluded to when this exact question was put to him at Gold and Bears) Bacanora has a "supportive shareholder".

There are number of reasons why Rare Earth Minerals (REM) is a slam dunk sell. So many that it is hard to know where to begin. But we might as well start with the macro scene and a very important article that appeared on this website a few minutes ago.

This podcast with the world's best known mining stocks fund manager Rick Rule of Sprott is explosive. Naturally I agree with him on gold and precious metals being close to the bottom but it is what he tells my colleagues at Palisade Capital about lithium which is the shocker. Rick reckons that there is massive over-supply, that lithium stocks are a fad and that this bubble will burst soon...are you listening David Lenigas?

John Meyer of SP Angel this morning comments on DiamondCorp (DCP) Ferrex (FRX), Lithium news and Tertiary Minerals (TYM) as well as offering a detailed macro view on the news that is shaping global mining and the AIM mining pond. 

Another hat tip to reader Rudyard. Jabba The Hutt, aka, David Lenigas is a share promoter, and a good one – so far at least - , but the result is that shareholders in things like Rare Earth Minerals (REM) can end up over-paying. There is no doubt that the Sonora lithium deposit is very large, and in the fullness of time could generate substantial value.   But that misses the point, which is that Rare is an investment company and one should therefore look at the share price in terms of the current market value of the individual components.  This is important when you can get access to the same assets via investing directly, in other listed companies. 

John Meyer of SP Angel this morning comments on Atlantic Coal (ATC), Herencia Resources (HER), Kefi Minerals (KEFI), Obtala Resources (OBT) and Weatherley (WTI)  as well as offering a detailed macro view on the news that is shaping global mining and the AIM mining pond and some thoughts on lithium. 

Entrepreneurial lithium hopeful Bacanora Minerals (BCN) says it is poised to embark on a feasibility study for its Sonora lithium project on north-eastern Mexico after hoisting indicated resources there 337% to five million tonnes of lithium carbonate equivalent (LCE) in clay at an average 2,600 parts per million.

With a hat tip to reader Rudyard, I now lay out the bear case for Rare Earth Minerals (REM), another David “Green  Hair Services” Lenigas AIM Casino counter that is monumentally overvalued. The fat aussie share ramper Jabba The Hutt insists he has no need to issue shares. The maths suggests he has to. The shares should fall by 75%. 

It seems to be open season on David "Green Hair Services" Lenigas (pictured left). Today top broker Andrew Monk of VSA Resources who is a mega bull of lithium has taken Rare Earth Minerals (REM) and Bacanora Minerals (BCN) off his buy list just because of the Lenigas factor. And he has also stuck the knife into jabba the hutt, notably on UK Oil & Gas (UKOG). Mr Monk writes:

Amid the general commodity gloom, entrepreneurial Mexico-focused lithium hopeful Bacanora Minerals (BCN) is making distinctly optimistic noises after reporting a C$2.7 million (£1.3 million) loss for the year to June. Chief executive officer Peter Secker says the company, which floated on AIM last year with a £4.75 million placing at 33p, half its then price on the Toronto Venture Exchange, and now trades at 86p, faces ‘highly favourable demand dynamics, as a result of the vital role lithium plays in growth industries, such as mobile communications, electric vehicles and energy storage.’

Entrepreneurial Rare Earth Minerals (REM), headed by controversial Australian resources player David Lenigas, has spent £324,500 lifting its stake in fellow AIM counter Bacanora Minerals (BCN), as work speeds up at Bacanora’s Sonora lithium project in northern Mexico. Following Bacanora’s milestone agreement to supply Tesla Motors, US maker of electric vehicles, with lithium hydroxide for the batteries they need, the Sonora participants have mobilised a second rig to accelerate drilling the second nine holes of an 18-hole programme as part of a pre-feasibility study on the project, which should be completed in the first quarter of next year.

Tesla Motors, US maker of electric vehicles, has agreed to buy lithium hydroxide for its batteries from AIM-quoted Bacanora Minerals' (BCN) Sonora lithium project in northern Mexico. Financial and other details of this agreement, which is for an initial five years and renewable after that, remain for some reason shrouded in confidentiality, but Colin Orr-Ewing, Bacanora’s chairman, calls it ‘a vital and monumental step forward in commercialising the large lithium resources which the company holds.’

Other commodities may be plunging and testing six-year lows. But lithium, in demand for storage batteries, mobile devices, electric vehicles and ‘smart electricity grids, is proving a notable exception so far, with prices paid by key Chinese users this year ranging from $5,000 (£3,205) to $6,500 a tonne, up from $3,000 at the turn of the century. That is why entrepreneurial Bacanora Minerals (BCN), backed by controversial David ‘Gatwick Gusher’ Lenigas’s Rare Earth Minerals (REM), is setting up a starter operation at its Sonora project in North East Mexico.

In an email he recently sent Andrew Monk wrote: Now I know the idea of a Junior Mining company isn't most people’s cup of tea right now......but you need to think about this and see them. I'm telling you (and have been for a while) the battery world is coming and this is as big a change as the Internet and mobile phones and look at the returns that were made there. 

AIM candidate European Lithium wants to attract retail investors to its planned £5 million float fundraising this summer to develop the Wolfsberg lithium project in Austria and tap into a market which mining consultant Roskill sees as growing by more than 10% a year. Private punters will be able to use online PrimaryBid platform provided by Darwin Strategic, part of the Henderson Global investment group, to buy shares in the company, which intends to finalise the pricing and other terms of the issue imminently, with VSA Capital as broker and ZAI Corporate Finance as AIM nominated adviser.

A bullish resource update from Bacanora Minerals (BCN) for its Sonora lithium project in Mexico has comforted fans who have fuelled the shares’ AIM rally from below 40p in late November to 88p now. Chaired by veteran sector player Colin Orr-Ewing and backed by equally entrepreneurial fellow AIM counter Rare Earth Minerals (REM) and its colourful Australian boss David ‘Gatwick Gusher’ Lenigas, the company says ubiquitous consultant SRK carried out the report on Sonora, identifying an indicated resource estimate of 1.2 million tonnes of lithium carbonate equivalent (LCE) with an average 2,200 parts of LCE per million parts of rock plus a more tentative inferred resource estimate of 6.3 million tonnes with 2,300 parts per million.

So second day back at school and today I will give you my thoughts on the Mining sector which really has had a torrid time for about 3 years now and you have to start thinking it cant keep falling forever..............but that also doesn't mean it is ready to be invested in.

I find myself feeling more like a bear or worse Victor Meldrew by the minute, Today I read the RNS feed only to find what can only be described as an odd release. Rare Earth Minerals (REM) announced: 

I penned a piece on bulletin board favourite Rare Earth Minerals (REM) in July of this year at a share price of 1.65p and I called it to 0.5p because I reckoned the market had been overhyped on the lithium valuation. Ok, we didn't get the 70% tanking I was expecting but we did get a stonking 48% decline because the share price is now only 0.88p, proving my call was right.

Entrepreneurial AIM and Toronto counter Bacanora Minerals (BCN) has commissioned Canadian multi-national engineering consultancy Hatch to advise on its two key ventures in northern Mexico, the $140 million (£89 million) Sonora lithium project and the Magdalena borate project. Chairman Colin Orr-Ewing, who hopes if possible to have a feasibility study on at least one these projects out before the end of the year, stresses the significance of having Hatch, whose $35 billion of contracts include Aussie-listed Galaxy Resources’ lithium plant in China’s Jiangsu Province, to help achieve its goals.

Today I purchased a second packet of shares in Bushveld Minerals (BMN) so I am talking my own book. But this book is full of twists and turns and Bushveld has mind-blowing potential. I covered Bushveld shortly ago along with Ferrum Crescent (FCR) HERE after a vanadium financial study was released and now I have had time to digest and trawl the data, the numbers are truly mind-blowing and need looking at again.

Early birds and arbitrageurs got the worm when Bacanora Minerals (BCN) floated on AIM on Friday 25 July, with a £4.75 million fund raising at 33p. This is little more than half its price on the Toronto Venture Exchange, where it has traded for three years, and it surged immediately to 82p, to give a stock market value of some £65 million. The company, steered by veteran entrepreneur and chairman Colin Orr-Ewing, is out to commercialise two projects in Mexico, to produce two versatile products, borate with applications ranging from fibreglass to skin cream, and  lithium, for electric vehicle batteries, and insists the float price was agreed in May before excitement about the London issue sent the shares soaring in Canada.

I am not an expert so do not take this as a buy tip. If I was forced to be a bull or a bear I’d be a bull. But I certainly would not be selling this stock at 1.25p. James Parter was clearly RIGHT to say sell at 1.65p HERE, but at 1.25p?. Indeed I can see a case for having a very small flutter on Rare Earth Minerals (REM) now on a 2 week view.