England Recycling Rates Decline for the First Time

Recycling rates in England have dropped from 44.8 percent to 43.9 percent, marking the country's first-ever decline. With this decrease, the UK will likely miss its EU target of recycling at least 50 percent of household waste by 2020.

To help the country get its numbers back on track, waste company Suez is calling for a tax on packaging manufacturers.

The Guardian has the details:

Recycling rates in England have fallen for the first time ever, prompting calls for a tax on packaging and meaning EU targets are now almost certain to be missed.

The amount of rubbish sent to recycling plants by householders had been steadily increasing for more than a decade, but more recently flatlined for three years. Now new government figures published on Thursday show that the recycling rate in England has dropped from 44.8% in 2014 to 43.9% in 2015.

Gold-Futures Selling Exhausting

Speculators' extreme gold-futures selling has been the dominant driver of gold's steep post-election plunge. Their near-record rush for exits blasted gold lower so fast that investors were spooked into fleeing.

But speculators' epic futures long liquidation that crushed gold sure looks to be exhausting itself. So many gold-futures longs have been dumped that there simply aren't many left to sell.

Once speculators' aggressive gold-futures selling ceases, gold prices will stabilize which will arrest the parallel investor selling. That decisive bottoming will pave the way for gold's bull market to resume.

Gold has suffered brutal, withering selling pressure in the month following the U.S. presidential election. The stock markets' surprise surge after Trump's surprise win has led speculators and investors alike to rush for the gold exits. As usual the former group's extreme selling came largely through gold futures. But this gold-futures dumping has been so severe that it is rapidly exhausting itself, a bullish omen for gold.

Gold's stunning post-election selloff resulted from a united mass exodus by gold's two dominant groups of traders. Speculators ferociously dumped gold futures with an intensity rarely witnessed, while stock investors jettisoned shares in the leading SPDR Gold Trust ETF (NYSEARCA:GLD) far faster than gold itself was falling. With so much gold being spewed into the markets so rapidly, this metal didn't have a chance of staying on its feet.

Gold futures had actually skyrocketed on election night, up 4.8% to $1337 as Trump's perceived odds of winning started to soar. But once the plummeting stock markets rebounded violently, the gold selling began. And it soon intensified after the election. Not only did stock markets shockingly surge to new all-time record highs, but the U.S. Dollar Index blasted up to a major new 13.7-year secular high of its own.

Gold has always been a contrarian anti-stock trade. As a rare asset that moves counter to stocks, gold's critical investment demand is heavily dependent on stock-market fortunes. Investors alternatively flock to gold to diversify their stock-heavy portfolios when stock markets fall, and then abandon it as stocks soar again. The exceedingly-strong post-election stock markets swiftly slayed gold investment demand.

Record stock-market highs breed extreme euphoria and complacency. Traders naturally start to believe stocks do nothing but rally indefinitely. Thus their interest in deploying capital in counter-moving gold fades to oblivion. And since investment demand fueled the great lion's share of gold's new bull market this year, this metal couldn't stand without it. Gold's recent cratering resulted from euphoric stock sentiment.

While speculators' extreme gold-futures selling and investors' extreme GLD-share selling over the past month share the blame, that's too much to cover in a single essay. So this week I'm focusing on the gold-futures side. While the massive post-election gold-futures dump was miserably painful, it looks to be exhausting itself which is very bullish. The finite supply of gold futures to sell is rapidly dwindling.

Gold futures have a wildly-outsized impact on gold prices, dominating short-term action. Futures offer radical leverage far beyond the decades-old legal limit in the stock markets of 2.0x. Every gold-futures contract controls 100 troy ounces of gold. At $1175, that's worth $117,500. But the maintenance margin required to own each contract is just $6000 this week, enabling maximum leverage running way up at 19.6x!

And that's actually fairly modest for gold-futures trading, with 25x+ being common when gold hasn't just plunged. Even at 20x, each dollar of capital speculators trade in the futures market commands 20x the impact of a dollar invested in gold outright! So when speculators as a herd aggressively buy or sell gold futures, the gold price moves fast. Their collective amplified power to move gold is immense and unparalleled.

Exacerbating their utter dominance over this metal's short-term fortunes is the fact that gold's reference price traders watch is that very futures one. So when futures speculators bully gold around with their extreme leverage, investors are quick to react which intensifies gold's moves. Contrarian investors have long decried this blatantly-unfair-if-not-absurd gold-market structure granting futures speculators such supremacy.

Further complicating this whole messy situation, gold-futures speculators' trading activities are obscured by low-resolution data. Not only are their trades only reported once a week, but even that happens with a 3-trading-day delay! This effectively hides what gold-futures speculators are doing from wider scrutiny by investors and analysts. This lack of futures transparency has long been a serious problem for gold.

Because of gold futures' extreme inherent leverage, speculators must maintain an ultra-short-term focus to survive. At 20x, a mere 5% adverse gold move will wipe out 100% of their capital risked! So countless times when gold-futures trading on mere herd sentiment drives big gold moves, the day it happens the resulting volatile price action is wrongly and falsely attributed to fundamental changes in the world gold market.

Speculators' collective gold-futures positions are published late every Friday afternoon in the famous Commitments of Traders reports from the CFTC. Those are already old though, current to the week that ended the preceding Tuesday. Thus speculators' market-moving gold-futures trading activity is hidden for up to 8 trading days, which is inexcusable in this information age. Maybe Trump's people can fix this.

So by the time extreme gold-futures selling is unmasked, the resulting big gold plunge has already long been wrongly attributed to fundamentals which greatly damages sentiment for investors. This seriously retards gold investment demand, creating a vicious circle where selling begets selling. And that's what has happened to gold in the wake of the election. Gold selling is feeding on itself, driving even more selling.

This first chart looks at gold and its weekly gold-futures CoT data over the past couple years or so. The total upside bets on gold by both large and small speculators, gold-futures long contracts, are rendered in green. Their total downside bets, short contracts, are shown in red. Gold just suffered its third major plunge this year for the same reason the first two happened, extreme selling by gold-futures speculators.

This longer-term perspective is essential for understanding what's happened to gold in the past month since the election. Note above how gold prices are heavily positively correlated with speculators' long contracts in gold futures. When they collectively ramp up their upside bets, gold surges higher. Then later when they sell these ultra-leveraged longs, gold plunges. Nothing is more important for short-term price action!

While speculators' downside bets on gold through futures shorts are smaller, they have the same gold impact but in the opposite direction. Gold prices are heavily negatively correlated with speculators' gold-futures shorts. When they effectively borrow gold they don't own to short sell it in the futures market, gold is pushed lower. Later when they buy offsetting long gold-futures contracts to cover their shorts, gold climbs.

In the gold-futures market, the downside price impact of selling long contracts and adding short ones is identical. Between January 2015 and December 2015, gold fell 19.3% largely because these futures speculators sold 90.9k long contracts while adding 107.0k short ones. That works out to the equivalent of 615.5 metric tons of gold, nearly 1/5th of 2015's total global mine production! That can't be absorbed fast.

Last year's intense gold-futures selling by speculators, much of which happened on Fed-rate-hike fears, ultimately pushed gold to a deep 6.1-year secular low a year ago in mid-December. Gold bottomed the very next day after the Fed's first rate hike in 9.5 years, entering a new bull market that flourished in much of 2016. By early July, gold had powered 29.9% higher to hit its best levels seen in 2.3 years.

What helped fuel gold's strong new bull run in addition to surging investment demand? Heavy-if-not-extreme gold-futures buying by the speculators! Over that span they added 249.2k long contracts while covering 82.8k short ones. That works out to the equivalent of 1032.6t of gold buying, nearly tripling the parallel 351.1t build in that GLD gold ETF's physical gold-bullion holdings over that same bull-market span!

Speculators' enormous gold-futures buying pushed their long contracts to an all-time record high 440.4k in early July. Right after that CoT report was published, I wrote an essay warning about the resulting record selling overhang gold faced. While that was a hardcore contrarian stance in the midst of gold's mid-summer euphoria, if speculators exited their record longs fast gold was threatened with a serious selloff.

Amazingly part of speculators' mass exodus from their excessive gold-futures longs tarried all the way until early November's presidential election! That's pretty shocking, and I never would have predicted such an unprecedented delay last summer. Overall between early July and the latest CoT report, the speculators have sold 165.1k gold-futures long contracts while adding 7.3k short ones. That's serious selling.

With each gold-futures contract controlling 100 ounces of gold, speculators have spewed the equivalent of 536.2 tonnes of gold into the markets! And much of that slammed gold almost all at once following the election surprise. Gold plunged after Trump's win because futures speculators ran for the exits. I really suspect the GLD investors wouldn't have fled in sympathy if futures speculators hadn't paved the way.

Thankfully this extreme gold-futures selling looks wildly overdone. Speculators hold only so many gold-futures long contracts, this supply of paper gold is very finite. And once all the weak-handed traders susceptible to being scared into selling low have largely exited, this extreme futures selling will dry up. As this next chart zooming in to the past year shows, odds are this gold-futures selling is exhausting itself.

After speculators' gold-futures longs hit their all-time record high in early July, they surprisingly defied the odds to hold near those levels for several more months. In the past big surges of long buying were short-lived, soon collapsing. But there was a lot of conviction gold's young bull was heading higher, so speculators were loath to sell. Until early October, when gold drifted below key $1300 support triggering stops.

Since gold futures are so hyper-leveraged, speculators must run tight stop losses so they aren't quickly wiped out when gold moves against their bets. So there was a huge cluster of long-side stops set right under $1300. As the initial stops were triggered, the resulting selling accelerated gold's losses. This in turn tripped more stops, exacerbating gold-futures selling. And the result was early October's mass stopping.

That alone was an extreme and rare event, and should've flagged a major bottom within an ongoing gold bull. And indeed it did for over a month, with gold initially grinding higher along key support at its 200-day moving average before surging into the election as Trump's perceived odds of winning grew. It's hard to believe now, but remember pre-election everyone feared a Trump win would be disastrous for stocks!

But early the morning after the election, stock-index futures started soaring. One elite multi-billionaire investor had seen stock-index futures limit-down at 5% losses, and left Trump's party to deploy $1b into stock-index futures in the middle of the night. Then Trump's victory speech was not only magnanimous, but he claimed Clinton had called and conceded. Stock futures started to soar with no contested election.

That's when the heavy gold selling started. After rocketing up nearly 5% on election night on big safe-haven buying as stock markets burned, speculators rapidly exited those gold-futures longs. In the first full CoT week after the election surprise, they dumped a staggering 45.9k long contracts or nearly 1/7th of their entire positions! That was epic, the 6th-largest long liquidation out of 933 CoT weeks since early 1999.

While that extreme mass exodus from gold-futures longs abated to just 0.6K contracts in the second CoT week after the election, it accelerated again in this latest one. That was current to November 29th, which was the newest CoT report available when this essay was published. Speculator long dumping ramped right back up to 19.0k contracts, right on the edge of the 20k+ contract single-week moves that are huge.

This resurgence in speculators dumping gold-futures longs was likely due to the outsized impact their earlier selling had on gold sentiment. Unfortunately that initial massive wave of selling in the week right after the election was wrongly interpreted at the time as gold's fundamentals deteriorating. That scared the institutional investors owning GLD shares, so they started to exit en masse on bearish futures-driven sentiment.

The heavy GLD selling during Thanksgiving week as a result of the extreme gold-futures selling the week before forced gold low enough to get the gold-futures speculators fleeing again! This is a perfect example of the selling-begets-selling vicious circle that sometimes ignites in gold. In the 3 CoT weeks reported since the election, speculators jettisoned 65.6k long contracts or nearly 1/5th of their election-day bets.

But odds are this extreme gold-futures selling is exhausting itself. Out of all the gold-futures longs the speculators added in gold's entire young bull between last December and early July, a staggering 66.3% have been unwound. Nearly 2/3rds of long-side gold-futures buying fueling 2016's gold bull has been reversed! That's staggering, leaving speculators' collective upside gold bets at 275.3k contracts per the latest read.

That's really low on multiple fronts. Speculators' gold-futures longs have never and will never retreat to zero, as there is always some base demand for leveraged gold upside. During 2015 for example, deep in a major bear where gold bearishness was epic, speculators' gold-futures longs averaged 223.2k contracts. That's only 52.0k below current levels, guaranteeing the lion's share of the selling is behind us.

Assuming 2015's average long levels will be seen again, which is very unlikely in a new gold bull, then over 3/4ths of the maximum total speculator gold-futures long selling since early July's peak upside bets is behind us! But with gold still in a new bull market despite the super-anomalous post-election plunge, longs almost certainly aren't heading all the way back to bear-market levels. That's very bullish for gold.

Speculators' collective longs have fallen to a 9.0-month low, their worst levels since early March before gold formally entered new-bull-market territory at 20% gains off last December's secular low. With such a massive retracement already, it's hard to imagine much more selling. In most futures selloffs, early selling is the strongest as stops are triggered and weak hands flee. Then selling moderates once they're out.

The only thing that could potentially trigger more meaningful speculator gold-futures long dumping is significant new gold lows. But with gold pounded to a 10.1-month low this week, its worst levels since way back in early February, fully 62.3% of this gold bull's progress has already been erased! It's difficult to conceive of enough new gold selling materializing to push this metal much lower after such colossal technical damage.

And if speculators' extreme gold-futures long selling is exhausting itself and largely over, then gold is going to stabilize if not start marching higher. That will arrest the heavy differential GLD-share selling in response to gold prices spiraling lower. So when speculators cease dumping longs, odds are gold will carve a major durable bottom. That's likely happening now, and if not almost certainly by next month at the latest.

But gold does remain at risk of more gold-futures short selling. Since early July, speculators' total shorts merely grew by 7.3k contracts. During this latest CoT week, they were only at 107.5k which isn't too far above their 95k-contract bull-market support that has held strong since April. There are a couple potential upside targets for new shorting if some catalyst spooks speculators into believing gold is heading for a fall.

The highest spec shorts have been since gold's new bull market formally began in early March is 122.7k contracts. That's only 15.2k above the latest CoT read, not enough to ignite a major new gold selloff unless all this short selling happens within an hour or so. And in 2015, that dark bear year of hyper-pessimistic gold sentiment, speculators' shorts averaged 139.6k contracts. Even those levels aren't crazy-bearish.

Getting back to there would require 32.1k contracts of new shorting, which isn't huge compared to the 172.4k contracts of gold-futures selling already suffered since early July. The main potential catalyst for big gold-futures shorting flaring again is next week's FOMC meeting. The Fed is universally expected to hike rates for the first time in a year and the second time in 10.5 years, but that rate hike won't hammer gold.

This week federal-funds futures are implying a 93% chance of a rate hike next week, and it was way up at 99% as December dawned. So a rate hike won't surprise anyone, including speculators trading gold futures. The big risk comes from the accompanying quarterly Summary of Economic Projections, which shows where top Fed officials making decisions expect the federal-funds rate to be in the coming years.

The last SEP, or "dot plot", in late September showed Fed officials forecasting two rate hikes in 2017. Gold could see significant futures short selling if that increases to three. But if the Fed indeed hikes next week, it will have to be super-dovish in the rest of its communications to avoid spooking stock markets. Thus it's unlikely a hawkish SEP would be published the same day, greatly lessening the downside risk to gold.

Soon speculators and investors alike will realize how radically oversold gold is, and how anomalous its extreme post-election selloff was. These record-high stock markets literally trading at bubble valuations remain overdue to roll over into a new bear no matter what Trump does. And his proposed tax cuts and big government spending will ignite serious inflation. All of that is very bullish for gold investment demand!

While investors can certainly play the coming resumption of gold's young bull in that leading GLD gold ETF, individual gold stocks will really amplify gold's gains. While gold powered about 30% higher in the first half of 2016, the leading gold-stock index nearly tripled with a 182% gain! These huge gains were only reaped by smart contrarians willing to fight the crowd and buy low a year ago. The same is true today.

The bottom line is speculators' extreme gold-futures selling has been the dominant driver of gold's steep post-election plunge. Their near-record rush for the exits blasted gold lower so fast that investors were spooked into fleeing. But speculators' epic futures long liquidation that crushed gold sure looks to be exhausting itself. So many gold-futures longs have been dumped that there simply aren't many left to sell.

And once speculators' aggressive gold-futures selling ceases, gold prices will stabilize which will arrest the parallel investor selling. That decisive bottoming will pave the way for gold's young bull market to resume. Investors will soon realize their radical underinvestment in gold isn't very wise, especially with wildly-overvalued stock markets trading at euphoric record highs. New investment demand will propel gold far higher.

Finland's first solar power investment fund set up by Evli and Nordic Shine

Finnish Evli Bank has become the majority shareholder in Finnish solar company Nordic Shine, as the two companies combine to create the country's first ever solar investment fund, to expand the possibilities of distributed solar within the country.

Solar has yet to take off in Finland. A handful of rooftop systems and community solar projects make up the entire market, but with Finland's first ever solar investment fund for distributed solar being launched, solar deployment may be about to pick up.

The fund, EAI SOLAR I limited partnership, is being launched by Evli and Nordic Shine, and will offer property owners and tenants the opportunity to invest in distributed solar projects without releasing too much of their own capital. It is also open to investors, who are seeking a stable return on solar investments.

With existing experience in the market, Nordic Shine will take care of operation and maintenance of the PV arrays throughout the contract period. Major Finnish property management firm, Ovenia Group, has already agreed to offer the fund's model to its clients.

"Our service model enables transparent allocation of the benefits of solar power between the tenant and the owner regardless of property's lease agreement type," said Nordic Shine's partner Jussi Vimpari.

The aim of the fund is simple, it wants to increase solar deployment in Finland, and offer the public a means to adopt the clean energy technology. On top of that, it believes that distributed solar systems will help property owners reduce electricity costs, and reduce their environmental impact.

"The utilization of solar power in Finland has been slowed down by lack of financing alternative," commented Evli Alternative Investments Managing Director Tero Tuominen. "The fund offers a new finance and service model for distributed power production, which has substantially accelerated solar power investments."

Community PV projects already makes up a substantial 13% of Finland's entire solar power production. Outside of that, utility-scale PV is non-existent, as the largest installation to date is just 850 kW. However, this new fund is a step in the right direction, and may begin a trend of solar adoption within the country.

Germany's massive nuclear fusion reactor is actually working

A little over a year ago, Germany turned on the world’s largest nuclear fusion reactor and faced sharp speculation over whether the machine could function as intended. Now, tests conducted by US and German researchers confirm that the experimental Wendelstein 7-X (W7-X) stellarator is indeed producing magnetic fields that make controlled nuclear reactions possible, and with a high degree of accuracy and incredibly low error rate. With these test results, new confidence and hope are spreading through the renewable energy industry, as nuclear fusion could be the key to ending fossil fuel dependence worldwide.

W7-X is the first of its kind to be put into regular operation. Its processes mimic those that occur on the sun, which is a natural nuclear fusion reactor (or “stellarator”). A team of researchers from the US and Germany worked together to test the stellarator after it went online in order to learn whether it is capable of producing the sort of magnetic fields necessary to trap scorching balls of plasma long enough for nuclear fusion to occur. And it is.

Related: Germany’s Wendelstein 7-X stellarator passes new test, bringing us closer to nuclear fusion energy

The research team found that W7-X is generating magnetic fields just the way its design intended: strong, twisted, and 3D. “To our knowledge, this is an unprecedented accuracy, both in terms of the as-built engineering of a fusion device, as well as in the measurement of magnetic topology,” the researchers wrote in a report. Combined with an error rate less than one in 100,000, the tests conclude the W7-X stellarator has made history. It could become the first power plant on Earth to use little more than saltwater to create a safe, clean, long-lasting source of energy for generations to come.

Electronic Scrap Recycling Market - Advance Technology Evolve in E-Waste Recycling Trends in Future

This report aims to provide a comprehensive strategic analysis of the global electronic scrap recycling market along with revenue and growth forecasts for the period from 2013 to 2022. The proliferation of computing and electronic devices such as smartphones, computers, tablets, televisions, small home appliances, digital cameras, music players, and laptops; shorter product lifecycles; and government legislations governing electronic waste (e-waste) are major factors influencing the electronic scrap recycling market. Hardly any electronic and electrical product does not contain metals or is not dependent on metals for its manufacturing. In e-waste recycling, damaged and unusable electronic and electrical products are processed and the metals they contain are extracted for use in new products.

Electronic and electrical products are progressively part of our life. In order to ensure that they have only a minimum impact on environment, end-of-life electronic products must be processed and the metals they contain must be recycled. The total volume of e-waste is increasing globally, but the number of smelters available to process it is very small.

In recent years, collected and scrapped electronic products have accounted for the largest increase in material type, primarily in the form of printed circuit boards (PCBs) from mobile phones and computers. Boliden Group (Boliden Rönnskär) has been melting out different types of recycling materials since 1960. The company owns technologies developed in-house, as well as an extensive capacity to process different type of materials.

This research study on the global electronic scrap recycling market provides a detailed analysis of how recycling and smelting companies in different regions are using electronic scrap for the extraction of different types of ferrous, non-ferrous, and precious metals from electronic scrap. The report offers an in-depth study of the market drivers, restraints, and growth opportunities. Using these factors, the report identifies various trends expected to impact the market during the forecast period from 2015 to 2022. The report includes a comprehensive coverage of the underlying economic, environmental, and technological factors influencing the electronic scrap recycling market.

It provides the competitive landscape of key players in the electronic recycling market in order to highlight the state of competition therein. The report also provides a detailed competitive analysis of the key players in electronic recycling and identifies various business strategies adopted by them. The study explains the penetration of each market segment within various geographies, and how these segments have accelerated the growth of electronic recycling market.

Interpret a Competitive outlook Analysis Report with PDF Brochure:

Based on the materials extracted, the electronic recycling market is segmented into ferrous, non-ferrous, and precious metals. Based on the type of electronic products, the market is segmented into IT, office equipment, and handheld devices; large electronic appliances; small household appliances; and other appliances.

The office, IT equipment, and handheld devices segment consists of computers, laptops, smartphones, tablets and other office related electronic equipment. The large electronic appliances comprises televisions, refrigerators, air conditioners, video, audio equipment and other equipment. Small household appliances include toasters, vacuum cleaners, and coffee machines and other appliances. The others segment includes lighting, electric fittings, and automotive equipment. The report aims to provide a comprehensive, cross-sectional analysis of the electronic scrap recycling market across major geographies such as North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.

The report includes an overview of the market strategies, annual revenues, and the recent developments of key companies operating in the market. The key market participants profiled in this study include Boliden Group, Umicore N.V., Dowa Holdings Co., Ltd., Ultromex Ltd., LS-Nikko Copper Inc., Glencore Xstrata Plc, Enviro-Hub Holdings Ltd., Outotec Oyj, Mitsui & Co., Ltd., Mitsubishi Materials USA Corporation, Aurubis AG, and JX Nippon Mining and Metal Corporation.

The report provides a comprehensive analysis of the raw materials feed, smelting, and refining processes pertaining to the recycling of electronic scrap offered by these leading players. Information on research and development activities, business processes, and upcoming technologies for the extraction of various metals from electronic waste is also included in the report.

Ucore Rare Metals, Able to Produce Critical Metals & REE in the US

Ucore Rare Metals [TSX-V: UCU] / [OTC: UURAF] continues to make confident strides in the commercialization of its Molecular Recognition Technology ("MRT") platform, contained in an enterprise to be co-owned between Ucore and IBC Advanced Technologies, Inc. Key to the enterprise is that it has exclusive rights to deploy the entire SuperLig®/MRT catalogue of metals separation products to monetize tailings applications anywhere in the world, in addition to mining and recycling applications in the REE and PGM sectors.

With over 60 SuperLig® products already developed for a wide range of metals, the opportunity is a large one, and Ucore is pursuing a technology licensing plan to get MRT in to the maximum number of applications. Diverse applications include inserting MRT directly into operating facilities (and/or bolting MRT onto the back-end waste handling function), recycling, remediation and, "urban mining," which entails separating high-value metals ("HVMs") such as Heavy REEs, PGMs, lithium, cobalt and tungsten.

There are a handful of mission critical REE, green energy & high-tech metals that could become difficult to reliably secure under certain adverse circumstances. Some examples from my review of various (mostly government agency) reports, the REEs dysprosium, yttrium, erbium, europium, terbium pop up a lot. Oil was of crucial importance in last century's wars, will electric battery components and REE be this century's show stoppers? It's no secret that in addition to an insatiable need for various REE, the U.S. Department of Defense ("DOD") is front and center in the analysis and adoption of EVs for military, national defense, homeland security & communications activities.

In addition to its broader vision to license MRT technology in to multiple metals sectors, Ucore has a near term agenda focused on accessing some of the highest demand HVMs in the U.S. On November 15th, the Company announced it has engaged in planning & development of a Strategic Metals Complex ("SMC"), capitalizing on the MRT platform developed for the recently completed SuperLig One pilot plant in Salt Lake City. The SMC will be a commercial production plant designed to separate feedstock containing critical rare earth elements /metals ("REE") (e.g., dysprosium, neodymium, terbium), and PGMs (rhodium, palladium & platinum).

This is proof that Ucore is ready to roll, detailed engineering work is well underway. Initial feedstock is expected to be sourced from, "recycling, swarf and tailings-generation partners in the automotive and REE permanent magnet industries." Ucore technology partner IBC has extensive experience in this area, for instance in PGM applications used successfully by operators such as Impala Platinum in South Africa. The potential economics for MRT plant placements are impressive. Based on my experience with similar licensing platform agreements, annual royalty fees of between 2% and 5% are fairly common. That, and an upfront licensing fee, plant design & maintenance fees, and recurring revenue from the sale of proprietary materials and services. In my opinion, mandates with large companies like Teck Resources (NYSE: TCK) could easily have Net Present Values in the tens of millions of dollars.

President/CEO & Director Jim McKenzie commented,

"Our pilot facility provides a blueprint for construction of a new generation of SuperLig® separation facilities to add to already-existing MRT installations around the globe. This Strategic Metals Complex represents not just a transition by Ucore towards near-term production and revenue, it represents a reaction to a very real domestic need for high-purity energy metals. In turn, the SMC represents a significant progression for Ucore, capitalizing on the innovative design of SuperLig®-One, and leveraging this platform in to full scale production."

My interest in Ucore is reinvigorated. Simply stated, MRT is faster, less energy intensive, generates fewer emissions and waste, does not use solvents or toxic chemicals, has a smaller surface and environmental footprint, requires less cap-ex and will enjoy lower op-ex. Now here's where things get more interesting. While an important theme underpinning Ucore remains the same, I believe it takes on new urgency with the election of Donald Trump. That theme being- Security of Supply of indispensable REE and critical green energy / high-tech metals. Few may realize that China not only controls, but completely dominates, the global supply of rare earth oxides, includes mining, processing & refining.

It's reported that over 95% of pure, separated REE produced last year were in China, REE in the hardware and software applications enabling National & Homeland Security and the capability of conducting both offensive and defensive military operations.

In addition to the paramount importance of knowing where one's electricity, food & water come from, and the risk of supply disruptions therein, knowing which REE and other HVMs our modern society cannot live without, is necessary and prudent. In World Wars I & II, people knew exactly which materials were essential to the war effort, tin, rubber, aluminum & steel, among others.... Does the West need to enter into a "hot" war to learn which metals are in fact critical?

Which critical metals will be most vulnerable to steady, secure supply to the U.S. DOD and DOE?

Am I being alarmist with the talk of WW III? Perhaps, but no matter what the future holds, I think that Ucore Rare Metals is well positioned to thrive in a world becoming more dangerous and more dependent on technology, with no end in sight. Investment funding for companies like Ucore are increasingly becoming available, for example this "Innovation Summit" organized by "America's largest angel investment fund, representing over $2.5 billion in early-stage, high-risk technology funding..."

Regardless of what readers think of Mr. Trump, he has explicitly stated things that favor larger military budgets. Without further commentary, here is what he has said, 1) Japan and Korea should strongly consider defending themselves 2) western Europe is not paying nearly enough for the military protection provided by the U.S. 3) given items 1, & 2, the belief that the military has been meaningfully underfunded and is in desperate need of a face lift. In addition to National Defense considerations, remember that Trump is gunning for China as well.

A larger U.S. military budget correlates well with larger military expenditures around the world. That's why a group of 6 well known military and homeland security stocks including Raytheon (NYSE: RTN), Lockheed Martin (NYSE: LMT), Harris Corp (NYSE: HRS) L-3 Communications (NYSE: LLL), Rockwell Collins (NYSE: COL) and General Dynamics (NYSE: GD) is up 15% since November 8th, vs. the S&P500, up 4%. Why should it be any different for Ucore, on the leading edge of new, green, high-tech platforms that will shape global geopolitics and our technology paradigm for decades?

Finally, readers might recall that President-elect Trump said he will designate China a "currency manipulator," and slap a 45% tariff on Chinese imports. Given that country's giant pile of U.S. Treasuries, and its control and utter dominance of all things REE, a trade war with China could be a dangerous undertaking.

As has been reported in detail by Ucore, REE and hard to replace or substitute HVMs are essential ingredients in a large and growing number of DOD & Department of Energy ("DOE") applications, not to mention in mining and industrial settings. Also contained in prior Ucore press releases is evidence that its MRT platform has been proven and independently verified, at pilot scale and ready for production scale in the near future.

What makes MRT superior to other proposed solutions? Relying heavily on last century's separation technologies like solvent extraction is an ill-advised and increasingly non-viable strategy, especially in China. It's impossible to ignore the horrendous air and water pollution, perhaps the worst on the planet, in Chinese cities. Not only is China de-emphasizing coal and going all-in on nuclear power, it already leads the world in wind and solar power and the electrification of its transportation sector. MRT is not only greener, it will deliver desperately needed security of supply to global end users, especially in the U.S.

Just-in-time processing and supply chains are the norm. Turning complex facilities and integrated systems off, and on, is time consuming, costly and introduces unnecessary operating risks. It's alarming that U.S. agencies, both inside and out of the DOD, not to mention powerful industry trade associations, have failed to address this critically important issue. The ongoing failure to obtain some semblance of security of supply is a clear and present danger.

Conclusion

The implications for REE mining and production outside of China, are profound. Ucore Rare Metals [TSX-V: UCU] / [OTC: UURAF] is in a prime position to 1) benefit from higher REE & HVM prices 2) be part of the solution of the rallying cry for security of supply, and 3) address increasing demand for products and technologies that accelerate the game-changing shift away from fossil fuels.

All roads lead to greater use of select metals like the ones mentioned, but also greater use of metals that galvanize steel and can be used in next generation alloys. However, perhaps most important to recognize, is that some of the REE/HVMs most in demand and most difficult to secure in the future, might not be on anyone's radar screen today. That's why the flexibility afforded by over 60 SuperLig® products embedded into Ucore's flagship enterprise with IBC on MRT is an increasingly important and valuable asset.

End note: Hiding in plain sight, China's monopoly on critical REE is a well-researched and reported topic.

ThreeConsulting.com Article April, 2016

BreakingDefense.com Article March, 2016

Russia Direct Article February, 2016

U.S. Government Accountability Office Report February, 2016

Disclosures: The content of this article is for informational purposes only. Readers fully understand and agree that nothing contained herein, written by Peter Epstein, about Ucore Rare Metals, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is to be considered, in any way whatsoever, implicit or explicit investment advice. Further, nothing contained herein is a recommendation or solicitation to buy, hold or sell any security. Peter Epstein and Epstein Research [ER] have never been, and are not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and they do not perform market making activities. Peter Epstein and [ER] are not directly employed by any company, group, organization, party or person. Shares of Ucore Rare Metals are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds.

At the time this article was posted, Peter Epstein owned shares in Ucore Rare Metals and the Company was a sponsor of Epstein Research. Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. While the author believes he's diligent in screening out companies that, for any reasons, are unattractive investment opportunities, he cannot guarantee that his efforts will (or have been) successful. Mr. Epstein & [ER] are not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article.

Retrace, a Xinova Spinout, Provides Data to Improve E-Waste Recycling

For all of its noble goals, the business of recycling old electronics and mobile phones is fraught with challenges and not very profitable. Retrace, a Seattle startup that spun out of Xinova earlier this fall, believes providing better data to recyclers and other players in the global market for used mobile phones will help.

"It's not necessarily as clean and green as everyone seems to think it is," says Michael Rubel, founder and president of Retrace. "Even the good players struggle with the compliance measures and it's a tough game, even for the big guys."

Xinova, formerly known as the Invention Development Fund, rebranded itself this fall as it completed its spin off from Bellevue, WA-based Intellectual Ventures, the patent aggregator and multifaceted invention shop of former Microsoft CTO Nathan Myhrvold. A mashup of the words for new in Chinese and Latin, Xinova is pursuing a new model for uniting research and development with commercialization in industries including IT, agriculture, and manufacturing. It connects its customers - ranging from startups to Fortune 500 companies - to a network of 10,000 experts in more than 30 countries to define and solve problems, and make better products and services.

The company, based in Bellevue with offices in Japan, Korea, China, India, Singapore, Australia, Germany, and Israel, spun out other startups including Coffee Flour, which is commercializing a byproduct of coffee production, and QSense, which makes technology to monitor and share air quality information. (We'll hear more about Xinova from executive vice president and head of global partnerships Paul Levins at Xconomy Intersect on Thursday. Learn more and register here.)

At Retrace, Rubel took a circuitous path to the business of providing phone makers, recyclers, brokers, and mobile carriers with data on flows of second-hand phones from one market to the next.

After a career as a Naval officer and nearly eight years working on innovation programs at Michelin, Rubel found himself at an Austin, TX, based e-waste recycler. He helped the company restructure, raise funding, and obtain certification from Sustainable Electronics Recycling International. He thought things were being done the right way, he says. They weren't.

"They were basically taking bad electronic waste, putting it in the back of a shipping container, filling the front end of it with teddy bears and cute little things that no one would ever notice and shipping it off to China and just not telling me about what they were doing," he says.

Several U.S. e-waste handlers were caught shipping e-waste to junkyards in places like Hong Kong and elsewhere in Asia that have weaker protections from the environmental and health impacts of scrapping old computer monitors, printers, and the like. The Seattle-based Basel Action Network (BAN) sniffed out the practice, which ran counter to assurances consumers were given about e-waste recycling, through the e-Trash Transparency Project, revealed last May.

After discovering the practice at the Austin company, Rubel resigned. But he still felt drawn to the e-waste recycling business. He founded Second Wave Recycling, which recycles a couple thousand donated phones each month, giving the proceeds to charities. While there, he was invited to review Intellectual Ventures' portfolio of intellectual property related to recycling. He ended up becoming an entrepreneur in residence at IV and began working on what would become Retrace.

The company's original idea was an e-waste marketplace to "to bring more transparency and efficiency to an otherwise struggling market," Rubel says. "Everyone needs to audit everyone else and so this whole audit trail - even though a good thing on one hand - really kept anyone from doing any business efficiently using technology. It was still very old-school. [You] have to fill out paperwork. It's got the little carbon copy underneath it."

Retrace decided to focus specifically on cell phones.

"Arguably cell phones are growing a lot quicker than any other e-waste category," Rubel says. "There's more value there. There's more trade internationally because they're lighter weight."

BAN says a million cell phones can yield as much as 20,000 pounds of copper, 550 pounds of silver, 50 pounds of gold, and 20 pounds of palladium. Smartphones in particular are often resold to consumers in emerging markets.

The biggest value Retrace saw in its marketplace was the data.

"I was watching the transactions go around the world and we saw pricing, we saw trade, we saw volume, and we saw models," Rubel says, adding, "This is a commodity, just like any other product."

The company now provides that data and analysis to customers throughout the phone recycling and resale supply chain.

"We're working on the ability to predict the future as far as what will happen when they launch the iPhone 8, where the best price is, and where the phones are going," he says.

Rubel credits Xinova for incubating Retrace as it sorted out its technology and business model - even though the business Retrace landed on doesn't use any of the initial intellectual property - and also with honing his skills as an entrepreneur. Before pitching investors, he practiced with the Xinova team members, many of whom have venture or corporate investing experience, and received "oftentimes brutal and honest" feedback.

That paid off when he went to pitch his business. Last month, the company announced that WaterStone Capital, an early stage venture firm with offices in Seattle, Beijing, and Shanghai, acquired a controlling stake in Retrace and paired it up with Miao Miao Cloud, a Chinese tech company that was also building a marketplace for mobile phone resales. The combination creates a global marketplace for second-hand phones and expands Retrace's market for its analytics tools.

Rubel says that a more efficient marketplace could help increase phone recycling rates.

"More consumers will want to recycle their phones because they'll realize there's more money in it when the carriers pull it from them," he says.

Egypt's latest vision for e-waste management

 Egypt's latest vision for e-waste management

Maybe it's broken and cannot be fixed. Maybe it costs more to maintain than to replace. Or maybe it's just old and you have bought a newer model. Either way, what do you do with electrical and electronic goods once you decide to get rid of them?

Here comes Dr. WEEE, a company specialised in electronic waste recycling. Its business model is designed to meet all market needs related to e-waste management. The company provides a comprehensive e-waste management service. They collect, sort, dismantle, and recycle as much of the components as possible while ensuring that the process from start to finish is as environmentally friendly as possible. The company also sells electronics-related products, such as ink cartridges, produced from recycled components.

According to Esam Hashim, co-founder of Dr. WEEE, every stage in the process has a business opportunity. He explained that Egypt forms the largest e-waste market in Africa and the Middle East, yet despite this he said most companies working in the field do not understand how to properly dispose of e-waste. "Companies that work with e-waste in Egypt use an old-fashioned way of extracting precious components, and their way of getting rid of dangerous components harms the environment," he said.

According to Hashim, many of these companies do not know that many of the components that can be extracted from e-waste are valuable - such as gold, silver, copper, platinum, titanium, copper, and iron - and instead due to a lack of knowledge and technology extract only copper and iron.

Dr. WEEE divides these components into three categories: base metals such as iron, copper, and steel; precious metals such as gold, palladium, and platinum; and hazardous components such as lead, cadmium, and batteries.

Rather than attempt to extract and separate these components, many e-waste management companies dispose of their waste by burning it, Hashim said, adding that older e-waste contains more precious metals than modern appliances and devices.

At first, the company tried to persuade Egyptians that they should bring their e-waste to them in order to be able to dispose of it in a way that mitigated the health and environmental risk factors; however, Hashim noted that the overall response was unenthusiastic.

When Dr. WEEE initially had trouble collecting e-waste, the company had settled to purchase such waste from individuals and companies alike. This eventually became a successful strategy for the company. Hashim said that most of the e-waste they receive comes from individuals and the private sector rather than government institutions.

For an older-generation mobile phone the company pays EGP15-20. Newer phones fetch EGP 30, and laptops can be traded in for EGP 25. Old monitors or televisions can be sold to the company for EGP 20-30.

Egypt is currently the largest market in both the Middle East and Africa. Producing approximately 370,000 tonnes in 2014, Hashim believes the country's share of e-waste will continue to grow.

The United Nations University study said South Africa is second on the continent, producing 350,000 tonnes in 2014, followed by Nigeria which produced 220,000 tonnes that same year.

Following their success in Egypt, the company has since established a franchise with a different model for every stage of the operation. Dr. WEEE now also operates in Lebanon, Jordan, Saudi Arabi, and the United Arab Emirates.

Hashim said that the company prepared many turnkey solutions in order to achieve the highest quality and to maximise profits.

The annual global volume of the e-waste generation is expected to reach 93.5m tonnes in 2016, according to a new report from Research and Markets. This estimate is more than double the 41.5m tonnes generated in 2011.

Hashim also said that global revenue generated from the sale and processing of end-of-life electronics is projected to double from its current $9.15bn per year to over $20bn over the next five years.

According to UNEP estimates, only 15-20% of e-waste is recycled, the rest goes directly into landfills and incinerators.

"Electronics recycling is now the fastest growing segment of the recycling industry," Hashim noted.

In terms of the company's vision for the future, Hashim said he wants to move forward in a way that maximises production efficiency, while also taking into account the environment and sustainability.

He believes that their technology is part of this belief that ensures that the company's products, employees and suppliers follow socially responsible business practices aimed at environmental preservation and sustainability.

"Through our experience in the field of waste management and business franchising, sharing our experience and technology with our clients is a win-win situation, especially in the most rapidly growing segment of the recycling industry," Hashim added.

While the company has expanded into other markets, Hashim noted that the company does not yet provide full services in their franchises outside of Egypt.

He noted that Egypt doesn't have the technology required to recycle all extracted components, and so the company's main target is to export their extracts to foreign countries.

Going green to make some green

Dr. WEEE still faces many obstacles, such as the establishment of collection points across the world and access to the latest technologies. Personnel training and awareness campaigns are therefore very important in order to continue being effective and profitable.

In order to raise awareness, the company promotes e-waste recycling in schools and private sector companies by holding environmental awareness campaigns. Hashim said he welcomed the government's receptive attitude towards the company's vision, saying they have signed an agreement with the Ministry of Environment and the Ministry of Communications and Information Technology to create a standard and set criteria for the best way to extract precious metals and export them.

Ultimately, Hashim says he wants to change consumer patterns from the current intensive consumption based model to more environmentally sustainable consumption habits. He believes his company can provide the model and motivation to help the informal waste management sector become more environmentally conscious, reducing the health risks while also increasing their profits.

By educating others on proper methods of e-waste disposal and recycling, companies can turn a bigger profit and contribute to improving the environment.

Gold price edges higher, investor focus turns to FOMC minutes

Gold was in positive territory on the morning of Tuesday November 22 in rangebound trading in London while investors await the minutes of the previous US Federal Open Market Committee (FOMC) tomorrow.

The spot gold price was recently quoted at $1,218.45/1,218.85 per oz, up $3 on Monday's close. Trade has ranged from $1,213.75 to $1,221.05 so far.

"Gold kept its head above water, with technical-based buying supporting the market. However, with the market increasing bets on a December rate hike in the US, this buying is unlikely to persist in the short term," ANZ said.

Investors will scrutinise the minutes from the previous FOMC meeting for hints on when and how quickly the Fed will raise interest rates. Market participants currently see a 95.4% chance of a rate increase in December, according to the CME FedWatch tool.

"With investors' dual focus on the buoyant equities markets and this Wednesday's FOMC minutes, gold and the rest of the precious metals have fallen out of favour. Consolidation... is likely to be the main driver leading into the FOMC minutes," Commerzbank said.

In currencies, the dollar index has eased since peaking at 101.49 last Friday, its highest since April 2003. It was recently at 100.70, down 0.12% on the previous close.

In the other precious metals, the spot silver price was up 20 cents at $16.860/16.880 per oz. Platinum climbed $12 to $944/954 per oz and palladium at $737/743 per oz was $15 higher.

The World Platinum Investment Council (WPIC) forecasts global platinum demand in 2016 to fall 3% year-on-year to 8,040,000 oz. It sees total platinum supply at a marginally lower 7,870,000 oz year-on-year, it said in its quarterly report today.

Total platinum supply in 2017 is seen dropping by 2% to 7,745,000 oz while mining supply will be flat year-on-year in 6,000,000 oz. Platinum recycling will decline to 1,745,000 oz, down 6% year-on-year, the WPIC predicted.

It forecasts total platinum demand in 2017 to fall 2% year-on-year to 7,845,000 oz, with projected growth in jewellery demand unable to offset expected declines in automotive, industrial and investment demand, the WPIC added.

Platinum market deficit set to shrink in 2017

Platinum market deficit set to shrink in 2017 - WPIC

* Platinum market expected to see 100koz shortfall next year * Diesel share of European car market tipped to fall * Bar, coin investment seen weakening in 2017 By Jan Harvey LONDON, Nov 22 The platinum market deficit will shrink to its narrowest since 2011 next year, the World Platinum Investment Council said on Tuesday, as a drop in investment and diesel's waning share of the European car market pressure demand. The WPIC also cut its expected platinum market shortfall for this year to 170,000 ounces from the 520,000 ounces predicted in September, citing a larger than expected drop in Chinese platinum jewellery demand, and higher recycling. That deficit will likely shrink to 100,000 ounces in 2017, it said, cutting above-ground stocks of the metal to 2.045 million ounces by the end of next year, the WPIC said. "It's all good and well to say that metal is available from above-ground stocks, but as soon as the vaulted holdings aren't for sale, any deficit makes for concern, especially from industrial users," the WPIC's director of research Trevor Raymond said. Autocatalyst demand is expected to decline 1 percent next year, the WPIC said, as diesel's overall share of the autocatalyst market shrinks. Demand for platinum for use in catalytic converters was flat this year, it said, in the face of concerns that last year's Volkswagen emissions scandal would dent demand for diesel cars, which use a higher loading of platinum in their autocatalysts. "At the moment, the 2016 percentage of diesels on European roads is 50 percent. Our forecast for next year includes a 48.5 percent diesel share, so that's a fairly aggressive fall," Raymond said. There has also been a move to other forms of emissions control technology, he said. Investment in platinum, which is expected to have risen 15 percent this year on the back of strong coin and bar demand, particularly in Japan, is forecast to fall by more than a quarter next year, the WPIC said. It expects bar and coin investment to lighten, and demand for platinum-backed exchange-traded funds, which tailed off recently after a strong start to the year, to be little changed. Overall platinum demand is tipped to fall 3 percent this year to 8.04 million ounces, the WPIC said. Jewellery demand is expected to slip by 10 percent, or 300,000 ounces, as buying in number one consumer China drops for a second year. On the supply side of the market, refined production by mining companies is predicted to have fallen 3 percent this year. The WPIC revised up its forecast for recycled platinum supply this year to 1.86 million ounces from 1.745 million in September, due chiefly to rising jewellery recycling in China. PLATINUM SUPPLY/DEMAND ('000 OZ)* 2015 2016 2017 (f) (f) Refined production 6,150 5,970 6,070 Change in producer inventory 45 40 -70 Total mine output 6,195 6,010 6,000 Recycling 1,710 1,860 1,745 TOTAL SUPPLY 7,905 7,870 7,745 Automotive demand 3,395 3,390 3,360 Jewellery 2,880 2,580 2,625 Industrial 1,685 1,720 1,610 Investment 305 350 250 TOTAL DEMAND 8,265 8,040 7,845 Balance -360 -170 -100 Above-ground stocks 2,315 2,145 2,045 * Source: World Platinum Investment Council, Platinum Quarterly Q3 2016

Platinum: A Fundamental Analysis

Summary

Platinum has been in a supply deficit for nine of the last 12 years, with 2016 expecting another deficit.Cost of production per ounce of platinum exceeds price per ounce.Above-ground stocks of platinum rapidly depleting.The platinum/gold ratio suggests platinum is cheap relative to gold and should correct in the near term.

In our current global economic environment, there has been sufficient distraction from the opportunity that platinum presents. With all the focus on Brexit, the woes of the EU, China's real estate bubble, gold, and the Fed's rate decisions (or indecisions), it is easy to understand how one could overlook the potential that platinum provides. In fact, according to theWorld Platinum Investment Council (WPIC), Platinum ETF holdings have been reduced over the last three quarters; paradoxically, these ETF outflows have been contrasted by sizable coin and bar purchases begging the question: who is right - physical or paper investors?

I believe there is persuasive evidence provided by fundamental and technical analysis that supports my assertion that platinum is set to rise in price in the area of 40% in the next four years. Leveraged miners should see gains far in excess of platinum's potential price move.

Overview of Platinum

Platinum is fifteen times rarer than gold and is costlier to produce. As a result, it has historically traded at a premium to gold. In the last 40 years, platinum has only been priced at adiscount to gold four times, each time lasting less than two years.

Global platinum mining supply is 70% sourced from South Africa, 13% from Russia, 8% from Zimbabwe, and the rest from various other countries. Platinum recycling also accounts for 23% of total global supply. Major sources of demand include 40% automotive (catalytic converters in exhaust systems), 35% jewelry, 20% industrial, and 5% for investment.

Platinum is, as of Oct. 18, trading at US$938.80/ounce, a $322.50 discount to gold which is trading at US$1,261.30/ounce. In other words, platinum is trading at a 26% discount to gold when it has historically traded at a 50% premium.

Demand

Demand for platinum has been stagnant for the last six years. A retreat in investment was made up by an advance in industrial use. The major source of demand for platinum is in the automotive industry as an anti-pollutant in catalytic converters. China is the largest fuel combustion vehicle market and shows little sign of stopping its growth in this industry. The China Association of Automobile Manufacturers reports this year's August sales, and production, to be up, year over year, 23% and 28.9%, respectively. Global car production growth is expected to slow, but 2016 is still anticipated to produce 89 million cars, up from 88 million in 2015.

Jewelry demand is up 3% in Q2 of 2016 from the prior quarter, indicating momentum. India, after a brief strike, has seen an astounding 25% year-over-year increase in Q2 2016 in platinum jewelry sales. A drop in the number of Chinese wedding registrations resulted in a 4% year-over-year decrease in platinum jewelry demand from this Q2.

Industrial demand has been making slow advances in recent years, increasing by 1% each quarter since Q3 2014. Industrial demand, in order from greatest to least, is sourced from chemical, medical, electrical, glass, petroleum, and others.

Platinum investment has seen three quarters of ETF outflows but these have recently tapered and are dwarfed by the increase in physical investment demand. In 2015, bars and coins increased by 525koz, while ETF holdings decreased by 240koz. Japanese coin and bar investors led demand in the first two quarters of 2016, recording an increase of 140koz and 110koz in Q1 and Q2, respectively. Interestingly, in the U.S., 10,000 American Eagle platinum-proof coins were made available this past June and sold out in under an hour. There seems to be a disconnect between investors who prefer physical platinum and those who prefer ETF holdings; the former being bullish and the latter bearish.

Given these figures, I believe platinum demand will grow slowly and modestly over the next few years as more motor vehicles are produced, jewelry-consuming Chinese and Indian middle classes grow, and significant investor interest returns, particularly from the ETF segment.

Demand (koz)

2013

2014

2015

2016* estimate

Automotive

3,165

3,300

3,405

3,390

Jewelry

2,945

3,000

2,880

2,885

Industrial

1,480

1,535

1,650

1,625

Investment

935

150

305

350

Total Demand

8,525

7,985

8,240

8,250

Source: World Platinum Investment Council

Supply

Global platinum supply has been fairly even for the last four years, with a dip in 2014 due to a five-month strike in South Africa. The strike, due to union wage demands, resulted in 1,200koz of lost production, equating to US$2.25 billion. Modest wage increases were agreed upon and are to be implemented over three years; normal operations and production have since resumed.

Total global platinum supply for 2016 is expected to be 3% less than in 2015. This is partly attributable to safety stoppages due to an increase in work fatalities in South Africa's major platinum region, Western Limb. In addition, the spot price of platinum is well below the cost of producing an ounce, which discourages producers to produce, reducing the supply (more on this later).

Platinum recycling provides 25% of the total global supply and seems to correlate with the price of platinum. Interestingly, the last two and a half years have seen jewelry recycling subdued to only 500koz, down from its average of 794koz for the prior four years. This could indicate that holders of platinum jewelry are of the belief that a price rise is due and are in wait. Steel is also seeing a price recovery, which lends incentive to scrap vehicles increasing platinum recycling in the short-term; however, the World Platinum Investment Council estimates platinum recycling to increase by a modest 2% in 2016.

I believe global supply will continue to decrease at a modest pace because the price of platinum per ounce is below the average cost of production per ounce: producers prefer to produce at a profit and slow down production and deleverage when their wares are in cyclical lows. Moreover, South Africa, supplying 70% of global mining supply, continues to harbor political, union, and economic risks posing a threat to future supply.

Supply (Koz)

2013

2014

2015

2016* estimate

Total Mining Supply (Total refined production net of producer inventories)

5,855

5,230

6,195

5,985

Recycling

1,980

2,035

1,710

1,745

Total Supply

7,835

7,265

7,905

7,730

Source: World Platinum Investment Council

The Deficit and Depletion of Above-Ground Stocks

As mentioned, platinum has been in a physical deficit for nine of the past twelve years, with 2016 expected to post another deficit. The last four years have seen deficits on average of 521koz, 6.8% of average total demand for the same period. Demand-supply imbalances affect pricing, which in turn corrects the imbalance: simple economics.

In platinum's case, large physical above-ground stocks have been delaying this self-correcting imbalance. Using 2016's expected deficit from the World Platinum Investment Council, the deficits have averaged 6.75% of total demand in 2013-16. This is a significant amount of demand not being met for numerous years. As a consequence, above-ground stocks are being depleted each year by the amount of that year's deficit. The depletion rate is starting to accelerate as deficits remain steady but stocks diminish, with full depletion in early 2020, by my calculations.

Once demand can no longer be met by these above-ground stocks, the price of platinum will be forced upward by the market. Due to the foresight of market participants, I believe this price increase will occur well before the above-ground stocks fully deplete as the market wakes up to the imbalance. This view is supported by the belief that platinum supply and demand is set to remain stagnant over the next year, maintaining the deficit. Have a look at the table below for an eye-opener.

Year

2013

2014

2015

2016

2017

2018

2019

2020

Total Demand

8525

7985

8240

8250*

8300*

8350*

8400*

8450*

Deficit

690

720

335

520*

566**

566**

566**

566**

Above-Ground Stocks

3450

2730

2395

1825*

1259*

693*

127

0

Depletion Rate

21%

12%

22%

30%*

45%

82%

100%

* Estimates using data from 2013-16

**The deficit of 566koz was derived from the average of 2013 through 2016

(All platinum figures in Koz.) Source: WPIC and personal calculations on estimates from 2017-20.

Costs of Production in Excess of Price

Another factor that will put upward pressure on the price of platinum is the current price of platinum being lower than its average cost to produce. Producers operate for a profit, as corporations are legally required to do. Therefore, if platinum is currently trading at US$938.80 and the cost to produce an ounce is around $1,209, producers are losing $270.20 each ounce they sell, a 22% loss.

This is unsustainable for any business and is forcing producers to deleverage and eventually reduce output. In fact, a brief glance at some top platinum producers' balance sheets shows severe deleveraging, retained earnings capitalization, and borrowing. Anglo American Platinum LTD, the largest producer, has seen its 2015 total assets fall below 2014's. Lonmin PLC has seen its 2014 total assets shrink from (in millions) 4,365 to 2,429 in 2015.

In any case, it is unsustainable and inadvisable to sell for less than what it costs to produce. Cheap debt, retained earnings capitalizing, and deleveraging can only keep the boat afloat for so long. Investors can expect a reduction in output, and thus, supply, leading to higher platinum prices, given a stable demand.

The Platinum/Gold Ratio

Historically, platinum has traded at a premium to gold due to it being rarer, having a larger industrial demand, and having a higher cost of production. There is a reason why it has been termed "rich man's gold."

Currently, the platinum/gold ratio is hovering around 0.76. Platinum hasn't traded at this deep of a discount since 1982. The lowest the ratio has been in recent history was 0.73 in 1985. Moreover, platinum has only traded at a discount to gold four times in the past thirty-five years, each time lasting less than two years.

Past performance can't tell us future performance, but trends do exist and can complement fundamental analysis. Platinum and gold's relationship does tell us that either gold is overpriced, platinum underpriced, or a new norm has begun. Gold could be overpriced, but it does serve as a hedge against equities and fiat currencies. Uncertainty isn't about to leave the markets, so I believe gold has found a strong resistance around $1,200/oz, but this is speculation. A new norm of platinum being priced below gold seems unlikely due to its rarity compared to gold, cost of production exceeding gold's, and historical trends. Therefore, it is likely that platinum is underpriced and a reversal of the discount-to-premium is likely in the near term.

The platinum/gold ratio hit its peak in January, 2001, at 2.34 and another sub-peak in May, 2008, at 2.31. I wouldn't expect to quite see these numbers, but even halfway of 1.17 would take platinum to $1,474/oz (gold at $1,260/oz x 1.17). This is a 53% increase from today's prices. According to PMTREND, the platinum/gold ratio has averaged 1.4 for the past 25 years. If gold remained at $1,260/oz, then platinum -- should it revert to its 25-year mean -- would be priced at $1,764/oz, an 83% increase from today's prices.

Words of Caution

I should make myself clear that I believe platinum has great potential in the short to medium term. In the long run, platinum does have some headwinds that should be considered.

Electric vehicles (EVs) don't need platinum and are gaining market share. Some believe EVs to rise to 35% of global car sales by 2040; however, in the next decade, the conventional car will still be a cheaper alternative to EVs and still dominate global sales.

Interestingly, Anglo American Platinum, Lonmin PLC, and Impala Platinum are investing in fuel cell tech, which, by combining oxygen and hydrogen over a platinum catalyst, generates electricity. Critics of this technology raise the issue of hydrogen refilling stations costing more than EV charging stations.

Platinum has a substitute for automotive applications: palladium. Palladium is currently trading at US$653.50/ounce. Therefore, it is a cheaper substitute but it has a higher sensitivity to poisons that renders it less effective than platinum in this regard. Moreover, palladium, also largely sourced from South Africa, has seen recent supply deficits that could see upward price action. Also, diesel vehicle catalysts can't use palladium and so provide a protective moat on platinum's automotive demand. Western Europe still has sales of diesel vehicles making 58% of the market.

In any case, I believe the use of platinum in the automotive industry won't subside in the medium term.

Conclusion

An analysis of platinum presents a strong case for a price increase in the near-term. The rapid depletion of above-ground reserves that are expected to run out in early 2020 will put upward pressure on platinum's price at a much earlier date. The average cost of production per ounce exceeding the price of platinum per ounce has been causing producers to deleverage and will force them to reduce supply; given a stable demand, this will put upward pressure on the price. Lastly. the platinum/gold ratio is near all-time lows at 0.76 and has never lasted below 1 for more than two years in the last forty years.

Investing in a platinum producer will magnify returns in a rising-price environment. I will be writing an article on prospective platinum producers in the coming weeks. If you found my article informative, I encourage you to follow me.

Commonwealth Computer Recycling Welcomes Jennifer Pratt to Team

Commonwealth Computer Recycling Welcomes Jennifer Pratt to Team

Pratt brings a wealth of experience in e-waste recycling, data destruction to growing company

Greensburg, PA - (ReleaseWire) - 11/28/2016 - Commonwealth Computer Recycling (CyberCrunch), a company offering a broad range of data destruction, e-waste disposal solutions, has added Jennifer Pratt to its sales team.

Pratt, who previously owned and operated her own document destruction business in the Washington, D.C. area, has years of experience in the recycling industry. In fact, she sold her company to a Fortune 500 firm just four years after its launch, reaching $2 million in annual sales.

At CyberCrunch, Pratt will be responsible for e-waste recycling and data destruction sales in the Metro Philadelphia and Baltimore/Washington, D.C. areas.

"We are very excited that Jennifer will be joining our growing company, as she brings a wide range of experience and expertise in this very niche industry," said Serdar Bankaci, President of CyberCrunch. "Jennifer knows what it takes to be successful in the electronics recycling and data destruction business, as she has demonstrated practical experience as a business owner. She will play a pivotal role with the company as we continue to grow and serve more customers throughout the Mid-Atlantic region."

Pratt has more than 20 years of experience in business development and sales management. This includes successfully networking, negotiating, marketing and building relationships with customers. In her career, she has sold to some of the largest businesses, organizations and government agencies in the world, including the White House, Federal Trade Commission (FTC) and Food and Drug Administration (FDA).

About CyberCrunch
CyberCrunch is an innovator when it comes to data destruction and e-waste disposal, finding previously untapped value in e-waste that allows it to provide customers with the best service possible. The company serves Fortune 1000 companies across the country, with solutions that include data destruction, IT asset disposal and e-waste compliance.

The company, which is R2 certified and a member of the National Association for Information Destruction (NAID), handles clients' hardware and sensitive data per the highest industry standards.

New waste recycling plant in Redditch earmarked for approval

PLANS to install a Material Reclamation Facility (MRF) processing up to 100,000 tonnes of waste annually at Weights Lane Farm in Redditch have been recommended for approval by Worcestershire County Council.

The proposal, by the owners of Redditch Skip Hire and Waste Transfer Station, would see six agricultural buildings, which are in the Green Belt, converted into a site covering some 7,809 square metres.

Currently the Waste Transfer Station handles approximately 25,000 tonnes of waste a year, and officers say the new proposals would fall within Government waste management guidelines.

The facility, just under two kilometres from the town centre, would accept construction and demolition waste, metals, wood chipping and timber, waste electrical and electronic equipment, tyres, plastics and plasterboard.

The unsorted / untreated waste would arrive by skip lorry, which would be weighed on a proposed weighbridge.

All sorting, washing, crushing and chipping would take place within the buildings while waste that could not be recycled would be taken to landfill and treated waste would be moved from the site via skip lorries for further processing and recycling at other waste management facilities or for use in manufacturing.

Any recycled materials would be sold on a pre-ordered basis and on-site sales would be prohibited.

In addition the proposal would lead to the creation of about 30 addition jobs.

The Campaign to Protect Rural England (CPRE) has objected citing development within the Green Belt.

Furthermore, the land lies within Bromsgrove district, and once that authority’s new Local Plan is adopted it would make it almost certain that housing would be constructed up to Weights Lane within the next 10 to 15 years and these would be affected by the HGVs travelling along Weights Lane and by the air and probable noise pollution caused by this proposal.

Network Rail has also objected due to fears of flooding the development might cause.

The plan is to be considered at the county’s Planning and Regulatory Committee at County Hall on Tuesday, December 6, 2016, at 10am.

Gold miners to hike investment in 2017

Gold miners to hike investment in 2017 

Spending will increase in 2017 as companies begin to catch up after deferring spending, largely looking inward at existing operations and projects, says Moody's. (Image: gualtiero boffi | Shutterstock.com)

Encouraged by better gold prices, global producers are set to increase capital spending next year with the rate at which they develop new mines and how those projects are funded being the top priorities, Moody's Investors Service says.

In its latest report, Moody’s notes that in addition to stronger prices, gold miners have benefitted this year from lower operating costs after focusing on cost cutting during a three-year slump in gold prices. As the precious metal is priced in US dollars, a stronger dollar has benefited miners based outside of the US.The average spot gold price through end of October 2016 was $1,273 per ounce, 10% higher than the average price of $1,160 in 2015. As gold miners' profitability is strongly tied to the gold price, this has resulted in the industry generating significantly stronger cash flows and earnings, boosting their credit quality, Moody’s says.

While the industry is generating significantly stronger cash flow, a trend that Moody's expects to continue next year, higher gold prices alone will not result in ratings upgrades.

Source: Moody's Investors Service

"How companies use their funds will be a very important factor in the ratings assessment," said Jamie Koutsoukis a Vice President and Senior Analyst at Moody's. "Although near-term spending on large projects could result in negative cash flow, future production growth would likely have a positive effect on the rating."

Spending will likely focus on extending existing operations and phased development, rather than large-scale greenfield projects.

Recycling technology claims another prize: INL wins Idaho Innovation Award

IDAHO FALLS, Idaho - Electronic waste is closer than ever to having a sustainable, safe and environmentally friendly method of recycling due to award-winning technology developed at Idaho National Laboratory.

The Idaho Innovation Awards honored inventors Tedd Lister and Luis Diaz Aldana recently at a reception in Boise. It was the third major award received this year by Electrochemical Recycling Electronic Constituents of Value (E-RECOV), which uses an electrochemical cell to efficiently reclaim valuable metals and rare-earth elements from discarded electronic equipment. The technique leads to more thorough recycling of materials while significantly minimizing chemical use and waste generation, and can be accomplished domestically and economically.

The annual Idaho Innovation Awards recognize innovations, innovative professionals and companies throughout the state. Stoel Rives LLP, a full-service U.S. business law firm, has organized and hosted the program since 2006.

The technology was developed with funding from DOE's Critical Materials Institute. Other awards won by E-RECOV include Federal Laboratory Consortium Far West Regional and TechConnect National Innovation Award. This patent-pending technology is also the focus of a collaborative Small Business Voucher project with Ohio-based eMaterials Recovery, LLC. The E-RECOV process is currently available for licensing. Interested parties can contact Ryan Bills for further information. You can learn more about E-RECOV in this video from the Idaho Innovation Awards or in this INL fact sheet.

INL is one of the U.S. Department of Energy's national laboratories. The laboratory performs work in each of DOE's strategic goal areas: energy, national security, science and environment. INL is the nation's leading center for nuclear energy research and development. Day-to-day management and operation of the laboratory is the responsibility of Battelle Energy Alliance.

India Recycles Toxic Electronic Waste Dumped By Richer Countries

SEEMAPURI — In this neighborhood on the outskirts of Delhi, electronic scrap keeps growing. Piles and piles of electronic waste or "e-waste" litter the narrow alleys here from old computer circuit boards and cables to discarded keyboards and phone handsets.

Mohammad Salman, 25, deals with such e-waste. “We collect it from all over the country, from waste pickers and other scrap dealers and then look for items that can be fixed,” he says.

Salman says he sells the precious metals that can be found in e-waste. "We give it to bigger dealers and what they do with it is their business,” says Salman.

Not far from Salman’s shop, some laborers unload a truck full of computer monitors and break them into pieces with hammers. This area is a place where e-waste is illegally recycled.

Further down the same lane, 35-year-old Ansar burns a large circuit board with a blowtorch. He then pulls out some of its components with a pair of pliers. The acrid smell of smoke is suffocating. But Ansar looks unperturbed.

"Everyone has to do something for a living and this is our work. We take out those parts that can still be used and sell them to people who repair computers. Then we take out metals like copper and brass and finally we dip these boards into acid to get the gold that is there," says Ansar.

India generates the fifth-largest amount of e-waste in the world.

Rapid economic growth has led to a surge in the demand and production of electronic devices such as computers, mobile phones and televisions. But once these electronics fall apart after a few years, they end up in places like Seemapuri.

Often, the e-waste is handled unsafely.

Most of the waste is toxic as it contains chemicals like lead, mercury, and cadmium, which are all harmful to health and environment.

"When you deal with this in a manner which is rudimentary using a hammer, blow torch or acid you are releasing a large amount of toxins into the environment," said Satish Sinha, the associate director of Toxics Link, a New Delhi-based environmental group.

According to a 2014 United Nations report, India generates more than 2 million metric tons of e-waste every year. That includes a huge amount of waste from abroad.

Until a few years ago, India, along with several African countries, was known as a global e-waste dumping ground. The government has since imposed a ban on the import of toxic material.

Despite the ban, e-waste still sneaks in, said Sinha.

"In developed economies, the cost of treating waste is extremely high. Also the environmental controls are very strict and robust. So you need to invest in technology, you need to be sure of what you are omitting and that’s why the cost of treating waste goes up in these countries,” Sinha explained.

When it comes to developing economies, the costs are almost negligible. So it becomes much easier for developed countries to send their waste to developing nations.

Earlier this year, the Indian government introduced new rules regarding the disposal of electronic waste, which pins more responsibility on manufacturers.

"Companies are now required to put in place a system through which they take back their products for recycling once they are discarded and this is the first time that we have set targets for them which they have to comply with," said environment minister Prakash Javadekar.

"They have to make these arrangements before they launch their product in the market," he said.

Still, environmentalists like Sinha are skeptical about the new rules.

"In the previous law also this provision was there. But the manufacturers are actually very reluctant to play their role," said Sinha.

Digital India must give e-waste management serious thought

A new study from IIM Bangalore and research firm Counterpoint Research suggest that India might consume $80 billion worth of mobile phone components over the next five years. India has the second largest smartphone market in the world, in terms of users. In just about five years, the country will have over 50 crore smartphone users. Further, the number of locally made mobile phones went up from 14 per cent in 2014 to 67 per cent in 2016. This could hit 95 per cent by 2020.

All that's good news. But the bad news is this surge in the production of smartphones, which die and get replaced faster than, say, personal computers or other perishable electronic goods, poses huge challenges to the country's e-waste recycling agencies. Estimates of electronic waste being produced in India every year range between eight to 17 lakh tonnes. This is increasing 5-8 per cent every year. India is also a dump yard of e-waste from developed markets.

A report says India has barely 150-200 facilities to recycle e-waste, which can address only 40-50 of the e-waste generated every year. The E-waste (Management and Handling) Rules 2011 and the new E-waste (Management) Rules 2016 feature creative regulations to tackle e-waste, but the surging pile of unattended e-waste shows the reality is very grim and companies are putting the gaps in rules to hoodwink the system.

There are three ways to tackle this problem. The first is to hold producers responsible for recycling their goods.

Second, consumers should be encouraged via monetary benefits to recycle their gadgets. The Government can help build links between gadget makers, retailers (especially online sellers with efficient last mile connectivity), consumers and repair centres to ensure proper collection and management of gadgets. The third and the most important measure is to embed e-waste management into the DNA of the Digital India mission. If India wants to build a digital infrastructure linking its billion-plus populace, it must make sure the process does not choke its environment.