Greetings Contrarian,

This is The Next Big Rush, your daily drop of mining/energy investing news. Where we come together and brace for another Friday of survival.

Here are the highlights :

✍🏼 Palladium Copper Feasibility

✍🏼 The World Is Running Out Of Minerals

✍🏼 Silver Touches $24

🧐 Generation Mining - Palladium/Copper Feasibility

Generation Mining Limited (TSX: GENM) (OTCQB: GENMF) just came out with an updated Feasibility Study for the Marathon Palladium-Copper Project in Northwestern Ontario, which we’re happy to feature because man oh man, do we love companies who report higher than normal discount rates for their financial models (🫶🏼).

Highlights:

• NPV at a 6% (!) discount rate of $1.16b

• IRR of 25.8% based on a long-term price of US$1,800/oz for palladium and US$3.70/lb for copper

• Payback period 2.3 years

• Initial Capex:: $1,112 million (+ 25% from the 2021 FS)

• LOM average operating costs of US$709/PdEq oz and all-in sustaining costs of US$813/PdEq oz 3 (+14% from 2021 FS).

• Creation of over 800 jobs during construction jobs and over 400 direct permanent jobs during operations

Mining and it’s never-decreasing Capex!

Here’s to hoping the tides turn in the business so good projects can be built and value realised.

🤷🏻‍♂️ The World Is Running Out Of Minerals

BMO Capital Markets has sounded the alarm bell that mining companies are opting to return money to shareholders rather than building new mines. This could cause problems in the future when demand for metals and minerals is expected to boom due to the green energy transition. 

Expansion capital spending across the industry has typically run above 20% of EBITDA, but has now fallen to around 10%, as the ghastly chart shows:

While companies have talked about investing, the little they have done hasn’t been enough.

The investment bank believes the need for medium-to-long-term pricing to trade at a premium to the cost curve is necessary to bring us back to balance.

Like, of course.

🖇️ Silver Touches $24

The silver crowd goes wild as silver finally (since Jan) touches $24, a short 2 months after some pundits thought Gold’s little brother would hit $14 before $24. 

Will it hold the line or disappoint like it has done pretty consistently for the last decade year? 

We will not post a chart, to avoid the jinx.

  🤣 Meme of The Day

Happy Speculating!

The Editor

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.