Trump’s Nightmare: The Critical Resource Biden Couldn’t Secure

As U.S. President Biden nears the end of his term, there’s one little-known metal whose scarcity is keeping him up at night even today. And analysts warn that President-elect Donald Trump is likely to inherit this headache too.

The metal is not gold, silver, or uranium. It’s not the lithium used for EV batteries. It’s not the copper that is essential for electrification. It’s not even the rare earth elements that are crucial for everything from smartphones to wind turbines.

This metal has a global annual production of less than 100,000 tons – a small fraction of the lead, copper, and iron produced every year. But it is a vital component in everything from armor-piercing bullets, nuclear weapons, explosive missiles to fire retardants in electronics and military uniforms. Most importantly, there are no viable alternatives at the moment.

But one forward-looking company, Military Metals Corp. (CSE:MILI; OTCQB:MILIF), has recently purchased historically-proven deposits that could swiftly address America's most pressing resource vulnerability in recent times.

The metal we’re talking about is antimony, and its scarcity has Western governments rattled.

Military Metals CEO Scott Eldridge sees a major antimony supply crunch coming. And antimony prices this year, along with new Chinese restrictions add extra support to that prediction with prices tripling since earlier this year from $12,000 per ton to $38,000. That’s why the company acquired past-producing antimony mines on two continents at breakneck speed.

But first, let’s zoom in on antimony demand, and prices, and why they are going through the roof right now.

The Global Antimony Supply Squeeze

The current crisis stems from China’s dominance in both global antimony production and refining. China, Russia, and Tajikistan control 85% of the world’s antimony supply.

Antimony is not easy to extract and it’s often a by-product in the extraction of other metals like gold, silver, or copper. And China, which also currently controls 65% of global antimony refining capacity, has just imposed troubling new restrictions on its export.

Because China controls most of the world’s antimony, when they cut supply Western military supply chains are directly impacted.

According to a recent article published by the Center for Strategic and International Studies (CSIS) in Washington, D.C., the U.S. only has 20 days’ worth of antimony inventory. Germany has just 2 days’ worth of munitions supply. And geopolitical tensions in Ukraine, the Middle East, Afghanistan, and other places continue to aggravate the demand for antimony.

So, antimony demand from defense is at record highs right now, and it’s only going to increase exponentially in the years to come.

Washington's $1.8 Billion Antimony Push

All these factors have together pushed antimony prices past $38,000 per ton – a 300% price increase in just the last 24 months. And this might just be the start!

Understandably, political support for securing critical mineral supply chains across the globe is intensifying.

Major economies like the U.S., Canada, the U.K., Japan, Australia, the European Union, and South Korea have all classified antimony as a “critical mineral.” And the U.S. government is keen on backing domestic antimony projects to reduce dependence on Chinese imports.

As a part of that initiative, Perpetua Resources Corp., a mining company focused on developing gold-antimony deposits in the Stibnite district of Idaho, is securing a $1.8B loan from U.S. Export-Import Bank, along with an additional $60M from the Department of Defense.

As a result, Perpetua’s stock has shot up over 400% since March this year.

But this rapid surge is just one example of the antimony sector's explosive potential.

Now, Military Metals Corp (CSE:MILI; OTCQB:MILIF), an under-the-radar company with premium assets in friendly NATO territory is positioning itself for even bigger success…

The company recently announced that it has purchased one of Europe’s largest antimony deposits in Slovakia. The flagship Trojarova property here features a historical Soviet-era resource of 61,998.4 tonnes of antimony which has a in-situ value of over $2 billion of antimony in the ground at today’s spot prices. Located just 30 minutes from Bratislava with excellent infrastructure, the company thinks they can fast-track this project with a resource estimate within 6 months.

Then there’s the Tienesgrund property, also in Slovakia, which covers 13.38 km² and encompasses 40-50 historical mining tunnels dating back to 1840. Historical Soviet-era work estimated 162t with an average grade of 7.7% antimony here, and the company expects to establish a resource within 12 months.

Their West Gore property in Nova Scotia, which was one of Canada's largest antimony producers during World War I still holds significant unmined material. Historical ore extracts showed as high as 46% antimony content.

Lastly, their Bear Creek property in Slovakia is a historical high-grade tin resource. The company got this project as a part of their Slovakia deal, but they’re thinking of divesting this to get money for their antimony projects.

Key Factors Driving Military Metals Corp.’s Story

At this critical point in the antimony market, Military Metals Corp. stands out for five key reasons…

  • Significant Growth Potential: Even though the Military Metals Corp. stock has seen a substantial run in recent times, with the current market cap of just $23M vs real asset potential, there’s a lot more upside yet to be unlocked.

  • Rising Market Awareness: Growing media coverage in the Financial Times, Forbes, etc., gives early investors a massive advantage in capitalizing on the coming antimony surge.

  • Pure Antimony Play: Unlike gold or oil, there are no ETFs or futures contracts to trade antimony. Equity investments into junior mining companies, like Military Metals Corp., is the only real way to get exposure to antimony.

  • Premium Asset Portfolio: The company has assets located at three prime locations in Slovakia and one location in Canada. Plus, the project qualifies under the European Critical Raw Materials Act, potentially helping to accelerate its development.

  • To sum up, as global demand for antimony continues to rise and geopolitical tensions persist, securing stable supplies outside of China’s control remains a key challenge for Western nations.

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    **IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**

    Forward-Looking Statements

    This publication contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. The forward-looking statements in this publication are based on current expectations and assumptions about future events, geopolitical developments, trade policies, market conditions, the company’s strategic initiatives to address the critical shortage of antimony, and current expectations, estimates, and projections about the industry and markets in which the company operates.  Factors that could change or prevent these statements from coming to fruition include, but are not limited to, the potential impact of the upcoming U.S. elections on various industries and specific companies, changes in government policies, market conditions, regulatory developments, geopolitical events and the company’s ability to successfully acquire and develop new antimony resources and fluctuations in antimony prices. The forward-looking information contained herein is given as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.

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    Read this article on OilPrice.com

    By Matt Earle

    Matthew Earle is the Founder of MiningFeeds. In 2005, Matt founded MiningNerds.com to provide data and information to the mining investment community. This site was merged with Highgrade Review to form MiningFeeds. Matt has a B.Sc. degree with a minor in geology from the University of Toronto.

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