cannabis investing

What Do Australia's Political Parties Think About Cannabis?

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Cannabis remains a hot-button issue in Australia, and the country's political parties have diverse opinions. Here's a look at what they think.

Cannabis reform at a national level still seems far off for Australians, but what do each of the country's major political parties think about the drug?

At the time of publication, the Australian federal parliament had members in the House of Representatives from nine political parties, and senators from nine political parties as well.

Let's look at what Australia's four major political parties think about cannabis, followed by a brief overview of the minor parties in power. We'll also run through the cannabis-specific political parties not currently elected.

Australian Liberal Party

The Australian Liberal Party is in power right now, and it has a conservative view on drug policy, including cannabis, which it believes should remain on the illicit and illegal drug list. The party also has policies around deporting drug dealers. Although it has endorsed research on medicinal cannabis through the Therapeutics Goods Association (TGA), it has since removed all references and specific policies regarding cannabis from its platform.

Current Health Minister Greg Hunt has expressed concern over the Australian Capital Territory's decision to legalise cannabis given that it directly conflicts with federal law. He previously told ABC Radio Melbourne that cannabis presents a "significant mental health risk."

Prime Minister Scott Morrison has joked that he "won't be partaking" in cannabis. He was also unmoved by activists from the Who Are We Hurting campaign who delivered a pound of weed to Kirribilli House on April 20, 2020, and then brought AU$420,000 in crisp green AU$100 bills to Parliament House on the same date in 2021.

Australian Labour Party

The stance from the Australian Labour Party is in support of medicinal cannabis only. Similar to the Australian Liberal Party, there is no public policy mention of cannabis or marijuana in the Australian Labour Party's mandate.

State members in Queensland and New South Wales have publicly called for the decriminalisation of cannabis, with some going so far as to call for legalisation; however, at this stage the official party line isn't pushing for legalising.

The Nationals

Running on a platform that focuses on rural Australian communities and agriculture, the Nationals often rely on more conservative policies. As part of a coalition government with the Australian Liberal Party, the party line for the Nationals is thought to be aligned as "no" to decriminalisation and "no" to legalisation, but "yes" to medicinal cannabis that is heavily regulated through the TGA.

Australian Greens

The Australian Greens have been proudly (and loudly) lobbying for cannabis legalisation for many years as a major policy. The current party line is to legalise the production, sale and use of cannabis and cannabis products for recreational use, whilst regulating growth and possession for personal and medicinal use.

Minor parties in the House of Representatives

  • Centre Alliance — Member of Parliament Rebekha Sharkie spoke in support of a medicinal cannabis bill in February 2021 and believes medicinal cannabis should be included in the Pharmaceutical Benefits Scheme.
  • Independent — There are no public policies available for members of parliament Helen Haines, Zali Steggall or Andrew Wilkie, although Wilkie was the major push behind legalising hemp as a material and food source in Australia.
  • Katter's Australia Party — Bob Katter is not pro-legalisation, and joked in parliament, "I didn't know marijuana was legal in Canberra and I can now understand why the country has gone to pot."
  • Liberal Party of Queensland — No public policy; presumed to be the same as the Australian Liberal Party and Nationals as they are a coalition.
  • United Australia Party — The party wants a standard on synthetic dangerous drugs, including cannabis.

Minor parties in the Senate

  • Centre Alliance — Senator Stirling Griff voted against expanding medicinal cannabis in 2017. No public policy on record.
  • Country Liberal Party — The party has no public policy on record.
  • Independent — Senator Rex Patrick voted strongly in favour of increased access to medicinal cannabis, but has previously stated that decriminalising cannabis "requires considerable thought and analysis."
  • Jacqui Lambert Network — The party has policies to address the problems facing everyday Tasmanians in accessing medicinal cannabis, and believes it should be a doctor/patient issue and not a political/bureaucratic issue.
  • Pauline Hanson's One Nation — The party has stated, "One Nation upholds the right of Australians to access medical cannabis, that may give them quality of life and life itself." However, it has a history of blocking motions like the 2017 bid to fast-track medicinal cannabis for the terminally ill.

Pro-cannabis parties in Australian politics

There are several smaller pro-cannabis parties; of particular note is the Legalise Cannabis Australia Party. It was first founded as Help End Marijuana Prohibition (known by its clever and catchy acronym HEMP) in 1993 by Nigel Quinlan, who ran under the candidate name Nigel Freemarijuana.

The group, which changed its name to Legalise Cannabis Australia in September 2021, has a number of policies around legalising and regulating cannabis for personal use, industrial use and medicinal use.

A subgroup of Legalise Cannabis Australia is the Legalise Cannabis Queensland Party, which was officially approved by the Australian Electoral Commission in September 2020 and ran in the October 2020 state election. The party garnered 2.2 percent of the vote, the fourth highest overall. The Legalise Cannabis Western Australia Party won two Upper House seats in the 2021 state election.

The Reason Party (formerly the Australian Sex Party) advocates for cannabis to be legalised, regulated and taxed. The party is currently only represented in the Victorian Legislative Council by Fiona Patton and is not represented at a federal level. Patten recently chaired a foundational committee that provided a report on findings and recommendations on cannabis policy to the Victorian parliament.

Don't forget to follow us @INN_Australia for real-time updates!

Securities Disclosure: I, Ronelle Richards, hold no direct investment interest in any company mentioned in this article.

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Speaking to the Investing News Network at the recent Vancouver Resource Investment Conference (VRIC), Joe Mazumdar, editor of Exploration Insights, said copper is his pick.

"Some of it's battery metal exposure, it's construction," he said. "But also on the supply side, the lack of development projects and the higher permitting risk combined with more geopolitical risk in two of the major producers, Chile and Peru. They might have issues with production into a market (where) demand might grow."

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Hygrovest Limited

SmartNews
Hygrovest Limited

Building a globally diversified portfolio of companies in high-growth industries.


Overview

Hygrovest Limited (ASX:HGV) has a globally diversified portfolio focused on investing in private and public companies in high-growth industries. Hygrovest has investments in cannabis-focused companies and in December 2021, the company expanded their portfolio to include healthcare, natural resources, and the digital economy as well as e-sports, sports betting, online gaming, and fintech.


Hygrovest's diversified investment is managed by Parallax Ventures Inc. (“Parallax”), a specialist management company in Canada, under a long-term strategic partnership. The agreement with Parallax offers access to new investment opportunities, added material value to existing investments, minimised HGV’s fixed cost structure, and secured meaningful investment presence in HGV’s key investment market – North America.

Hygrovest's portfolio includes a portfolio of CBD and cannabis investments in cultivation, extraction and consumer products with material investments in Weed Me, WeedMD, Sequoya, Harvest One and Southern Cannabis Holdings.

Hygrovest

Hygrovest operates a robust share purchase plan, which provides eligible shareholders the opportunity to invest in the portfolio at a 51 percent discount to net value assets. This attribute is exceptionally advantageous with the company's generation of substantial realized gains from its sale of Dosecann Inc. and Medipharm LABS, two Canadian cannabis-based companies providing leading cannabis technologies in extraction and product development.

A significant goal for Hygrovest's Board includes trading its share price at a premium to NAV, considering prospective returns from its high-quality portfolio companies. The company has seen positive trends in investment returns in the past five years and has generated a Multiple on Invested Capital (MOIC) of 1.3 times capital invested. Its mixture of private and listed companies across the emerging Australian and offshore cannabis and hemp markets primes the company for dominant standing as a major investment company.

Hygrovest Test Tube

Its highly-developed investment process includes active formulating, frequent reviewing, and effective investment best practices based on reliable valuation information. The Hygrovest Board operates as the final approval level for acquisition and the sale of investment proposals, which involve an exercise of rights attached to specific investments. Its current investment approval process operates based on Hygrovest's Investment Management Agreement with Parallax Ventures Inc, effective from 1 June 1 2019.

Future plans for the company involve focusing on U.S. investment expansion, employing liquidity into Canadian markets and developing its brands and distribution chains. The company notes significant attention towards its Harvest One Cannabis (TSXV:HVT) investee, which saw a 116 percent increase in value during February 2021, reaching totals of CAD$13.4 million.

Harvest One

"You can see with Harvest One, which is our largest investment, has a massive distribution network and has very high-quality plans coming along. We believe those types of investments in the long-term will be exceptionally attractive," commented Hygrovest Non Executive Director Michael Curtis.

Hygrovest Limited comprises a strong team with over 80 years of combined experience in investment banking, corporate strategy and cannabis fields. The company also benefits from having the Canadian-based Parallax Ventures Inc. on its Board as a strategic asset manager. Together, this leadership primes Hygrovest for significant success and growth with strategies to enhance acceleration and collaboration within the portfolio.

Company Highlights

  • Hygrovest has a globally diversified portfolio that includes private and public companies in high-growth industries.
  • Hygrovest has expanded their portfolio to include healthcare, natural resources, and the digital economy as well as e-sports, sports betting, online gaming, and fintech.
  • Investment return in the past five years has generated a MOIC of 1.1 times the capital invested. This financial upside is amplified with the company's MOIC of 3.5 times on investments sold in that period including sales of Dosecann Inc. and Medipharm LABS.
  • Hygrovest has a proven track record in acquiring and realizing significant value from its investments. They combine years of professional experience in investment banking, corporate governance and strategic acquisition.
  • Harvest One Cannabis, Hygrovest's largest investment, saw a 116 percent increase in value totaling CAD$13.4 million in February 2021, presenting the company with exceptional growth potential.
  • The company has a strong management team and benefits from having the Canadian-based Parallax Ventures Inc. on its board as its asset manager.
Weed Me

Hygrovest Limited operates a robust investment portfolio consisting of listed and private cannabis companies across a diverse variety of emerging cannabis-related sectors, including healthcare, technology, infrastructure, logistics, processing, cultivation, equipment and retail.

Current investment in its portfolio include:

  • Harvest One Cannabis Inc. (CVE:HVT)
  • Southern Cannabis Holdings
  • Weed Me
  • Martha Jane Medical
  • Vitagenne
  • Sequoya
  • WeedMD Rx Inc. (CVE:WMD)
  • Bespoke Capital Acquisition Corp.

Hygrovest 's portfolio of investments sold:

  • BevCanna Enterprises Inc. (CNSX:BEV)
  • Fire & Flower (TSE:FAF)
  • MediPharm LABS (TSE:LABS)
  • Hemple
  • Axiomm Technologies
  • Volero Brands Inc.

This portfolio leverages favorable market conditions with the majority of Canadian listed cannabis producer valuations seen dropping in 2020. Hygrovest intends to take advantage of this market backdrop and continue to create substantial investment opportunities, strategic partnerships and high-quality acquisitions.

Management Team

Peter Wall - Non- Executive Chairman

Peter Wall is a corporate lawyer and has been a partner at Steinepreis Paganin, a Perth-based corporate law firm, since July 2005. He has a wide range of experience in all forms of commercial and corporate law, with a particular focus on medical cannabis, resources, equity capital markets and mergers and acquisitions. He also has significant experience in dealing with cross-border transactions.

Wall graduated from the University of Western Australia in 1998 with a Bachelor of Laws and Bachelor of Commerce (Finance). He has also completed a Masters of Applied Finance and Investment with FINSIA.

Winton Willesee - Non-Executive Director

Winton Willesee is an experienced company director and brings a broad range of skills and experience in strategy, company development, corporate governance, company public listings, merger and acquisition transactions and corporate finance. He has considerable experience with ASX listed and other companies over a broad range of industries, having been involved with many successful ventures from early-stage through to large capital development projects.

Willesee holds formal qualifications in economics, finance, accounting, education and governance. He is a fellow of the Financial Services Institute of Australasia, a graduate of the Australian Institute of Company Directors, a member of CPA Australia and a fellow of the Governance Institute of Australia/Chartered Secretary.

Doug Halley - Non-Executive Director

Doug Halley is an experienced company director and has served for 30 years as CFO or CEO in several significant and successful commercial enterprises and investment banks. His executive experience had a heavy emphasis on corporate strategy, treasury, financial management, M&A and business development. As a professional director, Halley has developed risk management and governance expertise. He has a strong background in IPO and start-ups and a reputation for innovation, perseverance and achieving solutions and results.

Halley has a Bachelor of Commerce, Master of Business Administration and is a fellow of the Australian Institute of Company Directors.

Michael Curtis - Non-Executive Director

Michael Curtis resides in Toronto, Canada and is an experienced former investment banker and private equity executive. He is an active cannabis sector executive, having recently served as VP of Corporate Finance of Dosecann Inc. and Managing Partner of Parallax Ventures Inc. Curtis was previously the COO and Director of Embark Health Inc. and remains a consultant to Embark Health Inc.

Curtis has a Master of Business Administration from the University of New Brunswick, Bachelor of Sciences (Honors) from McMaster University.

Jim Hallam - CFO & Corporate Secretary

Jim Hallam has over 30 years of experience in the investment management industry with alternative asset fund managers in Australia and overseas, including Hastings Funds Management and Annuity Australia. His roles include acting as responsible manager, investment manager and Chief Financial Officer within alternative asset fund managers.

Hallam has a Bachelor of Commerce in Economics, is a member of the Chartered Accountants Australia and New Zealand and a fellow of the Governance Institute of Australia.

HGV:AU
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"I'm bearish on the markets, (but) I'm bullish on gold — physical bullion — and farmland right now," said Mercenary Geologist Mickey Fulp.

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With the general markets in turmoil, Mercenary Geologist Mickey Fulp sees few places to turn.

"It's a difficult situation," he said at the recent Vancouver Resource Investment Conference (VRIC). "I am very bearish, not necessarily on commodity prices, but on the whole resource space and the ability of companies to explore, develop, produce — there's a variety of factors against that right now."

Those include resource nationalism, socialism, anti-development initiatives and green agendas, Fulp explained. Meanwhile, mining companies are seeing energy and labor costs pushed up by inflation.

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cannabis investing

Top 3 ASX Cannabis Stocks of 2022

Cannabis Investing News
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What are the top ASX cannabis stocks of 2022 so far by share price performance? Here's a look at the biggest gainers in the space.

Click here to read the previous top ASX cannabis stocks article.

Australia's cannabis industry has had ups and downs in recent years.

Cannabis, which can be cultivated for medicinal and scientific purposes in the country, takes up a particularly tricky and political pocket of the healthcare sector, but continues to generate investor interest.

How have Australian cannabis stocks performed in the first few months of 2022? Below the Investing News Network has gathered the top ASX cannabis stocks year-to-date. The following information was correct as of April 4, 2022, and was collected using TradingView's stock screener. Read on to learn more.

1. Botanix Pharmaceuticals

Year-to-date gain: 67.86 percent; market cap: AU$87.58 million; current share price: AU$0.09

Botanix Pharmaceuticals (ASX:BOT) is a dermatology-focused company whose work is centered on developing topical treatments for a slew of skin problems, including acne, rosacea, atopic dermatitis and microbial infections. Its pipeline includes three advanced clinical programs using the anti-inflammatory and antimicrobial effects of synthetic CBD as a topical treatment for various skin diseases.

Botanix is on track with many of its goals for this year. According to its latest quarterly activities report, the company's canine atopic dermatitis program, which was launched in September 2021, is set to finish enrolment by the end of the first quarter. Additionally, preclinical work for Botanix's BTX 1801 antimicrobial program is complete, and a clinical study is planned to start by the end of Q1.

2. Cronos Australia

Year-to-date gain: 47.5 percent; market cap: AU$156.92 million; current share price: AU$0.29

A spinoff of Cronos Group (NASDAQ:CRON,TSX:CRON), Cronos Australia (ASX:CAU) is a domestic firm looking for opportunities in the medical cannabis space. It holds a controlling stake in Cannadoc Health in Australia and has also pursued business ventures in the larger Asia Pacific region.

As part of its annual report to shareholders, Chairman Shane Tanner and CEO Rodney Cocks said the lingering effects of the COVID-19 pandemic have continued to affect the cannabis industry at large, including some aspects of the Cronos Australia business. However, they expect to see things turn around in 2022.

In its latest quarterly activities report, Cronos Australia highlighted the successful completion of its merger with CDA Health, describing it as a "key milestone," and reported that its medical cannabis sales for the first half of the 2022 fiscal year exceeded sales for the entire 2021 fiscal year.

3. Hygrovest

Year-to-date gain: 3.39 percent; market cap: AU$14.25 million; current share price: AU$0.06

Hygrovest (ASX:HGV), formerly MMJ Group Holdings, describes itself as a specialist investment company. It has a wide range of cannabis investments, including healthcare products, technology, infrastructure, logistics, processing, cultivation, equipment, retail and research and development.

Among other companies, it has invested in Harvest One Cannabis (TSXV:HVT,OTCQB:HRVOF), which develops health and wellness products, and BevCanna Enterprises (CSE:BEV,OTCQB:BVNNF), which offers a range of traditional and cannabis-infused beverages and nutraceuticals.

Don't forget to follow us @INN_Australia for real-time news updates!

Securities Disclosure: I, Marlee John, hold no direct investment interest in any company mentioned in this article.

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"I'm no market forecaster, but part of me suggests this could get worse before it gets better," said Rick Rule of Rule Investment Media.

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"What bear markets really are is sales, and if you think that sales are good, then these are good," he said. He has a shopping list ready and is looking for places he can scale in, but did urge listeners to proceed with caution.

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HGV Agrees To Divest Its Investment In Entourage Health Corp

Cannabis Investing News
Hygrovest


Hygrovest Limited (ASX:HGV) ("HGV") is an Australian-listed specialist investment company which concentrates on producing capital growth for shareholders over the medium term from investments in listed and unlisted equities and other financial assets.

HGV agrees to divest its investment in Entourage Health above current book value

HGV has agreed to support proposed changes to the terms of the unsecured convertible debentures issued by Entourage Health Corp (ENT or the Company) which would allow HGV to divest its investment in ENT convertible debentures (the Notes).

The attached release by ENT details the changes proposed by the Company which would allow HGV to complete the divestment of ENT which bring forward the maturity date from 25 September 2022 to 30 June 2022 and reduce the redemption percentage from 100% to 60% of face value (the Note Proposals).

The Company has announced that a meeting of ENT Noteholders will be held in late June 2022 to consider the Note Proposals. HGV has signed a voting agreement to vote in favour of the changes. If the meeting of ENT Noteholders approves the amendments, ENT will redeem HGV’s Notes for CAD3.6m plus accrued interest on or around 30 June 2022 which is a premium to HGV’s book value of CAD2.5m as at 30 April 2022.

On the basis that ENT Noteholders approve the resolutions, HGV will have generated a loss of 18% on the original investment (after inclusion of cash interest received). Whilst the investment in HGV’s Notes has been well below expectations at the time of initial investment, it should be noted that the return is materially above that for the listed Canadian cannabis sector which has declined approximately 70%1 since January 2020.

The divestment was negotiated by HGV’s asset manager, Parallax Ventures Inc, on behalf of HGV.

“The divestment of HGV’s investment in ENT at a significant premium to our book value is an important step in realising HGV’s underperforming cannabis investments and applying those funds to sectors which have higher growth prospects” said Mr Wall, HGV’s Chairman.

HGV made its initial investment in ENT in September 2019 and now has a current book value of CAD2.5m comprising:

  1. CAD6m in 8.5% unsecured Convertible Debenture units issued by ENT which HGV has the option to convert into 3.75m shares by the maturity date of 25 September 2022. The debenture units have preference over ordinary shares with interest paid to HGV on a six-monthly basis. The market value of the notes is calculated by multiplying the CAD6m by the market price divided by 100.
  2. Listed Warrants that allow HGV to acquire an additional 3.75m shares for CAD1.80 each by 25 September 2022.
About HGV

Hygrovest Limited (ASX:HGV) ("HGV") (ABN 91 601 236 417) is an Australian-listed specialist investment company which concentrates on producing capital growth for shareholders over the medium term from investments in listed and unlisted equities and other financial assets.

Important Notice

This announcement contains reference to certain intentions, expectations, future plans, strategy and prospects of HGV. Those intentions, expectations, future plans, strategy and prospects may or may not be achieved. They are based on certain assumptions, which may not be met or on which views may differ and may be affected by known and unknown risks. The performance and operations of HGV may be influenced by a number of factors, many of which are outside the control of HGV. No representation or warranty, express or implied, is made by HGV, or any of its directors, officers, employees, advisers or agents that any intentions, expectations or plans will be achieved either totally or partially or that any particular rate of return will be achieved. Given the risks and uncertainties that may cause HGV’s actual future results, performance or achievements to be materially different from those expected, planned or intended, recipients should not place undue reliance on these intentions, expectations, future plans, strategy and prospects. HGV does not warrant or represent that the actual results, performance or achievements will be as expected, planned or intended. Nothing in this material should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities. It does not include all available information and should not be used in isolation as a basis to invest in HGV. This document does not constitute any part of any offer to sell, or the solicitation of an offer to buy, any securities in the United States or to, or for the account or benefit of any “US person” as defined in Regulation S under the US Securities Act of 1993 (“Securities Act”). HGV’s shares have not been, and will not be, registered under the Securities Act or the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold in the United States or to any US person without being so registered or pursuant to an exemption from registration including an exemption for qualified institutional buyers.

This article includes content from Hygrovest Limited (ASX:HGV), licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
HGV:AU
blockchain investing

Bitcoin ETF Launches in Australia by Way of Canada

Technology Investing News
physical coin representing bitcoin
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A Canadian fund provider is debuting a version of its popular bitcoin ETF in Australia. Is now the best time for this launch?

Australian investors are getting a new way to invest in the volatile bitcoin space thanks to a deal between an asset management company and a Canadian fund provider.

On May 12, Canadian fund maker Purpose Investments launched a version of its bitcoin exchange-traded fund (ETF) in the Australian market by way of a partnership with Cosmos Asset Management, which is owned in part by the Australian division of Mawson Infrastructure Group (NASDAQ:MIGI).

The fund, called the Cosmos-Purpose Bitcoin Access ETF (CXA:CBTC), is listed on the Cboe Australia exchange, and holds units of the Toronto-based Purpose Bitcoin ETF (TSX:BTCC).

“We have brought together a team of global experts to offer Australian investors access to a truly high-quality product,” Dan Annan, Cosmos Asset Management CEO, said in a statement to investors.

ETF maker pursues rising international interest in cryptocurrencies

In an interview with the Investing News Network (INN), Vlad Tasevski, chief operating officer and head of product at Purpose Investments, said the firm has been actively pursuing ways to offer its crypto funds internationally.

The executive said there has been widespread interest in BTCC since its launch back in February of last year.

As the firm began evaluating how to approach this demand, the company considered setting up shop in the Australian market, Tasevski said. However, eventually the Canadian fund provider went with the partnership route.

Tasevski called Australia “the next logical jurisdiction" for the firm as it expands with its crypto funds.

When asked what makes Australia so attractive for the expansion of BTCC, the executive said it has a similar market structure to Canada, and credited securities regulators in the nation for being more comfortable with cryptocurrency listings than other jurisdictions.

Purpose has strong long-term outlook for digital assets

Although crypto assets are facing a serious ongoing downturn in value that has created significant losses, Tasevski told INN that Purpose Investments is undeterred in its long-term crypto outlook.

“The amount of capital and the amount of people involved in the space has never been higher,” Tasevski said.

The executive said he views his company's offerings as very flexible for investors. “We'll be here for (investors) to actually give them the ability to very easily access it whenever they feel it is appropriate for them,” he said.

Tasevski added that he views the current downturn for bitcoin as “one of the best entry opportunities in the last year and a half.”

​As bitcoin struggles, ETF firm celebrates structural victory

Purpose Investments has suggested to investors that accessing the bitcoin market through its funds is a safer route than going it alone, especially given the current period of remarkable losses.

According to Tasevski, the firm's products offer liquidity to investors and provide a measured approach for people who want exposure in this segment.

“We have been very clear that this is a volatile asset class,” he told INN. “And investors should kind of understand the level of volatility that they will be taking on.”

The investment executive said the infrastructure security provided by the rules ETFs must follow has been a boon as the crypto space faces major volatility.

Even so, BTCC has been rocked in 2022 based on the performance of bitcoin. Over a year-to-date period, the fund had gone down in value by over 35 percent as of the closing bell in Canada on May 11. In the past month alone, BTCC has dropped in value by over 20 percent.

Som Seif, founder and CEO of Purpose Investments, recently said crypto is a “core component” for the firm “when solving problems for (its) customers.”

​Investor takeaway

Digital assets have never been more easily available as tools for all types of investors.

While many experts remain confident in the long-term outlook for bitcoin and other cryptocurrencies, the considerable volatility prevailing in the market can make the space difficult for newcomers to stomach.

So far in 2022, bitcoin losses have highlighted the lack of stability in digital coins — but of course, as some have argued, these big moves can also provide entry points and opportunities for savvy investors.

Don’t forget to follow us @INN_Australia for real-time updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

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European Lithium Executive Chairman Tony Sage: Developing the First Lithium Hydroxide Plant in Europe

Australian Companies
European Lithium Executive Chairman Tony Sage

European Lithium Executive Chairman Tony Sage said, “There's not one hydroxide plant in Europe, so we hope to be the first. Not only would we be able to source material from our own mine, but we may be able to source material in nearby areas.”

European Lithium Executive Chairman Tony Sage: Developing the 1st Lithium Hydroxide Plant in Europe youtu.be

European Lithium (ASX:EUR,FWB:PF8) Executive Chairman Tony Sage discussed the company’s Wolfsburg project in Austria, a country with a rich mining history dating back to WWII that maintains its infrastructure.

Wolfsburg continues that tradition, positioned only 45 kilometres from the city that hosts the largest Samsung battery factory.

"It’s quite unique. In Europe, a lot of the lithium mines are at the exploration stage," Sage said. "This mine was built back in the '80s by the Austrian government. So all the work has been done. If we were going to do this project today, we would have to get environmental approval and spend about $100 million — but they did all the work and the licence is in perpetuity.

“We can now access that mine and start mining immediately. In fact, in 2017, we mined it and took out 1,500 tonnes, which is a massive advantage in the lithium industry because we were able to build a pilot plant and put 300 tonnes of the material through the pilot plant, which gave us the results that we were looking for in that it's high-grade product.”

Sage also discussed European Lithium’s goals with the project. “Our aim is to mine it. It's a very simple mining process. We're in the process now of trying to acquire land nearby so we can actually put a conversion plant and a hydroxide plant on it. There's not one hydroxide plant in Europe, so we hope to be the first. Not only would we be able to source material from our own mine, but we may be able to source material in nearby areas.”

Sage told the Investing News Network that the government is supportive of its endeavours. “The Austrian government is very keen for us to build hydroxide plants so they can actually entice vehicle companies to build a factory nearby the hydroxide plant. This way, we can have a mine right through to the battery solution for the Austrian government. In the end, all we can do is get the mines up and operating, build the hydroxide plant and see what happens.”

The mine itself is underground. “Underground mining techniques are used all around the world. When they built it, they actually overbuilt — so when we decided to mine back in 2017, it was quite easy for us to find the seam of the orebody and then take the ore out," Sage said.

“We completed a prefeasibility study in 2018. The cost structure then was about US$7,500 per tonne to produce the hydroxide. Right now, the hydroxide price is around US$69,000 a tonne — that’s a massive profit margin that we don’t see as sustainable long term. When we do our definitive feasibility study, we're probably going to use an average price over the life of mine of about US$25,000 — but that's still a huge profit margin. That feasibility study is coming within the next four months, when we’ll be in a good position to partner with someone.”

Watch the full interview of European Lithium Executive Chairman Tony Sage above.

Disclaimer: This interview is sponsored by European Lithium (ASX:EUR,FWB:PF8). This interview provides information that was sourced by the Investing News Network (INN) and approved by European Lithium in order to help investors learn more about the company. European Lithium is a client of INN. The company’s campaign fees pay for INN to create and update this interview.

INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.

The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with European Lithium and seek advice from a qualified investment advisor.

This interview may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, receipt of property titles, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The issuer relies upon litigation protection for forward-looking statements. Investing in companies comes with uncertainties as market values can fluctuate.

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