Australian Cannabis Trends 2019: Steady Growth for the Industry

The Investing News Network looks back at a year full of Australian cannabis trends and critical industry developments.

Click here to read the latest Australian cannabis trends article.

As the end of 2019 nears, the Investing News Network (INN) is looking back at a year full of critical developments for the emerging Australian cannabis industry.

Though it’s still early days for the cannabis sector in Australia, recent increases in uptake indicate that medical marijuana could quickly become a crucial part of the country’s economy.

The conversation surrounding recreational marijuana use has also been ignited since the Australian Capital Territory legalized recreational use and possession this past September.


A growing patient base, legislative advancements and the country’s ambition to become one of the world’s largest exporters of cannabis all played significant roles in Australia’s cannabis market this year.

Read on to learn what market conditions defined the marijuana space in Australia in 2019.

Australian cannabis trends 2019: Rise in patient numbers

Australia’s medical cannabis space has grown slowly since the drug was legalized in the country back in 2016, but a recent spike in patient numbers has been a marker of the growing acceptance of cannabis as a viable product in the country.

“Although we note the early stage of the sector in Australia and the associated volatility of a nascent industry, over the same period patient numbers domestically have continued to soar,” said Canaccord Genuity analysts Cameron Bell and Matthijs Smith in a recent note sent out to investors.

In November, the Therapeutics Goods Association (TGA) approved 3,404 applications for medical cannabis patients looking to access products under Special Access Scheme-B (SAS-B).

At the time the analyst pair published their note, over 90 percent of the more than 20,000 applications approved under SAS-B had occurred in the last 12 months. Bell and Smith added that the country was on track to have over 25,000 approvals by the end of 2019.

Australian cannabis research firm FreshLeaf Analytics has also pointed to an adoption uptick, saying in a Q3 report on Australia’s medicinal cannabis market that the country’s patient approval rate was up over 1,000 percent for 2019 at that time.

Research indicates that 30,000 to 50,000 new patients could enter the market in 2020.

Sanjay Nijhawan, medical director at Cannabis Access Clinics, said the rise in patient numbers can be chalked up to an increase in the range of conditions approved by the TGA that can be treated with medical cannabis, as well as medical practitioners becoming more comfortable prescribing the drug.

The quick growth of patient approvals could also have been driven by the state of New South Wales (NSW), which eased the requirements for prescribing medical marijuana in September, removing the need for state approval for medical cannabis applications in most cases.

Western Australia joined NSW in November when it announced that unless a patient is under 16 years old or has an established history of drug abuse, general practitioners in the state can prescribe medical cannabis without having to refer to a specialist.

Australian cannabis trends 2019: Move to legalization

Perhaps one of the most critical developments in the cannabis space this year was the legalization of recreational use of the drug in the Australian Capital Territory in September, a first for Australia.

The new legislation, which comes into effect in January, will allow people over 18 to possess up to 50 grams of dried flower and to cultivate two marijuana plants at home with a maximum of four plants per residence. However, the policy will face obstacles, since cannabis plant and seed sales remain illegal at the federal level, alongside smoking the drug publicly.

While recreational use remains high in the country — according to a report from the Australian Institute of Health and Welfare, it is the most widely used illicit drug — the path towards legalization will be tricky.

In an interview with INN, Fleta Solomon, managing director at privately held Australian cannabis firm Little Green Pharma, said the general consensus is that full legalization could be about five years out.

But that hasn’t stopped some leading cannabis firms from establishing themselves in the country and pursuing positions in the meantime.

It’s only a matter of time until the country legalizes recreational use, said Bruce Linton, former CEO of Canadian giant Canopy Growth (NYSE:CGC,TSX:WEED), in an interview with ABC News.

“Every country that’s federally legal (in the future), we think someday will start with medical,” said Linton. “We think it’s just a natural progression.”

The company indicated that its subsidiary Spectrum Cannabis plans to create a division in Australia with operations in Victoria.

This sentiment was echoed by venture capitalist Ross Smith in an interview with ABC News: “There’s no question in my mind that medical cannabis is the Trojan horse for recreational cannabis, and I don’t believe it’s a bad thing,” he commented.

Australian cannabis trends 2019: International export

Another aspect of the development of the Australian cannabis industry comes down to the country’s ambition to become one of the world’s largest exporters of marijuana.

In an interview with ABC Radio, Health Minister Greg Hunt said the country aspires to become a powerhouse for medical cannabis supply, especially after legalizing medical cannabis exports in 2018.

Hunt said Australia’s goal is to eventually become the world’s largest medicinal cannabis supplier. The goal is to help the growth of the country’s international presence in cannabis, as well as to build a successful domestic market for Australia’s medical marijuana users.

“We want to be able to ensure we have safe, legal, high-quality supplies for Australian patients, and if we have an international market as well, that’s the best way of ensuring that we have viable product and viable businesses in Australia,” Hunt said.

Since then, some cannabis firms have begun to ship their product out of the country.

The first company to do so was Little Green Pharma, which sent locally grown medical cannabis products to German cannabis distribution and wholesaler Cansativa for product testing in September this year.

Little Green Pharma’s partnership with Cansativa marked the first step for Australia in bringing domestically produced cannabis to patients around the globe, according to its leading executive.

“Being Australia’s first local producer of medicinal cannabis to have its products reach European soil is a major milestone in the company’s short history,” Solomon said.

Australia cannabis trends 2019: Investor takeaway

By all indications, 2019 served as a shaping year for the market in Australia. Thanks to critical legislative moves and a growing acceptance of the drug as a viable medical treatment, cannabis in Australia is ripe for an increase of investment opportunities moving into 2020.

As the pace of the marijuana sector’s growth quickens, industry players are anticipating that companies that are generating revenue and positive cash flow will begin to pull ahead of their competition.

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

Securities Disclosure: I, Danielle Edwards, 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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Winsome Resources CEO Chris Evans

Winsome Resources CEO Chris Evans said, “Canada and the US are working feverishly to develop an internal battery materials supply chain and we think we're going to play a critical role in that.”

Winsome Resources CEO Chris Evans: Sustainable Hardrock Lithium Opportunities in Quebec youtu.be


Winsome Resources (ASX:WR1) CEO Chris Evans joined the Investing News Network to discuss the company and its Cancet lithium project in Quebec, Canada.

"We listed on the ASX on November 30, 2021," he explained. "We're lithium focused but based in Canada, and we've been pretty successful in the last six months — our share price has done well. I think I've been putting this down to the success factors which we possess as a company, including the fact that we're into lithium at a moment with high demand. Any mining company that's associated with lithium has tended to do well.

“Our assets are in Quebec, a fantastic mining jurisdiction for all sorts of reasons. Also, being listed on the ASX — Australian investors tend to like early stage plays a bit better. They've certainly woken up to the electric vehicle and lithium revolution that's occurring in the world. And it's a pleasure having the assets in Canada.”


Next, Evans got into specifics about the company's flagship project. “The Cancet project is our flagship, in the James Bay region of Quebec. All our projects are hard-rock lithium; that's digging the rocks out of the ground and concentrating the lithium in them. Then it gets converted into the final product, which is lithium carbonate or hydroxide, that then goes into electric vehicle batteries,” he explained.

“Cancet’s had about 5,500 metres of drilling done on it historically, so we know that there's a great deposit of lithium at fantastic grades. It outcrops on the surface, the lithium-containing spodumene from the pegmatite rock, where we have 3.7 percent lithium oxide over a 17 metre interval from the surface at our most successful drill hole. We just completed 2,000 metres of drilling ourselves, increasing our knowledge of the orebody that's there, and also looking for extensions to the orebody. We've got 395 claims, and our drilling and exploration is only over about 15 of the claims. So we've got a lot further to look here and a lot more to develop.”

As for supply location, and the company's relationship with the international market, Evans said, “We think it's fantastic for us, and our shareholders, that we have assets in Quebec. Roughly 50 percent of the world's hard-rock lithium comes from Australia, where it’s mined and concentrated. The problem is that final conversion into lithium carbonate or hydroxide all occurs at the moment in China ... lithium is on the critical minerals list in Canada, the US and Australia, and Canada and the US are working feverishly to develop an internal battery materials supply chain. We think we're going to play a critical role in that.”

Elaborating on the sustainability industry that drives the battery revolution, he said, “(Nearly) all power in Quebec is generated by hydroelectricity and renewable forms of electricity. That’s very important, because the mining and concentration process for lithium products traditionally produces a large carbon footprint, because it's energy intensive. The EU, from 2024, has mandated that all batteries are labeled with the carbon footprint of all the materials that are contained within them. Then, by about 2026, there's specific targets that batteries have to meet in order to be sold in the EU. If you don't have a renewable source of energy to produce your lithium products that go into those batteries, it's going to severely restrict your markets — and that's another bonus for us being in Quebec.”

Evans said that Winsome Resources’ approach is to develop a mine itself, rather than selling or partnering. “We will approach this as if we are going to be developing the Cancet project, and producing lithium ourselves, in four or so years. And I think that'll best serve our shareholders.” With regards to other ways the company could benefit investors, Evans said, “Being listed on the ASX, and having access to a lot of capital, I think there's a great opportunity for us to acquire other projects in Canada. We're about to start our summer exploration. And we're on the lookout for a new project. So I think the good news is really to come.”

Watch the full interview of Winsome Resources CEO Chris Evans above.

Disclaimer: This interview is sponsored by Winsome Resources (ASX:WR1). This interview provides information that was sourced by the Investing News Network (INN) and approved by Winsome Resources in order to help investors learn more about the company. Winsome Resources 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 Winsome Resources 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.

WR1:AU

Where are the silver mines in Australia? You might be surprised to learn that the country is home to one of the world’s top primary silver producers.

Mining is a big part of Australia’s history, and it continues to shape the country’s economy and position in the world today. The nation is one of the world’s top producers and exporters of resources, with coal, uranium, copper and gold being some of its best-known commodities.

Australia is also a key producer of silver — it was the world’s fifth-largest producer of the metal in 2021, tied with Russia, putting out 1,300 MT. Interestingly, most of Australia's silver is produced from silver-bearing galena, but some is also produced from copper and gold mining.

Refined silver comes mainly from the Port Pirie lead smelter and refinery in South Australia, though silver is also refined at gold refineries in Perth, Kalgoorlie and Melbourne.


But where are the silver mines in Australia, exactly? While it’s interesting to know what types of deposits the precious metal is found in, many investors want to know what companies are producing silver and where their mines are located geographically. Read on to find the answers to those questions.

Where are the silver mines in Australia?

Silver has played a role in Australia since the mid-1800s — Wheal Gawler, Australia’s first metal mine, was a silver-lead mine developed in South Australia in the 1840s. And that’s not Australia’s only early silver-mining operation — the Broken Hill deposit in New South Wales and the Mount Isa deposit in Queensland are two other early Australian silver discoveries.

Broken Hill, a lead-zinc-silver deposit, was discovered in 1883 by German immigrant Charles Rasp, and the Broken Hill Proprietary Company was born in 1885; it ultimately merged in 2001 with another mining giant, Billiton, to form BHP Billiton (ASX:BHP,NYSE:BHP,LSE:BLT). BHP Billiton is no longer involved with Broken Hill, but ore is still being extracted there today. Perilya now runs the southern and northern operations.

For its part, Mount Isa was discovered in 1923 by John Campbell Miles, and like Broken Hill is still producing today. It was acquired by Glencore (LSE:GLEN) in 2013 and in addition to silver is also a producer of zinc.

These major early Australian silver discoveries are not the country’s only sources of silver. Other silver mines in Australia include Cannington, one of the world’s top primary silver producers. It’s a fly-in, fly-out mining and processing operation that is owned by South32 (ASX:S32,LSE:S32), a diversified resource company spun out from BHP Billiton in 2015. Cannington also produces lead and zinc.

Australia holds the McArthur River mine as well, which opened in 1995 and is owned by Glencore subsidiary McArthur River Mining. The mine is one of the world’s largest zinc-lead-silver mines, and is located in Australia’s Northern Territory.

Glencore’s 2021 annual report claims total silver production reached 31.519 million ounces for the year, representing a 4 percent drop from 2020. That includes 625,000 ounces from McArthur River.

The Century mine, which previously belonged to MMG (HKEX:1208), shut its doors at the end of 2015, but was a major producer of zinc (and silver) until that time. It was reopened in mid-2018 by New Century Resources (ASX:NCZ) and the company says it now has an estimated annual production capacity of 264,000 tonnes of zinc and 3 million ounces of silver.

Independence Group (ASX:IGO) also produces silver, along with copper and zinc, at its Jaguar operation in Western Australia. Gold producer Silver Lake Resources (ASX:SLR) owns some projects with silver reserves as well. As you can see, there are and have been many silver mines in Australia.

Future silver mines in Australia?

In addition to being home to a slew of large silver mines, Australia also plays host to many companies that are exploring and developing silver projects. Below are a few that have made recent progress.

Please let us know in the comments if we’ve forgotten to mention any Australia-focused silver companies. All companies listed had market caps of at least AU$5 million on May 19, 2022.

Argent Minerals (ASX:ARD) — Argent Minerals’ main asset is its 100-percent-owned Kempfield polymetallic project in New South Wales. In May 2018, the company announced an updated resource estimate for the asset — its silver equivalent contained metal now stands at an estimated 100 million silver equivalent ounces at 120 g/t silver equivalent; that’s approximately double the previous estimate.

In total the company has three projects, with all of them being in New South Wales.

Investigator Resources (ASX:IVR) — Investigator Resources is advancing silver, copper and gold deposits in South Australia. Currently its properties include the Peterlumbo/Paris silver project, the Eyre Peninsula and Stuart Shelf projects and the Northern Yorke Peninsula projects.

The total resource for Paris stands at an estimated 18.8 million tonnes at 88 g/t silver and 0.52 percent lead for 53.1 million ounces of contained silver and 97,600 tonnes of contained lead (at a cut off of 30 g/t silver). The indicated component is 12.7 million tonnes of silver (95 g/t) and represents 73 percent of the total estimated resource ounces.

Horizon Minerals (ASX:HRZ) — Horizon Minerals owns the Nimbus silver-zinc project in Western Australia. Nimbus has a high-grade silver-zinc resource estimate of 255,898 tonnes at 773 g/t silver and 13 percent zinc; the total Nimbus resource stands at 1.21 million tonnes at 52 g/t silver, 0.9 percent zinc and 0.2 g/t gold.

Silver Mines (ASX:SVL) bills itself as a leading Australian silver exploration company, and has spent a considerable amount of time acquiring Australian silver projects. Those include Malachite Resources’ (ASX:MAR) Conrad project and Kingsgate Consolidated’s (ASX:KCN) Bowdens silver project.

While the company’s main focus has been on the Webbs silver project in New South Wales, the Bowdens project represents the largest undeveloped silver project in Australia, and Silver Mines is working to get the project through the feasibility, environmental impact statement and permitting stages.

In a 2018 report, the feasibility study demonstrated an average silver production of 3.4 million tonnes per annum for the project, with 5.4 million during the first three years of operation. Estimations also included 6,900 tonnes of zinc and 5,100 tonnes of lead.

This is an updated version of an article first published by the Investing News Network in 2018.

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

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

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