Magnesium Alloys Can Now Be Used in Airplane Seating

It’s official: a longstanding ban on the use of magnesium alloys in airplane seating has been lifted, and aircraft seat makers in the US can start using the material.

It’s official: a longstanding ban on the use of magnesium alloys in airplane seating has been lifted, and aircraft seat makers in the US can start using the material.
Runway Girl Network (RGN) reported that last week, the Society of Automotive Engineers published a key change to aviation standards that allows the use of magnesium alloys in interior airplane components.
The rule, which once read “[m]agnesium alloys shall not be used,” has been changed to “[m]agnesium alloys may be used in aircraft seat construction provided they are tested to and meet the flammability performance requirements in the FAA Fire Safety Branch document.”

That’s good news for Magnesium Elektron, a company that’s been working hard to get such approval for several years. It’s been slowly progressing toward its goal, with the Federal Aviation Administration (FAA) first indicating that it was warming up to magnesium alloys in June 2013.
German aerospace seating manufacturer Zim Flugsitz started using Magnesium Elektron’s proprietary Elektron® 43 alloy in aviation seating last spring.
Compared to aluminum, which is normally used for the construction of airplane seats, magnesium alloys are significantly lighter, stiffer and more ductile. However, magnesium is also highly flammable once it reaches high temperatures, and has thus been considered too dangerous for use in airplane seating.
However, the FAA started to change its mind back in 2007 following the results of burn tests on some of Magnesium Elektron’s alloys. “In the test the FAA exposed the bar to the burner for four, five, six minutes of flame,” Magnesium Elektron’s Bruce Gwynne told RGN. “A lot of the people with the FAA observing the test thought that as soon as you hit the bar with the flame it was going to just burst into flame immediately; they even had explosion shields set up. In the end they were all standing up front, close up, just looking at the test with no barriers.”
Furthermore, while seat makers weren’t too inclined to make the switch from aluminum in the past, Gwynne added that he’s seeing more and more manufacturers warming up to the idea of magnesium.
“They sell these seats for hundreds of thousands of dollars per pax; the revenue return on them is just incredible and there wasn’t a real incentive to get weight out of them, even though they weigh hundreds of pounds per pax,” he explained. “But now that is beginning to change and we are now hearing from virtually all the premium seat manufacturers because they have big chunky structural components that are in aluminum. In a lot of them, with just a little bit of engineering, it would be quite a simple substitution and they would be able to save quite a bit of weight immediately.”

While aviation seating might not seem like the biggest market to follow, it isn’t insignificant — the North American commercial aviation aircraft seating market is expected to grow to approximately $3.546 billion by 2019.
Certainly, the determination to get magnesium alloys approved for use in airplane interiors speaks to the advantages of the metal in manufacturing. Critical metals investors will not doubt want to keep an eye on the aviation seating industry as well as other sources of demand for magnesium.
Company news
MGX Minerals (CSE:XMG) closed the final tranche of its previously announced private placement for gross proceeds of C$146,274. A portion of funds from the placement will be used to continue exploration and permitting activities at the company’s Driftwood Creek magnesium project, while some of the funds will be used to settle an outstanding shareholder debt and for general working capital.
Last month, MGX began archeological assessment studies at Driftwood Creek.
Nevada Clean Magnesium (TSXV:NVM) closed the first tranche of a $150,000 non-brokered private placement for proceeds of $50,000. The company intends to use money from the placement for US property payments and general working capital. The company recently signed a joint venture agreement with Norwegian industrial minerals company ScanMag in June.

Securities Disclosure: I, Teresa Matich, hold no investment interest in any companies mentioned.
Editorial Disclosure: MGX Minerals and Nevada Clean Magnesium are clients of the Investing News Network. This article is not paid for content.
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Catch up and get informed with this week's content highlights from Charlotte McLeod, our editorial director.

Top Stories This Week: Powell Gets Fed Nomination, Using Gold in a Market Correction

We're back after a break last week with quite a bit to cover in the gold space.

After running up past the US$1,860 per ounce mark midway through November, the yellow metal has taken a tumble. At the time of this writing on Friday (November 26) afternoon, it was sitting just under US$1,790.

Gold's losses this week have been attributed to elements like a stronger US dollar and better Treasury yields, although Jerome Powell's US Federal Reserve chair renomination has pulled other factors into play — some market watchers believe he may move to taper and raise interest rates faster than anticipated.

If the Fed follows its previously laid out timeline for tapering, it will wrap up in mid-2022; the central bank has said it won't raise rates until after that. It has also emphasized that its roadmap may change if necessary.

Looking at the larger picture for gold, I heard recently from Nick Barisheff of BMG Group, who believes the stock market is due for a major correction.

"The market is due for a major correction. What will cause it and when it will happen is anybody's guess — it could be tomorrow, it could be six months from now" — Nick Barisheff, BMG Group

It's impossible to know when this correction will happen, but Nick emphasized the importance of acting before it's too late. He pointed out that investors are typically slow to get out of the market once a crash actually begins — they wait for a turnaround, and by the time it's clear there won't be one, they've experienced big losses.

In his opinion, the solution is to get out of the stock market early and transfer money into gold.

Here's how Nick explained it:

"Instead of taking your money off the table and going into cash … you go to gold (because cash is devaluing daily). Gold will at least hold its own and probably appreciate … so by sitting it out in gold you can wait until the market finishes correcting and then buy back in" — Nick Barisheff, BMG Group

With gold's future in mind, we asked our Twitter followers this week what price they think the metal will be at the end of 2021. By the time the poll closed, most respondents had voted for the US$1,800 to US$1,900 range.

We'll be asking another question on Twitter next week, so make sure to follow us @INN_Resource or follow me @Charlotte_McL to share your thoughts.

Finally, in the cannabis space, INN's Bryan Mc Govern spoke with Dan Ahrens of AdvisorShares to get his thoughts on 2021 trends and what's ahead in 2022.

Dan was candid, and said if he had to choose one word to describe the cannabis market in 2021, it would be "painful." Like many others, he's been disappointed in the industry's performance — while positivity initially ran high due to excitement about potential federal changes in the US, ultimately progress has been slow.

"Cannabis started with a big run-up in January and February ... and things dragged from there" — Dan Ahrens, AdvisorShares

Still, Dan has hope for 2022 and said it will be a "huge year" for cannabis. He believes US reforms will come sooner rather than later, and in his opinion those widely anticipated changes will bring a wave of M&A activity.

Specifically, he expects to see alcohol, tobacco and other consumer packaged goods companies making deals with cannabis players, not just cannabis entities doing transactions with each other.

"Those big alcohol companies, tobacco companies, other consumer packaged goods product companies — they're waiting. They're waiting on the US" — Dan Ahrens, AdvisorShares

Want more YouTube content? Check out our YouTube playlist At Home With INN, which features interviews with experts in the resource space. If there's someone you'd like to see us interview, please send an email to

And don't forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Charlotte McLeod, 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.

cannabis plant layered with German flag graphic
Dmytro Tyshchenko / Shutterstock

Catch up on some of the biggest news of the week for the cannabis investment world.

Three political parties have formed a coalition in Germany, leading to a new government, and it has promised cannabis reform in the European nation.

Meanwhile, a popular cannabis retailer confirmed consumers will now find its products available for delivery on the Uber Eats mobile application in Ontario.

Keep reading to find out more cannabis highlights from the past five days.

Coalition of parties promises forward-looking cannabis policy

Germany, a country with comprehensive and elaborate medicinal rules for cannabis, is in a time of transition as a new government is set to begin to take over after 16 years of Angela Merkel.

Olaf Scholz, the proposed next chancellor of Germany, leads a three party coalition that will become the country's governing body. As part of its promises, talk of adult-use cannabis regulation has now gained even more momentum. A report from MJBizDaily quotes a German policy document that shows the coalition's stance:

"We are introducing the controlled distribution of cannabis to adults for consumption purposes in licensed shops. This controls the quality, prevents the transfer of contaminated substances and guarantees the protection of minors."

However, despite the promise and excitement, it remains to be seen how these ideas will be applied since no formal regulations have been drafted or approved yet.

Canadian cannabis retailer partners with popular delivery app

Tokyo Smoke, a cannabis retail operator in Canada owned by Canopy Growth (NASDAQ:CGC,TSX:WEED), announced a collaboration agreement with Uber Canada (NYSE:UBER) whereby cannabis consumers will be able to use the Uber Eats app to order products before they visit stores.

While the app won't let consumers get cannabis delivered to them, this new method opens the doors to more dynamic ways of buying cannabis.

"As a market leader in innovation and a platform used by so many Canadians, we believe this is the ideal next offering that can be done safely and conveniently on the Uber Eats app," Mark Hillard, vice president of operations with Tokyo Smoke, said in a press release.

A report from the Canadian Press indicates Ontario is considering allowing dispensaries to have delivery and pickup options made available to consumers permanently. The province allowed some of these purchasing options at the outset of the COVID-19 pandemic, but then removed them.

Lola Kassim, general manager of Uber Eats Canada, said this new end-to-end experience will provide consumers with responsible access to legal cannabis products.

Cannabis company news

  • Organigram Holdings (NASDAQ:OGI,TSX:OGI) issued financial results for its Q4 2021 period. In its report, the company notes a net loss of C$26 million despite a 22 percent uptick in net revenue to C$24.9 million. Beena Goldenberg, the newly appointed CEO of the firm, is encouraged by the market share position earned by the company, which said it became the fourth biggest producer in Canada during the reporting period.
  • Halo Collective (NEO:HALO,OTCQB:HCANF) confirmed the decision for Akanda, its spinoff company focused on international cannabis opportunities, to begin trading on a US exchange. "The number of shares to be offered and the price range for the proposed offering have not yet been determined," the company told investors in a press release.
  • High Tide (NASDAQ:HITI,TSXV:HITI) announced the acquisition of 80 percent of NuLeaf Naturals, a CBD product wellness developer, for an estimated US$31.24 million. The deal includes a three year option clause for High Tide to complete a total acquisition. "As international markets open up and as export regulations evolve, NuLeaf's cGMP-certified facility positions us to take advantage of the global CBD business opportunity," Raj Grover, president and CEO of High Tide, said.
  • Humble & Fume (CSE:HMBL,OTC Pink:HUMBF) released the financial report for its first 2022 fiscal quarter to shareholders and the market. "As the legal cannabis market in North America continues to mature, Humble remains agile and focused on providing a leading solution for brands to scale quickly and retailers to focus on their customers," Joel Toguri, CEO of Humble, said.

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

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


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