Big Lithium players are up, but leading small lithium players are up a lot more
Finding big returns in the lithium space
Lithium, the white powder that is crucial to powering the future in the form of Lithium-ion batteries, is in high demand thanks to automakers like Tesla and others who are looking to double or even triple EV (Electric Vehicle) production over the next few years.
In March of 2016, Elon Musk (Tesla’s CEO) stated, “In order to produce half a million cars a year… we would basically need to absorb the entire world’s lithium- ion production.” The Wall Street Journal concurred stating, “Tesla and other electric-vehicle makers are swallowing up lithium for its use in lithium-ion batteries that power electric cars.”
Big Lithium Players Up Significantly – 63% Plus Returns This Year!
The result, large lithium players are up on demand. Of our surveyed group, the two leading selections had a three year performance for investors of 64.59% and 50.82% respectively. Even the trailing stock in the group managed to offer a 32.82% total returns over the last 3-years.
Take Note: the leading lithium producers are on the ground in South America – a real hot spot for current and potential future lithium production.
Leading Small Lithium Players Show Bigger Gains – 340%+ Since Making Major Lithium Advances
Sifting through the field you’ll see three junior lithium players whose price increased as much as 529% + after announcing significant advances in lithium deals, but there’s also an emerging lithium company (NRG Metals Inc) that has made similar advances, but yet has not been impacted. This company stock has the potential for big gains – an easy double or triple.
Early participants in lithium, that are junior exploration or mining companies with demonstrated success in advancing lithium projects, they’ve all demonstrated significant gains after structuring financing and advancing interests in lithium:
- Lithium X – 529% gain – after announcing acquisitions next to Albemarle Corp. (the world’s leading producer) and advancing two projects in Argentina.
- Nemaska Lithium – 329% gain – after announcing capital raises and making headway on lithium plant operations in Quebec.
- Millennial Lithium – 345% gain – after entering reaching option agreements on Argentinean lithium operations and capital structuring.
Between all three, the average gain is over 400%. Apply a similar model and you’ll identify a player with a similar profile in the pre-discovery stage: NRG Metals Inc.
NRG Metals Inc. Is On The Ground in South America
Argentina is one of the most highly productive lithium mineral regions in the world. Its brine projects play host to several of the largest producing mines providing some of the highest quality lithium available, accounting for about 51% of all lithium production. This region contains a number of highly mineralized salars (or salt fields) including the lithium producing salar Hombre Muerto, and the Salar Olaroz.
NRG Metals Inc. is a Canadian based mining company with lithium interests in Argentina. The company has two projects that are strategically located within the Lithium Triangle, in close proximity to one of the largest known lithium deposits in Argentina and within the Puna Region, an elevated plateau which lies on the eastern side of the Andes Mountains.
Being a Canadian mining explorer, coupled with the fact that NRG Metals has attracted strong management that hail from well-known Argentinean lithium mining companies, is a boon. In fact, the C.O.O. Jose de Castro was the man responsible for identifying and building the world’s most recent lithium brine project, the Salar de Olaroz Ltihium Facility for Orocobre. Also, Project Manager Fernando Villarroel has a solid background in Argentine lithium, and his experience includes designing the pilot plant for Lihthium Americas. Often in this business, management above the ground is as important as what lies beneath the ground.
Two Ways to Win
Exploration stage companies live and die on their drill results, and as the old saying goes, “two shots are better than one.” NRG Metals Inc. is advancing two lithium brine projects in the heart of a key Argentinean lithium region. “Its big exploration shot” is the 29,000 hectare Salar Escondido lithium project which just received drilling approval from the Province of Catamarca. To date, NRG Metals has completed sampling work at surface that returned anomalous lithium values. More importantly, they completed a Vertical Electric Sounding (“VES”) geophysical program at surface which identified a zone deeper down that appears to be a brine zone. That important “low resistivity zone” is depicted on the cross sectional below and is interpreted to represent a conductive solution rich brine zone.
VES is a proven technology that measures the resistivity of zones and has helped discover many lithium deposits in South America. In short, it identifies brine zones in these basins that can host lithium deposits. The next stage is to drill up to six test wells to confirm the expectation that the zone identified within this large basin contains lithium.
Location is key
NRG Metals, Hombre Muerto North lithium project is well positioned. It sits right beside, proven FMC’s lithium producing Fenix Mine and Galaxy Resources Sal de Vida Lithium Project, both in the province of Salta. The NRG Metals land package is currently 3,287 hectares and can likely become significantly larger. Location here is everything as the Hombre Muerto Salar is one of the most explored in Argentina. Work by Galaxy Resources, a big Australian lithium player right next door, has confirmed that the higher grade areas of the salar are trending north, towards the NRG Metals land package. A drill hole released by Galaxy in this area returned lithium values from 564 mg/L Li to 895 mg/L Li, and that hole is only 750 meters south of the NRG claim border. Recent sampling on the NRG Metals claim blocks returned even higher lithium values. So based on the available data, NRG Metals has applied for permission to drill up to six exploration test wells, six pumping wells, and complete initial evaporation test pond construction. This should be easy work with potentially really good results. NRG Metals anticipates permission to drill very soon.
Two high-potential Lithium projects mitigate risk by providing a balanced company approach – drill both a high risk, high reward exploration shot, and balance the risk with work within a known exploration area. There should be very interesting news flow from NRG in the immediate future.
FEATURE STOCK: FOR COMPARISON
TSX: NGZ OTCQB: NRGMF
Market Cap: $5.3 Million
Emerging Lithium-brine stock
Two high-potential properties
Experienced Lithium management team
Latest Headline: Receives Drilling Permits for Salar Escondido Lithium Project
Lithium Winners: Too Late to Capture Big Gains, But Still Good to Study
These stocks represent some of the early leaders who have already experienced a major lift from the rise in lithium. They are not likely to see the kind of appreciation that our feature company could produce, but they are solid examples of just how much profit the lithium market is already yielding.
Market Cap: $9.1 billion
Albemarle Corporation, headquartered in Charlotte, NC, is a global specialty chemicals company with leading positions in lithium, bromine and refining catalysts.
Latest Headline: Albemarle receives prestigious LEED Gold certification
Sociedad Quimica y Minera de Chile
Market Cap: $7.2 billion
SQM, a worldwide company based in Chile and founded in 1968, has a strong global presence in a wide variety of industries and applications through its five business lines: Specialty Plant Nutrition, Iodine and derivatives, Lithium and derivatives, Industrial Chemicals and Potassium.
Latest Headline: SQM buys 50% stake in Australian lithium project for $110M
Market Cap: $6.3 billion
For more than a century, FMC Corporation has served the global agricultural, industrial and consumer markets with innovative solutions, applications and quality products. FMC operates its businesses in 3 segments: FMC Agricultural Solutions, FMC Health & Nutrition, and FMC Lithium.
Latest Headline: FMC Corporation Announces Definitive Agreement to Sell Omega-3 business to Pelagia AS
OTC: NMKEF TSE: NMX
Market Cap: $261.5 million
Nemaska Lithium is a pure play lithium investment. The Company is solely focused on developing its Whabouchi lithium project into a viable lithium mine and becoming a leading supplier of lithium hydroxide and lithium carbonate to the emerging lithium battery market as well as other applications.
Latest Headline: Nemaska Lithium Completes a $50 Million Bought Deal Public Offering
Our Recommendation: NRG Metals Gets Our Highest BUY Rating
One simple way to play this market: get in on the junior mining production of lithium, right now. In other words, go to the source. That makes South American lithium production an obvious choice.
Look for leverage, like 10 to 1, 20 to 1 or better on our speculative selections. For those kind of massive returns, you need to look at the early stage mining business with the focus on discovery of a potentially viable resource. Of course, you need results to prove your expectation, but that’s why we’ve zeroed in on Argentina and NRG Metals.
NRG Metals has all the earmarks of a serious future lithium player and they’re moving rapidi to advance their lithium interests. Here’s what we’ve already seen NRG Metals achieve:
- Acquired two Argentinean projects in close proximity to the leading lithium producers, including world leader FMC.
- Put over $1.5 million CDN financing in place for the exploration drilling of the Salar Escondido project to prove up potential lithium resources.
- Obtained drilling permitting to advance exploration on Salar Escondido.
- Added a land package in the producing Hombre Muerto salar, in the middle of two of the largest players in the industry.
- Filed for drilling permits for the Hombre Muerto North lithium project
All of this has taken place in a very short time period, since 2016. In addition, the Company upgraded to the OTC Markets QB board, giving level two quotes, and a high level of corporate transparency. Word is just getting out that NRG Metals has yet to realize the kind of market attention that has led to huge increases in other small lithium resource companies’ share prices.
A well-timed investment of $6,253 Would Have Given You over $33,078
Others have already cashed in on this trend. For instance, if you had sunk just $6,253 in the three stocks mentioned stock prior to their respective news announcing acquisitions and advances in lithium projects, that investment would be worth over $33,078.
Our recommendation is to position now, while the market is looking for direction. Consider NRG Metals Inc. (OTCQB: NRGMF ; TSX: NGZ) at its current undiscovered stage. Follow company news and track advances – join their email list at www.nrgmetals.com or call NRG Metals directly at 855-415-8100.
Just remember that those who waited on companies like Lithium X, Millennial and Nemaska because they were smalle or early stage exploration stage companies, missed out on some of the biggest movers within the lithium sector.
Lithium Long Term
You may hear a lot of buzz about the lithium market suggesting that the supply imbalance is just the result of another “bubble.” We disagree. The market shift is far too substantial for this to be a fad or singular spike based on speculative demand.
If you believe a single word that Elon Musk, the visionary head of Tesla has offered about the future of electric power, you have to agree that lithium is here for the long term and valued suppliers to the industry stand to make a fortune.
We believe early investors in companies looking to take the lead should reap the greatest rewards.
Important Note *
As mentioned, NRG Metals is planning a drilling program to confirm the expectations for both the Salar Escondido and the Hombre Muerto North lithium projects. News, such as further positive lithium drill results or increased purity, could have a significant impact on its share price.
American News Group
The presentation contains technical disclosure, which was supervised by Mr. William Feyerabend, a Certified Professional Geologist and a member of the American Institute of Professional Geologists, and a Qualified Person as defined under National Instrument 43-101. Mr. Feyerabend approves the scientific and technical disclosure contained in this presentation.Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Americannewsgroup.com is a wholly-owned subsidiary of Market IQ Media Group, Inc. (“MIQ”). MIQ has been paid a fee for NRG Metals Inc. advertising and digital media. There may be 3rd parties who may have shares of NRG, and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this newsletter as the basis for any investment decision. The owner/operator of American News Group does not own any shares of NRG.While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.