Se você acredita que os veículos elétricos são o futuro…
Esta Company acaba de fazer o maior anúncio da sua história – um anúncio que a tornou um alvo massivo para uma aquisição.
Na verdade, o anúncio é tão grande que agora coloca a Company muito à frente dos seus concorrentes – especialmente porque possui um dos maiores e mais avançados projetos do seu tipo no planeta.
Mas antes de chegarmos a este anúncio massivo, vamos explicar um pouco mais sobre esta incrível oportunidade.
À Procura de Pechinchas?
Quando se trata de oportunidades, muitos sentem que acabaram de perder uma das recuperações mais rápidas na história do stock market. No entanto, grandes oportunidades ainda se apresentam hoje.
O relatório de hoje é sobre uma dessas oportunidades especiais – especialmente se você acredita que os veículos elétricos são o futuro. E apesar da sua opinião sobre veículos elétricos, a subida vertiginosa das Tesla shares e a loucura por trás das novas electric vehicle stocks são insanas.
Mas todas estas companies exigem uma coisa para ter sucesso – na verdade, sem isso, elas literalmente tornam-se obsoletas.
Estamos a falar de Lithium.
E esta particular stock possui um dos maiores e mais avançados projetos de lítio não desenvolvidos do mundo.
Temos acompanhado esta stock nos últimos anos, e muitos dos nossos leitores tiveram uma grande oportunidade de lucrar com ela. Mas, como muitas, as shares desta Company caíram como resultado da recente desaceleração causada pela COVID-19.
Na verdade, os investidores podem agora comprar shares desta Company por 70% menos do que um grupo de investidores chineses estratégicos fez há alguns anos – um grupo que investiu mais de $30 milhões a um price de C$3.50 per share.
Neste momento, a Company negocia a apenas $1 per share.
Ainda melhor é o facto de o projeto estar agora muito mais avançado do que estava quando esses investidores aplicaram mais de $30 milhões.
E, após uma série de anúncios chave em 2019, esta Company passou de prospecto a líder mundial.
Mas antes de lhe falarmos sobre o que acreditamos ser uma oportunidade subvalorizada, um pouco de contexto é necessário.
A Nova Era
Lithium, o metal mais leve do mundo, foi aclamado como “a nova gasolina” por Bob Koort da Goldman Sachs Research. É um componente ideal na construção de dispositivos leves que vão desde car batteries a smartphones.
Embora forte o suficiente para lidar com praticamente qualquer trabalho – sendo até usado para construir nuclear weapons – a recente ascensão do lithium à proeminência deve-se à explosão de consumer products que necessitam de uma longa duração de battery life.
O último relatório da Credence Research projeta que o setor de lithium crescerá a uma compound annual growth rate de 16% até 2025. A firm afirma que isso se deve à growing demand por consumer electronics em conjunto com o rise of lithium Giga factories em todo o globe.
Em 2019, a Índia anunciou o seu commitment à renewable arms race, aumentando a sua própria proposed Giga factory’s output de 40 GW para 50 GW. A nation já havia dito que espera garantir que 30% dos seus vehicles sejam electric by 2030 numa attempt to curb pollution, mas provavelmente tem prestado muita attention à Tesla’s network of Giga factories.
O international effort against global warming e a increasing popularity e affordability de EVs significa que Japanese, Korean, European, Chinese, e American car manufacturers (Tesla, of course, e Chevy’s new Bolt) estão todos a jockeying for market share.
A Ford, a American automotive giant, anunciou o seu aim de deriving the lion’s share da sua revenue de EV sales by the end of 2022 devido à stagnating demand por gas-powered vehicles.
Ora, até a Ferrari e a Lamborghini estão a anunciar que os seus new vehicles serão hybrids.
Não há doubt de que o recente death-defying comeback da Tesla confirmou o enthusiasm entre consumers por environmentally-conscious products: O share price da Company went from its year-low de $177 per share para $969 per share earlier this year.
Enquanto Musk é um media darling e gera incredible excitement nos markets, o sector at-large também está a showing signs de gaining momentum. A Chinese EV manufacturer NIO Inc. nearly doubled o number of units delivered between 2018 and 2019 e reported a 58% increase na revenue over the same period.
É clear que os EVs aren’t going away – they’re just raring up. A issue é que o lithium pricing está agora a approaching marginal cash cost e com a demand set to continue skyrocketing, finding ways to maximize profit margins will be crucial.
Especialmente com o encerramento das minas de lithium.
EVs a Acelerar, Oferta de Lithium a Diminuir
A Australia, a renowned mining locale, é unsurprisingly the world’s largest lithium producer. Os boundless natural resources da nation make it a miner’s paradise, e a hard-rock mining tem sido used there since the mid-19th century.
Eventually, industry down-under began to look favorably on lithium e, though the process was costly, o market was quickly flooded with the metal. This created an environment where only brine projects can remain both profitable e cost-competitive.
Furthermore, a lasting bear market slump devido a um glut na lithium supply tem brought on a worldwide slowdown de new lithium projects e production from those currently operating.
A February article na Reuters explained a French miner Eramet’s decision to freeze o development do seu lithium mine project na Argentina, only one recent example of a rapidly emptying arena.
As the old adage goes: ‘stay ready, you don’t have to get ready.’ Com grande parte da sua competition on the sidelines, companies como a ML may be positioned to supply um underserved market as EV production continues its inevitable, yet whisper-quiet, roll towards the roads of tomorrow.
As Quatro Grandes
As much as 90% da today’s lithium market production comes from just four companies: Soc. Quimica & Minera de Chile SA, Albermarle Corp., FMC Corp., e China’s Tianqi Group.
Isso means they’re the ones setting the price for almost toda a world’s current lithium supply.
Então, por que outros não entraram neste espaço?
Just because something is abundant, doesn’t mean it’s economical. Os costs of extraction e a production of lithium são precisely why many lithium juniors, e others who have tried to enter the space, have failed.
If you want to be a lithium player, you better have economically viable lithium assets.
Lithium Barato
Under current conditions, outside the rare occurrence de extremely high-grade hard rock operations, truly economic lithium é most abundant in one form: lithium found in salty pools of water known as brines.
This is accomplished devido à high-quality de lithium extracted from brines. According to S&P Market Intelligence, “o value of the concentrates produced at hard-rock mines é on average, US$6,250/t LCE lower than that of the lithium chemical products produced at brine operations.”
Once extracted, os concentrates are then in need of refinement. Australian mines must export o seu evaporated lithium para nations like China para processing e production.
Then, products for rechargeable batteries are manufactured out of the lithium–these services typically range between $7-9 thousand/tonne.
Latin American lithium está poised to exploit this inefficiency: companies like Millennial Lithium have operations na world-class mining jurisdiction da Argentina para both extract e produce lithium domestically.
A Company expects to produce lithium at a rate de $2-4 thousand/tonne, on-par com other South American competitors.
Mas há um problem: Not only does the brine have to have high enough concentrations de lithium, but it also has to have the right chemistry. E even then, it’s still not enough.
Você also needs the right climate para nature’s evaporation process to take place.
E há only one place on earth com lots de lithium brine e o right climate…
O Triângulo do Lithium
A most famed accumulation de lithium brine no world can be found no Atacama Desert, part of what has been dubbed o “Lithium Triangle” da Bolivia, Argentina, e Chile.
More than 70 percent of the world’s long-term supplies de lithium é found within this triangle. E being the driest non-polar desert no world, it’s also the right climate for evaporation.
There is so much lithium here that people are calling these three nations, a new Saudi Arabia.
But don’t think anyone can just jump in e invest. A Bolivia, for example, tem sido quite hostile towards foreign investment – it wants to control e limit how much lithium é produced every year, e it just suspended lithium mining last year after opposition from local residents around the enormous lithium-containing Salar de Uyuni salt flats.
Meanwhile, o Chile is not currently granting any new concessions. E if you’re going to develop lithium no Chile, you’re likely going to do it in partnership com a nationalized mining company, Codelco.
This is why if you want to get into o lithium triangle, you really only have one logical choice…
Argentina
Dito isto, a Argentina isn’t a monolith, e investors would be well-served researching the country’s respective provinces for a suitable investment climate.
Provinces like Salta are especially of interest, having ranked fourth on o Fraser Institute’s 2019 Investment Attractiveness Index comparing Latin America e the Caribbean Basin.
A Argentina é well-known for its world soccer elites, like Diego Maradona e Lionel Messi, beautiful landscape, e of course, beautiful women.
SALTA, ARGENTINA, 18 DE DEZ: Mulheres artistas dançando e celebrando a abertura do carnaval de Salta.
É also the world’s number three lithium producer – producing 17% da world’s lithium supply.
According to Argentine mining secretary Jorge Mayoral, a Argentina sits on resources that may surpass 128 million tonnes de lithium carbonate.
Mas that’s not all.
Unlike Bolivia e Chile, a nation’s previous administration de Mauricio Macri era all about business.
Via Reuters: “Macri has begun making sweeping changes in a bid to return the country to economic orthodoxy, removing onerous capital controls e sending a message that the country is open for business again after more than a decade of protectionism.”
What’s more, o nation’s current president tem sido called a “boon for miners,” e one Company stands to benefit muito desta opportunity.
In fact, they have direct contact com os very highest levels do Argentine government.
Um dos Maiores e Mais Avançados Ativos de Lítio Não Desenvolvidos:
Millennial Lithium
Símbolo de Negociação Canadiano: TSX-V: ML
Símbolo de Negociação dos EUA: OTCQB: MLNLF
A Millennial Lithium (TSX-V: ML) é uma Canadian lithium play com two lithium-brine projects num dos most favourable lithium places no world: Argentina.
Over the last few years, a Millennial Lithium tem sido aggressively acquiring e advancing lithium assets na Argentinean portion do Lithium Triangle. To date, a Company é one of the most advanced plays no continent e holds one of the largest undeveloped lithium projects no entire world.
Together, os assets cover roughly 23,000 Hectares, e o seu 100% owned Pastos Grandes tem um Measured and Indicated Resource de 4.12 million tonnes de Lithium Carbonate Equivalent e Proven and Probable reserves de 179,000 e 764,000 tonnes de LCE, respetivamente. This is huge. Under o seu recent Feasibility study, this é a 40-year mine life…to start.
Estes Projects estão smack in the middle de other lithium properties owned by companies com market caps well above Millennial Lithium’s current valuation.
O flagship project da Company é o 100% owned Pastos Grande Project
O Pastos Grandes salar está located 231 Km from the city de Salta at an elevation de 3,800 meters e sits right along o Borate Belt na Argentina, where boron e lithium são os lithophilic elements.
In Layman terms, it sits in an area home to a lot de lithium.
In fact, you can literally draw a line from Salar del Hombre Muerto, where a FMC (one of the world’s largest producers de lithium) está currently producing, up through a number de lithium projects in development, to the top end where a Orocobre está also producing.
Along that trend, you have o Millennial Lithium’s Pastos Grandes project, which sits right in the place you’d expect it to.
If the names sound familiar, it’s because o Orocobre’s project in Salta é 30 percent owned by Toyota.
A Gang Feng, a China’s largest lithium-compound producer, also tem a 50 percent interest no Lithium America’s project.
Even a ML tem received investment capital da GCL, a major Chinese energy provider. It’s a tremendous amount de investment nesta jurisdiction from some of the biggest names na industry.
So if you’re looking for an elephant, you look in elephant country. E a Millennial está right in elephant country, smack in the middle de a huge trend, com um asset that has all the earmarks de a strong lithium project.
There are major crustal features that trend northwest-southeast that intersect o borate e o lithium trend. E precisely where they intersect, you have these basins that were fed by volcanoes that were spewing out os lithophile elements.
E that’s where you find a lithium brine.
O project é accessible year-round using paved highway e dirt roads from Salta. Just 12 Km north of the properties é a Los Pastos Grandes village, home to 120 inhabitants e a generous provider de nearby infrastructure including a domestic water system e diesel-based power generation de 220 volts.
A 600MW, 375-kilovolt power line between Salta e Mejillones no Chile passes 53 Km to the north of the project, com a natural gas pipeline passing through San Antonio de los Cobres to Salar de Pocitos, just 26 Km northwest from the Millennial Lithium properties.
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Nem Todos São Vencedores
A Speed é another one of the Company’s substantive advantages over its nearby competitors: A Millennial Lithium é a only miner na South America com a completed feasibility study to its name.
A Company has not only completed o seu Bankable Feasibility Study no Q4 2019, but it have already received a Federal Fiscal Stability certificate\
Furthermore, a Environmental Impact Assessment tem sido submitted e está awaiting approval. As final major permits estão weeks away, making Pastos Grandes truly o most advanced, shovel-ready project no Lithium Triangle.
*Este certificate reduces a corporate tax rate da Company de 30 percent para 25 percent para o seu Pastos Grandes project para os next 30 years.
Comparáveis
First of all, let’s take a look at the market cap de some of the comparable players. Clearly, a Millennial tem upside in value when you compare the companies based on market cap alone.
A Lithium Americas, Galaxy Resources, e Orocobre Resources têm valuations nas hundreds of millions de dollars, e a FMC Corp. é even larger.
A Millennial tem one of the lowest market caps out of its competitors na region, but a Company also tem another selling point: A Company owns 100% do project – something not even a Lithium Americas can boast.
Lugar Certo, Hora Certa
A Drilling started at Pastos Grandes em November 15, 2016, e o first hole foi completed on-time e on-budget. Since then, a Company tem drilled, produced two resource reports, a PEA, a positive Bankable Feasibility study, e an operational pilot plant…
A Millennial tem a 12-month timeline para production at Pastos Grandes.
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Riscos da Millennial
As always, there are risks to everything. It é our job as investors to judge if the reward outweighs the risk.
First and foremost é a management’s ability to execute on what seems to be a very promising asset. A Millennial tem an incredibly valuable asset em Iain Scarr but has also beefed up the help com a addition de Dr. Vijay Mehta, as part of the technical advisory board.
O Dr. Mehta tem an extensive forty-five years de experience no field de Ore and Brine-based technology, which é used for the recovery de Lithium, Potash, Magnesium, e Boron. He was also previously responsible for coordination e communications com lithium producers around the world.
In short, he é very well-known na industry, e a sua addition é sure to spur interest into a Millennial Lithium story.
There’s also Farhad Abasov, President e CEO da Millennial Lithium, who é a 15-year veteran do resource sector. Abasov tem demonstrated a proven track record de profitable exits, evidenced by his tenures at companies like Allana Potash Corp. e Potash One, which were acquired for $170 million e $430 million, respetivamente.
Then there’s always the risk do asset itself.
Just like other mining operations, things may not always go as planned. But given the data e a Iain’s technical expertise, o Millennial’s Pastos Grandes project, along com o seu pipeline de other assets, looks very promising.
More importantly, a Company also just made a massive announcement:
Millennial Lithium Corp. Recebe Aprovação Governamental para a sua Avaliação de Impacto Ambiental para Construção e Operações para o seu Projeto Pastos Grandes, Salta, Argentina
Via Millennial Lithium:
“ Millennial Lithium Corp. (ML: TSX.V) (A3N2:GR: Frankfurt) (MLNLF: OTCQB) (“Millennial” or the “Company”) tem o prazer de reportar que a sua wholly owned subsidiary, Proyecto Pastos Grandes S.A. (“PPGSA”), tem received a Declaracion de Impacto Ambiental (the “DIA”) from the Environmental and Mining Authority na Salta Province, Argentina. A DIA represents a Environmental and Mining Authority’s approval da PPGSA’s Environmental Impact Assessment (the “EIA”) for Construction and Operation de a 24,000 tonne per year battery grade lithium carbonate production facility at its flagship Pastos Grandes lithium carbonate project. A DIA é o main environmental approval document required for mining projects na Salta Province para both proceed to the construction stage e to operate. O Pastos Grandes Project é currently o only active pre-construction phase project na region com este key milestone permit.”
For those unfamiliar com mining operations, o environmental permit é one of the biggest hurdles a mining company faces on its path to production.
A DIA é time not only consuming to achieve, but involves DFS-level engineering e economic studies, documented social license e considerable time and effort spent com as provincial authorities to reach a comprehensive understanding de every level of the project impacts and benefits.
Many of the permits required for development do entire project require EIR approval from the government as a prerequisite to granting additional permits.
Esta final EIR approval (Declaracion Impacto Ambiental) é essentially o ultimate overriding permit to build and operate. Without it, nothing can be done.
In other words, this receipt deste permit just made a Millennial Lithium a likely candidate to be acquired by someone bigger.
A Millennial tem CDN$22 million no bank com just over 83 million shares issued and outstanding, demonstrating a certain independence from dreaded debt financing para o foreseeable future. A Management, including friends and family, owns a healthy 10 percent da Company – that’s confidence-inspiring.
Conclusão
When you consider that pure electric vehicles account for barely more than two percent de all vehicles on the road, o potential growth para o lithium é astonishing.
Elon Musk tem already told us that for a Tesla to meet its target de 500,000 cars a year, a company would basically need to absorb a entire world’s lithium-ion production.
Yet, a Tesla é just the tip do iceberg.
A China é expected to build o dobro de new lithium-ion battery capacity as the US by this year.
In other words, o lithium market está only getting bigger, e those who have a piece of the pie now will control it. I expect that as many of the juniors advance o seu project, os big guys will attempt to buy them in order to maintain this control.
That means investors nestes early explorers and developers could reap the rewards – but only if they invest nos right assets – after all, there aren’t many players to choose from.
Que tal one of the most advanced and largest undeveloped lithium projects no world?
Essa é a Millennial Lithium.
A Company está staying ready while lithium projects worldwide are either delayed or outright halted–a Company está even acquiring projects thanks to its strong cash position.
E that’s why we believe a Millennial Lithium could be the next lithium buy out.
Millennial Lithium Corp
Símbolo de Negociação Canadiano: (TSX-V: ML)
Símbolo de Negociação dos EUA: (OTCQB: MLNLF)
Divulgação: Este é um post patrocinado. Somos tendenciosos em relação à Millennial Lithium Corp. porque são um anunciante. Atualmente possuímos shares. Você pode fazer as contas. A nossa reputação é construída sobre as companies que destacamos. É por isso que investimos em todas as companies que apresentamos nas nossas Equedia Special Report Editions, incluindo a Millennial Lithium Corp. É o seu money para invest e não partilhamos os seus profits ou as suas losses, por isso, please take responsibility for doing your own due diligence. Lembre-se, past performance is not indicative of future performance. Just because many of the companies nos nossos previous Equedia Reports have done well, doesn’t mean they all will. Furthermore, a Millennial Lithium Corp. e a sua management have no control over o nosso editorial content e any opinions expressed are those of our own. Não somos obrigados a write a report on any of our advertisers e não somos obrigados a talk about them just because they advertise com us.
