Nemaska Lithium (NMX:TSXV) has broken through $1 and did so on a day that saw the TSX Venture and lithium stocks explode.
Nemaska Lithium tops Venture: market cap exceeds $240 million
Nemaska Lithium hit a high of $1.21 per share on over 5.2 million shares traded by noon Monday. The trade value that some of these lithium and resource stocks is beginning to trade is truly amazing.
Over $6.7 million exchanged hands on more than 1,500 individual trades in Nemaska’s market Monday.
This type of participation at such elevated levels is unprecedented in recent history on the TSX Venture when it comes to junior resource stocks. These are numbers we haven’t seen in years. I identified Nemaska Lithium and a rising trend of Google searches for the company in a December article titled Lithium Stocks Catch Christmas Bid. Below is a short excerpt:
“Nemaska Lithium has had 21 individual press releases thus far in 2015. How many junior mining companies can say that? Very few.
Volume trends, generated by Google, showed a significant increase in searches for lithium stocks from July to September.
In July 2015 there were 1,300 searches for Nemaska Lithium, 2,400 in August and 6,600 in September.”
Click here to read the entire article.
Nemaska Lithium traded for just $0.38 per share that day.
In preparation for the next TSX Venture bull market, which is now upon us, we published our latest EBook way back in early 2015. The book outlines 50 leaders who took small-cap stocks to stunning multi-million, and in some case billion, dollar buyouts. The companies these leaders run today are revealed in this one of a kind rolodex of the top entrepreneurs and business minds, operating in North America’s small cap public markets.
Click the below image to get your free copy today.
Even after pulling back, Nemaska’s market cap was hovering at about $244 million. If the Venture keeps running, these types of market caps for advanced mining plays will become less of an anomaly.
Lithium stocks: Nemaska’s race to production
On April 4th, Nemaska Lithium put out results of an update to its May 2014 Feasibility Study (2016 updated Feasibility Study) on its Whabouchi Mine and Concentrator to be located in the Eeyou Istchee James Bay territory in Quebec and its Hydromet Plant to be located in Shawinigan, Quebec. The numbers were significant. The title said it all:
“Nemaska Lithium Whabouchi Updated Feasibility Study Shows a Pre-Tax NPV at 8% Discount Rate of $1.9 B (After-Tax $1.16 B) and a Pre-Tax IRR of 37.7% (After-Tax 30.3%)”
Nemaska’s 1 Year Chart
With Tesla Model 3 preorders hitting a huge $14 billion in just one week, demand for electric cars and the lithium fueled batteries which charge them has never been greater.
Elon Musk tweeted:
“Over 325k cars or ~$14B in preorders in first week. Only 5% ordered max of two, suggesting low levels of speculation.”
Canada hopes to increase lithium production
In 2014, Australia led the way with 13,000 tons of lithium production. Chile came in second with 12,900 tons.
Chile has the reserves. And, “Overall, Chilean mines feature the largest confirmed lithium reserves in the world, with over 7,500,000 tons of lithium. By that estimate, the country hosts roughly five times more lithium than Australia, which features the second-largest reserves.”
source: http://www.thestreet.com/story/12758999/1/2013-top-8-lithium-producing-c…
Canada, through companies like Nemaska Lithium, is looking to move its way up that list.
In Nemaska’s 2016 updated feasibility study the company reported:
“Average per year of approx. 213,000 tonnes of concentrate to produce approx. 27,500 tonnes of lithium hydroxide and approx. 3,245 tonnes of lithium carbonate.”
Click here to read the entire press release.
27,500 tonnes of lithium hydroxide is significant per annum production on a global scale. To clarify, it is lithium hydroxide that is used to produce the cathode material for lithium-ion batteries, necessary for Tesla’s Model 3.
Investing News Network, explains that,
“Some lithium-ion battery manufacturers may use lithium carbonate as an alternative, but due to the high nickel content in cathode materials such as NCA and NMC, producers of those cathodes can only use high-quality lithium hydroxide.”
Click here to read more.
Nemaska Lithium was the third most liquid stock on the TSX Venture Monday as investors rushed into the hopeful lithium producer.
This article represents solely the opinions of Alexander Smith. Alexander Smith is not an investment advisor and any reference to specific securities in the list referred to in the article does not constitute a recommendation thereof. Readers are encouraged to consult their investment advisors prior to making any investment decisions. The information in this article is of an impersonal nature and should not be construed as individualized advice or investment recommendations.
This is not an invitation to purchase any securities mentioned in this report. Pinnacle Digest does not endorse or recommend any of the referenced securities. At the time of publication and distribution of this report (2:30PM PST on April 11, 2015) neither PinnacleDigest.com, its employees or consultants owned shares in any of the mentioned companies in this report. This article is intended for informational and entertainment purposes only. The author of this article bears no liability for losses and/or damages arising from the use of this article. This report may contain technical or other inaccuracies, omissions, or typographical errors, for which PinnacleDigest.com and its parent company assumes no responsibility. We do not guarantee that any of the companies mentioned in this report or on PinnacleDigest.com will perform as we expect, and any comparisons we have made to other companies may not be valid or come into effect.
All statements in this report, other than statements of historical fact, should be considered forward-looking statements. These statements relate to future events or future performance. Much of this report is comprised of statements of projection. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.
PinnacleDigest.com and its employees are not a registered broker-dealer or financial advisors. Before investing in any securities, you should consult with your financial advisor and a registered broker-dealer. Nothing in this article should be construed as a solicitation to buy or sell any securities. This article is intended for informational and entertainment purposes only. The author of this article bears no liability for losses and/or damages arising from the use of this article.
