Lithium stocks, particularly junior lithium explorers in Clayton Valley, Nevada, are receiving the lion’s share of speculative investing interest in an otherwise barren desert of resource carcasses. Graphite issuers, which are also a part of the renewable energy revolution, are also catching a serious bid as interest remains high in these two sectors.
While the junior copper or iron ore explorer breathes its last dusty breath of sand before passing out, lithium explorers are splashing each other with excess water in an oasis of investor interest.
Case in point is Lithium X Energy Corp. (LIX:TSXV) which began trading on the TSX Venture yesterday.
The company traded nearly 1.5 million shares yesterday, which in some regards is unsurprising as management and large shareholders, will in some occasions, work hard to ensure a company’s first day of trading is strong. After opening at $0.36, it shares hit a high of $0.57, only to close at $0.40 per share.
The Company has 28,125,732 common shares issued and outstanding and 2,805,000 options with exercises prices ranging from $0.11 to $0.15. Lithium X has approximately $2,473,250 in working capital.
With a market cap of approximately $11.2 million Tuesday morning, the company’s assets and management team were being given considerable value.
Lithium X Energy: strategic player or area play?
Lithium X Energy, previously Royce Resources described its land package at the bottom of an October 2nd press release:
“The Property consists of 77 unpatented placer claims covering 1540 acres located in Clayton Valley, Esmeralda County, Nevada. Clayton Valley is the site of the only lithium brine production operation in North America which has been in production since 1966. There are now 7 publically acknowledged aquifers on the producing property in Clayton Valley and Pure Energy Minerals, who owns the Clayton Valley South Project, has recently released an inferred resource of 816,000 tons of lithium carbonate equivalent on the Clayton Valley South Project.”
source: http://app.quotemedia.com/quotetools/newsStoryPopup.go?storyId=78444103&…
Lithium X Energy focused on Clayton Valley
Lithium X Energy was down 7.5% Wednesday to $0.37 per share, before rebounding to $0.405 per share on over 250,000 shares traded by 1:20 PM EST.
One separating factor between other lithium area plays surrounding Pure Energy Minerals and in the vicinity of Tesla’s developing Gigafactory, which we wrote about here, is that Lithium X has some exceptional leadership.
The company’s CEO is Mr. Paul Matysek, who is known for leading Energy Metals Corp. to a $1.8 billion buyout by SXR Uranium One in 2007. Most recently, Paul was the CEO of Lithium One who merged with Galaxy Resources of Australia in a $112 million deal.
Lithium X is not Matysek’s only deal as he is also the CEO of Goldrock Mines and Chairman of Nano One Materials (also in the lithium space). He also sits on numerous boards and is credited with having led over $2B in capital growth.
We outline Matysek’s success in our ultimate rolodex of Canada’s top small-cap CEOs.
In our latest EBook we reveal 50 leaders who took small-cap stocks to stunning multimillion dollar buyouts. The companies these leaders run today are also described. Many of the top entrepreneurs and business minds, including Paul Matysek, in the small-cap mining, tech and energy sectors, operating in North America’s small cap public markets are reviewed.
Lithium and graphite stocks remain actively traded in comparison to many base metal explorers. This is due to the fact both lithium and graphite are critical to the renewable energy and lithium battery markets. Lithium is a sub-sector of renewable energy and, much like the marijuana sector, is benefiting from policy and government subsidies as the shift to renewables continues. This has investors focused on the suppliers of raw material to facilitate this growth in the coming years. We wrote about the historic COP21 summit taking place right now in Paris on two occasions. In a Weekly volume titled A Global Fossil Fuel Tax? In June of this year, and, more recently, on November in a Weekly Volume titled Goodbye Oil, Hello Renewables.
Like all junior resource stocks, Lithium X Energy has a long way to go but is operating in a sector and region, in Clayton Valley, Nevada, that continues to stir up interest, despite the overall weak sentiment towards the junior resource market.
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.
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