Post by
Tiger737373 on Jan 09, 2024 4:30pm
Evaluate Properly To Understand Growth
The start of the year is synonymus with updating for any serious business on the stock market. Vision Lithium Inc is no different from any other. Yesterday, January 8, the company released a press release to update these 2023 activities as well as upcoming initiatives for the year 2024. Although most releases are just routine updates to annual reports, the one published by Vision Lithium seems to reveal some interesting information for the continuity of operations in 2024. First of all, the company returned to the announcement of the preliminary economic evaluation of February 2023 which demonstrated the possibility of developing the Sirmac deposit in Direct Shippng Operation ( DSO ) with potentially high return for the company and the shareholders. What the investor should consider in this preliminary study is that Vision Lithium's business model will be primarily focused on shipping minerals in the raw state with much lower but still achievable returns. It is clear that the company will not be able to acheive such high returns since revenues are directly correlated to spodumene prices in global markets.However, the study clearly demonstrates the low cost of direct shipping ores and the unique and compeling characteristics of the Sirmac project. With a surface deposit already stripped and a cost of $ 142 per tonne to transport the ore near spodumene conversion plants like Sayonna and Nemaska, Vision Lithium stands out from others juniors in the lithium sector. In my opinion, Vision Lithium only needs favorable prices of over $ 1500 per tonne of spodumene to be operational. There remains of course the question of the permit which is pending with the government authorities before the (DSO) can be put into service.
Another interesting piece of information is that Vision Lithium has made a request to the Quebec government for a mining permit for the entire Sirmac property in order to build a small processing concentrator for manufacture of spodumene. What must be understood behind the intention of wanting to build a small concentrator is that the Sirmac deposit offers considerable development opportunities since the property has only been drilled on a very small scale and numerous dykes exist and have not yet been explored, which provides many opportunities for growth. Regardless, with the quantities demonstrated with the dykes no 5, the construction of a small-scale concentrator can be economically viable. Of course, environmental and government approvals must be obtained before the construction of a small concentrator can be financed. But when you take the time to evaluate the company's progress and these objectives, there is no doubt that the Sirmac project will be the company priority.
If I take the time to mention it, it's because Vision Lithium took care to mention the progress of the Godslight project in the press release. If I may, the possibility of seeing the company monetize the project either through a sale of the Godslight deposit, or simply through a partnership on this project is very great. What all investors want is to maximize high asset values. But investors should not lose sight of the fact that junior in the mining sector must successfuly finance these activities to acheive these objecitves. So when we take the time to read the subtleties of the press release, the sale of the Godslight deposit seems to be what will be favored first in order to finance the small spodume concentrator. In addition, the company has never hidden its intention to prioritize the Sirmac project. If the company managed to negotiate the Cadilac project for two million and shares of Olympio company in Australia, how much will that of Godslight amount to? I remain convinced that it will cover a good part of the financing of the futur spodumene concentrator. Tell yourself, it is no coincidence that the company decided to retain the services of Innovexplo and BluMetric. It is clear that the company is in discussion with government authoriies to obtain the mining permit. Moreover, I would like to conclude on a point which is not mentioned in the last press release but in the company's last management report of December 18, an information that may seem trivial but very revealing about what will follow. It is mentioned that the Sirmac property royalty was recently purchased, which suggest the possibility of an agreement or participation with the Cree Nation of Mistassini.
In conclusion, despite the many challenges, the company is very active and many news will increase the share value in 2024.
I wish the best of luck to all investors.