TSXV:CELL - Post Discussion
Post by
sdhaka on Jan 10, 2024 5:56pm
Lithium prices have experienced a downturn
Lithium prices have experienced a downturn, and we anticipate that they will continue to face pressure due to slower global GDP growth and an increasing supply. It is our projection that the #lithium market will transition from a deficit to a surplus this year. Despite these challenges, we maintain a positive outlook on electric vehicle (EV)-focused junior companies. This is because battery/EV manufacturers and miners are actively seeking long-term stability. In light of the declining lithium prices and the shift towards a surplus, our attention turns to resilient EV markets. One notable junior company in this context is Grid Battery Metals Inc. (TSXV: CELL). Grid's lithium projects in Nevada are strategically positioned near major players and indicate the presence of substantial lithium resources. Key projects include Texas Spring, Clayton Valley, and Volt Canyon. Grid demonstrates financial resilience with $9 million in working capital, constituting 56% of CELL’s market capitalization. Additionally, the company has the potential for an additional $6.22 million through options/warrants, showcasing stability under the experienced leadership of CEO Tim Fernback. Trading at $4,000 per hectare, which is a fraction of the Nevada junior average ($13,000 per hectare), Grid raises curiosity, suggesting potential undervaluation. Stay tuned for our upcoming in-depth report on Grid Battery Metals. Connect with us at www.researchfrc.com by becoming a free subscriber, and receive the report directly in your inbox upon release. *FRC provides issuer paid coverage. *Past performance is not indicative of future results
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