RE: THE GOLD REPORT GOODIES
TICKER: TSX:CLQ; OTCQX:CLQMF
DESCRIPTION: Canada Lithium Corp., a Canadian-based resource and exploration company, has initiated a definitive feasibility study on the Quebec Lithium Project, which includes environmental, metallurgical, geological and engineering studies. The company has an agreement with Japanese metals trading firm, Mitsui and Co. Ltd., to market a portion of its product in China, Korea and Japan. Metallurgical tests have produced battery-grade lithium from deposit samples.
WEBSITE: https://www.canadalithium.com
Corporate Fact Sheet (5/27/10)
The information provided below is based on the most recent information we have received from analysts, newsletters and other contributors to Streetwise Reports' The Gold Report or The Energy Report. We encourage you to visit the company's web site and call the company for more specifics on this company before you decide to invest.
Related Quotes
Canaccord Capital, Morning Coffee (07/22/10)
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"Shares of Canada Lithium spiked Wednesday on no apparent news. . .Canada Lithium is one of Canaccord Genuity Senior Mining Analyst Eric Zaunscherb's favored junior lithium names and one of only a handful of juniors that he believes will successfully make it through to production. The company is targeting first production from its Quebec Lithium mine by late 2012. If all goes according to plan, the Quebec Lithium Mine would be the third-largest lithium producer in the world, and the only major lithium mine in North America."
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Canaccord Capital, Morning Coffee (07/21/10)
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"Lithium Sector Supercharged. One of the biggest concerns regarding lithium-ion batteries in e-cars has been longevity. The Wall Street Journal reported this week that MC Capital Advisors is launching an ETF focused on lithium. The Global X Lithium ETF (LIT) will invest in lithium producers and battery manufacturers. Canaccord Genuity notes that among lithium explorers and developers, the companies with advanced projects that have the potential to cross the finish line in the race to production are Canada Lithium (CLQ), Lithium Americas (LAC), Lithium One (LI) and Orocobre (ORE)."
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Thom Calandra, Stockhouse (07/21/10)
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"Lithium's price has about tripled in the past 10 years. As Ticker Trax subscribers know, some junior producers' shares have risen 600%–1,100% since I first profiled them about 16 months ago. These include Western Lithium, active in Nevada. These include Western Lithium in Nevada and Canada Lithium in Quebec, [respectively]."
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Matthew O'Keefe, Cormark Securities Inc. (07/14/10)
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"Canada Lithium owns the Quebec Lithium project near Val d'Or, Quebec with an M&I resource of 31.6 MMt grading 1.11% Li2O. It is expected to deliver a feasibility study in 2010 and first production in late 2012. . .Quebec is a past-producing asset that produced spodumene and lithium carbonate from 1955–1965 suggesting low technical risk. Canada Lithium currently has a marketing agreement with Mitsui & Co, and we expect offtake arrangements and a portion of financing in exchange for an interest at the project level to follow. We are initiating coverage on Canada Lithium, with a Buy (S) recommendation and 12 month target of C$1.00 based on a 0.8x multiple to NAV."
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Eric Zaunscherb, Canaccord Genuity (05/21/10)
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"We have upgraded our Canada Lithium valuation approach to discounted cash flow analysis from enterprise value per-lb. metrics.
Although there is no change to Canada Lithium’s target and rating, we believe the more sophisticated discounted cash flow approach has greater validity and flexibility, giving us enhanced confidence in our call.
Earlier this year, Canada Lithium released a prefeasibility study for the wholly-owned Quebec Lithium project. The study envisages a 2,950 t/d open-pit operation feeding a process plant yielding approximately 19,300 t/a battery-grade lithium carbonate. We have incorporated adjusted operational parameters from the study and our own pricing outlook for lithium carbonate to generate a C$241 million project NPV (10%), increased from C$190 million previously. We add corporate adjustments including working capital of C$20 million and C$78 million in project equity raised at an average of C
.70/share to generate a corporate NAV of C$343 million or C$1.25 per adjusted fully-diluted share, as compared to C$1.42 per adjusted fully-diluted share previously. We apply a 0.8x target corporate P/NAV multiple to generate our C$1.00 price target. We believe the 102% projected return continues to justify our SPECULATIVE BUY rating. Canada Lithium is trading at 0.2x project NAV and 0.4x corporate NAV. We recommend investors buy for exposure to the lithium supply market in anticipation of expanding e-car adoption."
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