Nemaska Lithium Inc NMKEF

RE:Stormcrow Capital: Positive rating and $0.54 target for NMX

[Bluebirds]

$0.54 = just over $100m market cap. BCN and their JV partner have combined market cap of $300m. Yet NMX is at a far more advanced stage of development of what will become the 2nd richest and largest lithium hard rock mine in the world!

shakerman640 wrote:According to Stormcrow Capital Limited:

https://app.box.com/s/sofc2789u49eucilzj8k4t8mc2f83ojs

NEMASKA LITHIUM INC.

Recommendation: Positive

Target: C$0.54

INITIATING COVERAGE

The New Wave of Battery Lithium Production

- Lithium and the Electric Car: The headline story behind expectations for growth in battery demand is the electric car, but even with pessimistic electric vehicle demand growth and the usual rate of electronic device uptake, lithium demand will likely outstrip supply by the end of this decade.

- New Sources Required: In many commodity markets, the incumbent suppliers can ramp up output to meet new demand. This is likely not the case in lithium, where brine projects are finding it difficult to obtain permission from governments to harvest more, and where hard-rock mines are depleting. New sources of lithium will be required.

- The Right Stuff: Not only will the world likely need more lithium, but to keep the costs of batteries down, it must be in the correct chemical form. The latest and greatest lithium batteries are most inexpensively produced from lithium hydroxide as a feedstock, instead of the lithium carbonate that has long been a mainstay product from brine and hard-rock mines alike.

- Time for Nemaska: Nemaska’s Whabouchi Project will use a well-trodden technology, membrane electrolysis, to convert hard-rock lithium ore to lithium hydroxide. This technology has already been proven in pilot-scale work in Canada, but the company plans to reduce time-to-market even further by building a Phase I commercial demonstration plant that will reduce commissioning time for the full commercial plant while providing qualification samples for customers. For the price, our analysis suggests this strategy is undeniably the right one.

- The New Wave: Lithium has long been the province of solar evaporation. But the price of lithium is likely to be driven higher with increasing demand, since the price of lithium is not the driving factor in battery cost. This is opening the field to new ways of producing lithium, and the industry is now abuzz with discussion of processing technology developed by Tenova-Bateman, POSCO and Nemaska. Nemaska is the cutting edge of this New Wave, and we are initiating coverage on Nemaska with a Positive recommendation.