Bluebirds wrote: David Lenigas also had his detractors, right up until REM rose 2300% in Aug 2013 when London investors realised the value of Sonora:
[img]https://hotcopper.com.au/attachments/upload_2015-10-15_21-59-3-png.104489/[/img]
Lithium Australia NL (ASX: LIT) aims to control the greatest lithium resource base of any entity worldwide, and are willing to risk one of only two available international licenses for their processing technology in the belief that the Electra Project is contiguous to REM / Bacanora's 7 million tonne Sonora resource.
Given that REM & BCN are worth nearly $250 million combined, the upside potential here is phenomenal. For sure there is a risk, as with all junior explorers, hence the $1 million market cap. But the MOU with international player LIT and their sub $1000 p/t processing technology suggests that they are confident that Electra will develop into a globally significant resource.
2016 is going to be a huge year for lithium with Tesla's giga-factory going live and all major auto companies accelerating their transition to electric vehicle production. The home energy storage business has experienced triple digit gains in some markets is also likely to put pressure on the price of lithium hydroxide which is already pushing $20k p/t in China:
https://www.asianmetal.com/news/data/1271035/China lithium hydroxide prices increase on tight supply
You could probably use a pin to choose a lithium explorer and still make a 100% gain this year, but if Alix get even a hint that Electra can match the scale of Sonora, then the share price will be many multiples of what it is now. Nevada based lithium specialists KCA have already commenced work to identify target lithium zones.
The detractors here know this and for whatever reason, will continue to fill these pages with disparaging comments, despite having seemingly never been invested in the company. Anyone would think they have ulterior motives!