CRE U.S. Newsletter Coverage There is a newsletter in the States that initiated coverage of CRE last week. They have a large following and a reputation of picks that bring large returns. This would explain the U.S. buying that CRE has been experiencing.
Anybody that has followed CRE will know that they have the resource, team, future upside etc to go the distance but they are not showy or overly promotional. This newsletter spices things up for U.S. investors which CRE needs at the moment. All of their numbers are in U.S. dollars and this is just an introduction to their readers with a more detailed report to follow.
Here you go:
Copper isn’t the only element that’ll get a boost as the EV revolution comes to fruition. To keep up with increased demand, the supply of lithium also has to not only grow… but increase by orders of magnitude.
The issue right now is most of the lithium used in EVs comes from Chinese miners. And China has a tendency to hoard precious resources for its domestic industry.
Because of this, the race is on for new lithium suppliers – especially those based in friendlier jurisdictions. That’s where today’s second recommendation comes in.
Critical Elements (CRECF) is based in mining-friendly Quebec, Canada, and has nine exploration projects underway spanning lithium, graphite, nickel, copper, and zinc – with the primary focus on lithium.
Its crown jewel is the Rose Lithium Project in Quebec. It spans 435 square miles and has a present net value of $601 million. Keep in mind, Critical Elements’ entire market cap is only around $176 million at current prices. So the value here is tremendous.
The company’s next-best location is its Bourier Project. It contains a wider range of metals like copper and zinc. This gives it exposure to other minerals, but Critical Elements is a small company… And most of its efforts are going into the Rose Lithium Project, where it sees the most potential profit.
That’s why it’s teamed up with Lomiko Metals to further explore and develop this project. This agreement pays Critical Elements cash up front… and pays out further as exploration continues. Fully exercised, Lomiko will own 70% of the Bourier Project. And Critical Elements will still own a 2% royalty of production.
It’s a savvy move that brings cash in the door – and leaves Critical Elements free to focus on lithium production elsewhere.
Not only this, but Critical Elements is founded and operated by savvy mining executives with a history of successful exits. In fact, its president, Dr. Steffen Haber, was formerly the CEO of Rockwood Lithium. He helped to broker a deal to sell it to Albemarle in 2015 for $5 billion.
As with Bam Bam Resources, we’ll provide additional details on Critical Elements in our upcoming special report. In the meantime, let’s take advantage of this excellent entry point in the stock – before the market wakes up to the value here.
The bottom line is even if we assign zero value to its Bourier Project and recent deal with Lomiko, the stock is trading at one-third the value of its Rose Lithium Project… in one of the best mining districts in the world (Quebec)... with some of the top executives on the planet.
This is one of the only remaining undervalued plays in the lithium and EV space today. The stock would need to triple to reach the fair value of its Rose project. And we see shares hitting at least $10 – a 10x return – over the next three to five years as the market catches on to this savvy operator in the race to secure lithium supplies.
It’s time to strike...
Action to Take: Buy Critical Elements (CRECF).
Buy-up-to price: $1.50
Stop Loss: None
Note: Critical Elements trades on the OTC market. For almost all major online brokerages, buying an OTC stock is just as easy as buying a stock that trades on a large exchange like the NYSE. Simply enter the ticker symbol into your broker’s online platform, and the stock will pop up. If you have any issues, reach out to your broker for further guidance.
Let the Game Come to You!