LONDON, October 6, 2017 /PRNewswire/ --
If the twentieth century was the age of oil, will the twenty-first prove to be the era of lithium? It is certainly shaping up
to be. The lithium market is one of the fastest-growing commodity markets in the world. Battery markets are set to become a $120
billion over the next two years, fueled by the immense new demand for electric vehicles (EV) and battery-powered
technology.
Industry leader, Tesla, needs thousands of tons of lithium to feed its Gigafactory, which opened in January. But that's only
30 percent of the U.S. EV market, and with demand for EVs likely to increase immensely in Europe
and Asia, two regions that are hoping to end the
sales of gasoline-powered cars in the next few decades, demand for lithium will rise right along with it. In focus
today includes: Alphabet Inc. (NASDAQ:GOOG), Raytheon Company (NYSE:RTN), FMC Corporation (NYSE:FMC), Advanced Micro
Devices, Inc. (NASDAQ:AMD), Arotech Corporation (NASDAQ: ARTX)
The boom in renewable energy sources, which need lithium-batteries to compete at cost with fossil-fuels, is adding further
fuel to the fire, so to speak.
Lithium is being sought after in larger and larger quantities, putting
pressure on lithium miners to increase output and opening up the field to a new breed of hungry companies ready to get in on
the action.
And the chances for securing fast growth are good, given the radical increase in lithium prices. Since 2002, the price per ton
has skyrocketed, from $2000 to
more than $9000. In the same period, costs have fallen for the major miners, as economies-of-scale
have reduced per-ton production costs.
But while the big lithium players have some of the market cornered, the prospects for growth are bringing in a fresh crop of
companies. Here are a few choice stocks to consider for investors hoping to take advantage of the lithium boom.
Lithium X
Lithium X is a well-positioned miner in Argentina, with two brine assets at Sal de Los Angeles (SDLA) and Arizaro, both entirely owned by Lithium X. While both operations are still coming
on-line, the company has been moving fast to get them into production, with SDLA estimated to produce 15,000 tons per year by Q2
of 2019.
SDLA has 2 million tons of lithium carbonate equivalent (LCE) ready for the taking, though the company has stressed that this
is a historic estimate, rather than a
current estimate. Should the figure prove accurate, however, it should translate into considerable revenues.
Based on low lithium carbonate prices ($5000/ton), the pre-tax net-present value (NPV) of the SDLA
mine is set at $964 million, but if prices increased the NPV could be anywhere between $1.45 and $1.85 billion.
Once the potential of
SDLA and Lithium X's operation at Arizaro is realized, the company could rapidly increase in value.
The company benefits from a strong management team, including a number of renowned lithium miners with a strong track record in
South American lithium mining,
Should its assets in Argentina prove their worth and production begins on schedule in 2018,
Lithium X should see its price increase tremendously.
International Battery Metals (IBAT; RHHNF)
While most lithium stocks are in production/upstream activities, International Battery Metals (IBAT) is a tech stock with a bold
new approach to lithium output, one that could potentially change how this mineral is produced and marketed.
Lithium carbonate equivalent is most often extracted from brine sources and spodumene mines. Once potent sources are found,
solar evaporation is used to extract lithium from the brine and spodumene. That's how it's done in Chile and Argentina, two of the biggest lithium suppliers. Normally, solar
evaporation takes months to extract lithium
from salt brine, but IBAT has signed an LOI to acquire technology from North American Lithium (NAL) which has developed improved
technology that can do process the brine in a matter of hours.
The proprietary method isolates lithium ions in the brine salt solution, removing lithium chloride while leaving the remaining
salts behind. It's a process that's faster and much more environmentally friendly: no salt piles are left for farming, and no
toxic ponds of brine are left to pool after extraction.
If proven on a commercial scale, it's the equivalent of fracking for lithium: an improved method that could radically speed-up
production times. Right now, it can take 4 years for a lithium brine mine to come on-line, and other 3-4 years before the full capacity is reached. IBAT's technology could turn
a mine productive and fully profitable in a fraction of the time.
Along with a quickened schedule, IBAT's to-be-acquired technology should cut down on production costs. The company plans on using
a highly-mobile extraction unit that can operate fully remotely; it doesn't need teams of technicians and miners to monitor it,
and the quick extraction times means no more 18-24 month-long tours.
Even without the massive capex of the big three lithium miners (Albermarle, Sociedad Quimica y Miner de Chile, and FMC), if everything works according to plan, IBAT could operate on a cost-per-ton
equivalent. Once commercial production is proven using the improved technology and operations begin, the company could become
profitable almost immediately.
Led by lithium pioneer John Burba, considered a genius in inventive lithium-extraction technology,
IBAT entered the lithium field only this year. Already, it has evaluated three North American brine areas and secured one for
potential lithium extraction. Plans for a pilot extraction facility for early 2018 are in motion, with possible new licenses on
the table for March 2018.
IBAT has already signed an option agreement for a 37,500 acre play in the Woodbury Carper Lithium Resource Project in
Illinois. If the soon to be acquired technology proves successful, it could auger a new North
American lithium rush, as other miners try to get in on the action.
Suffice it to say, IBAT is an exciting company with some big, bold plans for the future. Its technology, if proved successful on
a commercial scale could change lithium operations worldwide, paying off for any investor who believes that IBAT's technology
will win out.
Arotech Corp. (NASDAQ: ARTX)
Arotech has had a strange journey to becoming a lithium stock. Going public in 2001 under the name Electric Fuel Corp., the
company couldn't hack it as a battery manufacturer and tried instead to rebrand as a defense contractor. It acquired a training
and simulation company as well as a military battery supplier and changed its name to Arotech.
Now, the company has two divisions, Training/Simulation and Power Systems. The latter division specializes in low-cost batteries
used in military vehicles and weapon systems, utilizing lithium and zinc-air technologies.
While both divisions attract contracts and a proven record of profitability, T&S can't match P&S for growth potential. In 2016, the company attracted some activist capital and underwent
significant re-tooling.
Arotech now has a strong profile and some healthy prospects for growth, having seen its share price grow from $2.95 in March to the current price of $4.30. The company expects year-over-year
earnings to exceed 200 percent for the current quarter and 28 percent for the year, according to Nasdaq.com.
Orocobre Limited
An Australian miner with a major operation underway in Argentina, Orocobre experienced some
serious set-backs in the first half of 2017. Last fiscal year the company missed its projections and posted a $22 million loss, chiefly due to cost overruns.
But now it's turned
its game around. In August the company posted a profit for the year of $19.4 million. While the
figure was boosted by a $14.8 million asset sale, stocks responded favorably and Orocobre is now
back on its feet. In FY 2017 the company sold more than 12 thousand tons of LCE for sales equaling $120
million.
After its struggles in 2016, the company is now one of the lowest-cost
producers around, with gross operating margins of 62 percent and lithium production costs of just $3,700 per ton.
Shares in Orocobre in September gained momentum, rising from $3 to $4.30 and catching investors off-guard. The
rise came as most lithium producers saw their shares boost off the news that China was hoping to
increase the number of EVs in circulation, but Orocobre's price rose faster and higher than its contemporaries thanks to its
recovered profitability.
With current production at 11,000 tons LCE and a nameplate capacity of 17,000 tons LCE, the company has strong prospects for
growth, and if its August earnings report is anything to go by, has escaped the doldrums of last year.
Galaxy Resources
With three separate lithium projects in three different countries and a steadily rising production profile, Galaxy Resources is
certainly a lithium stock to
watch.
At Mt. Cattlin in Australia, Galaxy's mine is set to produce 160kt in 2017 of spodumene. With
costs factored in the off-take for Mt. Cattlin is $905/t for 6 percent spodumene, making the mine a
considerable source of funds for Galaxy's operations elsewhere.
The company's flagship project, Sal de Vida in Argentina, is one
of the largest concentrations of lithium carbonate equivalent (LCE) yet discovered. Low concentrations of magnesium and sulphate
means the cost of production should be low, making SDV another gold-mine (so to speak) for Galaxy and its investors.
Sales took off in the second half of 2017 and should increase in 2018, according to company projections. Right now Galaxy is
trading at just above $2.60 on the ASX, up from $1.75 in early September.
If the company's three mines meet
expectations, high-level production at low costs should turn Galaxy into a significant player in upstream lithium.
Other companies to watch in the lithium and tech space:
Alphabet (NASDAQ:GOOG): With a market cap of over $657 billion, this is the
second-largest by market capitalization in the S&P 500. We love Alphabet because its foundation is intellectual property-not
tangible assets.
Oh, and self-driving cars … definitely a huge part of the innovation in energy and artificial intelligence. As an early entry
into the self-driving car world, Alphabet's innovations have paved the way for a transportation revolution
Alphabet is set to continue to bring value to its investors and even as one of the largest companies in the S&P 500,
Google's parent company continues to reach new heights.
Raytheon Company (NYSE:RTN) is an emerging tech company specializing in defense and other government markets. Raytheon's
major selling point is its strong command of cybersecurity. While its specialty is in government-centric markets, Raytheon also
develops products, services, and solutions in various other markets.
Raytheon reach is far reaching and its potential market share is huge. Smart investors are looking toward cybersecurity firms
early. With the recent high-profile attacks, and likely more to come, cybersecurity companies will be the saving grace of the
tech boom.
FMC Corp. (NYSE:FMC) founded in 1883, FMC has been around the block and back. FMC has a long history stretching
between many different industries, but within all of them, FMC has remained a leader in innovation.
FMC's involvement in the lithium industry is particularly notable. The company is one of the top three in lithium and
associated technologies. It is one of the largest suppliers into electric vehicle applications using lithium hydroxide.
Strong growth in lithium is expected to drive margins for FMC and major expansion, leading analysts to give it an outperform
rating. The company's full year 2016 results were impressive, with lithium segment earnings of $21
million-up an amazing 90 percent from Q4 2015.
Advanced Micro Devices Inc (NASDAQ:AMD) is Nvidia's biggest competitor. The company has developed a cult following
among gamers, leading to many a Reddit debate. AMD's groundbreaking technology not only rivals that of Nvidia, some even argue
that it outperforms it. As the two square off, one of the key areas to keep an eye on is in the GPU race. Widely purchased across
the world as Bitcoin frenzy heats up, AMD is making a particularly hard push toward conquering that emerging demand.
While Nvidia has a significantly higher market cap (and stock price), AMD provides investors a much cheaper entrance into the
gaming market. Those looking to get into tech industry stocks, mine Bitcoin, or play their favorite game on the highest quality
are definitely not ignoring AMD.
By. Joao Piexe
**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**
Forward-Looking Statements
This news release contains forward-looking information which is subject to a variety of risks and uncertainties and other
factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward
looking statements in this release include that IBAT will complete its announced transaction with North American Lithium and
acquire NAL's technology and IP; the Lithium extraction process will be cost effective and can work much more quickly that other
extraction technologies; that the process can be commercialized for large scale production; that the NAL team which knows the NAL
technology will join IBAT; that IBAT will use a mobile unit that needs little labor; that the NAL technology can be licensed
worldwide; that IBAT plans to set up a pilot extraction facility in early 2018, and then secure additional licenses for other
high-grade lithium brines by March; that by 2020, IBAT anticipates becoming a supplier of various battery metals; that IBAT plans
to secure 3 tin properties in 2018; and that it plans to acquire high value tantilum properties. These forward-looking statements
are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ
materially from those projected in the forward-looking information. Risks that could change or prevent these
statements from coming to fruition include that the Company and NAL may not agree on the final agreement terms, aspects or all of
the process development may not be successful, the process may not be cost effective, the Company may not raise sufficient funds
to carry out its plans, changing costs for mining and processing; increased capital costs; the timing and content of upcoming
work programs; geological interpretations and technological results based on current data that may change with more detailed
information or testing; potential process methods and mineral recoveries assumption based on limited test work and by comparison
to what are considered analogous deposits that with further test work may not be comparable; high value mineral properties may
not be available for IBAT to acquire, or IBAT may not be able to afford them; competitors may offer better technology than NAL's
lithium extraction technology; the availability of labour, equipment and markets for the products produced; and despite the
current expected viability of the project, that the minerals cannot be economically mined with the NAL technology, or that the
required permits to build and operate the envisaged mines cannot be obtained. The forward-looking information contained herein is
given as of the date hereof and the Company assumes no responsibility to update or revise such information to reflect new events
or circumstances, except as required by law.
DISCLAIMERS
PAID ADVERTISEMENT. This communication is a paid advertisement and is not a recommendation to buy or sell securities.
Safehaven.com, Advanced Media Solutions Ltd, and their owners, managers, employees, and assigns (collectively "the Company") has
been paid by the profiled company or a third party to disseminate this communication. In this case the Company has been paid by
International Battery Metals. In this case the Company has been paid by International Battery Metals one hundred and twelve
thousand five hundred US dollars for this article and certain banner ads. This compensation is a
major conflict with our ability to be unbiased, more specifically:
This communication is for entertainment purposes only. Never invest purely based on our communication. Gains mentioned in our
newsletter and on our website may be based on end-of- day or intraday data. If we own any shares we will list the information
relevant to the stock and number of shares here. We have been compensated by International Battery Metals to conduct investor
awareness advertising and marketing for [CSE:IBAT and OTC:RHHNF]. Safehaven.com receives financial compensation to promote public
companies. This compensation is a major conflict of interest in our ability to be unbiased. Therefore, this communication should
be viewed as a commercial advertisement only. We have not investigated the background of the company. The third party, profiled
company, or their affiliates may liquidate shares of the profiled company at or near the time you receive this communication,
which has the potential to hurt share prices. Any non- compensated alerts are purely for the purpose of expanding our database
for the benefit of our future financially compensated investor awareness efforts. Frequently companies profiled in our alerts
experience a large increase in volume and share price during the course of investor awareness marketing, which often end as soon
as the investor awareness marketing ceases. The investor awareness marketing may be as brief as one day, after which a large
decrease in volume and share price is likely to occur. Our emails may contain forward looking statements, which are not
guaranteed to materialize due to a variety of factors.
We do not guarantee the timeliness, accuracy, or completeness of the information on our site or in our newsletters. The
information in our communications and on our website is believed to be accurate and correct, but has not been independently
verified and is not guaranteed to be correct. The information is collected from public sources, such as the profiled company's
website and press releases, but is not researched or verified in any way whatsoever to ensure the publicly available information
is correct. Furthermore, The Company often employs independent contractor writers who may make errors when researching
information and preparing these communications regarding profiled companies. Independent writers' works are double-checked and
verified before publication, but it is certainly possible for errors or omissions to take place during editing of independent
contractor writer's communications regarding the profiled company(s). You should assume all information in all of our
communications is incorrect until you personally verify the information, and again are encouraged to never invest based on the
information contained in our written communications.
DISCLOSURE. The Company does not make any guarantee or warranty about what is advertised above. The Company is not
affiliated with, any specific security. While the Company will not engage in front-running or trading against its own
recommendations, The Company and its managers and employees reserve the right to hold possession in certain securities featured
in its communications. Such positions will be disclosed AND we will not purchase or sell the security for at least two (2) market
days after publication.
NOT AN INVESTMENT ADVISOR. The Company is not registered or licensed by any governing body in any jurisdiction to
give investing advice or provide investment recommendation. ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment
professional before making an investment. This communication should not be used as a basis for making any investment.
INDEMNIFICATION/RELEASE OF LIABILITY. By reading this communication, you agree to the terms of this disclaimer,
including, but not limited to: releasing The Company, its affiliates, assigns and successors from any and all liability, damages,
and injury from the information contained in this communication. You further warrant that you are solely responsible for any
financial outcome that may come from your investment decisions.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Investing is inherently risky. While a potential for rewards
exists, by investing, you are putting yourself at risk. You must be aware of the risks and be willing to accept them in order to
invest in any type of security. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to
Buy/Sell securities. No representation is being made that any account will or is likely to achieve profits or losses similar to
those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of
future results
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD,
SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-
OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN
GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT
ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
All trades, patterns, charts, systems, etc., discussed in this message and the product materials are for illustrative purposes
only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the
author and do not necessarily reflect those of the publisher. No system or methodology has ever been developed that can guarantee
profits or ensure freedom from losses. No representation or implication is being made that using the methodology or system will
generate profits or ensure freedom from losses. The testimonials and examples used herein are exceptional results, which do not
apply to the average member, and are not intended to represent or guarantee that anyone will achieve the same or similar results.
AFFILIATES. Some or all of the content provided in this communication may be provided by an affiliate of The Company. Content
provided by an affiliate may not be reviewed by the editorial staff member. Our affiliates may have their own disclosure policies
that may differ from The Company's policy.
The information contained herein may change without notice.
DISCLAIMER: Safehaven.com is Source of all content listed above. FN Media Group, LLC (FNM), is a
third party publisher and news dissemination service provider, which disseminates electronic information through multiple online
media channels. FNM is NOT affiliated in any manner with Safehaven.com or any company mentioned herein. The commentary,
views and opinions expressed in this release by Safehaven.com are solely those of Safehaven.com and are not shared by and do not
reflect in any manner the views or opinions of FNM. FNM is not liable for any investment decisions by its readers or
subscribers. FNM and its affiliated companies are a news dissemination and financial marketing solutions provider and are
NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any
security. FNM was not compensated by any public company mentioned herein to disseminate this press release.
FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future
expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned",
"will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are
subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially
from those projected in the forward-looking statements, including the risks that actual results may differ materially from those
projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual
report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should
consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such
statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to
update such statements.
Contact Information: e-mail: editor@financialnewsmedia.com
, U.S. Phone: +1(954)345-0611
SOURCE Safehaven.com