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The $20 Billion Lithium Story no one Knows About

VMC, GM

FN Media Group Presents OilPrice.com News Commentary

PR Newswire

LONDON, April 10, 2018 /PRNewswire/ --

There's a new Lithium Juggernaut. It's not Chile, Bolivia or Argentina. Nor is it China or Australia. Take a close look towards Canada.

With demand growing exponentially, and the industry facing a 100,000 ton annual shortfall by 2025 - "Northern Lithium" could be more lucrative than at any time in history. Mentioned in today's commentary: FMC Corp. (NYSE:FMC), Tesla Motors Inc. (NASDAQ:TSLA): Vulcan Materials Company (NYSE: VMC), Jacobs Engineering (NYSE: JEC), General Motors (NYSE:GM).

According to the U.S. Geological Survey (USGS), Canada is sitting on at least 1 million tons of lithium resource. That's worth $20 billion at current prices and, since most of the exploration was done in the 1950's - the true extent of this "Northern Lithium Reserve" is likely to be much, much larger.

That's why Power Metals Corp (PWM.V ) (PWRMF) - with several promising plays in the Ontario lithium belt - is now such a critical stock to follow.


They've recruited the world's top "Northern Lithium" expert and invested in next generation 3D modelling for what could be the largest drill campaign of its kind for lithium today. With results expected in a matter of months and a fully funded ongoing drill program - Power Metals could be the biggest, under the radar lithium story to watch for 2018 and beyond.

Here are 5 reasons why one should keep an eye on Power Metals :

1. Runaway Lithium Prices.
2. The "Northern Lithium" Revolution.
3. A Blue Sky Exploration Opportunity.
4. Their Secret Weapon: The Queen Of Lithium Pegmatite.
5. Incredible Ontario Tax Advantages.

A Major Crisis Point In Lithium is Nearing

Lithium is in the midst of an unprecedented boom. Since 2015, the price per ton has soared from $6,500 to over $20,000. It will likely go higher. In fact - with explosive demand growth for smartphones, EV's and home storage batteries - we might soon hit the physical limits of our lithium supply chain.

Analysts at UBS Securities expect us to hit a critical milestone in 2018 - as electric cars finally hit cost parity with the internal combustion engine. That event could trigger a wave of EV adoption across the globe.

Electric car batteries require a staggering amount of lithium to produce. The Tesla (NASDAQ:TSLA) 70kWh Model S battery pack contains 63Kg of lithium, equivalent to the amount of lithium in 10,000 cellphones.

The oil giant Total predicts we'll see 20 million electric vehicle sales by 2030. That's the lithium equivalent of building 200 billion iPhones. It would require 1-1,200,000 tons of lithium, or 6x current global production. Morningstar predicts a 100,000 ton annual shortfall in supply by 2025. By 2030, today's lithium prices might look incredibly cheap.

The " Northern Lithium " Revolution

Global lithium production is concentrated in relatively few locations. Just four countries - Australia, Chile, Argentina and China - deliver 93 percent of the world supply. According to most analysts, it won't be enough.

The industry can't afford to ignore Canadian "Northern Lithium" any more. And, with prices at $20,000 per ounce and likely climbing - they really don't have to. In the 1950's and early 1960's there was extensive lithium drilling in Canada. The USGS reports legacy "Northern Reserves" of more than 1 million tons.

Power Metals (PWM.V ) (PWRMF) is one of a handful of companies tackling the Ontario lithium belt - and the wider Canadian Lithium revolution. They're part of a wave of new lithium exploration across the country.

Recently, a single project in Quebec added over 16,953,000 tonnes of lithium reserves (NI 43-101) - potentially worth $339 billion at today's prices. Another project in North-Western Ontario could add 7.25 million tonnes. By comparison - Chile's official reserves are only 7.5 million tonnes.

That makes Canada a potential Lithium Super Power. Right now - it's still virtually unknown to most investors and Power Metals is at the very heart of the opportunity.

A " Blue Sky " Lithium Exploration Play

Today, Power Metals (PWM.V; PWRMF) is potentially sitting on one of the largest and most exciting high grade, "Northern Lithium" projects in the world. Currently, the company controls three properties in Ontario, each of which has vast exploration upside. The most important of the three is Case Lake.

Case Lake is located near established gold mining camps in the Abitibi Greenstone Belt. All season access roads surround it on all sides. It consists of a total of 38 mining claims with 7,136 hectares of land. Multiple pegmatite outcrops were historically identified on the property.

In 2017, Power Metals started with a drill program of 5,000 meters. On their 8th hole they hit both high grade lithium and tantalum. You can see PWM's November 2, 2017 news release for grade numbers.

To put that into context - a 1 percent grade is considered high for "Northern Lithium" deposits. Lithium grades on some cores in the Case Lake property run as high as 3 times that.

Beginning in January 2018, Power Metals drilled 3,000 meters on a dyke that had very high grade lithium at the surface. The Company is eagerly awaiting these lab results. See the company's news releases on January 22nd and 24th, 2018.

Over 15,000 meters of drilling is budgeted and funded for 2018. And, the team at Power Metals has a secret weapon for their upcoming drill campaign.

The Queen Of " Northern Lithium "

Power Metals (PWM.V ) (PWRMF) has retained Dr. Julie Selway, as Vice President of Exploration. She has co-authored twenty-two scientific journal articles on the specific kind of high grade lithium found in Ontario.Her expertise is so highly regarded, she's known as the Queen of "Northern Lithium."

She worked for the Ontario Geological Survey during the tantalum boom in the early 2000's. During this time, she visited about 90 percent of the projects in the province.

Dr. Selway has worked on properties including Case Lake, Georgia Lake, Seymour Lake, Crescent Lake and Separation Rapids pegmatite fields. She's the co-author of twenty-three NI 43-101 reports. Now she's leading Power Metals new exploration campaign.

There are several reasons to get excited about the upcoming program. First, PWM uses a 3D model to target every single drill hole they punch.

They set the coordinates of 2-3 proposed holes at a time, rather than blindly setting up locations for 30 holes at the beginning of the program. This means their geologists - led by Dr. Selway - can react intelligently and change the exploration plan based on the previous day's drill core.

Some believe Power Metals (PWM.V; PWRMF) is the smartest lithium pegmatite explorer, with the best technology and the right geologists.

Extraordinary Tax Benefits In The Ontario Jurisdiction

Sociedad Química y Minera de Chile - SQM and Albemarle were recently forced to sign new royalty agreements with the Chilean government. SQM was paying 6.667 percent and now must pay a base of 20 percent. The payments are on a sliding scale and top out at 40 percent if the price hits $25,000/tonne.

They're also required to sell a portion of their product at a below market price to local Chilean entities to promote value-added industries in Chile.

Albemarle signed a similar deal in 2017.This dramatically changes the economics of Chilean lithium brine production.

By contrast the Ontario mining royalty is a flat 10 percent - with no royalty on the first $10 million CDN of sales per year for the first three years of the life of a new mine.

Conclusion

The world is starving for lithium. Global consumption will nearly double by 2025, soaring to 422,000 metric tons - worth $8.4 billion at today's prices.

Power Metals (PWM.V ) (PWRMF) has 15,000 meters of drilling planned, budgeted and fully funded for 2018. This includes 6 separate targets at Case Lake.

Each of those drill programs represents a major potential catalyst for the stock.

Other companies to watch in the mining and auto sector :

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.

Tesla Motors Inc. (NASDAQ:TSLA): No large cap company has dazzled over the past couple of years like Tesla, which overtook giant GM this year in market cap-a major, unexpected feat. Tesla is the future, and its stock price agrees.

Vulcan Materials Company (NYSE: VMC) During a time of big infrastructure projects, with so much waiting to be re-built and re-furbished, you need a company that can build big things, fast. And that's what Vulcan Materials Company is all about.


Jacobs Engineering (NYSE: JEC) Amidst a national infrastructure re-construction campaign, there has to be companies prepared to do the actual constructing! Enter Jacobs Engineering, a major name in architecture, engineering and construction.

General Motors (NYSE:GM) is a household name. GM was born at the turn of the 20th century and has been a leading innovator in the automotive industry ever since. Even though it's been surpassed in market cap by Tesla (of all companies), it is still the furthest ahead of the Big 3 car makers from Detroit in terms of EVs and self-driving cars.

By. Charles Kennedy

**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 prices for lithium will retain value in future as currently expected; that PWM can fulfill all its obligations to maintain its properties; that PWM's property can achieve drilling and mining success for lithium; that high grades found in samples are indicative of a high grade deposit; that results of drilling are expected soon; that high-grade lithium is in sufficient quantities at surface to keep drilling costs down; that batteries and EVs will continue to use large amounts of lithium; that lithium prices will likely rise; and that PWM will be able to carry out its business plans. 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 may not be able to finance its intended drilling program, aspects or all of the property's results may not be successful, mining of the lithium may not be cost effective, PWM 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 assumptions based on limited test work with further test work may not be viable; competitors may offer cheaper lithium; more production of lithium could reduce its price; alternatives could be found for lithium in battery technology; the availability of labour, equipment and markets for the products produced; and despite the current expected viability of its projects, that the minerals cannot be economically mined on its properties, 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. Oilprice.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 PWM seventy five thousand 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. We have been compensated by PWM to conduct investor awareness advertising and marketing for PWM.V; PWRMF. 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. 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.

We do not guarantee the timeliness, accuracy, or completeness of the information on our site or in our newsletters. 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.


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SOURCE OilPrice.com



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