Epstein-Research Blog | Lithium Project Generator Nevada Energy Metals Inc. Has What It Takes To Thrive In Nevada | Talkmarkets
Founder, Chairman, CEO, President, Treasurer, Analyst at Mockingjay, Inc.
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In 2011 Peter Epstein, CFA, left a $3 billion hedge fund where he was a senior natural resources analyst to help increase awareness of a number of natural resource companies in which he's invested in. 


Lithium Project Generator Nevada Energy Metals Inc. Has What It Takes To Thrive In Nevada

Date: Wednesday, April 13, 2016 3:49 PM EDT

A rising tide is lifting many boats, still plenty of tide to ride 

Are the stars and planets aligned in the global emerging lithium sector? One would certainly think so, when looking at the performance of Australian-listed companies. Seven non-producers, have one-year stock returns ranging from 257% to 1,369%, averaging 810%! However, most, but not all, are relatively advanced, as far as juniors go. 

A few are slated to reach initial production this year or next. On the TSX Venture Exchange (TSX-V), things have been heating up as well. In the past 3 months, a group of 4 have soared between 106% to 266%, averaging about 180%. [Source: Google Finance]. How crazy are these astonishing moves? Crazy for sure, but how crazy is it really? I mean, could the electric transportation market be any stronger? Did anyone expect that lithium prices would triple from just 6 months ago?

In budding bull markets, things move fast…. Are we in a lithium bull market? 

Spot prices in excess of 130,000 Yuan

Screen Shot 2016-04-13 at 8.04.34 AM

 (US$20,000/Mt) [Source: 4/12/16 article on ChinaDaily.com.cn] proves  the existence of a pronounced undersupply in the market, if not a longer-lasting paradigm shift in Li-ion battery demand. In an interview I conducted a few weeks ago of Malcolm Bell, one of the Company’s Technical Advisors, he described how Nevada Energy Metals TSX-V:BFF (OTC:SSMLF) (Frankfurt: A2AFBV) team sees remarkable opportunities to stake and acquire prospective properties. A key takeaway shared by Mr. Bell and management is that other “Clayton Valley-like” closed basins containing enriched brines could still be found. It’s not the zip code that matters most, but the geological setting and history of volcanic activity. 

Staking ground is highly cost-effective, it conserves cash liquidity. Staking also sidesteps onerous third-party directed exploration and work requirements. The Company’s growing portfolio of lithium assets diversifies exploration risk. Low cash burn and business plan flexibility are hallmarks of a successful prospect generator model. Make no mistake, this Company is highly speculative, but it’s unassuming market cap and tremendous exposure to lithium prices, makes it a compelling risk-adjusted vehicle for those bullish on the industry.

The prospect generator model works in both bull & bear markets 

These days, many companies are masquerading as lithium plays, but really they’re just squatting on land, hoping to sell or joint venture it ASAP. Perhaps not a bad idea, but the clock is ticking, there are holding costs involved. Many do not have the financial means, managerial experience or a competent business strategy to create shareholder value. That’s clearly not the case here. Look no further than yesterday’s announced acquisition of 60 claims (approximately 1,200 acres/484 hectares) in Clayton Valley, Esmeralda County, Nevada. The Clayton Valley BFF-1 Lithium Project’s (“BFF-1”) southern boarder is 250 meters from Albemarle Corporation’s Silver Peak lithium brine operations.

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