this is potentially huge. LITM already has economic studies with...

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Jopie

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08/01/24

01:44

Post #: 71766942
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Originally posted by mickzed: ↑

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Japanese company considering Manitoba for $1.6B lithium ion battery facility
ByMarney BluntGlobal News
Posted January 3, 2024 7:01 pm

A Japan-based company is eyeing Manitoba as a potential spot to build a major lithium-ion manufacturing facility - on city-owned land near the West End Water Treatment Plant. Marney Blunt reports.
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A Japan-based company is eyeing Manitoba as a potential spot to build a $1.6-billionlithium ionbattery separator manufacturing facility, sources have told 680 CJOB.
The company is considering a parcel of city-owned land near the West End Water Pollution Control Centre close to Wilkes Avenue and the Perimeter Highway.
A document obtained by 680 CJOB shows that the manufacturing facility would create lithium ion battery separators to supportelectric vehiclemanufacturing in North America.
“Really simplistically, it just prevents electrons from going in the wrong place. You want them to go out in the circuit,” Robert Parsons, an EV expert and a supply chain instructor at the University of Manitoba’s Asper School of Business, said while describing how a lithium ion battery separating facility would work.
“So that’s basically what the purpose of (a lithium ion battery separator) is, it’s a specialized component that is critical in any kind of a lithium ion battery.”
The document also shows expansion of the project will be rolled out in four phases, with a goal of being complete by 2030. The facility is set to have a 1,200 square metre manufacturing capability and would employ more than 700 people, the document shows.
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Parsons says having a critical component facility like this would be a good fit for the province, but due diligence is still needed.
“There’s a lot of due diligence still to be done. We still have to do that; there’s environmental approvals, there’s due diligence in terms of contract arrangements and any incentives. We still have to to that, that’s never obviated,” Parsons said.
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“But in general terms, I think the facility that we’re talking about here is a pretty good idea and it fits well with what we’re already doing here and we’re in a good location to do it.
The plot thickens!

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this is potentially huge. LITM already has economic studies with a post tax NPV (7%) of USD 1.1 bln. But this is without several thousand meters of drilling not yet included and also not winter drilling program results (although I haven’t seen any news of commencement).

PFS this year hopefully in line with above studies or better. At 30% - 50% of NPV we are talking 330 - 550 mln.

Current market cap 21 mln. Target SP 15-30 USD. NVA has 6.7mln shares i believe.

I have been DCAing on recent weakness and may add more if it dips again.
Last edited by Jopie: 08/01/24

NVA Price at posting: 36.0¢ Sentiment: Hold Disclosure: Held
5 Upvote

0 Great analysis

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