Upcoming electric vehicle mass adoption will require multiples of current lithium supply.
Many lithium stocks have been up massively, led by VUL (up 9,300%), CXO (up 3,100%).
GLN mainly has a brine deposit in Argentina, HMW (2.27Mt LCE @946mg/l Li, low impurities), next to existing lithium producer, Livent (market cap A$3.5B), has recently completed PEA/scoping study (pre-tax NPV US$1B).
GLN is raising $10m at 50c/share, existing shareholder, Luxembourg green energy fund, Thematica (holding ~5.6m) will inject $4m for 8m shares @50c, becomes a substantial holder.
China's largest lithium compound producer, Ganfeng is also a substantial shareholder (7.2% post CR) with 17m GLN shares.
Based on ASX announcements, I have compiled the following tables, please read the announcements for more detailed info,
GLN, post CR, will have $15m cash ($14.6m plus 0.45m from yesterday option conversions), its enterprise value is $110m, substantially lower than peers.
Enterprise value over NPV: Most lithium stocks are valued at
20% - 70%
GLN:
8%
AGY:
32%
LKE:
20%
GLN, capex will be reduced due to additional acquisition completed, and high percentage of contingent portion (30%); contingent portion is usually 10-15%.
Grade is the king, and low impurities are very important for electric vehicles as it requires high quality materials.
GLN also has another project, Greenbushes South Project (396 km2), located 3 kms south of the world-class Greenbushes Lithium Mine which is owned and managed by Talison Lithium Pty Ltd.
Recently IGO acquires 24.99% Greenbushes mine & 49% of Kwinana plant for $1.9B, that values Greenbushes mine at over $6B.
However, Greebushes South Project, is under exploration, still needs a lot of work to fine out.
The project area is deemed to have had a low level of exploration maturity, with no available drilling results for lithium or lithium pathfinders.
Numerous MINDEX occurrences of lithium, beryl, tin feldspar tourmaline and mica are found in the project area, potentially indicating lithium-Caesium-Tantalum mineralisation associated with pegmatites. Critically, the project area due south of the Greenbushes mine is highly prospective due to potential for along strike extensions south into the project area. This project area is host to a large strike length of the Donnybrook - Bridgetown Shear Zone hosting the Greenbushes mine deposit.
To sum up, GLN, is now cash up, with $15m cash, plus upcoming $6m from option conversions, is well funded for feasibility studies of HMW and exploration activities on Greenbushes South Project.
Got back up by two substantial holders: Ganfeng and Thematica.
Electric car mass adoptions are led by China, Europe, (annual car sales around 50m units), now US is joining the party, Biden just announced to replace all federal fleet to electric cars (that's around 645k cars).
Lithium carbonate price dropped from the high of around 180k CNY to 38.5k CNY, bottomed out and started to recover, currently standing at 71k CNY (equivalent US$11k/t LCE). It's predicted to steadily recover over coming months.
This is just my personal research and option, NOT considered advice.
Please always do your own research.
All the best!
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