Probably the BEST lithium share to buy now

I hold many lithium counters and in my opinion at this point GLN has got to be the most undervalued lithium counter based on the resource size/grade vs market cap alone. At less than $100m market cap, this is a very compelling buy. It is way under the radar for what could possibly be one of the world's highest grade lithium brine resource with very low impurities. Things could change rapidly though when the institutions get to know about GLN.

Grade is king
A company can speed up the pre-development process if need be, but they can't change the resource size and grade that they hold. Galan Lithium owns a tier 1 lithium resource with its HMW lithium project in Argentina. The HMW project currently contains 2.3MT LCE at exceptional grade of 946mg/l li. Those who are vested in the resource sector know that grade is king and is a major determinant on the viability and profitability of a resource project. This grade is unparalleled for a pre-production resource and will comfortably put GLN in the lowest quartile on the cost curve spectrum.



Over US$1b in project NPV
How many lithium explorer can boast project NPV of more than US$1b? Those who can, are at least in the hundreds of million in terms of market cap. GLN is still less than $100m MC. US$1.011b NPV according to PEA and excluding potential potash credits. Given the uptrend in LCE prices and further optimization, I believe could likely see NPV improve to US$1.2b-1.5b by the time it reaches the DFS stage.




Operating Cost of US$3348/t LCE
According to the PEA, opex for resource near the ponds is estimated to be around US$3348/t LCE. Not many projects can have opex below US$4500/t LCE. At US$3348/t LCE opex, that's going to be one of the lowest in the industry and very profitable.


Ganfeng as substantial shareholder
Ganfeng bought into GLN when the share price was struggling and way before anyone even knew much about the company. They hold around 10.64% stake. They most likely do this as they see compelling resource the GLN holds and also to facilitate offtake discussion in the future. A buyout might even be on the cards if GLN remains severely undervalued relative to peers.

With the EV revolution in place, GLN is well placed to take advantage of this boom being in the lowest quartile on the industry cost curve. Its not difficult to see GLN going towards at least $500m-$1b market cap in the next 2-3 years.