@Kotaredrew
Yeah, been here for a while. Just before the last major spike in price to about 12-13c. SYA is interesting for several reasons:
1/ The Authier project in Canada is a near production asset. Nice lithium reserves at just over 20mt and very low capex to get to production (approx $65m). They have a non-binding MOU with a major Chinese lithium carbonate producer for 100kta and the economics of that potential off take look good. NPV of this project is around $220m. Authier will be a simple shovel and truck operation, open pit. Very low risk.
2/ SYA has a demo plant to prove out their process flow. Had good results from that recently so is mostly derisked from that point of view. Plus they are now investigating a downstream hydroxide production with very substantial upside (c 4-5 times that of just producing lithium concentrate). They have a renowned professor working on that.
3/ SYA also recently acquired the Tansim tenement which is about 80km from Authier where initial sampling showed very good Li grades and talk was that they are within driving distance to Authier so any ore from Tansim could be processed at Authier. Slightly higher cost of trucking etc, but on the flip side, no need to build another plant.
4/ SYA also have extremely prospective tenaments in WA for both Lithium and gold. No exploration there at present other than some sampling which showed good signs.
5/ SYA and AJM share the same board of directors and AJM has just gone into Lithium production. Talk is that SYA is a little brother to AJM and approx 18 months behind in maturity. If anything, the AJM management and board is excellent and have a track record of delivery and dealing with the Chinese.
6/ There is currently some talk about a potential M/A event with either Nemaska Lithium or Altura. The Quebec mining jurisdiction is well know for M/A and the recent $850m cap raise by Nemaska shows Canada is a serious player in the Lithium industry. A takeover by Nemaska would consolidate their Canadian projects (which are basically next door) so the synergy is definitely there. I think SYA Citibank advising the, on various options so watch this space. If AJM where to make a play, then that puts the AJM resulting group just over the magic $1B market cap which could then be attractive to some of the Chinese that have been courting them for a while.
7/ SYA is currently in the process of completing their Definitive Feasibility Study for Authier. Due about nowish but not likely to move the SP substantially. I think it will basically confirm that we are either going mining or selling to someone. This is currently struck in some local environmental consultations, but like all local government interactions it will raise a bit of hot air and then be allowed to proceed. I dont consider this a great risk.
I’m heavily invested here for earthier the production or takeover eventuality. At current prices SYA is primed for a major move IMO. I don’t see much of a downside at the moment. Still you should do your own research. Plenty of good info in these threads and online. There was a great write up on seekingalpha not long ago. Encourage you to have a read there. Good luck with your decision and sing out if you need anything else.
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