As One of the Fastest Growing Lithium Miners Worldwide(6), Neo Lithium, Could Power the Whole Thing
Miners like Neo Lithium Canada TSX.V: (NLC) United States OTCQX: (NTTHF) are absolutely essential nowadays. Without sufficient lithium supply, it will be a heck of a lot harder to power a burgeoning EV industry and help us get to net-zero emissions.
With climate change now officially being labeled a climate emergency, we’ve seen governments take unprecedented steps to address it:
- According to the UK government, it will adopt radical new climate change commitments such as more electric cars, low-carbon heating, renewable electricity, and cutting down on meat and dairy for the sake of cutting carbon emissions by roughly 78% by 2035.(3)
- At a recent virtual climate summit, the US announced plans to reduce its greenhouse gas emissions by 50%-52% below its 2005 emissions levels by 2030.(4)
- US Treasury Secretary Janet Yellen called for an ambitious effort across the entire US economy to bring the US to net-zero emissions by 2035.(5)
One of the byproducts of this climate emergency, and drastic steps governments are taking to address it is the rise of the electric vehicle market.
According to a report released just last month from Facts and Factors, global sales of EVs could grow at an estimated 22% CAGR to reach about $700 Billion by 2026.(2) Deloitte also projects total sales of electric vehicles to grow from about 2.5 million in 2020 to around 11.2 million in 2025 and then reach approximately 31.1 million by 2030.(7) According to Forbes, BNEF forecasts passenger EV sales to increase to about 56 million vehicles by 2040.(8)
It’s simple. Without enough lithium to power the batteries of EVs, supply cannot meet the demand.
That’s why the demand for lithium seems to be growing by biblical proportions.
According to the Financial Times, for instance, the EU may need up to around 18x more lithium than it currently has, and 60x more by 2050, just to meet its climate neutrality by 2050 goal.(9)
It’s not shocking then to see that Bloomberg forecasts the value of lithium to increase by around 9x by 2030.(10)
As a result of the push for EVs and skyrocketing lithium demand, the EV battery market alone could also be worth about $133.46 billion by 2027.(11)
Many miners out there will claim that they are the best pure-play on battery metals. But what sets Neo Lithium Canada TSX.V: (NLC) United States OTCQX: (NTTHF) apart is how fast the company’s grown, coupled with one of the highest-grade lithium deposits on the entire planet.
With Bullish Technicals and Fundamentals, Neo Lithium’s Growth is Eye-Popping Canada TSX.V: (NLC) United States OTCQX: (NTTHF)
Neo Lithium’s growth has been astronomical, especially compared to other lithium miners.
Consider this. The company went from project discovery to listing on the TSXV in only 7 months.(6)
Furthermore, the company raised over approximately C$130M gross in private and public markets since discovery (including the landmark investment from CATL), is one of few lithium developers investing the money raised back into the project while executing its plan on time and budget, coupled with about $60M invested in the development of its 3Q project.(6)
With all of the tailwinds indicating robust demand for lithium and potential growth for the EV market, NTTHF’s outstanding chart reflects company-specific success and advantageous positioning with macro-level tailwinds.
Over the last 12-months, the NTTHF stock ran from a low of roughly $0.30 in late May 2020 to a peak of about $3.07 in early-2021. This was good for an eye-popping potential move of 923.33%. While the stock did pull back, along with the broader market, it’s recently seen an uptrend in momentum of about 19.65% since hitting a 2-month low in mid-March.
What also looks potentially attractive on this chart is the company’s 14-day RSI of about 41.23. Despite the recent 1+ month uptrend, this indicates that the stock may be potentially closer to oversold than overbought, as an RSI of 30 usually means oversold. In contrast, an RSI of 70 typically means overbought.
The company also has many short-, medium, and long-term bullish technical indicators, such as its 20 – 100 Day MACD Oscillator, 20 – 200 Day MACD Oscillator, 50 – 100 Day MACD Oscillator, 50 – 150 Day MACD Oscillator, 50 – 200 Day MACD Oscillator, 100 Day Moving Average, 150 Day Moving Average, 200 Day Moving Average, and 100 – 200 Day MACD Oscillator.(12)
Additionally, the company has a lot of things to love about its fundamentals.
First and foremost, it holds more cash than debt on its balance sheet.(13) Its current ratio of approximately 20.8x(14) and quick ratio of roughly 20.6x(15) reflects this. It indicates that the company may have 20x+ more short-term assets than short-term liabilities.
The company also has a float-to-shares outstanding ratio of around 91.2%(16), which means that most of its approximately 139.1 million outstanding shares are publicly traded.(17) With a minuscule market cap of about $287.2 million(18), any semblance of good news could potentially spark an earth-shaking rally.
Not to mention, based on project merits and its strategic partnership with CATL (which we will dive into), the company believes that they could be more than 2x undervalued against lithium peers.(6)
With solid capital structure, many analysts believe in this company’s upside potential as well, giving the company bullish price targets from its current $2.07 position, such as(6)
- Stifel at roughly $3.70
- Cormark at approximately $5.00
- Canaccord at about $4.20
- Paradigm at around $4.00
What Sets Neo Lithium Apart From Other Battery Metal Plays? Canada TSX.V: (NLC) United States OTCQX: (NTTHF)
Neo Lithium Corp., a lithium brine exploration company, engages in exploring and developing resource properties. It owns a 100% interest in the Tres Quebradas (3Q) project covering approximately 35,000 hectares, including a salar complex of about 16,000 hectares located in Catamarca Province, Argentina.
With the EV market, and especially the EV battery market, expected to see unprecedented demand and growth, Neo Lithium’s (Canada TSX.V: (NLC) United States OTCQX: (NTTHF)) competitive edge appears to be striking.
More on the 3Q Project
The 3Q Project is Neo Lithium’s 100% owned lithium mining project located at the southern end of South America’s lithium triangle. The Lithium Triangle concentrates >40% of global production and >90% of Brine Resources.(6)
3Q has been a mining property for 99 years, granted over a total of 350km2. The best part? Neo Lithium seems to be getting significant tax stability in Argentina, surface and access easement granted by mining authorities, and an environmental permit for Exploration, Mining, and Development.(6) Not to mention, all necessary permits have been given for the chemical plant.(6)
The Final Environmental permit for construction presented to the government is in the process of approval, and there is an agreement in place with the local municipality to build a plant in Fiambala on government land.(6)
In 2020, the company already completed exciting exploration work here.(6)
What truly sets the 3Q project apart from everyone else?
The high-grade of its lithium.
The high-grade core of the 3Q Project is the 3rd highest grade project worldwide and the 4th based on the average grade of the deposit. Because it’s so high-grade, and because demand for lithium of this caliber is through the roof, the potential could be once-in-a-generation.(6)
What does “high-grade” regarding lithium actually mean?
In your average lithium mine, Mg and Sulfate sequesters lithium from the brine and makes operation costs very high. 3Q, on the other hand, is one of the lowest Mg and Sulfate and highest grade projects worldwide. All current mines in operation are high-grade and low impurities, making 3Q one of the potentially best-undeveloped projects worldwide.(6)
Not to mention, Neo Lithium’s mining operations may have less capital intensity, coupled with fewer carbon emissions than other lithium developers. New projects, such as Neo Lithium’s, aim to utilize most of its energy from renewable sources (mainly photovoltaic).(6)
- Production scale pumping wells produce up to 100 l/s of high-grade brine
- Pump tests run continuously for up to 27 days and validate that 3Q is one of the most productive salars in the lithium triangle.
Already, thanks to its robust 3Q operations, the company has achieved strong results.
Not to mention, the low impurity of its lithium has translated to low operating expenses. So much so that its operating expenses of about $2,914/ton could be in the lowest quartile in the industry.(6)
Lastly, with about $16,000/t of installed capacity, 3Q is the lowest capital-intensive lithium brine project in development.(6)
Coupled with mine life with reserves for about 35 years, taking into account only 1/3 of the known resource (Source 6), the potential for Neo Lithium could be unprecedented.
Neo Lithium Stands Out For Its Battery Grade Lithium Canada TSX.V: (NLC) United States OTCQX: (NTTHF)
3Q’s lithium processing into battery-grade levels has a similar process which has been done in the region for >20 years, with fully functional laboratories, pilot scale ponds, and plants.(6)
What sets Neo Lithium apart is its 3Q Project pilot plant that produces battery-grade lithium at around 99.6%.(6)
In this project, Neo already has production-scale pilot evaporation ponds that have been in production for almost 2 years(6). Here, Neo has seen the following:(6)
- Evaporation has shown to produce up to 3.6% Li concentrated brine
- Minimal impurities – no consumption of reagents, resulting in a lower cost to operate than other brines
- Automated thickeners with physical parameters monitoring 24/7
However, its lithium pilot plant in Fiambala, which has been in operation for just over one year, is what’s really catching people’s attention.
It’s taken what’s worked for producing battery-grade materials and improved the process to the point where battery-grade lithium with roughly 99.797% purity was achieved.(6)
Strategic Partnership With The Largest Battery Producer in the World
Neo Lithium’s rapid ascent from development to TSX company is historic.
Its operations and high-grade lithium have it positioned to be potentially the best pure play for battery materials.
Yet the strategic partnership that it recently closed with CATL, aka the largest battery producer globally (Source 6), could genuinely be the x-factor that sets it apart from peers.
Founded in 2011, the China-based CATL is the largest battery manufacturer for EVs globally and makes batteries for all the major Automotive companies.(6)
It’s also publicly traded and listed in the Shenzhen stock exchange with a market capitalization of roughly $63B and a net cash position of greater than $3B.(6)
Neo Lithium Strong Management Has It Ready For A Bright Future Canada TSX.V: (NLC) United States OTCQX: (NTTHF)
In 2021, Neo Lithium plans to complete a final feasibility study in Q3 2021, obtain the EIA for the final construction permit, complete financing discussions with CATL, and start the execution of its construction plan.(6)
Ambitious? Yes. But with a management team of this quality leading the company, genuinely, anything is possible.
Neo Lithium’s management team is committed to bringing extensive Lithium expertise and a proven track record in global exploration opportunities, resource development, business planning, and financing capabilities to fulfill the company’s goals.
As of 2020, Neo’s leadership team includes more than 40 engineers and technicians with many years of lithium and mining expertise.(6) The engineers also previously worked in companies like SQM, Orocobre, Lithium Americas Cauchari, Minera Alumbrera, Barrick, and BHP.(6)
Waldo A. Perez
PH.D., P. GEO
President, CEO and Director
Dr. Perez is the discoverer of the 3Q project and founder of Neo Lithium Corp back in 2016. With over 30 years of academic and industry experience in mineral exploration in South America and particularly in Lithium.
Dr. Perez was also the discoverer and founder in 2009 of the Cauchari project acquired through Lithium Americas Corp. He was President and CEO from inception until the end of the technical work in 2013. His role resulted in a definitive feasibility study with solid economics.
Previously, Dr. Perez was involved in multiple discoveries in gold, diamonds, zinc, and copper deposits when he served as interim President and Chief Executive Officer of Latin American Minerals Corp and Senior Geologist for Barrick Gold, IAMGOLD, Opawica Explorations and APEX Geosciences.
Carlos Vicens MBA
Vicens has over 22 years of financial analysis, corporate development, and strategy and investment banking experience. This includes mergers and acquisitions and corporate finance. Previously worked as Vice-president in Scotiabank’s Investment banking Mining team and participated in over $10B of M&A transactions and well over $5B in equity and debt issuances.
COO and Director
Pindar has over 25 years of experience as a Project Executive in developing mining, gas, and large-scale infrastructure projects in Argentina, Peru, Mexico, Australia, Canada, Guinea, Liberia, and the United Kingdom.
Previously he served as GM and Head of Projects for ArcelorMittal Group, Deputy Project Director for BHP Olympic Dam Expansion, Senior Project Management roles for engineering firms Fluor, Hatch, and Engenium.
Karayannopoulos serves as non-executive chairman of Neo Lithium Corp., a position he has held since February 9, 2016. He is also a director of the Canada China Business Council board and a member of the Board of Advisors of the University of Toronto’s Department of Chemical Engineering and Applied Chemistry. He holds Bachelor’s and Master’s of Applied Science degrees in Chemical Engineering from the University of Toronto.
Karayannopoulos also serves as Neo Performance Materials’ President and Chief Executive Officer since July 2020. He has worked in senior executive positions at Neo and its predecessor companies for more than 20 years, including as Director, President, and Chief Executive Officer of Neo Material Technologies from 2005 until NEM was acquired in June 2012 for $1.3 billion.
Over 30 years of experience in the exploration and mining industry, primarily in Chile, the United States, and Mexico, in the gold, copper, and potash markets.
Mr. Pladsen received his Chartered Accountant designation with KPMG LLP and has served as the Chief Financial Officer of several public companies, including Katanga Mining, Andina Minerals, and Atacama Pacific Gold. Mr. Pladsen has also served on Boards of Directors and Audit Committees of several TSX and TSXV listed companies and is currently a Director of Neo Lithium, Northfield Capital, and ATEX Resources.
Auriema is currently the CEO, Director, and Country President of Fredonia Management Ltd. And has over 25 years of experience in the mining and energy industries in Argentina.
He has served as manager and or Director of several companies in Argentina and Canada, including SAMCO Gold Ltd, Grupo Minero Aconcagua S.A., and 5R S.A. Mr. Auriema has also been actively involved in the promotion, management, and financing of several Argentina mining and renewable energy projects.
Tang Honghui holds both a Bachelor’s and a Master’s degree in Non-Ferrous Metallurgy from Central South University. He is the Vice President of Guangdong Brunp Recycling Technology Co., Ltd. (a subsidiary controlled by CATL). He oversees technology R&D and industrialization, production line design, and engineering of new technologies and products. During his career in Brunp, Mr. Tang has led several technology projects and received significant recognition in China. He holds over 30 patents and has been awarded numerous management awards in China.
From the Engineers and Scientists to the Investor Relations expertise, the company’s advisory team has the knowledge and the experience to guide the project to production. Here are some of the key people leading the team of advisors.
BSC., PHD. P GEO
Independent Qualified Person
Mark King (Canadian P.Geo.) is the Principal Hydrogeologist of Groundwater Insight Inc. (GWI), with more than 35 years of experience in groundwater research and consulting. Since starting GWI 23 years ago, Dr. King has worked on more than 100 large groundwater projects in the United States, Canada, and South America, and a similar number of smaller projects. Dr. King has a strong and varied background in lithium brine evaluation, serving as technical lead on more than 30 brine investigations, including QP for numerous NI43-101, SEC, and JORC reports.
Mahdavi is the Founder and Managing Director of Spinnaker Capital Markets Inc., a Toronto-based capital markets advisory firm with a 20-year track record in charting long-term success for private and public companies in a variety of sectors specializing in finding growth capital, mergers and acquisitions, and investor relations. Before Spinnaker, Mr. Mahdavi was the Director of Corporate Finance at Minacs Worldwide. There, he was in charge of the Company’s activities in the capital markets, including mergers and acquisitions. Previously serving in senior positions at the Canadian Imperial Bank of Commerce and the Bank of Nova Scotia. Mr. Mahdavi attended York University, where he studied Economics and Business.
Civil Engineer, Project Manager
Barrientos is a Mechanical & Civil Engineer from Universidad de Concepcion, Diploma in Strategy and Management Control from Universidad de Chile, and very particular lithium projects expertise. He has 30 years of industry experience and for the last 15 years in lithium projects, mainly in Chile and Argentina. He first managed the engineering and construction for SQM Salar and its Lithium Plant expansion. Later in Lithium Americas Corp. with its Preliminary Economic Assessment (PEA) and Definitive Feasibility Study (DFS). Mr. Barrientos has previously supported Neo Lithium Corp. as an engineering advisor in its PEA and PFS studies.
Source 2: http://www.globenewswire.com/en/news-release/2021/03/02/2185055/0/en/Global-Sales-of-Electric-Vehicles-Cars-to-Grow-at-22-Market-CAGR-Share-to-Reach-USD-700-Billion-By-2026-Facts-Factors.html#:~:text=%E2%80%9CAccording%20to%20the%20research%20study,%25%20from%202019%20to%202026%E2%80%9D.
Source 3: https://www.bbc.com/news/uk-politics-56807520
Source 4: https://www.cnn.com/2021/04/22/politics/white-house-climate-summit/index.html
Source 5: https://www.cnbc.com/2021/04/21/yellen-outlines-bold-climate-agenda-calling-for-net-zero-emissions-by-2035.html
Source 6: https://www.neolithium.ca/pdf/Neo-Lithium-Corporate-Presentation-I.pdf
Source 7: https://www.bbc.com/news/uk-politics-56807520https://www2.deloitte.com/us/en/insights/focus/future-of-mobility/electric-vehicle-trends-2030.html
Source 8: https://www.forbes.com/sites/mikescott/2019/06/10/electric-models-to-dominate-car-sales-by-2040-wiping-out-13m-barrels-a-day-of-oil-demand/
Source 9: https://www.ft.com/content/8f153358-810e-42b3-a529-a5a6d0f2077f
Source 10: https://www.yahoo.com/lifestyle/teslas-nickel-hunt-puts-spotlight-122212549.html#:~:text=Nickel%20is%20a%20key%20metal,growing%20demand%20for%20green%20vehicles.&text=According%20to%20a%20research%20by,the%202019%2D2030%20time%20frame.
Source 11: https://finance.yahoo.com/news/electric-vehicle-battery-market-worth-131400997.html
Source 12: https://www.barchart.com/stocks/quotes/NTTHF/opinion
Source 13: https://finbox.com/OTCPK:NTTH.F
Source 14: https://finbox.com/OTCPK:NTTH.F/explorer/current_ratio
Source 15: https://finbox.com/OTCPK:NTTH.F/explorer/quick_ratio
Source 16: https://finbox.com/OTCPK:NTTH.F/explorer/shares_float_pct
Source 17: https://finbox.com/OTCPK:NTTH.F/explorer/shares_out
Source 18: https://finbox.com/OTCPK:NTTH.F/explorer/marketcap
Source 19 : https://stockcharts.com/h-sc/ui?s=NTTHF&p=D&yr=1&mn=0&dy=0&id=p58879756647&a=942303383&listNum=3
Source 20: https://www.neolithium.ca/investors.php
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Address: 401 Bay Street Suite 2702 Toronto ON M5H 2Y4 CA
Phone: +1 416 457-6529
Neo Lithium Corp is engaged in the business of exploration operations. Its principal business activities are the exploration and development of resource properties. Its project includes the 3Q project. It operates its business in the countries like Canada and Argentina, however the mist of the revenue generated from Canada.