Research Report | ALPHA LITHIUM | OTC: APHLF | NEO: ALLI
This is a paid promotion by Alpha Lithium Corp.
A Bargain that Could MakeWarren Buffett Blush
Within Argentina’s coveted Lithium Triangle, a little-known junior has secured complete ownership of Tolillar Salar – potentially the last wholly-owned lithium salar in the country.
With a net-present-value of $1.7 BILLION and a market cap of just $173 million, Alpha Lithium Corporation (NEO: ALLI) (OTC: APHLF) is trading at nearly a 10-fold value gap.
Warren Buffett once said, “Price is what you pay. Value is what you get.”
With Alpha Lithium, you’re getting perhaps the biggest value on the market today.
A recently released Preliminary Economic Assessment estimates the value of the company’s Tolillar Project could be worth up to $1.7 billion.
Right now, Alpha Lithium is trading for a fraction of that.
But that’s not all.
In the report below, you’ll discover…
- How Alpha Lithium snatched-up a second highly prospective project inside Argentina’s renowned Lithium Triangle – a world-class mining jurisdiction offering investors security and upside potential.
- How it’s surrounded by some of the world’s largest (and most lucrative) lithium players — creating more value for investors…
- And how a legendary South America lithium insider sees so much potential in the properties, he specifically sought out Alpha Lithium.
That happened after he made MILLIONS for his prior company.
You’ll see exactly why Alpha Lithium (OTC: APHLF, NEO: ALLI) is already the target of a hostile takeover by the largest construction company in Argentina.
This is like getting all the explosive upside potential of a grassroots exploration company – but de-risked.
Let me explain…
“Argentina’s Lithium-Triangle Now World’s Largest Lithium Project Pipeline”
- Resource World Magazine
Located in South America, the Lithium Triangle spans the intersection of Bolivia, Chile, and northwestern Argentina.
This highly-coveted swath of land…
- Contains almost 60% of global lithium reserves.1
- It’s responsible for nearly 40% of the world’s output.2
- And hosts some of the largest, richest lithium brine deposits on the planet – including the purest source of lithium brine on Earth.3
It may not be the golden city of El Dorado. But when it comes to lithium, it’s about as close as you can get.
And as the global demand for the white metal soars in the coming decade – the World Economic Forum projects it will more than TRIPLE over the next 7 years.4
The Lithium Triangle, and specifically Alpha Lithium (OTC: APHLF, NEO: ALLI) in Argentina, could offer investors a key opportunity to participate in the boom.
Argentina is quickly becoming a lithium powerhouse.
By 2030, Argentina might deliver 16% of global lithium.
That would put them on the path to pass Chile, as the world’s second largest producer…
In only four years.8,9
It’s one of the top places for mining companies to do business.
You see, unlike Bolivia and Chile, the federal government plays a small role in Argentina’s lithium market.
Argentina is more similar to the United States – but instead of having states, it has provinces.
Their constitution grants the country’s 23 provinces the right to administer minerals (including lithium) on their land.
That means the power of the country’s minerals is in the hands of the provinces – so there is little fear over potential nationalization.
And Argentinian law gives tax breaks to miners – instead of imposing restrictions – further encouraging development.10
It’s why the S&P Global has named Argentina,
“Latin America’s premier destination for foreign investment looking for lithium projects”.
It’s why major players like Livent, Ford, and GM are racing to the country to secure their share of the multi-billion prize.
From 2018 to 2022, lithium investment announcements in Argentina soared… from $450 million to $8.022 BILLION.
That’s a multiple of almost 18 times over!11
Around 40 lithium projects, in different stages of exploration, are currently underway in Argentina.
More than any other country in the world.12
And at the heart of it?
Alpha Lithium Corporation (OTC: APHLF, NEO: ALLI) – possibly the continent’s most undervalued gem.
Early-Entry Lithium Explorer Aims To Solve A Critical Market Problem
Alpha Lithium has two ongoing projects – one in Tolillar and one in Hombre Muerto.
Both are within Argentina’s valuable Lithium Triangle.
And there’s another major positive…
Both projects also fall within the Salta Province of Argentina.
- The Salta Province was ranked best in Argentina for Mining Policies, and
- 3rd in South America for Investment Attractiveness.13
Alpha Lithium’s most-advanced asset, Salar Tolillar, is a 100%-owned claim to 27,500 hectares.
That’s an area larger than the entire city of Tallahassee, the capital of Florida!14
It’s also one of the LAST remaining undeveloped salars in Salta Province.
You may be wondering what a “salar” is?
- A salar is a naturally forming, salt-encrusted flat or depression (picture a giant desert of white).
- It’s akin to a gold mine or an oil field but instead it hosts potentially massive quantities of lithium.
The Salar Tolillar project is also significantly de-risked.
Major exploration has already taken place.
A newly released Resource Estimate found that the project contains an indicated resource of 3.6 million tonnes of lithium carbonate equivalent (LCE) with an inferred resource of 1.4 million tonnes of LCE.15
Using what the company is calling “conservative estimates”…
Preliminary Economic Assessment (PEA) values the project at $1.7 BILLION after-tax NPV, using an 8% discounted rate of return.16
With these figures, Salar Tolillar could generate an internal rate of return of 25.6% and $8.2 BILLION in free cash flow over a 35-year production life.17
But the current market cap of Alpha Lithium is only hovering around $173 million.18
To show just how big an opportunity this could amount to, just consider…
Last year, LitheA Inc. sold a 13,470 hectare claim in the Salta province for $962 million to Ganfeng Lithium.
According to Ganfeng, the project has an after-tax NPV of only $1.22 billion.19
Compared to LitheaA’s (now Ganfeng’s) claims, Alpha Lithium’s Salar Tolillar project has…
- Twice as much land,
- A Net Present Value worth 40% more,
- Extensive mining infrastructure in place, and
- Exclusive access to freshwater.
The availability of freshwater alone is huge when it comes to lithium mining.
You see, producing lithium requires a lot of water.
And in one of the driest places on earth – even drier than the Sahara Desert – this is an invaluable attribute.
An independent freshwater study confirmed Alpha Lithium’s freshwater source is more than capable of supporting 50,000 LCE tonnes per year.20 (The current PEA only accounted for 25,000 LCE tonnes per annum.)
And what’s more?
Alpha Lithium has only explored one-third of its Salar Tolillar claim.
There’s still thousands of acres left to test – offering even more potential upside for investors.
Given the PEA and land’s further potential, it’s no wonder Alpha Lithium has been such a sought-after target…
- First, drawing the attention of David Guerrero, a famous player within the South America lithium space…
- Then by Tecpetrol, a company attempting a hostile takeover.
We’ll explain more on that in a minute…
Because Alpha Lithium’s Salar Tolillar project could be outshined by the company’s second claim, in Hombre Muerto.
STOCK INFORMATION
Sector: Lithium Exploration
Symbols: NEO:ALLI, OTC:APHLF
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Top Reasons to Consider Alpha Lithium
- $1.7 Billion NPV vs. $173 Million market cap. A Preliminary Economic Assessment (PEA) estimates Alpha Lithium’s Tolillar Salar project has a $1.7 billion net present value. However, the company currently trades at a $173 million market cap. Alpha Lithium could offer potential investors a significant discount, and the opportunity to secure a nearly 10-fold value gap.
- Last wholly-owned salar in Argentina. Alpha Lithium’s Tolillar Salar project could be the last remaining wholly-owned salar in Argentina. At over 27,500 hectares, the project is larger than the capital of Florida. It also has exclusive access to freshwater, extensive mining infrastructure, and an indicated resource of 3.6 million tonnes of lithium carbonate equivalent.
- A second project within one of the world’s top lithium brine locations. In addition to its Tolillar Salar project, Alpha Lithium owns over 5,000 acres in Hombre Muerto – home to the purest source of lithium brine in the world. The company’s claim is bordered by lithium-giants POSCO and Livent, and vertical electrical sounding (“VES”) surveys have revealed significant brine presence. This second project could offer investors additional upside on an already potentially under-valued company.
- Pilot Plant underway and cash in the bank. Alpha Lithium is nearing completion of its Pilot Plant at Tolillar Salar. The pilot plant is expected to utilize brine from both the company’s projects – at Tolillar Salar and Hombre Muerto – and confirm the company’s positive lab results for its cutting-edge Direct Lithium Extraction (“DLE”) technology. And with $35 million cash in the bank, Alpha Lithium has both the technology and the resources to continue exploration and mining.
- Latin America’s Premier Destination for Foreign Investment in Lithium Projects. The Lithium Triangle – the intersection of Bolivia, Chile, and northwestern Argentina – contains almost 60% of the world’s lithium reserves. However, Argentina could offer investors the greatest opportunity to participate in the lithium boom. There are mining-friendly laws and little fear over nationalization, which has led to a 10-year high in lithium exports.
- Lithium Legend David Guerroro. David Guerrero is a famous player within the South American lithium space. Before joining Alpha Lithium, he served as President of Galaxy Resources Argentina – where he was instrumental in selling the company’s lithium claim in the Salta Province to POSCO for $280 million. Seeing Alpha Lithium’s potential, Mr. Guerrero came knocking at Alpha Lithium’s door – first becoming a large shareholder, then joining as Country Manager. He brings an impressive combination of industry experience and regional knowledge to the team.
Home To The World’s Purest Lithium Brines
With over 25-years of lithium production history, Hombre Muerto is well understood to be one of the world’s top lithium brine locations.
It has the unique distinction of hosting the purest source of lithium brine in the world.21
And it’s also home to some of the largest (and most lucrative) lithium producers in the world…
- Livent Corporation, with a market cap of almost $4 Billion,
- Allkem Limited, with a market cap of $5.86 Billion, and
- POSCO Holdings Inc., who’s market cap is around $31.65 Billion.22
Alpha Lithium’s claim in Hombre Muerto is smack dab in the middle.
The company’s 5,000+ hectares in this world-class lithium hub is bordered by both POSCO and Livent.
So far, Alpha Lithium has completed 56 vertical electrical sounding (“VES”) surveys, which have revealed significant brine presence.
Initial testing shows the company could expect lithium grades up to 1,200 mg/L of high-purity brine.23
The company has received its drilling licenses and is preparing the drill sites accordingly.24
But that’s not all…
Alpha Lithium has been pre-awarded 5,700 additional hectares of land in Hombre Muerto – potentially doubling the project’s current size.
The potential here could be enormous.
That’s why it caught the attention of one of the most successful mineral explorers in South America.
A Lithium Legend Joins the Team
If you’re familiar with South American lithium, then you likely know of David Guerrero.
Over the past 20 years, he’s held various roles with Rio Tinto, senior management positions within Canadian Lithium 1, and was President to the Salta Mining Providers Chamber.
But most notable, he served as President of Galaxy Resources Argentina.
Now Galaxy Resources owned a land package in Hombre Muerto – right down the road from Alpha Lithium.
The company’s claim had 1.58 million tonnes of high-grade lithium carbonate equivalent… which Mr. Guerrero was instrumental in selling to major mining company POSCO for $280 MILLION.
But Mr. Guerrero wasn’t done – he knew the value of the Salta Province, and how much lithium it may hold.
So when he saw that Alpha Lithium scooped up its massive land package, Mr. Guerrero came knocking at their door…
First, he became a large shareholder – investing his own money in.
Then, he joined the team as Alpha Lithium’s country manager.
According to Brad Nichol, CEO of Alpha Lithium, “
"(Mr. Guerrero) brings a rare combination of strategic big company, big picture, international experience combined with an incredibly comprehensive and meaningful local presence that is both respected and appreciated in the Argentine lithium sector.”25
Mr. Guerrero will also play a crucial role in the development of the company’s pilot plant which is well-underway.
Alpha Lithium’s Pilot Plant Nears Completion
Strategically located in Tolillar Salar, the pilot plant will demonstrate the company’s cutting-edge Direct Lithium Extraction (“DLE”) technology.
If you’re not familiar, DLE is a newly developed method for extracting lithium out of brine.
Goldman Sachs is calling it,
“A potential game changing technology”.26
Why?
It has the potential to cut the timeline for lithium extraction from a matter of months, to a matter of days.
Faster extraction could substantially improve a project’s returns, with the capacity to double lithium production compared to traditional methods.
It’s also more environmentally friendly and sustainable than traditional methods, which use evaporation ponds and high volumes of water.
Alpha Lithium has already successfully tested its in-house DLE technology in the lab.
It will be using the pilot plant to demonstrate that the results can be repeated and maintained under industrial pilot conditions.
– Brad Nichol, President and CEO of Alpha Lithium
The pilot plant has the potential to utilize brine from both Tolillar Salar and Salar del Hombre Muerto.
Testing is expected to begin within the next few months.
Of course, pilot projects cost money – which is another reason Alpha Lithium offers what we believe is tremendous value.
The company is cashed up with $35 million in the bank.
That’s more than enough for management to execute its growth plans.
And speaking of cash in the bank…
So Much Upside, Alpha Lithium is Already the Target of a Takeover
Listen…
It’s very rare for a junior exploration company to undergo a hostile takeover attempt…
But when a company’s market cap is so far below its estimated underlying value – the shark’s are going to circle.
Which is why on June 2 Tecpetrol made an unsolicited bid to buy the company for $111 million (after accounting for cash).28
Now here’s where the story gets really interesting.
The Board of Director’s advised Alpha Lithium’s shareholders to reject the hostile takeover bid.
They called it “highly opportunistic” and “a stink bid that does not reflect Alpha’s full and fair value”.29
Tecpetrol has until September 22 to revise their offer.
The big question remains…
Will they increase it enough to entice the Board and shareholders?
Remember that Alpha Lithium’s wholly-owned Tolillar salar project on its own has a Preliminary Resource Estimate of $1.7 BILLION – more than 15 times what the current bid is at…
And that doesn’t even take into consideration the further exploration upside OR the company’s second project, Hombre Muerto.
Or will they let their bid expire?
Only time will tell. But one thing is certain:
Alpha Lithium’s projects are starting to attract the attention of some deep-pocketed players.
It may only be a matter of time before another company swoops in with an even better offer.
Why You Need to Pay Attention to Alpha Lithium Right Now
Let’s quickly summarize…
- Alpha Lithium has one project (Salar Tolillar) with a $1.7 BILLION after-tax NPV…
- It has a second high-potential project (Hombre Muerto) with significant brine presence in one of the world’s top lithium brine locations
- It’s successfully tested new, cutting-edge extraction technologies in the lab and is moving forward with a Pilot Plant…
- And it has $35 million cash in the bank…
Yet, its market cap is sitting at a $173 million.
The time to get into the lithium market is now.
And Alpha Lithium (OTC: APHLF, NEO: ALLI) could offer investors the biggest margins on the market today – with an opportunity to secure a position and lock-in a nearly 10-fold gap.
Do your own due diligence, and discuss with your advisor today.
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STOCK INFORMATION
Sector: Lithium Exploration
Symbols: NEO:ALLI, OTC:APHLF
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1 https://theglobalamericans.org/2022/12/a-new-age-for-south-americas-lithium-triangle/
2 https://www.afr.com/world/south-america/lithium-triangle-enjoys-its-moment-in-the-sun-20230715-p5dofv
3 https://livent.com/company-overview/global-locations.
4 https://www.weforum.org/agenda/2022/07/electric-vehicles-world-enough-lithium-resources/
5 https://about.bnef.com/blog/argentinas-lithium-superpower-ambition-is-good-news-for-tesla/
6 https://investingnews.com/lithium-triangle-primed-for-a-white-gold-rush/
7 https://oxfordbusinessgroup.com/reports/argentina/2018-report/economy/white-gold-argentina-positions-itself-as-one-of-the-leading-destinations-for-the-exploration-and-production-of-lithium
8 https://www.economist.com/the-americas/2022/11/15/argentina-could-help-the-world-by-becoming-a-big-lithium-exporter
9 https://www.economist.com/the-americas/2022/11/15/argentina-could-help-the-world-by-becoming-a-big-lithium-exporter
10 https://www.economist.com/the-americas/2022/11/15/argentina-could-help-the-world-by-becoming-a-big-lithium-exporter
11 Page 8, https://alphalithium.com/wp-content/uploads/2023/05/Alpha-Lithium-Corporate-Presentation-14-May-2023.pdf
12 https://www.economist.com/the-americas/2022/11/15/argentina-could-help-the-world-by-becoming-a-big-lithium-exporter
13 Page 15, https://alphalithium.com/wp-content/uploads/2023/05/Alpha-Lithium-Corporate-Presentation-14-May-2023.pdf
14 106 square mile equivalent of 27,500 hectares. Tallahassee, Florida is 98.2 sq miles. https://en.wikipedia.org/wiki/Tallahassee,_Florida
15 https://alphalithium.com/alpha-lithium-files-significantly-improved-resource-estimate-for-tolillar-salar-argentina/
16 https://alphalithium.com/alpha-lithium-updates-and-improves-preliminary-economic-assessment-for-tolillar-project-in-argentina/
17 https://alphalithium.com/alpha-lithium-updates-and-improves-preliminary-economic-assessment-for-tolillar-project-in-argentina/
18 Yahoo Finance market cap as of 22 August 2023
19 https://www.spglobal.com/marketintelligence/en/news-insights/videos/streamline-corporate-workflow-sp-capital-iq-pro
20 https://alphalithium.com/alpha-lithium-receives-independent-confirmation-of-major-fresh-water-discovery-at-tolillar-salar-argentina/
21 https://livent.com/company-overview/global-locations.
22 Market caps per Yahoo Finance, 22 August 2023
23 Page 15, https://alphalithium.com/wp-content/uploads/2023/05/Alpha-Lithium-Corporate-Presentation-14-May-2023.pdf
24 https://alphalithium.com/alpha-lithium-granted-drilling-licenses-for-hombre-muerto-salar-in-argentina/
25 https://alphalithium.com/alpha-lithium-updates-key-leadership/
26 https://www.goldmansachs.com/intelligence/pages/gs-research/direct-lithium-extraction/report.pdf
27 https://alphalithium.com/alpha-lithium-nears-completion-of-pilot-plant-at-tolillar-salar-argentina/
28 CAD$150 million price per Press Release, converted at 1USD to 1.35CAD https://alphalithium.com/alpha-lithium-files-directors-circular-recommending-shareholders-reject-tecpetrols-hostile-stink-bid/
29 https://alphalithium.com/alpha-lithium-files-directors-circular-recommending-shareholders-reject-tecpetrols-hostile-stink-bid/
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