Introducing America’s Next Lithium Powerhouse
In this age of uncertainty, lithium is poised to become one of the planet’s most valuable and sought-after resources.
It’s driving a revolution that could redefine the way we live, work, and interact with the world around us.
This isn’t some wild speculation or far-off fantasy – it’s a reality that’s unfolding as we speak.
The lithium revolution has already begun, and those who recognize its potential now stand to reap the rewards in the years to come.
Lithium may not be as well-known as its periodic table neighbors like gold, silver, or platinum, but it’s quickly becoming one of the most important elements in modern society.
- Its versatility is unparalleled, and its uses are ever-expanding.
- You can find it in the batteries that power our smartphones, laptops, and other portable electronics.
- It’s playing a more significant role than ever in the automotive industry.
- With electric vehicles (EVs) poised to displace the traditional internal combustion engine, the demand for lithium has skyrocketed.
As you read this, EVs are gaining traction worldwide, and they’re on track to become the dominant form of transportation within the next two decades.
Whether you like it or not, the electric vehicle revolution is coming.
The entire U.S. west coast – the states of Washington, Oregon, and California – has come together to ban sales of new gas-powered cars by 2035.
Another four states – New York, New Jersey, Massachusetts and Maryland have followed suit.
Outside of the U.S., things look even more bullish for electric vehicles:
- Across the border, Canadawill be banning gas car sales nationwide by 2035.
- Chinais banning gas car sales in 2035, and India by 2040.
Some countries like Germany, Sweden and the U.K. are pushing for an even more aggressive target of banning gas car sales by 2030.
Even ahead of these ban dates, global EV sales have skyrocketed in the past few years:
Last year, 1 in 7 cars sold was an electric vehicle. Global sales topped 10 million new EVs in 2022 – an increase of 60% over 2021.
Now, here’s the catch…
Every new electric vehicle sold needs a battery… and every EV battery needs lithium.
- 67% of all the lithium mined this year will go towards EV batteries.
Lithium demand is expected to go through the roof as EV sales continue to grow. By 2030, it’s projected that lithium demand will be triple what it is now:
But where is all this lithium going to come from?
Breaking Into a Tight Market
As it turns out, most of the world’s lithium production is controlled by a small handful of companies.
The two largest lithium producers accounted for 53% of global production last year.
Just six companies control nearly 80% of all lithium being produced in the world right now.
Now, while this hasn’t stopped countless dozens of junior companies from trying to enter the lithium market right now, it does make things more interesting for them.
The top dogs of the lithium market – namely Albemarle and SQM, as well as the mid-tiers behind them – want to keep their spots.
The heavyweights don’t just see the writing on the wall, they’re the ones who put it there in the first place. They have a crystal-clear view of lithium demand in the coming years and want to keep their pieces of the pie.
But the thing is, as time goes by, the reserves of these large producers will start to fall as they mine out what they’ve got. They need to replenish their reserves to maintain the same level of production.
And with the kind of demand scenario we’re looking at for lithium going out to 2030 and beyond, replenishment won’t be enough.
They’ll need to grow both their reserves as well as their production.
A common thing in these kinds of markets is that the big companies will start producing more. This causes prices to drop, which in turn lowers valuations…
… and while valuations are down, the big boys get to go on a shopping spree and snatch up all the best junior companies.
Now, what would top the shopping lists of these major lithium producers?
Simple. Companies with large, high-grade, low-impurity , and low-cost deposits located in safe jurisdictions.
Locking In the Best Lithium Projects
Now, keep in mind that these qualities are extremely desirable even if a buyout isn’t on the table.
With lithium demand set to skyrocket, tons of mining bandwagoners have already jumped aboard this latest resource trend with any project they can get their hands on. There are already plenty of such smaller companies in the lithium sector.
To separate the wheat from the chaff, you’ll need to identify the key differences that set a bad lithium company apart from a good one. And the most important difference, of course, is in the quality of their lithium deposits.
After all, lithium companies do one thing – produce lithium. So, their lithium deposits are their most important assets.
Once again, we want:
- Large deposits since more are better;
- High-grade, low-impurity deposits that can produce battery-grade lithium;
- Low-cost deposits that make mining more profitable and
- Safe jurisdictions for our deposits so that the local government won’t try for a bigger take, or worse, nationalization
These qualities are what we want to focus on when looking at lithium projects.
What if I told you there was a junior lithium company with not just one – but two such projects?
The Lithium Charge: America’s Race to Energy Dominance
This company has two top-tier lithium deposits that set them apart from the crowd.
- The TLC Project is the 2ndlargest measured and indicated (M&I) lithium resource in the USA.
- The Falchani Project is the 3rdlargest hard rock lithium resource in the Americas.
BONUS: It also just happens to own the 5th largest undeveloped uranium deposit in the world… but more on that later.)
Three years ago, this company traded at a paltry fraction of where it sits now.
However, given the economics of its lithium projects, there’s still plenty of room for the company to grow – and plenty of value for the major lithium producers if they come knocking.
So, without further ado, let’s jump into this company and take a look at just how good their star assets are.
The main highlight of this company., as we mentioned, is its two world-class lithium projects: the Tonopah Lithium Claims (abbreviated TLC) in the U.S. and Falchani in Peru.
The first one we’ll take a look at is TLC, located in central Nevada:
The 14th largest lithium deposit in the world by reserve size, TLC is This company’s owned flagship project.
A near-surface deposit located just six miles outside the town of Tonopah in Nevada, TLC has all the right qualities going for it:
- As one of the largest lithium deposits in the Americas, we’re looking at a 40-year mine life averaging 38,000 tons of battery-grade lithium annually– over a billion dollars a year in revenue at current lithium prices. (1)
- With incredibly high extraction rates, >99% lithium carb purity can be achievedafter the first precipitation, with low amounts of impurities like mercury or arsenic.
- At USD $ 7,443/tonne, extraction costs aren’t as low as in a spodumene-type deposit. However, the unique geology of the lithium claystone at TLC makes its operating costs similar to that of solar-type deposits, which are the next best thing.
- And as far as location goes, it doesn’t get any safer than Nevada, one of the most attractive mining jurisdictions in the entire world. Located above the water table, it has private water rights and no protected species.
Proximity to the town of Tonopah also means that infrastructure like highways, power, and water are all already available.
It’s even located just 3.5 hours away by road from Tesla’s Nevada gigafactory.
It’s also just hours away from Nevada’s largest claystone, which projects recently received $650M from General Motors.
This company completed its maiden Preliminary Economic Assessment (PEA) three months ago…
It gave TLC an NPV of USD billion at an 8% discount rate and a $20,000 lithium carb price (current prices are around $26,000, though they reached as high as $87,000 last year). (1)
The PEA is just the Beginning…
Following the positive results from the PEA, This company immediately commenced a Pre-Feasibility Study (PFS).
A large diameter drill program is already underway at TLC as part of the initial PFS work, with metallurgical and pilot processing plant testing scheduled for later in the year.
With steps like the PFS, Feasibility Study, permitting, and construction still remaining, TLC’s economics continue to go from strength to strength.
This company has a clear path to follow as it continues to develop TLC, and the further they advances along that path, the closer This company valuation will get to reflect the true value of TLC.
Moving along, we have This company’s company second lithium project, located in Peru: Falchani.
Earlier, we mentioned that Falchani was one of the largest lithium deposits in the world by size. But if you might recall, we also said that This company’s Macusani has the 5th largest undeveloped uranium deposit in the world.
What’s the deal here?
Well, This company’s mining claims in Peru actually consist of two different projects located just scant miles apart:
- The Falchani lithium project we’ve already named, and
- The Macusani uranium project is located just to its northeast.
The main focus here is Falchani, so we’ll talk about that first.
Like TLC, Falchani is also at the PFS-stage project, with a positive PEA already completed. Falchani is expected to operate for 33 years, producing between 23,000 and 85,000 tonnes of battery-grade lithium annually. (2)
Costs are projected to be around the $4,000 per tonne mark, which is extremely good and competitive with even the lowest-cost lithium miners in the world.
The numbers give Falchani an NPV of USD $ 1.5 billion at an 8% discount rate and $12,000 lithium.2)
Those numbers are highly robust, even in a much weaker lithium environment.
While Peru has historically been one of the more stable mining jurisdictions in the world outside of the developed Western nations, its proximity to the “Lithium Triangle” is both a blessing and a curse. Let me explain:
The triangle found at the intersection of the countries of Argentina, Bolivia, and Chile makes up what’s known as the “Lithium Triangle.” Within this triangle sits 53% of the world’s known lithium reserves.
Throw in Peru, sitting just a little off to the side, and that number jumps to 67% of the world’s lithium reserves.
Usually, this would be a good thing – proximity to so many other world-class lithium deposits means easy access to top-tier infrastructure and logistics.
CHILE FIRES A WARNING SHOT: Peru’s Window Just Opened!
Here’s the problem: In April 2023, the president of Chile, Gabriel Boric, announced his plans to nationalize his country’s lithium industry.
The world’s second-largest lithium-producing country, with the largest lithium reserves in the world… nationalizing all new lithium production from this point onwards, just like that.
In the wake of the news, the world’s two largest lithium companies, Albemarle and SQM, were down 10% and 20%, respectively.
But with Mexico having nationalized its lithium industry last year, and now Chile, well, there’s certainly a precedent to follow in Latin America.
And that leaves the windows and doors WIDE OPEN for Peru.
Peru would need a change in the constitution to change the mining law. It’s MUCH different than other neighboring countries.
Though lithium producers in Chile with pre-existing contracts and operations were not affected by its nationalization, Falchani would be vulnerable if the Peruvian government adopted a similar policy.
It’s not sure to happen in Peru, of course – but it certainly is a blemish on what’s otherwise an outstanding, world-class lithium deposit.
UPDATE: This company Just received an exploration drilling permit from Peru. That’s the FIRST TIME IN approximately 2 YEARS that the country has granted a permit. It’s a pivotal breakthrough for the company that shows Peru is serious about lithium exploration and development.
There’s MORE: The Uranium Upside
It’s worth mentioning that the Macusani project is also a world-class uranium deposit. It is containing nearly 70 million pounds of uranium oxide at just $18/lb. All-in sustaining costs, Macusani has also had a PEA done, giving it an NPV of USD $ 600 million. (3)
However, Macusani is very much not the company’s focus, and management is planning to spin out the asset as a kicker for shareholders. Consider Macusani to be just icing on the proverbial cake for American Lithium.
Now, with all the projects out of the way, let’s talk about this company’s most important asset: its management team.
This company is headed by CEO Simon Clarke, a serial mining entrepreneur with nearly three decades of experience in the industry.
Previously the founder and CEO of M2 Cobalt Corp., another important battery metal, Simon built that company up until it was bought out by Jervois Global, a global cobalt and nickel miner that Simon stayed on with as a director for 12 months. These roles give Simon extensive amounts of direct experience with battery metals.
Leading the board as Chairman, we also have Andrew Bowering, another successful mining industry veteran with over 30 years under his belt.
Though he’s founded, funded, and managed countless resource companies and still serves in a number of roles in several other juniors, one highlight stands out here.
Andrew is a founder of Millennial Lithium Corp., a junior company with a property in the Lithium Triangle that was bought out last year for half a billion dollars.
In other words, like Simon, Andrew has tons of direct hands-on experience with growing a battery metal mining company from grassroots to buyout.
The rest of This company.’s management team is packed with talent, such as COO Laurence Stefan, who previously managed over 100 mining projects for Gold Fields in South Africa and JCI.
Or EVP Ted O’Connor, most recently a director at Cameco who was an original member of the team that discovered the Falchani deposit.
This company leadership team brings 250+ years of expertise in all aspects of the resource and mining industry to the table. This is a proven team with a track record of building successful mining companies behind their backs, and you can count on them to deliver the most value possible from This company’s world-class projects.
Now, even with good projects and management, there’s one more important thing we need to check for any junior company – their share structure and balance sheet. So, that brings us to…
With 214 million shares outstanding, This company currently sits at a considerable market capitalization of around USD$450 million.
Although This company remains a small-cap company without active mining operations or revenue, the market is acknowledging the worth of the company’s assets.
Combined, these assets have a total Net Present Value (NPV) of $5.3 billion.(1,2,3)
This company trades at a market cap of less than 10% of its NPV.
As we’ve mentioned before, the closer This company advances its projects toward production, the more closely its market value will reflect the valuation of its projects.
This company is well aware of this fact, of course, which is why they’re speeding TLC and Falchani through their Pre-Feasibility Studies.
- Supporting this, This company is sitting on a large cash stockpile – USD$30 million worth of it.
- No debt on their books, and no royalty- or streaming-type agreements signed for any of their projects. Their balance sheet is as clean and healthy as it gets, with no strings attached.
In addition, the company has a near-in-the-money warrant that, if exercised, could provide up to USD $ 50 million in additional cash.
On top of this, This company can count a number of institutional entities among its significant shareholders, like Swiss mining fund Commodity Capital and Australian investment management firm Ausbil.
Management, and in particular Andrew Bowering, owns a sizeable chunk of stock as well, which is always something you like to see as it means management’s interests are aligned with shareholders.
The Plan to Unlock Huge Value
Putting it all together, you can see that This company has all the prime ingredients for success:
- Two large world-class lithium depositsin good jurisdictions,
- A proven management team that’s sold companies, done it before, and wants to do it again, and
- Plenty of cash, with a squeaky-clean balance sheetand a healthy share structure.
So, where do things go from here for the company?
Well, This company has set a clear path forward for itself.
Work on Pre-Feasibility Studies at both TLC and Falchani is underway, which will, in time, lead to full-fledged Feasibility Studies and permitting. While minor work like additional drilling is also taking place at Macusani, the long-term goal is to spin out this project.
With its surplus cash, This company can continue its development work uninterrupted.
It’s worth noting that lithium prices have been in decline since hitting all-time highs late last year, but they appear to have recently bottomed.
While a weak lithium price environment does impact American Lithium, the effects won’t be as pronounced since the company isn’t producing yet.
In addition, thanks to the low production costs at both TLC and Falchani, This company project economics will help keep the company on the radar of prospective investors… or potential buyers.
After all, we know what lithium demand in 2030 will look like – and it will be much closer to 2030 than now when This company is ready to put its projects into production.
Finally, remember our discussion of the Lithium Triangle and the threat of nationalization?
If nationalization doesn’t turn out to be an issue for the rest of the Triangle, then things will carry on as before. This company will continue to own two world-class lithium projects in quality jurisdictions.
But if things do take a turn for the worse, and we start seeing more countries nationalizing their lithium industries…
… then, the TLC project will become even more valuable.
Because if nationalization is the problem, it doesn’t get any safer than being located in the U.S. And you can be sure that the majors like Albemarle and SQM don’t want a repeat of what happened in Chile.
8 Reasons to put this company on your radar
- High-quality lithium projects: This company hosts TWO exceptional, large-scale lithium projects:
- The TLC Project in Nevada with an NPV8 of US$3.26 Billion, and (1)
- The Falchani Project in Peru with an NPV8 of US$1.5 Billion. These projects present a prime opportunity for lithium production and expansion. (2)
- Robust project economics: Both projects showcase stellar economic metrics, such as IRRs of 27.5% and 19.7% and payback periods of 3.8 and 4.7 years for TLC and Falchani, respectively. These projects exhibit their profitability and viability in the lithium market. (1,2)
- Scalability and extended mine life: The TLC and Falchani projects offer scalable production capacities, with an average LOM production of 38,000tpa LCE for 40 years at TLC and 23,000 to 85,000tpa Li2CO3 production at Falchani over 33 years. This ensures a continuous supply of lithium for decades. (1,2)
- Strategic locations: Situated in Tier 1 mining jurisdictions with excellent infrastructure and community support, these projects are well-positioned to benefit from the burgeoning U.S. Battery Belt. This company project, in particular, stands to capitalize on the growing lithium demand in the United States.
- Near-term value drivers: This company has a series of exciting milestones on the horizon, such as updated resource estimates and economic study completions. These developments have the potential to impact the company’s valuation positively.
- Lithium market momentum: The global shift toward electric vehicles and renewable energy technologies drives lithium demand. By 2031, US lithium-ion battery capacity is expected to expand by 86% from its 2026 levels, highlighting the immense growth potential in the lithium market.
- Environmental advantages: Both the TLC and Falchani projects have minimal ecological impact, including no significant threats to protected plants or wildlife. The TLC project has its lithium deposit above the water table, a crucial consideration for eco-conscious investors seeking sustainable investments.
- Diversification and optionality: These company projects offer potential by-products like magnesium, cesium, and sulfate of potash (SOP), which could unlock additional revenue streams. The company’s uranium asset, Macusani, presents further diversification and potential value growth.
Legal Notice: This website is owned and hosted by Market Tactic Media Ltd. Articles appearing on this website should be considered paid advertisements. Market Tactic Media Ltd. and its owners, managers, employees, and assigns (collectively “the Website Host”) is often paid by marketing companies to host websites on which articles profiling public companies are published. The articles on this website are not, and should not be construed to be, offers to sell or solicitations of an offer to buy any security. Neither the articles on this website nor the Website Host purport to provide a complete analysis of any company or its financial position. The Website Host is not, and does not purport to be, a broker-dealer or registered investment adviser. The articles on this website are not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular investor. Any investment should be made only after consulting a professional investment advisor and only after reviewing the financial statements and other pertinent corporate information about the company. Further, readers are advised to read and carefully consider the Risk Factors identified and discussed in the profiled company’s SEC and/or other government filings. Investing in securities, particularly microcap securities, is speculative and carries a high degree of risk.