There are incredible opportunities available in Lithium right now...
But most investors are getting it wrong.
Demand for lithium is soaring thanks to battery demand. And interest in the industrial metal has never been higher.
But, before investing you MUST know this: Not all lithium is created equal.
Savvy lithium investors know that it’s the quality of the lithium procured, not just the quantity that will mint the biggest fortunes.
Unfortunately, most lithium miners are sitting on low-grade finds. Their investors will find out the hard way that higher production costs will greatly offset profits.
Investing in lithium isn’t as easy as investing in silver or gold as the commodity doesn’t trade in the commodities or futures market.
To participate in the lithium supply squeeze, investors have no choice but to buy shares of the explorers and producers. But to win big, they must be sure to buy the right ones.
There’s one company that appears to check all of the lithium boxes off. It’s sitting on the highest-grade lithium brine resource in the world. Plus, it’s about to double its land position in Chile, the most lithium rich area in the world.
And in July, Bearing Resources Ltd. (TSX: BRZ.V; OTC: BRGRF) plans to close the transaction to acquire the world’s highest-grade undeveloped lithium project.
Bearing Resources has already spent $7 million exploring the region. And shortly after the transaction closes, it will provide investors with a resource update.
If Bearing Resources is anything like Alset Minerals Corp. (TSX: ION), when the news hits, Bearing Resources’ stock price could soar. A year ago, Alset Minerals Corp. announced its own positive lithium assay news.
In just a few short weeks, Alset Energy Corp.’s stock was trading up 515 percent! Investors who got in before the announcement made a killing.
With Bearing Resources, there’s still time to catch the lithium train before it takes off again.
Here’s why...
The Next Leg of the Lithium Boom
First, the lithium bonanza is only just beginning. And lithium prices are already going parabolic.
Lithium demand is up 77 percent since the financial crisis. The biggest reason is battery storage.
The devices we use every day require it. Laptops, smartphones and electric cars all need lithium to keep their rechargeable batteries humming.
Solar power, including Tesla’s Powerwalls, is also fanning the flames of lithium consumption.
Everyone has hopped on the electric car bandwagon. And it’s not just car companies like General Motors Company, Ford Motor Company or Tesla (NASDAQ: TSLA). Even Apple Inc. and Alphabet Inc. have entered the race leading Goldman Sachs to dub lithium the “next gasoline.”
All of these advancements in consumer technology are driving lithium’s growth. And lithium prices have benefitted greatly as supply has struggled to keep up with demand.
Electric vehicles require the most lithium by far. Each EV needs 51 thousand to 63 thousand kilograms of lithium to power it.
Tesla’s Powerwalls need 10 thousand kilograms apiece. And laptops, cell phones and power tools all require lithium, too.
Source: Visual Capitalist
Over the years, large-scale, low-grade projects have been abandoned. Today, miners and their investors favor low-CAPEX, high return projects.
That’s where Chile’s lithium brine deposits come in. They are located in flat, arid areas. This makes setting up shop for exploration and extraction easier. It removes the expensive challenges associated with mining lithium in remote, mountainous areas.
Chile’s dry desert climate is perfect for lithium extraction.
Chile’s government considers lithium a “strategic resource.” One which, until recently, the government had closely guarded.
Chile has been hesitant to grant outside miners permits or concessions to extract lithium from its brine. But unlike other potential lithium miners in Chile, Bearing Resources already has its concessions and permits in place.
Bearing Resources is just one of a handful of miners with government approval to mine lithium in the country. Competition is shut out from accessing the world’s highest-grade lithium find.
4. A World Class Team with a Marketing Plan
And when production begins, Bearing Resources will have no problem finding lithium buyers.
Its management team is stacked with all of the right people. They know how to bring new resource finds to the market.
Bearing President and CEO Jeremy Poirier has over a dozen years in the public markets. Most recently, he was a cofounder and director of Pure Energy Minerals Ltd. (TSXV:PE)
Poirier has already landed Pure Energy Minerals an agreement to supply Tesla with lithium. But with its gigafactory online, Tesla needs more of it. With the relationship already in place, Bearing Resources is a natural pick to fill the void.
Tesla is ramping up production at its gigafactory. The company is already ahead of schedule. And Tesla has announced it’s making a Telsa-semi. It’s expected to greatly reduce cargo and transport costs. The Tesla-semi is just one more piece of the energy revolution.
The energy revolution is fueled by lithium.
More gigafactories are coming online soon in China. These battery facilities need more lithium, too. So Tesla is scrambling to secure its lithium supply. A lithium bidding war is coming. Prices of the “white petroleum” are going higher.
5. A Transformative Announcement Coming in July
Bearing Resources (TSX: BRZ.V; OTC: BRGRF) will close its acquisition of the Maricunga Lithium Project in just a few short weeks. Bearing Resources is positioned to become a major player among the major lithium suppliers.
The 600,000 tons of lithium resource on the property is some of the highest grade any miner has ever seen. And in July, investors may find out Bearing resources has even more of it. The resource update may prove that the lithium brine below the salt flats is double, triple or even quadruple the original estimates.
The Right Company to Profit from the Lithium Boom
Most investors are playing the lithium boom wrong. And they could find their investment blowing up in their faces.
Not all lithium is created equal. It’s the high-grade lithium battery makers that Tesla and China crave. They cannot use low-grade lithium.
Low-grade lithium miners have a limited sales channel. That’s because their low-grade supplies cannot feed the real lithium frenzy – battery storage.
Bearing Resources Ltd. (TSX: BRZ.V; OTC: BRGRF) is sitting on one of the highest-grade lithium finds in history. Best of all, it has some of the lowest production costs in the industry.
And Bearing Resources will have no problems selling it. CEO, Jeremy Poirier already has a relationship with one of the biggest lithium consumers – Tesla. And when Bearing Resources updated resource report is announced, other lithium buyers could soon be banging on Bearing Resources’ door.
Today, high-grade lithium like Bearing Resources’ 600,000 tons is selling for $9,100 a ton. Lithium demand growth is accelerating and outpacing growth in supply.
A squeeze is coming. Companies like Tesla and even China are already securing access to the 21st century’s most precious metal.
This $20 million company is sitting on the world’s highest-grade source of undeveloped lithium. And 600,000 tons of lithium is just the start. The new resource report could show that Bearing Resources has 1.5 million to 2 million tons.
It’s an exciting time for investors. Lithium is the future of energy. And Bearing Resources Ltd. (TSX: BRZ.V; OTC: BRGRF) is the future of lithium production. The lithium boom is worth billions. And Bearing Resources is in a great position to potentially capture a big part of it.
Here are 10 other companies in the space worth watching:
Delphi Automotive (NYSE:DLPH): Delphi is a world class supplier of technologies for the automotive and commercial vehicle market.
Currently, Delphi is investing in driverless car technology and has successfully tested driverless vehicles. We like Delphi as a mid-term to long-term play as it is at the core of this breakthrough technology.
Magna International, Inc. (NYSE: MGA): A division of this Ontario based company, Magna E Systems, produces innovative complete-vehicle solutions and integrates components and systems for electric and hybrid cars. As the electric car boom continues, it will be a company to watch.
Sherritt International Corp. (TSE:S): Sherritt’s, one of Canada’s biggest Nickel and Cobalt miners is set to profit from the current battery boom. Its two top resources, Nickel and Cobalt are in strong demand by the electric car industry and Sherritt is one of the top players in this sector.
Innergex Renewable Energy Inc. (TSE:INE): Innergex Renewable Energy Inc. is an independent renewable power producer. The Company is a developer, owner and operator of renewable power-generating facilities with a focus on hydroelectric, wind power and solar photovoltaic (PV) projects. We believe Innergex is a steady player, yielding a strong dividend for the income investor
Boralex Inc. (TSE:BLX): Boralex Inc. is a power producer that develops, constructs and operates renewable energy power stations. The Company’s segments include wind, hydroelectric, thermal and solar. We like the company because of its diversified global assets. Boralex has posted strong gains so far this year and we expect the rally to continue.
Pretium Resources (NYSE:PVG) (TSX:PVG): Major catalyst on this one as the British Columbia Brucejack mine is ready to launch operations just two years after getting the environmental green light.
Royal Nickel (TSX:RNX): While investor attention is focusing on Lithium and Cobalt, nickel has been overlooked, and while this stock has fallen significantly, a boost in nickel prices could trigger a strong rally in this stock.
Plug Power Inc (NASDAQ:PLUG): Plug Power Inc. is one of the most respected providers of alternative energy technology, Plug Power Inc. is a company to watch as energy storage tech continues to boom. This company’s fuel cells will benefit hugely from ethical cobalt production, using cobalt as a replacement for platinum-activated catalysts which are far more expensive.
Vale SA (NYSE:VALE): Being one of the largest producers outside of the Democratic Republic of Congo, this Brazilian mining giant produced over 5,200 tons of cobalt in 2016 from Canadian sites in Ontario, New Caledonia and Manitoba. We see Vale as one of the best run cobalt miners out there.
AES Corp. (NYSE:AES): AES is one of the biggest names in energy storage, the major bottleneck in energy at this moment in time. Next to battery giants Tesla and Panasonic, we see AES as the most influential and innovative battery manufacturer
By Charles Kennedy
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