CATL the biggest player in the EV making car battery business and the company that creates car batteries for Tesla, that’s right, TESLA, and CATL just bought 8% stake in a company called Neo Lithium.
Elon Musk at his Quarterly called on mining companies to step up their game and if the could produce Nickel ethically than Tesla would give them a long term contract, of course we all know the story and Gigametals stepped up to the plate and on September 11th there were headlines stating the two were in discussions.
That being said Elon Musk has called Nickel the new Gold, well if Nickel is the new Gold lithium than is the new Silver because if it is, Neo Lithium is in a serious position to take advantage of a huge deposit of lithium in Argentina at the Tres Quebradas Lithium Project (“3Q Project“) in Catamarca Province, Argentina.
But the biggest news out of all that is that CATL has invested in Neo Lithium and CATL is the worlds biggest ev battery company and they make batteries for Tesla, although the deal must be approved by the TSXV and the customary approval by the Government of the people republic of china, I’m guessing with our planet being in a polluted mess and societies willingness and need to advance EV production to save our planet and our finance minister (Kathleen McKenna) talking about advancing the green agenda, it should be a no brainer…so what am I missing here?
Would CATL invest in a dead mine or is the mine ripe for the picking.
Then after digging I found that we should look at who else is backing NEO lithium, pause, and really think about this. I’ll mention who that company is after taking an overall quick view of the details of the purchase.
Details of the deal goes like this:
CATL are to buy 10 million shares at .84 cents, worth over 8 million dollars.
They’ll own 8% equity in the company and have a right to retain the 8% equity through future equity options.
They’ll have seat on the board and in technical planning to oversee preparation of final DFS. the Company together with the technical assistance of CATL, will finish the Definitive Feasibility Study (“DFS“) in order to define the precise financing requirements for the 3Q Project.
The mine has over 20 000 metric tons of lithium brine with expansion possibilities of 40 000 metric tons per year.
Ok, so who’s the other backer? Its none other than investing Goliath Blackrock Corp.
Blackrock (BLK) is an important shareholder in Neo Lithium and blackrock has assets of over 7.4 trillion dollars, its shares trade, at the time of this article at 561.73$! This is a global beast of a company, there’s no reason to continue to discuss Blackrock because they started out in 1988 and they are one of the biggest companies globally with advanced A.i. which aids the company in its trades or forward views, go take a look at the YouTube videos I made on “OMG, What did CATL just buy” and then watch the playlist on them and you’ll understand.
Now back to Neo Lithium, if you look at Yahoo finance, in the earnings for Neo Lithium, it states that Neo Lithium was negative 11 million in earnings in 2016 and 2017 and then in 2018 it had positive earnings of say 5 million according to the column graph and in 2019 they had earnings of 1 million…this is huge, they went from 2016/2017 of negative 11 million earnings to 2018 positive earnings and 2019 positive 1 million in earnings.
So the question remains…what am I missing?!
Where there’s smoke there’s usually fire…so I dug deeper and I found out, they had financing and warrants totalling 45 million dollars in November 2017 and as of January of 2019 they have a pilot plant operational and producing lithium carbonate (battery ready and technical) and aims to maintain a 3 to 4% production of quality lithium brine from the project as it moves closer to full development.
Neo Lithium is amongst the top 5 largest lithium brine deposits and top 3 lithium brine grade companies in the world, the lowest combined sulfate and magnesium impurity’s worldwide which decreases costs and sits in Argentina’s lithium triangle, with a tax stability agreement with federal government for 30 years, no inhabitants, fully permitted up to construction.
lithium prices are to increase in 1 or 2 years as demand is set to increase 3 to 5 times.
Important Key developments for Neo Lithium:
2019 September Pilot plant achieves 99.1% successful production of lithium carbonate (battery ready and technical) in its first batch.
2019 October Creation of the lithium industrial park for future production of plant.
2020 MARCH PRODUCTION of lithium carbonate 99.6% (battery ready and technical).
2020 SEPTEMBER CATL Strategic investment.
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