Welcome back to a brand new video everyone, in a recent tweet, Elon Musk stated that price of
lithium has gone to insane levels! And Tesla might actually have to get into the mining & refining
directly at scale, unless costs improve. There is no shortage of the element itself,
as lithium is almost everywhere on Earth, but pace of extraction/refinement is slow.
This was swiftly followed on, in their recent earnings call where he added that they’re looking
carefully at all of the raw materials and trying to figure out how they can accelerate the total
amount of raw materials needed to transition the world to sustainability. They are certainly
thinking about it and they think they would have some exciting announcements in the months to come.
These comments have driven agitation in the markets, which resulted in some fake news
regarding Tesla buying out a junior miner, Lithium Corporation, which saw its share price rise by
over 300% in an hour, only to give up those gains on the back of the fake news being disapproved.
Lithium Corp. subsequently issued a press release stating that it had not received
“so much as an expression of interest from Tesla.” And that none of its employees had
left to join Tesla but that Lithium Corp. would be “happy to chat with Elon if he was inclined.”
So in this video, I share with you two top lithium stocks which analysts feel are in pole position
for Tesla’s shortlist of miners should they really want to go down that route. This is a carefully
thought out shortlist with the most logical choices being lithium projects near the Tesla
Gigafactory near Reno, Nevada. The projects have to have water rights, permits and are making good
progress in their pilot phase. Again, this video is not financial advise but just sharing with you
insights on this two potential targets for Tesla for you to have on your watchlist. So you want
to make sure you stick around so you miss out on why these two could be potential Tesla targets.
And so if you hold any lithium plays in your portfolio please drop a like on the video and
let me know what you’re holding in the comments section below. Also turn on the notification bell
so you never miss out on any of these gems from the channel. We are very bullish about
the entire ev supply chain and so most of our recent gems are ev battery minerals – lithium,
graphite and nickel which are all mostly OTC penny stocks or on the Australian exchange,
and so if you need a decent platform to access them, you want to check out Interactive Brokers
where you can buy some of this lithium and ev battery stocks directly from the Australian market
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So check it out from the link in the top pinned comment and see for yourself. Thank you
That said let’s get on with it with our first stop, which is Cypress Development Corp (CYDVF,
TSX: CYP) which is currently sitting at $1.31 per share with a market cap of $190m, which is peanuts
for the worlds richest man Elon Musk. Cypress is sitting up 4.8% on the day and bouncing from its
lows of $1.23 which it hit earlier in the week. And over the last month its share prices is up
1.55%, so relatively flat and undisturbed at current levels. And so should a takeover bid be
announced, we could expect some big movements from current levels. We call these gems early in the
discord and so if you want to get in early on some of these gems, you want to check out the discord
or on Twitter from the link in the description below. So here’s what’s new with Cypress.
Cypress Development (TSX.V: CYP) (OTCQX: CYDVF) is a Canadian based advanced stage
lithium exploration company, focused on developing its 100%-owned Clayton Valley Lithium Project in
Nevada, USA. Work completed by Cypress led to the discovery of a world-class resource
of lithium-bearing claystone adjacent to the Albemarle Silver Peak mine,
which is North America's only lithium brine operation.
So Cypress is advancing its Clayton Valley Lithium Project in Nevada
towards the production of high-purity lithium hydroxide suitable for tier one battery usage.
Cypress Recently Announced Results From Its Lithium Extraction Pilot Plant In Nevada
and some of the key Highlights include:
Concentration of lithium into an Intermediate Solution containing 2,700
ppm lithium with insignificant impurities Lithium extractions from the ion exchange
in the lithium recovery area indicate separation efficiencies
for lithium and major cations exceed 98% Overall impurity removal, specifically, magnesium,
calcium, iron, and aluminum all exceed 99% Work continues at the Pilot Plant evaporation
process stage, to allow the integration of the treatment of the Intermediate Solution to produce
a high-grade concentrated lithium solution, ready for off-site conversion to a final lithium product
Their CEO, Dr. Bill Willoughby, commented that “All primary components of the Pilot Plant are
operating to design. The lithium extraction and recovery areas are meeting our expectations
and they are very pleased with the optimization changes completed so far,
as they are now consistently producing an Intermediate Solution containing 2,700 ppm
lithium with negligible impurities” stated. “Their team is working on their Pilot Plant’s evaporation
process, to allow their Intermediate Solution to a high-grade concentrated lithium solution, which
is their final step on-site, which they expected to be completed and tested in the second quarter.”
So some exciting times ahead as we head deeper into Q2,
and when you look at the list of other Lithium projects in Nevada they are on par with Lithium
Americas with a Preliminary Feasibility Study underway and a pilot plant in place.
Here’s what analysts at Seeking Alpha think about Cypress’s chances with Tesla.
They say Cypress Development is one other Nevada-based miner Tesla could target.
The company’s project is quite advanced, with a Definitive Feasibility Study expected
by the end of the year, meaning the project could be production-ready within two years.
And looking at the company’s Preliminary Feasibility Study,
the output is expected to be around 27,400 tonnes, which is quite likely to be upgraded for the DFS.
And using the production figures from the PFS, the project has an NPV of $1.052 billion. With a
current market value of $208 million, Cypress has only priced in 19.8% of its project NPV, which,
again, should be upgraded in the NPV. This makes it incredibly cheap relative to its size, which,
again using the PFS estimates, would support the production of 2.4 million EVs per year.
Their location and close vicinity to Tesla is an asset to its case.
Cypress also recently secured water rights for its project, which is a rarity, and sets it
apart from other Nevada-based lithium miners, which are targeting sulfuric acid leaching.
This is a major de-risking announcement and bodes well for the company.
If Cypress were to have lost the water rights this would have been a massive blow to the company
which would have placed them in the category like most of Clayton Valley. No water = no production.
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Next up to our number 2 lithium penny stock for today which is Lithium Americas Corp (LAC) which
is currently sitting at $25.88 per share with a market cap of $3.4bn. Similarly, LAC is bouncing
from its recent lows of $24.15 being down 6% in the last 5 days and over a month and the last 6m
period, it is sitting well below its highs of $40 per share which puts it in deep value territory
and a similar position as Twitter before the Elon Musk offer. So here’s what’s new with LAC.
Lithium Americas Corp. operates as a resource company in the United States and Argentina.
The company explores for lithium deposits and owns interests in their
Cauchari-Olaroz project in Argentina; Thacker Pass project located in north-western Nevada;
and Pastos Grandes project located in the Salta province of Argentina.
Lithium Americas recently announced a US$10 Million Strategic Equity Investment
in Green Technology Metals by entering into an agreement to acquire shares of
Green Technology Metals Ltd. (ASX: GT1) (“GT1”) in a share placement. Green Technology Metals
is a North American focused lithium exploration and development company
with hard rock spodumene assets in north-west Ontario, Canada (“Ontario Lithium Projects”).
Jon Evans, Lithium Americas’ President and CEO said that “Green Technology’s team
brings a strong track record of lithium exploration and resource extraction,
which fits well with Lithium Americas’ expertise in chemical processing.
“And with this initial investment, they look forward to working closely with Green Tech
to help accelerate the development of a North American lithium supply chain.”
Analyst said the company’s Thacker Pass project is just a few-hour drive from Tesla’s Gigafactory 1,
their flagship battery production site. The company also aims to enter production
by the end of the year at its Argentinian project. And with two more quality projects,
it stands to become one of the largest lithium producers by the end of the decade.
So some very very interesting and mindblowing prospects ahead for these penny stocks
but only consider getting in if the price is right for you and if you fully understand the risks.
This video is not financial advice, a buy or a sell recommendation, but is meant to bring some
new and exciting penny stocks to your attention for you to do your own research.. As always I
would love to hear from you, so please let me know your thoughts on these top penny stocks
in the comments section below and what other penny stocks are catching your eyes lately.
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Thank you so much for being here and I look forward to have you in my next video. Thank you