March 19, 2018 A lot has been made over the past few days about potential takeover speculation surrounding Altura Mining (ASX: AJM OTC: ALTAF). Since Wednesday, AJM stock is up 23% and the twitterverse has been very active debating the takeover talks. The company also put out a press release addressing the speculation, confirming that… Continue reading Acquiring Altura
About two weeks ago, CATL (the largest battery maker in China) purchased a very large stake (36.6M shares) in North American Lithium (NAL) making it a controlling stakeholder (over 90%). We first heard about this investment when we had attended the PDAC conference in Toronto two weeks ago. It was already big news then and… Continue reading What’s Happening Up North? Our Canadian Lithium Market Update
March 13, 2018 Summary: We were one of the first to call that Consolidation is on its way in our 2018 outlook. Since then, many sites and analysts have also predicted it will happen. This following article is the first of a multi series focus on consolidation in the lithium space. Background: … Continue reading Consolidation Part I
March 7, 2018 Summary: On February 26th, Morgan Stanley analysts came out with a very bearish report on Lithium entitled “The Long Term Pain of New Supply.” Their belief is that Lithium prices will fall by 45% by 2021. They downgraded Albemarle (ALB) and Sociedad Quimica y Minera (SQM) as well as really the entire… Continue reading Our Response to Morgan Stanley’s Lithium Research
March 5, 2018 We’ve got a special news update coming to you from PDAC 2018 in Toronto! To kick things off, we’ll start with the topic of the week: Morgan Stanley’s bearish outlook for lithium. The company put out a report downgrading Albemarle, stating that they believe the market will be in oversupply and… Continue reading Earnings, Pilbara’s bold move, and the Morgan Stanley conundrum
March 1, 2018 The Prospectors and Developers Association of Canada (PDAC) will be hosting their annual conference in Toronto starting this weekend. The annual PDAC Convention is regarded as the premier international event for the mining industry. In past years, it has attracted more than 25,000 people from 125 countries. We will be… Continue reading PDAC Conference This Weekend – March 4-7
March 1, 2018 Below you will find our transcript of Albemarle Corporation's Q4 2017 earnings call. These are our personal notes posted directly after the call. As such, please excuse any incomplete sentences/questions, or missed words. It is not to be taken as a verbatim transcript. CFO: Ricardo Ramos CEO: Patricio de Solminihac Highlights Net… Continue reading SQM Q4/FY 2017 Earnings Call
February 28, 2018 Below you will find our transcript of Albemarle Corporation's Q4 2017 earnings call. These are our personal notes posted directly after the call. As such, please excuse any incomplete sentences/questions, or missed words. It is not to be taken as a verbatim transcript. CFO: Scott Tozier CEO: Luther Kissam Highlights 2017 Adj… Continue reading Albemarle Q4 2017 Earnings Call Transcript
Published on February, 26 2018. Updated on March 5th, 2018 Summary: Up until 2017, the lithium marketplace was an oligopoly, controlled by the big 4 companies. Even now, Albemarle (ALB), Sociedad Quimica y Minera de Chile (SQM) , FMC Corp (FMC), Tianqi and Ganfeng have produced 3/4 of the world’s lithium supply. Furthermore, over… Continue reading All Encompassing Junior Miners Spot
February 22, 2018 With FMC having announced earnings last week, we are now turning our attentions to SQM and Albemarle, who are set to report over the next week. Here, we take you through what we are keeping an eye out for in their calls. First up is Albemarle (ALB), who reports on February 27,… Continue reading Albemarle and SQM Q4 earnings preview
Over the past week, the Lithium and EV related sector had many sensational announcements. Here are few of the ones that really caught our attention and our key takeaways on what occurred. Pilbara minerals came out with their stage 2 PFS which “paved the way” for a major expansion of the 100% owned Pilgangoora… Continue reading All The Lithium News That’s Fit To Print
February 15, 2018 Given that most of our readers follow FMC primarily for their lithium business, we decided to recap the earnings for this segment. In this post we look at their financial performance and review a few soundbites provided by the company in their discussion of competitors, "high cost spodumene" producers, and their outlook… Continue reading FMC’s 2017 earnings analysis and sound-bites
February 12, 2018 Last week was a bloodbath across the markets, with the Dow having two days of being down more than 1,000 points in the same week! Lithium stocks were not excluded in this sell off as they continued on in correction mode. Given this turmoil, it's more important than ever for market participants… Continue reading Project capital, mainstream coverage, and… the end of gas stations?
February 8, 2018 The SQM deal, combined with the overall market volatility, has dramatically affected the Lithium financing market. Only a month ago, it seemed any Lithium junior with a decent grade project could easily and quickly secure funding. We believe this has now changed. Many advanced stage companies secured their funding and are through… Continue reading The Fight For Financing In Today’s Market
February 5, 2018 Panasonic was one of the first Lithium related companies to announce earnings in 2018. It should be of great interest to Lithium investors since the company is a major customer of Albemarle (ALB). Thus, it should make ALB and overall Lithium investors feel excited that the company increased its “outlook after third-quarter… Continue reading Panasonic, EV Announcements, Oil & Beyond.
January 28, 2018 As we recently noted in our SQM’s New Deal & The Lithium Market Sell off, SQM finally ended an almost four year long dispute with the Chilean Government which allows the company to dramatically increase production from around 50-60K tonnes per annum (tpa) today up to 216,000 tpa through 2025. We sat… Continue reading Pilbara Mineral’s CEO Ken Brinsden On SQM’s New Deal
January 25, 2018 Having grown up in North Carolina, one thing Shrey is proud of (and reminded of every time he see’s an NC license plate) is the fact that the Wright Brothers conducted the first sustained flight of an aircraft in Kitty Hawk, North Carolina. Fast forward over a hundred years later, we now… Continue reading Electrifying Airplanes
As we always do, here we take out one day to look at the greatest stories of the last week. The clear winner of this past week was the SQM and Corfo agreement. We covered this extensively already in our post The SQM Deal and The Lithium Market Sell Off. If you haven’t done so… Continue reading Solid State Batteries, SQM’s Deal & a new LIT Hedge Fund.
We had the opportunity to sit down with the management of Piedmont Lithium (ASX: PLL / OTC: PLLLY) to learn more about their background, their company and their plans for the future. Below are the highlights of our conversation with the CEO of Piedmont, Keith Phillips. January 22, 2018 The Lithium Spot: The company… Continue reading Interview with Piedmont Lithium’s Keith Phillips
Summary: SQM, one of the leading Lithium producers in the world, reached a deal with the Chilean Government to dramatically increase their production. The increase in production will be felt throughout the industry for the next 5-10 years. Lithium stocks sold off heavily due to fears that oversupply would hit the market. SQM’s… Continue reading SQM’s New Deal & The Lithium Market Sell Off
It was another busy week in the Lithium and EV industry. Luckily, we’re here to recap all of the relevant news items for you: CES 2018. Last week's headlines were dominated by CES 2018 in Las Vegas. Here are a few of the EV related news items: Kia announced that By 2025, they will adopt… Continue reading CES 2018, America, and the Autos!
Having trained under the budding value investing program at Fordham Gabelli School of Business, we are proud to think of ourselves as value investors. We look for companies which have strong earnings potential, great management, strong resources, and numerous upcoming catalysts, with “Mr. Market” not fully incorporating these attributes into the market price. We like… Continue reading 4Q17: 4 Value Investing Takeaways
Lithium investors should be hoping the price of oil continues to rise and here’s why. Current Oil prices have reached their highest point since the end of 2015 settling in around ~$63 dollars (USD). According to a number of new online pieces, oil prices could potentially reach ~$80 (USD) in 2018. Higher oil prices… Continue reading Oil Prices and Lithium?
It was another busy week in the Lithium and EV industry. Luckily, we're here to recap all of the relevant news items for you: Lithium Company News- While mining companies’ updates, press releases, and presentations can all be found in our Lithium News Feed as soon as they hit the tape, here are a few of the… Continue reading Project Updates, Consolidation, and… Cryptocurrency Mining?
Summary: Given the world's ever growing appetite for lithium, new mining entrants are turning the US to look for the next big lithium projects. A dramatic reduction in tax rates will enable projects with less economically favorable resources to compete at similar margins. The US government, led by President Trump is making a big push… Continue reading Will new policies bring Albemarle’s North Carolina mine back online?
Now that the holidays are over, it’s time to catch up on the biggest stories that have occurred over the last two weeks: The EV boom which in turn fuels the Lithium boom is best summed up in a piece by the Economic Times that stated “Car-owning households soared from 8% to 80% in… Continue reading The Post Holidays Lithium Catch Up
December 21, 2017 We attended an investor presentation by Kidman Resources this past week. Anyone closely following the lithium space has undoubtedly heard of Kidman over the past few months once the company signed a Joint Venture agreement with Chilean lithium major SQM. To help de-risk their lithium operation, and ensure its long term viability,… Continue reading Thoughts on Kidman Resources Presentation
With Bitcoin exploding in the charts, we thought we’d explore the topic of which was a better investment right now: Lithium or Bitcoin? Let’s start with the returns year to date- Bitcoin is up over a whopping 1600%. While lithium miners, electric vehicle manufacturers, and battery producers didn’t have quite an insane year, the LIT… Continue reading Bitcoin v. Lithium
Another busy week in the Lithium and EV space, luckily we’re here to recap it for you! Here are the biggest headlines from the past week: Legendary investor Jeffrey Gundlach believes commodities are the best buy for 2018. Bacanora Minerals released a feasibility study which valued their project at $1.25B, and estimated operating costs at… Continue reading WNU: Alibaba, Tesla Rivals, and Legendary Investors
As 2017 comes to a close, we outline some trends which we see occurring in 2018. They are as follows: Consolidation is coming! In 2018, we will see at least one additional JV from a major leading producer and we will likely see at least one purchase of another Lithium company. Consider the… Continue reading Our 2018 Outlook
Our weekly news update on the Lithium sector is here! Tesla received orders this past week from two prominent worldwide companies - Sysco foods and Anheuser Busch - for its new semi truck. As a reminder, the Lithium boom is heavily based off of demand for Lithium Ion Batteries for Electric Vehicles. Imagine what the… Continue reading WNU: Li Financings, Li 2018 Projections and New Tesla Semi Orders
As the year comes to a close, we are excited to present our major thoughts from the past year in the Lithium industry. Electric Vehicle (EV) Industry Tipping Point: For those readers just joining us in the Lithium boom, the EV industry is one which we closely follow since lithium demand is largely… Continue reading 2017 in Review
After another busy week in the lithium space, check out our summary below: Nemaska Lithium confirmed first delivery of battery grade lithium hydroxide from their Whabouchi mine concentrate. This is a great milestone, and we look forward to more positive newsflow out of them. Check out what the CEO had to say in our recent… Continue reading Displaced Oil, Best Resources, Li Milestones and more!
There was much to keep track of over this past week. We've got you covered with all the latest happenings and with what we thought were the top headlines of the last week. There is much speculation about Rio Tinto’s interest in purchasing a stake in SQM. Speaking of SQM, the company reported earnings this… Continue reading Weekly News Update: Uber, LAC, ALB, SQM, Tesla, and so much more!
SQM, one of the world’s largest Lithium producers, reported earnings on Wednesday and held their investor call yesterday (Thursday). Below are some learnings from their earnings report and post earnings call. Whether you’re invested in SQM or not, it’s important to watch closely what SQM reports on a quarterly basis since they are such a… Continue reading SQM 3rd Quarter Earnings Overview
From Tesla's new unveiling, to a massive Chinese IPO, it was yet another busy week in the lithium space. Here is a collection of the most interesting reads: A new piece out of MIT analyzes whether metal raw material supplies will limit battery expansion. Volkeswagen announced that it would spend $40B over the next five… Continue reading Li Newsfeed, Chinese IPO, Auto Announcements and More!
We are excited to present this interview with Guy Bourassa, CEO of Nemaska Lithium. Nemaska Lithium will be one of the next junior miners to enter full-scale production. As such, we were particularly interested to learn more about Guy’s views on Supply, Demand, Electric Vehicles, China and much more! The Lithium Spot: Much has been… Continue reading Interview with Nemaska Lithium CEO, Guy Bourassa
Our latest news update is here! It was another super busy week with stories ranging from FMC to LAC to Tesla to Opel. Yet another car company, Opel, announced their entrance into the Electric Vehicle (EV) space and they plan on releasing a new EV in every one of their current models by 2024.… Continue reading Weekly News Update: 3Q Earnings Updates, LG Chem MOU and much more!
Pilbara Minerals is a new junior miner currently constructing the Pilgangoora lithium project in the Pilbara region of Western Australia. They are one of the next miners to enter the market, currently on track to begin commissioning in Q2 2018 with one of the more favorable hard-rock projects around. Given the potential of their company… Continue reading Ken Brinsden – Leading WA’s Next Big Miner
FMC hosted it’s 3Q earnings call and we’d like to review with our readers what we learned from the call. In addition to being one of the larger lithium producers, by being the first to report earnings, FMC’s results and commentary are important because they provide some read through to other lithium producers like Albemarle… Continue reading FMC – Q3 Earnings Update
It was another busy week in the Lithium world! We’ve got you covered with all the latest updates in our weekly news update below. Greenpower energy is halted until Wednesday pending an update on their lithium-tantalum expansion. Further evidence of companies looking to enter the lithium space. The Economist believes that 2018 will be a… Continue reading News Update- LIT Shuffle, New Entrants, and Famed Investors
Much has been made of the LIT ETF, both positive and negative. But whether you love or hate the fund, there’s no denying that it has quickly become a popular ETF, with close to $1B in net assets. Additionally, it is the only fund, active or passive, that provides exposure specifically to the full lithium… Continue reading Analyzing the LIT ETF Changes
It was another busy week in the Lithium world! We’ve got you covered with all the latest updates in our weekly news update below. The London Metal Exchange (LME) is planning on adding contracts for Lithium and other related battery metals. Currently, Lithium does not trade over any exchange and prices are set in… Continue reading Weekly News Update: Another Busy Week!
Summary: Of the Junior miners, who will most likely come online for the first time in 2019? How much cash do they have on hand? Who has financing secured? Without funding, Junior miners won’t be able to start construction on a mining project. Essentially, cash is a good proxy to gauge positive progression… Continue reading Our 2019 Lithium Supply Outlook
It was a busy news week, given the increasing coverage of the electric vehicle and ancillary markets. Here is a roundup of some of the more interesting stories: With all of the bullish sentiment surrounding EV adoption, CNBC presented the bear case in this article. Citi came out with a report naming the next lithium… Continue reading News Update- WSJ Leads the Pack
The Lithium Spot presents an interview with Brian Blum, Business and technology journalist, who recently came out with a fantastic book on an Electric Car company (Better Place) which “raised nearly a billion dollars” (from 2007-2008) on high expectations. Yet, within just a few years of that (around 2013) the company went bust. The book,… Continue reading Interview With an EV Commentator
The latest news in the lithium space over the last week: Oilprice.com featured an article on a new challenger to the Lithium Ion Battery. The new technology is only in development and should not be seen as a major challenger just yet. It goes without saying, we at The Lithium Spot are closely monitoring any… Continue reading Weekly News Update: Increasing Lithium Coverage & Continued EV Uptake
It’s been another busy week in the lithium and supporting industries. Here’s a roundup of the biggest stories: Not so fast! Galaxy Resources has said that it is in talks with Tesla battery supplier Panasonic to supply lithium for their batteries but denies having reached any agreement. Read the full story by Barron’s here. As… Continue reading Weekly News Update: EVs Drive Lithium Coverage
Lithium Americas is one of the more followed potential new entrants to the lithium industry. Over the last couple of months, the stock has been on a wild ride, rising over 100%, and now pulling back 20% from the highs. While we were hoping to get this analysis out when the stock pulled back to… Continue reading Lithium Americas- The Hype is Real
Welcome back to our weekly newsletter! This week, once again, the Electric Vehicle market reached historic heights. As we've done in previous weeks, we broke out our weekly news update into two sections. The first is all the latest news on the Electric Vehicle space and the second on Lithium Miners. Electric Vehicle Updates: … Continue reading The EV Craze Reaches Historic Heights
With Q3 2017 coming to a close, we thought we’d look back on the quarter, since it has certainly been a great one for existing and potential lithium producers. Many of the names, particularly the non-Aussie producers in the space were already enjoying a great year coming into July. But that was nothing compared to… Continue reading Q3 Lithium Rally
It was a busy and exciting week within the Lithium world! We’re excited to bring you all the latest and greatest here: Green car reports wrote an interesting piece debating whether a country as large as China could successfully transition into an all EV market. Read the full article here. Segue Resources released interesting… Continue reading Weekly News Recap
This past week was one of the busiest weeks in the Lithium & Electric Vehicle Space that we can recall. As a result, we’ve broken our summary and analysis into two sections, Electric Vehicle Updates and Lithium Company News! Electric Vehicle Updates: The highlight of the week belongs to VW’s CEO who “vowed” to offer… Continue reading The Lithium Spot Weekly News Recap
Background: The Lithium market has historically been an exciting investment opportunity since it has been dominated by a classic Oligopoly structure. An oligopoly is where a market is controlled by only a few companies. Oligopolies usually make for exciting investment opportunities since they often come with preferable pricing for their products and thereby strong… Continue reading The Lithium Cartel
It was a busy and exciting week within the Lithium world! We’re excited to bring you all the latest and greatest developments from the past week here: Major auto-makers join the budding Formula E circuit as pressure grows to ramp up electric-car development. Read the full story here. Bloomberg released another article about potential… Continue reading Weekly News Update – Governments Hop on the Bandwagon
Price (as of close, 9/6/17): A$.165 We believe that Altura, Ticker: AJM (ASX) or ALTAF(OTC), is one of the more undervalued Lithium stocks. In the following post, we strive to present our analysis on the the company and our outlook for the stock. Investment Thesis Altura Mining is an under-followed miner that is targeting production… Continue reading Altura Mining- Lithium in the Rough?
It was a busy and exciting week within the Lithium world! We’re excited to bring you all the latest and greatest here: There were many electric vehicle updates. Some of the most exciting ones were as follows: BMW’s mini generated a lot of buzz. Cummins announced a heavy duty electric truck which… Continue reading Weekly News Update – The EV Craze Continues
Orocobre reported results yesterday and Mr. Market, in the words of famous value investor Benjamin Graham, was very pleased! The stock was up over 14% as a result. We’d like to give our readers some of our high level thoughts after reviewing their announcement: The first item which stood out to us, was that… Continue reading Orocobre Earnings Summary
Welcome to our weekly Lithium news update! Here are some of the interesting stories that popped up over the past week: Ford is in talks to launch a joint venture electric car company in China. The article highlighted that Ford has said previously that they plan to offer “electric versions of 70… Continue reading Weekly Lithium News Update Has Arrived!
SQM announced 2nd quarter earnings and there were a lot of deep insights which we would like to share with our community of readers. Here are some of our thoughts and analysis after reading all of their press releases and listening to the earnings call: Annual Demand growth is now expected to be between… Continue reading Lithium Trends – Our Thoughts Following SQM’s Earnings Call
All the latest and greatest news from this past week on Lithium found here! Uranium Resources Inc. said it is changing it's name to Westwater Resources to reflect it's change in strategy to focus more on the lithium industry. “As our lithium business grows to support the rising demand for energy storage, we believe that… Continue reading Weekly News Roundup
Patrick Highsmith, CEO of Pure Energy Minerals, is a seasoned resource company professional with over 25 years of experience in exploration, operations, business development, and executive roles for various companies, including: Rio Tinto, BHP Billiton, Newmont, and Lithium One. Mr. Highsmith has evaluated and worked on more than 250 projects around the world. His project… Continue reading Patrick Highsmith- Interview with a Lithium CEO
All the latest and greatest news from this past week on Lithium found here! BHP Billiton revealed plans to transform itself into one of the world’s biggest providers of nickel sulphate last week. BHP Nickel West president, Eduard Haegel said “We believe there is going to be a very large increase in nickel sulphate demand… Continue reading Weekly News Roundup
Albemarle Corp. released earnings earlier this week. And now that the market has had a couple of days to digest the results, we thought we would publish an update on the company. Here are a few items of interest from the press release: Sales growth of 10% year over year on the back Lithium &… Continue reading Albemarle Post Earnings Update
All the latest and greatest news from this past week on Lithium found here! The biggest news from this past week was the JV between Mazda and Toyota of which one of the areas of focus is Electric Cars. More on this here: FMC, one of the companies that makes up the current Lithium Oligopoly,… Continue reading Weekly News Roundup
With all of the Joint Ventures (JV) occurring in the lithium industry, we thought it would be helpful to delve into the topic and provide a framework with which to understand them. In this post, we interview Professor Benjamin Cole of Fordham University, who has direct experience with JVs both as a practitioner and an… Continue reading Interview with a Joint Venture expert
Here it is! All of the latest and greatest from the Lithium sector from this past week can be found below: Shell CEO made a couple of bold statements by calling a peak in oil coming in the late 2020’s and said his next vehicle purchase would be an EV. Full article here. Matt Bohlsen… Continue reading Weekly Lithium News Update!
Current Price (as of close on 7/24/17): $118.60 While there are many sound investments in the Lithium space, we believe Albemarle is a great way to invest in the lithium boom while exposing funds to less risk (Some of the Junior miners that we like and will be covering in subsequent posts will have… Continue reading Albemarle: The Lithium Juggernaut
Here’s all the latest and greatest to occur this past week in the Lithium World! Reuters wrote an article on The Supply Pipeline whereby our Lithium Supply II Analysis was featured. You can find the Reuters article here. This week was notable for purchases and selling of Lithium Stocks. On the bullish side… Continue reading Weekly News Roundup
Welcome back to the weekly news roundup! Below are a few interesting stories in the lithium space from the past week: Tawana Resources announced the results from a Pre-Feasibility Study for their Bald Hill lithium project. The study indicated an initial “starter pit” life of 3.6 years which would allow for an estimated Average EBITDA… Continue reading Weekly News Roundup
When will supply from Junior Miners Come To Market? To best analyze what’s currently going on in the marketplace, we think it is important to look at the supply outlook in three timelines: The short term: June 2017 to Dec 31 2017 The intermediate term: Jan 1 2018 to Dec 31 2018 The longer… Continue reading Supply Part II
Welcome to our first weekly news update on the Lithium space! This past week was a really active one - most interesting of all news was out of Volvo and Tesla. Volvo announced that all cars would be EV or Hybrid by 2025. Additionally, they hope that they will have sold 1M EV’s by… Continue reading Weekly News Round-Up
When conducting research for the White House, it was always a matter of starting out with a source which we all felt was extremely reliable. After all, our message and production would be examined and re-examined countless times by the American public. Similarly, when discussing Lithium Supply, we want to first start by looking at… Continue reading Supply Part I
What does demand look like over the next 10 years? In our opinion, Investors don't need to know precisely what the demand will be over the next ten years, they need to know where the market expects demand to be over the next ten years. Thus, in this post, we will strive to present to… Continue reading Demand
In this post, we outline the major applications of lithium to help give a backdrop for Lithium’s strong demand. Below is a breakdown of these applications, listed in order from highest to lowest usage Ceramics and glass: Heat resistant glass and glass ceramics use large amounts of Li, in aggregate. It reduces the melting temperature… Continue reading Applications of Lithium
In order to delve into Lithium companies, and explore which ones are the most exciting from an investment and strategic perspective, we must start off with a foundation of WHAT is Lithium?! Lithium is an alkali metal that is reactive in the presence of water and oxygen. It is the lightest metal, and least reactive… Continue reading What is Lithium?
The story of this blog begins nearly one year ago for our team. Shrey Patel was a burgeoning analyst working at GAMCO Investors covering the Lithium space. He was following Albemarle Corporation (ALB) and was pitching the company to anyone that would listen. It was clear to him that an opportunity was here for ALB and the greater Lithium space. For Jonah, his brother first mentioned the Lithium space to him as a result of his work for a small investment bank that mainly focuses on the Metals & Mining sector.