The lithium stocks on our list have developed into attractive acquisition candidates
SmallCapPower | November 29, 2021: Lithium will become even more important in the next 5-10 years as demand for elective vehicles and phones/tablets continues to expand and the need for rechargeable batteries increases. The growing demand for these products will require more production of lithium. Today we’ve identified four promising lithium stocks that top takeover targets based on the potential of their projects.
*Share price data and other metrics as of November 26, 2021
Lithium Americas Corp. (TSX:LAC) – $45.16
Lithium mining
Lithium Americas explores for lithium deposits. It owns interests in the Cauchari-Olaroz Project located in Jujuy province of Argentina. The project in currently in development targeting first production by 2022 and is expected to have an operating cost of $3,600/LT and EBITDA of $308 annually. LAC is also developing the Thacker Pass project located in north-western Nevada, the largest lithium resource in the United States. Construction on the project is expect to begin in the second quarter of 2022. A feasibility study was completed that indicated a 120 ktpa (Phase 1 and Phase 2) capacity.
- Market Cap: $5,426.8M
- 7-Day Return: -4.7%
- 30-Day Return: +38.5%
- YTD-Return: +182.6%
- 7-Day Average Trading Volume: 770,990
- 30-Day Average Trading Volume: 860,040
Frontier Lithium Inc. (TSXV:FL) – $1.71
Lithium exploration
Frontier Lithium is an emerging lithium mineral and chemicals company focused on the development of its 100%-owned PAK Lithium Project, which encompasses approximately 26,774 hectares located 150 kilometres north of Red Lake in northwestern Ontario. The Company is aiming to produce battery-grade lithium hydroxide and other chemicals to the growing electric vehicle and energy storage markets in North America as well as premium mineral concentrates supplier for high-quality glass manufacturers.
- Market Cap: $337.1M
- 7-Day Return: +23.0%
- 30-Day Return: +71.0%
- YTD-Return: 368.5%
- 7-Day Average Trading Volume: 353,800
- 30-Day Average Trading Volume: 319,600
Cypress Development Corp. (TSXV:CYP) – $2.08
Lithium exploration
Cypress Development is a Canadian advanced stage lithium company, focused on developing its 100%-owned Clayton Valley Lithium Project in Nevada. Work completed by Cypress led to the discovery of a world-class resource of lithium-bearing claystone adjacent to the Albemarle Silver Peak mine, North America’s only lithium brine operation. Results of a positive Pre-Feasibility Study for the Clayton Valley Lithium include: a Probable Mineral Reserve of 213 million tonnes averaging 1,129 ppm Li based on cut-off grade of 900 ppm Li, average annual production of 27,400 tonnes per year LCE, mine life for PFS of +40 years, lithium carbonate price of $9,500 per tonne, cash cost of US$3,387 per tonne LCE, and US$1.03 billion NPV at 8% discount rate, after-tax basis.
- Market Cap: $265.6M
- 7-Day Return: -9.6%
- 30-Day Return: 13.7%
- YTD-Return: 136.4%
- 7-Day Average Trading Volume: 463,990
- 30-Day Average Trading Volume: 595,720
Arena Minerals Inc. (TSXV:AN) – $0.53
Lithium exploration
Arena Minerals, a copper and lithium exploration company, engages in the acquisition, exploration, and development of mineral properties in South America. It holds interest in the Atacama copper property covering an area of approximately 7,061 hectares located within the Antofagasta region of Chile. The company also owns Antofalla lithium brine projects, which cover an area of 4,000 hectares located in Salar de Antofalla, Argentina. Arena Minerals is led by a team with undeniable expertise in lithium processing, which has successfully advanced and brought several lithium projects to production.
- Market Cap: $210.1M
- 7-Day Return: -11.7%
- 30-Day Return: +58.2%
- YTD-Return: +1,666.7%
- 7-Day Average Trading Volume: 2,261,460
- 30-Day Average Trading Volume: 2,446,140
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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