The lithium stocks on our list have seen their share prices sink more than 30% during the past quarter
SmallCapPower | July 9, 2018: The battery metals sector has seen much bullish sentiment over the last few years, driving the lithium price higher by 45% in 2018. However, due to fears of oversupply, the lithium price has fallen from its peak of US$156.80 in January 2018 to US$123.74 today. The decrease in price has had a large impact on the share prices of lithium stocks such as the ones we’ve identified today, which has potentially created a value opportunity.
Power Metals Corp. (TSXV:PWM) – $0.33
Specialty Mining & Metals
Power Metals is a hard rock lithium explorer focused on its flagship Case Lake property, comprising 38 mining claims for 7,136 Ha, located 100 km north of Kirkland Lake, Ontario. An all-seasons access road encircles the property. Although limited to 83 current drilled holes, work-to-date indicates that spodumene pegmatites may occur throughout the property in dykes hosted by domes. There are nine dome targets on the property, and only one has been drilled to-date, the Henry Dome, which hosts the Northeast and Main Dykes. Economic near-surface lithium and tantalum grades have indicated the potential for a significant open-pit hard rock deposit.
- Market Cap: $30.6 Million
- Return since 2017: 89.1%
- Q2/2018 Return : -48.5%
Far Resources Ltd. (CSE:FAT) – $0.25
Diversified Mining
Far Resources, an exploration and development company, is advancing its Zoro project located in the Snow Lake region of Manitoba. In 1956, the lithium deposit was considered an historic “reserve” based on the drilling of 1.8 million tonnes grading 1.4% Li2O to a depth of 305 m.
- Market Cap: $25.3 Million
- Return since 2017: 200.0%
- Q2/2018 Return : -47.1%
Nano One Materials Corp. (TSXV:NNO) – $1.20
Commodity Chemicals
Nano One Materials is developing advanced, low-cost technology for the manufacturing of cathode materials for lithium-ion rechargeable batteries. The cathode market is projected to be US$10B by 2025, which includes electric vehicles (EV), consumer products and energy storage systems (ESS). The Company’s core proprietary technology employs a three-stage process using low-cost raw materials sources (such as lithium, cobalt, nickel) in solution, before driers and kilns finish the reaction. Nano One anticipates its methodology could reduce the cost of equipment and operation while increasing the performance of cathode materials for the full range of battery applications.
- Market Cap: $85.6 Million
- Return since 2017: 252.8%
- Q2/2018 Return: -39.9%
Standard Lithium Ltd. (TSXV:SLL) – $1.29
Lithium
Standard Lithium is a Canada-based company engaged in exploration and development of lithium projects in the U.S. The Company has three deposits, two of which are located in California and one in southern Arkansas. The two exploration projects in California amount to a total space of 70 acres and the Company is expected to complete their Preliminary Economic Assessment in Q3/2018. The Company has a letter of intent for the construction of a pilot plant at its project in southern Arkansas, which is expected to commence Q1/2019.
- Market Cap: $84.6 Million
- Return since 2017: 174.5%
- Q2/2018 Return: -37.8%
To find out more about Power Metals Corp. (TSXV:PWM), please visit the company’s Investor Hub.
Ubika Research/SmallCapPower has received compensation from Power Metals to provide analyst research coverage. For full disclosure please visit here >>
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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