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US: AMLI
CANADA: LI
FRANKFURT: 5LA1
In this Report
The Beating Heart of Net Zero
American Lithium Corp.
US: AMLI
CANADA: LI
FRANKFURT: 5LA1
5 Key Highlights of American Lithium (AMLI):
- Massive Lithium Assets: Two of the largest lithium deposits in the Americas with a combined Net Present Value (“NPV”) from recent economic studies of US$4.76 Billion([1],[2]) and set to grow further
- Strategic Locations: Projects situated in Tier 1 mining regions with excellent infrastructure and community support.
- Solid Economics: Both projects have low costs with Strong Internal Rates of Return and swift payback periods.
- Sustainability: Supportive governments and local communities and Projects that minimize environmental impacts and water useage.
- Proven Leadership That Delivers: The management team has 250+ years’ worth of combined experience in the sector.
Why Lithium Is Critical for Net Zero?
Lithium is transforming the way we interact with our world, and it’s the unsung hero of the clean energy transition.
It’s in your smartphone, laptop, pretty much all your electronics… and also every Electric Vehicle (EV).
Over 50 countries have proposed bans on gas guzzling vehicles and the global adoption of EVs will soon send demand soaring for lithium.
- By 2035, 30% of the U.S. population will no longer be able to buy gas-powered cars…
… and it’s not just the US. Globally, EV sales are skyrocketing:
Last year, 1 in 7 cars sold last year was an EV – a whopping 60% surge from 2021. And each one of those EVs needed – you guessed it – a battery.
- The battery sector currently accounts for ~70% of global lithium demand, and this is expected to grow to 96% by 2040.
- Global lithium production has TRIPLED in the last 10 years – but even this isn’t enough to keep up with the projected demand.
According to the International Energy Agency, we’ll need 4-6 times more lithium by 2030.
That’s a huge opportunity for those rare companies like American Lithium Corp with their large lithium reserves in low-risk jurisdictions.
The global race is on for countries to secure their energy independence.
Countries around the world are scrambling to secure lithium.
- Chinese entities control 33% of its global production
- The two largest producers account for 53% of global production
- Six companies control nearly 80% of all production
- Chile produces 30% of the world’s supply.
Chile recently announced they will be nationalizing their mines to secure their supply.
America is getting desperate; they need a stable supply of lithium.
They have been forced to import lithium at record levels…for now.
The U.S. has only ONE source of domestic lithium production and America will not be able to get to Net Zero without their own lithium made in America.
America is quickly ramping up its EV “Battery Belt” and all of these plants are going to need lithium supplies which American Lithium aims to play a key role.
The US desperately needs a massive supply of domestic Lithium and that is exactly where American Lithium Corp. comes into the picture.
The timing couldn’t be better as American Lithium Corp. has 2 of the largest Lithium deposits in the Americas (and also a massive undeveloped Uranium project which is being being spun out for the benefit of shareholders of record…)
Why American Lithium Corp. (AMLI)?
- Energy Transition: The demand for Lithium, a key component in the lithium-ion batteries used in electric vehicles and renewable energy storage, is set to skyrocket.
American Lithium with its vast lithium resources aims to help ensure that this transition can proceed smoothly and rapidly while securing domestic supply lines
- Economic Security: Lithium is increasingly of critical and strategic importance for a range of industries, including automotive, electronics and energy.
American Lithium will create jobs, economic prosperity and help grow and increase America’s competitiveness globally.
- National Security: Lithium is used in a variety of applications that are critical to national security, including advanced weaponry and aircraft.
American Lithium helps America’s defense capabilities remain strong.
- Made in America: Currently, the U.S. relies heavily on Lithium imports. Developing a secure domestic supply of lithium can reduce this dependency.
American Lithium can help the U.S. become more self-reliant and less vulnerable to potential global supply disruptions.
- Environmental Sustainability: Lithium-ion batteries provide the foundation for cleaner, more sustainable alternatives to fossil fuels.
American Lithium enables the move to a lower carbon world including efforts to reduce greenhouse gas emissions and combat climate change.
The Safe, Stable Lithium Supply([1],[2])
TLC Project – Nevada
- The 2nd largest (M&I) lithium resource in the U.S.
- Massive 50 square KM (20 square mile) near-surface deposit
- 5hr drive to Tesla’s giga-factory
American Lithium Corp’s TLC project is 14th largest lithium deposit in the world, located just outside Tonopah, Nevada.
TLC has the potential to be a 40-year mine, producing 38,000 tons of high-quality lithium each year – that could bring in over a billion dollars in revenue annually.([1])
The unique geology of TLC’s lithium claystone helps keep operating costs similar to other cost-effective deposits.
The Project’s location in the high desert of Nevada is perfect for mining operations: above the water table, privately held water rights; no protected species or plants and nearby infrastructure.
TLC is close to Tesla’s Nevada gigafactory and Nevada’s largest claystone Lithium deposit, which recently received $650M from General Motors.
A recent Preliminary Economic Assessment valued TLC at USD$3.26 billion and set out a strong economic path with clear steps for further development.
Following this positive PEA, American Lithium started a Pre-Feasibility Study (“PFS”) (an initial blueprint for a mine) and is planning to start pilot testing later this year.
As American Lithium Corp. continues to develop TLC, the company’s value is expected to get closer to reflecting the true value of the lithium deposit. The Company’s is current market valuation is just 10% of the combined NPV of its lithium Projects.
Falchani Project – Peru([1])
- One of the largest hard rock lithium resource in the Americas
- Potential to produce battery grade lithium products without the need for additional refining
- Potential for low cost operations
- Excellent infrastructure with plentiful water; low-cost green power supplies; and excellent transportation links.
Falchani is a major lithium deposit at an advanced stage of development with completion of its PFS expected by year-end.
The Falchani mine is expected to run for at least 33 years, producing between 23,000 and 85,000 tons of high-quality, battery-grade lithium per year.
Operating costs for Falchani were estimated in its Preliminary Economic Assessment (PEA) from 2020 to be around USD$4,000 per ton, which is highly competitive compared to other lithium mines worldwide.
The Falchani PEA also gave Falchani a strong but conservative NPV of USD$1.5 billion.
As part of its PFS process, the existing PEA for Falchani will be updated to reflect higher, current lithium pricing; the ability to also produce material by-products and an updated Resource estimate
Falchani is located in Southern Peru, close to the “Lithium Triangle” of Argentina, Bolivia, and Chile. Its proximity to the Two Oceans Highway linking Southern Peru and Brazil and their respective ports, provides excellent infrastructure.
With Chile and Mexico taking steps to nationalize their lithium industries, there has been significant impacts on the global lithium market which have created opportunities for other countries, like Peru.
The government of Peru has shown its support for the Falchani project and the lithium industry in Peru, with public messages of support, further validated by recently granting American Lithium Corp. the first of 3 drilli permits for drilling in and around Falchani – the first such permit issued by the country in about two years.
This is a major breakthrough and underlines the recent pro mining support from the new Government and showss Peru is serious about developing its lithium industry.
The Uranium Upside Project([2])
American Lithium also owns the 5th largest undeveloped uranium deposit in the world – it’s right next door to the Falchani project.
This Uranium project has an NPV of USD$603M.
The Company has just announced a Transaction to “spin out” these assets into a stand-alone public vehicle for the benefit of shareholders of record.
On Closing 80 million shares of the new vehicle will be distributed to American shareholders on a pro rata basis. The Record date will be set in the next several weeks.
For full details use this link to the press release.
American Lithium’s Team
Chairing the board is Andy Bowering, a stalwart in the mining industry. His impressive track record includes founding Millennial Lithium Corp (acquired last year for half a billion dollars).
Andy has shown his knack for nurturing battery metal mining companies from inception to acquisition.
At the forefront of American Lithium is CEO Simon Clarke, a mining industry veteran with 30 years under his belt with invaluable experience in battery metals.
The team also includes top talents such as COO Laurence Stefan, who has been involved in numerous mining Projects globally and has been focused on Peru for over 20 years, and EVP Ted O’Connor, a former senior executive from Camaco and key player alongside Laurence in the discovery of the Falchani deposit and unlocking the ability to produce battery grade lithium from the Project without additional upgrading or refining.
This team is poised to maximize the value of American Lithium’s premier projects as they aren’t just experienced – they’re proven winners who’ve advanced assets and delivered impressive returns, creating a track record of success that’s hard to ignore.
The Structure:
American Lithium, has 214 million outstanding shares and a robust market capitalization of USD$400 million, a very promising small-cap entity.
Despite being pre-production the market recognizes the potential of the Company’s assets, which together have a net present value (NPV) of $5.3 billion.
The company’s market cap stands at less than 10% of its NPV, an exciting prospect as it progresses its projects closer to production, potentially aligning its market value with the net asset value of its Projects.
The expert team at American Lithium, armed with over $30 million in cash and a debt-free, clean balance sheet, is swiftly advancing TLC and Falchani through Pre-Feasibility Studies.
Its Projects have no royalties and the Company has not entered into any offtake agreements yet despite growing strategic interest.
American Lithium has a large and strong shareholder base and management is highly invested
This ownership stake aligns management’s interests with those of shareholders, ensuring that they’re committed to increasing shareholder value.
American Lithium Corp presents a unique investment opportunity to capitalize on America’s transition to a low carbon future.
Even if you don’t understand mining, you can take it from some of the top minds in the sector, such as financier Marin Katusa.
“I believe lithium producers will do well, along with companies who have large lithium reserves in low-risk jurisdictions…”
Mining Magnate – Marin Katusa
To find out more about Lithium from the mining experts at Katusa Research you can click here to download their deep dive into American Lithium.
[1] See American Lithium’s TLC Lithium Project PEA entitled “Tonopah Lithium Claims Project NI 43-101 Technical Report – Preliminary Economic Assessment” with an effective date of January 31, 2023
[2] See American Lithium’s Falchani Lithium Project PEA entitled “Falchani Lithium Project N1 43-101 Technical Report – Preliminary Economic Assessment” with an effective date of February 4, 2020
Carbon Credits, as a publisher, is not a broker, investment advisor, or financial advisor in any jurisdiction. Please do not rely on the information presented by Carbon Credits as personal investment advice. If you need personal investment advice, kindly reach out to a qualified and registered broker, investment advisor, or financial advisor. The communications from Carbon Credits should not form the basis of your investment decisions. Examples we provide regarding share price increases related to specific companies are based on randomly selected time periods and should not be taken as an indicator or predictor of future stock prices for those companies. American Lithium Corp has reviewed and sponsored this article. The information in this newsletter does not constitute an offer to sell or a solicitation of an offer to buy any securities of a corporation or entity, including U.S. Traded Securities or U.S. Quoted Securities, in the United States or to U.S. Persons. Securities may not be offered or sold in the United States except in compliance with the registration requirements of the Securities Act and applicable U.S. state securities laws or pursuant to an exemption therefrom. Any public offering of securities in the United States may only be made by means of a prospectus containing detailed information about the corporation or entity and its management as well as financial statements. No securities regulatory authority in the United States has either approved or disapproved of the contents of any newsletter. Carbon Credits nor any employee of Carbon Credits is not registered with the United States Securities and Exchange Commission (the “SEC”): as a “broker-dealer” under the Exchange Act, as an “investment adviser” under the Investment Advisers Act of 1940, or in any other capacity. He is also not registered with any state securities commission or authority as a broker-dealer or investment advisor or in any other capacity. HIGHLY BIASED: In our role, we aim to highlight specific companies for your further investigation; however, these are not stock recommendations, nor do they constitute an offer or sale of the referenced securities. Carbon Credits has received cash compensation from American Lithium Corp as reported in their May 8, 2023 news release and is thus extremely biased. It is crucial that you conduct your own research prior to investing. This includes reading the companies' SEDAR and SEC filings, press releases, and risk disclosures. The information contained in our profiles is based on data provided by the companies, extracted from SEDAR and SEC filings, company websites, and other publicly available sources. HIGH RISK: The securities issued by the companies we feature should be seen as high risk; if you choose to invest, despite these warnings, you may lose your entire investment. You must be aware of the risks and be willing to accept them in order to invest in financial instruments, including stocks, options, and futures. NOT PROFESSIONAL ADVICE: By reading this, you agree to all of the following: You understand this to be an expression of opinions and NOT professional advice. You are solely responsible for the use of any content and hold Carbon Credits, and all partners, members, and affiliates harmless in any event or claim. While Carbon Credits strives to provide accurate and reliable information sourced from believed-to-be trustworthy sources, we cannot guarantee the accuracy or reliability of the information. The information provided reflects conditions as they are at the moment of writing and not at any future date. Carbon Credits is not obligated to update, correct, or revise the information post-publication. FORWARD-LOOKING STATEMENTS: Certain information presented may contain or be considered forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors which may cause actual results or events to differ materially from those anticipated in these statements. There can be no assurance that any such statements will prove to be accurate, and readers should not place undue reliance on such information. Carbon Credits does not undertake any obligations to update information presented, or to ensure that such information remains current and accurate.IMPORTANT DISCLAIMER
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US: AMLI
CANADA: LI
FRANKFURT: 5LA1