Never let the others make decisions for you. Today we will discuss a few Lithium plays, some with REE flavour and will look at the charts: weather apart from fundamentals, Copenhagen, Warren Buffet and Jay Taylor we have something pointing to catalyst in this sector. We are looking for the start of Second stage of this Bull market.
We will concentrate on Canadian Stock Exchange and will take top five out of 19 mentioned in Lithium - Hype or Substance by Dundee Capital markets on October 28, 2009. All companies are above 10 mil market cap and we will not go below it. Out of six mentioned by Dundee Latin American Minerals will be excluded as they only have a 31% stake in a private company engaged in Lithium. The rest five are presented below with their charts by the market cap.
"Western Lithium Canada Corp. CAD 90 mil MC. WLC.v is focused on it Kings Valley hectorine project in Nevada. The deposit hosts a historic 11 million tonne lithium carbonate equivalent resource (estimated by Chevron in the 1980's) contained in five lences. WLC.v has an updated compliant resource on one of the lences. The Stage 1 (PCD) lens contains 1.3 million tonnes with grade of 0.27% Li (1.44% lithium carbonate). This near surface deposit is hosted by hectorine clay - hectorite clay deposits are not currently exploited on a commercial scale." Dundee. Below you can find Byron Capital price target of 3.5CAD. We note that Canaccord initiated it as well with a speculative buy and Price Target at 1.9CAD Very important notice is that nobody is producing from this type of deposits at the moment. This company is the largest in Lithium among Canadian juniors and Byron's coverage should move all sector if the company is credible enough in the eyes of investors. Technically we have a Cup and Handle bullish formation, all momentum indicators are neutral to positive, selling volume subsided in accumulation and any pick up could create a Buy signal. One project with a new type of deposit and rather low grade should give some concern after next run and consolidation, after it company should give more answers on its development. Recently announced and cancelled M&A deal shows that company is looking for direction, team behind it could give us a hint that they will try to be a consolidator in the sector. Who will be among their targets? We will leave it to your imagination.
In this 17-page research report, analyst Dr. Jon Hykawy gives a comprehensive overview of the company and speaks to the processes and economics of lithium production derived from hectorite clays.
This report further exemplifies Byron Capital Markets' continuing commitment to research and, in particular, its ongoing efforts in the Electric Metals space."