Major Milestone for Lithium Co.

Source: Streetwise Reports 02/02/2024

Volt Lithium Corp. has produced a 99.5% battery-grade lithium carbonate by using its proprietary technology to process oilfield brine. Read on to see what analysts have to say about this company’s stock.

Volt Lithium Corp. (VLT:TSV; VLTLF:US) announced in a press release that it had produced a 99.5% battery-grade lithium carbonate by processing oil field brine from the Keg River formation on the company’s Rainbow Lake project, which it believes is a commercially viable product.

Alex Wylie, the President and CEO of Volt Lithium, commented, “I am thrilled to confirm that the Volt team continues to advance our DLE capabilities at our demonstration plant and showcased our ability to transform oil field brine into a commercially saleable grade of lithium carbonate. Brining the full-cycle process in-house greatly reduces the cost of producing lithium carbonate, which is expected to enhance margins and position Volt as a low-cost operator.”

Goldman Sachs referred to direct lithium extraction as a “game-changing technology” that could double lithium production in a report from April 27, 2023, and compared the technology’s impact to that of shale on oil production.

Volt Lithium is the proprietor of a three-stage lithium extraction process that utilizes oil field brine by first treating and purifying the brine, extracting lithium eluate from the brine, and then concentrating the eluate into a 99.5% lithium carbonate that meets battery grade specifications for the EV industry.

Dr. John McEwen, Volt’s Vice President of Research and Development and Technical Services, gave a statement on the company’s progress, “With Volt’s commitment to innovation and sustainability, we are excited to continue optimizing our proprietary DLE technology and very proud to report increasing success in processing oil field brine from our initial Rainbow Lake asset. Having the demonstration plant offers a key differentiator for Volt relative to our peers as it enables us to simulate field operations while testing brines from all over North America.”

Game-Changing Technology

Josh Chiat with Stockhead reported on January 15, 2024, that the investment bank RBC has indicated that it believes that lithium prices could increase in Q1 or Q2 of 2024. Predictions were mixed, however, as Goldman Sachs indicated that it believed a bear market for lithium was on the horizon. Lithium is an essential ingredient in many batteries, making it a critical part of green infrastructure. However, the metal is not as scarce as copper, leaving analysts with mixed opinions.

Still, Volt is not a regular lithium stock but focuses on direct lithium extraction or DLE.

A research note from Goldman Sachs referred to direct lithium extraction as a “game-changing technology” that could double lithium production in a report from April 27, 2023, and compared the technology’s impact to that of shale on oil production. With regards to how this will impact the market, Goldman Sachs said, “Our analysis suggests that DLE will widen, rather than steepen, the lithium brine cost curve with an average project likely sitting in the second or third cost quartile.”

An Important Milestone

Newsletter Writer Michael Ballanger reviewed Volt Lithium in light of its most recent news and assessed the company positively.

He stated, “It is an important milestone for Volt, and it further addresses the issue of cost/tonne and the ultimate profitability of their DLE process.” Mining Junkie believes that the finalization of the U.S. deal could push the company in a lucrative direction.

Ballanger rated the company as a “Buy” for potential investors. He cited a shakeup in the lithium market as a factor in his rating, as investors seem to have turned sour on some major lithium producers as a result of an oversupply in the Chinese battery markets.

The company’s investor presentation demonstrates a number of catalysts, including goals to increase the company’s mineral resource estimate and continue to increase lithium concentrations.

Ownership and Share Structure

[OWNERSHIP_CHART-10857]

Refinitiv provided a breakdown of the company’s ownership and share structure, where management and insiders own approximately 20.36% of the company. According to Refinitiv, President and CEO James Alexander Wylie owns 11.44% of the company with 11.38 million shares, Director Martin Scase owns 6.47% of the company with 6.44 million shares, Director Warner Uhl owns 1.16% of the company with 1.15 million shares, Director Maury Dumba owns 0.64% of the company with 0.64 million shares, CFO Morgan Tiernan owns 0.51% of the company with 0.50 million shares, and Director Kyle Robert Hookey owns 0.14% of the company with 0.14 million shares.

Refinitiv reports that institutions own approximately 2.42% of the company, as Eagle Claw Investments Pty. Ltd. owns 1.41% of the company with 1.40 million shares, while U.S. Global Investors, Inc. owns 1.01% of the company with 1.00 million shares.

According to Refinitiv, there are 99.46 million shares outstanding with 77.81 million free float traded shares, while the company has a market cap of CA$13.36 million and trades in the 52-week period between CA$0.16 and CA$0.55.

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Important Disclosures:

1. Volt Lithium Corp. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Volt Lithium Corp.
3. Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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( Companies Mentioned: VLT:TSV;VLTLF:US, )