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Lotus snaps up Malawi uranium project for a song

Special Report: Lotus has expanded its uranium footprint in Malawi with the acquisition of the Livingstonia project that could quickly … Read More
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Lotus has expanded its uranium footprint in Malawi with the acquisition of the Livingstonia project that could quickly add to its existing resource base.

The company paid just US$25,000 for Livingstonia and its historical inferred JORC 2004 resource of 6 million pounds of uranium oxide, or a paltry price of less than 0.4c per pound of U3O8.

While work will be required to convert this resource to an industry standard JORC 2012 compliant resource, it highlights the potential for the project to become a satellite of the company’s flagship Kayelekera project just 90km away.

Lotus Resources (ASX:LOT) adds that there are multiple exploration targets across Livingstonia as historical drilling at its boundary had ended in mineralisation.

There are also a number of broader, yet sparsely drilled, zones of mineralisation that could host higher-grade offshoots from the existing resource given drill results such as 8m at 1,180 parts per million eU3O8 and 3.6m at 1,800ppm eU3O8.

“This is an extremely accretive acquisition for Lotus with the potential to increase our global mineral resource by 16% for less than $0.004/lb U3O8. More importantly, we have increased our landholding at the highly prospective, yet poorly explored Livingstonia region, to 187sqkm,” managing director Keith Bowes said.

“There are multiple walk up, drill ready targets across our Livingstonia tenements, including at the boundary of the Livingstonia resource where an airborne radiometric survey indicates mineralisation continues into our existing tenements.

“This area, as well as the high-grade intercepts previously reported, will be the basis of the first phase of exploration which will commence towards the end of this year.

“Other prospective targets, including Livingstonia North and Chilumba, will be tested in future exploration programs.”

Bowes added that in the event of exploration success, the company would carry out ore sorting test work on Livingstonia material in 2022 to determine if it could become a future satellite operation.

lotus resources livingstonia drill intercepts uranium
Livingstonia significant intercepts with trend extensions to the north. Pic: Supplied

Livingstonia project and upcoming work.

Livingstonia is located in northern Malawi about 90km southeast of the Kayelekera uranium mine.

It is hosted in the same Karoo-equivalent sedimentary sequence that hosts the main deposit associated with Kayelekera.

Livingstonia North, which is already held by Lotus, is situated directly along-trend of the Livingstonia uranium resource, with drilling at the northern end of the Livingstonia deposit supporting a continuation of mineralisation into Livingstonia North.

The airborne radiometric anomaly at Livingstonia is coincident with the resource and this anomaly continues into Livingstonia North.

A parallel radiometric anomaly also exists in Livingstonia North that may indicate additional mineralisation.

location lotus resources livinstonia project uranium
Location of the Livingstonia project. Pic: Supplied

The company plans to carry out ground-based exploration and sampling along the Livingstonia North trend as well as a reverse circulation drill program to test the extensions of the Livingstonia mineral resource and investigate the potential higher grade zones within the resource boundary.

It will also focus on completing the work required to update the historical resource to JORC 2012 standards.

 


 

 

This article was developed in collaboration with Lotus Resources, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post Lotus snaps up Malawi uranium project for a song appeared first on Stockhead.

Energy & Critical Metals

Infinity takes San Jose lithium plan underground as EU demand grows

Special Report: Infinity Lithium has unveiled an integrated underground mine and hydroxide scoping study for the European Union’s second-largest hard…

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Infinity Lithium has unveiled an integrated underground mine and hydroxide scoping study for the European Union’s second-largest hard rock lithium project.

Infinity’s (ASX:INF) 75%-owned San Jose lithium project in central-western Spain has a JORC resource of 111.2 million tonnes for more than 1.6 million tonnes lithium carbonate equivalent – the second largest in a region where the battery revolution is in full swing.

The project was initially planned as an open pit operation in a prefeasibility study completed 2019, but on the back of permitting challenges has been taken underground in the latest study in a move which would both reduce surface tailings and leave no material visible impact from mining operations.

It would be a case of back to the future – San Jose was previously an underground tin mine in the 1960s.

The project is fully integrated for chemical production, having successfully produced lithium hydroxide monohydrate and lithium carbonate at bench-scale. INF even has a non-binding memorandum of understanding for lithium hydroxide offtake with LG Energy Solution.

Impressive stuff.

Today’s scoping study outlines a project producing a steady-state average of 19,500 tonnes per annum of battery grade lithium hydroxide over a life of 26 years.

The project has a pre-tax net present value of $US811 million, and a pre-tax internal rate of return of 25.6% giving it a payback of just 3.2 years. Total life-of-mine revenues come in at $US7.9 billion.

The study has been completed at an assumed average price of $US17,000 per tonne with C1 cash costs of $US6,399/t including 20% contingency for underground mining operational expenditure.

The tailings production footprint for the project has been significantly reduced against Infinity’s 2019 prefeasibility study, with 55% of tailing which previously would have sat at surface now planned for paste infill underground. The reduction in the surface impact is all the more impressive due to the fact that output from San Jose increases more than 25% in the new scoping study measured against the 2019 PFS. The study outlines an average run-of-mine of 2 million tonnes per annum.

The company has mapped a timeline to production with a final investment decision scheduled for 2022/23.

Timeline to production for Infinity Lithium’s San Jose project. Pic: Supplied.

Critical time for transition

Today’s study comes at a critical time for lithium and the battery industry in Europe, where there is significant drive toward an electric future and away from fossil fuels.

Lithium is a key component of the lithium-ion battery commonly used to store energy for electric vehicles and homes.

As a result, demand for the commodity looks set to skyrocket.

Based on projected EV penetration Canaccord expects more than 1000-gigawatt hours’ worth of lithium-ion battery gigafactory capacity to come online by 2030 in the EU, and the International Energy Agency predicts global demand for 2030 to rise above 2.5 million tonnes of lithium carbonate equivalent.

It currently stands at 500,000t which by chance is Benchmark Mineral Intelligence’s forecast supply shortfall in the EU in 2030.

Infinity
Anticipated demand for lithium carbonate equivalent from Europe’s electric vehicle industry over the years to 2030. Pic: Supplied.

Sharing the benefit

Mining underground would also increase direct and indirect employment opportunities in the Extremadura region, where unemployment was reported at 22.22% in the first quarter of 2021.

The project would create some direct jobs, with further indirect employment of 1,660 people, and Infinity is committed to generating long-term skilled labour in the area.

The region gives back too, with huge potential to align with Extremadura’s vast renewable energy potential.

Extremadura is the region with the highest installed photovoltaic power capacity in Spain – accounting for 22% of all capacity – and 100% renewable electricity is available by green energy certificates or direct from the photovoltaic source.

Infinity is also in discussions to blend hydrogen with natural gas to power its kiln and has identified hydrogen as a potential alternative power source.


 

 

This article was developed in collaboration with Infinity Lithium, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post Infinity takes San Jose lithium plan underground as EU demand grows appeared first on Stockhead.

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Energy & Critical Metals

Lucid Stock Languishes as Investors Wait to See Dreams Turned Into Reality

Lucid Group (NASDAQ:LCID) combined two of 2021’s hottest trends — electric vehicle startups and special-purpose acquisition companies. The problem…

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Lucid Group (NASDAQ:LCID) combined two of 2021’s hottest trends — electric vehicle startups and special-purpose acquisition companies. The problem was that by the time the company completed its reverse merger with Churchill Capital Corp. IV in late July, investor interest in both trends was significantly diminished. Still, LCID stock shot up as much as 20% on its first day of trading, to a high just above $29, before closing the day up 11%.

Source: ggTravelDiary / Shutterstock.com

By Sept. 1, though, shares had plummeted 40%. A quick rebound took LCID stock back up near its post-SPAC-merger highs. But selling over the past three weeks has wiped out any progress made since July.

However, Lucid began production on its first car for customers, the Air Dream Edition, in late September. The luxury sedan is a special edition of its flagship passenger EV that will cost $169,000. Deliveries are scheduled to begin by the end of the month.

Lucid’s focus on the luxury market is part of the reason why many see the startup as the first potential competitor to Tesla (NASDAQ:TSLA). A true rival to the OG of EVs would no doubt be enticing to investors, so let’s take a closer look at the company and where LCID stock might be heading. 

Lucid Putting Its Best Foot Forward

As I mentioned above, the first car to roll off the assembly line in Lucid’s Advanced Manufacturing Plant, called AMP-1, in Casa Grande, Ariz., is the luxury Dream Edition of the Lucid Air. In other words, Lucid has chosen to bring out the big guns first.

This top-of-the-line EV boasts impressive performance stats. Just a few weeks prior to the start of production, the Environmental Protection Agency released its official estimate for the Air Dream Edition’s range: 520 miles on a single full charge. Tesla’s Model S Long Range falls significantly short of that, with an estimated 405 miles per charge.

Standard in the Air Dream will be Lucid’s DreamDrive Pro, an advanced driver assistance platform. According to the company, “DreamDrive employs up to 32 on-board sensors, a multi-faceted driver-monitoring system, and lightning-quick on-board ethernet networking powering more than 30 features through a clear, user-friendly interface.” Its driver-assistance features include collision avoidance, adaptive cruise control and traffic jam assistance.

At present, the company plans to manufacture 520 of the Air Dream Edition models. (Does that number sound familiar?) By releasing its best vehicle first, I think Lucid is making a statement that it aims to attract customers away from higher-end Tesla S models. 

The company is expected to deliver the first Dream Editions to customers later this month. Production and delivery of  Lucid’s lower-tier EV models are expected to follow. The company says it has already received more than 13,000 reservations for its Lucid Air electric vehicles, with the entry-level version of its flagship sedan set to cost around $78,000.

Production Predictions 

Lucid CEO Peter Rawlinson recently said the firm will build a total of 577 vehicles this year. He also said the company is on track to meet its production targets of 20,000 vehicles in 2022 and 50,000 vehicles in 2023. 

Management has plans to expand the Arizona factory by 2.7 million square feet to help meet production goals. In addition to the Lucid Air models, the company said it expects to release its first electric SUV, called the Gravity, in late 2023.

Lucid’s reverse merger raised $4.4 billion for the startup, which Rawlinson said, “sees us through to the end of 2022.” So, the company will need to raise more cash to meet its 2023 goals. 

In other words, Lucid is depending on its early production vehicles to perform well. If that indeed occurs, the company should be able to raise further capital to produce 50,000 vehicles in 2023. The key word here, of course, is “if.”

The Bottom Line on LCID Stock

LCID stock did not get a boost on news that production had started. In fact, shares sit about 13% lower since the announcement. This leads me to believe any enthusiasm for the start of production was already baked into the price. I doubt we’ll see a price spike when deliveries begin either.  

There are currently three analysts with price targets on LCID stock. They range from $12 to $30, showing the wide schism in sentiment surrounding the stock.

A move to the high end of that range would represent a gain of more than 30% from current levels. But investors are likely to wait to see if the company can turn its dreams into reality before bidding shares much higher. 

On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.

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Mining Penny Stocks Shot Up Today, Here’s 4 to Watch

Mining penny stocks are heating up right now, here’s four you need to know
The post Mining Penny Stocks Shot Up Today, Here’s 4 to Watch appeared first…

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4 Mining Penny Stocks For Your Mid-October Watchlist 

In the past few days, mining penny stocks and specifically precious metals penny stocks, have been climbing substantially. Usually, when investors talk about precious metals stocks, the main discussion is surrounding those in the gold mining industry. And right now, gold stocks are seeing a great deal of hype. There are a few reasons for this that are worth exploring. For one, right now there is a large amount of inflation occurring in the U.S. 

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With the price of consumer goods rising substantially in the last year and a half, many investors have turned toward more stable penny stocks. This includes mining stocks and other securities that tend to fluctuate less than others. 

In addition to this, if we look at gold, we see that it is historically a safeguard asset. This means that investors turn to it in times of economic turmoil. So, if we consider all of this, the rise of gold stocks begins to make more sense. With all of that in mind, here are four mining penny stocks to watch right now. 

4 Mining Penny Stocks to Watch in October 2021 

  1. IAMGOLD Corp. (NYSE: IAG
  2. Harmony Gold Mining Company Limited (NYSE: HMY
  3. Yamana Gold Inc. (NYSE: AUY
  4. New Gold Inc. (NYSE: NGD

IAMGOLD Corporation (NYSE: IAG)

IAMGOLD Corporation is gold mining stock that managed to climb by roughly 3.2% on October 13th and in the past five days by over 12.8%. This is a company that develops and operates a variety of gold mining properties. The company is involved in the exploration and development of gold, silver, and copper mines. Currently, it owns an interest in the Rosebel mine, Westwood mine, Pitangui project, and more.

Early in August, the company revealed its financial results for the second quarter of this year. For IAMGOLD, which is still recovering from the pandemic and economic troubles of the previous year and a half, the numbers were less than stellar. Revenue for IAMGOLD fell quarter over quarter and year over year alongside lower gross profit and adjusted EBITDA. While it did report a net loss, it does look like gold demand is rising alongside inflation and overall economic concerns.

Despite these negative results, IAG stock has been climbing in the market. Do you believe that the company could make a comeback in the market? Well, IAMGOLD recently announced its third-quarter results release date. These results will be available after the market closes on Wednesday, November 3rd, 2021. This is the next key date to look out for if you plan on buying IAG stock. For now, will IAG be on your list of penny stocks to watch?

Harmony Gold Mining Company Limited (NYSE: HMY)

Harmony Gold Mining Company Limited is another gold exploration, extraction, and processing company that climbed on October 13th. Some of the locations it mines in include South Africa and Papua New Guinea. In addition to gold, Harmony Gold explores for reserves of uranium, silver, and copper. Because of how broad its mining operations extend, many investors continue to show interest in Harmony Gold. It’s worth noting that it actively has nine underground operations in the Witwatersrand Basin.

[Read More] Top Penny Stocks to Watch? 3 Moving in Today’s Trading Session

In the company’s most recent update, its fiscal year 2021 earnings and revenue went up year over year. This has to do with increased metal prices and solid performance for the company. HMY stock often will move with the price of gold, silver, uranium, and copper themselves. The price of gold has the largest impact on Harmony, as that is the primary material that it searches for. In the last five days, shares of HMY stock have increased by around 13%, which is similar to IAG. With this in mind, will HMY be on your penny stock watchlist?

Penny_Stocks_to_Watch_Harmony_Gold_Mining_Company_Limited_HMY_Stock

Yamana Gold Inc. (NYSE: AUY)

Yamana Gold Inc. is next on the list of gold stocks that pushed up on October 13th. By EOD, shares of AUY stock had shot up by over 4%. If you’re not familiar, Yamana Gold is a company that produces precious metals in a variety of countries. Currently, Yamana produces both gold and silver at its properties. It currently has land positions, development-stage projects, and exploration projects located in Brazil, Canada, Chile, and Argentina.

As stated with the other gold stocks on this list, it’s worth keeping a close eye on the price of gold itself. We see that even if no company-specific news has come out, shares of AUY stock could fluctuate based on the changing price of gold. Right now, we are witnessing many investors turn to gold stocks as a way to hedge bets against inflation, and this could explain the recent gains for AUY stock.

In tandem with its bullish movement, the company’s volume is also slightly higher than its market average. Moving forward, the company plans on releasing its third-quarter financial results after the market closes on October 28th, 2021. Based on this info, will AUY be on your penny stock watchlist?

Penny_Stocks_to_Watch_Yamana_Gold_Inc._(AUY_Stock_Chart)

New Gold Inc. (NYSE: NGD)

New Gold Inc. is a mining corporation that develops and operates gold, silver, and copper resources. The company owns 100 percent of the Rainy River gold-silver mine in Ontario, Canada, and the New Afton gold-copper mine in British Columbia, Canada.

In mid-September, New Gold Inc. updated its fiscal 2021 operational outlook. At its Rainy River mine, New Gold aims to produce between 405,000 and 450,000 ounces of consolidated gold equivalent, down from 440,000-490,000 ounces before. The company’s guiding figures have decreased slightly as a result of this occurrence.

“While the reduction in our near-term guidance at Rainy River is unfortunate, I remain confident the mine has reached an inflection point, as evidenced by the free cash flow generated in the second quarter and the mine is on track to deliver an improved second half of the year.”

President and CEO of New Gold, Renaud Adams

With this new info in mind, will NGD stock be on your watchlist in October?

Penny_Stocks_to_Watch_New_Gold_Inc._(NGD_Stock_Chart)

Are Mining Penny Stocks Worth Buying or Not?

Mining penny stocks remain some of the hottest and most stable stocks to watch right now. While the future of the mining industry remains uncertain, right now, it could be worth keeping a close eye on.

[Read More] 3 Trending Penny Stocks For Your Small-Caps Watchlist Right Now

Considering that there are so many facets to look out for, understanding the ins and outs of the mining industry will help you to make money with penny stocks. With all of that in mind, do you think that mining penny stocks are worth buying or not?

The post Mining Penny Stocks Shot Up Today, Here’s 4 to Watch appeared first on Penny Stocks to Buy, Picks, News and Information | PennyStocks.com.

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