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Lithium Australia attracts speculative buy recommendation from Perth broker

Lithium Australia NL is disrupting the lithium supply chain.

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A number of key milestones are expected to occur in 2018

Lithium Australia NL (ASX:LIT) is trading in the $0.20 range and Perth broker RM Research has initiated coverage with a speculative buy recommendation.

RM Research considers the ability to produce advanced lithium ion cathode material moves Lithium Australia up the lithium value chain.

Adding interest, it says the company also provides the opportunity to integrate the various technologies required to participate in all sectors of the energy metal cycle. The following is an extract from the report.

Significant events expected to occur

RM Research says a number of significant events are expected to occur over the course of 2018 as Lithium Australia progresses key milestones.

These include the SiLeach® LSPP, the recommissioning of VSPC cathode facilities and establishing a commercial pathway for lithium-ion recycling.

Disrupting the lithium supply chain

Lithium Australia is an innovator and developer of disruptive-lithium extraction and production technologies.

The following is an extract from the report:

Maiden lithium resource for Sadisdorf project

Inferred Mineral Resource estimate of 25Mt @ 0.45% Li2O for Sadisdorf tin-lithium project in Saxony, Germany.

Capable of producing a high-grade lithium mica concentrate.

The resource has the potential to feed a 25,000tpa lithium carbonate plant for 10 years.

SiLeach® hydrometallurgical process suited to unlocking the lithium value from Sadisdorf and similar historical tin deposits.

Lithium Australia enters $3b cathode market through VSPC acquisition

Shareholders approved the acquisition of advanced cathode material producer, Very Small Particle Company (VSPC) at LIT’s AGM on 30 November 2017.

VSPC’s Lithium Iron Phosphate (LFP) cathode material tested by Independent laboratory in Germany outperforms reference standard.

Large-scale SiLeach® pilot plant on track for 2018

Further optimisation studies and test-work continue with LIT on track to approve the construction of a Large-scale SiLeach® pilot plant (LSPP) early in 2018 and has recently stated its intention to fund construction off its own balance sheet.

Pilot-testing of SiLeach® produced battery-grade lithium carbonate from sub-spec spodumene and lithium micas.

Studies show that SiLeach® LSPP can be cash positive with additional cost reduction upside from further optimisation, scale up and by-product credits.

Strategic alliances

LIT continues to build out its network of strategic exploration projects and alliances globally.

In the last quarter alone LIT has:

- Executed MOU for Lithium exploration-processing with ASX listed Poseidon Nickel.

- Expanded its North Queensland exploration footprint.

- Acquired a majority interest (54%) in its Mexican lithium clay project.

BlackEarth Minerals (BEM) prepares for IPO

LIT’s graphite focused subsidiary BlackEarth Minerals Ltd has raised more than $4.5m ahead of ASX listing. LIT to hold a minimum of BEM post listing valued at $2.2 million.

Recycling strategy

LIT has established subsidiary Resource Conservation and Recycling Corporation Pty Ltd (RCARC) and is currently undertaking advanced research programs to evaluation cradle-to-grave cycles of Lithium Ion Batteries.

$18 million+ cash at bank

As at 1/12/2017, LIT held $18m in cash reserves which has likely continued to increase substantially through LIT’s use of the Controlled Placement Agreement (CPA) with Acuity Capital.

Quick facts: Lithium Australia NL

Price: 0.045 AUD

ASX:LIT
Market: ASX
Market Cap: $24.04 m
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