Lithium Bank LBNKF Top Pick at CEM Montreal

LBNKF is expected to release a SECOND PEA in 2023.

In fact, LBNKF’s Park Place PEA is highly anticipated and should be released in 2023 as well.

And get this, Park Place’s historical sample grades provide a compelling reason for follow up drilling and sampling that could lend to a resource report by the end of the summer that could provide potential for EVEN Greater PEA results in the fall.

So, taking the above into consideration, this company has the potential for over $5B in NPV with JUST 2 properties.  Better yet for investors, it’s trading at a ~$60M valuation….

Yes, you are reading that correctly.

We are absolutely sure readers and potential investors can now clearly see why it was voted as the TOP PICK at the Montreal Capital Event (CEM).

Critically important, and we just can’t emphasize this enough… the company’s business model is to sell each project or spin them off… NOT GO INTO PRODUCTION! 

Paul Matysek is the Executive Chairman of Lithium Bank.

This strategy is validated by Paul Matysek’s previous track record of bringing projects to the market for sale, as pointed out in our previous report.  In the aggregate, his 6 prior project sales were worth over $2B and included Lithium X and Lithium One. 

His last lithium brine venture (Lithium X Energy) started trading on the OTCQX in December 2016. By December 2017, the company was acquired for over 500% from the price it started trading.

Suffice to say; this is not his first rodeo!

What is Lithium Bank worth?

Companies with PEA-level assets commonly trade at a ratio to their NPV. Even if we assume the lower end of 20%, there is still significant upside for LBNKF shareholders.

The Company has also identified 8 near-term opportunities to enhance the economics of the PEA. 

In addition, the Government of Canada recently announced an Investment Tax Credit of 30% that can be put towards capital expenditures on the project.

Furthermore, LBNKF is working with a local partner that will capture plant CO2 and use it to produce cement.

Altogether, these 8 low hanging options present a significant opportunity to improve on an already exceptional project.

Lithium Bank is using PROVEN next generation lithium extraction technology.

LBNKF is pursuing pilot plant studies using PROVEN next generation technology that has been used successfully with OTHER RESOURCES.

Coupling this with their own resource, by all studies and projections, this technology is expected to drive demand for the Company!

Additionally, instead of taking years and millions of dollars to get lithium concentrated by the sun in salars, this DLE technology can extract lithium from brine water IN HOURS.

In light of this, the gang at LBNKF just got proof of having potential to produce more than $12B worth of lithium hydroxide over 20 years using this technology.

While the industry typically pays .20 to .40 multiples of NPV, we feel a project that can use DLE could carry a HIGHER valuation… simply because the time and cost to get lithium is MUCH LESS using DLE instead of those old-school big mining methods. 

Let’s now take some other approaches to valuation here.

What are LBNKF LAND and LEASES worth?

Boardwalk is also highly leveraged to the lithium spot price, which has already increased well over 900% since 2020, and strong fundamentals are driving it even higher.

Hatch’s initial Boardwalk PEA used a conservative long-term price estimate, but even a 15% increase in the lithium price adds another Billion to the NPV!

Likewise, the rush into lithium is further evidenced by Energy giant ExxonMobil  paying Galvanic Energy about $100 million to lease approximately 120K acres of potential brine-producing land.

Correspondingly, LithiumBank owns the rights to over 2.8M acres. AND keep this in mind, the company is interested in SELLING these properties and NOT mining them.

Another option available to the company involves Ion exchange technology. 

It is not new, and yet the investing community still perceives it as risky.

IET has been used for cobalt and uranium.  To that end, Chile is even mandating the use of this technology. 

Why is that important? 

They are one of the largest lithium producers in the world.  Combine that with LBNKF’s desire to utilize this technology, opening up even more possibilities for the company.

Another MASSIVE revenue stream…or ANOTHER type of spinoff?

The company has referred to building an “indoor pilot” so they could test ALL of their projects.

When taking all the above into consideration, it begs the obvious question.  All of this potential, with a unique incubator business model (sell OR spinoff, versus build), for just $60M?

We think it’s a no-brainer for readers and potential investors!

Lithium Bank LBNKF Summary

1. Lithium is the “new oil” and demand is expected to go parabolic
2. DNew technology extracts lithium in HOURS versus years
3. Company has the LARGEST lithium brine district by lithium brine volume in North America
4. First PEA released with NPV of US$ 2.7B
5. At least 1 more PEA expected in 2023 on neighboring Park Place asset
6. Mining veteran (largest shareholder) has already sold 6 PEA level projects worth over $2 BILLION to date
7. Recent insider buying

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