Published: June 21, 2023 | Published By: Real Creative Agency
LBNKF Top Pick at CEM Montreal June 2023
One of the more undervalued nanocap stocks out there, in our opinion…. and the 54 brokers, fund managers, and high net investors that heard their story this weekend have voted and seem to agree.
Here’s a stock with their FIRST of 5 projects, verified by none other than Hatch Ltd. (a preeminent engineering firm recognized throughout North America and the world), with a NPV of approximately $2.7B.
Not to mention factoring in annual project EBITDA’s of $586M for 20 years… trading at a valuation of JUST $60M… and with almost $7M in the bank.
Reiterating here, the current EBITDA figure for this ONE PROJECT is $586M per year for 20 years… or a total EBITDA value of almost $12 BILLION less any capital and finance costs to build it.
Also keep in mind, this is THE FIRST of their 5 projects.
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 $60M?
We think it’s a no-brainer for readers and potential investors!
Lithium Bank LBNKF Summary
- Lithium is the “new oil” and demand is expected to go parabolic
- DNew technology extracts lithium in HOURS versus years
- Company has the LARGEST lithium brine district by lithium brine volume in North America
- First PEA released with NPV of US$ 2.7B
- At least 1 more PEA expected in 2023 on neighboring Park Place asset
- Mining veteran (largest shareholder) has already sold 6 PEA level projects worth over $2 BILLION to date
- Recent insider buying
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Bottom Line
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Disclaimer.
This service is published as an information service for highly speculative investors, and it includes opinions on buying, selling, and holding various stocks and other securities. Lithium Bank Resource is an extremely high-risk investment, and it is HIGHLY LIKELY you can LOSE YOUR ENTIRE INVESTMENT.
Investors should consult with their financial advisor BEFORE making ANY investment.
Prospective investors should carefully consider and evaluate all risks and uncertainties involved in an investment in this Company, including risks related to the Company’s limited operating history, the Company’s need for additional funding, the Company’s ability to successfully implement its growth strategy, conflicts of interest, the uncertainty of the use of available funds, the Company’s failure to manage growth, and reliance on strategic partnerships.
The information provided is obtained from sources believed to be reliable but is not guaranteed for accuracy or completeness. Any persons who buy, sell, or hold securities should do so with caution and consult with a broker or investment adviser before doing so. Any discussions and pages may contain forward-looking statements that involve risks and uncertainties. A company’s results could differ materially from those in forward-looking statements or announcements. All material is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities.At various times, we may own, buy or sell the securities discussed for investment or trading purposes. We (publishers, owners, and agents) are not liable for any losses or damages, monetary or otherwise, that result from the content shared. Scott Shaffer is compensated by Lithium Bank Resource (the “Company”) for publicizing information about the Company and its products.
The payment was made through both (i) 100,000 stock options from the Company and (ii) the payment of cash compensation in the amount of $7500.00 per month for a period of 6 months starting May 2023. As of May 23, 2023, the Company had paid an aggregate of $7,500.00 in cash compensation for such services by Scott Shaffer. Additional cash payments may have accrued since then
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