February 15th, 2022 | 11:28 CET
BYD, Yorkton Ventures, Standard Lithium - Winners of the mobility revolution!
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"[...] In 2020, the die is finally cast in the automotive industry towards electromobility. [...]" Dirk Harbecke, Executive Chairman, Rock Tech Lithium Inc.
BYD - Growing giant from China
Warren Buffett suspected years ago that BYD could develop into the coming star in the Chinese electromobility sky. For the investment legend, the BYD stake has more than paid off so far: at the end of last year, the share was already worth USD 5.9 billion, as can be seen from Berkshire's latest annual report. Even though the share price has lost value in recent weeks due to the weak overall market, in the long run, the Build Your Dream company should continue to expand its market share, especially in China.
With a growth of 362% compared to January of the previous year in "New Energy Vehicles", the car manufacturer was able to shine once again. Credit Suisse analysts continue to see BYD as an outperformer and reiterated their price target at HKD 380, equivalent to EUR 42.67. In addition to pure car sales, the Chinese Company also shows leadership in other innovations. Metaverse is attracting more and more attention. Especially now with tech giant Facebook's recent name change to Meta Platforms Inc. to emphasize its focus on Metaverse. It has been revealed that BYD filed documents with authorities to register a Metaverse trademark under the name "BYD Metaverse" as early as December 27 of last year.
Yorkton Ventures - Lithium portfolio with imagination
The prerequisite for electric car manufacturers to continue to increase their growth figures exponentially is the presence of lithium, a critical raw material for batteries. Increased demand - experts predict between a factor of 20 and 40 by 2030 for lithium-ion cells - is offset by an excessively short supply. Lithium prices on the futures market have tripled since last year. The investment company Yorkton Ventures has a more than interesting business model and one that is appropriate for the current situation.
The Canadians are currently building up a lithium portfolio to meet the increasing demand. Late last year, a group of three non-contiguous lithium properties, Key Lithium, Amisk West Lithium and Amisk East Lithium, collectively known as the Cyr-Kapiwak project, were secured in the James Bay area of Quebec. The acquisition agreement, which the regulatory authority has approved, has now been completed.
The lithium project consists of 42 mineral claims covering a total area of 22.20 sq km. The area is located near Allkem's James Bay lithium concession area and about 3 km from the proposed James Bay mine. The Amisk West and Amisk East lithium permit areas are located several kilometers south of the Key lithium permit area. They are adjacent to Medaro Mining Corp's Cyr South lithium permit area. The Amisk permit areas include large portions of pegmatite-bearing granites that remain largely unexplored.
In addition to the emerging lithium projects, the Vancouver-based Company also has two gold projects in Newfoundland and the Bellechasse-Timmins Gold Project in Quebec, which historically has 171,000 ounces of gold as a mineral resource at an average grade of 1.83 g/t gold.
Newcomer Yorkton Ventures is listed in Frankfurt and Toronto (TSX-V) and currently has a market capitalization of CAD 10.7 million. The Company is led by experienced management and could be good for one or two surprises in the future.
No peace at Standard Lithium
It was almost to be expected that there is still no calm at the Canadian lithium producer Standard Lithium. Hindenburg Research claimed in a report that Standard Lithium was unlawfully failing to disclose information about the pilot project in Arkansas. Its publications state that Standard's plan to produce lithium for EV batteries in Arkansas was based on technology that did not work. The share price fell by more than 20%.
After an extensive rebuttal on Standard Lithium's part and an explanation that the Company has been operating a pilot plant in Arkansas for more than 20 months to test its technology and that the public is regularly informed about it, the share price came to rest. But only for a short time. The reason lies in class action lawsuits in the USA in connection with the recently published short report. Thus, several law firms such as Bragar Eagel & Squire PC, Robbins LLP or Jakubowitz Law from New York write that they want to represent investors who had bought Standard Lithium shares between May 19, 2020, and November 17, 2021.
Lithium is one of the most important commodities for the mobility transition. Yorkton Ventures is well on its way to building a world-class lithium portfolio. Standard Lithium is likely to remain troubled. If BYD is not slowed down by lithium bottlenecks, growth figures should continue to rise.
Conflict of interest
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