November 18th, 2021 | 13:52 CET
Standard Lithium, Prospect Ridge Resources, American Lithium - Up, up and away!
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"[...] China's dominance is one of the reasons why we are so heavily involved in the tungsten market. Here, around 85% of production is in Chinese hands. [...]" Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG
Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.
Standard Lithium - After the hype, now the S-K-S formation
Now the technical chart formation is complete. Technicians look with astonished eyes at the trading formation that has formed at Standard Lithium. The current formation is referred to as a shoulder-head-shoulder formation, or S-K-S for short. In technical terms, this is a top formation with a high sell-off probability. From a systematic point of view, the middle of the formation, i.e. the head from the neckline of the shoulders, is mirrored downwards and then shows the potential for a correction. For the SLI share, this means a downward path of about CAD 3.50, starting with the break of the important neckline at about CAD 12.25. The correction scenario is also only valid for a break in this line; the analysis cancels if it does not occur.
Apart from the meanwhile very high valuation, Standard Lithium continues operationally as planned. The development of the largest lithium project in North America is progressing. The latest pre-feasibility study on the SWA project in the USA sounds very promising. 30,000 tons of lithium hydroxide could be produced there in the future over a period of 20 years. Such a project would make a good lithium producer, but first, a good USD 900 million would have to be invested.
Due to the good position of Standard Lithium, investors are allowed to dream: The lithium giants are currently under pressure to deliver, and this means more developments or strategic acquisitions. Standard has several projects and is already well advanced. But with a market capitalization of USD 1.7 billion, the share is certainly not a lightweight. Nevertheless, a takeover would be feasible for a group like Albemarle, worth almost USD 32 billion. The technical stop for Standard Lithium remains unchanged at CAD 11.80.
Prospect Ridge Resources - Best situation for metals in Canada
A new company from the precious metals sector is making the rounds. Prospect Ridge Resources (PRR) is a Canadian explorer in the precious metals sector. The Company's two critical projects are in Terrace, British Columbia and Val d'Or, Quebec. The debt-free company owns over 70,000 hectares, where recent notable discoveries in gold and silver have taken place. Some of the projects originated from Placer Gold's former mines. In the Douglas Creek section, which is still active today, there have been historic bonanza discoveries of up to 10 ounces. Such "golden nuggets" are unique and enhance the character of the land area.
Located 10 km north of Terrace, the "Holy Grail" project is adjacent to the Golden Triangle. The property is easily accessible and served by several roads, logging roads, and a three-phase power line. It allows for cost-effective exploration and ensures the feasibility of engineering work. The Holy Grail block includes 12 high-grade gold and silver hard rock mines within a 15 km radius. Recent exploration dating back to 2020 has shown several outcrops with exceptional gold values of up to 984 g/t over an area of 3.5 by 6.5 km. Current activities include soil sampling, UAV surveys and a 2000m drill program. The second project near Val d'Or covers 839 hectares and consists of 15 claims. Here too, over CAD 100,000 will soon be invested in exploration.
Prospect Ridge Resources' shares have been listed in Frankfurt since the beginning of November. The number of fully diluted shares is 59.6 million, bringing the current value to CAD 103 million. In Canada, the average daily turnover is 150,000 shares. The PRR share is an excellent value to participate in the current gold and silver rally.
American Lithium - Quadrupled in only 3 months
The share of American Lithium was not so well known until the summer when the rocket ignited. In only 3 months, the share price quadrupled from EUR 1 to over EUR 4. What happened? In the last few days, a landmark court decision gave the Company back ownership of 32 disputed concessions on Peru's Falchani and Macusani projects. The award went to Macusani Yellowcake SAC, a Peruvian subsidiary of American Lithium. The ruling restores full legal title to these concessions, allowing technical work to continue. Perhaps some investors have successfully speculated on this ruling.
American Lithium Corp. is actively engaged in acquiring, exploring, and developing lithium projects throughout the Americas. Its primary focus is on the strategically located TLC lithium mudstone project in Nevada's richly mineralized Esmeralda lithium district. With its investments, American Lithium aims to enable a shift to a new energy paradigm. The Falchani and Macusani lithium and uranium development projects in southeastern Peru are essential in this regard, as they are located within good infrastructure and have already undergone a preliminary economic assessment.
After the rapid increase, the value is now worth over CAD 1 billion. The hope is, of course, based on the strongly rising prices for lithium, as these have doubled to CNY 20,000 since August 2021. The theme remains in vogue, for now, giving new stocks ever greater momentum. Set a tight stop on American Lithium at EUR 3.50 or the equivalent of CAD 5.00 because the title is still an explorer.
The hype in the metal sector is already well advanced. The recently very strongly risen protagonists such as Rock Tech, American or Standard Lithium have already run strongly. At Prospect Ridge Resources, a new success story could emerge.
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