Lithium Mining Company Estimates Production Rate of 23,000 Tonnes in 19 Years

Volt Lithium Corp. (VLT:TSV; VLTLF:US) announced in a press release that it has released a preliminary economic (PEA) assessment for the Rainbow Lake lithium project. The project, located in Alberta, is estimated to be capable of increasing production to 23,000 metric tonnes per year of lithium hydroxide monohydrate (LHM) in less than twenty years.

The highlights of the PEA, according to Volt Lithium, included a pretax net present value (NPV) of US$1.5 billion with an 8% discount rate and an internal rate of return (IRR) of 45%, and an after-tax NPV8 of US$1.1 billion with an IRR of 35%. Volt stated that it has a partnership with E&PCo related to its capital expenditure recovery program. Lastly, the company stated that it had an operating expenditure of US$3,276 per tonne LHM in the Muskeg formation, US$4,545 per tonne in the Keg River formation, and an assumed US$25,000 per tonne LHM according to the project economics.

Alex Wylie, the President and CEO of Volt Lithium, commented “We are very pleased with the results of the PEA. Volt’s focus on extracting lithium from oil field brines allows for significant project returns and economics that will allow Volt to grow its lithium production in a measured and responsible way.”

A Bright Future for Lithium

The U.S. Government has stated its support for lithium and the development of lithium batteries in order to reach the country’s decarbonization goals. In a document titled “National Blueprint for Lithium Batteries,” the government stated that it seeks to “secure U.S. access to raw materials for lithium batteries by incentivizing growth in safe, equitable, and sustainable domestic mining ventures while leveraging partnerships with allies and partners to establish a diversified supply.”

Alex Koyfman of Energy and Capital reported on the recent downturn of lithium prices. Koyfman compared the lithium market to the dotcom bubble, which collapsed before the tech industry took off into a major industry. According to Koyfman, “Lithium, whose universal power storage potential is playing a similarly expanding role in today’s world, is all but guaranteed to follow a similar path.”

Set to Outperform

Analyst Michael Ballanger reviewed the company on December 18, 2023, and spoke positively about the company, commenting “Despite the possibility of no lithium deficit until 2028 being a major headwind, I continue to hold VLT/VLTLF on the assumption that if CEO Alex Wiley can execute, the stock will be a substantial outperformer.” Ballanger cited a number of factors in his review of the company, including expectations that demand for lithium will increase and the company’s positive results from the Rainbow Lake property’s Preliminary Economic Assessment.

According to the company’s investor presentation, it has a number of catalysts to report, including commercial production in H2 of 2024, and ongoing efforts to scale equipment and increase resources and identify wells.

Ownership and Share Structure

Reuters provided a breakdown of the company’s ownership and share structure, where management and insiders own approximately 20.15%. According to Reuters, President and CEO James Alexander Wylie owns 11.44% of the 11.38 million shares, Director Martin Scase owns 6.47% of the company with 6.44 million shares, Director Warner Uhl owns 1.16% of the company with 1.15 million shares, CFO Morgan Tiernan owns 0.51% of the company with 0.50 million shares, Director Maury Dumba owns 0.43% of the company with 0.43 million shares, and Director Kyle Robert Hookey owns 0.14% of the company with 0.14 million shares.

Reuters reports that institutions own 1.01% of the company with 1.00 million shares in the form of U.S. Global Investors, Inc.

According to Reuters, there are 99.46 million shares outstanding with 79.42 million free float traded shares, while the company has a market cap of CA$17.8 million and trades in the 52 week period between CA$0.07 and CA$0.55.

Important Disclosures:

1. Volt Lithium Corp. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000. 
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Volt Lithium Corp.
3. Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
4. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

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