UBS conducted a study of how the commodities sector would change in a 100% electric vehicle world.
Lithium’s demand will rise thirtyfold. Electric vehicles currently make up a tiny 1% of global supply, and by 2030, it will be 16%. We’re going to see 16 times more electric vehicles in one decade, and by 2040, estimates are that 50% of global cars will be electric.
The trend couldn’t be more concise and definite. As the global population grows, and for the first time in human history becomes more than 50% urban, pollution will be a major cause for disease in metropolitan cities, putting a drag on healthcare systems, work commuting, real estate prices, and irregular weather phenomena.
Governments are taking great measures to limit gasoline consumption, and it’s only going to intensify.
But the reason why I’m putting Bearing Lithium (TSX-V: BRZ & US: BRGRF) at the top of the list of lithium companies is that I don’t have to complicate my evaluation of long-term growth for lithium-powered cars – this investment is a 6- to 12-month holding in anticipation of a takeover for 3 times the current price, as I see it.
It’s Portfolio Wealth Global’s highest-ranked potential takeover stock, bar none.
Looking closely at their balance sheet and near-term obligations, it’s one of the most solid financial companies in the junior mining sector.
They have CAD$2M, and with warrants in the money, that’s going to reach CAD$6M. There’s ZERO debt, and the Maricunga project is being advanced with zero costs to Bearing Lithium (TSX-V: BRZ & US: BRGRF) whatsoever.
Again, going forward, BRZ’s joint venture partner on Maricunga, the world’s highest-grade pre-production lithium brine asset, will put up all the cash needed to get it to what I call “takeover-ready.”
This is the roadmap President and CEO Jeremy Poirier and I went into detail about over the phone.
Because Mr. Poirier has already sold his previous company into a partnership with EV leader, Elon Musk’s Tesla, it’s clear that Jeremy knows exactly how to plan out a takeover timeline.
As you can see, by December of 2018, 15 months away, the Definitive Feasibility Study will be completed and the true economic and technical performance of the Maricunga project will be known to all prospective bidding parties.
Until then, Bearing Lithium (TSX-V: BRZ & US: BRGRF) will watch its JV partners spend CAD$22M on the Maricunga project while they remain free of any obligation.
This means there’s no dilution to us, as shareholders, at all. Avoiding the issuing of new shares or raising debt while growing a company to potentially triple the size is how Bill Gates managed to become the world’s richest man. It’s the key to huge gains in natural resources, and Jeremy Poirier negotiated this JV in a masterful manner.
I plan to update you on the company’s progress and cover the advancements into a potential takeover in our newsletter.
37 days of research have brought us to this point. We now know that Bearing Lithium (TSX-V BRZ & US: BRGRF) is:
- The most undervalued company of its kind out there.
- Advancing the Maricunga project to production, the world’s highest-grade lithium brine project.
- Loaded with cash, with no debt and JV partners who will spend the remaining CAD$22M until the Definitive Feasibility Study. In other words, there’s no dilution to shareholders.
- Led by Jeremy Poirier, which I put in the top 5 young CEOs of the natural resource sector. He has already flipped his previous lithium company and has the tools to repeat this in the next 6-12 months.
The insiders will have a total of 16% of outstanding shares by next year, and having that much skin in the game is precisely what we want to see from management.
I’ve saved the best for last because it’s important to understand that Maricunga sits at the heart of the lithium capital: Chile.
All existing lithium currently being mined is sourced either from brines, for which Chile and Argentina dominate global production, or hard rock conventional mines, for which Australia dominates global production. In comparison of the two, brines are easier and less capital-intensive to explore and delineate resources, can have shorter time frames to develop, and have lower operating costs once in production.
It’s a world-class asset, and we can own part of it as shareholders of Bearing Lithium (TSX-V: BRZ & US: BRGRF).