Argentina Lithium & Energy Corp.
A Stellantis-Backed Junior Trading Below Cash
Published: 7/24/2024
Author: FRC Analysts
*See important disclosures at the bottom of this reportSector: Basic Materials | Industry: Other Industrial Metals & Mining
Ticker Symbols:
LIT.V - NEO 🔹
PNXLF - NASDAQ 🔹
- Argentina Lithium (LIT) is advancing a portfolio of four pre-resource stage lithium projects across four salars (salt lakes) in Argentina. Argentina is the fourth largest lithium producer in the world, with the third largest reserve-base.
- Since our previous report, Stellantis (NYSE: STLA), the owner of auto brands such as Fiat, Peugeot, and Chrysler, acquired a 19.9% stake in LIT’s projects for US$90M, making it one of the largest deals by a lithium junior. We view this as a significant vote of confidence in LIT’s portfolio. The deal valued LIT's projects at $610M (for 100% interest) or $489M (for LIT's 80.1% interest) compared to LIT's current MCAP of just $22M, representing a 95% discount. In our July 2022 report, we had valued these projects at $36M.
- Drilling at its flagship project (Rincon West in Salta province) has delineated a 5 km long x 3.3 km wide x 0.20 km thick mineralized aquifer. All 12 holes of a maiden drill program (ta