Argentina Lithium & Energy Corp.
A Stellantis-Backed Junior Trading Below Cash
Published: 7/24/2024
Author: FRC Analysts
Sector: Basic Materials | Industry: Other Industrial Metals & Mining
Ticker Symbols:LIT.V - NEO 🔹PNXLF - NASDAQ 🔹
Rating and Key Data
| Metrics | Value |
|---|---|
| Current Price | CAD $0.16 |
| Fair Value | CAD $0.4 |
| Risk | 5 |
| 52 Week Range | CAD $0.16-0.63 |
| Shares O/S (M) | 135 |
| Market Cap. (M) | CAD $22 |
| Current Yield (%) | N/A |
| P/E (forward) | N/A |
| P/B | 0.3 |
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Report Highlights
- 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
