With the U.S. intent on becoming less dependent on China for lithium-ion batteries, Cypress Development’s (CYP.V; CYDVF.USOTC) Clayton Valley Lithium Project promises to spark a re-rating in the company’s share price.

Pilot studies have demonstrated Cypress’s ability to produce battery-grade lithium carbonate from the large Nevada project.

Now, as the company heads towards feasibility, it’s de-risking Clayton Valley at a rapid rate.

Dear Fellow Investor,

Sometimes bargains in the resource space are obvious.

That’s certainly true in Cypress Development’s (CYP.V; CYDVF.USOTC) case.

Here is a company that is trading at half of its value from November 2021, and yet has made amazing strides de-risking its large Clayton Valley Lithium Project in Nevada in the months since then.

Consider this: In the past nine months, Cypress has raised $18.1 million...added a neighboring resource to the already-large deposit at Clayton Valley...successfully extracted lithium from their lithium-bearing claystone…and has produced enhanced battery grade lithium carbonate.

All the while, the company has been steadily moving Clayton Valley toward a feasibility study that’s due out in early 2023.

In other words, this is a far better company today than the one that was selling for twice the price.

There’s no doubt that, combined with recent share weakness, this string of events has set Cypress Development up as one of the most attractive bargains in the lithium space.

The Power Of Battery Grade

It starts with that battery-grade lithium carbonate result, released just a couple of weeks ago.

Using a lithium concentrate provided by Cypress’s pilot plant south of Clayton Valley, processing firm Saltworks was able to create a lithium carbonate product at 99.94% purity.

That’s plenty pure enough for electronics lithium battery production and, better still, also pure enough for electric vehicle battery production.

And it puts Cypress Development in an extremely exclusive club of companies that can supply such pure and highly desirable lithium...and as one that can help build out the desperately needed U.S.-based lithium supply chain.

Recent Property Addition Poised To Make Economics Even Richer

Cypress had big news on the acquisition front this year as well, acquiring Enertopia and its adjacent resources in the Clayton Valley.

Cypress believes it can use the additional resources to widen the pit at Clayton Valley, allowing for cheaper extraction of the lithium clays there.

As of the most recent resource estimate for Clayton Valley, the project already contains a 40-year mine life worth of lithium — so making those resources cheaper to mine would be a huge win.

And the economics are already eye-popping: According to the pre-feasibility study, the project could generate $1.03 billion in after-tax net present value, discounted at 8%. It could produce 27,400 tonnes of lithium carbonate per year over that life.

The Pieces Are In Place

Add it all up, and we see that the pieces are in place for a major re-rating of Cypress Development.

Consider that in 2021, when the PFS was amended from 2020, it used a base case price for lithium carbonate of $9,500/tonne.

Today, spot lithium carbonate is trading at $80,000/tonne.

Now granted, the contract prices for lithium carbonate will likely be more in the $40,000/tonne to $50,000/tonne range over the long term.

But with estimates of operating costs for lithium at Clayton Valley at $3,387/tonne, you don’t need to have been a math major to see Cypress Development stands to generate extraordinary returns.

Even better: The sky-high prices for lithium will overwhelm any increase in costs due to inflation.

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Rapidly De-risking — And On Sale

Consider the advantages Cypress Development has going for it:

• It’s fully financed to a production decision...

• It has a long-lived resource on an advanced-stage lithium project...

• It has access to a direct lithium extraction (“DLE”) process that produces 99.5% lithium recovery...

• It has made battery-grade (99.94%) lithium carbonate from its pilot plant lithium concentrate...

• It has a Nevada-based project at a time when the U.S. is desperate to strengthen its domestic supply chain of lithium.

Moreover, Cypress Development is one of three lithium companies in Nevada that has announced battery-grade production, and the only one to have announced enhanced battery grade lithium carbonate purity.

With a share price half of its recent highs...a market cap that’s a fraction of its lithium peers...and a valuation that’s currently a small fraction of its $1.03 billion NPV...this company has the potential to soar as it hits the catalysts lying directly ahead.

Factor in the growing tensions between the U.S. and China over Taiwan, and you can see that Cypress Development is perfectly positioned for the domestic lithium bull market that’s not only already in place, but could explode to even higher levels.

If you like lithium’s long-term prospects (and you should), you’ll want to look at Cypress Development now.

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