“[Lithium] prices
are going stratospheric…”
Fortune Magazine, June 2016
This report shows why lithium has only just begun an historic bull market.
PLUS: A first alert on one company — QMC Quantum Minerals Corp. (QMC.V, QMCQF.OTC) — that has discovered a lithium project with a resource dating back to the 1950s.
Dear Fellow Investor,
Today’s investing world has never seen anything like this. Lithium is in the early stages of ascendency to become the most important energy commodity in the world.
That may sound like a fantastic claim, but it’s rooted in cold hard facts and powerful trends now locked in place.
Electric vehicles and renewables will drive radical shifts in global energy, pushing billions of dollars into a commodity that was largely ignored a few decades ago.
These changes will drive enormous demand for lithium, the essential element in current battery and energy storage technology.
The Tesla Model X stands in a long list of battery-powered vehicles that are offered (or soon will be) from every major auto manufacturer worldwide. Every one of these vehicles will depend on lithium as a key element in its battery design and performance.
Were it not for the unique chemical properties of lithium, battery technology, as we now know it, simply would not exist.
And here’s the clincher: Current lithium production is unlikely to meet the soaring demand anticipated for the near future of electrically-powered vehicles and utility-scale energy storage compounds.
Today’s lithium production “will have to be strongly upscaled (possibly more than ten times, depending on the scenario) to match the future demand.”
Engineering & Technology, March 14, 2018
Do not ignore this. Lithium may be the most profitable investing opportunity of our lifetimes, and this statement is not made lightly.
New sources of lithium must be found to supply the world’s new, emerging energy technologies. Any company holding viable lithium resources today, whether in production or not, could pay enormous returns to shareholders.
Current large-cap lithium producers are meeting the bulk of today’s demand. Their share prices could double or triple into the next decade, making them an easy play for the growth-minded investor. (A list of world’s top three lithium producers can be found below.)
But gains from these large-cap companies could be mere fractions of the gains that may come from promising junior lithium companies. Lithium supplies from the major producers alone are unlikely to scale to the supplies needed for the future.
That’s where juniors will play an essential role. Unlike large caps constrained by their limitations on current resource capacity, juniors can open the door to new discoveries and incremental supplies.
That’s why junior resource companies hold the potential to pay five to 10 times the returns of large caps. And when, if they hit the numbers, their share prices can skyrocket in a matter of days.
It can pay handsomely to get at least one junior on a lithium investing portfolio…and below you will find one uniquely positioned to knock it out of the park.
Lithium: An Act Now Opportunity
When you dig into the details for the world’s evolving energy technology, lithium is much like oil was to the industrial revolution; it would not happen without it.
Topping the list for drivers of exploding demand for lithium resources are electric vehicles and utility-scale power storage, the latter of which is just now gaining traction…and posing huge unmet challenges for lithium supplies.
However, the elephant in the room is the rapid pace of change to electrically-powered vehicles (EVs).
Soaring consumer demand for new EVs coupled with government actions to move consumer fleets to non-polluting EVs is placing demands on lithium supplies never considered just a few years in the past.
In June of 2016, Fortune Magazine called it: “[Lithium] prices are going stratospheric.” This is a magazine not known for hyperbole…and it proved correct.
During that time period share prices in the top three global lithium producers soared roughly 300% to 400%!
And right now, the demand for lithium is but a fraction of what it must be to meet the future needs of consumers and what governments will require of new vehicles.
Elon Musk of Tesla states it plainly. Fortune reports Musk as saying that to meet its target of 500,000 cars a year, “[Tesla] would basically need to absorb the entire world’s lithium ion production.”
And Tesla is not the only one vying for lithium inventory.
Every major car manufacturer on the planet today is aggressively moving to electric vehicles. Some are abandoning gasoline/diesel power altogether! Volvo leads the change:
“Volvo Cars on Wednesday became the first mainstream automaker to sound the death knell of the internal combustion engine, saying that all the models it introduces starting in 2019 will be either hybrids or powered solely by batteries.”
— NYTimes, 7/5/17
Volkswagen. Toyota. GM. Ford. Virtually all are expanding to battery-powered cars.
Automakers are scrambling to get in front of this tsunami. Leading the pack now is not Tesla, but Volkswagen! Bloomberg reported on March 13:
“Volkswagen AG secured 20 billion euros ($25 billion) in battery supplies to underpin an aggressive push into electric cars in the coming years, ramping up pressure on Tesla Inc....”
“The world’s largest carmaker [VW] will equip 16 factories to produce electric vehicles by the end of 2022, compared with three currently, Volkswagen said Tuesday in Berlin. The German manufacturer’s plans to build as many as three million of the cars a year by 2025 is backstopped by deals with suppliers including Samsung SDI Co., LG Chem Ltd. and Contemporary Amperex Technology Ltd. for batteries in Europe and China.”
Wow! And automakers aren’t the only ones responding to anticipated consumer demand. Governments are demanding change as well!
Within about 20 years, roughly two-thirds of the world’s population will no longer be able to buy a gasoline/diesel-powered car.
Think about that.
India, the second most populous nation in the world with over 1.3 billion people (and growing) has mandated that by 2030, the country will only allow automakers to offer and sell electric vehicles. New gasoline-powered vehicles will no longer be legal in India. The country has already banned diesel car sales.
Projections are that with growing prosperity, Indian consumers will buy 6.5 million vehicles in 2025…and even if just half those vehicles were to be electric the impact on lithium supplies would be staggering. The Indian market alone would consume a full year’s worth of lithium production in just eight weeks!
And India is not alone in creating a breathtaking new market for the lithium necessary for EV batteries.
England has already banned future sales of new gasoline and diesel cars. Starting in 2040, no petrol-powered vehicles can be sold. And by 2050, all cars on England's roads must be zero-emission. In other words, petrol-powered vehicles will be obsolete!
The world has never seen anything like this.
France, Norway, Austria, Denmark, Germany, Ireland, Japan, The Netherlands, Portugal, Korea, Spain and the biggest of them all, China, have mandated that between 2030 and 2040…all new vehicle sales will be zero-emission vehicles.
To put the scale of this market into perspective, fewer than 1% of all vehicles on the road today are electric. Yet within a dozen years, Bloomberg reports that 35% of global new vehicle sales will be electric.
That’s roughly a 300% annual growth rate in electric vehicles. And at present, every one of those vehicles will be solely dependent on the available supply of lithium for the batteries to power them.
The market forces here are staggering to contemplate. And while it’s nigh on impossible to accurately predict if and how high prices will soar for lithium in the near-term, one thing seems certain: There’s virtually zero evidence that suggests any near-term downside in demand for lithium.
To harness the investing potential, you should act soon, perhaps immediately. The coming market changes seem inevitable and the pace is simply unprecedented.
Expect to see a massive shortfall in lithium stockpiles as vehicle and battery companies fight for every ounce of lithium they can get their hands on.
For the world’s automakers, lithium is simply a matter of survival. No other element on earth can do what lithium does in current, state-of-the-art battery technology. It is truly indispensible.
And while research may one day lead to a newer, better battery concept…there is nothing on the horizon that promises to supersede the performance and cost benefits of lithium battery technology.
The case for investing now in lithium seems obvious.
Lithium: An Act Now Opportunity
The coming demand is creating one of the most lucrative investment opportunities we may see in a lifetime. We can expect trading lithium producers to reward shareholders well, perhaps doubling and tripling in just a few short years.
But those gains may be crumbs compared to what could be made from emerging companies — like QMC Quantum Minerals Corp. (QMC.V, QMCQF.OTC) — that have the potential to successfully feed new lithium supplies to a starving market.
Seasoned resource investors recognize that enormous wealth can be made by backing early-stage junior miners.
Profits of 500% to 1,000% and higher have been reported on many juniors that ultimately prove up their resources. Whether it is gold, silver, oil, or now lithium, the proof is all that’s needed to send shares soaring.
The key to separating winners from the wannabees is understanding what the company holds in the ground...knowing the extent of the company’s resources.
Exploration and discovery lead to resource calculations. And as a company proves resources, its value rises in proportion.
In fact, a junior miner doesn’t have to bring the resource to the surface; it just needs to prove that it is in the ground. That proof alone can catapult share prices in very short order.
Quite often, juniors never mine an ounce of their resources…they’re bought out by large-caps seeking to build reserves…paying shareholders a handsome premium in the deal.
What’s unique about QMC Quantum Minerals (TSX.V: QMC, OTC: QMCQF) and why you should be looking at QMC shares right now....
Exploration juniors rarely hit the ground with known resources, but for QMC the record has been around, literally, for decades.
The company owns 100% of what they report as a known substantial lithium prospect, the Irgon Lithium Mine Project, S.E. Manitoba.
In the mid-1950s, exploration of the day estimated the Irgon mine as holding 1.2 million tones of lithium ore grading at an impressive 1.51% lithium oxide (Li2O).
The entrance to the Irgon Mine, located in the Cat Lake district, features this plaque, which reads:
Lithium Corporation of Canada commenced shaft sinking at the Irgon Mine in 1956 and did substantial development work in 1957 until work was suspended, awaiting a more favorable market for lithium oxides.
Lithium is used in special lubricants, ceramics, glass, air-conditioning units, aluminum milling and various chemical processes. Light weight lithium batteries may be used in electrical cars of the future.
There was no townsite development as the production stage was never reached. A concrete slab seals the shaft opening. The road from her south to the junction of Provincial Roads 314 and 315 was built in 1956 to provide access to the Irgon Mine.
IRGON MINE
Staked in 1926 by Peter Osis
Underground Development Commenced: 1956
Operating Period: 1956/57
Underground Workings: 241 ft. deep shaft with 1 level at 200 ft.
Production: Nil
Indicated Ore Reserves: 1,203,500 tons of lithium oxide.
Trouble is…that “Indicated Ore Reserves” total dates back to the 1950s. It’s simply out of date.
Back then, two mines in the immediate area (the Irgon and what is now known as the Tanco mine) were being evaluated for production. Both showed promise, but the lithium market in the ’50s was a fraction of what it is today. Only one of the two mines was put into production.
Even though investment had already been made in equipment and buildings to begin mining operations, the Irgon Mine was mothballed for a later date, likely to pick up production when the Tanco mine played out. Tanco is still producing to this day. As the years passed, the Irgon prospect was forgotten…except for the plaque!
However, the report of 1.2 million tons of lithium resource remains in place. And now that lithium is skyrocketing in value…QMC’s Irgon mine has become a forgotten gem that may soon be worth a fortune.
So what’s holding it back? With that amount of lithium in the ground, QMC could be trading many times its current share price.
Except its resource data is six decades out of date.
Current mining regulations require contemporary data for reporting resources. Quantum is aggressively pursuing a program to get that done. As it does, this little-known gem could soon be lighting up many radar screens.
The last hurdle to getting that new data compiled was clearing the drill permits needed from the Sustainable Development Office (“SD”) of the Manitoba Government.
In the interim, QMC has been piling up preliminary data that point to how significant their Irgon mine could be!
On February 28, the company announced samplings that returned lithium dioxide concentrations of 2.62%...about 1.7-times historical averages.
“In total, 25 grab samples were obtained from the Irgon South #1, #2, and #3 Dikes. The assay results confirm that the dikes in this area are lithium-bearing, up to 2.62% Li2O and as such, this area will undergo a more detailed sampling and exploration program during 2018.”
Five days later, QMC announced its “huge lithium anomaly”, which was an early official pronouncement of the size and scope of the Irgon prospect. This is important to note because this one announcement has very likely put QMC on some radar screens. It brings urgency to the necessity to get in front of the wave that could be taking shape now.
“The ongoing detailed channel sampling and a subsequent drill program will be required to update this historical resource to current NI 43-101 standards. Historic metallurgical tests reported an 87% recovery from which a concentrate averaging 5.9% Li2O was obtained.”
The extent of QMC’s new findings was confirmed on March 9 when the company announced that its surface sampling returned lithium grades that substantially exceeded historical data!
“144 channel samples (over 139.1m) were obtained from 11 sawn channel cuts across the width of the Irgon Dike.”
“The best channel sample interval returned 1.43% Li2O over 18.0m - including 1.73% Li2O over 14.0m.”
“Lithium grades of up to 4.31%, 4.0% and 3.05% Li2O over one metre intervals were reported in the assay results.”
Now this: On March 14, QMC Quantum Minerals Corp. announced it has obtained the drilling permits needed to prove up its resources to the aforementioned NI 43-101 standards.
“The Company is currently in the process of requesting and assessing bids from drilling contractors prior to initiating a 2,000 metre drill program designed to confirm both the historic Li2O assays received from the 1953/54 drill program and those obtained from historic sampling across the six crosscuts on the 200-foot level in the underground workings. These historic results are reported in Manitoba Assessment Report #94932.”
“Data received from this drill program in addition to the results of the recent surface channel sampling program on the Irgon Dike (QMC News Release of March 05, 2018) will be compiled by QMC to update the non-NI43-101 compliant historic resource of 1.2 million tons of 1.51% Li2O to current NI43-101 standards.”
Once that update to current standards is complete, QMC’s current share price may be well passed in the rear view mirror.
What To Do Now…
Start with your due diligence! Investing in any mining company carries risk and it can be substantial with a junior like QMC Quantum Minerals Corp.
But remember, high risk can yield high reward.
However, for more aggressive investing with an eye toward much larger returns, take a hard look at QMC Quantum Minerals Corp. (QMC.V, QMCQF.OTC)…and do it quickly.
The pace of QMC’s progress toward re-certifying its historically shown lithium resource should quickly garner attention from professional traders. Company announcements along with the well-known history and proximity to the currently producing Tanco mine may quickly shine a bright light on their progress.
The time to get engaged is now.
Always remember, past results do not ensure future returns. But soaring new demand for an essential element to power the world’s energy future sets the stage for massive growth in the lithium market.
Since the turn of this century, lithium prices have more than tripled…and this could just be getting started. Demand for lithium seems inevitable. Pressure on the supply side should be enormous.
Profit-seeking investors may do very well by getting in front of this wave now.
CLICK HERE to learn more about
QMC Quantum Minerals Corp. (QMC.V, QMCQF.OTC)
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