Investors have become increasingly interested in lithium shares over the past decade or so. We’re no different here at IBR, and we’re more than happy to have found a company in this space that we really like.
Lithium is a soft silver-white metal that has been used in many forms since it was first discovered and then isolated in 1817 and 1821 respectively. The first major commercial use was in high-temperature lithium greases for aircraft engines and similar applications in World War 2. It’s widely used today in the creation of heat resistant ceramics and glass, metallurgy, silicone nano-welding and is an important compound in many chemical and industrial processes including nuclear fusion. It is also found in psychiatric pharmaceuticals developed for the treatment of conditions such as bipolar disorder, schizophrenia and major depression.
The uptake in interest over the last decade is in no small part related to the widespread adoption of rechargeable lithium-ion batteries for electronic devices. Demand for such devices exploded in the 2000’s. Smart phones, tablets, portable power tools and laptops have become commonplace, exacerbating the demand for lithium. The global market for lithium doubled from around $4 Billion in 2005 to over $8 Billion in 2010. It was during this time that investors began to pay much closer attention.
The introduction of electric vehicles (EVs) around this time was the catalyst for another massive phase of growth for the industry. Many governments and organisations worldwide have made commitments to remove fossil fuelled cars completely, in some cases providing subsidies increasing demand for EVs. By 2015, batteries for EVs became the largest segment of the market. A recent report stated the global market for lithium-ion batteries is expected to grow from $29.68 Billion in 2015 to $77.42 Billion by 2024 with a CAGR of 11.6%. Some experts have even projected that the demand will far exceed the supply by 2025!
AIS Resources Limited (TSX.V: AIS | OTCQB: AISSF) is the first lithium exploration company to hit the IBR radar. AIS Resources has two projects in the world-renowned Lithium Triangle. The Lithium Triangle is an area in South America that produces about half of the world’s lithium, and contains roughly 70% of all known global lithium reserves. The Company is focused on its projects in the Guayatayoc and Salinas Grandes regions of northern Argentina, and advancing them towards production in order to meet the growing global demand from the battery sector.
The trenching has already begun at the Salinas Grandes site and the company recently announced they have completed the geophysical analysis phase at the Guayatayoc Salar site with outstanding results. Preparations have commenced to begin the drilling program. Considering the landscape of lithium exploration, and the outlook for the two projects mentioned, we believe AIS is undervalued compared to its peers.
Our subscribers already know that we would never back a company without an exceptional management team, and AIS is no different. The team at AIS have in-depth experience and expertise in lithium exploration. CEO Phillip Thomas has spent the past 14 years exploring for lithium, as well as developing and operating production plants and processing facilities.
Chief Chemical Engineer – Dr. Carlos Sorentino specialises in the valuation, planning, development and management of exploration projects. He has established and completed a number of significant exploration projects as well as some major lithium projects in Argentina.
We’re big believers in AIS Resources and expect big success for the company over their exploration timeline. It has two exciting exploration sites in the location with the largest known concentration of lithium reserves on the planet, as well as a trustworthy and experienced team to oversee the projects. We expect big things in the coming months with this company.
IBR will release a full report on AIS Resources in the coming weeks.
*prices are displayed in USD
Symbol: AISSF AIS
Exchange: OTC TSX.V
Stock Price: 0.081 ($US) 0.10 ($CDN)
Market Cap: 4.36M
52 Week Range: 0.07 – 1.22
Shares Outstanding: 52M+-
P.S. The drilling should start this Sunday. Results will start to come in over the coming 2 weeks. If they are what we think they could/should be, the stock is in for a violent move upward. No reason why AIS can’t trade up to .75 ($CDN) quickly. ?