Rodney Hooper: Absolutely Don’t Buy into This Type of Lithium Company

Interview by Charlotte McLeod, article by Priscila Barrera.

Lithium companies have had a challenging 2019 to say the least, despite demand growing by double digits and optimistic expectations for the 2020 decade.

Speaking with the Investing News Network at this year’s Mines and Money London, lithium consultant Rodney Hooper said it is important to understand the evolution of the lithium industry.

“The requirements of the specifications for lithium chemicals to meet battery specifications and the warranties in the electric vehicles to be sold is at a far higher and stricter standard than in the past,” he said. “Companies are having to evolve with tightening requirements and getting their impurities down.”

Hooper also shared his thoughts on what makes a high-quality lithium asset.

“Ultimately, what is also important is who is behind the steering wheel, who is processing the material,” he said. “You can take a very good asset and still not produce a very good product — you have to look at something that is comprehensive look at what makes a quality lithium project and company.”

The expert also talked about what type of companies investors should absolutely not buy into.

Speaking about lithium extraction, Hooper said he is interested in direct lithium extraction technologies that are coming up, despite the fact they are not complete disruptors, as the capital and operating costs requirements are not materially less in most instances.

“What they have the potential to do with direct lithium extraction most importantly is remove impurities and produce a consistent product,” Hooper said.

He also shared what companies he likes right now, saying that stable jurisdictions with a reasonable operating cost base and lower taxes are going to be a recipe for high returns.

Listen to the full interview with Hooper above. You can also click here for our full YouTube playlist from Mines and Money London.

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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.