The Conversation (0)
Writing for Seeking Alpha, the Critical Investor suggested that Nemaska Lithium (TSXV:NMX) “could be one of the most interesting lithium plays out there.” The author saw the company as currently undervalued, and while he admitted that Nemaska has a ways to go in terms of permitting, financing and construction, he suggested that if all goes well, “this junior could easily become a multibagger.”
As quoted in the publication:
- Nemaska Lithium has one of the best hard rock lithium deposits worldwide.
- The Whabouchi project, located in mining friendly Quebec, has the second highest grade of lithium oxide and the largest hard rock reserves.
- A Feasibility Study has been completed this year, generating solid results with an after tax NPV8 of $581M and IRR of 21%.
- The project can focus, through deposit characteristics and patented processes, on producing the more profitable lithium hydroxide.
- Based on a NAV/market cap peer comparison I estimated a current fair value of $0.26, for a profit of 73%.