Critical Elements Corp, Sell-off Unwarranted

Critical Elements Logo2

Critical Elements (TSXV:CRE,OTCQX:CRECF,FWB:F12) is an emerging specialty metals company focused on its Rose Lithium-Tantalum (“RL-T”) project near James Bay, in northern Quebec.  Last year the Company signed a strategic Collaboration Agreement with leading global chemical company HELM AG that includes 100% take-or-pay off-take for all products produced, at market prices.

Watching the lithium industry develop, the only thing that’s certain is change.  The fact that HELM will take-or-pay all that the Company makes, is a really big deal.  A take-or-pay agreement with a giant, creditworthy counter-party, will facilitate the Company’s efforts in obtaining debt financing.  I think the HELM Collaboration Agreement is the best strategic partner arrangement in the lithium juniors sector.

Critical Elements Corp.’s (“CEC”) PEA highlights a 99.98% purity, low-cost, hard rock lithium project with a pre-tax NPV(8%) & IRR of C$488 million & 33%, respectively (assuming a US$6,000/Mt Lithium Carbonate (“LC”) price).  The RL-T project benefits from a source of very low-iron spodumene concentrate, ideally suited for the glass & ceramic markets.  Both technical & battery-grade lithium production is planned, with technical grade likely available in 2019 and in battery-grade markets 18 months thereafter.  If successful, this would allow CEC to generate earlier cash flow to support development and commercialization of battery-grade lithium products. [See: October Corp Presentation]

Lithium stocks are down across the board, I count 50 that are down 50% – 91.3% from 52-week highs.  The reason is simple, there’s a bubble in lithium juniors (but not in lithium).  Clearly, some air is leaking out, actually, a lot of air.  However, the sector-wide downdraft has punished potentially viable companies as well as the terminally ill.  This could represent an attractive buying opportunity.  Look no further than Critical Elements Corp.  (TSX-V: CRE) (US OTCQX: CRECF) (FSE: F12).  Shares are down from C$0.75, but up 26% from C$0.42 to C$0.53 in the past week.  The next 3 months will be very interesting.

Read the full report.

Connect with Critical Elements (TSXV:CRE,OTCQX:CRECF,FWB:F12)  to receive an Investor Presentation.

Get the Latest Lithium Investing Stock Information

Get the latest information about companies associated with Lithium Investing delivered directly to your inbox.


By selecting company or companies above, you are giving consent to receive email from those companies. And remember you can unsubscribe at any time.


Leave a Reply