Sign In  |  Register  |  About Burlingame  |  Contact Us

Burlingame, CA
September 01, 2020 10:18am
7-Day Forecast | Traffic
  • Search Hotels in Burlingame

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

In The Right Sector At The Right Time…Recharge Resources Stock In Play As Demand From The EV Battery Metals Sector Soars (OTC: SLLTF)

In The Right Sector At The Right Time...Recharge Resources Stock In Play As Demand From The EV Battery Metals Sector Soars (OTC: SLLTF)

Never in the history of the world has there been a more significant push to eliminate fossil fuels. From coast to coast, border to border, countries are lining up to "go green." Even the biggest oil-producing nations acknowledge the inevitable change is on the horizon. Still, the best they can do is to slow the process, because, at the pace at which the EV revolution is ramping, they may be selling a near-obsolete good within the next two decades. However, bad news for them is excellent news for EV battery metals explorers. And not just the mining behemoths. Emerging nano-caps like Recharge Resources (OTC: SLLTF) (TSXV: RR) are also ideally positioned to cash in huge from an EV market expected to reach the trillion-dollar level by 2035.

And that estimate is a conservative one. At an expected CAGR of 18.2% over the next eight years, eclipsing the trillion-dollar mark could happen much sooner than that. Still, that's broad market talk. The better discussion is for how investors can cash in on the booming market by finding the right companies at the right time that are positioned to capitalize on the massive opportunities. As noted, publicly-traded Recharge Resources (SLLTF) is one to watch. In fact, this company is worth more than making it to a watch list; its stock presents an actionable and compelling investment opportunity.

The better news- SLLTF stock is still early for the taking, with its nano-cap stock price presenting an investment opportunity that is, to use the bullish expression, too good to ignore. Why?

Massive Market, Massive Need For Metals

Because SLLTF is in the right markets at the right time by targeting the urgent need for lithium and nickel. Already, the U.S. market alone could account for a more than 16X increase in the need for EV batteries, and adding on the global market demand, that number is significantly higher. But the better news for companies like SLLTF is that the EV battery metals market is just now heating up. And just months from now, it's expected to be red hot.

The proof is there to see. Over the past five years, EV sales have been soaring, reaching more than 17 million vehicles sold, which amounted to over $140 billion in revenues for manufacturers and components suppliers. But, here's the best part for those considering exposure to the sector- over that same period, those EV sales accounted for only about a 3% share of the total vehicles sold. That signals that the industry, and the companies contributing to its growth, are still in the earliest stages of maximizing its near and long-term opportunities. Better yet, all players in the sector should benefit from incentivizing legislation intended to put a considerable revenue-generating tailwind at their backs. Recharge Resources included.

Currently, federal initiatives are blazing through the legislative process to provide billions in EV infrastructure buildup capital to large and small companies. Those grants, awards, and contracts aren't only for a selected few, either. Small companies like SLLTF are also in line to benefit from the investment programs, especially as the domestic demand for critical EV battery metals is already scoring record levels. And that need is just taking into account the U.S market. Interest from the global market is skyrocketing as well. Best of all, from a Recharge Resources (SLLTF) investor's perspective, demand from any jurisdiction shows no signs of slowing.

On the contrary, growth is staggering.

EV Sector Can't Grow Without Battery Metals

But, here's the thing- it's impossible for the EV sector to grow appreciably without the batteries required to power the vehicles. Even the most ambitious plans become nothing more than well-designed engineering projects without the battery metals needed to fuel the cars designed for production. That means that forward-thinking companies, like Tesla (NASDAQ: TSLA), for example, do the groundwork to ensure they can power output. In other words, they are trying to buy as much lithium, nickel, and other battery metals as possible.

Moreover, they don't care if the supplier is a billion-dollar market cap miner or a developing company like SLLTF. Those that can supply the goods get the contracts. Keep in mind TSLA is just one player. More than 20 manufacturers can now be referred to as "major," and the one thing in common is that they all need the same metals to power their creations. Simply put, the best car designs and features become nothing more than pricey museum pieces without a battery to fuel them.

Thus, it should be no surprise to read that while the EV battery market is getting red-hot, it's about to get scalding, especially with an expected 185% annual growth in the U.S. battery market alone over the next decade. Hence, the more excellent investment opportunity may not be in the auto manufacturers themselves but rather in the companies that power the industry. That consideration would be similar to buying stock in a chip supplier that allows Apple (NASDAQ: AAPL) iPhone to operate seamlessly from function to function.

In other words, while valuations at the top of the production chain can get stretched, the under-the-radar opportunities, the component suppliers, may still have appreciable room to run higher. Thus, investing in the power behind the end product can also deliver significant returns without the daily headline risk. Understanding the value inherent to that investment strategy and how Recharge Resources is positioning itself to capitalize on near and long-term revenue-generating opportunities makes the investment proposition in SLLTF even more compelling.

The Assets To Drive Value

By the way, don't confuse Recharge Resources' (OTC: SLLTF) low-priced stock with its ability to compete. They are ideally positioned to earn a share of the billions of dollars at stake and create significant shareholder value in the process. Remember, almost every metals exploration starts out with the markets not giving them much market-cap respect. But that changes quickly, sometimes overnight, once a company shows it's not a sideline participant.

Recharge Resources is proving that to be the case. And more than in the game, they have positioned themselves to become one of the early and important resources for lithium and nickel in North America. How vital to the market is SLLTF's transition from explorer to a contributor? In two words, incredibly valuable.

Because if the EV industry succeeds in its 50% growth objective, they would need a more than 1600% increase in battery manufacturing. And that's just to keep pace. To support inventory builds and help eliminate production delays, a more appropriate ramp to battery manufacturing could exceed 2000% growth. Of course, that means demand for the metals soars as well.

Remember, without batteries, the EV industry stalls. There is no in-between gap-stop like there is with combustion engines. Recall, too, how oil changed the world over a hundred years ago when auto manufacturing exploded in size and investors made massive fortunes. Oil was the linchpin to making an investment into that industry a generational trade. Now, it's happening again.

Lithium, Nickel, And Cobalt- Not Oil

But this time, it's not oil. Lithium and nickel are now center stage. And investors in exploration companies like Recharge Resources, Ltd., which have their mission set around unearthing those metals, could also earn life-changing fortunes, especially from current SLLTF share prices exposing a ground floor opportunity.

The better part of the SLLTF proposition is that they are exploiting its market opportunity with a tailwind by being one of the very few early-stage resource exploration companies actively developing lithium and nickel resources in North America. That's not all. They are adding a third shot toward revenue-generating goals by including the sale of cobalt in its business pipeline.

And SLLTF isn't only a long-term play. Recharge Resources is already moving forward on its current lithium and nickel projects, and that near-term focus alone is worth potentially billions. But, as noted, SLLTF is putting a third asset into its revenue-generating mix- cobalt. It, too, is a critical element when producing batteries, and surprisingly it has virtually no production in North America. And even though cobalt is used fractionally compared to other metals, its demand is no less critical than other battery metals. Moreover, its price is also spiking, selling at a premium price because of its domestic production scarcity.

The cobalt factor puts Recharge Resources in another one of the right markets at the right time. Better yet, SLLTF could earn a sizable market share after reporting being in the early stages of proving its resources to potentially become the first North American cobalt resource brought into commercial production.

Notably, like its others, this opportunity can drive shareholder value ahead of the dig. And with SLLTF's objective to become one of the foremost battery metal exploration companies in the market today, adding another vital battery metal to the portfolio mix could lead to potentially significant increases in its share price, too. Remember, stocks tend to trade on a forward-looking revenues model, and assets in the ground also can add considerably to a market cap.

Projects And Assets To Create Enormous Value

That's a likely scenario based on SLLTF's working portfolio. Its Murray Ridge nickel project alone is worthy of dwarfing its entire market cap. Recharge Resources secured 8,300 total claim acreage on significant nickel discoveries previously reported in 2013. SLLTF currently targets areas where the best nickel ore sampling results were obtained. And if exploration and development objectives post as intended, they could be selling into considerable demand. Indeed, while the markets may be overlooking the importance of nickel, buyers aren't.

Elon Musk, CEO of Tesla (NASDAQ; TSLA), recently said that nickel is their biggest concern for scaling lithium-ion cell production. And since the vast majority of the world's nickel production is mined outside of the U.S and Canada, other manufacturers are also paying attention. And with a political climate exposing the value of producing state-owned resources, companies like SLLTF could benefit from expedited regulatory approvals to mine these much-needed metals. Check this out, too. When SLLTF gets nickel to the markets, Elon Musk said, "Tesla will give you a giant contract for a long period of time- if you mine nickel efficiently and in an environmentally sensitive way." Knowing that should incentivize SLLTF to move even quicker on its projects.

Best of all, the nickel quality could be top-grade, reportedly analogous to the geologically adjacent Decar Nickel project to the southwest. And, remember, SLLTF isn't going into the Murray Ridge project short on optimism. The location was previously explored, and nickel resource potential was identified in 2013 through a report issued by Nanton Nickel Corp. That report, by the way, is bullish on the mining proposition.

From a valuation perspective, that's excellent news. And despite nickel being conspicuously absent from the metals markets rally, things are changing. The new bullish sentiment makes sense, especially with nickel being a critical metal needed in battery production. The greater news for SLLTF and its investors is that metals buyers are starting to bid nickel higher. Over the past five years, nickel prices have been steadily climbing to trade at around $19,000/ton, a roughly 250% increase since its 2017 low. Best of all, the trend higher isn't slowing; it's accelerating.

And the reasons why are clear.

Avoid A Massive Nickel and Lithium Shortage

Foremost, demand is outstripping supply. And the U.S. could find itself challenging a nickel supply crisis if action isn't soon taken. Even President Biden's EV announcement showed that the EV metals sector is in store for another boom cycle. In a 2019 report, projected metal requirements for EV batteries pre-Biden was: 17 kt for lithium, 14.4 kt for cobalt, and 65 kt for nickel. But, it included that by 2030, those numbers project a 1,088% increased need for lithium, 625% for cobalt, and a staggering 1,423% for nickel. Then factor in that Biden is calling for a 16X increase in EV sales; even those lofty demand expectations could prove appreciably conservative.

But know this. SLLTF doesn't need to bring these valuable metals above ground. Just proving they have them can send its share price soaring. Remember, assets in the ground are still a value driver. Just look at the gold miners as a comparison.

Keep in mind too, lithium is also an SLLTF value driver not to be ignored. There, Recharge Resources is looking to book value from its Georgia Lake lithium projects located in the Thunder Bay Mining Division in northwest Ontario. This operation puts lithium discovery well into the revenue-generating crosshairs, especially with SLLTF moving quickly to seize potential value in the dominant RockTech Lithium project.

Strategic moves landed substantial claims on the north and southwest boundaries of the Georgia Lake lithium trend, which could become a pathway for developing and monetizing future RockTech production. By the way, millions of tons have been estimated to remain underground. In fact, a report from 2018 showed that 144,861 tonnes of measured, indicated, and inferred lithium resources could be tapped.

So, does the sum of SLLTF's parts, which offers exposure to several of the most lucrative battery metals markets, present an attractive investment thesis? In a word, Yes.

Seizing Value Sooner Than Later

But, the valuation disconnect may not last much longer. Recharge Resources (SLLTF) shares could be a single survey report away from moving exponentially higher. Thus, being timely to this trade is a wise consideration.

Undoubtedly, the bull run in battery metals is here to stay. Normal fluctuations aside, and with demand far exceeding supply, price trends for each metal are likely to steepen. And knowing that North America is now focused on securing its energy independence, prices could surge faster than many ever expected.

Remember, too, the U.S. infrastructure program is the biggest since the interstate highway initiative decades ago. And over the next several years, billions of already approved spending dollars will be put to work nationwide to enhance charging station infrastructure to pump power to the batteries needed to support the successful EV sales initiatives.

A Breakout In 2022

So, here's the bottom line. For everything to fall in line on the EV front, companies like SLLTF will need to be contributing partners. There's simply too much demand to be filled by just a handful of large mining operations. That means even by filling a niche, billions of revenue dollars are likely available to SLLTF.

Still, as noted, just proving assets in the ground can be a windfall for Recharge Resources. And a report indicating reserves could be imminent. Thus, being early to this trade could have its advantages. Some expectations suggest SLLTF prices could surge above the $1.00 level in the coming quarters. Is that an overly ambitious target? Not necessarily, especially if SLLTF can prove it's sitting on assets.

So, do this...go to the Recharge Resources website and learn how they are better positioned than ever to create shareholder value in the coming days, weeks, and quarters. Then, consider the value SLLTF can add to a portfolio by providing investment dollar exposure to the massive EV sector. Doing so may catch an emerging company at an opportune time and potentially lead to triple-digit percentage gains in quarters from now, not years.

It's fair to say that SLLTF is undoubtedly in the right markets at the right time. It's also fair to include that Recharge Resources has mitigated its downside risk by operating near projects with proven and potentially massive reserves. In the mining industry, past performance can be a reliable indicator of future success. Thus, pay attention to the investment opportunity because at current prices, SLLTF presents a compelling one. And, moreover, a timely one at that.

 

Disclaimers: Shore Thing Media, LLC. (STM, LLC.) is responsible for the production and distribution of this content. STM, Llc. is not operated by a licensed broker, a dealer, or a registered investment adviser. It should be expressly understood that under no circumstances does any information published herein represent a recommendation to buy or sell a security. Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The information made available by STM, Llc. is not intended to be, nor does it constitute, investment advice or recommendations. The contributors may buy and sell securities before and after any particular article, report and publication. In no event shall STM, Llc. be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or made available by STM, Llc., including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information in this video, article, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. STM, Llc. strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D. For some content, STM, Llc., its authors, contributors, or its agents, may be compensated for preparing research, video graphics, and editorial content. STM, LLC has been compensated up to ten-thousand dollars cash via wire transfer by a third party to produce and syndicate digital content for Recharge Resources, Inc. for a period of one month. As part of that content, readers, subscribers, and website viewers, are expected to read the full disclaimers and financial disclosures statement that can be found on our website by visiting primetimeprofiles.com/disclaimer.

The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled.

Media Contact
Company Name: STM, LLC.
Contact Person: Michael Thomas
Email: contact@primetimeprofiles.com
Phone: 973-820-3748
Country: United States
Website: https://recharge-resources.com/


Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 Burlingame.com & California Media Partners, LLC. All rights reserved.