El Sauz - Fleur, estimated to be able to produce 69,000 tonnes per annum (tpa) of battery grade LCE (Lithium Carbonate Equivalent) with a Net Present Value (NPV) of US$2,023 million
La Ventana, estimated to be able to produce 35,000 tpa of LCE with a NPV of US$848 million
Both mines have a 20 year mine life and REM holds a 40.1% in El Sauz- Fleur and 14.4% in La Ventana.
Yangibana, Australia, estimated to contain Rare Earth Element (REE) deposit of 5.56 million tonnes of Total Rare Earth Oxides (TREO) with a NPV of US$950 million of which REM has a 30.0% interest.
Kings Valley, Nevada, estimated to contain 0.49 million tonnes of LCE with an NPV of US$552 million of which REM holds a 3.0% interest.
Greenland with Exploration licenses surrounding Kvanefjeld deposit which REM has a 100% interest.
No production has started yet. So when the time comes for production to start there could be some dilution or heavy borrowing. This is the risky part of the investment. Also because this is in the UK AIM expect some wild fluctuations too.
The share has been trading in the 1.00 - 1.20 pence in the last 2 weeks. It has a 52 week low of 0.40 pence and a high of 2.07 pence.
Why I think REM is a BUY:
. EL Sauz - Fleur and La Ventana are in Mexico and across the border in the US is the proposed Tesla gigafactory and Ford assembly plant. We all know that the trend is moving towards electric cars.
. Tesla just announced that their new product will be Lithium batteries to power homes.
. The price of Lithium is expected to increase from US$6,000 per tonne to US$8,000 per tonne in the near future.
. Standard Life has more than 4.6% stake in REM.
My disclosure: I do not own any REM shares currently, but will consider to invest in the next few months.
Still always do your own research as our risk appetite often differs.
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