Nemaska Lithium Inc.

Nemaska Lithium Inc. is a development company with a high-grade lithium asset and patent-pending processes to produce high purity lithium hydroxide and lithium carbonate using electrolysis technology. The company's key asset is the Whabouchi deposit located in Quebec, Canada. At an average grade of 1.53% Li2O, it is the second richest hard rock deposit in the world. Nemaska Lithium has also developed a proprietary process to produce lithium hydroxide, a compound which is expected to outpace all other raw materials (including lithium carbonate) in battery applications. Nemaska Lithium is predicting to produce lithium hydroxide at competitive prices to its peers and, in many instances, at a lower cost.

Expert Comments:

David Talbot, Dundee Capital Markets (2/2/16)
"Nemaska Lithium Inc. received the first installment of $2.1M of $12.7M expected from Sustainable Development Technology Canada. Arrival of this cross-conditional grant provides added confidence that funding from Johnson Matthey ($12M pre-payments), Investissement Quebec ($10M equity) and the Quebec government ($3M grant) is all but ensured in the short term, providing all phase 1 LiOH demonstration plant construction, operating and working capital required over three years."

"We recently initiated coverage on Nemaska Lithium Inc. with a Buy rating and a CA$1/share target. This is Canada's only significant, public lithium developer. Its world-class Whabouchi project in Québec is large and homogeneous, with high grades and low levels of impurities. The project is fully permitted and Nemaska has signed a MOU with London-based Johnson Matthey Battery Materials for $12M to get its phase 1 lithium hydroxide plant running. The financing unlocks another $26M in government funding that will cover costs for three years. Construction of the phase 1 demonstration plant is a major step toward technical and financial derisking. It allows Nemaska to nail the process, attract customers, comfort investors and arrange additional project financing for phase 2, which is the full plant. Nemaska is planning to process lithium hydroxide directly from high-quality spodumene concentrate at low costs." read more >

David Talbot, Dundee Capital Markets (12/1/15)
"We initiate coverage of Nemaska Lithium Inc. with a Buy recommendation. . .and a target price of CA$1.00/share. . .Canada's only significant public lithium developer recently funded its lithium hydroxide (LiOH) phase 1 plant for the next three years, a major step toward technical and financial de-risking of the enlarged operation. The company's permitted Whabouchi deposit is world class. High-grade, large, homogeneous, and low in impurities (sodium and potassium), it should allow low-cost production of high-quality spodumene concentrate. . .we believe that Whabouchi could be a critical supplier of LiOH for the fast-growing lithium-ion battery industry, which is hastening toward a severe shortage."

Teresa Matich, Lithium Investing News (11/22/15)
"Last week, Nemaska Lithium Inc. signed a memorandum of understanding regarding its Quebec lithium project with Johnson Matthey Battery Materials. . .subject to final due diligence and agreements, the collaboration between Nemaska and Johnson will include an upfront payment of CA$12M for Nemaska's phase 1 lithium production plant in Shawnigan, Quebec, with provisions for a long-term lithium carbonate and lithium hydroxide supply agreement for Johnson's battery products."

David Talbot, Dundee Capital Markets (11/20/15)
"The memorandum of understanding Nemaska Lithium Inc. signed with Johnson Matthey Battery Materials contemplates a $12M cash pre-payment in exchange for services and lithium hydroxide/lithium carbonate equivalent products from the Whabouchi project, Quebec City. It includes provisions for signing of a long-term offtake, which may help financially derisk the full project. . .this provides Nemaska's share of funding for the phase 1 demo plant."

"We follow Nemaska Lithium Inc. fairly closely because it is the most viable in that part of Quebec after the bankruptcy of RB Energy Inc. Nemaska is now getting the financing commitment secured for its plant on the St. Lawrence Seaway. Financing is a hurdle of about CA$25 million that I think the company is looking forward to clearing in coming weeks and months. It recently received the Canadian patent on a hydrolysis process and has already shown that it can directly produce a lithium hydroxide, so Nemaska Lithium plans to go that route at this time." read more >

More Expert Comments

Experts Following This Company

Chris Berry, Founder – House Mountain Partners LLC.
Jon Hykawy, Analyst – Stormcrow Capital
Andrew Miller – Benchmark Mineral Intelligence
Simon Moores, Manager – Benchmark Mineral Intelligence
Paul Renken, Senior Geologist – VSA Capital
David Talbot, Vice President, Senior Analyst – Dundee Capital Markets

The information provided above is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.
Investing Highlights
World Class Lithium Asset With Positive Feasibility Study
Proprietary technology to produce highest quality lithium hydroxide at lowest costs
Seasoned and experienced management team of Lithium experts