AU's third largest iron ore company $Lightning Minerals Ltd(L1M.AU)$ enters lithium mines, detailed explanation and industry expectations in 2023 from CEO, Alex Biggs.
On January 10, 2023, the CEO of $Lightning Minerals Ltd(L1M.AU)$ , Alex Biggs shared about L1M's projects introduction and explorations plan for the next 12 months in 2023 through Tiger Brokers's online broadcast, Alex also shared the outlook for the Australian's lithium mining industry in 2023, as well as various battery metal prices trend forecast.
Click here to review the record video:Here
Below are some brife highlights of Alex's sharing:
- The L1M's projects exploration plan for the next 12 months.
- The regional peer analysis and outlook for the mining industry in 2023
- The Q&A session regarding the mining industry battery energy prices tend
Disclaimer:The information and opinions inside the article are for exchange only, not as direct investment advice.
$Lightning Minerals Ltd(L1M.AU)$ listed on the 22nd of November 2022. Which raised 7 million dollars with an enterprise value of about 2.6 million. And the company saw good listed pricing for the whole suite of critical minerals in a bit difficult market of 2022.
1. Fundamentals of $Lightning Minerals Ltd(L1M.AU)$
Fundamentally, this company got a strong asset base which got under-explored assets in an emerging lithium province and all their projects are in western Australia. They're in close proximity to major resources projects from tier one companies, including liontown resources, also in the region. The company is looking at the whole critical mineral thematic, not just lithium, but also copper, nickel pgs, rare earth elements as well.
1.1 The management board of $Lightning Minerals Ltd(L1M.AU)$
It's managing board with experience ranges across mining, geology, corporates, finance and transactions and of course commercial.
From Lightning Minerals Ltd Investor Presentation
The company‘s chairman is Peter mcneill, is a very experienced geologist. The CEO Alex Biggs was previously the managing director of $Critical Resources Ltd(CRR.AU)$ . Seems all of their managments have very strong networks and connections in the finance industry, both in Australia, in Asia, myself, in North America as well.
1.2 The macro of the thematic of critical minerals
The CEO shared about the macro of the thematic of critical minerals. Especially he pointed out the growth in mineral demand in 2040 relative to a base of 2020. Based on the need the supply of the commodities, it exposes us to a sector that is very buoyant. And we see prices remaining strong across all the critical minerals for some time to come.
"So 42 times more lithium is required, 25 times more graphite, 20 one more times cobalt. Even if these numbers are half wrong , Even if it's 20 one times, it's 12 times 13x10 times. That is a massive deficit. "
From Lightning Minerals Ltd Investor Presentation
1.3 About $Lightning Minerals Ltd(L1M.AU)$ 's main projects
The company's key focus is the dundas project at the bottom of that map and their focus is battery minerals. Lithium, nickel, cobalt, copper, pges. CEO Alex said look at those peers in the region and look at neighbors, there's a lot of success in the dundas region right now.
From Lightning Minerals Ltd Investor Presentation
From Lightning Minerals Ltd Investor Presentation
Even the liontown's asset also near the bull Daniel asset, Alex said being surrounded by all these companies and resources and assets that are such high quality. Is a really big tick for the area and the region."And dundas right now is probably one of the hottest exploration areas in the world.
"I think once we start seeing that news flow and we start drilling in March, I think things will get very exciting for us," said Alex Biggs.
For more details about operating and mining information, Welcome to review the live-broadcast.
1.4 Some other projects of $Lightning Minerals Ltd(L1M.AU)$
It is said that all these projects are all in western Australia, people can access them easily as they are off the highway.
From Lightning Minerals Ltd Investor Presentation
1.5 Indicative news flow for next 12 months
From Lightning Minerals Ltd Investor Presentation
2. Regarding Regional Peer Analysis
Alex Biggs also shared 4 other companies to watch: $Larvotto Resources Limited(LRV.AU)$ , $Liontown Resources Ltd(LTR.AU)$ , $Galileo Mining(GAL.AU)$ , $Global Lithium Resources Limited(GL1.AU)$
From Lightning Minerals Ltd Investor Presentation
Alex encouraged investors to look at four companies and see what they're doing.
Trend data from Tradingview
1)$Larvotto Resources Limited(LRV.AU)$ ,located at the south of L1M. They're drilling for lithium right now. Done an interesting deal recently with warrant.
2) $Liontown Resources Ltd(LTR.AU)$ , another big tick for the region, its so good to have them as a neighbor, sharing the same mythologies, sharing the same geology, that's fantastic.
3)$Galileo Mining(GAL.AU)$, just to the other side of norsmen, about 30km from L1M, they've had a very good 2022. They're looking at nickel, copper, cobalt pges with fantastic projects.
4)$Global Lithium Resources Limited(GL1.AU)$ , the mana project, which they've acquired from breaker resources. Good resource there. Plus 10 million tons over 1%. They're just the northeast of L1M's Dundas north tenement.
To summarize: $Lightning Minerals Ltd(L1M.AU)$ is a mining company with strong asset base, has under explored assets in this emerging lithium province, it close proximity to some very good projects and very well established neighbors, but multiple other critical minerals too.
3. Q&A with Alex Biggs
Tiger Brokers: Due to covid-19 and high CPI with aggressively rate hike in 2022, will the high pressure continue to influence the industries' company's share price? What's your opinion for the 2023?
Alex Biggs: I think that 2023 is gonna be better, I think we'll see another interest rate rise, but we're already starting to see talk about interest rates being cut towards the end of the year. I think now that China coming out of It's covid and policy has been implemented there, will certainly drive growth again. The war in Ukraine, I think that will come to an end. If you've got good projects, you got a good strategy, you got a good team, you got a bit of money in the bank, I think 2023 really is a year where you can really get some success.
Tiger Brokers: What is your opinion on Lithium and Nickel Price in 2023? We all know the price of battery is most affected by these two metals.
Alex Biggs: I think they'll remain high, I think it's a pretty good price still. I just think that because there's very few lithium producers that are proven over long periods of time, it's hard for people to understand what the pricing represents. But there's going to be a shortage. So I think both nickel and lithium will remain strong for this year.
Tiger Brokers: Does this bring any opportunities for junior lithium mining companies in 2023?
Alex Biggs: I think there'll be another interest rate rise and then it will start cutting towards the end of the year. But I think there's a lot of fear around it, for like the housing market potentially has\s some risks there.How does that affect our mining industry? I don't think it affects us from a pricing perspective as far as commodities go, because I think that demand is strong. Maybe it means that there's a little bit less liquidity in stocks and companies. Not everybody in society will win from this. But I think certainly from a junior mining company perspective, I feel very buoyant, particularly with some of the changes that I feel are coming in China to drive growth again. So, look, 2023 is gonna be a good year.
Thank you for your reading, if you have more questions, welcome to comment below.
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