Mining

This Lithium Stock Could Build Generational Wealth

October 25, 2022 By admin Leave a Comment

SQM stock is a terrific value, and the lithium miner's dividends are electrifying

Sociedad Quimica y Minera de Chile (SQM) stock is trading at a very reasonable value, and the company’s financials are outstanding.
The company expects to sell massive quantities of high-need lithium this year.
Investors can look to SQM stock as an intriguing, pure play on the lithium boom of the 2020s.

Here’s a name you might not be very familiar with: Sociedad Quimica y Minera de Chile (NYSE:SQM). That’s a mouthful, but SQM stock could have generational wealth-building potential as the company extracts vast quantities of lithium.

This will be essential for electric vehicles and especially their batteries in the coming years. As we’ll see, Sociedad Quimica’s financial growth already indicates a powerful upward trajectory for the company, and for the global lithium industry in general.

Sociedad Quimica is a Chilean mining company, and some traders might not have much experience with international investments. However, you’re encouraged to venture outside of your comfort zone today.

After all, the EV revolution is an unstoppable phenomenon that has no borders. EV battery manufacturers will need a whole lot of lithium – and Sociedad Quimica is more than happy to meet the insatiable demand for the crucial white metal.

What’s Happening with SQM Stock?

Even though many stocks have underperformed in 2022 so far, SQM stock was firmly in the green as of Oct. 21. Perhaps the trading community is finally waking up to the supply-versus-demand imbalance in the lithium market.

Or, maybe some investors are actually venturing outside of U.S.-based commodities businesses to look for outstanding values. Sociedad Quimica certainly fits this description, as the company’s trailing 12-month price-to-earnings (P/E) ratio is quite reasonable at 12.91.

Maybe some income-focused investors are making their move with SQM stock, as well. We can’t really blame them, as Sociedad Quimica pays an extremely generous forward annual dividend yield of 12.52%.

Besides, if you’re looking for a highly active, pure-play lithium miner, you won’t do much better than Sociedad Quimica. If you can believe it, the company expects its 2022 lithium sales volume to reach approximately 145,000 tons.

[Alert: 1-Stock With Potential 10x Gains (Yes, Even In This Market)]

Growth Isn’t Reflected in SQM Shares, Yet

Suffice it to say that Sociedad Quimica is among the world’s most ambitious lithium producers. Impressively, Sociedad Quimica increased its lithium carbonate and lithium hydroxide production from “approximately 45,000 metric tons per year to 150,000 metric tons in the past three years.”

Has this lithium production ramp-up resulted in firmer financials for Sociedad Quimica? The answer is definitely yes, and there’s data to prove it.

During 2022’s second quarter, Sociedad Quimica’s total revenue jumped 342% year-over-year (YOY) to nearly $2.6 billion. That’s just an appetizer, though. During the same time frame, Sociedad Quimica posted multiple data points indicating outstanding financial growth:

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Gross profit up 598% to $1.3 billion
Net income up 857% to $859 million
Adjusted adjusted earnings before depreciation and amortization (EBITDA) up 531% to $1.3 billion
Earnings per share up 857% to $3.01

And here’s the real kicker: On a YOY basis, Sociedad Quimica’s lithium-segment revenue soared 1,033% to roughly $1.8 billion. Given these startling stats, it’s surprising that SQM stock hasn’t moved more than it actually did during the past 12 months.

What You Can Do Now

It’s possible that Sociedad Quimica’s moon-shot moment will happen in the near future. Sometimes, the market just needs time to fully appreciate the value of an asset.

Of all the world’s lithium producers, Sociedad Quimica is among the most active and financially fruitful. Even stubborn skeptics can’t deny the company’s revenue and profit growth. So, for compelling value, hefty dividend payments and a pure play on the fast-expanding lithium market, feel free to start a position in SQM stock.

[Nomi Prins: 10x Gains on a Small Firm Disrupting a Critical American Industry]

On the date of publication, Louis Navellier had a long position in SQM. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.

The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

New Battery Tech Could Spell End for Lithium Industry

September 13, 2022 By admin Leave a Comment

A Double-Edged Sword

It's tough to mine, it's highly taxing on the environment to extract and refine, and, perhaps worst of all, most of today's richest lithium-bearing properties are owned and operated by one of the Western world's most hostile political powers — the Communist Party of China (CCP).

This isn't surprising or shocking to anybody who follows the industry, as the CCP has been planning for the lithium revolution for decades, quietly buying up lithium exploration around the globe, from Asia to South America.

And their grip on the industry has tightened. Today 148 of the world's 200 biggest lithium-ion battery producing factories are now located in mainland China, compared with just 11 in the U.S., and 20 in Europe.

Even EV giant Tesla (NASDAQ: TSLA) gets most of its batteries from Asia, despite all the hype regarding “gigafactories” and market dominance you may be hearing from Elon Musk on Twitter.

[Louis Navellier: The #1 Electric Vehicle (EV) Battery Stock of 2022]

In the years to come, Chinese influence over the lithium industry will only increase as the country charges toward its ultimate goal: a global lithium battery monopoly.

If it achieves this end, no war with the West will be necessary. China will have all the cards and all the power over tomorrow's economy.

Everything from your car to your smartphone will be powered by products with “Made in China” stamped across the housing.

Needless to say, the industry is scrambling to find a solution, and herein lies the secret that I alluded to earlier.

Is Lithium Already Dead?

Right now, there's a new battery technology that's on the rise, and it has the potential to destroy the lithium industry altogether.

The material at the heart of these next-generation batteries doesn't need to be mined or refined. It's produced artificially in high-tech laboratories, and the end result is a battery that's vastly superior on a technical level, not to mention completely independent of Chinese influence.

That material is called graphene. It's a high-tech nanostructure that's just one molecule thick and can be made using nothing more than natural gas and electricity.

Two hundred times stronger than steel, light as a feather, and highly conductive of both heat and electricity, this fabric has properties that make it almost extraterrestrial in nature.

When applied to a battery's cathode, the results are truly disruptive.

Graphene-ion batteries have a much higher energy density than lithium-ion, a longer service life, and a much, much faster charge time.

To translate these factors into meaningful numbers, a Tesla with a graphene battery pack would have a range of up to 1,000 miles, last for over 1 million miles, and charge from 0% to 100% in as little as one minute.

You read that correctly. A full charge in less time than it would take to fill up a gas tank.

That's a game-changer and just one of the reasons why the CAGR for graphene batteries has been pegged at right around 28% through the end of the decade.

[MAJOR BUY ALERT: EVs/Wall Street/Gains]

To Gain the Most, Buy Early

That's almost three times the growth rate of lithium.

Now, to be clear, the graphene battery industry is just starting out.

In fact, there's only one company that's really producing any at all at the moment, and it's not Chinese. It's Australian.

The reason this company is leading the charge has to do with graphene production. You see, up until this company made a crucial breakthrough, the cost of production was too high to even consider making graphene for consumer needs — we're talking something on the order of $100,000/kg.

With the new production method, that cost has fallen by orders of magnitude, which has opened up an entire host of potential applications for this space-age material.

This company is currently quite small, with a market capitalization of less than $250 million — a mere drop in the bucket compared with the mammoth industry it's set to replace.

Its stock is also already public, which makes this a rare opportunity for investors in the know.

The Best-Kept Secret in Tech?

As you may have surmised by now, there aren't too many such investors out there today. Otherwise the stock would already be trading at a price several times higher than it is.

Today, only a handful of individuals outside the scientific community know anything about the company or the stock, which means you're on the cusp of a massive opportunity.

Alex Koyfman

[Nomi Prins: 10x Gains on a Small Firm Disrupting a Critical American Industry]

1 Stock to Profit from Growing Demand for Uranium…

May 9, 2022 By admin Leave a Comment

Nuclear Around the World

Uranium is one of the heavy metal elements. Utilities have used it as fuel for nuclear reactors for more than 60 years.

And it isn’t used just in commercial reactors. Defense, medicine and several other industries all use uranium isotopes.

Australia holds 28% of the world’s uranium resources. But Kazakhstan is the world’s largest producer of the heavy metal.

The demand for uranium has been fairly steady for years. But many of the new reactors being built today will come online during the next decade.

As a result, existing uranium stockpiles will quickly disappear. And that will cause demand to rapidly increase.

Last year, the demand from existing nuclear reactors was about 62,500 metric tons. By 2030, it’s expected to increase to 79,400 metric tons.

And by 2040, it should hit 112,300 metric tons. That’s nearly double today’s usage…

Which spells big opportunity for any company that mines uranium…

One U.S. company in particular mines not only uranium but a whole lot more as well.

[New Battery Breakthrough: Could Revolutionize the $2 Trillion Automotive Industry]

Heavy Metal Leader

Mining uranium is one thing. But Energy Fuels (NYSE: UUUU) mines a lot more than just uranium.

Its mines yield many of the raw materials clean energy needs. But let’s start with uranium.

It’s the company’s bread and butter. And Energy Fuels has been the biggest U.S. miner of uranium since 2017.

Its uranium mill and its two mines are developed and licensed. And it’s building five new mines in Wyoming, Utah and New Mexico.

The company also has a uranium recycling operation. In addition, it’s testing its existing process streams for the recovery of radio isotopes. These are used in emerging cancer therapies.

Energy Fuels also mines rare earth elements and vanadium, which is used to make steel and high-strength alloys. So it has advantages over its seven North American competitors, all of which mine only uranium.

But Energy Fuels’ biggest advantage is in rare earth elements. One of the highest rare earth element-bearing minerals is monazite.

Mining monazite is difficult because it also contains uranium, thorium and other radioactive elements. These need special handling.

But that’s no problem for Energy Fuels.

Its White Mesa Mill in Utah is the only place outside of China that can process monazite. It has the licenses and processes to separate out the radioactive materials.

Last year, the company began to process monazite on a commercial scale. The White Mesa Mill has a license to process 720,000 tons of monazite annually.

Today, it’s producing just 1,000 tons per year. But it plans to rapidly ramp up its annual production to 15,000 to 30,000 tons. Energy Fuels recovers about 50% of the feedstock as finished rare earth carbonate and uranium.

The Perfect Time for Investors to Get In

Energy Fuels claims it’s becoming the “Clean Energy and Critical Mineral Hub” of the U.S. And I can’t think of a better materials company to invest in.

As the demand for uranium, vanadium and rare earth elements grows, Energy Fuels’ shares should skyrocket.

Savvy investors will want to come along for the ride.

Good investing,

Dave

[Forever Battery: The Best EV Stock as Solid-State Batteries Fuel a 1,500% Surge in EV Sales]