Lithium “Pretenders” Continuing to Play Catch-Up to Our Top-Gainers in 2023

There’s a lot of talk about Argentina potentially becoming the “Next Chile” in terms of global lithium production. 

And absolutely, there’s some truth to that, seeing as the country has nearly unlimited reserves of the “white petroleum” available for tapping.

Mariano Machado, principal analyst for the Americas at Verisk Maplecroft, says, “Argentina has infinite untapped resources when it comes to mining. We’re talking about a new Chile, if not more, with the key ingredient being time.”

In terms of world-class lithium deposits, there’s really no argument there. The broader region, often referred to as the Lithium Triangle (Chile, Argentina, and Bolivia), holds more than HALF of the world’s known lithium reserves.

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The broader region, often referred to as the Lithium Triangle (Chile, Argentina, and Bolivia), holds more than HALF of the world’s known lithium reserves

The region also produces about 35% of global lithium supply, with Chile currently leading the way at 26% and Argentina still a ways behind (yet, with more than enough potential to catch up!) at just 6%. 

Another key reason why investors are so excited about the growth in Argentina: it provides an alternative to Chile, which in April made the surprise move to nationalize its lithium industry. 

Many Western lithium miners were alarmed by this sudden development and felt that they were being strong-armed into future lithium projects by Chile’s government.

Naturally, there are some brewing concerns over whether Argentina will move in tandem to nationalize its own lithium sector, especially considering general elections are just around the corner.

In terms of what’s expected to be a heated vote, momentum presently appears to be on the side of far-right libertarian economist Javier Milei who proclaims to be a fervent proponent of private enterprise, including in the mining sector, and who has vowed to cease working with communist regimes (aka China!).

If all that comes to fruition, it could prove to be an eventual boon for Western mining companies who see the country’s vast lithium reserves and emerging lithium mining industry as wide open for development under the right leadership.  

Of course, a lot will depend on the election outcome, and no one knows for sure how that’ll play out or what it’ll mean for the country’s lithium industry going forward. 

Suffice to say, the reserves are absolutely there, and the opportunity for speculators appears robust. We’ll know a lot more as October draws to a close.  

To that end, we can proudly state that we’ve spent years ahead of the curve in terms of Argentinean lithium investment opportunities. 

Our own Gerardo Del Real of Junior Resource Monthly visited Argentina years ago and returned with a wealth of first hand knowledge on the country’s burgeoning lithium sector — along with multiple big-time winners!

I spoke with Gerardo just this morning, and he had this to say about his personal experiences in regard to Argentina’s lithium industry and the broader investment merits of the space:

“I actually flew down to Argentina back in 2016-17, with camera crew in tow, and visited what was then Advantage Lithium where we met with the team and toured the property. For me, not only was the lithium production potential crystal clear but, as well, the battery metals megatrend we’re seeing today, although in its infancy back then, was just as apparent to me. And being able to identify that trend very early on is precisely how we’ve been able to maximize gains in the lithium space over the years and into the present. Of course, Patriot Battery Metals is the obvious and most recent one. But Advantage Lithium, after being down some 50%, came roaring back to become a triple-digit winner for us. We also identified Lithium-X while in Argentina, and that became a 1,300% gainer for our team. Right now, although we’re seeing a consolidation in the lithium spot price, what we’re really witnessing is a global rush to secure quality lithium supply that has the potential to provide substantial cash flow for years on end. And I think that’s only going to accelerate as we keep moving forward here.” 

Lithium “Pretenders” Continuing to Play Catch-Up to Our Top-Gainers in 2023

Our own Nick Hodge also boasts a deep understanding of the global lithium space and has a small-cap lithium miner — aptly named Argentina Lithium & Energy (TSX-V: LIT)(OTC: NXLF) — in his Hodge Family Office Private Intel portfolio.

His subscribers were presented with an opportunity to participate in an early financing round at C$0.20 per LIT share. 

The company’s shares recently more than doubled to around C$0.50 per share on news that major automaker Stellantis — a constellation of 14 iconic automotive brands, including Jeep — has agreed to invest US$90 million in LIT to help the company advance its portfolio of lithium assets in Argentina’s Salta province, including an offtake agreement for up to 15,000 tonnes per annum. 

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That US$90M investment was more than 3X LIT’s total market cap at the time of the announcement… which further underpins what Gerardo was just saying about the global push for quality lithium supply.  

And while Argentina is, without a doubt, in those early “Wild West” days of the Latin American lithium continuum, a similar lithium area play is fast emerging — albeit in a far safer mining jurisdiction — in Quebec’s James Bay region. 

I probably don’t need to tell you this… but Gerardo, still humble as ever, is now basically famous for being amongst the earliest to the table on Patriot Battery Metals (TSX-V: PMET)(OTC: PMETF), which, of course, is advancing its world-class Corvette Lithium discovery in James Bay.

Gerardo brought Patriot to his subscribers at C$0.16 per share where Junior Resource Insider financed it and later at C$0.34 in Junior Resource Monthly before its earth-shattering ascent to C$17-plus per share earlier this year. 

Patriot, now the talk of mining circles far and wide, is sitting on the largest confirmed lithium pegmatite resource in all of the Americas (Top-10 globally) and still growing by way of the drill bit. 

The company’s shares have pulled back in recent trading, mostly on predictable profit-taking, to around C$10 where Gerardo believes a secondary buy window is now wide open for those who’ve yet to climb aboard the PMET profit-train. 

Gerardo also doesn’t believe Patriot’s Corvette discovery is a one-off for the James Bay region.

In fact, he has his eye on a neighboring small-cap, currently trading around C$0.75 per share, that’s on track to have multiple drills turning at its flagship lithium project in a matter of days on what could prove to be the next big discovery to come out of James Bay.  

You can learn all about this exceptionally well-positioned small-cap lithium explorer right here.

Despite the temporary consolidation in the lithium price, small-cap lithium gains continue to be explosive, folks! 

That’s why we’re making sure our readers have all the relevant details BEFORE the next quadruple-digit winner emerges.

Mike Fagan

Mike Fagan
Editor, Daily Profit Cycle