Categories: Energy Stocks
Topics: Lithium Stocks

The Global Lithium Profit-Ride Has Only Just Begun

There tends to be two sides in the lithium bull market. There are people like myself and friend Nick Hodge who have been finding ways to profit from this megatrend and people who missed the trend and continue to call for an oversupply anytime there is a healthy correction in the space.

The popular narrative among the keyboard speculators arguing for an oversupply in the next couple of years presents the multiple projects that are scheduled to come online.

History shows it is unrealistic – and irresponsible if you want to make money – to assume all of those projects will advance through the permitting and construction phase as “scheduled.”

Even the mining giants in the space with the best engineers and most diligent technical teams are constantly faced with unforeseen hurdles.

One example is mining behemoth Rio Tinto (ASX: RIO). In 2022, Rio saw its massive $2.4B Jadar lithium-borates project get shelved by the Serbian government. 

It is estimated that the Jadar project could supply 90% of Europe's current lithium needs. But it doesn’t matter because the project is not happening.

Rio then decided to buy the Rincon lithium project in Argentina’s Salta province for C$825 million. The project plans to use a direct, low-cost extraction technology to mine the 2 million tonnes of contained lithium carbonate equivalent which is sufficient for a 40-year mine life.

Fast forward to today and now Rio has flagged a likely cost estimate and schedule review due to cost escalation. The $140 million cost estimate and schedule will likely face delays as a result.

These permitting challenges, delays, and cost overruns are not unique to Rio but they will continue across the sector, which is only one of the reasons this lithium bull market will continue to run and why we will continue to find ideas that will prove very profitable over the next few years.

In June of 2021, subscribers, Nick, and I made a substantial bet on Patriot Battery Metals (TSX-V: PMET) (OTC: PMETF). Nearly 10,000% later, that bet is still intact as we still own the majority of those shares in anticipation of much higher prices. 

Then, in January of 2022, we wrote a check for another company onto a major discovery, and, 900% later, that company looks primed for higher prices.

I’m not telling you this to brag. I’m telling you this because I believe I’ve found the next lithium explorer with quadruple-digit return potential.

I’ll be sharing that with you over the next couple of weeks in a special report. There’s a lot of money to be made on this coordinated effort to electrify everything. I hope you’ll join me for the ride.