Globe says Noram, rivals could be targets for Tesla
The Globe and Mail reports in its Friday edition that Fundamental Research Sid Rajeev says Tesla’s plan to build a cathode plant in North America and its acquisition of a 10,000-acre lithium clay deposit in Nevada has brought “focus” to junior lithium firms. The Globe’s David Leeder writes that in a research note released Wednesday, Mr. Rajeev began coverage of one of these companies, Noram Ventures (20 cents), with a “buy” rating. The Vancouver-based company is working on advancing its 100-per-cent owned Zeus property in Nevada, which is located in close proximity to Albemarle’s Silver Peak mine. That facility is currently the only lithium brine producer in the U.S. “We estimate that lithium juniors are currently trading at $19 (U.S.) per tonne, while Noram is trading at just $8 (U.S.). Direct comparables Cypress Development is at $8 (U.S.), and American Lithium is at $16 (U.S.).” Mr. Rajeev adds: “The shares of most lithium players operating in Nevada declined sharply [Wednesday]. Despite the sell-off, we believe Tesla’s affinity to clay deposits in Nevada is very positive for all advanced stage deposits, including Noram, CYP and LI, as they are now prime targets of Tesla and other EV/battery manufacturers.”
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