(Asx: INF) | Infinity Lithium

Aug 17, 2021

Sector: Materials | Industry: Lithium

Type of Stock: Speculative | Risk: Very High

Infinity Lithium is an Australian listed minerals company who is seeking to develop its 75% owned San Jose Industrial Lithium Project located in Spain.

The project will be developed by open pit methods with the ore treated and refined onsite to produce high quality, battery grade lithium hydroxide.

Infinity’s goal in the long term is to supply the European lithium-ion battery supply chain and EV industry.

Regional lithium production is needed in order to de-risk the strategic European EV supply chain. Infinity offers a sustainable, integrated, low-cost, large and long term source of lithium chemicals.

Infinity Lithium is in a joint venture partnership with Valoriza Mineria S.A. (Valoriza Mineria) to develop the San Jose/ Valdeflorez Lithium Project (San Jose) and currently owns 75% of the Project. It is planned that the San Jose Project will be developed by open pit methods with the ore treated and refined onsite to produce high quality, battery grade lithium hydroxide.

✅ Infinity Lithium and LG Energy Solution sign non-binding Memorandum of Understanding for the offtake of lithium hydroxide, released on 28/05/2021

✅ Infinity Lithium is well placed to provide battery grade lithium product to the large-scale battery plants from the proposed San Jose LC production facility.​ The San Jose deposit is a highly advanced, previously mined brownfields development opportunity.

✅ The deposit represents one of Europe’s largest lithium deposits. Infinity Lithium will mine the hard rock Mica resource and develop processing facilities to provide, what would currently be, the sole European mine-to-end-product lithium carbonate operation.

✅ Non-chinese supply shall only meet demand by 2025 or 2026 says the company.

Share Price Sensitive Announcements (VIP area – for logged in users only)

Key Advancement of the company so far with San Jose Lithium Project.

Features of the Project

Key Features of this Project

✅ Once the project is established Infinity expects that over 200 people will be directly employed at the minesite and processing plant. An additional 1,000 people gaining employment through supporting activities, providing real opportunities to the local community after Spain’s significant investments in infrastructure. There is no indication of community resilience, objection or dispute to the implementation of the mine as there with the company Piedmont Lithium (see full analysis here).

✅ Another key fact that will likely to benefit this company is that China currently produce 83% of global lithium supply whereas Euro produce 0%. Diversifying lithium hydroxide supply imperative for European policy makers industry.

✅ Using common fertilizer and recycling it as opposed to sulphuric acid usage like in China.

Key Elements of this analysis

The Stop price was negatively affected by the May

✅ SP is currently sitting at SMA level giving a great entry level opportunity.

✅ SP is currently trading above the yellow line (EMA 9).

✅ Slightly increased volume on the upside.

✅ Favorable macroeconomic environment.

✅ Ascendent formation after the crash confirming a potential steady upside.

✅ Several announcements on the pipeline of the company (see SP sensitive information)

???? Stock still trade in low volumes.

???? Lack of diversification and negative resolution on (PIV) permit could have negative impact on this SP.

Overall, this stock represents great upside once the PIV problem is resolved. At moment it is technically trading at fair price for a penny speculative lithium stock and it all comes down to enter at the right price under SMA.

Entry details: VIP Member only (if you are VIP – login to see the full information)

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