(Asx: GW1) | Greenwing Resources

Nov 14, 2021

Sentiment: Bullish

Type of Trade: Speculative

Industry: EV - Electric Vehicles - Lithium and Graphite

Sector: Materials

Greewing Resources is a fully integrated green metals company, with market capitalisation of $50m, and comprehensive exposure to graphite, advanced materials and lithium.

The company has 100% interest of the Graphamada Graphite Mining Complex in Madagascar as well as very promising Lithium project in Argentina and Madagascar. The company aims to build a fully integrated green metals company with a comprehensive exposure to graphite, lithium and advanced materials.

The company is only at the early stages of developing its projects, aiming to delivery of a brine held resources in the prolific lithium triangle at San Jorge Lithium project in Argentina and a spodumene hosted lithium resources at the Millie’s Reward project in Madagascar.

The company also aims to keep on developing the graphite resources, in conjunction with capitalising on the production experience at Graphmada, to deliver a project capable of supporting production of up to 40,000tpa of Graphite concentrates.

The Company has a experienced Board and Management team in exploring, developing, and operating industrial mineral projects; as well as exporting and selling industrial mineral concentrates into major global markets.

Macro Economics – The importance of Graphite and Lithium Markets

✅ Graphite and lithium are Critical Minerals of high strategic importance for advanced materials and battery technologies.

✅ Looming and sustained supply side deficits in both Graphite and Lithium concentrates.

✅ Increased penetration of electric vehicles (EV) is a primary driver of demand for Graphite and Lithium concentrates.

✅ Graphite and lithium represents 57.8% of a battery and stands to benefit substantially from the global shift to electric vehicles.

✅ EV Adoption to drive battery surge, with global EV sales CAGR forecasts as high as 30% across the next decade.

✅ Global EV penetration is forecast to reach 18% in 2025, 40% by 2030 and 80% by 2040.

✅ UK will ban petrol and diesel engine sales by 2030 and is targeting zero emissions by 2035.

San Jorge – Lithium Brine Project

The San Jorge Project is strategically located in Argentina and within the Lithium Triangle which is the world’s prominent lithium location, whereas other leading companies are also located such as Orocobre (Asx: ORE) market cap $6.1B, Galan Lithium (Asx: GLN) market cap $0.5B and Lake Resources (Asx: LKE) market cap $1.2B).

✅ Great infrastructure already in place.

✅ Project is in exploration phase with results to be released in the market in the first quarter of 2022.

✅ Provided first phase results are positive, the company should then by middle of 2022, start deeper drilling.

✅ The company has option to acquire 100% ownership inclusive of a 2800-hectare Salar (San Fransisco Salar) subject only to meeting financial commitments.

🚩 Still at very early stages, and such as project could be well developed and sold to an existent lithium producer.

Millie’s Reward – Lithium in Spodumene and Graphite Project

✅ Process Plan is in place with 20 months of premium concentrate production achieved. The Company has acquired the Graphmada project in 2016, the company was actually producing high grate mineral concentrates, selling to several customers worldwide. customers, however, this project has been putted on hold in 2019 due low prices of graphite and COVID-19 pandemic.

The graphite is holsted near surface with makes its relatively cheap to extract in comparison to other Graphite and it is looking at expanding its project now.

✅ Company is now looking to start producing again with stage 2 expansion aiming to produce up to 40,000 tonnes per annum of premium graphite concentrates.

✅ The company has recently provided an exploration update to the market with positive results that continue to demonstrate that the regolith hosted large flake graphite mineralisation footprint at Graphmada is extensive, in both depth and width. The output will be splitted 50% large flake production for advanced materials end-use and 50% target to the lithium battery sector.

Next 12 months

✅ Graphite further regional exploration and drilling at Graphmada in Madagascar.

✅ Diamond drilling and Mineral Resources Updates,

✅ Economic assessment and feasibility studies for Stage 2 expansion,

✅ Finalize acquisition of San Jorge Lithium brine project, Argentina.

✅ Exploration, geophysics and drilling at San Jorge

✅ Exploration, geophysics and drilling at Mille’s Reward, Madagascar

✅ Further Trials; purification, expandability and graphene.

✅ Product development and prototype.

✅ Strategic Alliances and agreements.

🚩 The company is in exploration and pre-development phase of the phase 2 Graphamada project, although the company claims to offer incredible good exposure to Graphite and Lithium, investors need to be aware that it still represents a very high risk and investors that are looking for similar exposure but less risky should choose companies that are in pre-production phase.

Technical Analysis

Stock price has been relatively underperforming other lithium stocks, up by 136% if you have invested exactly 52 weeks ago, it is trading on the bullish side of SMA.

✅ SP is trading after a Bullish intersection level 2 and Level 1

✅ SP is trading above the EMA9 (yellow line)

✅ High Volume to the upside.

✅ Large Green candle on the Heiken Ashi

✅ Market has been positively embracing the latest exploration results.

🚩 Currently trading in the FOMO area.

🚩 Relatively low liquidity can make the SP swing over 20% per day (up and down).

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