Just when you thought you were in a commodities bear market, the commodities are back! It’s about emerging market resurgence. It’s about potential fiscal stimulus. It’s about low interest rates. It’s about accelerating growth. It’s about a lot of things. But most of all, it’s about Lithium and Cobalt.
U.S. Lithium Corp (OTCMKTS:LITH) is an exploration and development company focused in North America on lithium and related resources for the rapidly growing energy storage industry. The Company looks to capitalize on opportunities within the lithium sector including providing lithium to the ever expanding next generation battery market. Lithium demand is projected to triple by the year 2025 according to a recent report by Goldman Sachs and for many analysts is considered the new gasoline of the future. As the demand for lithium expands, U.S. Lithium Corp intends to be an integral part of this next booming industry.
The company also recently acquired 100% of the Gochagar Lake Nickel-Copper-Cobalt project claims from Diamond Hunter Ltd. Greg Rotelli, Chief Executive Officer of U.S. Lithium, commented, “We are excited to be acquiring this large block of claims in the Saskatchewan province of Canada. Cobalt, as well as nickel and copper, are vital raw materials in the green energy space. US Lithium remains committed to helping satisfy the needs of this growing industry.”
As far as recent catalysts, the company just announced that it has retained Dr. Larry Hulbert Senior Exploration Consultant with over 45 years of experience working on properties with the same metallogeny as U.S. Lithium’s Saskatchewan Cobalt/ Nickel/ Copper properties. These properties have grades up to 3.92% Nickel, 0.70% Copper and 2.86% Cobalt as reported by the Saskatchewan government (Mineral Property # 0880).
Gregory Rotelli, President of U.S. Lithium, states: “We are pleased to be able to retain such a knowledgeable and respected consultant to be working directly with U.S. Lithium and our board geologist Eric Allison to move the project forward in a very professional and timely manner.”
It appears that the company also now has strong cobalt interests. Experts have started to talk about 2017 as a break out year for cobalt prices as prices have more than doubled in the last 9 months and increased 35% in the last month alone. Along with lithium demand, which is expected to more than double from 2012 to 2017, and triple by 2025, this is an extremely strong stable of assets to bring to battle with the chart…
Technically, the stock is set up to potential rip higher on any break above the $0.06 area. The basing pattern has been very well established. And, with strong growth drivers, resistance levels are likely to topple. The stock has recently gotten back above its 50- and 200-day MA’s and now holds them as support. That’s a strong pattern to see.
Lithium demand is projected to triple by the year 2025 according to a recent report by Goldman Sachs and for many analysts is considered the new gasoline of the future. As the demand for lithium expands, U.S. Lithium Corp intends to be an integral part of this next booming industry.
“Our current focus is in the Basin and Range province of Nevada where the only producing lithium brine mine in North America, Albemarle’s Silver Peak Project, is located. Elon, our first project, is located in Clayton Valley and is in close proximity to Silver Peak and several other active explorers and developers.”
- LITH could potentially be the leader in the fast-growing Lithium space, where demand is expected to more than double from 2012 to 2017, and triple by 2025
- LITH recently broke above its longer-term moving averages to set a new, more bullish technical tone on the chart.
- LITH is coming off an RSI trough under 40, pointing to a massively oversold stock now heading back the other way.
- LITH just recorded a MACD Bullish reversal, suggesting a technical change in trend.
- LITH has rallied from $0.037 top $0.065 in recent days, carving out a level that may act as a breakout trigger if the upper band of resistance is broken higher.
As for Lithium, Tesla’s new battery gigafactory will need 15,000 tons of lithium carbonate a year just to get started. Grid storage and the powerwall will be additive from there. The powerwall sector alone could quadruple to $6 billion just by 2020. LITH offers a leadership play on this concept. And a chart with strong breakout levels in place, and accelerating volume.