Angel Publishing's Senior Analyst Alex Koyfman tells a story 16 million years in the making.
It all started with an unassuming geologist who made a groundbreaking “Lithium Volcano” discovery, giving us the chance to claim a piece of a world record-breaking American mining company.
Almost nobody knows about this record-setting deposit, yet it dwarfs anything else known to exist on Earth.
Our presenter Alex Koyfman has worked his way up the newsletter ladder, going from a copywriter to a managing editor, and finally a senior editor at Angel Publishing. A loyal company man. We have previously reviewed company man's Microcap Insider newsletter and his “E-Axle” Company teaser, among many others.
The reason hardly anyone knows about the “Lithium Volcano” is because, despite being one of the biggest scientific discoveries of the century, this record-breaking lithium deposit never even made front page news.
It's just not attention-grabbing enough in today’s dopamine-driven media circus.
But for those of us out there seeking substance and some cold hard cash, it presents an opportunity.
27x The Size of All of China's Lithium Reserves
Somewhere below what is now the southeastern border of Oregon, there once was an enormous underground chamber filled with liquid hot magma.
Think of it as a kind of lava cocktail, one rich in rare earth elements and minerals.
One day the ground cracked open and this molten cocktail was released into the wild. However, this wasn't just any volcanic eruption; it was a super volcano, a force of nature so powerful, it could reshape entire continents and alter the global climate.
It also unleashed a fortune that would remain hidden for millions of years…until now.
This 600-square-mile treasure trove of lithium is now estimated to be worth roughly $1.5 trillion or roughly 27x the size of all of China's known lithium reserves combined!
In short, this remote deposit trumps pretty much any other resource opportunity on the market.
Even using the most conservative estimates available, it’s safe to expect about 30 megatons of extractable lithium at this site. That’s enough to produce batteries for 10 billion smartphones (more than one for every person on Earth) and the best part is, we can get a piece of it today.
The mining operation behind the “Lithium Volcano” is a publicly-traded company and it was already prospecting this area well before public geology surveys were released and confirmed the massive lithium deposit.
Alex has put together a comprehensive special report on this lithium mining company called “Lithium Volcano: Tapping the World’s Biggest Lithium Reserve.”
All he asks is that we give his weekly investment advisory The Crow’s Nest (nice name) a risk-free trial. The service comes with a 180-day money-back guarantee and costs $99 for new members.
Included are weekly issues that uncover hidden investment opportunities we won’t find in mainstream publications like The Wall Street Journal or Forbes. Real-time buy and sell alerts, complete research for every recommendation, and more.
The Key to Unlocking The Lithium Volcano
Sitting on over 19 million tons of lithium is one thing, getting it out of the ground is another.
Alex's company has an answer to this dilemma.
It is spearheading a groundbreaking new lithium extraction technique that promises to unlock the wealth hidden in this caldera.
One that it says is up to 30x as fast as traditional methods.
It all goes back to the massive volcanic eruption that occurred over 16 million years ago that was mentioned earlier.
The explosion created a giant crater on the Earth’s surface, which eventually became a lake.
Over time, this lake gradually evaporated, leaving behind a soft, clay-like soil infused with an abundance of lithium.
Even better, this immense lithium treasure trove lies conveniently near the surface, ensuring easy access. It also makes it one of the most environmentally friendly mining endeavors ever.
See, most of the world’s lithium comes from underground mines or large brine pools that look like a Mario Kart rainbow road.
Evaporation transforms the brine from light-yellow slush into raw lithium and the whole process can take up to 24 months, start to finish.
Enter this company’s cutting-edge extraction technology which takes just 24 hours to convert the lithium-rich clay into a finished product.
Leaching Is A Game Changer
The process is called “leaching” and it's a complete game-changer for lithium mining.
Without getting too technical, clay is crushed into small pieces to prepare it for processing. The crushed clay is mixed with water in a vat to create a slurry. Yes, a slurry, not a Slurpee.
Then, they add sulfuric acid to it. The acid “leaches” the lithium out of the clay and the lithium falls to the bottom of the vat. Think of it like sand settling at the bottom of a glass of water.
Finally, lithium is collected and processed into the final product, which can then be used to make batteries for electronics and other applications.
The process is set to do for lithium what fracking did for oil and the miner Alex is teasing here has already demonstrated that its leaching process removes lithium from clay at up to 97% efficiency. Let's find out its name.
Revealing Alex Koyfman's “Lithium Volcano” Mining Company
A few key details are revealed to us about this little-known lithium miner.
- The company estimates that it can extract approximately 40,000 tons of lithium per year, in its first four years of operation.
- It has already captured the attention of auto industry stalwart General Motors, which has signed a $650 million contract with the firm.
- We can load up on shares of this lithium giant in the making today for just $5.
A bit of detective work revealed that the pick is Lithium Americas Corp. (NYSE: LAC). The clues line up like shirt buttons:
- The company expects to ramp up to 40,000 tonnes per annum of battery-quality lithium carbonate sometime this year, as per its Q3 2023 report.
- Under their agreement, GM is in the process of making a $650 million equity investment in Lithium Americas, which represents the largest-ever investment by an automaker to produce battery raw materials.
- LAC shares are currently selling for just under $4.50.
The Best Resource Investment in the Market?
LAC isn't the best.
But is it at least good?
There are some things to like about Lithium Americas, starting with its outsized $275 million cash hoard. This is nearly 40% of its entire market cap and provides a comfortable backstop against a share price drop.
Second, it is the 100% owner of the Thacker Pass project located in northern Nevada, which hosts the largest known measured and indicated lithium resource in the United States. Such outright ownership is much simpler for obtaining all the necessary regulatory approvals compared to a property divided among various parties.
Unfortunately, this is where the positives end. LAC only commenced construction at Thacker Pass in early 2023 and it will need to secure sufficient capital to fund the development of Thacker Pass Phase 1. Something which the second tranche of GM's investment into the company is contingent on.
I don't dislike LAC at its current low absolute valuation, but I can sense that this is going to be a long slog to production, and given the declining demand for EVs, the upside is going to be much more limited than many, like Alex, believe.
Quick Recap & Conclusion
- Angel Publishing's Senior Analyst Alex Koyfman is teasing a groundbreaking “Lithium Volcano” discovery and one record-breaking American mining company is behind it.
- This miner is sitting on over 19 million tons of lithium – the most in the United States and it has a proven leaching process in place for extracting lithium from clay.
- Alex has whipped up a comprehensive special report revealing the name and ticker of this lithium mining company called “Lithium Volcano: Tapping the World’s Biggest Lithium Reserve.” The report is ours if we take a risk-free trial to The Crow’s Nest weekly investment advisory for $99.
- No need to hang with the birds, since we were able to give away Alex's pick for free as Lithium Americas Corp. (NYSE: LAC).
- There are some things to like about Lithium Americas, but the company is still in pre-production and the demand for its lithium isn't as high as once thought.
Has Lithium Americas permanently missed its window to capitalize on demand for the chemical? Let us know what you think in the comments.