Rodinia Lithium (TSX RM)Today .18c
Last November I discussed Rodinia Lithium and my belief that it is the next prize in the second leg of the lithium boom. Insider trade reports supplied by TD Ameritrade, indicate that, with one small exception, all insider transactions for 2011 are "buys"! There are "NO" sell trades.
This is a clear indication that the people who actually know what is occuring in the company, on a day to day basis, and those overseeing the company's development, are very poositive about their prospects, that they have only bought more of the stock, and not sold "any" of their holdings. This information alone, tells us something of value is growing at Rodinia.
1. Insiders are buying this stock.
2. Rodinia owns three of the top 25 lithium properties in the world.
3. Shan Shan Corp., one of the largest lithium battery suppliers in China, purchased their entire bought deal in Nov 2010, above the asking price, to ensure they are flush with cash to advance their properties.
4. Rodinia's top three properties are all brine properties, with low development costs, in two of the best mining districts in the world, Clayton Valley, Nevada and Salta Argentina. They are also listed in the top 25 lithium properties in the world today.
5. Byron Capital Markets Dr. Jon Hykaway, rates it a strong buy with a target of $2.25
(considered one of the foremost lithium investment experts today)
6. On April 12, 2011 Ubika Research has issued a valuation report with a Price of $1.12 for Rodinia Lithium. (We think that is a very low assessment)
Rodinia was trading today at .18 cents. RM.v or in the U.S. as RDNAF.PKIt's market cap today is listed at $11.79M with 65.5M shares outstanding.
With $10 Million in cash on hand for development, this values the company at only $1.79 million.
That is a ridiculously low valuation for Rodinia's lithium properties!
Further more, it does'nt even address the large potash concentrations which will be a secondary product for this small company.
Clayton Valley
Besides the Argentinian properties, Rodinia also has its lithium brine project in Clayton Valley, Nevada which is ajacent to the only lithium brine operation in the continental United States. For these reasons, I have been buying more Rodinia stock this month. I believe this stock will triple by Christmas, however, I am looking for a 10 bagger and I expect to get it sometime next year.
Maybe you should consider adding Rodinia Lithium to your speculative value portfolio.
Wishing you great success with your Retirefund.
HP
Expert Analysis from The Energy Report
Technical report on Clayton Valley, Nevada lithium property
Ray Goldie, Salman Partners (8/22/11) "We expect Rodinia Lithium Inc. to be able to surf on the strong, stable pricing structure of lithium that has been established and maintained by existing producers—beginning in 2016, Rodinia could be producing from Argentina about 2,000 tpa lithium (about 6% of the world’s supply), with by-product potash. . .because both the revenues and costs in the lithium industry are not readily available, and because our evaluation of the company is based on educated guesswork rather than on sober engineering studies, we initiate coverage of Rodinia Lithium with a Speculative Buy recommendation rather than an outright Buy."The Energy Report Interview with David Talbot (7/21/11) "Our top pick in the lithium sector is Rodinia Lithium, despite its $30M market cap. We've got a buy with a CAD$1 target price on this stock. RM continues to be one of the most undervalued stocks on our lithium coverage list. Rodinia is developing a brine project at its flagship Salar de Diablillos site in the Province of Salta, Argentina, about 11 km. from the world's second-largest producer, FMC's Salar del Hombre Muerto. It just reported a couple of pit samples that were about three times the average lithium grade of the deposit. Rodinia also has its Clayton Valley Project in Nevada adjacent to Chemetall's Silver Peak brine operation and the only U.S. producer of lithium. Given the company's significant resource in Argentina, good brine chemistry, lack of competition on the Salar and its three aquifers, we think now is a good entry point for investors looking to share in Rodinia's growth. Our target price suggests a triple from here."
David Talbot, Dundee Securities (7/13/11) "Rodinia released pit results from a sampling program at its flagship Salar de Diablillos project in Argentina. Results show grades that were, on average, substantially higher than previous estimates for the shallow aquifer number one. This is especially encouraging because two of the samples were taken from an area where close spaced auger sampling was not possible, and opens up a much larger area that might exhibit potentially higher grade lithium and potassium brine, and this has positive implications for resource growth and production potential. . .Rodinia's peer discount is unjustified. . .conservative lithium brine operation is compelling. . .it has an experienced management team, large brine resource, multiple projects in good jurisdictions and our valuation ignores potash or boron production upside potential."
David Talbot, Dundee Securities (6/9/11) "Rodinia Lithium is an emerging brine developer flying under the radar—it has several features going for it: its main project, Salar de Diablillos in Argentina, hosts one of the largest lithium-potash brine resources in the world, and it lies in close proximity to the third-largest brine producer in the world (FMC Lithium); its second project is underexplored and adjacent to the only lithium producer in the U.S. (Chemetall); it also has strategic investment from one of China's largest lithium-ion battery materials provider. . .our modest CAD$1 target price for RM suggests a triple—it is showing more upside potential than the more well-known brine developers."
The Energy Report Interview with Jonathan Lee (4/19/11) "Rodinia Lithium also has a brine deposit at its Salar de Diablillos project in Argentina. We have a Speculative Buy rating on it with a $2.25 target price. It's another example of fairly good chemistry and good, effective porosity levels. And the project is another that, potentially, could be a low-cost producer. It has a decent level of lithium grade, reasonable magnesium:lithium ratio and very attractive sulfate levels—that's another key. It has a lot of positive qualities. Rodinia has a strategic investor in Shanshan Resources, a wholly owned subsidiary of the largest battery manufacturer in China— Ningbo Shanshan. Some of Shanshan's partners have extensive experience doing brine chemistry in the Tibetan salars. Shanshan is a value-add for that company."
More Articles:
Lithium Junior the most promising
The resource of the 21st century
Rodinia looks like the next prize
Rodinia CEO interview
Links:
The Grandich Letter - Rodinia Lithium
2 comments:
I have not seen Rodinia state publicly that it has the potassium rights at Clayton Valley. Since Potassium is a leaseable mineral (as opposed to lithium which is a locatable mineral), does Rodinia hold the lease rights with the BLM?
Good question. I am not sure about Clayton Valley however Rodinia has the rights at Diabillos.
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