The battery industry is growing rapidly, and researchers are working on new ways to use these metals for energy storage. Lithium, Tin, and Tantalum are essential metals that are and will be used in the battery world to form a greener and more sustainable world.
The advent of Lithium-ion batteries has made portable electronics commonplace. Indeed, technology has become so ubiquitous that it’s difficult to imagine a world without them. But there was a time when the battery was considered an inconvenient luxury – a dependable but heavy battery that could only be carried on hand by people who were in constant need of power. In recent years, however, lithium-ion batteries have come down in price and improved considerably in performance.
Tin is a very versatile metal that’s highly reflective and has low reactivity. It’s also non-toxic and can be easily recycled. Because of this, tin is often used to create stable electronic materials and products that are corrosion resistant.
Tantalum is a metal that is found in various forms, including powders, pellets, rods, bars, and sheet. The metal has some special properties that make it useful in a variety of industries. Tantalum is most commonly used in the manufacturing of capacitors and other electronic components. It can also be used as an alloy to improve strength and durability of metals.
One company that could profit from all those opportunities is Tantalex Resources (TTX) sitting at a $49.9 million valuation and $0.09 per share. The Vancouvian company will produce all three commodities starting in March 2023.
What is Tantelex doing exactly?
Tantalex Lithium Resources Corporation provides exploration and mining services. The company explores and develops Lithium, Tantalum, and Tin properties in Congo, Africa. The Lithium mineralization is contained within technogenic deposits, consisting of eleven individual tailings dumps, of which five form part of the Mineral Resource, namely Cc, Ic, Gc, Gf, and K.
How is the geology of the mines?
Lithium is found in deposits located within technological dumps, consisting of eleven individual tailings piles. Five of these dumps – Cc, Ic, Gc, Gf and K – make up the Mineral Resource. The dump shapes vary; Cc is lobate-shaped and extends 815 m by 580 m at its largest point, Ic is shaped like a disk and has a diameter of 530 m by 315 m, while Gc is also disk-like but shorter with a width of 500m by 320m. Dumps are usually 78 meters tall above surrounding ground level.
What does Tantalex past look like?
The commodity conveyor did its IPO In June 2010 and has always been in Congo, Africa.
In 2016, exploration recommenced in Manono with subsurface drilling at the historical mine location, but this time it was for Lithium. Tantalex Lithium Resources acquired the majority stake in the legacy tailings and dumps from the old historical mine in 2018.
This asset comprises 11 tailing dumps spread throughout the 13 km strike from the historical mine. A drone volumetric survey conducted in 2020 confirmed up to 105 million tons of material spread across 11 dumps.
In 2019, an important hard rock lithium resource was discovered in Manono, which will bolster the region’s strategic importance for the future production of this valuable mineral. The undeveloped hard rock lithium resource was the largest in the world with 400 million tons grading at 1,65% Lithium oxide.
What makes Tantalex an interesting investment idea?
– Small market cap of $47.05 million Cad
– Political risk could cause problems
– No major revenue since IPO in 2010
+ Less on site risks because of government holding equity in project
+ Low mining cost of $13,35 (mining + processing costs) with a quick path to production: material on surface, already crushed, and no strip ratio
+ Increasing worldwide need for Lithium, Tin, and Tantalum
+ Large lithium occurrence with 6.63 million tonnes in total inferred mineral resources at a grade of 0,49% and 5,46 million tonnes at 0,72% Li2O measured and indicated
+ Huge property and exploration ground: 11,922 km of drilling ground with a total of 368 drill holes
+ Lithium price is predicted to be above $4.000 USD/t for the next 6-8 years, Tin at $25.225 per tonne, and Tantalum at $1.17 milion per tonne if 99,5% concentrate. Realistically they will be nowhere near this concentrate level so a lot less can be expected but it will still be a lot.
+ Plans of producing 100.000 tonnes Lithium Spodumene per annum by 2025 which would be around $550,5 million at a tonne price of $5.505
+Tin revenue: producing 1.400 metric tonnes of Tin concentrate which would be around $35,315 million starting in March 2023
+ Revenue with Tantalum: 220 metric tonnes concentrate per annum starting in March 2023 which depending on concentrate can add a lot of revenue
+ Well connected with AVZ founder Klaus Ekhof and Afrimet founder Hadley Natus
+ Comparable resource territory to neighbour AVZ minerals which was valued at $2.8 billion and $0.78 a share
Tantalex Future vision
At the moment, the goal is to produce 100.000 tonnes Lithium per annum, and with a demand increase for mobile phones, computers, cars, aerospace, defense and the military industry I can imagine an increase in production.
For Tin and Tantalum it’s hard to predict the amount that will be produced as production hasn’t started yet. Demand and price will be the key metrics regarding production meaning if demand and prices will go up there will be an increase in production.
Tin is very important to produce windows and glasses, combined with other metals to form alloys of superconducting metals, coating metals in form of tin cans like trash cans. In the future, I could see increasing demand as there is a correlation between a constantly growing population and demand for basic household needs.
Tantalum is used for electronics and alloys like jet engine components, chemical process equipment, nuclear reactors, missile parts, heat exchangers, and tanks. Just like Tin, I could see the demand and price increasing due to a constantly growing popularity.
Conclusion
All in all, I think Tantalex has a chance to become a successful project as they have massive commodity resources that will be important for the future. I could imagine a price increase for Lithium, Tin, and Tantalum. This would be good for Tantalex as their operations would be even more profitable.
In addition, I think there are multiple good signs like the high valuation of competiors Atlantic Lithium Ltd., Core Lithium, European Lithuim Ltd and Patriot Battery Metals which are also on exploration at the moment. Their valuation is a lot higher despite having comparable resources.
On the other hand, low mining costs make it easier for the Canadian company to be more and more profitable in the future if commodity prices rise and with their good network off-take agreements can be possible.
Check out my latest articles:
Fall In Love With An Investor Friendly Copper Mining Company
The Secret High Potential Mining Company That You Don’t Know
Important
Please note that this is not financial advice in any form and investments should only be done after research was made. Also be aware that I did invest in Tantalex Resources so my opinion might be biased. This article only shows my opinion and should only be viewed as a presentation not an inducement for investing. No liability is assumed for incorrect balance sheet figures leading to an investment! Please double check all information before making an investment. Investing is at your own risk!