The share of the lithium company NORAM LITHIUM shows a classic behavioural pattern: For several weeks, the price has been "bobbing" along in the CAD 0.53 range. Those investors who have enriched their portfolio with NORAM shares - by the way, the management of NORAM is involved with about 16% - are not buying any more and those who have not yet bought are eagerly waiting for the new resource estimate. Unfortunately, NORAM is working a bit long in the tooth in this regard, but "good things come to those who wait". From a reliable source we know that the tension is to be discharged positively in the coming month of September. The delay is due to meticulous reporting (resources and future production), which should ultimately provide a transparent basis. If we make a comparison with other lithium stocks, e.g. with Neo Lithium and its project in Argentina, we find that NORAM's drilling results show a grade per tonne that is almost twice as high. Extraction costs are also likely to be quite a bit lower due to the terrain. But... Neo Lithium's stock has risen tenfold in a year. So can NORAM wake up from its summer slumber and make a splash as well? If all the facts are right, this could very well become a reality. However, we remain humble and are sticking to our price target of CAD 1.20 for the time being!
In any case, lithium still has a profit turbo . On the demand side, all the big-name carmakers are clamouring for the valuable battery raw material. For a long time, the main buyers were able to dictate the price of lithium, but the market weights have long since shifted in favour of the producers. They are producing at the maximum and could currently - and probably also in the future - sell completely different quantities of lithium. The bottleneck remains for the time being; whether new extraction projects will provide relief in view of the electric car boom, we still dare to doubt. If they do, the lithium producers will profit anyway, because in addition to a handsome lithium price - there is no relief in sight - NORAM and Co. would also profit from rising volume sales. And as is well known, politics continues to heat up the market, the carmakers are challenged. VW alone is planning to add around 70 new electric models to its range by 2028. In an extrapolation (without guarantee), this results in a demand of 75,000 tons of lithium carbonate for VW alone for the time being. Goldman Sachs assumes that demand will rise to at least 900,000 tonnes by 2025. Further projections are scary to a certain extent... but a tenfold increase in the price of certain lithium shares is realistic!Berlin, Paris, Delhi, Beijing and Washington, to name but a few, are under pressure to act. The e-car is compulsory, some politicians want to ban the combustion engine for new cars as early as 2030, including Joe Biden in the USA; these intentions are probably very ambitious. Nevertheless, the accelerated trend will not be slowed down, unless... raw materials (e.g. lithium, rare earths) bleed out.
NORAM LITHIUM is listed on the TSX Venture under the symbol NRM, the security number is 112'854'222, last price approx. CAD 0.54.
