10 Reasons for Bradda (from Telegram)26 Mar 2022 12:00
10 Reasons I think BHL is a good long term investment and could see exponential growth
Please do your own research - always
1. Lithium demand is set to grow long term, current and next generation EV batteries are dependent on significant quantities of Lithium, it is also used in many other energy storage applications
2. Supply is tight and much of the current supply is thousands of miles away from the US, for example Tesla have agreements with Australian supply, this simply isn’t good from a ESG perspective
3. The Lithium price is up ~600% in the last year
4. US Gigafactories growing at pace, 13 more to come online between now and 2025
5. The US know they are behind the curve, they need to catch up and can’t depend on other countries for energy any longer. Less than 1% of global lithium is mined & processed in the USA (according to a recent CNBC article “How the U.S. fell behind in lithium, the ‘white gold’ of electric vehicles”)
6. BHL are fully funded for 2022, have a concrete plan and are delivering at pace. They also have smart royalty payments coming in upon specific milestones, these provide cash and reduce the need to raise cash via placing.
7. BHL have at least 9 projects, just one of them (Basin East) has a JORC of 185k/t, this resource is due to be updated in “Q1”, at $75,000 per tonne the maths on just the current 185,000 tonnes is staggering.
Other 2022 catalysts include; Maiden Wikieup resource in Q2, Drilling at San Domingo in Q2, more drilling at Basin East, drilling at Basin North & Drilling at Eureka & Wilson….The year end resource could be very impressive.
8. BHL have projects with all 3 types of Lithium - Brine, Pegmatite & Sedimentary. This is quite unique.
9. BHL market cap is only ~£53m, this is very low vs. industry peers, clearly some are ahead of us however the biggest share price % gains are often in the period before resource grows exponentially and before production. American Lithium ~$652m, LAC $5.74 CAD, Liontown Resources $4.21bn, ALL £293m
10. High quality major shareholders, Jim Mellon owns over 20%, the Wray Family hold a significant %, we’ve also seen TR1 holders adding to their positions at around the 15p level, Raj Chawla added to his position twice in February.
As always any junior miner has risks associated however I believe that the risk vs. reward for BHL is very good, the stock has also held firm with recent macro issues (Omicron & Ukraine conflict).
I think the journey has only just started and it should be interesting to see where we are by year end and well beyond
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